GRID DYNAMICS HOLDINGS, INC.

Previous wording

•Revenues: Total revenues increased 3.7% year-over-year to $104.1 million, primarily driven by increased demand in our Technology, Media and Telecom vertical.

Current wording

•Revenues: Total revenues increased 7.0% year-over-year to $108.2 million, primarily driven by increased demand in our Technology, Media and Telecom vertical.

Previous wording

•Non-GAAP measures: Non-GAAP EBITDA was $12.5 million for the three months ended March 31, 2026, compared to $14.6 million in the prior-year quarter. Diluted Non-GAAP earnings per share was $0.09 per share, compared to $0.11 per share in the prior-year quarter.

Current wording

•Non-GAAP measures: Non-GAAP EBITDA was $14.7 million for the three months ended June 30, 2026, compared to $12.7 million in the prior-year quarter. Diluted Non-GAAP earnings per share was $0.11 per share, compared to $0.10 per share in the prior-year quarter.

Previous wording

Attracting and retaining top talent in key regions is vital to Grid Dynamics’ success and our ability to drive revenue growth. Our long-term prospects depend on recruiting qualified IT professionals who support a global delivery model across the Americas, Europe, and Asia. This geographic footprint allows us to provide clients with continuous development, US-based leadership, and specialized talent pools optimized for both quality and cost-efficiency. We seek to employ the appropriate professionals in locations to optimize our employee costs and expenses. Currently, the vast majority of our workforce consists of these highly skilled IT professionals.

Current wording

Attracting and retaining top talent in key regions is vital to Grid Dynamics’ success and our ability to drive revenue growth. Our long-term prospects depend on recruiting qualified IT professionals who support a global delivery model across the Americas, Europe, and Asia. This geographic footprint allows us to provide clients with continuous development, US-based leadership, and specialized talent pools optimized for both quality and cost-efficiency. We seek to employ the appropriate professionals in locations to optimize our employee costs and expenses. Currently, the vast majority of our workforce consists of these highly skilled IT professionals. We increasingly prioritize experienced senior talent over volume staffing to handle the complexity of production-grade infrastructure required for AI implementations.

Previous wording

As most of Grid Dynamics’ customer projects are performed and invoiced on a time and materials basis, Grid Dynamics’ management tracks and projects billable hours as an indicator of business volume and corresponding resource needs for IT professionals. To maintain its gross profit margins, Grid Dynamics must effectively utilize its IT professionals, which depends on its ability to integrate and train new personnel, to efficiently transition personnel from completed projects to new assignments, to forecast customer demand for services and to attract and deploy personnel in the right regions with appropriate skills and seniority to projects. Grid Dynamics’ management generally tracks utilization with respect to subsets of employees, by location or by project, and calculates the utilization rate for each subset by dividing (x) the aggregate number of billable hours for a period by (y) the aggregate number of total available hours for the same period. Grid Dynamics’ management analyzes and projects utilization to measure the efficiency of its workforce and to inform management’s budget and personnel decisions.

Current wording

Currently, a majority of Grid Dynamics’ customer projects are performed and invoiced on a time and materials basis, although as part of our strategy, an increasing number of projects are performed on a fixed-price basis. Grid Dynamics’ management tracks and projects billable hours as an indicator of business volume and corresponding resource needs for IT professionals. To maintain its gross profit margins, Grid Dynamics must effectively utilize its IT professionals, which depends on its ability to integrate and train new personnel, to efficiently transition personnel from completed projects to new assignments, to forecast customer demand for services and to attract and deploy personnel in the right regions with appropriate skills and seniority to projects. With respect to fixed-price projects, Grid Dynamics must accurately project the time and other costs associated with project performance. Grid Dynamics’ management generally tracks utilization with respect to subsets of employees, by location or by project, and calculates the utilization rate for each subset by dividing (x) the aggregate number of billable hours for a period by (y) the aggregate number of total available hours for the same period. Grid Dynamics’ management analyzes and projects utilization to measure the efficiency of its workforce and to inform management’s budget and personnel decisions.

Previous wording

Grid Dynamics’ ability to retain and expand its relationships with existing customers and add new customers are key indicators of its revenue potential. New customers have a direct impact on the Company’sability to diversify sources of revenue and replace customers that may no longer require its services. The total number of customers for thethree months ended March 31, 2026 was 183 customers, a decrease from 204 a year ago.

Current wording

Grid Dynamics’ ability to retain and expand its relationships with existing customers and add new customers are key indicators of its revenue potential. New customers have a direct impact on the Company’sability to diversify sources of revenue and replace customers that may no longer require its services. The total number of customers for thesix months ended June 30, 2026 was 213 customers, a slight increase from 211 a year ago.

