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Item 1. Business

2026-03-05 compared with 2025-02-27 · 261 added, 170 removed, 32 unchanged (93% of the section changed)

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Grid Dynamics Holdings, Inc.

(“Grid Dynamics,” the “Company,” “we,” “us,” or “our”) is a leading provider of technology consulting, platform and product engineering, and advanced analytics services.

Fusing technical vision with business acumen, we enable positive business outcomes for enterprise companies undergoing business transformation by solving their most pressing technical challenges.

A key differentiator for Grid Dynamics is our 8+ years of experience and leadership in enterprise artificial intelligence (“AI”), supported by profound expertise and ongoing investment in cloud, data, advanced analytics, and customer experience.

Additional market differentiators include:

• a culture of engineering excellence, R&D investment, and innovation in groundbreaking technologies before they become ubiquitous;

• a co-innovation model with continuous knowledge-sharing throughout delivery that reduces implementation risk and time-to-value, and enables enterprises to build in-house capabilities, retain control of proprietary technology and data, and benefit from the adoption of new technologies;

• a global footprint, and a “Follow-the-Sun” delivery model, bolstered by engineering talent driven by innovation and technical mastery, resulting in transformational business outcomes.

Established in 2006 and headquartered in Silicon Valley, Grid Dynamics partners with clients ranging from innovative start-ups to the largest companies in the world.

Grid Dynamics believes the key to its success is a culture encouraging an unwavering “whatever it takes” dedication that puts client success over contract terms, products over projects, and real business results over pure technical innovation.

With our proprietary processes optimized for innovation, emphasis on talent development, and technical expertise, Grid Dynamics is well-positioned for continued success.

Grid Dynamics has offices across the U.S., Mexico, Argentina, Jamaica, the U.K., other European countries, and India.

During the last four years, Grid Dynamics acquired Mobile Computing S.A.

(“Mobile Computing”), JUXT Ltd.

(“JUXT”), NextSphere Technologies Inc.

(“NextSphere”), Mutual Mobile Inc.

(“Mutual Mobile”), and Tacit Knowledge Inc.

These acquisitions diversified our geographical presence, client base, and industry vertical presence.

Industry Background and Market Opportunity

Digital transformation is a rapidly expanding market that is still in its early stages.

Enterprises strive to compete in the digital world, facing the need to transform to survive attacks from the nimbler and more technologically advanced newcomers.

Traditional approaches to managing information technology as a mix of vendor solutions and outsourced services often break down in the face of the imperative to innovate through technology.

Increasingly, business executives are looking at the use of technology as a competitive advantage rather than a way to cut costs with software-defined capabilities becoming the essence of the business capabilities.

The rise of AI signifies a shift from the automation of business processes to the automation of decision-making itself.

To differentiate, corporations are directing investments toward building new digital products and experiences, instead of buying off-the-shelf software products and entire business underpinning platforms.

This drives demand for highly technical software development, creating an opportunity for pure-play platform engineering and software development service providers such as Grid Dynamics.

Sophisticated and scalable software platforms developed and continuously adapted to enterprise needs propelled many of today's most successful companies.

Their unique business approaches and ability to move fast in adapting to changing market conditions allowed them to develop strong market positions and maintain defense against competitors.

Grid Dynamics is well-placed as a strategic partner of choice for these opportunities.

Our focus on the foundation of excellence in platform and software engineering enables the level of collaboration that only a few can offer.

Grid Dynamics has offices across Europe, India, and the Americas.

As the key drivers of our “Follow-the-Sun” model of engineering excellence, these geographies enable the acceleration of valuable business outcomes for our clients.

Our teams and programs are organized and orchestrated for continuous integration, self-sufficiency, and maximum business impact across regions.

Another strategic advantage of our “Follow-the-Sun” approach is that these geographies grow technology markets with large talent pools of highly skilled technical talent and cost-efficient scalability due to their large and well-recognized university

infrastructures — a valuable asset for fueling our internship programs and attracting top talent.

As we expand our geographical reach, we are also investing in developing a multi-discipline approach to address the challenges facing our clients.

This involves developing hybrid team capabilities focused on end-to-end problem-solving.

Strategies and Strengths

Grid Dynamics’ objective is to become a global leader in enabling digital transformation at Fortune 1000 companies.

Grid Dynamics’ strategy to achieve such objective is based on leveraging the following core strengths:

• Proprietary Processes Optimized for Innovation

Grid Dynamics recognizes the changing dynamics of the IT services space.

Increasingly, corporations expect their service providers to participate in and help shape innovation programs.

This leads to the development of next-level capabilities that traditional service models, used by the traditional outsourcing providers, fail to address effectively.

Grid Dynamics melds technical consulting, platform and product engineering, and analytics competencies into unified, cross-functional digital teams that are designed to respond and adapt to changes in a client’s business.

The effectiveness of such teams is further increased by close collaboration with a client’s technology and business leadership teams and active inquiry into a client’s business priorities on all levels.

• Culture-First Approach to Talent Development

The ever-increasing role of digital transformation leads to the emergence of a new kind of business leader who combines a vision of business transformation with a deep understanding of possibilities brought together by modern digital technology.

Earning the trust of these leaders is one of the pillars of Grid Dynamics’ success.

Grid Dynamics selects, trains, and promotes its leadership based on the following cultural principles:

• Global integration .

Demands of modern businesses transcend cultural and language boundaries.

Grid Dynamics builds teams that are transparently distributed across countries, time zones, and reporting lines.

• Partnership with client .

Grid Dynamics demands accountability and ownership of a client’s success, whether or not such success is a contractual matter.

Understanding the goals of Grid Dynamics’ clients and the ability to manage such goals across reporting lines are a must for any leadership role within Grid Dynamics.

• Technological innovation .

Understanding digital transformation and successfully delivering strategic programs are impossible without a strong understanding of emerging technology.

