Accessibility Statement Skip Navigation
  • Resources
  • Investor Relations
  • Journalists
  • Agencies
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • Arabic
      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Explore Our Platform
  • Plan Campaigns
  • Create with AI
  • Distribute Press Releases
  • Amplify Content
  • All Products
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Hamburger menu
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • Explore Our Platform
  • Plan Campaigns
  • Create with AI
  • Distribute Press Releases
  • Amplify Content
  • All Products
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS

EPAM Reports Results for Third Quarter 2025 and Raises Full Year Revenue and EPS Outlook

EPAM Systems (PRNewsfoto/EPAM Systems, Inc.)

News provided by

EPAM Systems, Inc.

Nov 06, 2025, 06:00 ET

Share this article

Share toX

Share this article

Share toX

  • Third quarter revenues of $1.394 billion, up 19.4% year-over-year
  • GAAP income from operations was 10.4% of revenues and non-GAAP income from operations was 16.0% of revenues for the third quarter
  • Third quarter GAAP diluted EPS of $1.91, a decrease of $0.46, and non-GAAP diluted EPS of $3.08, a decrease of $0.04 on a year-over-year basis
  • Continued to return capital to shareholders, repurchasing $82.1 million of stock in the third quarter and established a new share repurchase plan for up to $1 billion in additional repurchases as previously announced
  • EPAM raises its full year expected revenue growth rate for 2025 to now be in the range of 14.8% to 15.2%, reflecting a year-over-year growth rate of 15.0% at the midpoint of the range
  • For the full year, EPAM increases expected GAAP diluted EPS to now be in the range of $6.75 to $6.83, and non-GAAP diluted EPS to be in the range of $11.36 to $11.44

NEWTOWN, Pa., Nov. 6, 2025 /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM), a leading digital transformation services and product engineering company, today announced results for the third quarter ended September 30, 2025.

Continue Reading
EPAM Reports Results for Third Quarter 2025 and Raises Full Year Revenue and EPS Outlook
EPAM Reports Results for Third Quarter 2025 and Raises Full Year Revenue and EPS Outlook

"We are pleased to deliver another quarter of improving year-over-year organic constant currency revenue growth, driven by our deep engineering expertise and focus on helping clients build out their AI foundation and transform themselves into AI-Native organizations," said Balazs Fejes, CEO and President at EPAM. "By investing in AI and AI-Native innovation, talent, and partnerships we are accelerating our own transformation, building on top of our core engineering heritage and strengthening our strategic positioning to lead in the future world of AI-Native enterprises."

Third  Quarter 2025 Highlights

  • Revenues increased to $1.394 billion, a year-over-year increase of $226.8 million, or 19.4%. On an organic constant currency basis, revenues were up 7.1% compared to the third quarter of 2024;
  • GAAP income from operations was $144.9 million, a decrease of $32.0 million, or 18.1%, compared to $177.0 million in the third quarter of 2024;
  • Non-GAAP income from operations was $222.8 million, a decrease of $0.1 million, compared to $222.9 million in the third quarter of 2024;
  • Diluted earnings per share ("EPS") on a GAAP basis was $1.91, a decrease of $0.46, or 19.4%, compared to $2.37 in the third quarter of 2024; and
  • Non-GAAP diluted EPS was $3.08, a decrease of $0.04, or 1.3%, compared to $3.12 in the third quarter of 2024.

Cash Flow and Other Metrics

  • Cash provided by operating activities was $372.0 million for the first nine months of 2025, compared to cash provided by operating activities of $428.9 million for the first nine months of 2024;
  • Cash, cash equivalents and restricted cash totaled $1.244 billion as of September 30, 2025, a decrease of $46.9 million, or 3.6%, from $1.290 billion as of December 31, 2024;
  • The Company repurchased 493,000 shares of its common stock for $82.1 million during the third quarter of 2025 under its share repurchase program. As of September 30, 2025, the Company exhausted the $500 million available for purchases of the Company's common stock under the previously authorized share repurchase program;
  • On October 16, 2025, as previously announced, the Board of Directors approved a new share repurchase program with authorization to purchase up to $1.0 billion of EPAM common stock; and
  • Total headcount was approximately 62,350 as of September 30, 2025. Included in this number were approximately 56,100 delivery professionals, an increase of 0.5% from June 30, 2025.

