Grid Dynamics jumped 38.7% to about 143 times earnings while its CEO and COO sold shares
The consultancy's best quarter lifted the stock 38.7 percent to a 52-week high. Its chief executive and chief operating officer sold shares the same week, under plans that run into 2027, while the 20 percent margin buyers paid 143 times earnings for is an adjusted one.
Vincent Jiang · 2 min read
On October 29, Grid Dynamics+0.73% — Grid Dynamics, up 0.73 percent today reported the best quarter in its history and its stock jumped 38.7 percent 2345. On the same day, chief executive Leonard Livschitz sold 10,000 shares at about $9 2345. Three trading days later, chief operating officer Yury Gryzlov sold 4,715 shares at $13.55, near the 52-week high of $13.40 the stock had touched on November 2 2345.
The quarter that did it
Grid Dynamics, a San Ramon, California consultancy that builds AI and digital platforms for the Fortune 1000, reported third-quarter revenue of $114.3 million, up 9.7 percent year over year and above the top of its own $112.0 to $114.0 million guidance. AI-native programs, work for clients building products around artificial intelligence, now run at 31 percent of revenue and have grown more than 45 percent for three straight quarters.
Non-GAAP EBITDA hit a record $22.9 million, a 20 percent margin, and gross margin reached 40.3 percent against 33.3 percent a year earlier 728.
Grid Dynamics revenue: a flat 2025, then a record $114.3 million quarter
A flat 2025, then the record Q3 the insiders sold into
Data
| Quarterly revenue | |
|---|---|
| Q4 '23 | 78.07M |
| Q1 '24 | 79.82M |
| Q2 '24 | 83.04M |
| Q3 '24 | 87.44M |
| Q4 '24 | 100.28M |
| Q1 '25 | 100.42M |
| Q2 '25 | 101.1M |
| Q3 '25 | 104.16M |
| Q4 '25 | 106.15M |
| Q1 '26 | 104.1M |
| Q2 '26 | 108.16M |
| Q3 '26 | 114.29M |
The gap the print hid
The 20 percent margin is an adjusted figure 721. GAAP operating income was $9.1 million, an 8 percent margin, and GAAP net income was $6.2 million, or $0.08 a share; stock compensation, restructuring and transformation costs sit between the two 721. At $13.69 on November 4, screener data put the trailing price-to-earnings ratio at 142.9 on roughly $0.10 of trailing GAAP earnings per share, with the relative strength index at 91.03, deep in overbought territory 721.
Buyers paid 143 times earnings on an 8 percent GAAP margin, not the 20 percent adjusted one
Data
| Value | |
|---|---|
| Gross margin | 40.3% |
| Adjusted EBITDA margin | 20% |
| GAAP operating margin | 8% |
| GAAP net margin | 5.4% |
What the sellers knew, and when
GuruFocus counts 22 insider sales against zero buys over the past year, with Livschitz alone selling 70,000 shares 456. Under a Rule 10b5-1 plan, an executive schedules sales in advance, an affirmative defense against trading on inside information, so each sale proves less than it looks like 456. But TipRanks reports the chief executive and chief financial officer have adopted plans of unusual size running into late 2027, and Gryzlov's plan was adopted in November 2025, months before this quarter 456.
Cash, buybacks and raised targets back the stock
Bulls note the company holds $304.3 million of cash with minimal debt, bought back $35.5 million of stock in nine months, and guided Q4 above consensus on both revenue and EBITDA 278. Needham, TD Cowen and JPMorgan raised targets 278.
Q4 guidance sits below the record, and the selling runs to 2027
Q4 guidance implies EBITDA of $20 to $22 million, below the $22.9 million just delivered 76. Whether the re-rating holds depends on GAAP profit catching the adjusted margin; the insiders, meanwhile, are scheduled to keep selling into it well past 2027 76.
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