Deep knowledge of how new technology, such as cloud, big data, and AI, transforms the way corporations develop their businesses is a prerequisite for leadership roles in Grid Dynamics.

• Education .

Grid Dynamics believes that technology changes rapidly, and Grid Dynamics' employees must adapt even more rapidly.

Grid Dynamics offers many formal and informal training programs, such as Grid University, an online education platform with thousands of hours of training videos, to ensure that professionals can expand and enhance their capabilities.

• Technical Expertise and Scalable Engineering

Grid Dynamics believes in great engineering underpinning mission-critical services.

From its inception, Grid Dynamics has built its engineering DNA with a focus on emerging technologies, leading with AI and generative AI, data engineering, cloud and microservices, DevOps and AIOps, modern front-end technologies, and QA automation.

By making advanced technology accessible to clients through experience and know-how, industry solutions, and accelerators, Grid Dynamics strengthens its position as a strategic technology partner with existing clients and attracts new clients.

In today’s engineering and IT services market, customers are increasingly looking for service providers that can be co-innovation partners rather than an implementation agency or a cost-saving measure.

Grid Dynamics addresses this need by focusing on four high-value, high-impact service areas:

(“Grid Dynamics,” the “Company,” “we,” “us,” or “our”) is an Enterprise Artificial Intelligence (“AI”) transformation partner for the Fortune 1000.

We combine deep AI expertise with proven enterprise-scale delivery to help clients identify where to invest in AI, deliver systems that work at scale, and capture real business value from AI deployments.

The building blocks of AI have always been our foundation — distributed systems, real-time data, machine learning algorithms, and natural language processing.

What has changed is that these capabilities have now converged into Enterprise AI.

This technical heritage is matched with business acumen.

We solve the most pressing technical challenges and enable positive business outcomes for enterprise companies.

A key differentiator is our nearly two decades of technology leadership and pioneering enterprise AI expertise.

This is supported by deep capabilities and ongoing investment in data and machine learning platform engineering, cloud platform and product engineering, Internet of Things (“IoT”) and edge computing, and digital engagement services.

Founded in 2006, Grid Dynamics is headquartered in Silicon Valley with offices across the Americas, Europe, and India.

Industry Background and Grid Dynamics Strategic Differentiators

Grid Dynamics serves as the strategic architect and technical expert for Fortune 1000 companies transitioning into AI-driven enterprises.

As the industry moves from automating business processes to automating decision-making itself, we provide the specialized engineering required to navigate this shift.

Enterprises are increasingly moving away from off-the-shelf software toward custom-engineered solutions that leverage proprietary data, specific business processes, and competitive differentiators.

This evolution drives significant demand for partners that can deliver AI implementations that work at enterprise scale and provide a measurable return on investment.

Our market position is defined by several key strategic differentiators:

• Preference for AI-Native Partners Over Generalist Consultancies

Enterprises increasingly seek partners with deep-rooted AI capabilities rather than general-purpose firms attempting to pivot into the space.

Grid Dynamics, as an AI-native firm, is built upon a twenty-year track record of engineering the complex systems that now define Enterprise AI.

In addition to those investments and training specialized talent, we have gained experience and insights from complex deployments at Fortune 1000 companies.

We have developed over 40 pre-built, production-ready solution accelerators across AI, data platforms, and cloud engineering.

This accumulated knowledge — ranging from technical architecture patterns to change management — compresses time-to-value that we believe provides us with a competitive advantage.

• Restructuring of the IT Services Workforce

The traditional IT services pyramid, which relied on large pools of junior developers, is being fundamentally restructured.

Modern AI implementations require the inverse:

senior engineers and data scientists who can design sophisticated systems and work alongside AI agents to increase productivity.

We believe this structural shift provides us with a competitive advantage, as we prioritize experienced senior talent over volume staffing to handle the complexity of production-grade infrastructure.

• Engineering Mastery for the Agentic AI Age

The emergence of Agentic AI — systems where multiple AI agents collaborate autonomously to complete complex business processes — represents the next enterprise inflection point.

Agentic AI systems must coordinate across workflows, maintain state, handle failures, and operate reliably at scale.

Organizations attempting to deploy agentic systems without this foundation encounter the same reliability and scalability challenges associated with distributed enterprise software.

Grid Dynamics’ strengths in distributed computing, fault-tolerant design, and high-performance enterprise systems directly address these challenges.

The engineering disciplines that enable real-time commerce and mission-critical cloud platforms are essential for production-grade agentic AI.

• Rigorous Focus on ROI and Business Outcomes

Return on investment (“ROI”) has become a primary decision criterion for AI initiatives.

Enterprises are moving past experimentation toward projects that deliver demonstrable value, such as increased revenue, reduced costs, or improved customer satisfaction.

At Grid Dynamics, we tie AI implementations to concrete business outcomes through value measurement frameworks and possess the engineering depth to deliver systems at a global enterprise scale.

• Strategic Ecosystem Partnerships

Our strategic partnerships with major hyperscale cloud providers and leading platform AI companies are key to our enterprise strategy.

These relationships are co-development partnerships that give us and our clients privileged access to emerging capabilities, accelerated innovation cycles, and solutions that leverage best-in-class technologies.

Our partnerships facilitate enhanced joint solution development and co-selling opportunities, helping our clients employ and scale AI using the most advanced infrastructure available.

The capabilities from these providers are then integrated, customized, and optimized for each enterprise’s specific needs.

• Solving the Production “ Bottleneck ”

We believe that the primary obstacle to further widespread AI adoption is not the models themselves, but the surrounding engineering:

integration, observability, governance, and cost control.

Our approach combines strategic advisory services with hands-on engineering to address these realities.

By combining deep enterprise context with technical prowess, we help Fortune 1000 companies move from AI pilot programs to industrial-grade execution.

At Grid Dynamics, our strategic approach combines world-class engineering discipline with a specialized AI-native framework, enabling global enterprises to deploy business-driven solutions at scale.

