Grid Dynamics Holdings, Inc.

Good afternoon, everyone. Welcome to Grid Dynamics' fourth quarter 2025 earnings conference call. I'm Cary Savas, Director of Branding and Communications. At this time, our participants are in listen-only mode. Joining us on the call today are CEO Leonard Lifshitz, CFO Anil Garadla, CTO Eugene Steinberg, COO Yuri Grislov, and SVP, Head of Americas Vasily Sizov. Following the prepared remarks, we will open the call to your questions. Please note that today's conference call is being recorded. Before we begin, I would like to remind everyone that today's discussion will contain forward-looking statements. This includes our business in a financial outlook and the answers to some of your questions. Such statements are subject to the risks and uncertainty as described in the company's earnings release and other filings with the SEC. During this call, we will discuss certain non-GAAP measures of our performance. GAAP to non-GAAP financial reconciliations and supplemental financial information are provided in the earnings press release and the 8K filed with the SEC. You can find all the information I just described in the investor relations section of our website. I now turn the call over to Leonard, our CEO.

Thank you, Kerry. Good afternoon, everyone, and thank you for joining us today. I'm delighted to share that Green Dynamics closed 2025 with another landmark performance. In the fourth quarter, we beat Wall Street expectations on both revenue and EBITDA, delivering record revenue of $106.2 million and a strong $13.7 million in non-GAAP EBITDA. Remarkably, we finished the full year with a record revenue of $411.8 million, which is 17.5% growth year-over-year. 1025 non-gap EBITDA was $53.8 million. In Q4, our top three customers, including two global technology companies and the largest payment technology company. All of them are leaders in the AI space. Our performance is a result of our AI expertise, the strengths of our accelerators, and client domain knowledge. In Q4, our AI revenue grew 9% over Q3 and now represents 25% of our overall revenue. For the full 2025, our AI revenue reached over $90 million, representing 30% year-over-year growth. In 2026, we anticipate continued AI revenue growth. There are three key factors driving our bullish outlook on AI. First, AI coding agents and automation significantly tilt enterprises built versus by calculus to rebuild at a lower cost. The shift aligns with great dynamics core strengths in building solutions for Fortune 1000 companies, leveraging specialized talents and intellectual property. Second, our efforts with GAIN are resulting in a richer blend of outcome and output-based engagements. Crucially, these new engagements enable us to decouple pricing from effort. We have successfully deployed software platforms across multiple industry verticals. Our AI engagements now strategically combine the strengths of our human capital with the value of our platform assets. The market reception for these software platforms has been strong, with customers demonstrating a clear willingness to pay. This positions us well to grow recurring revenue, deepen customer retention, and extend the duration of our engagements. Grid dynamics and engagement structure will contribute to our 2026 margin expansion. Third, the speed of AI transformation is not uniform across industry verticals. While we continue to generate revenue from the retail and CPG verticals, we prioritize investments in the area of technology, financial services, and manufacturing, where we see significant opportunities for customized, orderable, product-grade, agentic AI platform. Let me talk about grid dynamics vertical strengths. Enterprise are learning that deploying AI at scale requires deep domain expertise. We cannot build an effective agentic system for a production floor without understanding manufacture. You cannot build one for a global permit network without understanding the compliance architecture. Such expertise is what we have been building, vertical by vertical, for nearly two decades. Now we are codifying it into platforms. Our Merchandising Experience Platform, MXP, brings our expertise to marketplaces and digital commerce. While XTBP, our bi-temporal data platform, helps financial clients, specifically in capital markets, with auditability and other compliance challenges. Platforms unlike IP-driven outcome-based engagements, and that's how Great Dynamics moves from billing for effort to billing for value. Now let's talk about partnerships. Our partner-influenced revenue reached a significant milestone in 2025, exceeding 19% of our total revenue. Such significant growth underscores our mission to keep grid dynamics at the forefront of modern enterprise infrastructure. We have strengthened our relationship with all hyperscalers through targeted investments in agentic platform capabilities, earning specialized badges, and building new joint solutions. Notably, in December, we signed a strategic collaboration agreement with AWS for data foundations and AI. Our premier partnership enables Grid Dynamics to receive funding from AWS to support AI enterprise initiatives. Our collaboration with NVIDIA on omniverse-based