GRID DYNAMICS HOLDINGS, INC. (GDYN) Business

ITEM 1. BUSINESS

Business Overview

Grid Dynamics Holdings, Inc. (“Grid Dynamics,” the “Company,” “we,” “us,” or “our”) is an Enterprise Artificial Intelligence (“AI”) transformation partner for the Fortune 1000. We combine deep AI expertise with proven enterprise-scale delivery to help clients identify where to invest in AI, deliver systems that work at scale, and capture real business value from AI deployments. The building blocks of AI have always been our foundation — distributed systems, real-time data, machine learning algorithms, and natural language processing. What has changed is that these capabilities have now converged into Enterprise AI.

This technical heritage is matched with business acumen. We solve the most pressing technical challenges and enable positive business outcomes for enterprise companies. A key differentiator is our nearly two decades of technology leadership and pioneering enterprise AI expertise. This is supported by deep capabilities and ongoing investment in data and machine learning platform engineering, cloud platform and product engineering, Internet of Things (“IoT”) and edge computing, and digital engagement services.

Founded in 2006, Grid Dynamics is headquartered in Silicon Valley with offices across the Americas, Europe, and India.

Industry Background and Grid Dynamics Strategic Differentiators

Grid Dynamics serves as the strategic architect and technical expert for Fortune 1000 companies transitioning into AI-driven enterprises. As the industry moves from automating business processes to automating decision-making itself, we provide the specialized engineering required to navigate this shift. Enterprises are increasingly moving away from off-the-shelf software toward custom-engineered solutions that leverage proprietary data, specific business processes, and competitive differentiators. This evolution drives significant demand for partners that can deliver AI implementations that work at enterprise scale and provide a measurable return on investment.

Our market position is defined by several key strategic differentiators:

•Preference for AI-Native Partners Over Generalist Consultancies

Enterprises increasingly seek partners with deep-rooted AI capabilities rather than general-purpose firms attempting to pivot into the space. Grid Dynamics, as an AI-native firm, is built upon a twenty-year track record of engineering the complex systems that now define Enterprise AI. In addition to those investments and training specialized talent, we have gained experience and insights from complex deployments at Fortune 1000 companies. We have developed over 40 pre-built, production-ready solution accelerators across AI, data platforms, and cloud engineering. This accumulated knowledge — ranging from technical architecture patterns to change management — compresses time-to-value that we believe provides us with a competitive advantage.

•Restructuring of the IT Services Workforce

The traditional IT services pyramid, which relied on large pools of junior developers, is being fundamentally restructured. Modern AI implementations require the inverse: senior engineers and data scientists who can design sophisticated systems and work alongside AI agents to increase productivity. We believe this structural shift provides us with a competitive advantage, as we prioritize experienced senior talent over volume staffing to handle the complexity of production-grade infrastructure.

•Engineering Mastery for the Agentic AI Age

The emergence of Agentic AI — systems where multiple AI agents collaborate autonomously to complete complex business processes — represents the next enterprise inflection point. Agentic AI systems must coordinate across workflows, maintain state, handle failures, and operate reliably at scale. Organizations attempting to deploy agentic systems without this foundation encounter the same reliability and scalability challenges associated with distributed enterprise software. Grid Dynamics’ strengths in distributed computing, fault-tolerant design, and high-performance enterprise systems directly address these challenges. The engineering disciplines that enable real-time commerce and mission-critical cloud platforms are essential for production-grade agentic AI.

•Rigorous Focus on ROI and Business Outcomes

1

Return on investment (“ROI”) has become a primary decision criterion for AI initiatives. Enterprises are moving past experimentation toward projects that deliver demonstrable value, such as increased revenue, reduced costs, or improved customer satisfaction. At Grid Dynamics, we tie AI implementations to concrete business outcomes through value measurement frameworks and possess the engineering depth to deliver systems at a global enterprise scale.

