Q2 2025 Nagarro SE Earnings Call For Retail Investors Transcript
Key Points
- Nagarro SE (NGRRF) reported a revenue of EUR252 million and an adjusted EBITDA of EUR30.5 million for Q2 2025, with a gross margin increase from 30.0% to 33.2% year-over-year.
- The company has shown excellent operational efficiency, benefiting from productivity gains under its margin support program.
- Nagarro SE (NGRRF) is seeing a slight pickup in activity in data, cloud, and AI, with strategic initiatives and partnerships gaining momentum.
- The company maintains a diversified client base, with 188 clients generating over EUR1 million each, and a low churn rate.
- Nagarro SE (NGRRF) is expanding its offerings through strategic acquisitions, such as the business transfer of Notion Edge France, enhancing its capabilities in SAP customer experience.
- Currency fluctuations, particularly the weakening of the dollar against the euro, have led to noncash accounting losses impacting the bottom line.
- The company expects its full-year revenue to be at the lower end of its guidance due to current demand trends and currency impacts.
- Adjusted EBITDA margin is expected to be between 13.5% and 14.5%, lower than the initial target of 14.5% to 15.5%, due to currency devaluations.
- Nagarro SE (NGRRF) is experiencing pressure in the telecom, media, and entertainment sectors, with a slight decline in North America partly due to currency effects.
- The company is cautious about share buybacks due to currency fluctuations affecting equity positions and bank covenants.
Hello, everyone, and a warm welcome to Nagarro's first half 2025 retail investors call. My name is Emily, and I'll be coordinating your call today. (Operator Instructions)
I would now like to turn the call over to our host, Michael Knapp. Please go ahead, Michael.
Great. Thanks, Emily, and good afternoon, everyone. Welcome to Nagarro SE's retail investors call following today's earnings release for the first half of 2025. My name is Michael Knapp, and I'm part of the Investor Relations team at Nagarro, and I'm delighted to moderate today's call.
You should have received a copy of the earnings release for Nagarro's second-quarter 2025 results. If you have not received the release, you can confirm -- you can find a copy along with today's presentation on the Investor Relations section of the Nagarro website. Manas Human, our Co-Founder and custodian of entrepreneurship, and I will be representing Nagarro on today's call.
Before I pass you over to Manas, I'd like to remind you that
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