EPAM Systems, Inc.

Previous wording

On February 24, 2022, Russian forces attacked Ukraine and its people and EPAM has repeatedly called for an immediate end to this unlawful and unconscionable attack. EPAM’s highest priority is the safety and security of its employees and their families in Ukraine as well as in the broader region, and we have continued to support relocating our employees to lower risk locations, both within Ukraine and to other countries where we operate. The vast majority of our Ukraine employees are in safe locations and operating at levels of productivity consistent with those achieved prior to the attack. As of March 31, 2025, Ukraine continues to be a significant delivery location with a large number of delivery professionals. Furthermore, we have maintained our $100 million humanitarian aid commitment to our people in Ukraine in addition to our other donations and volunteer efforts, and as of March 31, 2025, we have $20.3 million remaining to be expensed under this humanitarian commitment.

Current wording

On February 24, 2022, Russian forces attacked Ukraine and its people, and through the issuance date of these interim financial statements, there has been no resolution to this attack. EPAM’s highest priority is the safety and security of its employees and their families in Ukraine as well as in the broader region, and we have continued to support relocating our employees to lower risk locations, both within Ukraine and to other countries where we operate. The vast majority of our Ukraine employees are in safe locations and operating at levels of productivity consistent with those achieved prior to the attack. As of June 30, 2025, Ukraine continues to be a significant delivery location with a large number of delivery professionals. Furthermore, we have maintained our $100 million humanitarian aid commitment to our people in Ukraine in addition to our other donations and volunteer efforts, and as of June 30, 2025, we have $16.4 million remaining to be expensed under this humanitarian commitment.

Previous wording

For the first three months of 2025, our revenues were $1.302 billion, an increase of 11.7% from $1.165 billion reported for the same period of 2024. Revenues have been positively impacted by improving demand for our services and acquisitions completed in 2024. Income from operations as a percentage of revenues decreased to 7.6% for the three months ended March 31, 2025 as compared to 9.5% for the three months ended March 31, 2024, largely driven by an increase in cost of revenues (exclusive of depreciation and amortization) as a percentage of revenues. Diluted earnings per share decreased to $1.28 for the three months ended March 31, 2025 from $1.97 for the three months ended March 31, 2024, principally resulting from a decrease in income from operations as well as reduced excess tax benefits upon vesting or exercise of equity awards.

Current wording

For the first six months of 2025, our revenues were $2.655 billion, an increase of 14.8% from $2.312 billion reported for the same period of 2024. Revenues have been positively impacted by improving demand for our services, acquisitions completed in 2024, and foreign exchange fluctuations. Income from operations as a percentage of revenues decreased to 8.5% for the six months ended June 30, 2025 as compared to 10.0% for the six months ended June 30, 2024, largely driven by an increase in cost of revenues (exclusive of depreciation and amortization) as a percentage of revenues. Diluted earnings per share decreased to $2.84 for the six months ended June 30, 2025 from $3.67 for the six months ended June 30, 2024, principally resulting from a decrease in income from operations as well as reduced excess tax benefits upon vesting or exercise of equity awards.

Previous wording

During the three months ended March 31, 2025, there have been no material changes to our critical accounting policies as reported in our Annual Report on Form 10-K for the year ended December 31, 2024.

Current wording

During the three and six months ended June 30, 2025, there have been no material changes to our critical accounting policies as reported in our Annual Report on Form 10-K for the year ended December 31, 2024.

Previous wording

(1)Includes $23,923 and $22,357 of stock-based compensation expense for the three months ended March 31, 2025 and 2024. respectively.

Current wording

(1)Includes $18,161 and $16,937 of stock-based compensation expense for the three months ended June 30, 2025 and 2024, respectively, and $42,084 and $39,294 of stock-based compensation expense for the six months ended June 30, 2025 and 2024, respectively.

Previous wording

(2)Includes $24,533 and $22,434 of stock-based compensation expense for the three months ended March 31, 2025 and 2024, respectively.

Current wording

(2)Includes $20,397 and $18,747 of stock-based compensation expense for the three months ended June 30, 2025 and 2024, respectively, and $44,930 and $41,181 of stock-based compensation expense for the six months ended June 30, 2025 and 2024, respectively.