•Strategic Ecosystem Partnerships

Our strategic partnerships with major hyperscale cloud providers and leading platform AI companies are key to our enterprise strategy. These relationships are co-development partnerships that give us and our clients privileged access to emerging capabilities, accelerated innovation cycles, and solutions that leverage best-in-class technologies. Our partnerships facilitate enhanced joint solution development and co-selling opportunities, helping our clients employ and scale AI using the most advanced infrastructure available. The capabilities from these providers are then integrated, customized, and optimized for each enterprise’s specific needs.

•Solving the Production “Bottleneck”

We believe that the primary obstacle to further widespread AI adoption is not the models themselves, but the surrounding engineering: integration, observability, governance, and cost control. Our approach combines strategic advisory services with hands-on engineering to address these realities. By combining deep enterprise context with technical prowess, we help Fortune 1000 companies move from AI pilot programs to industrial-grade execution.

Our Approach

At Grid Dynamics, our strategic approach combines world-class engineering discipline with a specialized AI-native framework, enabling global enterprises to deploy business-driven solutions at scale. We serve as a strategic technology partner, providing the architecture and technical rigor required to transform complex challenges into competitive advantages.

•The GAIN Engagement Model

Our strategic foundation is the Grid Dynamics AI-Native (“GAIN”) engagement model. This model provides a development framework for software delivery in the AI era, which fundamentally rethinks team composition, engineering workflows, and delivery practices. The GAIN model represents a shift from effort-based development to AI and human collaboration optimized for global, enterprise-scale delivery, with emphasis on domain specialists, software architects, and experts in emerging technology.

This model addresses three critical enterprise challenges: identifying where to invest in AI, delivering systems that work at scale, and capturing business value from AI deployments. We enable AI-powered transformation in several areas including:

•Digital labor: Deploying AI agents that augment and automate the workforce.

•Enhanced customer experience: Creating customer-facing AI that drives engagement.

•New revenue streams: Developing AI-enabled products, services, and capabilities.

•Reduced risk: Implementing fraud detection, compliance, quality control, and safety systems.

•Co-Creation Strategy

We recognize that meaningful innovation requires service providers to help shape, not just execute, innovation programs. Grid Dynamics utilizes a co-creation model that integrates our senior-weighted engineering talent directly into client teams. This approach involves working side-by-side in technical, project, and program management, ensuring continuous knowledge transfer. As projects progress, clients gain the internal expertise to manage new skills and roles, supported by our digital transformation blueprints and industry accelerators.

•Accountability Through Value Measurement

Our approach anchors engagements to tangible business results rather than just resource allocation. Our Value Measurement Framework utilizes dashboards to provide stakeholders with clarity through integrated KPIs, progress updates, and satisfaction reviews. This customer-focused methodology helps ensure predictable quality, speed, and cost from initial concept to full-scale enterprise deployment.

•Strategic Ecosystem and Global Scale

2

Our technological expertise is enhanced by a senior-weighted workforce focused on Fortune 1000 companies and a comprehensive partnership ecosystem. Collaboration with hyperscalers, including Google Cloud, AWS, Microsoft Azure, and AI leaders like NVIDIA and Temporal Technologies, creates a flywheel effect that accelerates sales cycles and enables differentiated solutions. These partnerships contributed over 19% of our revenue in the year ended December 31, 2025.

With a global delivery model, we provide continuous development with U.S.-based leadership while optimizing for both quality and cost efficiency. Our strategic acquisitions of JUXT Ltd. (“JUXT”) in the United Kingdom and Mobile Computing S.A. (“Mobile Computing”) in Argentina in 2024 further strengthened our market position and expanded our addressable opportunities across Europe and the Americas.

Services and Solutions

Grid Dynamics delivers comprehensive services across the full spectrum of digital transformation. We focus on areas where AI, data, and cloud technologies create the most value. Our services are organized around client business outcomes rather than technical silos, ensuring our solutions address strategic priorities.

•Artificial Intelligence Services

Our AI services help enterprises move from experimentation to measurable impact through a four-stage process: prepare for AI readiness, identify high-value use cases, deliver robust infrastructure, and scale across the enterprise.

•AI-Readiness: We establish the foundation for successful AI adoption through strategy consulting, data modernization, rapid and deployment-ready prototyping, and Software Development Lifecycle (“SDLC”) transformation, helping enterprises break the cycle of pilot programs that never reach deployment.