2025 Outlook - Full Year and Fourth Quarter

Full Year

EPAM expects the following for the full year:

  • Based on the strength of organic constant currency revenue growth and updates to our foreign exchange rate assumptions, the Company raises its expected revenues to be in the range of $5.430 billion to $5.445 billion, reflecting a year-over-year growth rate of 15.0% at the midpoint of the range, an increase from the prior outlook of 14.0% at the midpoint of the range. Additionally, the Company now expects the year-over-year revenue growth rate on an organic constant currency basis to be 4.6% at the midpoint of the range, an increase from the prior outlook of 4.0% at the midpoint of the range;
  • For the full year, EPAM now expects GAAP income from operations to be in the range of 9.4% to 9.7% of revenues and non-GAAP income from operations to be in the range of 15.0% to 15.3% of revenues;
  • The Company now expects its GAAP effective tax rate to be approximately 25.0% and continues to expect its non-GAAP effective tax rate to be approximately 24.0%; and
  • EPAM now expects GAAP diluted EPS to be in the range of $6.75 to $6.83 and non-GAAP diluted EPS to be in the range of $11.36 to $11.44. The Company now expects weighted average diluted shares outstanding for the year to be 56.2 million.

Fourth Quarter

EPAM expects the following for the fourth quarter:

  • The Company expects revenues will be in the range of $1.380 billion to $1.395 billion for the fourth quarter, reflecting year-over-year growth of 11.1% at the midpoint of the range. The Company expects the year-over-year revenue growth rate on an organic constant currency basis to be 4.4% at the midpoint of the range;
  • For the fourth quarter, EPAM expects GAAP income from operations to be in the range of 10.0% to 11.0% of revenues and non-GAAP income from operations to be in the range of 15.5% to 16.5% of revenues;
  • The Company expects its GAAP effective tax rate to be approximately 24.0% and its non-GAAP effective tax rate to be approximately 23.0%; and
  • EPAM expects GAAP diluted EPS will be in the range of $2.00 to $2.08 for the quarter, and non-GAAP diluted EPS will be in the range of $3.10 to $3.18 for the quarter. The Company expects weighted average diluted shares outstanding for the quarter to be 55.1 million.

Conference Call Information

EPAM will host a conference call to discuss the results on Thursday, November 6, 2025, at 8:00 a.m. ET. The conference call will be available live on the EPAM website at https://investors.epam.com. Please visit the website at least 15 minutes prior to the call to register for the event. For those who cannot access the live webcast, a replay will be available in the Investor Relations section of the website.

About EPAM Systems

Since 1993, EPAM Systems, Inc. (NYSE: EPAM) has used its software engineering expertise to become a leading global provider of digital engineering, cloud and AI-enabled transformation services, and a leading business and experience consulting partner for global enterprises and ambitious startups. We address our clients' transformation challenges by focusing EPAM Continuum's integrated strategy, experience and technology consulting with our 30+ years of engineering execution to speed our clients' time to market and drive greater value from their innovations and digital investments.

We leverage AI and GenAI to deliver transformative solutions that accelerate our clients' digital innovation and enhance their competitive edge. Through platforms like EPAM AI/RUN™ and initiatives like DIALX Lab, we integrate advanced AI technologies into tailored business strategies, driving significant industry impact and fostering continuous innovation.

We deliver globally but engage locally with our expert teams of consultants, architects, designers and engineers, making the future real for our clients, our partners, and our people around the world. We believe the right solutions are the ones that improve people's lives and fuel competitive advantage for our clients across diverse industries. Our thinking comes to life in the experiences, products and platforms we design and bring to market.

Added to the S&P 500 and the Forbes Global 2000 in 2021 and recognized by Glassdoor and Newsweek as Most Loved Workplace, our multidisciplinary teams serve customers across six continents. We are proud to be among the top 15 companies in Information Technology Services in the Fortune 1000 and to be recognized as a leader in the IDC MarketScapes for Worldwide Experience Build Services, Worldwide Experience Design Services and Worldwide Software Engineering Services.

Learn more at www.epam.com and follow us on LinkedIn.

