GDYN · Grid Dynamics Holdings, Inc.

Grid Dynamics delivered Q1 2026 revenues of $104.1 million, achieving the upper end of its March guidance range and marking 3.7% year-over-year growth despite softer gross margins. GAAP gross profit fell to $36.2 million (34.8% margin) from $37.0 million (36.8%) YoY, with Non-GAAP gross profit at $36.7 million (35.3%), reflecting pricing pressures or cost dynamics in a competitive AI transformation market. The standout was record AI revenues comprising 29.3% of total, validating CEO Leonard Livschitz's emphasis on 2026 as a pivotal year for AI adoption. New GAIN platforms for Agentic Commerce, SDLC, Risk and Compliance, and Physical AI are now in production across verticals, driving measurable client impact. TMT vertical led with 29.5% revenue share, surging 30.3% YoY from top two technology customers, while Retail (28.4%), Finance (23.5%), CPG/Manufacturing (9.4%), Healthcare/Pharma (2.1%), and Other (7.1%) showed diversification. Partnership-influenced revenues hit 19.1%, mainly from top hyperscalers and AI deals. GAAP profitability flipped to a $1.5 million net loss ($0.02/share) from $2.9 million income, with Non-GAAP net income at $7.5 million ($0.09/share) and EBITDA $12.5 million. Operating cash flow was $8.4 million, with cash at $327.5 million. Guidance signals momentum: Q2 revenues $106-108 million and Non-GAAP EBITDA $14-15 million; full-year $435-465 million (5.6-12.9% growth). Top five accounts now outside retail underscore diversification into high-AI sectors like technology and finance, positioning Grid Dynamics for accelerated adoption amid robust pipeline entering Q2.