Nagarro SE

MUNICH, Aug. 14, 2025 /PRNewswire/ -- Nagarro, a global digital engineering leader, today presented its unaudited financial numbers for Q2 2025 and released its half-yearly financial report. 

In Q2 2025, revenue grew to €252.0 million, up 3.2% YoY from €244.1 million in Q2 2024. Constant currency YoY revenue growth for Q2 2025 was 4.7%. Organic YoY revenue growth for the quarter was 3.8% in constant currency, which translated to 2.4% organic YoY revenue growth in Euro terms. Gross profit grew to €83.7 million in Q2 2025 from €73.3 million in Q2 2024. Gross margin was 33.2% in Q2 2025, against 30.0% in Q2 2024.

Despite excellent operational efficiency in Q1 and Q2 2025, Adjusted EBITDA was significantly impacted by the revaluation loss on inter-company loans from Nagarro SE and its cash holdings due to the weakening of the US dollar against the Euro. Across Q1 and Q2 2025, the total impact on Adjusted EBITDA of currency revaluation plus foreign exchange forward transactions was a negative €18.0 million.

Consequently, Adjusted EBITDA for Q2 2025 was €30.5 million (12.1% of revenue), against €35.5 million (14.5% of revenue) in Q2 2024. EBITDA declined to €32.0 million in Q2 2025, from €32.8 million in Q2 2024. EBIT grew marginally to €23.4 million in Q2 2025, from €23.1 million in Q2 2024. Net profit declined to €8.3 million in Q2 2025 against €12.0 million in Q2 2024 mainly due to increase in income tax expense on account of withholding taxes on inter-company dividends remitted by downstream subsidiaries to their immediate holding companies. The number of clients doing more than €1 million in annual revenue in the last 12 months with Nagarro rose from 184 on June 30, 2024 to 188 on June 30, 2025.

A dividend of €1.00 per share amounting to €12.6 million (13.1% of 2024 EBIT) has been declared during the Annual General Meeting held on June 30, 2025.

H1 results

Revenue grew to €498.9 million in H1 2025, up 3.4% YoY from €482.4 million in H1 2024. Constant currency revenue growth for H1 2025 was 3.6%. Organic YoY revenue growth for H1 2025 was 2.8% in constant currency, which translated to 2.6% organic YoY revenue growth in Euro terms. Gross profit grew to €159.3 million in H1 2025 from €146.9 million in H1 2024. Gross margin was 31.9% in H1 2025, against 30.5% in H1 2024.

Adjusted EBITDA was €60.8 million (12.2% of revenue) in H1 2025, against €74.7 million (15.5% of revenue) in H1 2024. EBITDA declined to €65.0 million in H1 2025 from €68.8 million in H1 2024. EBIT declined to €47.5 million in H1 2025 from €49.7 million in H1 2024. Net profit declined to €19.6 million in H1 2025 against €28.6 million in H1 2024 mainly due to increase in income tax expense on account of withholding taxes on inter-company dividends remitted by downstream subsidiaries to their immediate holding companies.

Operating cash inflow in H1 2025 declined to €26.1 million from €27.6 million in H1 2024, even while factoring utilization under the non-recourse factoring program was reduced by €8.5 million in H1 2025 from December 31, 2024. Days of sales outstanding, calculated based on the quarterly revenue and including both contract assets and trade receivables, has improved from 88 days on December 31, 2024 to 85 days on June 30, 2025.

Nagarro's cash balance at the end of June 30, 2025 was €121.8 million as against €192.6 million at the end of December 31, 2024. Nagarro's loans and borrowings at the end of June 30, 2025, were €300.7 million as against €329.6 million at the end of December 31, 2024. The company reported 17,447 professionals as of June 30, 2025.

The summarized table for the three-months period ended June 30, 2025 is as follows:

The summarized table for the six-months period ended June 30, 2025 is as follows:

Supervisory Board committees

The committees of Nagarro's Supervisory Board have been freshly reconstituted. Martin Enderle, Chair of the Supervisory Board, is also the Chair of the Nomination & Remuneration Committee. Until recently he was Chair of the Supervisory Board of Delivery Hero. Hans-Paul Buerkner, who was previously global CEO and Chairman of BCG, is the Chair of the Strategy Committee. Jack Clemons, who was global CEO of Bata and has been on various other boards, including being Chair of the Audit and Risk Committee of the Worldwide Fund for Nature (WWF), is Chair of the Audit Committee.

