Short answer
EPAM Systems (EPAM) filed its fiscal 2024 10-K annual report with the SEC on Feb 28, 2025. It reported revenue of $4.7B (+0.8% year over year) and net income of $455M.
- Top risk flagged: Regulatory risk: Uncertainty in revenue recognition due to judgment in estimating variable consideration under U.S. GAAP revenue recognition rules
FY2024 key financial metrics · XBRL
- Revenue
- $4.7B
- +0.8% YoY
- Net income
- $455M
- +9.0% YoY
- Operating margin
- 11.5%
- +0.8 pp YoY
- EPS (diluted)
- $7.84
- +11.0% YoY
- ROE
- 12.5%
- +0.5 pp YoY
- Operating cash flow
- $559M
- −0.6% YoY
Source: XBRL data from the EPAM Systems (EPAM) FY2024 10-K on SEC EDGAR. USD.
EPAM Systems FY2024 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: global digital engineering and AI-enabled transformation services with strategy and experience consulting integration
- New emphasis on AI/GenAI platforms like EPAM AI/RUN™ and innovation initiatives such as DIALX Lab for advanced AI-driven solutions
- Strategic shift enhancing AI capabilities and cloud migration services to accelerate client digital transformation and innovation velocity
- Client retention strong with 65.4% revenues from clients ≥5 years; top 5 clients contribute 15.8% revenue in 2024, slightly down from prior years
- Noteworthy growth in multidisciplinary teams and proprietary global delivery platform supporting scalable agile software and technology transformation
Management Discussion & Analysis
- Sufficient cash, cash equivalents, and short-term investments expected to cover operating and capital expenditures for at least 12 months
- Geopolitical risks including Ukraine invasion may disrupt financial markets, increasing cost of capital, and adversely affect business and liquidity
- Potential need for additional funds through equity or debt issuance, risking dilution or restrictive covenants
- No material off-balance sheet obligations or contingent liabilities reported in this section
Risk Factors
- Regulatory risk: Uncertainty in revenue recognition due to judgment in estimating variable consideration under U.S. GAAP revenue recognition rules
- Geopolitical risk: Revenue impact from exit and sale of Russian holdings, reducing CEE region revenues from $22.9M in 2023 to immaterial in 2024
- Operational risk: Reliance on fixed-price contracts for maintenance/support with revenue recognized ratably, subject to risks in estimating progress and deliverables
- Market disruption risk: Growth in Financial Services vertical to 21.6% of revenues in 2024 vs. declines in Consumer Goods, Retail & Travel, Software & Hi-Tech verticals
- Financial risk: Client concentration decreased in 2024, with top client revenues as % of total declining, reducing dependency risk
Generated from the filing text; verify against the original. How to read a 10-K
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