Forensic Analysis · Software & SaaS · as of Nov 11, 2026
Grid Dynamics Holdings, Inc. (GDYN)
A forensic read on Grid Dynamics Holdings, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
12.2
Distress distance
Clean
Earnings quality
3
Forensic signals
1.8%
ROE
17.5%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Grid Dynamics Holdings, Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 12.2, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-0.6%
FY2025
Return on invested capital.Return on invested capital is -0.6% in the latest fiscal year and rising across FY2023–FY2025 from -2.7%. After-tax operating profit was ($4M) in FY2023 and ($1M) in FY2025, with operating income at -1.8% of revenue in FY2023, -0.6% in FY2024 and -0.5% in FY2025. The capital base behind it grew +55% across FY2023–FY2025, from $136M to $210M, and the return did not fall doing it, so the dollars added over that window earned at least the -2.7% the older base was already earning. FY2023's operating profit carried a $2M restructuring charge that alone took about 0.7 points off that year's return, so about 0.7 of the 2.1-point rise across FY2023–FY2025 is that charge leaving the base year rather than the capital earning more.
+7.5%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +16% over the last 2 years to FY2025 (+7.5%/yr). The count is growing — 75.2M shares in FY2023, 86.9M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~7.5% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~13%.
7% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 7% of revenue and 120% of free cash flow in FY2025 — about $0.35 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 7.5% a year across FY2023–FY2025 and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$411.8M
Revenue Growth YoY+17.5%
Revenue CAGR (2yr)+14.7%
Net Margin2.3%
Free Cash Flow$25.3M
Return on Equity1.8%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Grid Dynamics Holdings, Inc.'s actual 10-K/10-Q/8-K filings?