EPAM Systems, Inc.EPAM
EPAM Systems, Inc. Revenue Disclosure
REVENUES
Our revenues are sourced from multiple countries, which we assign into three geographic markets identified as Americas, EMEA, and APAC. The Company presents and discusses revenues by client location based on the location of the specific client site that it serves, irrespective of the location of the headquarters of the client or the location of the delivery center where the work is performed. Revenues by client location is different from revenues by reportable segment as segments are not based on the geographic location of the clients, but instead they are based on the location of the Company’s management responsible for a particular client or market (see Note 19 “Segment Information”). The Company assigns clients into one of five main industries or a group of various industries where the Company is increasing its presence, which is labeled as “Emerging Verticals.” Emerging Verticals include clients in multiple industries such as automotive, energy, industrial materials, manufacturing, telecommunications and several others.
Disaggregation of Revenues
The following tables present the disaggregation of the Company’s revenues by major client location, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 19 “Segment Information”) for the years ended December 31, 2025, 2024 and 2023:
| Year Ended December 31, 2025 | |||||||||||||||||
| Reportable Segments | |||||||||||||||||
| Americas | Europe | Consolidated Revenues | |||||||||||||||
| Client Locations | |||||||||||||||||
Americas(1) | $ | 3,011,650 | $ | 189,274 | $ | 3,200,924 | |||||||||||
EMEA(2) | 152,558 | 1,994,746 | 2,147,304 | ||||||||||||||
APAC(3) | 1,908 | 106,920 | 108,828 | ||||||||||||||
| Revenues | $ | 3,166,116 | $ | 2,290,940 | $ | 5,457,056 | |||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||
| Reportable Segments | |||||||||||||||||
| Americas | Europe | Consolidated Revenues | |||||||||||||||
| Client Locations | |||||||||||||||||
Americas(1) | $ | 2,726,757 | $ | 107,947 | $ | 2,834,704 | |||||||||||
EMEA(2) | 137,370 | 1,655,828 | 1,793,198 | ||||||||||||||
APAC(3) | 2,212 | 97,826 | 100,038 | ||||||||||||||
| Revenues | $ | 2,866,339 | $ | 1,861,601 | $ | 4,727,940 | |||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| Reportable Segments | |||||||||||||||||||||||
| Americas | Europe | Russia | Consolidated Revenues | ||||||||||||||||||||
| Client Locations | |||||||||||||||||||||||
Americas(1) | $ | 2,645,174 | $ | 96,857 | $ | 631 | $ | 2,742,662 | |||||||||||||||
EMEA(2) | 116,054 | 1,706,728 | — | 1,822,782 | |||||||||||||||||||
APAC(3) | 3,248 | 98,890 | — | 102,138 | |||||||||||||||||||
CEE(4) | 546 | 6,968 | 15,444 | 22,958 | |||||||||||||||||||
| Revenues | $ | 2,765,022 | $ | 1,909,443 | $ | 16,075 | $ | 4,690,540 | |||||||||||||||
(1)Americas includes revenues from clients in North, Central and South America.
(2)EMEA includes revenues from clients in Western Europe and the Middle East. Beginning in 2024, revenues from the CEE region are included in the EMEA region.
(3)APAC, or Asia Pacific, includes revenues from clients in East Asia, Southeast Asia and Australia.
(4)CEE includes revenues from clients in Belarus, Georgia, Kazakhstan, Russia, Ukraine and Uzbekistan. As a result of the sale of the Company’s remaining holdings in Russia to a third-party on July 26, 2023, revenues from the CEE region are no longer material. Beginning in 2024, revenues from the CEE region are included in the EMEA region.
The following tables present the disaggregation of the Company’s revenues by industry vertical, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 19 “Segment Information”) for the years ended December 31, 2025, 2024 and 2023:
| Year Ended December 31, 2025 | |||||||||||||||||
| Reportable Segments | |||||||||||||||||
| Americas | Europe | Consolidated Revenues | |||||||||||||||
| Industry Verticals | |||||||||||||||||
| Financial Services | $ | 603,711 | $ | 712,776 | $ | 1,316,487 | |||||||||||
Consumer Goods, Retail & Travel | 479,934 | 597,579 | 1,077,513 | ||||||||||||||
| Software & Hi-Tech | 560,449 | 261,370 | 821,819 | ||||||||||||||
| Business Information & Media | 465,232 | 210,435 | 675,667 | ||||||||||||||
| Life Sciences & Healthcare | 496,831 | 128,776 | 625,607 | ||||||||||||||
| Emerging Verticals | 559,959 | 380,004 | 939,963 | ||||||||||||||
| Revenues | $ | 3,166,116 | $ | 2,290,940 | $ | 5,457,056 | |||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||
| Reportable Segments | |||||||||||||||||
| Americas | Europe | Consolidated Revenues | |||||||||||||||
| Industry Verticals | |||||||||||||||||
| Financial Services | $ | 519,986 | $ | 502,631 | $ | 1,022,617 | |||||||||||
Consumer Goods, Retail & Travel | 450,162 | 562,976 | 1,013,138 | ||||||||||||||
| Software & Hi-Tech | 525,091 | 177,276 | 702,367 | ||||||||||||||
| Business Information & Media | 449,449 | 225,148 | 674,597 | ||||||||||||||
| Life Sciences & Healthcare | 488,455 | 86,150 | 574,605 | ||||||||||||||
| Emerging Verticals | 433,196 | 307,420 | 740,616 | ||||||||||||||
| Revenues | $ | 2,866,339 | $ | 1,861,601 | $ | 4,727,940 | |||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| Reportable Segments | |||||||||||||||||||||||
| Americas | Europe | Russia | Consolidated Revenues | ||||||||||||||||||||
| Industry Verticals | |||||||||||||||||||||||
| Financial Services | $ | 538,837 | $ | 472,146 | $ | 7,450 | $ | 1,018,433 | |||||||||||||||
Consumer Goods, Retail & Travel | 472,350 | 596,830 | 3,770 | 1,072,950 | |||||||||||||||||||
| Software & Hi-Tech | 552,492 | 153,683 | 1,545 | 707,720 | |||||||||||||||||||
| Business Information & Media | 429,800 | 323,985 | 196 | 753,981 | |||||||||||||||||||
| Life Sciences & Healthcare | 429,245 | 60,549 | 120 | 489,914 | |||||||||||||||||||
| Emerging Verticals | 342,298 | 302,250 | 2,994 | 647,542 | |||||||||||||||||||
| Revenues | $ | 2,765,022 | $ | 1,909,443 | $ | 16,075 | $ | 4,690,540 | |||||||||||||||
The Company derives revenues from a variety of customized and integrated service arrangements. These contracts may be in the form of time-and-materials or fixed-price arrangements.
