Nagarro releases Q3 2025 results with 9.4% YoY revenue growth in constant currency and 27.2% YoY increase in Adjusted EBITDA; announces share redemption and buyback

Rhea-AI Summary

Nagarro (OTC:NGRRF) reported Q3 2025 results: revenue €254.6m (+4.8% YoY; +9.4% in constant currency) and adjusted EBITDA €44.0m (+27.2% YoY; 17.3% margin). Gross margin rose to 33.1% and net profit was €21.4m (+68% YoY). Nine‑month revenue reached €753.4m (+3.9% YoY; +6.3% cc); 9M adjusted EBITDA declined to €104.8m due to a €19.7m negative currency revaluation and FX forward impact. Cash was €129.4m at Sept 30, 2025; headcount 17,680. The company maintained 2025 guidance and announced redemption of 853,688 treasury shares and a buyback program of up to 450,000 shares (€20m limit).

Positive

• Q3 revenue €254.6m (+4.8% YoY; +9.4% cc)
• Q3 adjusted EBITDA €44.0m (+27.2% YoY; 17.3% margin)
• Gross margin improved to 33.1% from 31.5%
• 9M operating cash inflow €77.1m (up from €64.9m)
• Company maintained full‑year 2025 guidance

Negative

• 9M adjusted EBITDA down to €104.8m (−4.1% YoY) due to FX
• Currency revaluation and FX forwards hit EBITDA by €19.7m
• Cash balance declined to €129.4m from €192.6m at year‑end
• 9M net profit marginally down to €41.0m (−0.8% YoY)

News Market Reaction

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+29.63% News Effect

On the day this news was published, NGRRF gained 29.63%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

MUNICH, Nov. 14, 2025 /PRNewswire/ -- Nagarro, a global digital engineering leader, today presented its unaudited financial numbers for Q3 2025 and released its nine-month financial statement.

In Q3 2025, revenue grew to €254.6 million, up 4.8% YoY from €242.9 million in Q3 2024, and up 9.4% YoY in constant currency. Organic YoY revenue growth for the quarter was 3.7% in Euro terms, and 8.2% in constant currency. Gross profit grew to €84.2 million in Q3 2025 from €76.5 million in Q3 2024. Gross margin was 33.1% in Q3 2025, against 31.5% in Q3 2024.

Adjusted EBITDA for Q3 2025 grew to €44.0 million (17.3% of revenue) from €34.6 million (14.3% of revenue) in Q3 2024. EBITDA grew to €43.5 million in Q3 2025 from €31.9 million in Q3 2024. EBIT grew to €34.9 million in Q3 2025 from €22.5 million in Q3 2024. Net profit grew to €21.4 million in Q3 2025 from €12.7 million in Q3 2024. The number of clients generating more than €1 million in annual revenue in the last 12 months with Nagarro increased marginally from 186 as of September 30, 2024, to 187 as of September 30, 2025.

The company's headcount increased by 233 professionals during Q3 2025.

Guidance 2025 maintained

The company maintains its previous guidance regarding full year 2025.

Redemption of treasury shares and share buyback

The company today resolved to redeem 853,688 treasury shares (75% of the 1,138,251 treasury shares currently held by the company) and buy back up to 450,000 shares with an overall purchase volume limit of EUR 20 million (excluding ancillary costs of purchase).

9M results

Revenue grew to €753.4 million in 9M 2025, up 3.9% YoY from €725.4 million in 9M 2024. Constant currency revenue growth for 9M 2025 was 6.3%. Organic YoY revenue growth for 9M 2025 was 3.0% in Euro terms, which translated to 5.4% organic YoY revenue growth in constant currency. Gross profit grew to €243.5 million in 9M 2025 from €223.5 million in 9M 2024. Gross margin was 32.3% in 9M 2025, against 30.8% in 9M 2024.

Despite excellent operational efficiency in 9M 2025, Adjusted EBITDA was significantly impacted by the revaluation loss on intra-group loans within the Nagarro group due to the weakening of the US dollar against the Euro. Across 9M 2025, the total impact on Adjusted EBITDA of currency revaluation plus foreign exchange forward transactions was a negative €19.7 million.

Consequently, Adjusted EBITDA for 9M 2025 declined to €104.8 million (13.9% of revenue) from €109.3 million (15.1% of revenue) in 9M 2024. EBITDA grew to €108.5 million in 9M 2025 from €100.7 million in 9M 2024. EBIT grew to €82.3 million in 9M 2025 from €72.2 million in 9M 2024. Net profit declined marginally to €41.0 million in 9M 2025 from €41.3 million in 9M 2024, mainly due to negative foreign currency impact and an increase in income tax expense on account of withholding taxes on intra-group dividend remitted by subsidiaries to their immediate holding companies. This has been offset by an increase in gross margin during the period.

