Nagarro Reports Strong Q3 2025 Financials with Share Buyback Announced

Nagarro's Q3 2025 Financial Results: A Leap Forward

Nagarro, a prominent player in digital engineering, recently released its impressive financial results for the third quarter of 2025. The company is making waves in the industry with substantial growth in its revenue and profitability, adding to a positive outlook for the fiscal year.

In Q3 2025, Nagarro reported revenues of €254.6 million. This figure marks a 4.8% increase from €242.9 million recorded in Q3 2024. When considering currency adjustments, the revenue growth stands at an impressive 9.4%. This successful performance can be attributed to an organic growth in sales of 3.7% on an Euro-basis, or 8.2% when adjusted for currency fluctuations. Moreover, the gross profit for the company surged from €76.5 million in the previous year to €84.2 million in Q3 2025, reflecting a gross margin improvement from 31.5% to 33.1%.

Another highlight from the financial report is the substantial increase in adjusted EBITDA, which rose to €44.0 million, a remarkable 27.2% increase from €34.6 million in the same quarter last year. The adjusted EBITDA margin also improved to 17.3% in Q3 2025, up from 14.3% in Q3 2024. This signals not just top-line growth, but also improved operational efficiency.

When examining the broader nine-month results for 2025, total revenues increased to €753.4 million, reflecting a 3.9% rise from €725.4 million in the first nine months of 2024. The company maintained a solid organic growth rate of 3.0%, demonstrating resilience even in challenging economic conditions. However, it’s worth noting that Nagarro faced some hurdles; the adjusted EBITDA for the first nine months decreased slightly to €104.8 million, primarily due to unfavorable currency effects that significantly depreciated the US dollar against the Euro.

Despite these challenges, Nagarro’s EBITDA witnessed a rise to €108.5 million from €100.7 million year on year, and EBIT climbed to €82.3 million, a gain of 14.0% from the previous year. The net profit for the nine-month period showed a slight decline to €41.0 million, compared to €41.3 million last year, largely due to increased tax expenses and the aforementioned currency losses.

Nagarro's operational metrics indicate an increase in its workforce with 233 new hires in Q3 2025, bringing the total employee count to approximately 17,680, which aligns with their strategy to bolster talent in line with expanding business needs.

In addition to robust financial performance, Nagarro announced today its decision to undertake a share buyback program. The company plans to redeem 853,688 of its own shares, representing 75% of its current holdings. Furthermore, they aim to buy back up to 450,000 shares with a maximum total expenditure of €20 million (excluding transaction costs). This strategic move underscores Nagarro's commitment to enhancing shareholder value while reinforcing its growth trajectory.

Looking ahead, Nagarro maintains its earlier forecast for the fiscal year 2025. The company appears optimistic about sustaining its growth patterns and continues to capitalize on its unique position in the digital engineering market.

In conclusion, Nagarro's Q3 2025 results not only affirm its strong growth amidst a competitive landscape but also showcase its operational efficiency via significant margins and the decision to undertake strategic financial actions such as share buybacks. Corporate analysts and investors will be closely watching how Nagarro continues to navigate challenges in currency fluctuation while leveraging its innovative digital solutions.