We serve as a strategic technology partner, providing the architecture and technical rigor required to transform complex challenges into competitive advantages.

• The GAIN Engagement Model

Our strategic foundation is the Grid Dynamics AI-Native (“GAIN”) engagement model.

This model provides a development framework for software delivery in the AI era, which fundamentally rethinks team composition, engineering workflows, and delivery practices.

The GAIN model represents a shift from effort-based development to AI and human collaboration optimized for global, enterprise-scale delivery, with emphasis on domain specialists, software architects, and experts in emerging technology.

This model addresses three critical enterprise challenges:

identifying where to invest in AI, delivering systems that work at scale, and capturing business value from AI deployments.

We enable AI-powered transformation in several areas including:

• Digital labor:

Deploying AI agents that augment and automate the workforce.

• Enhanced customer experience:

Creating customer-facing AI that drives engagement.

• New revenue streams:

Developing AI-enabled products, services, and capabilities.

• Reduced risk:

Implementing fraud detection, compliance, quality control, and safety systems.

• Co-Creation Strategy

We recognize that meaningful innovation requires service providers to help shape, not just execute, innovation programs.

Grid Dynamics utilizes a co-creation model that integrates our senior-weighted engineering talent directly into client teams.

This approach involves working side-by-side in technical, project, and program management, ensuring continuous knowledge transfer.

As projects progress, clients gain the internal expertise to manage new skills and roles, supported by our digital transformation blueprints and industry accelerators.

• Accountability Through Value Measurement

Our approach anchors engagements to tangible business results rather than just resource allocation.

Our Value Measurement Framework utilizes dashboards to provide stakeholders with clarity through integrated KPIs, progress updates, and satisfaction reviews.

This customer-focused methodology helps ensure predictable quality, speed, and cost from initial concept to full-scale enterprise deployment.

• Strategic Ecosystem and Global Scale

Our technological expertise is enhanced by a senior-weighted workforce focused on Fortune 1000 companies and a comprehensive partnership ecosystem.

Collaboration with hyperscalers, including Google Cloud, AWS, Microsoft Azure, and AI leaders like NVIDIA and Temporal Technologies, creates a flywheel effect that accelerates sales cycles and enables differentiated solutions.

These partnerships contributed over 19% of our revenue in the year ended December 31, 2025.

With a global delivery model, we provide continuous development with U.S.-based leadership while optimizing for both quality and cost efficiency.

Our strategic acquisitions of JUXT Ltd.

(“JUXT”) in the United Kingdom and Mobile Computing S.A.

(“Mobile Computing”) in Argentina in 2024 further strengthened our market position and expanded our addressable opportunities across Europe and the Americas.

Services and Solutions

Grid Dynamics delivers comprehensive services across the full spectrum of digital transformation.

We focus on areas where AI, data, and cloud technologies create the most value.

Our services are organized around client business outcomes rather than technical silos, ensuring our solutions address strategic priorities.

• Artificial Intelligence Services

Our AI services help enterprises move from experimentation to measurable impact through a four-stage process:

prepare for AI readiness, identify high-value use cases, deliver robust infrastructure, and scale across the enterprise.

• AI-Readiness:

We establish the foundation for successful AI adoption through strategy consulting, data modernization, rapid and deployment-ready prototyping, and Software Development Lifecycle (“SDLC”) transformation, helping enterprises break the cycle of pilot programs that never reach deployment.

• Identify AI Use Cases:

We deploy AI across customer-facing, operational, and knowledge management scenarios.

Applications span intelligent customer interactions that reduce costs while improving satisfaction, predictive AI for demand forecasting and operational optimization, autonomous workflows that complete complex multi-step processes without human intervention, knowledge systems that surface institutional expertise on demand, and generative capabilities that accelerate content creation, visual design, and document processing.

Each implementation targets specific revenue, efficiency, or experience outcomes across industries.

• Robust AI Infrastructure:

We deliver platforms that industrialize AI at scale.

This includes agentic systems that autonomously execute business processes, orchestration layers that coordinate multiple AI models and workflows, production-grade management of large language models, unified semantic foundations for enterprise data, and AI-native development approaches throughout the software lifecycle.

These capabilities enable enterprises to deploy AI with security, governance, and reliability.

• Enterprise AI Scale:

We help enterprises gain enterprise-wide efficiency with deployment expertise gained from implementations across diverse industries and use cases.

After establishing AI capabilities in one area, we help organizations expand to other business units, geographies, and use cases while maintaining governance and quality standards.

• Cloud Platform and Product Engineering

Our Cloud Platform and Product Engineering practice provides innovative services that enable businesses to harness the power of cloud computing and modern application development methodologies.

We specialize in architecting, designing,

and building scalable, secure, and resilient cloud-based platforms and business applications that power digital transformation and business agility.

Our expertise in platform engineering, cloud migration and modernization, DevTestSecOps, microservices, and serverless architecture helps organizations generate more revenue, reduce costs, improve time to value, and enhance performance.

By leveraging our services, customers can partner with Grid Dynamics to drive focus on innovation and growth using the latest advancements in platform engineering and product development.

• AI/ Machine Learning and Data Platform Engineering

Our AI/Machine Learning and Data Platform Engineering practice offers specialized services that empower businesses to unlock the full potential of their structured and unstructured data.

Our team of experts builds robust, scalable platforms that facilitate batch and streaming data ingestion, quality, governance, orchestration, semantic modeling, observability, and analysis at scale.

By applying advanced artificial intelligence, machine learning algorithms, and analytics, we help companies derive actionable insights, predict trends, accelerate operations, and make data-driven decisions in the areas of pricing, promotions, customer experience, risk management, and supply chain that drive competitive advantage.

Our approach to data engineering and advanced analytics ensures that our customers have a solid technology foundation to support their evolving data needs and democratize it across the enterprise — enabling them to leverage their data assets for maximum impact.

We modernize legacy systems and deliver cloud-native platforms that enable continuous delivery and operational excellence.