Previous wording

During the three months ended March 31, 2025, our total revenues increased by 11.7% to $1.302 billion compared to the corresponding period in 2024. During the three months ended March 31, 2025 as compared to the same period last year, revenues have been positively impacted by improving demand for our services and acquisitions completed in 2024 and negatively impacted by the fluctuations in foreign currency exchange rates which decreased our revenue growth by 1.7%.

Current wording

During the three months ended June 30, 2025, our total revenues increased by 18.0% to $1.353 billion compared to the corresponding period in 2024. During the three months ended June 30, 2025 as compared to the same period last year, revenues have been positively impacted by improving demand for our services, acquisitions completed in 2024, and fluctuations in foreign currency exchange rates which increased our revenue growth by 1.7%.

Previous wording

Revenues by client location for the three months ended March 31, 2025 and 2024 were as follows:

Current wording

Revenues by client location for the three and six months ended June 30, 2025 and 2024 were as follows:

Previous wording

During the three months ended March 31, 2025, the United States continued to be our largest client location. During the three months ended March 31, 2025, revenues in the United States increased 3.2% to $688.5 million from $667.1 million in the first quarter of 2024, largely due to increased spending at certain large accounts in the region as well as revenues from our 2024 acquisitions.

Current wording

During the three and six months ended June 30, 2025, the United States continued to be our largest client location. During the three months ended June 30, 2025, revenues in the United States increased 7.2% to $710.0 million from $662.6 million in the second quarter of 2024, largely due to increased spending at certain large accounts in the region as well as revenues from our 2024 acquisitions. During the six months ended June 30, 2025, revenues in the United States increased to $1.398 billion as compared to $1.330 billion in the same period of the prior year.

Previous wording

The top three revenue contributing countries by client location in EMEA were the United Kingdom, Switzerland and Germany, generating $144.6 million, $104.9 million and $51.7 million in revenues, respectively, during the three months ended March 31, 2025. Revenues from clients in these three countries were $135.9 million, $98.4 million, and $50.5 million, respectively, in the corresponding period last year. Revenues in the first quarter of 2025 in the EMEA region were positively impacted by acquisitions completed in 2024 and increased spending at certain large accounts, partially offset by changes in foreign currency exchange rates.

Current wording

During the three months ended June 30, 2025, the top three revenue contributing countries by client location in EMEA were the United Kingdom, Switzerland and Netherlands, generating $149.6 million, $110.1 million and $57.1 million in revenues, respectively compared to $127.8 million, $101.3 million, and $45.1 million, respectively, in the corresponding period last year. During the six months ended June 30, 2025, the United Kingdom, Switzerland and Germany performed as EMEA’s top revenue generating locations and contributed $294.2 million, $214.9 million, and $108.1 million, respectively, compared to $263.7 million, $199.8 million, and $100.0 million, respectively, in the corresponding period last year. Revenues in the EMEA region were positively impacted by acquisitions completed in 2024, increased spending at certain large accounts and changes in foreign currency exchange rates during the three and six months ended June 30, 2025 as compared to the same periods in the previous year.

Previous wording

During the three months ended March 31, 2025, revenues from clients in the APAC region increased by $1.0 million or 4.3% mainly due to growth in the Life Sciences & Healthcare vertical compared to the corresponding period of 2024.

Current wording

During the three and six months ended June 30, 2025, revenues from clients in the APAC region increased by $3.1 million or 13.0% and $4.1 million or 8.7%, respectively, mainly due to growth in the Consumer Goods, Retail & Travel vertical compared to the corresponding periods of 2024.

Previous wording

During the three months ended March 31, 2025, cost of revenues (exclusive of depreciation and amortization) was $952.0 million representing an increase of 14.1% from $834.3 million in the corresponding period of 2024. The increase primarily resulted from the acquisitions of NEORIS and First Derivative in the fourth quarter of 2024 and salary increases and promotions for existing professionals in 2024, partially offset by government incentives totaling $12.1 million recognized in the first quarter of 2025 related to conducting R&D activities in Poland. Expressed as a percentage of revenues, cost of revenues (exclusive of depreciation and amortization) was 73.1% and 71.6% in the first quarter of 2025 and 2024, respectively. The year-over-year increase in the first quarter of 2025 as compared to the corresponding period of the prior year is primarily due to the 2024 compensation increases which we were not able to fully offset through pricing increasesandthe acquisitions completed in 2024, partially offset by the recognition of government incentives related to conducting R&D activities in Poland.

