Aug14: Nagarro, a global AI transformation and engineering leader, presented its unaudited financial numbers for Q2 2026 and H1 2026, and released its half-yearly financial report.
Q2 results
In Q2 2026, revenue grew to €252.4 million, up from €252.0 million in Q2 2025. On a constant–currency basis, YoY revenue growth was 2.0%, which translated to growth of 0.2% in Euro terms. Organic YoY revenue growth for the quarter was 0.6% in constant currency, which translated to negative 1.1% in Euro terms. Gross profit declined to €81.8 million in Q2 2026 from €83.7 million in Q2 2025. Adjusted EBITDA increased to €37.8 million in Q2 2026, up from €30.5 million in Q2 2025.
EBITDA declined to €27.7 million in Q2 2026, from €32.0 million in Q2 2025. While adjusted EBITDA grew by €7.3 million year-on-year, EBITDA decreased by €4.3 million, primarily due to YoY increase in share-based payment arrangements cost of €12.0 million. For the same reason, EBIT declined to €19.2 million in Q2 2026 from €23.4 million in Q2 2025. Net profit increased to €10.6 million in Q2 2026, up from €8.3 million in Q2 2025 mainly due to absence of withholding tax expense on intra-group dividends. The number of clients generating more than €1 million revenue in last 12-month period was 184 as of June 30, 2026, up from 179 as of March 31, 2026.
Operating cash inflow in Q2 2026 increased to €29.8 million from €4.9 million in Q2 2025 primarily due to higher collections from trade receivables and lower taxes paid.
At the Annual General Meeting held on June 29, 2026, a dividend of €1.00 per share, amounting to €12.4 million and representing 14.9% of 2025 EBIT, was declared. This compares with a dividend of €1.00 per share, amounting to €12.6 million and representing 13.1% of 2024 EBIT, declared at the AGM held on June 30, 2025.
H1 results
In H1 2026, Nagarro’s revenues increased to €500.5 million in H1 2026, up from €498.9 million in H1 2025. On a constant–currency basis, YoY revenue growth was 4.2%, which translated into growth of 0.3% in Euro terms. Organic YoY revenue growth was 2.7% in constant currency, which translated into negative 1.1% in Euro terms. Gross profit and gross margin remained broadly stable at €159.2 million in H1 2026, compared with €159.3 million in H1 2025. Adjusted EBITDA increased to €69.1 million in H1 2026, up from €60.8 million in H1 2025.
EBITDA increased to €66.5 million in H1 2026 from €65.0 million in H1 2025. EBIT increased to €49.2 million in H1 2026 from €47.5 million in H1 2025. Net profit increased to €29.8 million in H1 2026, up from €19.6 million in H1 2025.
Operating cash inflow in H1 2026 declined to €29.5 million from €42.4 million in H1 2025 due to pending collections from some clients, which are being collected in Q3 2026. Days of sales outstanding calculated based on the quarterly revenue, and including both contract assets and trade receivables, has stayed flat at 86 days on June 30, 2026, from March 31, 2026.
Nagarro’s cash balance as of June 30, 2026, was €131.3 million, up from €124.6 million at the end of December 31, 2025. Nagarro’s loans and borrowings remained broadly stable at €310.5 million as of June 30, 2026, compared with €310.1 million as of December 31, 2025. The company reported 18,711 professionals as of June 30, 2026.
The summarized table for the three-month period ended June 30, 2026, is as follows:
|
|
Q2 2026 mEUR |
Q2 2025 mEUR |
Growth |
|
Revenue |
252.4 |
252.0 |
0.2% YoY in Euro |
|
Gross profit |
81.8 |
83.7 |
Negative 2.3% YoY |
|
Gross margin |
32.4% |
33.2% |
|
|
Adjusted EBITDA |
37.8 |
30.5 |
23.9% YoY |
|
Adjusted EBITDA margin |
15.0% |
12.1% |
|
|
EBITDA |
27.7 |
32.0 |
Negative 13.4% YoY |
|
EBIT |
19.2 |
23.4 |
Negative 17.9% YoY |
|
Net profit |
10.6 |
8.3 |
27.7% YoY |
The summarized table for the six-month period ended June 30, 2026, is as follows:
|
|
H1 2026 mEUR |
H1 2025 mEUR |
Growth |
|
Revenue |
500.5 |
498.9 |
0.3% YoY in Euro |
|
Gross profit |
159.2 |
159.3 |
Negative 0.1% YoY |
|
Gross margin |
31.8% |
31.9% |
|
|
Adjusted EBITDA |
69.1 |
60.8 |
13.7% YoY |
|
Adjusted EBITDA margin |
13.8% |
12.2% |
|
|
EBITDA |
66.5 |
65.0 |
2.3% YoY |
|
EBIT |
49.2 |
47.5 |
3.6% YoY |
|
Net profit |
29.8 |
19.6 |
52.0% YoY |