Update on guidance

On January 23, 2025, we had projected Nagarro's revenue for 2025 to be between €1,020 and €1,080 million, when calculated at the currency exchange rates then prevailing. We now expect Nagarro's revenue for 2025 to come near the lower end of that guidance. We targeted gross margin in the region of 30%, as compared to 30.4% in 2024. We hold to this expectation of gross margin. We targeted the Adjusted EBITDA margin to be between 14.5% and 15.5%, compared to 15.2% in 2024. Despite strong underlying operational performance of the company, the revaluation loss on inter-company loans and cash holdings because of the weakening of the US dollar against the Euro is currently expected to lead the Adjusted EBITDA margin to be between 13.5% and 14.5%.

Nagarro SE will hold its analyst and investors meeting as a video call to discuss the half-yearly financial report 2025 on August 14, 2025, 1:00 pm CEST (4:00 am PT / 6:00 am CT / 7:00 am ET / 12:00 pm BST / 3:00 pm GST / 4:30 pm IST / 7:00 pm SGT / 8:00 pm JST).

Nagarro SE will hold its retail investors call to discuss the half-yearly financial report 2025 on August 14, 2025, at 2:30 pm CEST (5:30 am PT / 7:30 am CT / 8:30 am ET / 1:30 pm BST / 4:30 pm GST / 6:00 pm IST / 8:30 pm SGT / 9:30 pm JST).

To attend, please register in advance at https://www.nagarro.com/en/investor-relations/half-yearly-q2-statements-call-2025.

About Nagarro

Nagarro, a global digital engineering leader, helps clients become fluidic, innovative, digital-first companies and thus win in their markets. The company is distinguished by its entrepreneurial, agile, and global character, its CARING mindset, and its Fluidic Enterprise vision. Nagarro employs around 17,400 people in 39 countries.

For more information, visit www.nagarro.com.

(FRA: NA9) (SDAX/TecDAX: DE000A3H2200) (ISIN: DE000A3H2200) (WKN: A3H220) 

For inquiries, please contact press@nagarro.com.

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• Revenue of €972.0 million
• Gross margin of 30.4%
• Adj. EBITDA margin of 15.1%

MUNICH, April 29, 2025 /PRNewswire/ -- Nagarro, a global digital engineering leader, today announced its preliminary unaudited financial numbers for its full year ended December 31, 2024. Revenue grew to €972.0 million in 2024, up from €912.1 million in 2023, a YoY growth of 6.6%. The constant currency growth in annual revenue was 7.2%. Nagarro has revised the definition of cost of revenues from Q1 2024 onwards to align it better with that of other IT services companies. Gross profit in 2024 grew to €295.8 million as per the current method (30.4% gross margin) and €253.9 million as per the previous method (26.1% gross margin), up from €235.7 million in 2023 as per the previous method (25.8% gross margin). Adjusted EBITDA grew to €146.5 million in 2024 from €126.1 million in 2023. Adjusted EBITDA margin grew to 15.1% in 2024, up from 13.8% in 2023.

Nagarro's cash balance at the end of 2024 was €192.6 million as against €110.1 million at the end of 2023. Nagarro's loans and borrowings at the end of 2024 were €329.6 million as against €274.7 million at the end of 2023. The company reported 17,695 professionals as of December 31, 2024.

Vikram Sehgal, COO and co-founder, said, "We are pleased to have delivered a robust 2024, despite the macro headwinds, and we have had a sound start into 2025. We are also excited about the many changes we are making to deliver profitable growth reliably in the years to come."

Nagarro will publish both the audited annual report for 2024 and the unaudited quarterly statement for Q1 2025 on May 15, 2025.

About Nagarro

Nagarro, a global digital engineering leader, helps clients become fluidic, innovative, digital-first companies and thus win in their markets. The company is distinguished by its entrepreneurial, agile, and global character, its CARING mindset, and its Fluidic Enterprise vision. Nagarro employs about 17,700 people in 38 countries. For more information, please visit www.nagarro.com.

(FRA: NA9) (SDAX/TecDAX: DE000A3H2200) (ISIN: DE000A3H2200) (WKN: A3H220)

For inquiries, please contact press@nagarro.com.

Logo: https://mma.prnewswire.com/media/844192/3850575/Nagarro_Logo.jpg

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