Nagarro releases unaudited Q2 2025 results, posts 4.7% YoY revenue growth in constant currency and 14.2% increase in gross profit despite global macroeconomic challenges
Nagarro (OTC:NGRRF) released its Q2 2025 financial results, reporting revenue growth of 3.2% YoY to €252.0 million, with constant currency growth of 4.7%.
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Rhea-AI Summary
Nagarro (OTC:NGRRF) released its Q2 2025 financial results, reporting revenue growth of 3.2% YoY to €252.0 million, with constant currency growth of 4.7%. The company achieved notable improvements in gross profit, which increased 14.2% YoY to €83.7 million, with gross margin expanding to 33.2% from 30.0% in Q2 2024.
However, Adjusted EBITDA was significantly impacted by currency effects, declining to €30.5 million (12.1% margin) from €35.5 million (14.5% margin) in Q2 2024. Net profit decreased to €8.3 million from €12.0 million YoY. The company declared a dividend of €1.00 per share and updated its 2025 guidance, expecting revenue near the lower end of €1,020-€1,080 million range and Adjusted EBITDA margin between 13.5-14.5%.
Positive
- Gross profit increased 14.2% YoY to €83.7 million with improved margin of 33.2%
- Revenue grew 4.7% YoY in constant currency to €252.0 million
- Number of €1M+ clients increased from 184 to 188
- Days of sales outstanding improved from 88 to 85 days
- Declared dividend of €1.00 per share
Negative
- Adjusted EBITDA margin declined to 12.1% from 14.5% YoY due to currency impacts
- Net profit decreased 30.8% YoY to €8.3 million
- Currency revaluation and forex transactions had €18.0 million negative impact on Adjusted EBITDA
- Lowered revenue guidance to lower end of €1,020-€1,080 million range
- Reduced Adjusted EBITDA margin guidance to 13.5-14.5% from previous 14.5-15.5%
Details
News Market Reaction – NGRRF
On Aug 14, the day this news came out, NGRRF closed 5.81% below the previous close.
Data tracked by StockTitan Argus for the Aug 14 session.
AI-generated analysis. How Rhea-AI works. Not financial advice.
In Q2 2025, revenue grew to
Despite excellent operational efficiency in Q1 and Q2 2025, Adjusted EBITDA was significantly impacted by the revaluation loss on inter-company loans from Nagarro SE and its cash holdings due to the weakening of the US dollar against the Euro. Across Q1 and Q2 2025, the total impact on Adjusted EBITDA of currency revaluation plus foreign exchange forward transactions was a negative
Consequently, Adjusted EBITDA for Q2 2025 was
A dividend of
H1 results
Revenue grew to
Adjusted EBITDA was
Operating cash inflow in H1 2025 declined to
Nagarro's cash balance at the end of June 30, 2025 was
The summarized table for the three-months period ended June 30, 2025 is as follows:
Q2 2025 | Q2 2024 | Growth | ||||
mEUR | mEUR | |||||
Revenue | 252.0 | 244.1 | ||||
Gross profit | 83.7 | 73.3 | ||||
Gross margin | 33.2 % | 30.0 % | ||||
Adjusted EBITDA | 30.5 | 35.5 | Negative | |||
Adjusted EBITDA margin | 12.1 % | 14.5 % | ||||
EBITDA | 32.0 | 32.8 | Negative | |||
EBIT | 23.4 | 23.1 | ||||
Net profit | 8.3 | 12.0 | Negative | |||
The summarized table for the six-months period ended June 30, 2025 is as follows:
H1 2025 | H1 2024 | Growth | ||||
mEUR | mEUR | |||||
Revenue | 498.9 | 482.4 | ||||
Gross profit | 159.3 | 146.9 | ||||
Gross margin | 31.9 % | 30.5 % | ||||
Adjusted EBITDA | 60.8 | 74.7 | Negative | |||
Adjusted EBITDA margin | 12.2 % | 15.5 % | ||||
EBITDA | 65.0 | 68.8 | Negative | |||
EBIT | 47.5 | 49.7 | Negative | |||
Net profit | 19.6 | 28.6 | Negative | |||
Supervisory Board committees
The committees of Nagarro's Supervisory Board have been freshly reconstituted. Martin Enderle, Chair of the Supervisory Board, is also the Chair of the Nomination & Remuneration Committee. Until recently he was Chair of the Supervisory Board of Delivery Hero. Hans-Paul Buerkner, who was previously global CEO and Chairman of BCG, is the Chair of the Strategy Committee. Jack Clemons, who was global CEO of Bata and has been on various other boards, including being Chair of the Audit and Risk Committee of the Worldwide Fund for Nature (WWF), is Chair of the Audit Committee.
Update on guidance
On January 23, 2025, we had projected Nagarro's revenue for 2025 to be between
Nagarro SE will hold its analyst and investors meeting as a video call to discuss the half-yearly financial report 2025 on August 14, 2025, 1:00 pm CEST (4:00 am PT / 6:00 am CT / 7:00 am ET / 12:00 pm BST / 3:00 pm GST / 4:30 pm IST / 7:00 pm SGT / 8:00 pm JST).
Nagarro SE will hold its retail investors call to discuss the half-yearly financial report 2025 on August 14, 2025, at 2:30 pm CEST (5:30 am PT / 7:30 am CT / 8:30 am ET / 1:30 pm BST / 4:30 pm GST / 6:00 pm IST / 8:30 pm SGT / 9:30 pm JST).
To attend, please register in advance at https://www.nagarro.com/en/investor-relations/half-yearly-q2-statements-call-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 Enterprise vision. Nagarro employs around 17,400 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.
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