GRID DYNAMICS HOLDINGS, INC.GDYN
GRID DYNAMICS HOLDINGS, INC. Revenue Disclosure
Revenues
Disaggregation of revenues
The tables below present disaggregated revenues from contracts with customers by customer location, verticals and contract-types. The Company believes this disaggregation best depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by industry, market and other economic factors. The Company has a single reportable segment for the years ended December 31, 2025, 2024 and 2023.
The following table shows the disaggregation of the Company’s revenues by major customer location. Revenues are attributed to geographic regions based upon location of the customer served irrespective of the location billed, or the location of the delivery center performing the work. Substantially all of the revenue in our North America region relates to operations in the United States.
| For the years ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Customer Location | (in thousands) | ||||||||||||||||
| North America | $ | 289,351 | $ | 279,212 | $ | 238,989 | |||||||||||
| Europe | 86,425 | 56,323 | 60,756 | ||||||||||||||
| Other | 36,051 | 15,036 | 13,165 | ||||||||||||||
| Total Revenues | $ | 411,827 | $ | 350,571 | $ | 312,910 | |||||||||||
The following table shows the disaggregation of the Company’s revenues by main vertical markets for the years ended December 31, 2025, 2024 and 2023:
| For the years ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Vertical | (in thousands) | ||||||||||||||||
| Retail | $ | 120,507 | $ | 113,957 | $ | 102,551 | |||||||||||
Technology, Media and Telecom | 107,451 | 95,048 | 98,830 | ||||||||||||||
| Finance | 100,384 | 60,157 | 28,842 | ||||||||||||||
| CPG/Manufacturing | 43,058 | 40,468 | 42,861 | ||||||||||||||
| Healthcare and Pharma | 10,183 | 11,109 | 13,653 | ||||||||||||||
| Other | 30,244 | 29,832 | 26,173 | ||||||||||||||
| Total Revenues | $ | 411,827 | $ | 350,571 | $ | 312,910 | |||||||||||
The following table shows the disaggregation of the Company’s revenues by contract types for the years ended December 31, 2025, 2024, and 2023:
| For the years ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Contract Type | (in thousands) | ||||||||||||||||
| Time-and-material | $ | 378,899 | $ | 326,771 | $ | 281,282 | |||||||||||
| Fixed-fee | 30,521 | 21,460 | 29,991 | ||||||||||||||
Other revenues | 2,407 | 2,340 | 1,637 | ||||||||||||||
| Total Revenues | $ | 411,827 | $ | 350,571 | $ | 312,910 | |||||||||||
Contract balances
The payment terms included on the Company’s contracts with customers vary and depend on multiple factors including type of service provided, credit evaluation of a customer and prior payment history. When the timing of payment by a customer differs from the timing of rendering services, the Company records either a contract asset or a contract liability. Contract assets include
amounts related to a right to consideration that is conditional upon factors other than the passage of time. Contract liabilities comprise amounts received in advance of the Company’s performance or billings in excess of revenues recognized.
The Company’s contract balances as of the below dates were as follows:
| As of December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
(in thousands) | |||||||||||||||||
Trade receivable, net: | |||||||||||||||||
Billed receivable | $ | 71,260 | $ | 64,754 | $ | 49,824 | |||||||||||
Unbilled receivable | $ | 8,225 | $ | 4,617 | $ | 3,735 | |||||||||||
Contract liabilities in Accrued expenses and other current liabilities | $ | 1,469 | $ | 2,690 | $ | 577 | |||||||||||
As of December 31, 2025, 2024, and 2023, the Company did not have contract assets recorded in its consolidated balance sheets. The decrease in contract liabilities as of December 31, 2025 was due to lower levels of advance collections at the end of the year compared to the prior year.
Revenues recognized during the year ended December 31, 2025 that were included in Accrued expenses and other current liabilities at December 31, 2024 were $2.7 million. Revenues recognized during the year ended December 31, 2024 that were included in Accrued expenses and other current liabilities at December 31, 2023 were $0.5 million. Revenues recognized during the year ended December 31, 2023 that were included in Accrued expenses and other current liabilities at December 31, 2022 were $1.1 million.
Remaining performance obligations
ASC Topic 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of December 31, 2025. This disclosure is not required for:
1)contracts with an original duration of one year or less, including contracts that can be terminated for convenience without a substantive penalty,
2)contracts for which the Company recognizes revenues based on the right to invoice for services performed,
3)variable consideration allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation in accordance with ASC 606-10-25-14(b), for which the criteria in ASC 606-10-32-40 have been met, or
4)variable consideration in the form of a sales-based or usage-based royalty promised in exchange for a license of intellectual property.
All of our performance obligations met one or more of these exemptions as of December 31, 2025.
Transactions with related parties
During the years ended December 31, 2025, 2024, and 2023, the Company conducted transaction with a number of companies affiliated with the members of the Company’s board of directors. As a result, the Company recorded revenue from its related parties of $29.9 million, $18.7 million and $7.6 million for the years ended December 31, 2025, 2024, and 2023, respectively. As of December 31, 2025 and 2024, accounts receivable from related parties were $4.6 million and $3.8 million, respectively. As of December 31, 2025, and 2024 unbilled revenues from related parties were $0.3 million and $0.1 million, respectivelyHistorical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 3, 2022 | |
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.