Nagarro releases unaudited Q3 2026 results, posts 2.7% constant currency growth for 9 months ended September 2026

Rhea-AI Summary

Nagarro (NGRRF) reported unaudited third-quarter results, with net profit declining 40.5% year over year to €12.7 million. Quarterly revenue rose 0.2% to €255.0 million but fell 0.2% in constant currency. Adjusted EBITDA, a measure of operating earnings excluding certain costs, fell 13.1% to €38.3 million; its margin narrowed to 15.0% from 17.3%.

For the first nine months of 2026, revenue reached €755.5 million, up 0.3%, or 2.7% in constant currency. Adjusted EBITDA rose 2.4% to €107.3 million, while net profit increased 3.8% to €42.5 million. Operating earnings before interest and taxes fell 11.3% to €73.0 million. Quarterly operating cash flow increased to €48.2 million from €34.7 million. Loans and borrowings declined to €278.0 million at September 30 from €310.1 million at December 31, 2025, mainly through repayment of the syndicated revolving credit facility.

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0 major · 14 points

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Positive

• Moderate pointNine-month revenue rose 0.3% year over year to €755.5 million; constant-currency growth was 2.7%.
• Moderate pointNine-month adjusted EBITDA rose 2.4% to €107.3 million; margin increased to 14.2% from 13.9%.
• Moderate pointNine-month net profit rose 3.8% to €42.5 million, mainly from lower withholding taxes on intra-group dividends.
• Moderate pointQ3 operating cash flow increased to €48.2 million from €34.7 million a year earlier.
• Moderate pointLoans and borrowings fell to €278.0 million at September 30, 2026, from €310.1 million at December 31, 2025.

5 minor points

• Minor pointNine-month operating cash flow increased to €77.7 million from €77.1 million a year earlier.
• Minor pointFactoring-adjusted operating cash flow increased to €85.0 million in nine months from €81.0 million a year earlier.
• Minor pointClients generating over €1 million in trailing-12-month revenue rose to 186 in September from 184 in June 2026.
• Minor pointDays sales outstanding improved to 80 days at September 30, 2026, from 82 at December 31, 2025.
• Minor pointQ3 income tax expense decreased €3.1 million year over year.

Negative

• Moderate pointQ3 net profit fell 40.5% year over year to €12.7 million from €21.4 million.
• Moderate pointQ3 adjusted EBITDA fell 13.1% to €38.3 million; margin narrowed to 15.0% from 17.3%.
• Moderate pointQ3 EBITDA, earnings before interest, taxes, depreciation and amortization, fell 25.2% to €32.5 million.
• Moderate pointQ3 operating earnings before interest and taxes fell 31.6% to €23.8 million.
• Moderate pointNine-month EBITDA fell 8.8% year over year to €99.0 million from €108.5 million.
• Moderate pointNine-month operating earnings before interest and taxes fell 11.3% to €73.0 million.
• Moderate pointQ3 organic revenue declined 1.6% in constant currency and 1.2% in euros year over year.
• Moderate pointNine-month organic revenue declined 1.2% in euros despite 1.2% constant-currency growth year over year.

6 minor points

• Minor pointQ3 revenue fell 0.2% in constant currency despite rising 0.2% in euros to €255.0 million.
• Minor pointQ3 gross profit fell 0.3% to €83.9 million; gross margin narrowed to 32.9% from 33.1%.
• Minor pointNine-month gross profit fell 0.1% to €243.1 million; gross margin narrowed to 32.2% from 32.3%.
• Minor pointShare-based payment expenses were €5.1 million for nine months, including €4.6 million in Q3 2026.
• Minor pointPublic takeover offer expenses were €1.8 million for nine months, including €0.9 million in Q3 2026.
• Minor pointCash and cash equivalents edged down to €124.3 million at September 30, 2026, from €124.6 million at December 31, 2025.

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MUNICH, Nov. 13, 2026 /PRNewswire/ -- Nagarro, a global AI-native engineering and transformation leader, presented its unaudited financial numbers for 9M 2026 and 3M 2026, and released its quarterly statement for Q3 2026.

In 9M 2026, revenue grew to €755.5 million from €753.4 million in 9M 2025. On a constant currency basis, revenue growth was 2.7% YoY, which translated to a growth of 0.3% YoY in Euro terms. Organic YoY revenue growth for 9M 2026 was 1.2% YoY in constant currency, which translated to negative 1.2% YoY in Euro terms. Gross profit was flat at €243.1 million (32.2% of revenue) in 9M 2026 from €243.5 million (32.3% of revenue) in 9M 2025. Adjusted EBITDA grew to €107.3 million (14.2% of revenue) in 9M 2026 from €104.8 million (13.9% of revenue) in 9M 2025.

EBITDA declined to €99.0 million in 9M 2026 from €108.5 million in 9M 2025. EBITDA decreased mainly because of an increase in net expense from special items by €12.1 million (mainly due to increase in expense of share-based payment arrangements of €14.4 million which has been partly offset by decrease in investigation expenses by €1.1 million and absence of additional audit fees of €1.3 million). This has been offset by increase in adjusted EBITDA by €2.5 million. Our most significant adjustments to EBITDA in 9M 2026 are the expense of share-based payment arrangements amounting to €5.1 million and expenses related to the public takeover offer amounting to €1.8 million. Consequently, EBIT also declined to €73.0 million in 9M 2026 from €82.3 million in 9M 2025. Overall, net profit grew to €42.5 million in 9M 2026 from €41.0 million in 9M 2025 mainly due to decrease in YoY withholding taxes on intra-group dividends.

