Nagarro reports strong Q3 with 8.2% constant currency organic growth

Investing.com -- Nagarro SE on Friday delivered strong third-quarter results, with organic revenue growth of 3.7% year-over-year in Euro terms and 8.2% in constant currency.

The IT services company reported Q3 revenue of €254.6 million, representing a 5% increase compared to the same period last year. Profitability metrics showed even stronger improvement, with the gross profit margin expanding to 33.5%, up 160 basis points from the previous year.

Adjusted EBITDA reached €44 million in the quarter, jumping 27% year-over-year, while the adjusted EBITDA margin improved to 17.3% from 14.3% in Q3 2024. Net profit surged 68% to €21 million.

Cash flow metrics were also robust, with operating cash flow of €51 million compared to €37.3 million in the prior year. Cash conversion, measured as operating cash flow divided by adjusted EBITDA, improved to 116% from 108% in Q3 2024. Free cash flow increased to €46.5 million from €36.2 million.

The company maintained its previously adjusted full-year 2025 guidance, expecting revenue to reach the lower end of its €1,020-€1,080 million range. Nagarro continues to forecast a gross margin of approximately 30% and an adjusted EBITDA margin between 13.5% and 14.5%.

Nagarro’s workforce stood at 17,700 full-time employees at the end of Q3, representing a 1% decrease year-over-year. IT professionals, who make up the majority of the workforce, numbered 16,100, down 2% from the previous year but up 1% from the previous quarter.

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