•Identify AI Use Cases: We deploy AI across customer-facing, operational, and knowledge management scenarios. Applications span intelligent customer interactions that reduce costs while improving satisfaction, predictive AI for demand forecasting and operational optimization, autonomous workflows that complete complex multi-step processes without human intervention, knowledge systems that surface institutional expertise on demand, and generative capabilities that accelerate content creation, visual design, and document processing. Each implementation targets specific revenue, efficiency, or experience outcomes across industries.

•Robust AI Infrastructure: We deliver platforms that industrialize AI at scale. This includes agentic systems that autonomously execute business processes, orchestration layers that coordinate multiple AI models and workflows, production-grade management of large language models, unified semantic foundations for enterprise data, and AI-native development approaches throughout the software lifecycle. These capabilities enable enterprises to deploy AI with security, governance, and reliability.

•Enterprise AI Scale: We help enterprises gain enterprise-wide efficiency with deployment expertise gained from implementations across diverse industries and use cases. After establishing AI capabilities in one area, we help organizations expand to other business units, geographies, and use cases while maintaining governance and quality standards.

•Cloud Platform and Product Engineering

We modernize legacy systems and deliver cloud-native platforms that enable continuous delivery and operational excellence. Our services span application migration and re-architecture, AI-native SDLC, platform engineering, DevOps and AIOps automation, quality assurance (“QA”) automation, observability and site reliability engineering, and FinOps. We emphasize development that leverages cloud platforms for resilience, scalability, and automation while integrating AI capabilities from design through deployment.

•Digital Engagement

We deliver modular composable commerce platforms that enable integration of AI applications throughout the buying process — from defining the goals and requirements through purchase, delivery, and after-sales support. Our AI-powered approach to customer experience, discovery, and conversion centers on three capabilities: intelligent search that understands intent and context, our Merchandising Experience Platform (“MXP”) for centralized control of product presentation and promotions, and catalog enrichment that generates and enhances product content at scale. Additional capabilities include front-end engineering, customer 360 personalization engines, conversational AI search and recommendations, agentic commerce that autonomously completes shopping, conversational shopping and knowledge assistants and virtual try-ons, AI-powered digital experience

3

platforms (“DXPs”), loyalty programs, omnichannel order management and inventory systems, and AI focus groups that simulate customer feedback.

•IoT and Edge Computing

We assist manufacturers and logistics providers in implementing Physical AI to enhance operational safety and intelligence. Our IoT Control Tower offering serves as a centralized intelligence framework that enables clients to use operational data to create business value through customized predictive analytics and AI-driven guidance. We also provide engineering services to develop digital twin simulations for system modeling, collaborative robotics architectures to augment human labor, and edge computing solutions that facilitate real-time data processing for immediate operational response.

•AI and Data Platforms

We design and deliver the data infrastructure that powers AI and analytics at scale. This includes architectures that break down data silos and ensure quality, real-time streaming platforms that enable event-driven intelligence, analytics environments that support exploration and insight discovery, machine learning Ops systems that operationalize both traditional machine learning and large language models, multi-agent orchestration frameworks, and durable execution platforms for reliable long-running workflows. These platforms create the foundation for data-driven transformation across the enterprise.

Industry-Focused Verticals

Grid Dynamics focuses on large enterprises and Fortune 1000 companies.

During each of the years ended December 31, 2025 and 2024, we had one customer that accounted for 15.4% and 16.0% of our revenues, respectively. We generated approximately 57.7% and 55.7% of our revenues from our 10 largest clients during the years ended December 31, 2025 and 2024, respectively. We seek to expand our customer base and diversify our revenue streams while organizing our business around industry verticals where we have deep domain expertise and proven track records.