Current wording

During the six months ended June 30, 2025, cost of revenues (exclusive of depreciation and amortization) was $1.916 billion representing an increase of 16.5% from $1.645 billion in the corresponding period of 2024. The increase primarily resulted from the acquisitions of NEORIS and First Derivative in the fourth quarter of 2024 as well as higher levels of variable compensation expense during the first half of 2025 as compared to the corresponding period of 2024, partially offset by government incentives totaling $25.0 million recognized in the first six months of 2025 related to conducting R&D activities in Poland. Expressed as a percentage of revenues, cost of revenues (exclusive of depreciation and amortization) was 72.2% and 71.2% for the six months ended June 30, 2025 and 2024, respectively. The year-over-year increase is primarily due to the 2024 compensation increases which we were not able to fully offset through pricing increases, the acquisitions completed in 2024 and higher levels of variable compensation expense, partially offset by the recognition of government incentives related to conducting R&D activities in Poland.

Previous wording

During the three months ended March 31, 2025, selling, general and administrative expenses were $218.9 million representing a 10.3% increase as compared to $198.5 million in the corresponding period of 2024. The increase in selling, general and administrative expenses was mainly driven by the acquisitions of NEORIS and First Derivative completed in the fourth quarter of 2024. Expressed as a percentage of revenues, selling, general and administrative expenses decreased by 0.2% to 16.8% for the three months ended March 31, 2025 as compared to the same period from the prior year, primarily driven by the decrease in personnel-related costs as a percentage of revenues.

Current wording

During the three months ended June 30, 2025, selling, general and administrative expenses were $231.7 million representing a 19.4% increase as compared to $194.1 million in the corresponding period of 2024. The increase in selling, general and administrative expenses was mainly driven by the acquisitions of NEORIS and First Derivative completed in the fourth quarter of 2024 as well as higher levels of variable compensation expense during the second quarter of 2025 as compared to the corresponding period of 2024. Expressed as a percentage of revenues, selling, general and administrative expenses increased by 0.2% to 17.1% for the three months ended June 30, 2025 as compared to the same period from the prior year, primarily driven by an increase in severance partially offset by a decrease in personnel-related costs as a percentage of revenues.

Previous wording

During the three months ended March 31, 2025, depreciation and amortization expense was $31.4 million as compared to $22.1 million in the corresponding period last year. The increase in depreciation and amortization expense during the three months ended March 31, 2025 was primarily the result of increased amortization of acquired finite-lived intangible assets largely resulting from the acquisitions of First Derivative and NEORIS in 2024, partially offset by lower depreciation on furniture, fixtures, other equipment and computer hardware. Expressed as a percentage of revenues, depreciation and amortization expense increased to 2.5% during the three months ended March 31, 2025 as compared to 1.9% in the corresponding period of 2024.

Current wording

During the three and six months ended June 30, 2025, depreciation and amortization expense was $31.3 million and $62.7 million, respectively, as compared to $21.1 million and $43.3 million, respectively, in the corresponding periods last year. The increase in depreciation and amortization expense during the three and six months ended June 30, 2025 was primarily the result of increased amortization of acquired finite-lived intangible assets largely resulting from the acquisitions of First Derivative and NEORIS in 2024, partially offset by lower depreciation on furniture, fixtures, other equipment and computer hardware. Expressed as a percentage of revenues, depreciation and amortization expense increased to 2.4% during both the three and six months ended June 30, 2025 as compared to 1.9% in both corresponding periods of 2024.

Previous wording

Interest and other income, net include interest earned on cash and cash equivalents and short-term investments, gains and losses from certain financial instruments, interest expense related to our borrowings, and changes in the fair value of contingent consideration. Interest and other income, net was $5.8 million during the three months ended March 31, 2025 compared to $15.0 million during the three months ended March 31, 2024. The decrease in Interest and other income, net during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 was largely driven by a $12.1 million decrease in interest income from our cash, cash equivalents and short-term investments, partially offset by a $2.8 million gain from the change in fair value of contingent consideration.