Previous wording

Grid Dyna mics has a relatively high level of revenue concentration with certain customers and constantly works toward achieving a more diversified revenue mix. During each of the three months ended March 31, 2026 and 2025, one customer accounted for 10% or more of Grid Dynamics’ revenues. The Company expects to continue its focus on maintaining long-term relationships with customers while diversifying its customer base.

Current wording

Grid Dyna mics has a relatively high level of revenue concentration with certain customers and constantly works toward achieving a more diversified revenue mix. During each of the three and six months ended June 30, 2026 and 2025, one customer accounted for 10% or more of Grid Dynamics’ revenues. The Company expects to continue its focus on maintaining long-term relationships with customers while seeking to diversify its customer base.

Previous wording

The following table presents revenue concentration by amount and as a percentage of Grid Dynamics’ revenues for the periods indicated:

Current wording

The following tables present revenue concentration by amount and as a percentage of Grid Dynamics’ revenues for the periods indicated:

Previous wording

We have no way to predict the progress or outcome of the military action in Ukraine, as the conflict and government responses continue to develop and even worsen and are beyond our control. The prolonged unrest, military activities, expansion of hostilities, or broad-based sanctions could have a material adverse effect on our operations and business outlook. For example, if Russia were to invade other countries, such as Moldova, it could adversely affect our business. In addition, the current geopolitical situations in Armenia, and separately in Serbia create additional uncertainty in the region, and could adversely affect our business.

Current wording

We have no way to predict the progress or outcome of the military action in Ukraine, as the conflict and government responses continue to develop or worsen and remain beyond our control. Prolonged unrest, military activities, expansion of hostilities, or broad-based sanctions could have a material adverse effect on our operations and business outlook. For example, if Russia were to invade other countries, such as Moldova, it could adversely affect our business. In addition, the current geopolitical situations in Armenia, and separately in Serbia create additional uncertainty in the region, and could adversely affect our business.

Previous wording

The three months ended March 31, 2026 compared to the three months ended March 31, 2025

Current wording

The three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025

Previous wording

The Healthcare and Pharma vertical generated $2.2 million of revenues for the three months ended March 31, 2026, representing 2.1% of total revenues. This compares to $2.4 million, or 2.4% of total revenues, in the corresponding period of 2025.

Current wording

•Healthcare and Pharma generated $2.1 million and $4.3 million of revenues for the three and six months ended June 30, 2026, representing 1.9% and 2.0% of total revenues, respectively. This compares to $2.6 million and $5.0 million, or 2.5% of total revenues in both periods of 2025.

Previous wording

Cost of revenues was $67.9 million for the three months ended March 31, 2026, an increase of $4.5 million, or 7.0%, compared to $63.4 million in the same period of 2025. The increase in cost of revenues reflected our continued investment in delivery to support growing customer demand.

Current wording

During the three months ended June 30, 2026, our cost of revenues was $68.5 million, an increase of $2.0 million, or 2.9%, compared to $66.6 million in the corresponding period of 2025. For the six months ended June 30, 2026, cost of revenues increased by $6.4 million, or 4.9%, reaching $136.4 million, compared to $130.0 million in the prior-year period. The increase in cost of revenues in both periods reflected our continued investment in delivery to support growing customer demand.

Previous wording

During the three months ended March 31, 2026, sales and marketing expenses were $7.7 million, a decrease of $0.6 million, or 6.8%, from $8.3 million in the corresponding period of 2025. Expressed as a percentage of revenues, sales and marketing expenses were 7.4% compared to 8.2% in the prior year period. The decline primarily reflected operating leverage and cost optimization initiatives of sales and business-development functions.

Current wording

During the three months ended June 30, 2026, our sales and marketing expenses were $7.1 million, flat compared to the prior-year quarter. For the six months ended June 30, 2026, sales and marketing expenses were $14.8 million, a decrease of $0.6 million, or 3.6%, compared to $15.4 million in the prior-year period. Expressed as a percentage of revenues, sales and marketing expenses decreased to 6.6% and 7.0% for the three and six months ended June 30, 2026, respectively, compared to

Previous wording

General and administrative expenses increased 7.6% to $26.1 million for the three months ended March 31, 2026, compared to $24.3 million in the prior-year period. The increase was primarily driven by higher professional fees associated with potential acquisitions and increased facility and IT-related expenses, partially offset by cost optimization initiatives of operational functions.

Current wording

General and administrative expenses increased 19.4% to $24.8 million for the three months ended June 30, 2026, compared to $20.8 million in the prior-year period. For the six months ended June 30, 2026, general and administrative expenses totaled $50.9 million, an increase of 13.1% from $45.1 million in the same period of 2025. The increase was primarily driven by higher restructuring costs, professional fees associated with potential acquisitions, and increased facility and IT-related expenses, partially offset by lower compensation costs, including stock-based compensation expenses.