Grid Dynamics has strong vertical-specific domain knowledge backed by extensive experience. By merging technology with business processes, Grid Dynamics delivers tailored solutions in several key industry verticals. The following table presents our revenues by vertical and revenues as a percentage of total revenues by vertical for the periods indicated:

•Retail

Retail is a leadership vertical for Grid Dynamics where we serve major retailers and brands with solutions that drive measurable conversion improvements and operational efficiency. Our retail expertise spans AI-Powered Discovery through visual search, conversational AI, and intelligent merchandising; Composable Commerce with headless architectures and best-of-breed components; Omnichannel Fulfillment including real-time inventory, intelligent routing, and last-mile optimization; and Physical AI for in-store robotics, computer vision, and digital twin simulation. We work with department stores, specialty retailers, consumer electronics companies, and direct-to-consumer brands to transform how they engage customers and operate their businesses.

•Technology, Media and Telecom

We serve technology-native clients that demand cutting-edge AI capabilities at scale, including technology companies, media enterprises, and telecommunications providers with cloud platform engineering, AI-native application development,

4

data platforms, and scalability solutions. Our work in this vertical frequently involves delivering platforms and products that serve millions of end users. We believe technology companies value our cutting edge work while maintaining enterprise-grade reliability and scale.

•Finance

Finance represents our fastest-growing vertical, driven by strong fintech demand and deep banking relationships. We serve banks, insurance companies, wealth management firms, and fintech innovators with solutions spanning AI-powered, bitemporal analytics, agentic regulatory compliance automation, customer experience platforms, financial advisor AI copilots, and core banking modernization. The highly regulated nature of financial services demands both technical excellence and deep understanding of compliance requirements — capabilities we have built through our experience in the sector.

•Consumer Packaged Goods (“CPG”) and Manufacturing

We serve CPG companies and manufacturers with AI-powered operations solutions, including smart manufacturing, supply chain optimization platforms, IoT implementations, anomaly detection, predictive maintenance, visual process monitoring, digital twins, and collaborative robotics applications. Our AI capabilities enable these clients to connect assets, optimize processes, and drive efficiency across operations. Digital twin technology allows manufacturers to simulate changes before implementing them in physical facilities, reducing cost and risk, and accelerating innovation.

•Healthcare and Pharma

Leading companies leverage our cloud, app modernization, data science, and digital commerce solutions to accelerate drug discovery, product development, and time-to-market, optimize marketing and sales operations, and personalize customer experiences with valuable data insights and automation.

•Other Verticals

We also serve clients in other sectors where we believe our AI and engineering capabilities create significant value. Each vertical benefits from our core capabilities while requiring specialized domain knowledge and industry-specific solutions.

Geographic Presence and Global Delivery Model

Grid Dynamics operates a global delivery model, leveraging talent across the Americas, Europe, and Asia. This geographic footprint enables us to serve clients with continuous development, U.S.-based leadership, access to specialized talent pools, and delivery optimized for both quality and cost efficiency.

Our presence in the Americas is anchored by our Silicon Valley headquarters in San Ramon, California. We maintain offices across the United States for client engagement, solution architecture, and strategic delivery functions. We also have a growing presence in Mexico and Jamaica that supports nearshore delivery for North American clients. Argentina has emerged as a strategic delivery location in South America, while Mexico enables effective nearshore delivery with time zone alignment and cultural affinity for clients in the Americas.

Our European operations center in the United Kingdom where we have deep expertise and go-to-market positioning in banking and financial services markets. We maintain a presence across multiple European countries, providing both local market access and delivery capabilities.

India has become one of our top-two countries by headcount, representing a strategic expansion of our delivery capabilities with access to deep talent pools in AI, data engineering, and cloud platforms, while enabling cost-effective delivery at scale.

Our global footprint enables true continuous development cycles. Work progresses continuously as it moves across time zones. When teams in Europe and India conclude their workday, teams in the Americas continue to progress the project, and when the Americas teams finish, teams in India advance the work further. This round-the-clock development compresses project timelines, accelerates issue resolution, and provides clients with continuous forward momentum rather than the stop-start cycles typical of single-location delivery models. The result is faster time-to-market, steady progress visibility, and consistent quality. This model works particularly well for large-scale transformations, rapid development initiatives, and situations requiring continuous production support. In addition, an important element of our global strategy is to seek employees with the appropriate skills and cost structure across the relevant locations to optimize both the delivery of services and cost efficiency.