Current wording

Interest and other income, net includes interest earned on cash and cash equivalents and short-term investments, gains and losses from certain financial instruments, interest expense related to our borrowings, and changes in the fair value of contingent consideration. Interest and other income, net was $3.5 million and $9.3 million during the three and six months ended June 30, 2025, respectively, compared to $12.0 million and $27.1 million during the three and six months ended June 30, 2024, respectively. The decrease in Interest and other income, net during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024 was largely driven by an $11.4 million decrease in interest income from our cash, cash equivalents and short-term investments, partially offset by a $1.7 million gain from the change in fair value of contingent consideration. The decrease in Interest and other income, net during the six months ended June 30, 2025 as compared to the three months ended June 30, 2024 was largely driven by a $23.5 million decrease in interest income from our cash, cash equivalents and short-term investments, partially offset by a $4.5 million gain from the change in fair value of contingent consideration.

Previous wording

During the year ended December 31, 2024, the Company revised its CODM report to enhance the presentation of segment expenses by category and to revise the allocation methodology for certain types of shared expenses. The following prior period amounts presented have been revised to align with the current year methodology. No changes were made to historically reported segment revenues.

Current wording

During the year ended December 31, 2024, the Company revised its CODM report to enhance the presentation of segment expenses by category and to revise the allocation methodology for certain types of shared expenses. The following prior period amounts presented have been revised to align with the current methodology. No changes were made to historically reported segment revenues.

Previous wording

The following table summarizes revenues from external clients and operating profit, before unallocated expenses, for the Americas segment for the three months ended March 31, 2025, and 2024:

Current wording

The following table summarizes revenues from external clients and operating profit, before unallocated expenses, for the Americas segment for the three and six months ended June 30, 2025, and 2024:

Previous wording

During the three months ended March 31, 2025, revenues for the Americas segment increased $72.4 million, or 10.3%, compared to the same period last year and segment operating profit decreased $4.9 million, or 4.1%, compared to the same period last year. Acquisitions contributed $80.0 million to Americas segment revenues during the three months ended March 31, 2025. During the three months ended March 31, 2025, revenues from our Americas segment were 59.7% of total segment revenues, a decrease from 60.5% reported in the corresponding period of 2024. As a percentage of Americas segment revenues, the Americas segment’s operating profit decreased to 14.8% during the first quarter of 2025 from 17.0% in the first quarter of 2024. This decrease is primarily attributable to the 2024 compensation increases which we were not able to fully offset through pricing increases as well as the impact of lower profitability from acquisitions completed in 2024, partially offset by the recognition of government incentives related to conducting R&D activities in Poland and improved utilization.

Current wording

During the six months ended June 30, 2025, revenues for the Americas segment increased $161.2 million, or 11.5%, compared to the same period last year and segment operating profit increased $2.5 million, or 1.0%, compared to the same period last year. Acquisitions contributed $145.2 million to Americas segment revenues during the six months ended June 30, 2025. During the six months ended June 30, 2025, revenues from our Americas segment were 58.9% of total segment revenues, a decrease from 60.7% reported in the corresponding period of 2024. As a percentage of Americas segment revenues, the Americas segment’s operating profit decreased to 15.6% during the six months ended June 30, 2025 from 17.3% in the six months ended June 30, 2024. This decrease is primarily attributable to the 2024 compensation increases which we were not able to fully offset through pricing increases, an increase in variable compensation expense as a percentage of segment revenues during the first six months of 2025 compared to the first six months of 2024 as well as the impact of lower profitability from acquisitions completed in 2024, partially offset by the recognition of government incentives related to conducting R&D activities in Poland and improved utilization.

Previous wording

During the three months ended March 31, 2025, Financial Services became the largest industry vertical in the Americas segment and increased 20.2% compared to the first quarter of 2024, benefiting from new revenues from clients gained through our 2024 acquisitions. Software & Hi-Tech grew 1.9% during the three months ended March 31, 2025, which was a result of the continued focus on engaging with our technology clients. Life Sciences & Healthcare grew 3.5% during the three months ended March 31, 2025, primarily due to increased demand from pharmaceutical and medical device companies. Consumer Goods, Retail & Travel declined 2.6% during the three months ended March 31, 2025, primarily due to declines from clients in the retail industry, partially offset by growth from our travel clients. Business Information & Media grew 6.1% during the three months ended March 31, 2025, primarily due to improvement in demand from clients in the publishing and entertainment sectors. Emerging Verticals grew 36.7% during the three months ended March 31, 2025, primarily due to revenues from clients gained through our 2024 acquisitions as well as growth from various clients in industries such as energy and telecommunications.