Operating cash flow (OCF) in 9M 2026 increased slightly to €77.7 million from €77.1 million in 9M 2025. OCF adjusted for changes in factoring was €85.0 million in 9M 2026 as compared to €81.0 million in 9M 2025.

The summarized table for the nine-month period ended September 30, 2026, is as follows:

		9M 2026		9M 2025		Growth
		mEUR		mEUR
Revenue		755.5		753.4		0.3% YoY; 2.7% YoY in constant currency
Gross profit		243.1		243.5		Negative 0.1% YoY
Gross margin		32.2 %		32.3 %
Adjusted EBITDA		107.3		104.8		2.4% YoY
Adjusted EBITDA margin		14.2 %		13.9 %
EBITDA		99.0		108.5		Negative 8.8% YoY
EBIT		73.0		82.3		Negative 11.3% YoY
Net profit		42.5		41.0		3.8% YoY

 

3M results

In Q3 2026, revenue grew to €255.0 million, up from €254.6 million in Q3 2025. On a constant currency basis, revenue was flat at negative 0.2% YoY, which translated to a growth of 0.2% YoY in Euro terms. Organic YoY revenue growth for the quarter was negative 1.6% YoY in constant currency, which translated to a growth of negative 1.2% YoY in Euro terms. Gross profit was flat at €83.9 million (32.9% of revenue) in Q3 2026 from €84.2 million (33.1% of revenue) in Q3 2025. Adjusted EBITDA declined to €38.3 million (15.0% of revenue) in Q3 2026 from €44.0 million (17.3% of revenue) in Q3 2025.

EBITDA declined to €32.5 million in Q3 2026 from €43.5 million in Q3 2025. EBITDA decreased mainly because of a decrease in adjusted EBITDA by €5.8 million and increase in net expense from special items by €5.2 million (mainly due to YoY increase in expense of share-based payment arrangements of €6.4 million which has been partly offset by absence of investigation expenses amounting to €1.0 million). Our net adjustment to EBITDA in Q3 2026 is an expense of €5.8 million. The most significant adjustments are the expense of share-based payment arrangements amounting to €4.6 million and expenses related to the public takeover offer amounting to €0.9 million. Consequently, EBIT also declined to €23.8 million in Q3 2026 from €34.9 million in Q3 2025. This decrease in EBIT was partly offset by decrease in income tax expense of €3.1 million, resulting in decrease in net profit to €12.7 million in Q3 2026 from €21.4 million in Q3 2025.

The number of clients generating revenue of more than €1 million in the last 12 months rose from 184 as of June 30, 2026 to 186 on September 30, 2026.

OCF in Q3 2026 increased to €48.2 million from €34.7 million in Q3 2025 primarily due to better collections from customers and lower taxes paid on intra-group dividends.

Days of sales outstanding (DSO), calculated based on the quarterly revenue and including both contract assets and trade receivables, has improved from 82 days on December 31, 2025, to 80 days on September 30, 2026.

Nagarro's cash and cash equivalents remained almost stable at €124.3 million as of September 30, 2026, compared to €124.6 million as of December 31, 2025. Nagarro's loans and borrowings as of September 30, 2026, were €278.0 million, as against €310.1 million as of December 31, 2025, mainly because of repayment of syndicated Revolving Credit Facility. The company reported 18,499 professionals as of September 30, 2026.

The summarized table for the three-month period ended September 30, 2026, is as follows:

		Q3 2026		Q3 2025		Growth
		mEUR		mEUR
Revenue		255.0		254.6		0.2% YoY; Negative 0.2% YoY in constant currency
Gross profit		83.9		84.2		Negative 0.3% YoY
Gross margin		32.9 %		33.1 %
Adjusted EBITDA		38.3		44.0		Negative 13.1% YoY
Adjusted EBITDA margin		15.0 %		17.3 %
EBITDA		32.5		43.5		Negative 25.2% YoY
EBIT		23.8		34.9		Negative 31.6% YoY
Net profit		12.7		21.4		Negative 40.5% YoY

 

About Nagarro

Nagarro is a global AI-native engineering and transformation company that engineers intelligence into enterprises securely, responsibly, and at scale. Distinguished by its entrepreneurial, agile, and global character, Nagarro is guided by its CARING values. Nagarro employs around 18,500 people in 39 countries. For more information, visit www.nagarro.com.

(FRA: NA9) (ISIN: DE000A3H2200) (WKN: A3H220)

For inquiries, please contact press@nagarro.com.

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SOURCE Nagarro

FAQ

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How did Nagarro's Q3 2026 revenue and net profit change?

Nagarro's Q3 2026 revenue rose 0.2% to €255.0 million, while net profit fell 40.5% to €12.7 million year over year. Revenue declined 0.2% in constant currency.

How much did Nagarro's revenue grow in the first nine months of 2026?

Nagarro's nine-month revenue increased 0.3% to €755.5 million, with constant-currency growth of 2.7%. Revenue in the comparable 2025 period was €753.4 million.

Why did Nagarro's operating cash flow increase in Q3 2026?

Nagarro's Q3 operating cash flow increased primarily because of better customer collections and lower taxes paid on intra-group dividends. Operating cash flow reached €48.2 million, compared with €34.7 million in Q3 2025.