The following tables present the disaggregation of the Company’s revenues by contract type, including a reconciliation of the disaggregated revenues with the Company’s reportable segments (Note 19 “Segment Information”) for the years ended December 31, 2025, 2024 and 2023:
| Year Ended December 31, 2025 | |||||||||||||||||
| Reportable Segments | |||||||||||||||||
| Americas | Europe | Consolidated Revenues | |||||||||||||||
| Contract Types | |||||||||||||||||
Time-and-materials | $ | 2,608,351 | $ | 1,756,062 | $ | 4,364,413 | |||||||||||
| Fixed-price | 534,046 | 529,164 | 1,063,210 | ||||||||||||||
| Licensing and other revenues | 23,719 | 5,714 | 29,433 | ||||||||||||||
| Revenues | $ | 3,166,116 | $ | 2,290,940 | $ | 5,457,056 | |||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||
| Reportable Segments | |||||||||||||||||
| Americas | Europe | Consolidated Revenues | |||||||||||||||
| Contract Types | |||||||||||||||||
Time-and-materials | $ | 2,423,554 | $ | 1,477,398 | $ | 3,900,952 | |||||||||||
| Fixed-price | 419,361 | 377,870 | 797,231 | ||||||||||||||
| Licensing and other revenues | 23,424 | 6,333 | 29,757 | ||||||||||||||
| Revenues | $ | 2,866,339 | $ | 1,861,601 | $ | 4,727,940 | |||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| Reportable Segments | |||||||||||||||||||||||
| Americas | Europe | Russia | Consolidated Revenues | ||||||||||||||||||||
| Contract Types | |||||||||||||||||||||||
Time-and-materials | $ | 2,457,545 | $ | 1,613,790 | $ | 11,168 | $ | 4,082,503 | |||||||||||||||
| Fixed-price | 283,183 | 291,174 | 4,873 | 579,230 | |||||||||||||||||||
| Licensing and other revenues | 24,294 | 4,479 | 34 | 28,807 | |||||||||||||||||||
| Revenues | $ | 2,765,022 | $ | 1,909,443 | $ | 16,075 | $ | 4,690,540 | |||||||||||||||
Performance Obligations
During the years ended December 31, 2025, 2024 and 2023 the Company recognized $23.3 million, $13.6 million and $5.8 million, respectively, of revenues from performance obligations satisfied in previous periods.
The following table includes the estimated revenues expected to be recognized in the future related to performance obligations that are partially or fully unsatisfied as of December 31, 2025. The Company applies a practical expedient and does not disclose the value of unsatisfied performance obligations for contracts that (i) have an original expected duration of one year or less and (ii) contracts for which it recognizes revenues at the amount to which it has the right to invoice for services provided:
| Less than 1 year | 1 Year | 2 Years | 3 Years | Total | |||||||||||||||||||||||||
| Contract Type | |||||||||||||||||||||||||||||
| Fixed-price | $ | 41,891 | $ | 1,721 | $ | — | $ | — | $ | 43,612 | |||||||||||||||||||
The Company applies a practical expedient and does not disclose the amount of the transaction price allocated to the remaining performance obligations nor provide an explanation of when the Company expects to recognize that amount as revenue for certain variable consideration.
Contract Balances
The following table provides information on the classification of contract assets and liabilities in the consolidated balance sheets:
| As of December 31, 2025 | As of December 31, 2024 | ||||||||||
Contract assets included in trade receivables and contract assets, net | $ | 58,759 | $ | 52,897 | |||||||
Contract liabilities included in accrued expenses and other current liabilities | $ | 104,219 | $ | 59,321 | |||||||
Contract liabilities included in other noncurrent liabilities | $ | 674 | $ | 741 | |||||||
Contract assets comprise amounts where the Company’s right to bill is contingent on something other than the passage of time. Contract assets have increased from December 31, 2024 primarily due to the timing of revenue recognition ahead of billing milestones in contracts where the Company’s right to bill is contingent upon achievement of contractual milestones. Contract liabilities comprise amounts collected from the Company's clients for revenues not yet earned and such amounts are anticipated to be recorded as revenues when services are performed in subsequent periods. Contract liabilities have increased from December 31, 2024, primarily due to higher levels of advance collections at the end of the year including $51.2 million from a single customer.
During the year ended December 31, 2025, the Company recognized $52.7 million of revenues that were included in accrued expenses and other current liabilities at December 31, 2024. During the year ended December 31, 2024, the Company recognized $21.3 million of revenues that were included in accrued expenses and other current liabilities at December 31, 2023.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Feb 26, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.