Customer-Focused Delivery Excellence

5

We believe our customer-focused delivery excellence framework differentiates Grid Dynamics through measurable outcomes, engineering precision, and accountability. This integrated methodology combines four core pillars that work together to help ensure client success:

•Value Measurement Framework

We provide transparency through dashboards that capture project progress, ROI, and risk in real-time. Integrated KPIs, progress updates, and satisfaction reviews ensure stakeholders remain informed so that projects perform to expectations. This data-driven approach is designed to keep clients aligned, accountable, and on track throughout the engagement lifecycle.

•Delivery Framework

Our delivery approach leverages AI-native development tools and our global engineering teams provide continuous development cycles. Real-time visibility into progress, combined with flexible engagement models tailored to each client’s business and product lifecycle, enables faster time-to-market while maintaining consistently high quality. Our AI-native development frameworks streamline the software development lifecycle from planning and code generation through testing and deployment, enabling teams to dedicate more time to value-added features while significantly reducing technical debt.

•Tech Leadership & Development Capabilities

We maintain a delivery engine driven by continuous R&D innovation and over 40 proprietary industry accelerators that address recurring enterprise challenges. Our engineering teams focus on business results, applying cutting-edge capabilities in Generative AI, Agentic AI, AI-enabled software development lifecycle, edge computing, and cloud-native modernization to deliver measurable impact rather than merely implementing technology for its own sake.

•Talent Management Framework

We recruit senior engineering talent and invest in development through Grid University, our comprehensive online education platform featuring thousands of hours of technical training. This commitment to ongoing learning is designed to ensure that our teams combine deep technical skills with cultural fit and the ability to rapidly adapt to emerging technologies.

Sales and Marketing

Grid Dynamics employs a consultative, relationship-driven sales approach focused on solving complex business challenges for Fortune 1000 enterprises. Our sales organization combines direct enterprise sales teams, strategic account management, partnership-driven business development, and thought leadership marketing.

Our enterprise sales teams focus on new logo acquisition within target Fortune 1000 accounts. These teams engage with executives, technology leaders, and others to understand strategic priorities and craft solutions that address business challenges. The sales cycle for enterprise deals typically ranges from three to nine months and involves technical validation, architecture discussions, and business case development.

Strategic account managers maintain and develop relationships with clients, identifying expansion opportunities, helping ensure delivery excellence, and serving as trusted advisors, who understand our clients’ businesses and needs.

Partnership-driven business development leverages our relationships with Google Cloud, AWS, Microsoft Azure, NVIDIA, and other technology leaders to generate opportunities through joint go-to-market initiatives, co-innovation projects, and ecosystem relationships that accelerate deal cycles.

Our marketing strategy emphasizes thought leadership, technical credibility, and demonstrable expertise. We invest in producing high-quality content, including white papers, case studies, technical blog posts, ebooks, solution briefs, webinars, demo videos, and conference presentations. We participate in industry conferences, partner events, and technology community gatherings, establishing Grid Dynamics as a recognized thought leader in AI transformation.

Competition

Grid Dynamics operates in competitive markets for AI and digital engineering services. We face competition from global IT services providers as well as firms based in Central and Eastern Europe (“CEE”), Latin America, and India. We believe the principal competitive factors in our business include technical expertise and industry knowledge, culture, reputation and track record for high-quality delivery, effective employee recruiting and retention, responsiveness to clients’ business needs, and financial stability. In addition, companies may choose to build capabilities in-house rather than engage outside providers.

6

We face competition primarily from:

•emerging mid-cap digital services companies, such as Globant S.A. and Endava plc.;

•large global consulting and outsourcing firms, such as Accenture plc, EPAM Systems, Inc., and Capgemini SE;

•India-based technology outsourcing IT services providers, such as Cognizant Technology Solutions Corporation, Infosys Technologies, Tata Consultancy Services Limited and Wipro;

•specialized AI and data science consultancies; and

•in-house IT departments of our clients and potential clients.

