Annual Reports
EPAM Systems, Inc.'s annual reports contain management's most considered account of the business. These are the sections, passages and visual pages worth opening in the originals preserved in Sources.
EPAM Systems, Inc. — FY2025 Annual Report (Form 10-K) — FY2025
Latest 10-K: the fullest picture of EPAM's AI pivot, Ukraine-centered delivery model, and 2025 margin compression. · Open the full document →
Item 1. Business — Overview and Services — p. 5 · Read the full section →
How EPAM frames itself: 30+ years of software engineering now sold as AI-native transformation and consulting.
EPAM's self-description — engineering heritage repositioned around AI-enabled transformation.
EPAM has used its software engineering expertise to become a leading global provider of digital engineering, cloud and artificial intelligence-enabled transformation services, and a leading business and experience consulting partner for global enterprises and ambitious start-ups. […] We leverage AI to deliver transformative solutions that accelerate our clients' digital innovation and enhance their competitive edge. Through platforms like EPAM AI/RUN™ and initiatives like DIALX Lab™, we integrate advanced AI technologies into tailored business strategies, driving significant industry impact and fostering continuous innovation.
p. 5 · Read in context →
Item 1. Business — Global Delivery Model — p. 9 · Read the full section →
The delivery footprint is EPAM's edge and its concentration risk in one place — India now largest, Ukraine still ~8,750.
Delivery headcount by country at Dec 31, 2025: India ~12,200, Ukraine ~8,750, Poland/Belarus/Mexico following.
In 2025, India remained our largest delivery location, measured by the number of delivery professionals, and as of December 31, 2025, we had approximately 12,200 delivery professionals in this location. We continued to focus on growing India as a key delivery location and added approximately 2,150 delivery professionals since December 31, 2024.
Ukraine continues to be a significant delivery location for us and we had approximately 8,750 delivery professionals there as of December 31, 2025, compared with 8,764 delivery professionals as of December 31, 2024. Since the Russian forces' attack on Ukraine and its people began on February 24, 2022, our teams remain highly focused on maintaining uninterrupted production. Our highest priority remains the safety and security of our employees and their families in Ukraine as well as in the broader region, and we have continued to support relocating our employees to lower risk locations, both inside Ukraine and to other countries where we operate. The vast majority of our Ukraine employees are in safe locations and we continuously monitor the situation.
p. 9 · Read in context →
Item 1. Business — Human Capital — p. 11 · Read the full section →
A headcount business — total employees (62,850) and delivery utilization (~76.8%) are the real operating levers.
Employees and delivery utilization rates, three years shown.
As of December 31, 2025, 2024 and 2023, we had approximately 62,850, 61,200, and 53,150 employees, respectively, of which approximately 56,600, 55,100, and 47,350 were delivery professionals, respectively. […] For the years ended December 31, 2025, 2024 and 2023, the utilization rates of our delivery professionals were approximately 76.8%, 76.7%, and 74.3%, respectively.
p. 11 · Read in context →
Item 1A. Risk Factors — Risks Related to Geopolitical Events — p. 15 · Read the full section →
~14,100 delivery and support staff sit in Ukraine and Belarus; the war remains a genuine, company-specific delivery threat.
Roughly 14,100 personnel based in Ukraine and Belarus as of year-end 2025.
We have significant operations and personnel in Ukraine and Belarus. Ongoing conflict and disruption in the region following Russia’s invasion of Ukraine in February 2022 has had and could continue to have a material adverse effect on our operations, personnel, business, clients, service delivery, and financial results. […] In particular, as of December 31, 2025, approximately 14,100 of our global delivery, administrative and support personnel were based in Ukraine and Belarus, both of which are involved in or affected by Russia’s invasion of Ukraine.
p. 15 · Read in context →
Item 1A. Risk Factors — Risks Related to Artificial Intelligence — p. 16 · Read the full section →
Management concedes AI-based tools may replace its services and have already weighed on the share price — the bear case in its own words.
EPAM states AI competition has 'negatively impacted the price of our stock.'
Increased competition, or the perception of increased competition, from new and non-traditional market participants like AI-based task-specific tools, has negatively impacted the price of our stock. If a significant number of our existing or future clients employ AI-driven tools as a replacement for our services or the software we build, our revenues, anticipated growth and prospects, our financial condition, and our results of operations could be materially adversely affected.
p. 16 · Read in context →
Item 7. MD&A — Business Update Regarding the War in Ukraine — p. 42 · Read the full section →
Management's current-state read: Ukraine production back to pre-war productivity, $100M humanitarian pledge nearly spent.
