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Nagarro Financial Report: FY 2024 and Q1 2025 Highlights

On May 15, 2025, Nagarro, a leader in digital engineering, unveiled its audited financial figures for the fiscal year ending December 31, 2024, along with unaudited results for the first quarter of 2025. The results underline Nagarro's business strength and set a confident tone for stakeholders moving forward.

Financial Overview for FY 2024

Nagarro experienced a significant revenue boost, growing to €972.0 million—a 6.6% increase from €912.1 million in 2023. This growth includes a robust constant currency increase of 7.2%. The company’s gross profit saw a substantial rise to €295.8 million, showcasing a consistent shift towards higher profitability, driven by increasing demand for its digital solutions.

Key Metrics for FY 2024:

• - Gross Margin: 30.4%
• - Adjusted EBITDA: €147.5 million (up by 16.9% YoY)
• - Net Profit: Maintained at €49.2 million, illustrating stable profitability.
• - Number of High-Value Clients: Increased to 186 from 181, highlighting customer trust in Nagarro’s services.

Nagarro’s operating cash flow rose to €86.5 million, complemented by a significant cash balance of €192.6 million by the end of 2024, indicating prudent financial management.

Proposed Dividend and Board Expansion

In a move signaling strong corporate governance and confidence in future performance, the Management and Supervisory Boards proposed a dividend of €1 per share for shareholders at the upcoming Annual General Meeting. Additionally, candidates with considerable expertise in digital transformation and finance have been proposed for expansion of the Supervisory Board, a decision that aligns with the company’s long-term growth objectives.

Q1 2025 Financial Performance

Nagarro continued its momentum into the first quarter of 2025, reporting a revenue of €246.9 million, a 3.6% increase from €238.3 million in Q1 2024. Despite this positive growth, the company faced some challenges:

• - Gross Profit: Increased to €75.5 million, yet gross margins slightly decreased to 30.6% from 30.9%.
• - EBITDA: Dropped to €33.0 million from €36.0 million, reflecting the impacts of operational costs.
• - Net Profit: Declined to €11.2 million compared to €16.6 million in the prior year, attributed to higher expenses against stable revenues.

The operating cash flow in Q1 was healthy at €29.8 million, while the company managed to decrease factoring utilization under its non-recourse policy by €6.7 million, improving financial stability.

Looking Ahead

The next steps for Nagarro include strategic initiatives aimed at enhancing its market position and achieving its ambitious growth trajectory over the coming months. Key discussions about financial results and future strategies will take place in upcoming analyst and retail investors meetings scheduled for the same day as the financial announcement.

In summary, Nagarro's performance in FY 2024 and Q1 2025 highlights its strong market position and commitment to growth, backed by financial stability and shareholder confidence. They continue to advocate for a robust digital engineering landscape, focusing on innovative solutions tailored for evolving market demands.

For more details on Nagarro’s financial results and future projections, please visit www.nagarro.com.