Our services span application migration and re-architecture, AI-native SDLC, platform engineering, DevOps and AIOps automation, quality assurance (“QA”) automation, observability and site reliability engineering, and FinOps.

We emphasize development that leverages cloud platforms for resilience, scalability, and automation while integrating AI capabilities from design through deployment.

• Digital Engagement

Our Digital Engagement practice focuses on creating meaningful interactions between businesses and their customers through all digital channels.

We design and implement digital ecosystems that enhance customer experiences, foster brand loyalty, and drive business growth.

Our expertise in digital commerce, user experience design and mobile application engineering, computer vision, deep learning, neural search, generative AI, and large language models, enables organizations to engage with their audience more effectively across multiple touchpoints.

We co-innovate with clients and prioritize customer-centric approaches to design, build, and deploy engaging digital presences that resonate with their target audiences — increasing satisfaction and revenue.

We partner with leading vendors in MACH and Composable Commerce to drive the highest return on investment for our clients.

• Supply Chain, IoT, and Advanced Manufacturing

Our Supply Chain, Internet of Things (“IoT”), and Advanced Manufacturing practice focuses on transforming traditional operations into smart, connected ecosystems.

We leverage the IoT, edge computing, advanced analytics, modern artificial intelligence, and machine learning technologies to optimize supply chain demand forecasting, inventory allocation, order management, logistics, and supplier management, improve manufacturing operational efficiency, and introduce innovation in product development and production processes.

Our expertise in building fit-for-purpose platforms and adopting the latest innovations in this space enable real-time monitoring, predictive maintenance, and autonomous operations, reducing costs and enhancing productivity across the enterprise.

Our customers benefit from our ability to integrate innovative technologies into their operations, making their supply chains more resilient, agile, and aligned with the digital economy’s demands.

We deliver modular composable commerce platforms that enable integration of AI applications throughout the buying process — from defining the goals and requirements through purchase, delivery, and after-sales support.

Our AI-powered approach to customer experience, discovery, and conversion centers on three capabilities:

intelligent search that understands intent and context, our Merchandising Experience Platform (“MXP”) for centralized control of product presentation and promotions, and catalog enrichment that generates and enhances product content at scale.

Additional capabilities include front-end engineering, customer 360 personalization engines, conversational AI search and recommendations, agentic commerce that autonomously completes shopping, conversational shopping and knowledge assistants and virtual try-ons, AI-powered digital experience

platforms (“DXPs”), loyalty programs, omnichannel order management and inventory systems, and AI focus groups that simulate customer feedback.

• IoT and Edge Computing

We assist manufacturers and logistics providers in implementing Physical AI to enhance operational safety and intelligence.

Our IoT Control Tower offering serves as a centralized intelligence framework that enables clients to use operational data to create business value through customized predictive analytics and AI-driven guidance.

We also provide engineering services to develop digital twin simulations for system modeling, collaborative robotics architectures to augment human labor, and edge computing solutions that facilitate real-time data processing for immediate operational response.

• AI and Data Platforms

We design and deliver the data infrastructure that powers AI and analytics at scale.

This includes architectures that break down data silos and ensure quality, real-time streaming platforms that enable event-driven intelligence, analytics environments that support exploration and insight discovery, machine learning Ops systems that operationalize both traditional machine learning and large language models, multi-agent orchestration frameworks, and durable execution platforms for reliable long-running workflows.

These platforms create the foundation for data-driven transformation across the enterprise.

Industry-Focused Verticals

Grid Dynamics focuses on large enterprises and Fortune 1000 companies.

During each of the years ended December 31, 2025 and 2024, we had one customer that accounted for 15.4% and 16.0% of our revenues, respectively.

We generated approximately 57.7% and 55.7% of our revenues from our 10 largest clients during the years ended December 31, 2025 and 2024, respectively.

We seek to expand our customer base and diversify our revenue streams while organizing our business around industry verticals where we have deep domain expertise and proven track records.

Grid Dynamics has strong vertical-specific domain knowledge backed by extensive experience.

By merging technology with business processes, Grid Dynamics delivers tailored solutions in several key industry verticals.

By utilizing Grid Dynamics’ deep expertise in the digital retail space and providing a mix of consulting and engineering services, Grid Dynamics enables its clients to win market share, shorten time to market, and reduce the costs of digital operations.

For example, Grid Dynamics has worked closely with a large U.S.

retail company over many years to develop a strategic omnichannel transformation program and became a key contributor to the development of a new omnichannel platform including consumer experience, product discovery, analytics, and inventory optimization.

• Technology, Media and Telecom

Grid Dynamics has a strong presence in the digital technology sector, particularly among analytics, SaaS, and platform vendors that are driven by a constant need for innovation.

Grid Dynamics’ expertise in complex open-source technology and in building massively scalable distributed systems, the company-wide culture of agile co-creation and deep understanding of digital commerce have enabled Grid Dynamics to build strong business relationships with leading players in this sector.

For example, Grid Dynamics has been providing software engineering, continuous delivery and deployment

automation, machine learning, internal tool development, and quality engineering services to one of the largest cloud services providers, becoming one of their key technological services partners.

With expertise in capital markets, banking, and wealth management, Grid Dynamics crafts technology solutions to help financial institutions drive innovation, accelerate digital transformation, and maximize the value of client interactions.

For example, we helped a core banking and payments provider modernize its security frameworks, enabling a shift to cloud-native architectures and DevOps.

In wealth and asset management, we use AI to build platforms that provide advisors with access to financial data, improving decision-making and client engagement.

These AI-driven solutions use digital assistants and analytics to synthesize client profiles, analyze investments, and deliver wealth management strategies.

• Consumer Packaged Goods and Manufacturing

Grid Dynamics helps its manufacturing customers harness digital transformation by applying novel approaches to engage consumers directly and optimize back-end supply chains.