Previous wording

Expressed as a percentage of revenues, general and administrative expenses increased, reaching 25.1% for the three months ended March 31, 2026, compared to 24.2% for the corresponding period in 2025.

Current wording

Expressed as a percentage of revenues, general and administrative expenses were 22.9% and 24.0% for the three and six months ended June 30, 2026, compared to 20.5% and 22.4% for the corresponding periods in 2025, respectively.

Previous wording

During the three months ended March 31, 2026, we recognized income tax expense of $1.0 million, compared to income tax benefit of $0.4 million in the same period of 2025. The change in the tax provision was primarily attributable to a shift from pre-tax income in the prior year period to a pre-tax loss in the current period, higher tax expense for stock-based compensation, and additional tax expense related to prior year state tax returns.

Current wording

During the three months ended June 30, 2026, we recognized income tax expense of $1.6 million, compared to $2.0 million expense in the same period of 2025. During the six months ended June 30, 2026, we recognized income tax expense of $2.6 million, compared to $1.6 million in the same period of 2025. The change in the tax provision was primarily attributable to a higher tax expense for stock-based compensation, and additional tax expense related to prior year state tax returns.

Previous wording

The following table presents the reconciliation of Grid Dynamics’ Non-GAAP EBITDA to its GAAP net income/(loss), the most directly comparable GAAP measure, for the periods indicated:

Current wording

The following table presents the reconciliation of Grid Dynamics’ Non-GAAP EBITDA to its GAAP net income, the most directly comparable GAAP measure, for the periods indicated:

Previous wording

(3)Our restructuring costs are comprised of severance charges and respective taxes, and are included in general and administrative expenses in the Company’s unaudited condensed consolidated statements of income/(loss).

Current wording

(3)Our restructuring costs include severance benefits and related employer taxes, as well as facility-related exit costs. These charges are presented within general and administrative expenses in the Company’s unaudited condensed consolidated statements of income.

Previous wording

The following table presents a reconciliation of Grid Dynamics’ Non-GAAP diluted EPS and its Non-GAAP net income to its GAAP net income/(loss) for the periods indicated:

Current wording

The following table presents a reconciliation of Grid Dynamics’ Non-GAAP diluted EPS and its Non-GAAP net income to its GAAP net income for the periods indicated:

Previous wording

(3)Our restructuring costs are comprised of severance charges and respective taxes, and are included in general and administrative expenses in the Company’s unaudited condensed consolidated statements of income/(loss).

Current wording

(3)Our restructuring costs include severance benefits and related employer taxes, as well as facility-related exit costs. These charges are presented within general and administrative expenses in the Company’s unaudited condensed consolidated statements of income.

Previous wording

As of March 31, 2026, Grid Dynamics had cash and cash equivalents amounting to $327.5 million compared to $342.1 million at December 31, 2025. Of these amounts, $49.0 million and $48.4 million, respectively, were held outside the United States, and included Switzerland, the U.K., India, Netherlands, Mexico, Moldova, Armenia, Argentina, Poland, and other countries. We did not have any debt outstanding under the revolving credit facility as of March 31, 2026. We believe that our cash and cash equivalents balance, cash generated from operating activities and proceeds from our November 2024 offering will be sufficient to fund currently expected levels of operating, investing and financing expenditures for a period of twelve months from the date of this filing. However, if our resources are insufficient to satisfy our cash requirements, we may need to seek additional equity or debt financing, which may be subject to conditions outside of our control and may not be available on terms acceptable to our management or at all.

Current wording

As of June 30, 2026, Grid Dynamics had cash and cash equivalents amounting to $298.4 million compared to $342.1 million at December 31, 2025. Of these amounts, $50.4 million and $48.4 million, respectively, were held outside the United States, and included Switzerland, the U.K., India, Netherlands, Mexico, Moldova, Poland, Armenia, Argentina, and other countries. We did not have any debt outstanding under the revolving credit facility as of June 30, 2026. We believe that our cash and cash equivalents balance, cash generated from operating activities and proceeds from our November 2024 offering will be sufficient to fund currently expected levels of operating, investing and financing expenditures for a period of twelve months from the date of this filing. However, if our resources are insufficient to satisfy our cash requirements, we may need to seek additional equity or debt financing, which may be subject to conditions outside of our control and may not be available on terms acceptable to our management or at all.

Previous wording

Operating Activities. Net cash provided by operating activities was $8.4 million for the three months ended March 31, 2026, compared to $9.4 million in the prior-year quarter. The $1.0 million decrease was primarily driven by changes in working capital, specifically regarding the timing of payments to vendors and settlement of employee-related liabilities.

Current wording

Operating Activities. Net cash provided by operating activities was $14.5 million for the six months ended June 30, 2026, compared to $23.7 million in the prior-year period. The $9.2 million decrease was primarily driven by working capital fluctuations, including the timing of customer collections, vendor payments, and settlement of employee-related liabilities.