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PRNewswire
Munich [Germany], November 13: Nagarro, a global AI-native engineering and transformation leader, presented its unaudited financial numbers for 9M 2026 and 3M 2026, and released its quarterly statement for Q3 2026. In 9M 2026, revenue grew to 755.5 million from 753.4 million in 9M 2025. On a constant currency basis, revenue growth was 2.7% YoY, which translated to a growth of 0.3% YoY in Euro terms. Organic YoY revenue growth for 9M 2026 was 1.2% YoY in constant currency, which translated to negative 1.2% YoY in Euro terms. Gross profit was flat at 243.1 million (32.2% of revenue) in 9M 2026 from 243.5 million (32.3% of revenue) in 9M 2025. Adjusted EBITDA grew to 107.3 million (14.2% of revenue) in 9M 2026 from 104.8 million (13.9% of revenue) in 9M 2025. EBITDA declined to 99.0 million in 9M 2026 from 108.5 million in 9M 2025. EBITDA decreased mainly because of an increase in net expense from special items by 12.1 million (mainly due to increase in expense of share-based payment arrangements of 14.4 million which has been partly offset by decrease in investigation expenses by 1.1 million and absence of additional audit fees of 1.3 million). This has been offset by increase in adjusted EBITDA by 2.5 million. Our most significant adjustments to EBITDA in 9M 2026 are the expense of share-based payment arrangements amounting to 5.1 million and expenses related to the public takeover offer amounting to 1.8 million. Consequently, EBIT also declined to 73.0 million in 9M 2026 from 82.3 million in 9M 2025. Overall, net profit grew to 42.5 million in 9M 2026 from 41.0 million in 9M 2025 mainly due to decrease in YoY withholding taxes on intra-group dividends. Operating cash flow (OCF) in 9M 2026 increased slightly to 77.7 million from 77.1 million in 9M 2025. OCF adjusted for changes in factoring was 85.0 million in 9M 2026 as compared to 81.0 million in 9M 2025. 3M results In Q3 2026, revenue grew to 255.0 million, up from 254.6 million in Q3 2025. On a constant currency basis, revenue was flat at negative 0.2% YoY, which translated to a growth of 0.2% YoY in Euro terms. Organic YoY revenue growth for the quarter was negative 1.6% YoY in constant currency, which translated to a growth of negative 1.2% YoY in Euro terms. Gross profit was flat at 83.9 million (32.9% of revenue) in Q3 2026 from 84.2 million (33.1% of revenue) in Q3 2025. Adjusted EBITDA declined to 38.3 million (15.0% of revenue) in Q3 2026 from 44.0 million (17.3% of revenue) in Q3 2025. EBITDA declined to 32.5 million in Q3 2026 from 43.5 million in Q3 2025. EBITDA decreased mainly because of a decrease in adjusted EBITDA by 5.8 million and increase in net expense from special items by 5.2 million (mainly due to YoY increase in expense of share-based payment arrangements of 6.4 million which has been partly offset by absence of investigation expenses amounting to 1.0 million). Our net adjustment to EBITDA in Q3 2026 is an expense of 5.8 million. The most significant adjustments are the expense of share-based payment arrangements amounting to 4.6 million and expenses related to the public takeover offer amounting to 0.9 million. Consequently, EBIT also declined to 23.8 million in Q3 2026 from 34.9 million in Q3 2025. This decrease in EBIT was partly offset by decrease in income tax expense of 3.1 million, resulting in decrease in net profit to 12.7 million in Q3 2026 from 21.4 million in Q3 2025. The number of clients generating revenue of more than 1 million in the last 12 months rose from 184 as of June 30, 2026 to 186 on September 30, 2026. OCF in Q3 2026 increased to 48.2 million from 34.7 million in Q3 2025 primarily due to better collections from customers and lower taxes paid on intra-group dividends. Days of sales outstanding (DSO), calculated based on the quarterly revenue and including both contract assets and trade receivables, has improved from 82 days on December 31, 2025, to 80 days on September 30, 2026. Nagarro's cash and cash equivalents remained almost stable at 124.3 million as of September 30, 2026, compared to 124.6 million as of December 31, 2025. Nagarro's loans and borrowings as of September 30, 2026, were 278.0 million, as against 310.1 million as of December 31, 2025, mainly because of repayment of syndicated Revolving Credit Facility. The company reported 18,499 professionals as of September 30, 2026. About Nagarro Nagarro is a global AI-native engineering and transformation company that engineers intelligence into enterprises securely, responsibly, and at scale. Distinguished by its entrepreneurial, agile, and global character, Nagarro is guided by its CARING values. Nagarro employs around 18,500 people in 39 countries. For more information, visit www.nagarro.com. (FRA: NA9) (ISIN: DE000A3H2200) (WKN: A3H220) For inquiries, please contact press@nagarro.com. (ADVERTORIAL DISCLAIMER: The above press release has been provided by PRNewswire. ANI will not be responsible in any way for the content of the same.)
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