Forensic Analysis · Technology / Software · as of Aug 12, 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.
B · Sound & dependable
Forensic grade
Safe
Financial health
13.5
Distress distance
Clean
Earnings quality
4
Forensic signals
217.4
P / E (ttm)
1.8%
ROE
$630M
Market cap
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 (red flags, auditor quality, say on pay, board independence). 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 B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 13.5, placing it in the Safe zone. 4 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 from -14% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+7.9%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +26% over the last 3 years to FY2025 (+7.9%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~7.9% 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 FY2022 has been diluted ~20%.
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. The cost of it is not in the cash flow — no cash left the business — it is in the count: holders gave up about 7.9% of the company a year, and that rate is not falling. That is the figure to weigh, not the share of free cash flow.
$139,000
FY2019–FY2019
Goodwill impairments.Took $139,000 of goodwill writedowns across 1 year (FY2019 ($139,000)) — about 1% of net income over the span. Writedowns mean past acquisitions underperformed what was paid for them.
Key fundamentals
Latest Revenue$411.8M
Revenue Growth YoY+17.5%
Revenue CAGR (3yr)+9.9%
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?