Nagarro Reports Growth in Financial Year 2025 and Initiates Future Guidance for 2026
Nagarro, a prominent player in digital engineering, has recently released its preliminary financial numbers for the fiscal year 2025, showcasing substantial growth in its revenue and outlining its strategic expectations for 2026. The company reported a revenue of €999.3 million for 2025, marking a modest increase of 2.8% from the previous year’s €972 million. This growth translates into an impressive constant currency growth of 6.1%. Additionally, Nagarro's gross profit rose to €321.3 million in 2025, reflecting an 8.6% increase from €295.8 million in 2024, resulting in a gross margin of 32.2%.
The company’s adjusted EBITDA showed some decline, dropping to €138.2 million from €147.5 million the previous year, leading to an adjusted EBITDA margin of 13.8%. This margin is slightly below the expected range but highlights the company’s stable performance amidst a fluctuating economic landscape. Nagarro's EBITDA was reported at €118.7 million, down from €134 million in 2024. This decline was impacted by an unrealized foreign exchange loss of €15.5 million from intra-group loans, which was not adjusted in the reporting figures. Furthermore, a one-time expense associated with new Labour Codes in India contributed to the financial results.
Manas Human, Nagarro’s co-founder and CEO, offered insights into the financial performance, emphasizing that despite the challenges posed by foreign exchange rates, Nagarro's underlying performance remains consistent. He noted that if revenue were evaluated under the initial guidance exchange rates, it would align with the midpoint of the €1.020 to €1.080 million range. The company ended the year with a cash balance of €124.6 million, a decrease from €192.6 million in 2024, and repurchased approximately 919,421 shares, amounting to €67.8 million.
Looking ahead, Nagarro has set its revenue guidance for FY 2026 between €1,000 million and €1,060 million at current foreign exchange rates, anticipating a gross margin close to 32% and an adjusted EBITDA margin in the range of 14.5% to 15.5%. This forecast reflects a cautious optimism amidst ongoing geopolitical dynamics that could influence customer decisions moving forward.
An important aspect of the recent announcements is the conclusion of an independent investigation that was conducted following allegations of misconduct. This thorough review was carried out by White & Case, with Alvarez & Marsal providing additional support. The findings corroborated Nagarro's transparency and cooperation throughout the investigative process, concluding that none of the earlier allegations were substantiated and highlighting no evidence of fraud or misconduct. The observations from the investigation have prompted Nagarro to reevaluate its governance and documentation practices, spearheading an initiative to align more closely with the expectations of global capital markets. Christian Bacherl, Chairperson of the Supervisory Board, touted the conclusions of the investigation as a significant milestone for the organization, emphasizing the positive collaborative spirit displayed throughout the inquiry.
As the company advances, it seeks to redefine its operations through a new paradigm called Fluidic Intelligence, aiming to merge human talents with AI capabilities for enhanced collaboration and efficiency. By focusing on a fluid knowledge exchange and seamless information flow, Nagarro is poised to thrive in the evolving landscape of intelligent organizations. The audited annual report for 2025 is anticipated to be made public on April 29, 2026, providing further insights into Nagarro's strategic direction and performance metrics.
The company’s adjusted EBITDA showed some decline, dropping to €138.2 million from €147.5 million the previous year, leading to an adjusted EBITDA margin of 13.8%. This margin is slightly below the expected range but highlights the company’s stable performance amidst a fluctuating economic landscape. Nagarro's EBITDA was reported at €118.7 million, down from €134 million in 2024. This decline was impacted by an unrealized foreign exchange loss of €15.5 million from intra-group loans, which was not adjusted in the reporting figures. Furthermore, a one-time expense associated with new Labour Codes in India contributed to the financial results.
Manas Human, Nagarro’s co-founder and CEO, offered insights into the financial performance, emphasizing that despite the challenges posed by foreign exchange rates, Nagarro's underlying performance remains consistent. He noted that if revenue were evaluated under the initial guidance exchange rates, it would align with the midpoint of the €1.020 to €1.080 million range. The company ended the year with a cash balance of €124.6 million, a decrease from €192.6 million in 2024, and repurchased approximately 919,421 shares, amounting to €67.8 million.
Looking ahead, Nagarro has set its revenue guidance for FY 2026 between €1,000 million and €1,060 million at current foreign exchange rates, anticipating a gross margin close to 32% and an adjusted EBITDA margin in the range of 14.5% to 15.5%. This forecast reflects a cautious optimism amidst ongoing geopolitical dynamics that could influence customer decisions moving forward.
An important aspect of the recent announcements is the conclusion of an independent investigation that was conducted following allegations of misconduct. This thorough review was carried out by White & Case, with Alvarez & Marsal providing additional support. The findings corroborated Nagarro's transparency and cooperation throughout the investigative process, concluding that none of the earlier allegations were substantiated and highlighting no evidence of fraud or misconduct. The observations from the investigation have prompted Nagarro to reevaluate its governance and documentation practices, spearheading an initiative to align more closely with the expectations of global capital markets. Christian Bacherl, Chairperson of the Supervisory Board, touted the conclusions of the investigation as a significant milestone for the organization, emphasizing the positive collaborative spirit displayed throughout the inquiry.
As the company advances, it seeks to redefine its operations through a new paradigm called Fluidic Intelligence, aiming to merge human talents with AI capabilities for enhanced collaboration and efficiency. By focusing on a fluid knowledge exchange and seamless information flow, Nagarro is poised to thrive in the evolving landscape of intelligent organizations. The audited annual report for 2025 is anticipated to be made public on April 29, 2026, providing further insights into Nagarro's strategic direction and performance metrics.
Topics Business Technology）
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