For example, Grid Dynamics accelerated digital transformation in a global shoe manufacturing company by building composable commerce and other digital ecosystem capabilities, replacing a monolithic commerce engine, and speeding time to market with modern and flexible functionality.

• Healthcare and Pharma

Leading companies leverage our cloud, app modernization, data science, and digital commerce solutions to accelerate drug discovery, product development, and time-to-market, optimize marketing and sales operations, and personalize customer experiences with valuable data insights and automation.

The following table presents our revenues by vertical and revenues as a percentage of total revenues by vertical for the periods indicated:

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2025 2024 2023

(in thousands, except % of revenue)

(in thousands, except percentages of revenues)

Retail $ 120,507 29.3 % $ 113,957 32.5 % $ 102,551 32.8 %

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Total $ 411,827 100.0 % $ 350,571 100.0 % $ 312,910 100.0 %

Delivery Model and Operating Structure

Our service delivery model involves using an efficient mix of on-site, off-site and offshore staffing.

We believe that the combination of our delivery model optimized for co-innovation and the placement of our technology leaders at clients’ premises creates a key competitive advantage that enables us to better understand and meet a client’s diverse needs.

Grid Dynamics has engineering personnel located within Grid Dynamics’ engineering centers across Europe, India, and the Americas to support our “Follow-the-Sun” strategy.

As of December 31, 2024, Grid Dynamics had 4,730 full-time and part-time personnel and delivered services from engineering centers located in the following countries:

the United States, Mexico, Argentina, Jamaica, the United Kingdom, Switzerland, Netherlands, Poland, Serbia, Romania, Ukraine, Moldova, Armenia, and India.

Grid Dynamics also places its self-managed teams of IT professionals at client premises aimed at successful delivery of innovative projects and programs.

Quality and Process Management

Grid Dynamics enforces stringent security standards and has maintained a continuous ISO 27001:2013 certification since August 2014.

All key company locations, departments and teams are within the scope of the deployed information security management system.

Grid Dynamics policies, standards and procedures are reviewed annually during both internal and external certification audits.

Grid Dynamics has successfully passed nine ISO 27001:2013 audits, as well as over a dozen exhaustive audits from top financial services customers.

Retail is a leadership vertical for Grid Dynamics where we serve major retailers and brands with solutions that drive measurable conversion improvements and operational efficiency.

Our retail expertise spans AI-Powered Discovery through visual search, conversational AI, and intelligent merchandising;

Composable Commerce with headless architectures and best-of-breed components;

Omnichannel Fulfillment including real-time inventory, intelligent routing, and last-mile optimization;

and Physical AI for in-store robotics, computer vision, and digital twin simulation.

We work with department stores, specialty retailers, consumer electronics companies, and direct-to-consumer brands to transform how they engage customers and operate their businesses.

• Technology, Media and Telecom

We serve technology-native clients that demand cutting-edge AI capabilities at scale, including technology companies, media enterprises, and telecommunications providers with cloud platform engineering, AI-native application development,

data platforms, and scalability solutions.

Our work in this vertical frequently involves delivering platforms and products that serve millions of end users.

We believe technology companies value our cutting edge work while maintaining enterprise-grade reliability and scale.

Finance represents our fastest-growing vertical, driven by strong fintech demand and deep banking relationships.

We serve banks, insurance companies, wealth management firms, and fintech innovators with solutions spanning AI-powered, bitemporal analytics, agentic regulatory compliance automation, customer experience platforms, financial advisor AI copilots, and core banking modernization.

The highly regulated nature of financial services demands both technical excellence and deep understanding of compliance requirements — capabilities we have built through our experience in the sector.

• Consumer Packaged Goods (“CPG”) and Manufacturing

We serve CPG companies and manufacturers with AI-powered operations solutions, including smart manufacturing, supply chain optimization platforms, IoT implementations, anomaly detection, predictive maintenance, visual process monitoring, digital twins, and collaborative robotics applications.

Our AI capabilities enable these clients to connect assets, optimize processes, and drive efficiency across operations.

Digital twin technology allows manufacturers to simulate changes before implementing them in physical facilities, reducing cost and risk, and accelerating innovation.

• Healthcare and Pharma

• Other Verticals

We also serve clients in other sectors where we believe our AI and engineering capabilities create significant value.

Each vertical benefits from our core capabilities while requiring specialized domain knowledge and industry-specific solutions.

Geographic Presence and Global Delivery Model

Grid Dynamics operates a global delivery model, leveraging talent across the Americas, Europe, and Asia.

This geographic footprint enables us to serve clients with continuous development, U.S.-based leadership, access to specialized talent pools, and delivery optimized for both quality and cost efficiency.

Our presence in the Americas is anchored by our Silicon Valley headquarters in San Ramon, California.

We maintain offices across the United States for client engagement, solution architecture, and strategic delivery functions.

We also have a growing presence in Mexico and Jamaica that supports nearshore delivery for North American clients.

Argentina has emerged as a strategic delivery location in South America, while Mexico enables effective nearshore delivery with time zone alignment and cultural affinity for clients in the Americas.

Our European operations center in the United Kingdom where we have deep expertise and go-to-market positioning in banking and financial services markets.

We maintain a presence across multiple European countries, providing both local market access and delivery capabilities.

India has become one of our top-two countries by headcount, representing a strategic expansion of our delivery capabilities with access to deep talent pools in AI, data engineering, and cloud platforms, while enabling cost-effective delivery at scale.

Our global footprint enables true continuous development cycles.

Work progresses continuously as it moves across time zones.

When teams in Europe and India conclude their workday, teams in the Americas continue to progress the project, and when the Americas teams finish, teams in India advance the work further.

This round-the-clock development compresses project timelines, accelerates issue resolution, and provides clients with continuous forward momentum rather than the stop-start cycles typical of single-location delivery models.

The result is faster time-to-market, steady progress visibility, and consistent quality.

This model works particularly well for large-scale transformations, rapid development initiatives, and situations requiring continuous production support.