solutions is enabling us to deliver high-fidelity, industrial-grade digital twins that are essential for our physical AI expansion. In the fourth quarter, our vertical execution is best illustrated by several notable projects. FinTech transformation. We partner with a global financial leader to launch a proprietary generative AI agent supporting more than 10,000 financial advisors. This interactive experience replaces static policies with personalized guidance and is projected to increase productivity by about 20%. TMT Analytics. For a global technology enterprise, we modernized a legacy mobility application into a scalable analytics platform, providing centralized visibility into global travel activity and spend. The platform has materially improved usability, increased feature velocity, and reduced stakeholder coordination overhead. Dispute Management. Financial governance. At a leading US-based global bank, we're building a global agent runtime and AI orchestration platform enabled business-focused agent to automate complex workflows, starting with successful automation in internal compliance. We also deployed AI-driven executive insight capabilities that provide leadership with consolidated global operational summaries. With that, Let me turn the call over to Eugene Steinberg, our CTO, who will talk about our AI capabilities, how we are upskilling our engineering workforce, and how we're using it to improve our internal operations. Eugene?

Thank you, Leonard. Good afternoon, everyone. We are actively executing across three horizons. AI-first engineering, agentic enterprise, and physical AI. In Q4, we shipped across all three. And these foundations position our AI business for 2026. Horizon 1 is the core of our current business. The engineering work that serves the majority of our clients today. We are accelerating productivity across the organization through AI-first native tooling and investing decisively in the continuous upskilling of our engineers. Enterprises are no longer debating the merits of adopting AI for software development, but rather how to do it without losing control of quality, security and institutional knowledge. It is in this context that we launched Rosetta, our AI-native software development framework. Rosetta is part of our GAIN initiative and provides a governance layer for AI coding agents. Rosetta automates context setup, enforces consistent workflows, and manages engineering knowledge at both the engineer and organization level. It operates within the client's own security perimeter and works across all major coding platforms. Developers get consistent, project-aware agent behavior from day one. Engineering leaders get centralized governance and visibility across the entire agent footprint. With Rosetta, clients benefit from decades of institutional expertise, seamlessly embedded into their engineering workflows. We have several engagements underway and are scaling GAIN as the standard delivery backbone across all engagements in 2026. Grid Dynamics Operations is client zero for our AI solutions. Cerebra, our internally developed agentic platform, launched in Q3. It is built on Google AI Stack, Gemini Enterprise, ADK, and A2A. Within Grid Dynamics, Cerebra is being used by our sales, recruitment, and knowledge management organizations, automating proposal development, technical prescreening, and research at scale. Clients adopt faster than the platform has already been test-tested in production. As AI revenues ramp, they expect this model to drive both revenue growth and margin expansion. Horizon 2 – Agentic Enterprise Horizon 2 is where we are expanding and investing by leveraging our engineering depth to enterprise transformation at scale. The agentic era is reshaping the economics of software delivery. AI-native development tools are lowering the overall cost of building and deploying software, placing pressure on systems integration and configuration programs. At the same time, client expectations are rising. Programs previously too expensive or too slow to justify are becoming feasible. Enterprises are thinking bigger and moving faster, taking on significantly larger mandates. That means moving away from SI-heavy engagements and towards original in-house engineering. That rotation plays directly to our strengths. In the past decade, enterprises have increasingly became dependent on system integration, assembling software-as-a-service ecosystems, configuring cloud services, and stitching together vendors' products. In the agentic era, this changes fundamentally. Production deployments require bespoke engineering, purpose-built agent workflows, domain-specific data and knowledge layers, distributed system and platform engineering. Grid Dynamics is well known for its engineering capabilities and proprietary IP at leading global enterprises. The agentic error rewards builders, and that is where we have invested. Our go-to-market runs two tracks. For Tier 1 enterprise clients, we architect and co-develop custom, verticalized AI platforms, built around their specific architecture, governance and compliance requirements. For Tier 2 mid-market clients, we integrate hyperscaler platforms with Grid Dynamics' verticalized