Non-GAAP Financial Measures

EPAM supplements results reported in accordance with United States generally accepted accounting principles, referred to as GAAP, with non-GAAP financial measures. Management believes these measures help illustrate underlying trends in EPAM's business and uses the measures to establish budgets and operational goals, communicate internally and externally, for managing EPAM's business and evaluating its performance. Management also believes these measures help investors compare EPAM's operating performance with its results in prior periods. EPAM anticipates that it will continue to report both GAAP and certain non-GAAP financial measures in its financial results, including non-GAAP results that exclude stock-based compensation expenses, acquisition-related costs including amortization of acquired intangible assets, impairment of assets, expenses associated with EPAM's humanitarian commitment to its professionals in Ukraine, costs associated with the geographic repositioning of EPAM employees based outside of Ukraine impacted by the war and geopolitical instability in the region, employee separation costs incurred in connection with restructuring programs including the Company's exit from Russia, certain other one-time charges and benefits, changes in fair value of contingent consideration, foreign exchange gains and losses, excess tax benefits and tax shortfalls related to stock-based compensation, and the related effect on income taxes of the pre-tax adjustments. Management also compares revenues on an "organic constant currency basis," which is a non-GAAP financial measure. This measure excludes the effect of acquisitions by removing revenues from an acquired company in the twelve months after completing an acquisition and foreign currency exchange rate fluctuations by translating current period revenues into U.S. dollars at the weighted average exchange rates of the prior period of comparison. Because EPAM's reported non-GAAP financial measures are not calculated in accordance with GAAP, these measures are not comparable to GAAP and may not be comparable to similarly described non-GAAP measures reported by other companies within EPAM's industry. Consequently, EPAM's non-GAAP financial measures should not be evaluated in isolation or supplant comparable GAAP measures, but rather, should be considered together with the information in EPAM's consolidated financial statements, which are prepared in accordance with GAAP.

Forward-Looking Statements

This press release includes estimates and statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Our estimates and forward-looking statements are mainly based on our current expectations and estimates of future events and trends, which affect or may affect our business and operations. These statements may include words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. Those future events and trends may relate to, among other things, developments relating to the war in Ukraine and escalation of the war in the surrounding region, political and civil unrest or military action in the geographies where we conduct business and operate, difficult conditions in global capital markets, foreign exchange markets, global trade and the broader economy, the adoption and implementation of artificial intelligence technologies by EPAM and its clients, and the effect that these events may have on client demand and our revenues, operations, access to capital, and profitability. Other factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the risk factors discussed in the Company's most recent Annual Report on Form 10-K and the factors discussed in the Company's Quarterly Reports on Form 10-Q, particularly under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" and other filings with the Securities and Exchange Commission. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made based on information currently available to us. EPAM undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

Category: Investor

EPAM SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share data)



Three Months Ended

September 30,


Nine Months Ended

September 30,


2025


2024


2025


2024

Revenues

$    1,394,373


$    1,167,527


$ 4,049,508


$ 3,479,589

Operating expenses:








Cost of revenues (exclusive of depreciation and amortization)

983,169


763,992


2,899,189


2,409,183

Selling, general and administrative expenses

234,948


206,820


685,546


599,331

Depreciation and amortization expense

31,313


19,736


94,024


63,003

Income from operations

144,943


176,979


370,749


408,072

Interest and other income, net

2,302


13,347


11,635


40,425

Foreign exchange loss

(3,627)


(710)


(20,581)


(1,416)

Income before provision for income taxes

143,618


189,616


361,803


447,081

Provision for income taxes

36,802


53,270


93,479


95,847

Net income

$       106,816


$       136,346


$     268,324


$     351,234









Net income per share:








Basic

$              1.92


$              2.40


$           4.77


$           6.11

Diluted

$              1.91


$              2.37


$           4.75


$           6.04

Shares used in calculation of net income per share:








Basic

55,557


56,910


56,214


57,445

Diluted

55,817


57,425


56,534


58,166

EPAM SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except par value)



As of

September 30,

2025


As of

December 31,

2024

Assets




Current assets




Cash and cash equivalents

$    1,239,136


$    1,286,267

Trade receivables and contract assets, net of allowance of $4,481 and $5,612, respectively