In addition, an important element of our global strategy is to seek employees with the appropriate skills and cost structure across the relevant locations to optimize both the delivery of services and cost efficiency.

Customer-Focused Delivery Excellence

We believe our customer-focused delivery excellence framework differentiates Grid Dynamics through measurable outcomes, engineering precision, and accountability.

This integrated methodology combines four core pillars that work together to help ensure client success:

• Value Measurement Framework

We provide transparency through dashboards that capture project progress, ROI, and risk in real-time.

Integrated KPIs, progress updates, and satisfaction reviews ensure stakeholders remain informed so that projects perform to expectations.

This data-driven approach is designed to keep clients aligned, accountable, and on track throughout the engagement lifecycle.

• Delivery Framework

Our delivery approach leverages AI-native development tools and our global engineering teams provide continuous development cycles.

Real-time visibility into progress, combined with flexible engagement models tailored to each client’s business and product lifecycle, enables faster time-to-market while maintaining consistently high quality.

Our AI-native development frameworks streamline the software development lifecycle from planning and code generation through testing and deployment, enabling teams to dedicate more time to value-added features while significantly reducing technical debt.

• Tech Leadership & Development Capabilities

We maintain a delivery engine driven by continuous R&D innovation and over 40 proprietary industry accelerators that address recurring enterprise challenges.

Our engineering teams focus on business results, applying cutting-edge capabilities in Generative AI, Agentic AI, AI-enabled software development lifecycle, edge computing, and cloud-native modernization to deliver measurable impact rather than merely implementing technology for its own sake.

• Talent Management Framework

We recruit senior engineering talent and invest in development through Grid University, our comprehensive online education platform featuring thousands of hours of technical training.

This commitment to ongoing learning is designed to ensure that our teams combine deep technical skills with cultural fit and the ability to rapidly adapt to emerging technologies.

Sales and Marketing

Grid Dynamics’ sales and marketing strategy focuses on increasing revenues from new and existing clients through a “land and expand” strategy.

Grid Dynamics’ technology leaders deployed at clients’ premises play an integral role in identifying, developing and expanding potential business opportunities.

This strategy has been effective both in deepening relationships with existing clients and increasing the number of Grid Dynamics’ clients.

Grid Dynamics also maintains a dedicated sales force as well as a marketing team, which coordinates corporate-level branding efforts that range from sponsorship of programming competitions to participation in and hosting of industry conferences and events.

In addition, Grid Dynamics actively invests in partnerships with hyperscalers and leading technology providers to amplify its sales and marketing efforts, leveraging the advanced capabilities of these entities to enhance visibility and drive sustained business growth.

Grid Dynamics’ client base primarily consists of Fortune 1000 corporations based in North America.

With the acquisitions during recent years, we have gained customers in the U.K., North and Latin America, as well as Continental Europe and Asia.

Grid Dynamics has a high level of revenue concentration with certain clients.

We generated approximately 55.7% and 56.1% of our revenues from our 10 largest clients during the years ended December 31, 2024 and 2023, respectively.

During each of the years ended December 31, 2024 and 2023, we had one customer that accounted for 16.0% and 14.4% of our revenues, respectively.

Grid Dynamics typically enters into a master services agreement with its clients, which provides a framework for services that is then supplemented by statements of work, which specify the particulars of each individual engagement.

Grid Dynamics faces competition from both global IT services providers as well as those based in Central and Eastern European (“CEE”), Latin America and India.

Grid Dynamics believes that the principal competitive factors in its business include technical expertise and industry knowledge, culture, reputation and track record for high-quality and on-time delivery of work, effective employee recruiting, training and retention, responsiveness to clients’ business needs and financial stability.

In addition, companies may prefer to keep business in-house, rather than to outsource it.

Grid Dynamics faces competition primarily from:

• emerging small to mid-cap digital services companies, such as Globant S.A., Endava plc, and Thoughtworks Holding Inc.;

Grid Dynamics employs a consultative, relationship-driven sales approach focused on solving complex business challenges for Fortune 1000 enterprises.

Our sales organization combines direct enterprise sales teams, strategic account management, partnership-driven business development, and thought leadership marketing.

Our enterprise sales teams focus on new logo acquisition within target Fortune 1000 accounts.

These teams engage with executives, technology leaders, and others to understand strategic priorities and craft solutions that address business challenges.

The sales cycle for enterprise deals typically ranges from three to nine months and involves technical validation, architecture discussions, and business case development.

Strategic account managers maintain and develop relationships with clients, identifying expansion opportunities, helping ensure delivery excellence, and serving as trusted advisors, who understand our clients’ businesses and needs.

Partnership-driven business development leverages our relationships with Google Cloud, AWS, Microsoft Azure, NVIDIA, and other technology leaders to generate opportunities through joint go-to-market initiatives, co-innovation projects, and ecosystem relationships that accelerate deal cycles.

Our marketing strategy emphasizes thought leadership, technical credibility, and demonstrable expertise.

We invest in producing high-quality content, including white papers, case studies, technical blog posts, ebooks, solution briefs, webinars, demo videos, and conference presentations.

We participate in industry conferences, partner events, and technology community gatherings, establishing Grid Dynamics as a recognized thought leader in AI transformation.

Grid Dynamics operates in competitive markets for AI and digital engineering services.

We face competition from global IT services providers as well as firms based in Central and Eastern Europe (“CEE”), Latin America, and India.

We believe the principal competitive factors in our business include technical expertise and industry knowledge, culture, reputation and track record for high-quality delivery, effective employee recruiting and retention, responsiveness to clients’ business needs, and financial stability.

In addition, companies may choose to build capabilities in-house rather than engage outside providers.

We face competition primarily from:

• emerging mid-cap digital services companies, such as Globant S.A.

and Endava plc.;

• large global consulting and outsourcing firms, such as Accenture plc, EPAM Systems, Inc., and Capgemini SE;

• India-based technology outsourcing IT services providers, such as Cognizant Technology Solutions Corporation, Infosys Technologies, and Wipro;

• in-house IT departments of Grid Dynamics’ clients and potential clients.