Operating cash inflow in 9M 2025 increased to €77.1 million from €64.9 million in 9M 2024, even while factoring utilization under the non-recourse factoring program reduced by €7.9 million in 9M 2025 from December 31, 2024. Days of sales outstanding, calculated based on the quarterly revenue and including both contract assets and trade receivables, has improved from 88 days on December 31, 2024, to 85 days on September 30, 2025.

Nagarro's cash balance at the end of September 30, 2025, was €129.4 million as against €192.6 million at the end of December 31, 2024. Nagarro's loans and borrowings at the end of September 30, 2025, were €301.2 million as against €329.6 million at the end of December 31, 2024. The company reported 17,680 professionals as of September 30, 2025.

The summarized table for the three-month period ended September 30, 2025, is as follows:

		Q3 2025		Q3 2024		Growth
		mEUR		mEUR
Revenue		254.6		242.9		4.8% YoY 9.4% YoY in constant currency
Gross profit		84.2		76.5		10.0% YoY
Gross margin		33.1 %		31.5 %
Adjusted EBITDA		44.0		34.6		27.2% YoY
Adjusted EBITDA margin		17.3 %		14.3 %
EBITDA		43.5		31.9		36.4% YoY
EBIT		34.9		22.5		55.0% YoY
Net profit		21.4		12.7		68.0% YoY

The summarized table for the nine-month period ended September 30, 2025, is as follows:

		9M 2025		9M 2024		Growth
		mEUR		mEUR
Revenue		753.4		725.4		3.9% YoY 6.3% YoY in constant currency
Gross profit		243.5		223.5		9.0% YoY
Gross margin		32.3 %		30.8 %
Adjusted EBITDA		104.8		109.3		Negative 4.1% YoY
Adjusted EBITDA margin		13.9 %		15.1 %
EBITDA		108.5		100.7		7.8% YoY
EBIT		82.3		72.2		14.0% YoY
Net profit		41.0		41.3		Negative 0.8% YoY

Nagarro SE will hold its analyst and investor earnings call to discuss the Q3 2025 financial statement on November 14, 2025, at 01:00 pm CET (04:00 am PT / 06:00 am CT / 07:00 am ET / 12:00 pm GMT / 04:00 pm GST / 05:30 pm IST / 08:00 pm SGT / 09:00 pm JST).

To attend, please register in advance at https://www.nagarro.com/en/investor-relations/quarterly-statement-call-q3-2025.

About Nagarro

Nagarro, a global digital engineering leader, helps clients become fluidic, innovative, digital-first companies and thus win in their markets. The company is distinguished by its entrepreneurial, agile, and global character, its CARING mindset, and its Fluidic Intelligence vision. Nagarro employs around 17,700 people in 39 countries.

For more information, visit www.nagarro.com.

(FRA: NA9) (SDAX/TecDAX: DE000A3H2200) (ISIN: DE000A3H2200) (WKN A3H220)

For inquiries, please contact press@nagarro.com.

 

Logo: https://mma.prnewswire.com/media/844192/3850575/Nagarro_Logo.jpg

 

FAQ

What were Nagarro's Q3 2025 revenue and adjusted EBITDA (NGRRF)?

Q3 2025 revenue was €254.6m and adjusted EBITDA was €44.0m (17.3% margin).

Why did Nagarro's 9M 2025 adjusted EBITDA (NGRRF) decline despite operational efficiency?

A €19.7m negative impact from currency revaluation and FX forward transactions reduced 9M adjusted EBITDA.

What share‑repurchase actions did Nagarro announce on Nov 14, 2025 (NGRRF)?

Nagarro resolved to redeem 853,688 treasury shares and to buy back up to 450,000 shares with a €20m purchase limit.

Did Nagarro change its 2025 guidance after Q3 results (NGRRF)?

No, the company maintained its previously issued full‑year 2025 guidance.

How did Nagarro's gross margin and net profit move in Q3 2025 (NGRRF)?

Gross margin rose to 33.1% and Q3 net profit increased to €21.4m (+68% YoY).

What was Nagarro's cash position and headcount at Sept 30, 2025 (NGRRF)?

Cash was €129.4m and total professionals numbered 17,680 as of Sept 30, 2025.