$EPAM

EPAM Systems, Inc.

CIK:0001352010|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenues	$ 1,414,767	$ 1,353,443	$ 2,814,828	$ 2,655,135
Operating expenses:
Cost of revenues (exclusive of depreciation and amortization)	985,199	964,012	1,997,251	1,916,020
Selling, general and administrative expenses	245,245	231,681	484,947	450,598
Depreciation and amortization expense	32,101	31,274	63,640	62,711
Income from operations	152,222	126,476	268,990	225,806
Interest and other income (loss), net	(1,821)	3,519	(239)	9,333
Foreign exchange loss	(9,850)	(6,227)	(7,552)	(16,954)
Income before provision for income taxes	140,551	123,768	261,199	218,185
Provision for income taxes	37,572	35,742	75,699	56,677
Net income	$ 102,979	$ 88,026	$ 185,500	$ 161,508
Net income per share:
Basic (in usd per share)	$ 1.97	$ 1.56	$ 3.50	$ 2.86
Diluted (in usd per share)	$ 1.97	$ 1.56	$ 3.49	$ 2.84
Shares used in calculation of net income per share:
Basic (in shares)	52,197	56,319	52,991	56,548
Diluted (in shares)	52,267	56,536	53,220	56,898

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 185,500	$ 161,508
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment	63,640	62,711
Operating lease right-of-use assets amortization expense	20,717	20,581
Bad debt expense (recovery)	(934)	169
Deferred taxes	4,639	(6,090)
Stock-based compensation expense	96,320	87,014
Other	3,681	5,596
Changes in assets and liabilities:
Trade receivables and contract assets	(172,210)	(116,352)
Prepaid and other assets	(10,297)	4,210
Accounts payable	(12,475)	(243)
Accrued expenses and other liabilities	(153,550)	(60,706)
Operating lease liabilities	(19,945)	(21,573)
Income taxes payable	(43,870)	(59,465)
Net cash provided by (used in) operating activities	(38,784)	77,360
Cash flows from investing activities:
Purchases of property and equipment	(33,071)	(19,160)
Purchases of short-term investments	(1,703)	(2,038)
Proceeds from short-term investments	2,296	0
Acquisition of business, net of cash acquired	(307)	(3,346)
Purchases of non-marketable securities	(240)	(360)
Proceeds from non-marketable securities	0	2,913
Other investing activities, net	872	(1,531)
Net cash used in investing activities	(32,153)	(23,522)
Cash flows from financing activities:
Proceeds from issuance of stock under the employee incentive programs	14,318	34,579
Payments of withholding taxes related to net share settlements of equity awards	(22,852)	(23,338)
Proceeds from debt	180,000	0
Repayment of debt	(180,186)	(1,088)
Repurchase of common stock	(408,955)	(356,531)
Payment of contingent consideration for previously acquired businesses	(7,158)	(4,746)
Purchase of subsidiary shares from noncontrolling interest	0	(1,358)
Other financing activities, net	(516)	(1,087)
Net cash used in financing activities	(425,349)	(353,569)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(10,804)	55,820
Net decrease in cash, cash equivalents and restricted cash	(507,090)	(243,911)
Cash, cash equivalents and restricted cash, beginning of period	1,301,377	1,290,392
Cash, cash equivalents and restricted cash, end of period	$ 794,287	$ 1,046,481

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 789,397	$ 1,296,077
Trade receivables and contract assets, net of allowance of $3,939 and $6,350, respectively	1,268,036	1,108,201
Prepaid and other current assets	158,556	129,610
Total current assets	2,215,989	2,533,888
Property and equipment, net	204,967	202,387
Operating lease right-of-use assets, net	124,999	114,875
Intangible assets, net	372,969	406,586
Goodwill	1,203,048	1,210,564
Deferred tax assets	295,947	295,115
Other noncurrent assets	156,167	138,721
Total assets	4,574,086	4,902,136
Current liabilities
Accounts payable	41,551	55,329
Accrued compensation and benefits expenses	495,961	608,232
Accrued expenses and other current liabilities	208,531	250,688
Income taxes payable, current	19,093	25,520
Operating lease liabilities, current	39,301	37,173
Total current liabilities	804,437	976,942
Long-term debt	25,000	25,034
Operating lease liabilities, noncurrent	87,942	81,497
Deferred tax liabilities, noncurrent	74,505	76,969
Other noncurrent liabilities	62,901	63,886
Total liabilities	1,054,785	1,224,328
Commitments and contingencies (Note 13)
Stockholders’ equity
Common stock, $0.001 par value; 160,000 shares authorized; 51,585 shares issued and outstanding at June 30, 2026, and 54,274 shares issued and outstanding at December 31, 2025	52	54
Additional paid-in capital	1,487,973	1,390,423
Retained earnings	2,035,664	2,268,204
Accumulated other comprehensive income (loss)	(4,970)	18,545
Total EPAM Systems, Inc. stockholders’ equity	3,518,719	3,677,226
Noncontrolling interest in consolidated subsidiaries	582	582
Total equity	3,519,301	3,677,808
Total liabilities and equity	$ 4,574,086	$ 4,902,136