Nagarro Reports Audited Financial Results for FY 2025 With Key Highlights

Nagarro's Financial Overview for FY 2025

Nagarro, a prominent leader in digital engineering, has recently released its audited financial results for the fiscal year 2025. The results reflect a year of growth, albeit with some challenges. The total revenue climbed to €999.3 million, marking a 2.8% increase compared to €972.0 million in 2024. When adjusted for constant currency, this year-on-year growth rate stands at an impressive 6.1%.

Key Financial Metrics

In terms of profitability, Nagarro reported a gross profit of €321.3 million, which translates to a gross margin of 32.2%. This shows a healthy increase of 8.6% from the previous year when the gross profit was €295.8 million, and the margin sat at 30.4%. However, the adjusted EBITDA fell to €138.2 million from €147.5 million in 2024, marking a decline of 6.3%. The adjusted EBITDA margin was 13.8%, slightly lower than the expected range of 13.5% to 14.5%.

Despite these figures, Nagarro's EBITDA for 2025 stood at €118.7 million, down from €134 million in 2024, reflecting an 11.5% decrease. The company’s EBIT also saw a dip, recorded at €83 million compared to €96.7 million the previous year. The net profit showed a significant decline, falling to €39.5 million from €49.2 million.

Operational Highlights

On a positive note, Nagarro managed to increase its operating cash flow to €102.8 million, up from €86.5 million in 2024. The company continued utilizing factoring as part of its non-recourse factoring program, which increased by €8.8 million in 2025. Another noteworthy development was the improvement in the accounts receivable collection period, which decreased from 88 days at the end of 2024 to 82 days in 2025.

At the end of the year, Nagarro had a cash balance of €124.6 million, down from €192.6 million in 2024, with total loans and borrowings amounting to €310.1 million compared to €329.6 million the previous year. Furthermore, during 2025, Nagarro repurchased 919,421 shares for an overall value of €67.8 million.

Future Outlook

Looking forward, Nagarro plans to propose a dividend of €1 per share during the upcoming annual general meeting, which reflects the company’s commitment to creating long-term value for its stakeholders. The management remains optimistic about the company's future, aiming to adapt in the evolving market landscape while maintaining a focus on innovation and customer satisfaction.

Conclusion

Nagarro’s financial results for fiscal year 2025 capture a blend of growth and operational challenges. While revenue and gross profit exhibit positive trajectories, the decline in profit margins and net income points to a need for strategic adjustments. The company’s focus on improvement in cash flow and operational metrics suggests a determined approach to maintaining its competitive stance in the digital engineering domain. With a robust workforce of approximately 18,000 employees across 38 countries, Nagarro is poised to leverage its strengths to further navigate the complexities of the digital landscape.

For more details, visit Nagarro’s official website at www.nagarro.com.