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Nagarro Financial Report for FY 2025

Nagarro, a leading digital engineering company, has released its audited financial statements and annual report for the fiscal year 2025, indicating a steady growth trajectory even as it navigates through the complexities of the market. The company reported a total revenue of €999.3 million for 2025, marking an increase from €972.0 million in 2024. This reflects a year-on-year growth rate of 2.8% and an impressive constant currency growth of 6.1%.

Revenue Insights

The financials for 2025 exhibit not only a top-line increase but also improvements in gross profit. Nagarro's gross profit reached €321.3 million in 2025, which equates to a gross margin of 32.2%, compared to a gross margin of 30.4% reported in the previous year. Despite these positive trends, challenges remain, as adjusted EBITDA witnessed a decline to €138.2 million from €147.5 million in 2024. The adjusted EBITDA margin settled at 13.8%, falling within the predicted range of 13.5% to 14.5%.

Significantly, Nagarro's EBITDA for 2025 was noted at €118.7 million, a decrease from €134.0 million in 2024, attributed partly to an unrealized foreign exchange loss of €15.5 million on intra-group loans. Moreover, a one-time expense of €12.4 million linked to the enactment of new labor codes in India contributed to alterations in the financial landscape.

Client Dynamics

In terms of client relationships, Nagarro recorded a slight decline in the number of customers generating over €1 million in revenue annually, from 186 clients in 2024 to 180 clients in 2025. This reduction can be linked to the conversion of several project-based implementations into continuous, stable managed service engagements.

Operating cash flows improved markedly, climbing to €102.8 million from €86.5 million in the previous year. The effective management of working capital is evidenced by enhanced days of sales outstanding, which reduced from 88 days in December 2024 to 82 days at the close of 2025.

Financial Position

At the year’s end, Nagarro maintained a cash balance of €124.6 million, a drop from €192.6 million in 2024, while loans and borrowings were reduced to €310.1 million from €329.6 million, showcasing the firm's commitment to strengthening its balance sheet.

In a noteworthy strategic move, Nagarro repurchased 919,421 of its shares during FY 2025, aggregating to a cost of €67.8 million, affirming confidence in its long-term value creation strategy.

Looking ahead, the Management Board has proposed to distribute a dividend of €1.00 per share during the next Annual General Meeting, further emphasizing the ongoing commitment to returning value to shareholders.

Conclusion

Nagarro's FY 2025 financial results illustrate a mixed but ultimately positive scenario. The company has reaffirmed its preliminary numbers, indicating resilience in the face of financial pressures. As Nagarro prepares to continue its journey forward, the combination of strategic investments, fiscal discipline, and a focus on sustainable growth positions it well in an evolving global market landscape. The outlook remains optimistic as Nagarro aims to enhance its operational footprint and drive innovation across sectors. For interested stakeholders, further details can be explored via Nagarro's official website.