Nagarro Reports Impressive Q3 2025 Financial Results
Nagarro, a prominent player in digital engineering, recently shared its financial results for Q3 2025, showcasing a remarkable revenue increase of 4.8% year-over-year, elevating total revenue to €254.6 million. When viewed in constant currency, this growth accelerates to an impressive 9.4% year-over-year. In addition, organic revenue growth was reported at 3.7% in Euro terms and 8.2% in constant currency for the quarter.
The company's gross profit during this period also saw significant improvement, rising to €84.2 million from €76.5 million in Q3 2024. This translates to a gross margin increase from 31.5% to 33.1%. Adjusted EBITDA for Q3 2025 reached €44.0 million, a notable increase of 27.2% year-over-year, reflecting 17.3% of revenue compared to 14.3% in the same quarter of the previous year. EBITDA increased to €43.5 million, illustrating a substantial rise from €31.9 million year-over-year.
Strong Net Profit and Client Growth
Net profit for Q3 2025 surged to €21.4 million, significantly up from €12.7 million in Q3 2024, demonstrating the company’s successful operational strategies. Furthermore, Nagarro's client base grew slightly, with the number of clients generating over €1 million in annual revenue increasing from 186 to 187.
In terms of staffing, Nagarro expanded its workforce by adding 233 professionals during the quarter, underlining the company’s commitment to scaling operations and enhancing service delivery to its clients.
Future Outlook and Guidance
Nagarro has reiterated its previous guidance for the full year of 2025, showcasing confidence in its ongoing strategies and market position. This forward-looking perspective highlights the company’s steady navigation through a dynamic market environment.
Share Redemption and Buyback Announced
A significant strategic move announced alongside the financial results was the redemption and buyback of shares. The company approved the redemption of 853,688 treasury shares, which is 75% of the treasury shares it currently holds, alongside a plan to buy back up to 450,000 shares, with an overall purchase volume capped at €20 million, excluding any related transaction costs.
Nine-Month Financial Performance
Looking at the nine-month performance for 2025, revenue reached €753.4 million, reflecting a year-over-year increase of 3.9% from €725.4 million in 2024. In constant currency, revenue growth stood at 6.3%. The gross profit for the nine-month period was recorded at €243.5 million, compared to €223.5 million, equating to a 9.0% year-over-year growth. The gross margin also improved from 30.8% to 32.3%.
However, it is worth noting that despite operational efficiency during this period, the Adjusted EBITDA experienced a decline to €104.8 million from €109.3 million due to currency revaluation losses from intra-group loans amidst the dollar’s weakening against the Euro. Notably, this adverse effect totaled €19.7 million across the nine months, affecting profitability metrics.
Financial Highlights Summary
EBITDA rose to €108.5 million, signifying growth from €100.7 million, while EBIT increased to €82.3 million from €72.2 million. Marginally, net profit decreased to €41.0 million from €41.3 million due to higher income tax expenses coupled with an unfavorable foreign currency impact.
Operating cash inflow rose to €77.1 million from €64.9 million, showcasing positive cash management practices despite certain challenges. As of September 30, 2025, Nagarro managed to maintain a robust cash balance of €129.4 million, down from €192.6 million at the end of the previous year.
About Nagarro
Nagarro distinguishes itself with its entrepreneurial spirit and agile approach in helping clients navigate their digital transformation journeys. With around 17,700 employees operating across 39 countries, the company continues its commitment to delivering innovative solutions that empower businesses to lead in their respective markets.
Frequently Asked Questions
What were Nagarro's revenue figures for Q3 2025?
Nagarro reported revenue of €254.6 million for Q3 2025, reflecting a 4.8% increase year-over-year.
How has Nagarro's net profit changed compared to last year?
The net profit for Q3 2025 grew to €21.4 million, up significantly from €12.7 million in Q3 2024.
What was the company’s gross profit margin for Q3 2025?
Nagarro’s gross profit margin expanded to 33.1% in Q3 2025, compared to 31.5% in Q3 2024.
What plans has Nagarro announced regarding share buyback?
The company announced the redemption of 853,688 treasury shares and plans to buy back up to 450,000 shares with a purchase limit of €20 million.
How many employees does Nagarro currently have?
As of September 30, 2025, Nagarro has approximately 17,680 employees worldwide, reflecting its growth strategy.