Competitive Strengths

We believe our principal competitive strengths in our business include deep technical expertise and industry knowledge, a culture of engineering excellence, a reputation and a track record for high-quality delivery, effective employee recruiting and retention, responsiveness to clients’ business needs, and our financial stability. Given our focus on complex digital transformation programs, technical employee base, and continuous development in new software technology, we believe Grid Dynamics is a leading provider in the IT services and consulting space. Our engineering-led model helps ensure technical excellence, deep understanding of how technology transforms business performance, and the ability to blend technical expertise with cultural fit in ways we believe traditional IT service providers cannot easily replicate.

We believe our position combining deep AI expertise with enterprise-scale delivery creates a structural competitive advantage. While competitors attempt to retrofit AI capabilities onto traditional service delivery models, we have built our approach from the ground up around AI. We have developed specialized talent, proven frameworks, production-ready accelerators, and customer-focused delivery excellence through extensive AI innovation.

Our combination of deep technical capabilities and business consulting focus enables us to provide differentiated value to both technology leaders and business innovators. This positioning, combined with our comprehensive partnership ecosystem, customer-focused delivery framework, and access to global technical talent, positions us to deliver quality, speed, and cost from initial concept to full-scale enterprise deployment.

Human Capital and Employees

People are critical to Grid Dynamics’ success. Our ability to attract, develop, and retain exceptional technical talent is fundamental to our business model and competitive position. As of December 31, 2025, Grid Dynamics had 4,961 personnel across the Americas, Europe, and India.

Recruitment and Retention

Grid Dynamics hires for both technical skills and cultural fit, with focus on recruiting exceptional global engineering talent. Our rapidly changing technological landscape demands that engineering personnel continuously acquire new proficiencies and skills. We target top technical talent from leading universities and maintain deep relationships with premier computer science programs worldwide.

Our hiring is demand-driven, based on current and projected client needs. We constantly review projections to ensure we maintain proper recruiting and training pipelines. Our geographical spread helps us avoid location constraints and accelerate identification and recruitment of top technical talent. Many of our engineering personnel hold bachelor’s or advanced degrees in computer science or related technical fields.

To attract, retain, and motivate IT professionals, we provide an environment and culture that rewards entrepreneurial initiative and performance. We offer challenging work on cutting-edge projects for high-profile Fortune 1000 clients, ongoing skills development initiatives through Grid University and external training programs, attractive career advancement opportunities, and a flexible work environment. Our employee value proposition emphasizes the opportunity to work with the most advanced technologies, solve complex problems with real business impact, and grow professionally in an organization that values technical excellence.

Grid Dynamics believes it maintains good working relationships with its employees and has not experienced any labor disputes. Our employees have not entered into collective bargaining agreements.

7

Training and Development

Our approach to talent development reflects a culture-first philosophy: to have our employees develop the expertise and other skills to earn the trust of business leaders, increasingly emerging as part of AI enterprise adoption, who combine a vision of business transformation with a deep understanding of modern technology’s possibilities.

We select, train, and promote our leadership based on four principles:

1.Global Integration — the demands of modern businesses transcend cultural and language boundaries; accordingly, we build teams that are distributed across countries, time zones, and reporting lines;

2.Partnership with Clients — we demand accountability and ownership of a client’s success, whether or not such success is a contractual matter, and understanding client goals and the ability to manage such goals across reporting lines are required for any leadership role within Grid Dynamics;

3.Technological Innovation — understanding AI-native transformation and successfully delivering strategic programs are impossible without a strong understanding of emerging technology, and deep knowledge of how cloud, big data, and AI transform the way corporations develop their businesses is a prerequisite for leadership roles; and

4.Education — as technology changes rapidly, our employees must adapt even more rapidly, and we offer many formal and informal training programs to ensure that professionals can continuously expand and enhance their capabilities.

Grid Dynamics dedicates significant resources to training and development of technical talent. Our Grid University online education platform provides thousands of hours of training content across over 250 courses in more than 30 learning tracks, covering emerging technologies, AI-first software development lifecycle methodologies, generative AI, agentic AI, context engineering, and other specialized domains. This comprehensive learning environment ensures that professionals can continuously expand and enhance their capabilities. Also, we sponsor employees’ participation in external training programs and certifications from technology leaders in both open-source and proprietary ecosystems.

Furthermore, we maintain partnerships with leading technology providers that enable our engineers to pursue advanced certifications and specialized badges. As of December 31, 2025, our engineers held over 1,600 hyperscaler certifications across over 100 different certification types. We also provide ongoing English language training at all delivery centers to maintain and enhance language skills necessary for effective client communication and global collaboration.

Internship Program

Grid Dynamics has a long-standing tradition of running internship programs for students and junior engineers. We run approximately 10 internship cycles annually, attracting over 16,000 applicants with high placement rates into billable roles. Each intern works with a mentor who helps them adapt, shares knowledge, and supports development of necessary skills. Our internship program focuses on big data, machine learning, AI, and other emerging technologies, creating a pipeline of engineers who have grown up with AI agents as core tools rather than attempting to retrofit new ways of working onto established practices.

Talent Management Framework

Our talent management framework leverages smart platforms and data-driven approaches to maximize team effectiveness. Our Team Data AI platform uses predictive analytics to assemble high-performing teams and allocate resources optimally. Our Skill Tree system maps engineers’ expertise and seniority for optimal role fit across projects. InGrid, our internal education program, enables employees to learn new technologies and pioneer new methodologies to keep client businesses ahead of technology curves. This systematic approach ensures that the right engineers with the right skills are matched to the right projects, maximizing value for clients and career growth for our people.

Intellectual Property

Protection of intellectual property rights is paramount to Grid Dynamics and our clients. We rely on a combination of trade secret, patent, copyright, and trademark laws, as well as confidentiality procedures and contractual provisions to protect our intellectual property and that of our clients.

We require employees, independent contractors, vendors, and clients to enter into written confidentiality agreements upon commencement of their relationships with Grid Dynamics. These agreements generally provide that any confidential or proprietary information disclosed or otherwise made available by Grid Dynamics must be kept confidential.

8

We customarily enter into non-disclosure agreements with our clients concerning the use of their software systems and platforms. Our clients usually own the intellectual property in the software or systems Grid Dynamics develops for them. We retain rights to our general methodologies, frameworks, and reusable components — including over 40 of our industry accelerators and proprietary delivery frameworks. Grid Dynamics and our clients often use open-source software to improve quality and reduce time-to-market, and we work closely with our clients' compliance departments to ensure compliance with their open-source licensing agreements and internal policies and maintain rigorous processes for managing open-source dependencies and license obligations.

Regulations

Due to the industry and geographic diversity of Grid Dynamics’ operations and services, we are subject to a variety of laws and regulations in the United States and the foreign jurisdictions in which we operate. Key regulatory areas include employment and labor laws, tax regulations, data privacy and protection, intellectual property laws, anti-corruption and anti-bribery regulations, export controls, and industry-specific regulations applicable to our clients’ sectors. See Item 1A, “Risk Factors—Risks Related to Regulations, Legislation and Legal Proceedings.”

We maintain compliance programs and internal controls designed to ensure adherence to applicable laws and regulations. Our ISO 27001 certification provides a framework for information security management that addresses many regulatory requirements. We regularly review and update our compliance programs to address evolving regulatory requirements and emerging risks. For further information regarding risks related to legal and regulatory compliance can be found in Item 1A, “Risk Factors—Risks Related to Regulations, Legislation and Legal Proceedings.”

Available Information

We are subject to the informational requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and, accordingly, file Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, with the Securities and Exchange Commission (the “SEC”). In addition, the SEC maintains a website (http://www.sec.gov) that contains material regarding issuers that file electronically, such as ourselves, with the SEC.

We maintain a website at www.griddynamics.com, to which we regularly post copies of our press releases as well as additional information about us. Our filings with the SEC will be available free of charge through the website as soon as reasonably practicable after being electronically filed with or furnished to the SEC. Information contained in our website is not a part of, nor incorporated by reference into, this Report or our other filings with the SEC, and should not be relied upon.