Grid Dynamics has in the past and may in the future be exposed to certain market and credit risks in the ordinary course of business, including exposure related to fluctuations in foreign currency rates, and on occasion and to a lesser extent, changes in interest rates and concentration of credit risk. In addition, Grid Dynamics’ international operations are subject to risks related to differing economic conditions, changes in political climate, differing tax structures, and other regulations and restrictions. See “Part I. Item 1A. Risk Factors” in our Annual Report on Form 10-K for additional information. Foreign Currency Exchange Rate Risk Grid Dynamics is exposed to foreign currency exchange transaction risk related to funding its non-US operations and to foreign currency translation risk related to certain of its subsidiaries’ cash balances that are denominated in currencies other than the U.S. dollar. In addition, Grid Dynamics’ profit margins are subject to volatility as a result of changes in foreign exchange rates. Grid Dynamics’ functional currency apart from the U.S. dollar includes Euro, British pounds, Mexican pesos, Polish zloty, Serbian dinars, and Indian rupees. When and where possible, Grid Dynamics seeks to match expenses of each entity to currencies in which revenues are generated, creating a natural hedge. In future periods, Grid Dynamics may also become materially exposed to changes in the value of Argentinian pesos against the U.S. dollar, due to expansion of operations in these countries. In the three months ended June 30, 2026, approximately 49.1% of Grid Dynamics’ $106.9 million combined cost of revenues and total operating expenses were denominated in currencies other than the U.S. dollar. Comparatively, approximately 50.1% of Grid Dynamics’ $101.2 million of combined cost of revenues and total operating expenses were denominated in currencies other than the U.S. dollar in the three months ended June 30, 2025. In the three months ended June 30, 2026: •a 10% decrease in the value of the Polish zloty against the U.S. dollar would have resulted in a $0.5 million increase in Grid Dynamics’ income from operations, while a 10% increase in the zloty’s value would have resulted in a $0.6 million decrease in income from operations. •a 10% decrease in the value of the Indian rupees against the U.S. dollar would have resulted in a $0.5 million increase in Grid Dynamics’ income from operations, while a 10% increase in the rupee’s value would have resulted in a $0.7 million decrease in income from operations. •a 10% decrease in the value of the Serbian dinars against the U.S. dollar would have resulted in a $0.4 million increase in Grid Dynamics’ income from operations, while a 10% increase in the dinar's value would have resulted in a $0.5 million decrease in income from operations. In the three months ended June 30, 2025: •a 10% decrease in the value of the Polish zloty against the U.S. dollar would have resulted in a $1.5 million increase in Grid Dynamics’ income from operations, while a 10% increase in the zloty’s value would have resulted in a $1.8 million million decrease in income from operations. •a 10% decrease in the value of the Indian rupees against the U.S. dollar would have resulted in a $0.5 million increase in Grid Dynamics’ income from operations, while a 10% increase in the rupee’s value would have resulted in a $0.6 million decrease in income from operations. 33 Table of Contents •a 10% decrease in the value of the Serbian dinars against the U.S. dollar would have resulted in a $0.1 million increase in Grid Dynamics’ income from operations, while a 10% increase in the dinar’s value would have resulted in a $0.1 million decrease in income from operations. In the six months ended June 30, 2026, approximately 48.7% of Grid Dynamics’ $214.7 million combined cost of revenues and total operating expenses were denominated in currencies other than the U.S. dollar. Comparatively, approximately 48.1% of Grid Dynamics’ $203.7 million of combined cost of revenues and total operating expenses were denominated in currencies other than the U.S. dollar in the six months ended June 30, 2025. In the six months ended June 30, 2026: •a 10% decrease in the value of the Polish zloty against the U.S. dollar would have resulted in a $1.0 million increase in Grid Dynamics’ income from operations, while a 10% increase in the zloty’s value would have resulted in a $1.3 million decrease in income from operations. •a 10% decrease in the value of the Indian rupees against the U.S. dollar would have resulted in a $1.0 million increase in Grid Dynamics’ income from operations, while a 10% increase in the rupee’s value would have resulted in a $1.3 million decrease in income from operations. •a 10% decrease in the value of the Serbian dinars against the U.S. dollar would have resulted in a $0.8 million increase in Grid Dynamics’ income from operations, while a 10% increase in the dinar's value would have resulted in a $1.0 million decrease in income from operations. In the six months ended June 30, 2025: •a 10% decrease in the value of the Polish zloty against the U.S. dollar would have resulted in a $2.9 million increase in Grid Dynamics’ income from operations, while a 10% increase in the zloty’s value would have resulted in a $3.5 million decrease in income from operations. •a 10% decrease in the value of the Indian rupees against the U.S. dollar would have resulted in a $0.9 million increase in Grid Dynamics’ income from operations, while a 10% increase in the rupee’s value would have resulted in a $1.2 million decrease in income from operations. •a 10% decrease in the value of the Serbian dinars against the U.S. dollar would have resulted in a $0.1 million increase in Grid Dynamics’ income from operations, while a 10% increase in the dinar’s value would have resulted in a $0.1 million decrease in income from operations. Grid Dynamics analyzes sensitivity to the zloty, rupees, and Serbian dinars separately because, in management’s experience, fluctuations in the value of these currencies against the U.S. dollar are frequently driven by distinct macroeconomic and geopolitical factors and have the largest effect on our results during the quarter ended June 30, 2026. Grid Dynamics manages its exposure to foreign currency fluctuations through hedging program under which the Company enters into short-term foreign exchange forward contracts designed as cash flow hedges of forecasted transactions denominated in Polish zloty. These contracts generally mature during six months or less. As of June 30, 2026, all foreign exchange forward contracts qualified for hedge accounting, with no collateral required to be posted.