Given Grid Dynamics’ focus on complex digital transformation programs, technical employee base and the development and continuous improvement in new software technology, Grid Dynamics believes that it is well positioned to compete effectively.

• India-based technology outsourcing IT services providers, such as Cognizant Technology Solutions Corporation, Infosys Technologies, Tata Consultancy Services Limited and Wipro;

• specialized AI and data science consultancies;

• in-house IT departments of our clients and potential clients.

Competitive Strengths

We believe our principal competitive strengths in our business include deep technical expertise and industry knowledge, a culture of engineering excellence, a reputation and a track record for high-quality delivery, effective employee recruiting and retention, responsiveness to clients’ business needs, and our financial stability.

Given our focus on complex digital transformation programs, technical employee base, and continuous development in new software technology, we believe Grid Dynamics is a leading provider in the IT services and consulting space.

Our engineering-led model helps ensure technical excellence, deep understanding of how technology transforms business performance, and the ability to blend technical expertise with cultural fit in ways we believe traditional IT service providers cannot easily replicate.

We believe our position combining deep AI expertise with enterprise-scale delivery creates a structural competitive advantage.

While competitors attempt to retrofit AI capabilities onto traditional service delivery models, we have built our approach from the ground up around AI.

We have developed specialized talent, proven frameworks, production-ready accelerators, and customer-focused delivery excellence through extensive AI innovation.

Our combination of deep technical capabilities and business consulting focus enables us to provide differentiated value to both technology leaders and business innovators.

This positioning, combined with our comprehensive partnership ecosystem, customer-focused delivery framework, and access to global technical talent, positions us to deliver quality, speed, and cost from initial concept to full-scale enterprise deployment.

Human Capital and Employees

People are critical to the success of Grid Dynamics.

Accordingly, attracting and retaining personnel is a key factor in Grid Dynamics’ ability to grow revenues and meet its clients’ needs.

As of December 31, 2024, Grid Dynamics had 4,730 personnel

across 14 countries (the U.S., Mexico, Argentina, Jamaica, Armenia, India, the Netherlands, the U.K., Poland, Romania, Serbia, Switzerland, Moldova, and Ukraine).

People are critical to Grid Dynamics’ success.

Our ability to attract, develop, and retain exceptional technical talent is fundamental to our business model and competitive position.

As of December 31, 2025, Grid Dynamics had 4,961 personnel across the Americas, Europe, and India.

Recruitment and Retention

Grid Dynamics hires both for technical skills and cultural fit.

The reality of the changing technological landscape demands that our engineering personnel can continuously acquire new proficiencies and skills.

Grid Dynamics’ hiring program is driven by demand within current and projected clients.

Projections of client demand are constantly reviewed to ensure that we maintain a proper recruiting and training pipeline.

The geographical spread helps Grid Dynamics avoid location constraints and shorten the time to identify and recruit top technical talent.

Grid Dynamics targets the top technical talent from top technical universities in all its locations.

The majority of Grid Dynamics’ engineering personnel have bachelor’s or advanced degrees in computer science.

To attract, retain, and motivate IT professionals, Grid Dynamics seeks to provide an environment and culture that rewards entrepreneurial initiative and performance.

In addition, Grid Dynamics offers a challenging work environment, ongoing skills development initiatives, and attractive career advancement and promotion opportunities.

Grid Dynamics believes that it maintains a good working relationship with its employees and has not experienced any labor disputes.

Grid Dynamics’ employees have not entered into any collective bargaining agreements.

Grid Dynamics hires for both technical skills and cultural fit, with focus on recruiting exceptional global engineering talent.

Our rapidly changing technological landscape demands that engineering personnel continuously acquire new proficiencies and skills.

We target top technical talent from leading universities and maintain deep relationships with premier computer science programs worldwide.

Our hiring is demand-driven, based on current and projected client needs.

We constantly review projections to ensure we maintain proper recruiting and training pipelines.

Our geographical spread helps us avoid location constraints and accelerate identification and recruitment of top technical talent.

Many of our engineering personnel hold bachelor’s or advanced degrees in computer science or related technical fields.

To attract, retain, and motivate IT professionals, we provide an environment and culture that rewards entrepreneurial initiative and performance.

We offer challenging work on cutting-edge projects for high-profile Fortune 1000 clients, ongoing skills development initiatives through Grid University and external training programs, attractive career advancement opportunities, and a flexible work environment.

Our employee value proposition emphasizes the opportunity to work with the most advanced technologies, solve complex problems with real business impact, and grow professionally in an organization that values technical excellence.

Grid Dynamics believes it maintains good working relationships with its employees and has not experienced any labor disputes.

Our employees have not entered into collective bargaining agreements.

Training and Development

Grid Dynamics dedicates significant resources to the training and development of its technical leaders.

The Company believes in the importance of supporting educational initiatives and sponsors employees’ participation in internal and external training and certifications.

Every year Grid Dynamics delivers hundreds of courses in emerging technologies to its engineers using the Grid University online education platform.

Employees can also take advantage of educational and certification programs offered by the technology leaders both in open-source as well as in proprietary spaces.

Furthermore, through Grid Dynamics, deep relationships with top local universities, forged over years of collaboration, and specialized recruiting programs, Grid Dynamics can scale the hiring and staffing of new engineering teams to support complex technical programs.

Grid Dynamics also provides ongoing English language training at all of its delivery centers to maintain and enhance the English language skills of its IT professionals.

Management Training Programs

Grid Dynamics offers support, training, and mentoring programs to managers through the Grid Dynamics Management Training Program.

Various courses in project management and leadership skills help managers build strong teams through a positive work environment, group inspiration, and individual motivation.

Our approach to talent development reflects a culture-first philosophy:

to have our employees develop the expertise and other skills to earn the trust of business leaders, increasingly emerging as part of AI enterprise adoption, who combine a vision of business transformation with a deep understanding of modern technology’s possibilities.

