Grid Dynamics Holdings Inc. Class A Common Stock (GDYN)

FairStock Score: 24/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look first for durable earning power and a margin of safety. Grid Dynamics provides enterprise AI and digital transformation services, a people-driven business where clients can switch providers and talent can leave. That usually means a narrow moat, not a wide one. Its balance sheet is a real positive: the data set shows debt/equity of 0.03, a FairStock Piotroski F-Score of 8/9, and an Altman Z-Score of 5.60. But profitability is thin. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $108.2M and net income was $2.9M, or $0.03 per diluted share. A year earlier, in fiscal Q2 2025 ended 2025-06-30, revenue was $101.1M but net income was $5.3M and EPS $0.06. In fiscal Q1 2026 ended 2026-03-31, the company lost $1.5M. For FY2025 ended 2025-12-31, revenue was $411.8M with net income of $9.7M and EPS of $0.11; FY2024 ended 2024-12-31 had revenue of $350.6M and net income of $4.0M. FairStock's Lynch category calls it a TURNAROUND because it returned to profit after a loss within the last three years. At the $7.78 close on 2026-10-13, FairStock calculations show a P/E of 259.33, P/B of 1.21, FCF yield of 2.5%, EV/EBITDA of 14.55, Graham Number of $2.08, and a margin of safety of -274.04%. ROE is 0.54% and ROCE 0.60%. Growth is present, but profit conversion is weak. I would need to see margins and cash returns improve before calling this a bargain.

In plain English: Grid Dynamics helps companies use artificial intelligence and digital tools. In the quarter ended 2026-06-30, profit fell even as sales edged up, and the business is only slightly profitable. Its balance sheet looks safe, but at the 2026-10-13 closing price of $7.78, the shares look expensive compared with recent earnings and not especially cheap compared with the accounting value of its assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer