Nagarro Reports Audited Financial Results for Fiscal Year 2025

Nagarro Financial Overview for Fiscal Year 2025

Nagarro, a global leader in digital engineering, has published its audited financial statements for the fiscal year ending in 2025. The announcement, made on April 30, 2026, highlighted a promising increase in revenue, reaching €999.3 million. This marks a growth from €972.0 million in the previous fiscal year, translating to a 2.8% increase year-over-year. Notably, when adjusted for currency fluctuations, the growth rate stands at an impressive 6.1%.

The gross profit for 2025 climbed to €321.3 million, representing an 8.6% rise compared to the previous year’s €295.8 million. This uptick reflects an increase in the gross margin from 30.4% to 32.2%, underscoring the company's capability to manage costs more effectively while driving up sales.

However, despite these positive revenue trends, the adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) fell to €138.2 million from €147.5 million in 2024, indicating a decrease of 6.3%. The corresponding adjusted EBITDA margin also decreased, finishing at 13.8%, down from 15.2% in 2024. Nagarro attributed this decline in EBITDA to various factors, including a realized currency loss of €15.5 million due to inter-company loans, which negatively impacted their overall profitability.

Furthermore, one-time expenses totaling €12.4 million related to the implementation of new labor codes in India have imposed additional obligations regarding defined benefits, further straining financial performance. As a result, the total EBITDA for 2025 stood at €118.7 million, down from €134.0 million in 2024.

Despite the challenges faced in 2025, Nagarro reported EBIT (Earnings Before Interest and Taxes) of €83 million, a decrease from €96.7 million the prior year. The bottom-line net profit also took a hit, reporting €39.5 million compared to €49.2 million in 2024.

The company retained its diverse client base, with 180 clients contributing over €1 million each in annual revenues. However, this figure marked a slight reduction from 186 clients in the previous year. Successful project implementations have shifted into stable managed services contracts, aiding in revenue stability.

Operational cash flows witnessed a significant improvement, increasing to €102.8 million from €86.5 million in 2024. Nagarro also ramped up its use of factoring as part of its non-recourse factoring program, adding €8.8 million to its operational efficiencies. The days sales outstanding metric improved as well, decreasing from 88 to 82 days from December 2024 to December 2025, a positive sign for cash flow management.

By the end of 2025, Nagarro maintained a cash balance of €124.6 million, down from €192.6 million in 2024, while its outstanding loans reduced to €310.1 million from €329.6 million. During the fiscal year, the company executed a share buyback program, repurchasing approximately 919,421 shares for a total of €67.8 million.

In a move to reward shareholders, Nagarro's Board of Directors and Supervisory Board have recommended a dividend of €1.00 per share during the Annual General Meeting. This is reflective of the company’s commitment to long-term value creation.

As it strives to uphold its vision of creating agile, fluid, and innovative businesses, Nagarro, which employs around 18,000 professionals across 38 countries, continues to deliver on its promises to clients, positioning itself as a leader in the dynamic technological landscape. For further details, visit their official website at www.nagarro.com.