We select, train, and promote our leadership based on four principles:

Global Integration — the demands of modern businesses transcend cultural and language boundaries;

accordingly, we build teams that are distributed across countries, time zones, and reporting lines;

Partnership with Clients — we demand accountability and ownership of a client’s success, whether or not such success is a contractual matter, and understanding client goals and the ability to manage such goals across reporting lines are required for any leadership role within Grid Dynamics;

Technological Innovation — understanding AI-native transformation and successfully delivering strategic programs are impossible without a strong understanding of emerging technology, and deep knowledge of how cloud, big data, and AI transform the way corporations develop their businesses is a prerequisite for leadership roles;

Education — as technology changes rapidly, our employees must adapt even more rapidly, and we offer many formal and informal training programs to ensure that professionals can continuously expand and enhance their capabilities.

Grid Dynamics dedicates significant resources to training and development of technical talent.

Our Grid University online education platform provides thousands of hours of training content across over 250 courses in more than 30 learning tracks, covering emerging technologies, AI-first software development lifecycle methodologies, generative AI, agentic AI, context engineering, and other specialized domains.

This comprehensive learning environment ensures that professionals can continuously expand and enhance their capabilities.

Also, we sponsor employees’ participation in external training programs and certifications from technology leaders in both open-source and proprietary ecosystems.

Furthermore, we maintain partnerships with leading technology providers that enable our engineers to pursue advanced certifications and specialized badges.

As of December 31, 2025, our engineers held over 1,600 hyperscaler certifications across over 100 different certification types.

We also provide ongoing English language training at all delivery centers to maintain and enhance language skills necessary for effective client communication and global collaboration.

Internship Program

Grid Dynamics has a long-standing tradition of running internship programs for students and junior engineers.

The Company opens its doors to young, promising engineers who are ready for a life-changing career of working on complex projects in big data, machine learning, AI, and other emerging technologies.

Each intern works with a mentor who helps them adapt, shares knowledge and supports them in developing the necessary skills.

We run approximately 10 internship cycles annually, attracting over 16,000 applicants with high placement rates into billable roles.

Each intern works with a mentor who helps them adapt, shares knowledge, and supports development of necessary skills.

Our internship program focuses on big data, machine learning, AI, and other emerging technologies, creating a pipeline of engineers who have grown up with AI agents as core tools rather than attempting to retrofit new ways of working onto established practices.

Talent Management Framework

Our talent management framework leverages smart platforms and data-driven approaches to maximize team effectiveness.

Our Team Data AI platform uses predictive analytics to assemble high-performing teams and allocate resources optimally.

Our Skill Tree system maps engineers’ expertise and seniority for optimal role fit across projects.

InGrid, our internal education program, enables employees to learn new technologies and pioneer new methodologies to keep client businesses ahead of technology curves.

This systematic approach ensures that the right engineers with the right skills are matched to the right projects, maximizing value for clients and career growth for our people.

Intellectual Property

Protection of intellectual property rights is paramount to Grid Dynamics and its clients.

Grid Dynamics relies on a combination of trade secret, patent, copyright, and trademark laws as well as confidentiality procedures and contractual provisions to protect its intellectual property.

Grid Dynamics requires its employees, independent contractors, vendors, and clients to enter into written confidentiality agreements upon the commencement of their relationships with Grid Dynamics.

Protection of intellectual property rights is paramount to Grid Dynamics and our clients.

We rely on a combination of trade secret, patent, copyright, and trademark laws, as well as confidentiality procedures and contractual provisions to protect our intellectual property and that of our clients.

We require employees, independent contractors, vendors, and clients to enter into written confidentiality agreements upon commencement of their relationships with Grid Dynamics.

These agreements generally provide that any confidential or proprietary information disclosed or otherwise made available by Grid Dynamics must be kept confidential.

Grid Dynamics customarily enters into non-disclosure agreements with its clients concerning the use of their software systems and platforms.

Grid Dynamics’ clients usually own the intellectual property in the software or systems Grid Dynamics develops for them.

Grid Dynamics and its clients often use open-source software to improve quality and reduce time-to-market.

Grid Dynamics works with the compliance departments of its clients to comply with the client’s open-source licensing policies.

Due to the industry and geographic diversity of Grid Dynamics’ operations and services, Grid Dynamics’ operations are subject to a variety of laws and regulations in the United States and the foreign jurisdictions in which we operate.

We customarily enter into non-disclosure agreements with our clients concerning the use of their software systems and platforms.

Our clients usually own the intellectual property in the software or systems Grid Dynamics develops for them.

We retain rights to our general methodologies, frameworks, and reusable components — including over 40 of our industry accelerators and proprietary delivery frameworks.

Grid Dynamics and our clients often use open-source software to improve quality and reduce time-to-market, and we work closely with our clients' compliance departments to ensure compliance with their open-source licensing agreements and internal policies and maintain rigorous processes for managing open-source dependencies and license obligations.

Due to the industry and geographic diversity of Grid Dynamics’ operations and services, we are subject to a variety of laws and regulations in the United States and the foreign jurisdictions in which we operate.

Key regulatory areas include employment and labor laws, tax regulations, data privacy and protection, intellectual property laws, anti-corruption and anti-bribery regulations, export controls, and industry-specific regulations applicable to our clients’ sectors.

See Item 1A, “ Risk Factors—Risks Related to Regulations, Legislation and Legal Proceedings.

We maintain compliance programs and internal controls designed to ensure adherence to applicable laws and regulations.

Our ISO 27001 certification provides a framework for information security management that addresses many regulatory requirements.

We regularly review and update our compliance programs to address evolving regulatory requirements and emerging risks.

For further information regarding risks related to legal and regulatory compliance can be found in Item 1A, “ Risk Factors—Risks Related to Regulations, Legislation and Legal Proceedings.

Available Information

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Item 1. Business