Current wording

During the three and six months ended June 30, 2025, Financial Services was the largest industry vertical in the Americas segment and grew 20.4% and 20.3%, respectively, compared to the corresponding periods of 2024, benefiting from new revenues from clients gained through our 2024 acquisitions. Software & Hi-Tech grew 12.5% and 7.1% during the three and six months ended June 30, 2025, respectively, which was a result of the continued focus on engaging with our technology clients. Life Sciences & Healthcare grew 3.6% and 3.5% during the three and six months ended June 30, 2025, respectively, primarily due to increased demand from pharmaceutical, medical device and healthcare companies. Consumer Goods, Retail & Travel grew 4.2% and 0.7% during the three and six months ended June 30, 2025, respectively, primarily due to growth from our travel clients. Business Information & Media grew 7.3% and 6.7% during the three and six months ended June 30, 2025, respectively, primarily due to improvement in demand from clients in the publishing and entertainment sectors. Emerging Verticals grew 29.9% and 33.3% during the three and six months ended June 30, 2025, respectively, primarily due to revenues from clients gained through our 2024 acquisitions as well as growth from various clients in industries such as energy and manufacturing.

Previous wording

The following table summarizes revenues from external clients and operating profit, before unallocated expenses, for the Europe segment for the three months ended March 31, 2025, and 2024:

Current wording

The following table summarizes revenues from external clients and operating profit, before unallocated expenses, for the Europe segment for the three and six months ended June 30, 2025, and 2024:

Previous wording

During the three months ended March 31, 2025, Europe’s segment revenues were $524.5 million, representing an increase of $63.8 million, or 13.8%, from the same period last year. Acquisitions completed in the prior 12 months contributed $50.6 million to Europe segment revenues during the three months ended March 31, 2025. Revenues were negatively impacted by changes in foreign currency exchange rates during the first quarter of 2025 and had our Europe segment revenues been expressed in constant currency terms using the exchange rates in effect during the first quarter of 2024, we would have reported revenue growth of 15.8%. Europe’s segment revenues accounted for 40.3% and 39.5% of total segment revenues during the three months ended March 31, 2025 and 2024, respectively. During the first quarter of 2025, the segment’s operating profit increased 19.6% to $71.3 million compared to the first quarter of 2024. Expressed as a percentage of revenues, Europe’s segment operating profit increased to 13.6% compared to 13.0% in the same period of the prior year. Segment operating profit as a percentage of revenues was positively impacted by the recognition of government incentives related to conducting R&D activities in Poland, changes in foreign exchange rates and results of Cost Optimization Programs combined with improved utilization.

Current wording

During the three months ended June 30, 2025, Europe’s segment revenues were $566.0 million, representing an increase of $118.1 million, or 26.4%, from the same period last year. Acquisitions completed in the prior 12 months contributed $58.4 million to Europe segment revenues during the three months ended June 30, 2025. Revenues were positively impacted by changes in foreign currency exchange rates during the second quarter of 2025 and had our Europe segment revenues been expressed in constant currency terms using the exchange rates in effect during the second quarter of 2024, we would have reported revenue growth of 21.3%. Europe’s segment revenues accounted for 41.8% and 39.1% of total segment revenues during the three months ended June 30, 2025 and 2024, respectively. During the second quarter of 2025, the segment’s operating profit increased 51.1% to $80.8 million compared to the second quarter of 2024. Expressed as a percentage of revenues, Europe’s segment operating profit increased to 14.3% compared to 11.9% in the same period of the prior year. Segment operating profit as a percentage of revenues was positively impacted by the recognition of government incentives related to conducting R&D activities in Poland, changes in foreign exchange rates and results of Cost Optimization Programs combined with improved utilization, partially offset by an increase in variable compensation expense as a percentage of segment revenues during the second quarter of 2025 compared to the second quarter of 2024.