1,130,496


1,002,175

Prepaid and other current assets

154,408


137,806

Total current assets

2,524,040


2,426,248

Property and equipment, net

198,821


207,667

Operating lease right-of-use assets, net

123,439


128,244

Intangible assets, net

419,806


436,418

Goodwill

1,208,912


1,181,575

Deferred tax assets

235,318


269,799

Other noncurrent assets

132,964


100,522

Total assets

$    4,843,300


$    4,750,473





Liabilities




Current liabilities




Accounts payable

$         42,981


$         44,702

Accrued compensation and benefits expenses

543,738


484,952

Accrued expenses and other current liabilities

188,591


201,356

Income taxes payable, current

19,492


50,395

Operating lease liabilities, current

40,460


39,634

Total current liabilities

835,262


821,039

Long-term debt

25,036


25,194

Operating lease liabilities, noncurrent

89,721


98,426

Deferred tax liabilities, noncurrent

96,956


92,362

Other noncurrent liabilities

69,482


82,301

Total liabilities

1,116,457


1,119,322

Commitments and contingencies




Equity




Stockholders' equity




Common stock, $0.001 par value; 160,000 shares authorized; 55,214 shares issued and outstanding at September 30, 2025, and 56,869 shares issued and outstanding at December 31, 2024

55


57

Additional paid-in capital

1,329,512


1,190,222

Retained earnings

2,384,297


2,555,796

Accumulated other comprehensive income/(loss)

12,397


(116,864)

Total EPAM Systems, Inc. stockholders' equity

3,726,261


3,629,211

Noncontrolling interest in consolidated subsidiaries

582


1,940

Total equity

3,726,843


3,631,151

Total liabilities and equity

$    4,843,300


$    4,750,473

EPAM SYSTEMS, INC. AND SUBSIDIARIES

Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures

(Unaudited)

(In thousands, except percentages and per share amounts)


Reconciliation of year-over-year revenue growth as reported on a GAAP basis to revenue growth on an organic constant currency basis is presented in the table below:



Three Months Ended

September 30, 2025


Nine Months Ended

September 30, 2025

Revenue growth as reported

19.4 %


16.4 %

Inorganic revenue growth

(10.5) %


(10.8) %

Foreign exchange rates impact

(1.8) %


(1.0) %

Revenue growth on an organic constant currency basis

7.1 %


4.6 %

Reconciliation of various income statement amounts from GAAP to non-GAAP for the three and nine months ended September 30, 2025 and 2024:



Three Months Ended

September 30, 2025


Nine Months Ended

September 30, 2025


GAAP


Adjustments


Non-GAAP


GAAP


Adjustments


Non-GAAP

Cost of revenues (exclusive of depreciation and amortization)(1)

$ 983,169


$  (21,732)


$ 961,437


$  2,899,189


$  (64,505)


$  2,834,684

Selling, general and administrative expenses(2)

$ 234,948


$  (37,924)


$ 197,024


$ 685,546


$ (112,496)


$ 573,050

Income from operations(3)

$ 144,943


$    77,876


$ 222,819


$ 370,749


$ 230,713


$ 601,462

Operating margin

10.4 %


5.6 %


16.0 %


9.2 %


5.7 %


14.9 %

Net income(4)

$ 106,816


$    64,978


$ 171,794


$ 268,324


$ 198,276


$ 466,600

Diluted earnings per share

$        1.91




$       3.08


$        4.75




$        8.25














Three Months Ended

September 30, 2024


Nine Months Ended

September 30, 2024


GAAP


Adjustments


Non-GAAP


GAAP


Adjustments


Non-GAAP

Cost of revenues (exclusive of depreciation and amortization)(1)

$ 763,992


$      2,739


$ 766,731


$  2,409,183


$  (37,781)


$  2,371,402

Selling, general and administrative expenses(2)

$ 206,820


$  (42,979)


$ 163,841


$ 599,331


$ (107,692)


$ 491,639

Income from operations(3)

$ 176,979


$    45,947


$ 222,926


$ 408,072


$ 162,950


$ 571,022

Operating margin

15.2 %


3.9 %


19.1 %


11.7 %


4.7 %


16.4 %

Net income(4)

$ 136,346


$    42,740


$ 179,086


$ 351,234


$ 115,364


$ 466,598

Diluted earnings per share

$        2.37




$       3.12


$        6.04




$        8.02


Items (1) through (4) above are detailed in the table below with the specific cross-reference noted in the appropriate item.


