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ACQUISITIONS
 12 Months Ended
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
ACQUISITIONS ACQUISITIONS
2025 Acquisition - During the year ended December 31, 2025, the Company completed one acquisition with a total purchase price of $8.8 million including contingent consideration with acquisition-date fair value of $0.9 million. This acquisition expanded EPAM’s AI-enabled business operations capabilities, as well as added $4.0 million of intangible assets, consisting of customer relationships. Pro forma results of operations have not been presented because the effect of this acquisition on the Company’s consolidated financial statements was not material.
First Derivative — On December 2, 2024, the Company acquired First Derivative Ltd (together with its subsidiaries, “First Derivative”) for a purchase price of $300.7 million. First Derivative is a Northern Ireland-headquartered managed services and consulting business for the capital markets industry with major delivery capability in the U.K., Ireland, North America and APAC.
NEORIS — On November 1, 2024, the Company acquired 99.7% of the outstanding shares of Neoris N.V. (together with its subsidiaries, “NEORIS”) for a purchase price of $626.3 million. NEORIS is a global advanced technology consultancy with approximately 4,800 professionals across major talent hubs in Latin America, Spain and the U.S. NEORIS specializes in delivering complex digital engagement and transformation projects for clients in the Americas and Europe. On January 2, 2025, the Company completed the acquisition of the remaining 0.3% of Neoris N.V.’s outstanding shares for a purchase price of $1.4 million in cash.
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the date of each respective acquisition and updated for any changes as of December 31, 2025:
First DerivativeNEORIS
Cash and cash equivalents$9,160 $63,470 
Trade receivables and contract assets46,410 79,474 
Prepaid and other current assets10,092 8,390 
Goodwill171,703 401,575 
Intangible assets124,809 259,000 
Property and equipment and other noncurrent assets3,999 22,188 
Total assets acquired$366,173 $834,097 
Accounts payable, accrued expenses and other current liabilities$31,560 $130,771 
Other noncurrent liabilities33,290 79,545 
Total liabilities assumed$64,850 $210,316 
Noncontrolling interest in consolidated subsidiaries— 1,358 
Net assets acquired$301,323 $622,423 
During the year ended December 31, 2025, the Company completed the purchase price allocation for the acquisition of First Derivative and the estimated fair values of the assets acquired and liabilities assumed have been finalized. The Company recorded an increase to purchase price of $0.6 million for First Derivative related to the completion of purchase price adjustments for cash, indebtedness, and net working capital and also adjusted certain working capital accounts resulting in a combined increase in the value of acquired goodwill of $1.3 million. The effect of adjustments recorded during the year ended December 31, 2025 that would have been recognized in a prior period if the adjustments to the preliminary amounts had been recognized as of the acquisition date of First Derivative was not material.
During the year ended December 31, 2025, the Company completed the purchase price allocation for the acquisition of NEORIS and the estimated fair values of the assets acquired and liabilities assumed have been finalized. The Company recorded a reduction to purchase price of $3.9 million for NEORIS related to the completion of purchase price adjustments for cash, indebtedness, and net working capital and also adjusted the fair value of assumed contingent consideration and certain working capital accounts resulting in a combined decrease in the value of acquired goodwill of $5.2 million. The effect of adjustments recorded during the year ended December 31, 2025 that would have been recognized in a prior period if the adjustments to the preliminary amounts had been recognized as of the acquisition date of NEORIS was not material.
The following table presents the estimated fair values and useful lives of intangible assets acquired from First Derivative and NEORIS:
First DerivativeNEORIS
Weighted Average Useful Life (in years)AmountWeighted Average Useful Life (in years)Amount
Customer relationships8$118,441 8$249,000 
Trade names56,368 510,000 
Total$124,809 $259,000 
The goodwill recognized as a result of the First Derivative acquisition is attributable to synergies expected to be achieved by enhancing EPAM’s industry experience and jointly delivering a comprehensive set of AI-enabled capabilities in the financial services vertical, expected future contracts, the assembled workforce acquired and other factors. The goodwill recognized as a result of the NEORIS acquisition is attributable to synergies expected to be achieved by expanding the Company’s ability to support clients across Latin America, expected future contracts, the assembled workforce acquired and other factors. The goodwill recognized as a result of these acquisitions is not expected to be deductible for income tax purposes.
During the year ended December 31, 2024, the Company recognized acquisition-related costs associated with the First Derivative and NEORIS acquisitions totaling $6.3 million and $7.8 million, respectively. Acquisition-related costs incurred during the year ended December 31, 2025 were not material. These costs are included in selling, general and administrative expenses in the accompanying consolidated statement of income.
During the year ended December 31, 2024, revenues generated by First Derivative and NEORIS included in the Company’s consolidated statement of income totaled $12.2 million and $53.7 million, respectively. During the year ended December 31, 2024, net income from First Derivative and NEORIS since the date of acquisition was not material. Pro forma results of operations have not been presented for First Derivative because the effect of the acquisition on the Company’s consolidated financial statements was not material.
Pro Forma Results of Operations for NEORIS
The following unaudited pro forma combined financial information is based on the historical consolidated financial statements of the Company and NEORIS after giving effect to the Company’s acquisition as if the acquisition occurred on January 1, 2023. The following unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that the Company would have reported had the transaction occurred at the beginning of these periods nor is it necessarily indicative of future results of operations.
The following table presents the unaudited consolidated pro forma results of operations for the years ended December 31, 2024 and 2023:
Year Ended December 31, 2024Year Ended December 31, 2023
Revenues$5,015,157 $5,013,488 
Net income$407,200 $399,973 
Other 2024 Acquisitions - During the year ended December 31, 2024, the Company completed three additional acquisitions with a total purchase price of $74.2 million including contingent consideration with acquisition-date fair value of $9.8 million. These acquisitions expanded EPAM’s geographical reach across Latin America and Europe, enhanced its capabilities in Life Sciences analytics, as well as added $20.3 million of intangible assets, consisting mainly of customer relationships. Revenues generated by the Other 2024 Acquisitions totaled $32.6 million during the year ended December 31, 2024. Pro forma results of operations have not been presented because the effect of these acquisitions on the Company’s consolidated financial statements was not material individually or in the aggregate.
2023 Acquisitions — During the year ended December 31, 2023, the Company completed two acquisitions with a total purchase price of $42.6 million including contingent consideration with acquisition-date fair value of $14.9 million. These acquisitions expanded EPAM’s capabilities in software design and product development, as well as added $13.9 million of intangible assets, consisting of customer relationships. Revenues generated by these 2023 Acquisitions totaled $8.2 million during the year ended December 31, 2023. Pro forma results of operations have not been presented because the effect of these acquisitions on the Company’s consolidated financial statements was not material individually or in the aggregate.