Nagarro Reports Strong Q3 2025 Growth and Strategic Share Buyback Announcement

On November 14, 2025, Nagarro, the prominent player in digital engineering, unveiled its preliminary financial results for Q3 2025, showcasing a remarkable performance that included a 9.4% year-over-year growth in revenue when adjusted for currency fluctuations. The reported earnings revealed a solid increase in Adjusted EBITDA by 27.2% from the previous year, highlighting the company's robust operational efficiency and financial health.

Financial Highlights

In the third quarter of 2025, Nagarro's revenue reached an impressive €254.6 million, marking a 4.8% increase compared to €242.9 million in Q3 2024. The growth in constant currency terms stands at 9.4%, indicating strong operational performance across international markets. The organic revenue growth for this quarter was recorded at 3.7% in Euro terms, which is equivalent to 8.2% in constant currency.

The gross profit for Q3 2025 increased to €84.2 million, compared to €76.5 million during the same quarter the previous year, resulting in a gross margin improvement to 33.1%, up from 31.5%. Nagarro's Adjusted EBITDA for this period escalated to €44.0 million, constituting 17.3% of the revenue, a substantial rise from €34.6 million (14.3% of revenue) in Q3 2024. Furthermore, the EBITDA for the quarter was €43.5 million, a jump from €31.9 million, while EBIT also saw a significant increase to €34.9 million from €22.5 million. The net profit demonstrated a remarkable increase by 68.0%, reaching €21.4 million from €12.7 million in the previous year.

Interestingly, the company also noted an incremental growth in the number of clients, with those generating more than €1 million in annual revenue increasing slightly to 187 from 186.

Workforce Growth and Strategic Moves

Nagarro's diligent approach to workforce expansion is evident with an increase in professionals by 233 in Q3 2025, further solidifying its market presence. Notably, the company has maintained its guidance for the full year 2025, expressing confidence in achieving fiscal goals despite global economic uncertainties.

In a strategic move to optimize its capital structure, Nagarro announced its decision to redeem 853,688 treasury shares—approximately 75% of its existing stock—and plans to buy back an additional 450,000 shares, with a total budget of EUR 20 million set aside for these transactions. These measures reflect a commitment to enhancing shareholder value.

Nine-Month Performance

Looking at the broader timeline, Nagarro reported a revenue of €753.4 million over nine months, equating to a YoY increase of 3.9% from €725.4 million in 2024. When adjusted for constant currency, the growth stood at 6.3%. However, the Adjusted EBITDA for the nine-month period saw a decline to €104.8 million compared to €109.3 million in the previous year, influenced significantly by adverse foreign currency impacts that totaled €19.7 million against the Euro.

Despite these challenges, the operating cash inflow improved to €77.1 million, marking an increase from €64.9 million year-over-year, reflecting strong operational cash generation.

The company’s cash reserves at the close of Q3 2025 stood at €129.4 million, down from €192.6 million at the end of 2024, while the loans and borrowings also reduced to €301.2 million from €329.6 million.

Analysis and Future Outlook

As Nagarro prepares for its earnings call, the impressive trajectory in revenue and earnings highlights the company's effective operational strategies that navigate through market challenges. Nagarro's commitment to retaining its guidance and robust growth strategies, including the share buyback program, resonates well with investor confidence.

In conclusion, Nagarro has successfully demonstrated resilience and adaptability in a shifting market landscape, further consolidating its reputation as a digital engineering leader. The company not only grows its revenue but focuses on strategic financial moves to bolster its standing and deliver value to its stakeholders.

For further details on Nagarro's financial performance and insights into future prospects, stakeholders are encouraged to attend the upcoming analyst and investor earnings call.