Nagarro (NA9) Q4 2025 earnings summary

Executive summary

• Revenue reached €999.3 million in 2025, up 2.8% year-over-year, but below initial guidance due to currency headwinds and lower-than-expected demand.

• Gross margin improved to 32.2% from 30.4% in 2024, driven by operational efficiencies and project utilization.

• Adjusted EBITDA was €138.2 million (13.8% margin), down from €147.5 million (15.2%) in 2024, impacted by FX losses and statutory labor costs in India.

• Net profit declined to €39.5 million from €49.2 million in 2024; EPS fell to €3.08 from €3.69.

• The company maintained strong client satisfaction (CSAT 93.4%) and NPS (68), meeting targets.

Financial highlights

• Revenue up 2.8% year-over-year; constant currency growth was 6.1%.

• Gross profit rose to €321.3 million; gross margin at 32.2%.

• Adjusted EBITDA margin at 13.8%, in line with revised guidance.

• Net profit €39.5 million; basic EPS €3.08.

• Operating cash flow increased to €102.8 million; total cash outflow for the year was €55.4 million.

• Dividend of €1.00 per share proposed; €67.8 million spent on share buybacks.

Outlook and guidance

• 2026 revenue expected between €1,000 million and €1,060 million, ~5% growth at current FX rates.

• Gross margin targeted at ~32%; adjusted EBITDA margin expected between 14.5% and 15.5%.

• CSAT and NPS expected to remain stable; continued focus on sustainable dividend policy (10–20% of IFRS EBIT).