Revenue Growth in Q2 2026
Nagarro's latest numbers are out, and there’s a mix of positive strides and some raises of the eyebrow. For Q2 2026, they rolled in with revenues hitting €252.4 million. Now, that’s up just a tick from €252.0 million a year ago, and they’re touting a 2.0% year-over-year growth if you hold currency steady—though, only 0.2% growth in Euro terms. Interesting, organic revenue growth in constant currency barely nudged up by 0.6% but turned into a 1.1% decline when Euro does the talking. Fascinating how numbers twist under a currency lens.
EBITDA Dynamics and Profit Bumps
Flipping through more pages of this financial playbook: Adjusted EBITDA has quite the glow-up, skyrocketing from €30.5 million last year to €37.8 million in Q2 2026, marking a hefty 23.9% boost. But don't pop the cork just yet—stroll down to EBITDA, and you're skirting a 13.4% slip. Why? Share-based payment costs ballooned by a cool €12 million, yanking EBIT down as well. Investors gotta wonder how this expense will swirl their future dance cards.
“Net profit still trots up by some 27.7%, standing proudly at €10.6 million against last year's €8.3 million, sans any withholding tax hiccups. Breathing room, at last.”
Half-Year Results: A Broader View
Jumping into H1 2026, the revenue clocked in at €500.5 million, edging up from €498.9 million the previous year. In constant currency, you’re seeing a 4.2% climb, but again, barely a whiff in Euro terms at 0.3%. More of that currency prism magic, if we dare call it that.
- Gross profit holds stubbornly steady at €159.2 million compared to €159.3 million last year.
- EBITDA for the half rings in at €66.5 million, not much room on the climb from €65 million in H1 2025—a cool 2.3% lift if you're counting.
- Net profit goes cartwheeling skyward, up to €29.8 million from €19.6 million a year ago.
Cash Flow: Inflows and DSO Dynamics
Operating cash inflow is an odd bird this time; it’s up at €29.8 million in Q2, yet looks timid when you glance at H1's €29.5 million, down from €42.4 million last year. They say it’s due to some collections dragging their heels into Q3. And if you're keeping tabs on their Days of Sales Outstanding, it's unmoved at 86 days. Nothing too jazzed about, but no slippage either—carry on.
Gazing Ahead: A Stable Foundation
Catching the investor winds, Nagarro boasts a stable clientele set growing—184 of them coughing up more than €1 million over the past year, an upward crawl from 179 not a month back. Cash stowed away smartly as well, bumping their stash up to €131.3 million by June end.
“A €1.00 per share dividend was also declared for 2025 profits—faith of continuity in an industry peppered with unpredictables.”
Nagarro’s performance in the first half of 2026 solidifies a foundation of steady, if not headline-grabbing, growth. Watching the effects of share-cost pressures and how they manage cash flows will be key chinks to explore. A mixed bag but with hues of optimism, indeed!
