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ER - Nagarro releases unaudited Q2 2025 results, posts 4.7% YoY revenue growth in constant currency and 14.2% increase in gross profit despite global macroeconomic challenges

Company: Nagarro SE Date: 2025-08-14 Language: English Register to download
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 News Details 

Corporate | 14 August 2025 09:01

#   

Nagarro releases unaudited Q2 2025 results, posts 4.7% YoY revenue growth in constant currency and 14.2% increase in gross profit despite global macroeconomic challenges

Nagarro SE / Key word(s): Quarter Results/Half Year Results  

Nagarro releases unaudited Q2 2025 results, posts 4.7% YoY revenue growth in constant currency and 14.2% increase in gross profit despite global macroeconomic challenges  

  

14.08.2025 / 09:01 CET/CEST  

The issuer is solely responsible for the content of this announcement.  

  

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*August 14, 2025* – 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:

|     |     |     |     |     |     |     |
| --- | --- | --- | --- | --- | --- | --- |
|     |     | **Q2 2025** |     | **Q2 2024** |     | **Growth** |
|     |     | mEUR |     | mEUR |     |     |
| Revenue |     | 252.0 |     | 244.1 |     | 3.2% YoY  <br><br>4.7% YoY in constant currency |
| Gross profit |     | 83.7 |     | 73.3 |     | 14.2% YoY |
| Gross margin |     | 33.2% |     | 30.0% |     |     |
| Adjusted EBITDA |     | 30.5 |     | 35.5 |     | Negative 14.1% YoY |
| Adjusted EBITDA margin |     | 12.1% |     | 14.5% |     |     |
| EBITDA |     | 32.0 |     | 32.8 |     | Negative 2.4% YoY |
| EBIT |     | 23.4 |     | 23.1 |     | 1.3% YoY |
| Net profit |     | 8.3 |     | 12.0 |     | Negative 30.8% YoY |
|     |     |     |     |     |     |     |

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

|     |     |     |     |     |     |     |
| --- | --- | --- | --- | --- | --- | --- |
|     |     | **H1 2025** |     | **H1 2024** |     | **Growth** |
|     |     | mEUR |     | mEUR |     |     |
| Revenue |     | 498.9 |     | 482.4 |     | 3.4% YoY  <br><br>3.6% YoY in constant currency |
| Gross profit |     | 159.3 |     | 146.9 |     | 8.4% YoY |
| Gross margin |     | 31.9% |     | 30.5% |     |     |
| Adjusted EBITDA |     | 60.8 |     | 74.7 |     | Negative 18.6% YoY |
| Adjusted EBITDA margin |     | 12.2% |     | 15.5% |     |     |
| EBITDA |     | 65.0 |     | 68.8 |     | Negative 5.5% YoY |
| EBIT |     | 47.5 |     | 49.7 |     | Negative 4.4% YoY |
| Net profit |     | 19.6 |     | 28.6 |     | Negative 31.5% YoY |
|     |     |     |     |     |     |     |

**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](https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=07bd0eaa825e1d584e4d604d03fedb4a&application_id=2183764&site_id=airport_aws~~~7cc68db1-74de-43c8-af69-2ae0a97efdc3&application_name=news) .

  

**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](https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=08b2e002c9b3d2fc600e967d7ac8686a&application_id=2183764&site_id=airport_aws~~~7cc68db1-74de-43c8-af69-2ae0a97efdc3&application_name=news) .

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

For inquiries, please contact [press@nagarro.com](mailto:press@nagarro.com) .

  

- - -

14.08.2025 CET/CEST Dissemination of a Corporate News, transmitted by EQS News – a service of EQS Group.  

The issuer is solely responsible for the content of this announcement.  

  

The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.  

Archive at www.eqs-news.com  

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|     |     |
| --- | --- |
| Language: | English |
| Company: | Nagarro SE |
|     | Baierbrunner Straße 15 |
|     | 81379 München |
|     | Germany |
| Phone: | 089 / 785 000 282 |
| E-mail: | ir@nagarro.com |
| Internet: | www.nagarro.com |
| ISIN: | DE000A3H2200 |
| WKN: | A3H220 |
| Indices: | TecDAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 2183764 |

  

|     |     |
| --- | --- |
|     |     |
| End of News | EQS News Service |

- - -

2183764  14.08.2025 CET/CEST

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