components on top, optimizing time-to-value and overall cost. Both tracks are expanding. We have also established a partnership with Temporal through their Jumpstart program. This initiative positions us as technology consultants for Temporal's customers, embedded in crucial architectural decisions from the outset. This partnership has generated multiple new engagements across financial services, enterprise software and industrial sectors. The proof points are concrete. A notable example is our work with one of the world's largest payment networks, where we are leading a broad agentic AI program. We have developed a regulatory service across 17 applications, a universal enterprise assistant with agent-to-agent communication, and centralized governance and evaluation. Our efforts have led to an approximate 40% reduction in build time, and 60% reduction in ongoing maintenance effort. With a platform deployed across 30,000 employees, the impact has been measurable. Specialized groups are seeing up to 15% productivity improvement, driven by faster information access and reduced manual research. At a leading global CPG company, we developed over 20 enterprise-ready AI agents through a unified agent factory platform. This delivered 15% productivity improvement across enterprise users. These deployments confirm a pattern we see consistently. Once AI capabilities move fully in production, clients realize approximately 15% productivity gains, tangible operating leverage at enterprise scale. We are leveraging our deep domain expertise to build vertical AI platforms, codifying patterns into structured, productized offerings. Our initial solutions have real traction and are generating revenue with enterprise clients. MXP, our merchandising and product discovery platform, illustrates this progression most clearly. It began as search engineering expertise, evolved into a reusable accelerator, and in 2025 crossed into license revenue. with a growing customer base across North America, Europe and Latin America. Its deployment to a leading European luxury retailer delivered a 7% total revenue uplift and a 50% reduction in merchandising team workload, while handling a 25% year-over-year surge in peak holiday traffic without disruption. XTDB is our platform designed for the financial industry. a bitemporal database built specifically for regulated financial environments. As financial institutions deploy AI agents, regulators require full point-in-time reconstruction of any decision. Banks deploying AI agents for trade processing, compliance or investigations need systems that can capture precise information related to trading activities. XEDB addresses that with full auditability across both business time and system time. The platform has been adopted in several global banks, and in Q4 we shipped a significant new version extending its capabilities for multi-entity data mesh environments. It is this kind of deep infrastructure IP that differentiates our financial services practice from generic AI consulting. Our engineers no longer arrive as individual contributors. They arrive backed by codified IP – Rosetta, MXP, XTDB, and documented patterns from dozens of deployments. The client gets immediate expert deployment, not a learning curve. Horizon 3 – Physical AI Horizon 3 is our forward-looking investment in physical AI. bringing the same AI engineering depth they apply in software to industrial and manufacturing environment. Our flagship platform here is Incarno, a software platform that supports the robotics industry. Incarno dramatically compresses the time required to program robots for complex manufacturing tasks, enabling robots to handle high variability, physically demanding work that conventional automation cannot address. In partnership with SmartRay, a leader in industrial 3D vision sensors, we developed and deployed the Incarna AI model for robotic weld inspection. Weld inspection is demanding. Quality requirements are stringent and variability in materials and geometry makes rule-based automation unreliable. The result – higher inspection consistency, improved quality assurance and scalable automation in environments where precision is non-negotiable. At the Fortune 10 manufacturer, we automated the conversion of CAD files to CNC machine instructions. A workflow that previously took 5 days now completes in hours. Greater than 90% cycle time reduction, validated in production. We will have more to share as this program scales. As we look ahead, we will build on our foundations. We are rapidly and deliberately scaling towards a multi-industry, AI-led business transformation. GAIN and Rosetta codify our engineering judgment so it scales beyond individual engineers. MXP shows that our IP can generate revenue as software, not just as services. XTDB gives us a technically differentiated entry into finance. Incarno opens doors in manufacturing. And our agentic practice is shifting from bespoke delivery to structured vertical offerings where our accelerators compress time to value and our contracts increasingly capture outcomes. We are moving from labor-scale growth to IP-scale growth. And that transition defines our 2026 execution. With that, let me turn over to Anil.