The company witnessed 9.4% YoY Revenue Growth in Constant Currency, 27.2% Increase in Adjusted EBITDA; Announces Share Redemption and Buyback Program.
Nagarro has announced its unaudited financial results for the third quarter of 2025 along with its nine-month financial performance. The company reported robust revenue growth driven by strong client demand and strategic execution, reinforcing its leadership in the IT services and digital engineering sector.
In Q3 2025, Nagarro’s revenue increased to €254.6 million, marking a 4.8% year-over-year (YoY) growth from €242.9 million in the same quarter of 2024. On a constant currency basis, the revenue growth was even stronger at 9.4% YoY. The company achieved organic YoY revenue growth of 3.7% in Euro terms and 8.2% in constant currency, reflecting steady business expansion and enhanced market penetration. Gross profit for the quarter rose to €84.2 million from €76.5 million in Q3 2024, with the gross margin improving significantly to 33.1% compared to 31.5% the prior year.
Adjusted EBITDA surged by 27.2% to €44.0 million, representing 17.3% of revenue, up from €34.6 million (14.3% margin) in Q3 2024. EBITDA reached €43.5 million, while EBIT grew 55% YoY to €34.9 million. Net profit also showed notable growth, rising 68% to €21.4 million. Nagarro’s client base generating over €1 million annual revenue remained healthy and expanded slightly from 186 to 187 clients year-over-year. Additionally, the company’s workforce grew by 233 professionals during the quarter, reflecting ongoing hiring to support business growth.
The company maintained its guidance for full-year 2025, signaling confidence in its strategic roadmap amidst a dynamic global technology environment.
Nagarro also announced a decisive move to redeem 853,688 treasury shares, approximately 75% of its current treasury shareholding, along with a share buyback program aimed at acquiring up to 450,000 shares within an overall volume limit of EUR 20 million (excluding ancillary costs). This capital return initiative aims to enhance shareholder value and optimize the company’s capital structure.
For the nine-month period ended September 30, 2025, Nagarro recorded revenue of €753.4 million, growing 3.9% YoY from €725.4 million in 2024. Constant currency revenue growth for this period stood at 6.3%. Organic revenue growth remained positive at 3.0% in Euro terms, translating to 5.4% in constant currency. Gross profit increased to €243.5 million, with gross margins rising to 32.3% from 30.8% in the previous year.
Despite strong operational efficiency, adjusted EBITDA for the nine months declined slightly to €104.8 million (13.9% of revenue) from €109.3 million (15.1% margin), impacted by adverse currency effects including a €19.7 million negative revaluation loss on intra-group loans and foreign exchange forward transactions. EBITDA improved to €108.5 million, while EBIT rose 14% to €82.3 million. Net profit declined marginally to €41.0 million due to currency impact and increased tax expenses related to withholding taxes on dividends between subsidiaries, partially offset by improved gross margins.
Operating cash inflow improved from €64.9 million to €77.1 million over the nine-month period, aided by reduced factoring utilization. Days sales outstanding (DSO) also improved to 85 days from 88 days at the end of 2024, indicating improved receivables management.
As of September 30, 2025, Nagarro held a cash balance of €129.4 million, down from €192.6 million at year-end 2024. Loans and borrowings decreased to €301.2 million from €329.6 million. The company employed 17,680 professionals globally, underscoring its status as a major digital transformation and IT consulting player.
Nagarro’s strong Q3 performance and strategic capital management initiatives highlight its commitment to sustainable growth, operational excellence, and delivering shareholder value in the competitive global digital engineering and IT services market.
