GDYNGrid Dynamics Holdings, Inc.
Is the business good?
The checks split: nothing decisive, though margins widening.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Efficiency-driven, thin margins turned over fast (the retail model). ROE 1% = margin × turnover × leverage.
All from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GDYN?
Grid Dynamics Holdings, Inc. earns −0.76% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 9.8 points below what the capital costs: growth destroys value
- Operating margin
- −0.51%
Operating margin · Information Technology Services median 8.0% · 12 months to Q2 2026
- Share count, year on year
- −4.0%
Share count, year on year · bought back, each share owns more of the company
- R&D as % of revenue
- 5.4%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | −14% |
| FY2021 | 0.02% |
| FY2022 | −6.8% |
| FY2023 | −1.8% |
| FY2024 | −0.60% |
| FY2025 | −0.46% |
Details›
- Gross margin12 months to Q2 2026
- 35%
- Operating margin12 months to Q2 2026
- −0.51%
- Net margin12 months to Q2 2026
- 0.68%
- Free cash flow margin
- 3.8%
- R&D as % of revenue
- 5.4%
- Revenue, trailing twelve months
- $423M
- Free cash flow, trailing twelve months
- $16M
- Net income, trailing twelve months
- $2.9M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −0.76%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Information Technology Services
Ranks #26 of 31 by RyuScore