The Company completed a 2025 acquisition to expand AI-enabled business operations and acquired First Derivative and NEORIS in late 2024, significantly enhancing capabilities in capital markets, Latin America, Spain, and Life Sciences analytics (page 13).

Revenues from Financial Services grew 34.3% (Q2 2025 YoY) and Emerging Verticals grew 28.7% (Q2 2025 YoY), benefiting from new clients gained through 2024 acquisitions and increased demand in pharmaceutical and energy sectors (page 21, 42).

The North America segment was renamed 'Americas' in 2025 to reflect the evolving geographic footprint and growth of operations, particularly in Latin America, indicating strategic regional focus (page 28, 39).

During Q2 2025, the Company initiated a new cost optimization program, including workforce reductions, to improve utilization and profitability, with an expected $17.0 million in additional charges (page 19).

Despite R&D tax incentives in Poland ($13.0M in Q2 2025) and improved utilization, cost of revenues as a percentage of revenue increased to 71.2% (Q2 2025) from 70.7% (Q2 2024), primarily due to 2024 compensation increases and higher variable compensation (page 38).

The Company continues to monitor and respond to difficult conditions in Ukraine, executing business continuity plans, reallocating work, and maintaining a $16.4 million remaining humanitarian commitment to support employees (page 12, 35).

The ongoing invasion of Ukraine and potential escalation, including Belarus, continues to pose material adverse effects on operations, personnel, and financial condition, with associated increased expenses and delivery disruptions (page 11, 35, 45).

The Company reported a foreign exchange loss of $6.2 million for the three months ended June 30, 2025, compared to a gain of $1.2 million in the prior year, primarily driven by fluctuations in foreign currencies on assets and liabilities (page 5, 39, 46).

As of June 30, 2025, the Company held $39.1 million in Ukrainian banks and $37.2 million in Belarusian banks, where the banking sector is unstable, deposits are uninsured, and Belarus has restrictions on dividend distribution (page 11, 45).

Americas segment revenues increased 16.0% to $801.4 million and EMEA segment revenues increased 21.7% to $524.8 million for Q2 2025 YoY, indicating strong market penetration and demand in core regions (page 20, 37).

Financial Services (34.3% Q2 YoY growth), Software & Hi-Tech (21.3% Q2 YoY growth), and Emerging Verticals (28.7% Q2 YoY growth) demonstrate strong performance, leveraging acquisitions and focus on technology clients (page 21, 41, 42).

EPAM leverages AI and GenAI to deliver transformative solutions, accelerating clients' digital innovation and enhancing their competitive edge, positioning itself as a leading business and experience consulting partner (page 11, 33).

Cost of revenues (exclusive of D&A) as a percentage of revenues increased to 71.2% for Q2 2025 from 70.7% for Q2 2024, and to 72.2% for H1 2025 from 71.2% for H1 2024, indicating pressure on gross margins (page 36, 38).

The Company initiated a 2025 Cost Optimization Program, including workforce reductions, to improve utilization and profitability, expecting approximately $17.0 million in additional charges (page 19).

The recognition of $13.0 million (Q2 2025) and $25.0 million (H1 2025) in R&D tax relief in Poland, recorded as a reduction to Cost of revenues, partially mitigated the increase in cost of revenues (page 24, 38).

EPAM is a global provider of digital engineering, cloud, and AI-enabled transformation services, actively leveraging AI and GenAI to deliver transformative solutions and enhance clients' competitive edge (page 11, 33).

The 2025 acquisition, with a total purchase price of $8.8 million, specifically expanded EPAM's AI-enabled business operations capabilities, demonstrating a strategic focus on advanced technology (page 13).

The Company recognized $13.0 million and $25.0 million in R&D tax relief in Poland for the three and six months ended June 30, 2025, respectively, indicating significant ongoing R&D investments (page 24, 38).

The Company repurchased 1,883 thousand shares for $354.9 million during the six months ended June 30, 2025, compared to 1,556 thousand shares for $335.1 million in the prior year, with $82.1 million remaining under the 2024 program (page 9, 27).

Purchases of property and equipment, a primary use of cash in investing activities, increased to $19.2 million for the six months ended June 30, 2025, from $11.5 million in the corresponding period of 2024 (page 9, 43).

Cash used for acquisitions of businesses, net of cash acquired, significantly decreased to $3.3 million for the six months ended June 30, 2025, compared to $56.7 million in the corresponding period of 2024, indicating a shift from large-scale M&A in the immediate period (page 9, 43).

EPAM announced a $100.0 million humanitarian commitment in March 2022, with $16.4 million remaining to be expensed as of June 30, 2025, demonstrating continued social responsibility efforts amidst geopolitical conflict (page 12, 29, 35).

The 10-Q filing primarily focuses on financial and operational aspects, with no specific new or escalating environmental commitments, social responsibility initiatives (beyond Ukraine aid), or governance practices beyond standard compliance mentioned (throughout the document).

The 2021 Employee Stock Purchase Plan (ESPP) enables eligible employees to purchase shares at a discount, and the 2025 Long Term Incentive Plan was approved to issue equity grants to Company personnel, fostering employee ownership and retention (page 25, 27).

Revenues for the first six months of 2025 were positively impacted by improving demand for the Company's services, contributing to a 14.8% year-over-year revenue increase to $2.655 billion (page 35).

The ongoing invasion of Ukraine and potential escalation, including Belarus, creates material adverse effects on operations, financial condition, and business outlook, leading to increased expenses and operational disruptions (page 11, 35, 45).

Foreign exchange movements resulted in a $6.2 million loss for Q2 2025 compared to a $1.2 million gain in Q2 2024, and while FX positively impacted reported revenue growth by 1.7% in Q2, constant currency analysis showed a potential decrease in income from operations (page 5, 39, 46).