Ukraine delivery at pre-war productivity; $10.1M of the $100M humanitarian commitment remains.
Russia’s attack on Ukraine has had, and could continue to have a material adverse effect on our operations. As of December 31, 2025, Ukraine continues to be a significant delivery location with a large number of delivery professionals operating from safe locations at levels of productivity consistent with those achieved prior to the attack. We have maintained our $100 million humanitarian aid commitment to our people in Ukraine, and as of December 31, 2025, we have $10.1 million remaining to be expensed under this humanitarian commitment.
p. 42 · Read in context →
Item 7. MD&A — Results of Operations — p. 44 · Read the full section →
The margin story: revenue up 15.4% to $5.46B, yet net income and diluted EPS fell as costs outran growth.
Revenue bridge for 2025: acquisitions added 9.2 points and FX 1.3 points of the 15.4% growth.
During the year ended December 31, 2025, our total revenues increased 15.4% from the previous year to $5.457 billion. Revenues from the first twelve months following each acquisition that was made in the fourth quarter of 2024, increased our revenues by 9.2% and fluctuations in foreign currency increased our revenues by 1.3% during the year ended December 31, 2025 as compared to the previous year.
p. 45 · Read in context →
Item 7. MD&A — Results by Business Segment — p. 49 · Read the full section →
Two segments (Americas, Europe) after the 2025 rename from North America; both saw operating margins compress.
2025 rename of the North America segment to Americas, reflecting Latin America growth (no restatement).
Starting in 2025, we renamed our North America segment to Americas. The new name reflects the evolving geographic footprint and growth of operations within the segment, particularly in Latin America. This constitutes a naming change only and no changes were made to amounts reported.
p. 49 · Read in context →
EPAM Systems, Inc. — FY2022 Annual Report (Form 10-K) — FY2022
The war's first full year — features a Russia segment and an evacuation narrative both absent from later reports. · Open the full document →
Item 7. MD&A — Business Update Regarding the War in Ukraine — p. 32 · Read the full section →
The crisis-year snapshot: phased exit from Russia and employee relocation, versus FY2025's stabilization.
April 2022 phased exit from Russia and September 2022 agreement to sell remaining Russian holdings.
Prior to the attack in February 2022, Belarus and Russia were our second and third largest delivery locations by the number of delivery professionals, respectively. On April 7, 2022, the Company announced the beginning of a phased exit of our operations in Russia in close collaboration with our employees, contractors, and customers. We have discontinued services to certain customers located in Russia and on September 7, 2022, we executed an agreement to sell substantially all of our remaining holdings in Russia to a third party.
p. 32 · Read in context →
Item 7. MD&A — Results by Business Segment: Russia Segment — p. 43 · Read the full section →
EPAM still reported a Russia segment in 2022 — since eliminated entirely — swinging to an operating loss.
The since-eliminated Russia segment: a $13.5M operating loss in 2022 versus $32.5M profit in 2021.
During 2022, revenues from our Russia segment decreased $92.3 million relative to 2021 and represent 1.5% of total segment revenues during 2022 compared with 4.4% in 2021. The decrease in revenues was primarily attributable to decreased operations in Russia as we proceed with the phased exit from Russia while discontinuing services to customers there. Operating loss of our Russia segment was $13.5 million in 2022 compared to operating profit of $32.5 million in 2021. This decrease was largely driven by discontinuance of services to certain customers in Russia which led to reduced revenues, increased bad debt expense, and expenses incurred for services provided to those customers for which revenue was not recognized as collectability was not considered probable after announcing the discontinuance of services to customers in Russia.
p. 43 · Read in context →
More annual reports
EPAM Systems, Inc. — FY2024 Annual Report (Form 10-K) — FY2024 · 113 pages · Prior-year 10-K covering the NEORIS and First Derivative acquisitions and EPAM's return to growth. · Open →
EPAM Systems, Inc. — FY2023 Annual Report (Form 10-K) — FY2023 · 114 pages · The demand-slowdown year — revenue growth stalled after the post-invasion rebalancing. · Open →
EPAM Systems, Inc. — FY2021 Annual Report (Form 10-K) — FY2021 · 116 pages · Pre-invasion baseline: Belarus and Russia still ranked among the largest delivery locations. · Open →