Shares of Grid Dynamics Holdings, Inc. (GDYN) surged 6.58% in after-hours trading following the release of its impressive third-quarter 2025 financial results and the announcement of a share repurchase program. The company reported revenues of $104.2 million, representing a 19.1% year-over-year increase and beating analysts' expectations of $103.70 million. The adjusted earnings per share of $0.09 met Wall Street estimates, while adjusted EBITDA of $12.70 million surpassed the consensus forecast.

Looking ahead, Grid Dynamics provided an optimistic outlook for the fourth quarter and full year 2025. The company expects Q4 revenues between $105.0 million and $107.0 million, with full-year 2025 revenues projected to reach $410.7 million to $412.7 million, representing a robust year-over-year growth of 17.1% to 17.7%. Additionally, management expressed confidence in improving margins by at least 300 basis points over the next 12 months, further bolstering investor sentiment.

The company's board of directors authorized a $50.0 million share repurchase program, signaling confidence in Grid Dynamics' financial position and commitment to enhancing shareholder value. The strong performance was driven by growth in key verticals, with the Technology, Media, and Telecom (TMT) sector surpassing Finance to become the largest revenue contributor at 27.4%. Notably, AI-related revenue grew 10% sequentially, now accounting for over 25% of organic revenue, highlighting the company's successful focus on high-growth, innovative technologies.