Three Months Ended

September 30,


Nine Months Ended

September 30,


2025


2024


2025


2024

Stock-based compensation expenses

$         21,149


$         19,576


$     63,233


$     58,870

Poland R&D incentives(a)

—


(22,917)


(505)


(22,917)

Humanitarian support in Ukraine(b)

583


602


1,777


1,828

Total adjustments to GAAP cost of revenues(1)

21,732


(2,739)


64,505


37,781

Stock-based compensation expenses

23,455


22,548


68,385


63,729

Cost Optimization charges(c)

11,028


9,903


32,614


26,433

Other acquisition-related expenses

64


7,098


926


8,777

Humanitarian support in Ukraine(b)

3,375


2,955


10,389


7,694

Geographic repositioning(d)

—


28


—


853

One-time charges, net

2


447


182


206

Total adjustments to GAAP selling, general and administrative expenses(2)

37,924


42,979


112,496


107,692

Amortization of acquired intangible assets

18,220


5,707


53,712


17,477

Total adjustments to GAAP income from operations(3)

77,876


45,947


230,713


162,950

Foreign exchange loss

3,627


710


20,581


1,416

Gain on financial instrument

(350)


—


(700)


—

One-time benefit included in Interest and other income, net

—


(1,812)


—


(1,812)

Change in fair value of contingent consideration included in Interest and other income, net

1,556


1,492


(413)


4,027

Provision for income taxes:








Tax effect on non-GAAP adjustments

(17,254)


(3,855)


(55,455)


(28,882)

Tax shortfall/(excess tax benefits) related to stock-based compensation

188


258


751


(20,505)

Net discrete (benefit)/charge from tax planning(e)

(665)


—


2,799


(1,830)

Total adjustments to GAAP net income(4)

$         64,978


$         42,740


$   198,276


$   115,364



(a)

We have excluded from non-GAAP results the portion of the benefit from Poland R&D incentives related to qualifying activities performed in 2023 as it represents a nonrecurring one-time benefit.



(b)

Humanitarian support in Ukraine includes expenses related to EPAM's $100 million humanitarian commitment in response to Russia's invasion of Ukraine to support EPAM professionals and their families in and displaced from Ukraine. These expenses are incremental to those expenses incurred prior to the crisis, clearly separable from normal operations, and not expected to recur once the crisis has subsided and operations return to normal.



(c)

Cost Optimization charges include severance, facilities and contract termination charges incurred in connection with the programs initiated in the third quarter of 2023, second quarter of 2024, and second quarter of 2025. Consistent with the Company's historical non-GAAP policy, costs incurred in connection with formal restructuring initiatives have been excluded from non-GAAP results as these are one-time and unusual in nature.



(d)

Geographic repositioning includes expenses associated with the relocation to other countries of employees based outside of Ukraine impacted by the war and geopolitical instability in the region, and includes the cost of accommodations, travel and food. These expenses are incremental to those expenses incurred prior to the crisis, clearly separable from normal operations, and not expected to recur once the crisis has subsided and operations return to normal.



(e)

One-time charge or benefit related to the implementation of tax planning to disregard certain foreign subsidiaries as separate entities for U.S. income tax purposes. Consistent with the Company's historical non-GAAP policy, the charge or benefit related to the implementation of tax planning has been excluded from non-GAAP results as it is one-time and unusual in nature.

EPAM SYSTEMS, INC. AND SUBSIDIARIES

Reconciliations of Guidance Non-GAAP Financial Measures to Comparable GAAP Financial Measures

(Unaudited)


The below guidance constitutes forward-looking statements within the meaning of the federal securities laws and is based on a number of assumptions that are subject to change and many of which are outside the control of the Company. Actual results may differ materially from the Company's expectations depending on factors discussed in the Company's filings with the Securities and Exchange Commission.