Previous wording

During the three months ended March 31, 2025, Financial Services became the largest industry vertical in the Europe segment and increased 39.0% compared to the first quarter of 2024, benefiting from new revenues from clients that we gained as part of our 2024 acquisitions. During the three months ended March 31, 2025, revenues in Software & Hi-Tech increased 35.2%, primarily due to the expansion of services provided to one of our top 10 clients as well as the addition of several new clients in the past 12 months. During the three months ended March 31, 2025, revenues in Business Information & Media decreased 16.2%, primarily due to decreased demand from two clients who were historically included in our top-10 clients. Revenues in Life Sciences & Healthcare increased 56.7% during the three months ended March 31, 2025, primarily due to the growth experienced from clients in the pharmaceutical, medical devices and healthcare sectors. Revenues in Emerging Verticals increased 4.9% during the three months ended March 31, 2025, due to growth from various clients in industries such as energy, professional services and industrial materials. Emerging Verticals also benefited from new revenues from clients gained through our 2024 acquisitions.

Current wording

During the three and six months ended June 30, 2025, Financial Services was the largest industry vertical in the Europe segment and grew 48.6% and 43.8%, respectively, compared to the corresponding periods of 2024, benefiting from new revenues from clients that we gained as part of our 2024 acquisitions. During the three and six months ended June 30, 2025, revenues in Consumer Goods, Retail & Travel grew 7.9% and 3.7%, respectively, primarily due to improved demand from clients in the retail and consumer goods industries. During the three and six months ended June 30, 2025, revenues in Software & Hi-Tech grew 48.8% and 42.0%, respectively, primarily due to the expansion of services provided to one of our top 10 clients as well as the addition of several new clients in the past 12 months. During the three and six months ended June 30, 2025, revenues in Business Information & Media declined 6.2% and 11.6%, respectively, primarily due to decreased demand from two clients who were historically included in our top 10 clients. Revenues in Life Sciences & Healthcare grew 62.1% and 59.5%, respectively, during the three and six months ended June 30, 2025, primarily due to the growth experienced from clients in the pharmaceutical and medical devices sectors. Revenues in Emerging Verticals grew 27.0% and 15.6%, respectively, during the three and six months ended June 30, 2025, due to growth from various clients in industries such as energy, professional services and industrial materials. Emerging Verticals also benefited from new revenues from clients gained through our 2024 acquisitions.

Previous wording

Our cash generated from operations has been our primary source of liquidity to fund operations, to repurchase shares and make investments to support the growth of our business. As of March 31, 2025, our principal sources of liquidity were cash and cash equivalents totaling $1.174 billion, short-term investments totaling $3.5 million as well as $675.0 million of available borrowings under our revolving credit facility. See Note 8 “Debt” of our condensed consolidated financial statements in “Part I. Item 1. Financial Statements (Unaudited)” for information regarding our debt.

Current wording

Our cash generated from operations has been our primary source of liquidity to fund operations, to repurchase shares and make investments to support the growth of our business. As of June 30, 2025, our principal sources of liquidity were cash and cash equivalents totaling $1.041 billion, short-term investments totaling $5.0 million as well as $675.0 million of available borrowings under our revolving credit facility. See Note 8 “Debt” of our condensed consolidated financial statements in “Part I. Item 1. Financial Statements (Unaudited)” for information regarding our debt.

Previous wording

Our largest source of cash provided by operating activities is cash generated from our professional services that we provide to our clients. Our primary uses of cash from operating activities include compensation to our employees and related costs, payments for leased facilities, various general corporate expenditures and income tax payments. Since the invasion of Ukraine in 2022, our operating activities included using cash on humanitarian efforts for Ukraine and geographic repositioning of our workforce. The first three months of 2025 were negatively impacted by a larger increase in days sales outstanding compared to the first three months of 2024 and higher payments for variable compensation as compared to the first three months of 2024, attributable to a higher level of financial performance for the year ended December 31, 2024.

Current wording

Our largest source of cash provided by operating activities is cash generated from our professional services that we provide to our clients. Our primary uses of cash from operating activities include compensation to our employees and related costs, payments for leased facilities, various general corporate expenditures and income tax payments. Since the invasion of Ukraine in 2022, our operating activities included using cash on humanitarian efforts for Ukraine and geographic repositioning of our workforce. The first six months of 2025 were negatively impacted by a larger increase in days sales outstanding compared to the first six months of 2024 and higher payments for variable compensation as compared to the first six months of 2024, attributable to a higher level of financial performance for the year ended December 31, 2024.

Previous wording

Our primary uses of cash in investing activities consist of purchases of computer hardware, software and office equipment, as well as investments into office buildings and new businesses. We also use cash for short-term investments and time deposits and receive cash upon maturity of these deposits. Most of our investments are typically short-term and cash equivalent in nature but we may invest in longer term deposits if the terms are favorable. The cash used in investing activities during the three months ended March 31, 2025 was primarily attributable to $9.3 million used for capital expenditures compared to $6.7 million used for capital expenditures in the corresponding period of 2024. During the three months ended March 31, 2025, $3.3 million was provided by investing activities as a result of purchase price adjustments for the acquisitions of businesses compared to $44.1 million used for the acquisitions of businesses, net of cash acquired in the corresponding period of 2024.

Current wording

Our primary uses of cash in investing activities consist of purchases of computer hardware, software and office equipment, as well as investments into office buildings and new businesses. We also use cash for short-term investments and time deposits and receive cash upon maturity of these deposits. Most of our investments are typically short-term and cash equivalent in nature but we may invest in longer term deposits if the terms are favorable. The cash used in investing activities during the six months ended June 30, 2025 was primarily attributable to $19.2 million used for capital expenditures compared to $11.5 million used for capital expenditures in the corresponding period of 2024. During the six months ended June 30, 2025, $3.3 million was used for the acquisitions of businesses, net of cash acquired compared to $56.7 million used for the acquisitions of businesses, net of cash acquired in the corresponding period of 2024.

Previous wording

Cash used in financing activities mainly consists of repurchasing shares of EPAM common stock under our share repurchase programs, payments of withholding taxes related to net share settlements of restricted stock units, repayments of debt, and settlements of the acquisition-date fair value of contingent consideration related to acquisitions of businesses. Cash provided by financing activities mainly consists of the proceeds from the purchases of shares under our ESPP and exercises of stock options issued under our long-term incentive plans as well as proceeds from debt. We typically do not rely on debt to supplement our cash flows. During the first three months of 2025, our main use of cash in financing activities consisted of $160.0 million of payments to repurchase our common stock, compared to $120.6 million in the corresponding period of 2024. These cash outflows were partially offset by cash received from the exercises of stock options issued under our long-term incentive plans and proceeds from the purchase of shares under our ESPP of $19.5 million in the first three months of 2025, compared to $14.6 million received in the corresponding period of 2024.

Current wording

Cash used in financing activities mainly consists of repurchasing shares of EPAM common stock under our share repurchase programs, payments of withholding taxes related to net share settlements of restricted stock units, repayments of debt, and settlements of the acquisition-date fair value of contingent consideration related to acquisitions of businesses. Cash provided by financing activities mainly consists of the proceeds from the purchases of shares under our ESPP and exercises of stock options issued under our long-term incentive plans as well as proceeds from debt. We typically do not rely on debt to supplement our cash flows. During the first six months of 2025, our main use of cash in financing activities consisted of $354.9 million of payments to repurchase our common stock, compared to $335.1 million in the corresponding period of 2024. These cash outflows were partially offset by cash received from the exercises of stock options issued under our long-term incentive plans and proceeds from the purchase of shares under our ESPP of $34.6 million in the first six months of 2025, compared to $32.5 million received in the corresponding period of 2024.

Previous wording

We believe that our existing cash, cash equivalents and short-term investments, combined with our expected cash flow from operations will be sufficient to meet our projected operating and capital expenditure requirements for at least the next twelve months and that we possess the financial flexibility to execute our strategic objectives, including the ability to make acquisitions and strategic investments in the foreseeable future. However, the invasion of Ukraine, other various geopolitical events, and the related measures to contain their impact, have caused and may continue to cause material disruptions in financial markets and economies. These disruptions may increase our costs of capital, decrease returns on investment, and otherwise adversely affect our business, results of operations, financial condition and liquidity.

Current wording

We believe that our existing cash, cash equivalents and short-term investments, combined with our expected cash flow from operations will be sufficient to meet our projected operating and capital expenditure requirements for at least the next twelve months and that we possess the financial flexibility to execute our strategic objectives, including the ability to make acquisitions and strategic investments in the foreseeable future. However, the invasion of Ukraine, other various geopolitical events, and the related measures implemented to contain their impact, have caused and may continue to cause material disruptions in financial markets and economies. These disruptions may increase our costs of capital, decrease returns on investment, and otherwise adversely affect our business, results of operations, financial condition and liquidity.