Reconciliation of expected year-over-year revenue growth on a GAAP basis to expected revenue growth on an organic constant currency basis is presented in the table below:



Fourth Quarter 2025


Full Year 2025





Revenue growth (at midpoint of range)

11.1 %


15.0 %

Foreign exchange rates impact

(2.4) %


(1.3) %

Inorganic revenue growth

(4.3) %


(9.1) %

Revenue growth on an organic constant currency basis (at midpoint of range)

4.4 %


4.6 %

Reconciliation of expected GAAP to non-GAAP income from operations as a percentage of revenues is presented in the table below:



Fourth Quarter 2025


Full Year 2025

GAAP income from operations as a percentage of revenues

10.0% to 11.0%


9.4% to 9.7%

Stock-based compensation expenses

3.2 %


3.2 %

Included in cost of revenues (exclusive of depreciation and amortization)

1.5 %


1.5 %

Included in selling, general and administrative expenses

1.7 %


1.7 %

Humanitarian support in Ukraine(b)

0.3 %


0.3 %

Cost Optimization charges(c)

0.7 %


0.8 %

One-time charges and Other acquisition-related expenses(f)

— %


— %

Amortization of acquired intangible assets

1.3 %


1.3 %

Non-GAAP income from operations as a percentage of revenues 

15.5% to 16.5%


15.0% to 15.3%



(f)

 EPAM has not included the impact of potential future One-time charges including asset impairments, unusual gains and losses, and Other acquisition-related expenses because the Company is unable to predict these amounts with reasonable certainty.

Reconciliation of expected GAAP to non-GAAP effective tax rate is presented in the table below:



Fourth Quarter 2025


Full Year 2025

GAAP effective tax rate (approximately)

24.0 %


25.0 %

Tax shortfall related to stock-based compensation

(0.7) %


(0.3) %

Net discrete charge from tax planning(e)

— %


(0.1) %

Tax effect on non-GAAP adjustments

(0.3) %


(0.6) %

Non-GAAP effective tax rate (approximately)

23.0 %


24.0 %

Reconciliation of expected GAAP to non-GAAP diluted earnings per share is presented in the table below:



Fourth Quarter 2025


Full Year 2025

GAAP diluted earnings per share

$2.00 to $2.08


$6.75 to $6.83

Stock-based compensation expenses

0.80


3.13

Included in cost of revenues (exclusive of depreciation and amortization)

0.38


1.50

Included in selling, general and administrative expenses

0.42


1.63

Poland R&D incentives(a)

—


(0.01)

Humanitarian support in Ukraine(b)

0.05


0.27

Cost Optimization charges(c)

0.19


0.76

Amortization of acquired intangible assets

0.32


1.27

Change in fair value of contingent consideration

—


(0.01)

Foreign exchange loss

0.02


0.39

Provision for income taxes:




     Tax effect on non-GAAP adjustments

(0.29)


(1.28)

     Tax shortfall related to stock-based compensation

0.01


0.03

Net discrete charge from tax planning(e)

—


0.06

Non-GAAP diluted earnings per share

$3.10 to $3.18


$11.36 to $11.44

SOURCE EPAM Systems, Inc.

21%

more press release views with 
Request a Demo

Modal title

Also from this source

Revolutionizing QA: EPAM's Agentic QA™ Brings Human-AI Synergy to Software Testing

Revolutionizing QA: EPAM's Agentic QA™ Brings Human-AI Synergy to Software Testing

As software and product development cycles become increasingly accelerated, organizations often encounter costly shortcomings in production due to...

EPAM Launches AI/Run™.Transform to Accelerate AI-Native Transformation for the Enterprise

EPAM Launches AI/Run™.Transform to Accelerate AI-Native Transformation for the Enterprise

EPAM Systems, Inc. (NYSE: EPAM) today announced the launch of AI/Run™.Transform Playbook — the next-generation of integrated consulting services...

More Releases From This Source

Explore

Computer & Electronics

Computer & Electronics

Computer Software

Computer Software

Computer Software

Computer Software

Earnings

Earnings

News Releases in Similar Topics

Contact PR Newswire

  • Call PR Newswire at 888-776-0942
    from 8 AM - 9 PM ET
  • Chat with an Expert
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices

Products

  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • All Products

About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • Accessibility Statement
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Italy
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United Kingdom
  • Vietnam

My Services

  • All New Releases
  • Platform Login
  • ProfNet
  • Data Privacy

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact PR Newswire

Products

About

My Services
  • All News Releases
  • Platform Login
  • ProfNet
Call PR Newswire at
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookies
Copyright © 2025 Cision US Inc.