Gloo Holdings, Inc. Q3 FY2025 earnings call

• Q3 has seen solid revenue growth driven by strong demand and acquisitions. • Gloo serves the faith and flourishing ecosystem, with two core parts: churches/frontline organizations and Network Capability Providers. • Recently closed acquisitions of Igniter, XRI Global, and plan to acquire Westfall Gold. • AI strategy focuses on vertical-specific, values-aligned AI, with acquisitions strengthening AI stack. • Secured 20 customers contributing over $1 million in annual contract revenue, with notable engagements like American Bible Society. • Platform benefits from flywheel effect, and M&A pipeline has increased

Revenue for the quarter was $32.6 million, an increase of 432% year-over-year and 101% sequentially. Platform revenue totaled $19.8 million, up $13.7 million from Q3 of last year and 127% sequentially. Platform Solutions revenue was $12.7 million, up 71% sequentially. Cost of revenue was 76%, an improvement from 81% in the prior year period. Adjusted EBITDA improved sequentially to negative $19.2 million, a $500 thousand improvement from Q2

• Q4 2025 revenue expected between $28 million and $30 million. • Q4 adjusted EBITDA loss expected between negative $19.5 million and negative $18.5 million. • 2026 revenue expected over $180 million, with $40 million from acquisitions (Westfall contributes ~$20 million). • Committed to positive adjusted EBITDA by end of Q4 2026, with sequential improvement in Adjusted EBITDA beginning in Q1 2026

Q: Congrats on a great quarter. Can you walk through what the more than 20 customers that should ramp to be over $1 million in annual contract value each are buying?

A: From Gloo 360, Masterworks, and Midwestern. Gloo 360 provides advanced technologies, Masterworks helps with donor engagement, and Midwestern brings next-generation technologies.

Q: What are the factors that gate how quickly those turn from deals to revenue?

A: Acceleration in pipeline and deal closure due to proof points in categories like bible translation and campus state.

Q: How much synergy realization can be seen going forward from acquisitions?

A: Synergy realizations across acquisitions and core businesses are a factor for EBITDA improvement next year, with efforts already underway.

Q: Update on investments in Gloo 360?

A: Ramping up sales force, taking on customers' staff, and augmenting AI and agentic capability.

Q: Should we expect typical seasonal back-end loaded linearity for 2026 booking performance for Gloo 360?

A: No, acceleration in pipeline and deal closure is seen.

Q: Any capacity issues with AI efforts?

A: No current capacity issues, with planning to build platform, capability, and cost structure.

Q: How many current customers have potential to be $1 million customers?

A: A large number in the $60 billion market of Network Capability Providers, with increased penetration inside existing customers.

Q: Compare and contrast services/capabilities from Masterworks vs Westfall?

A: Westfall is top end of donor pyramid for major donors, Masterworks is good at nurturing in between events and for smaller donors.

Q: Guidelines for M&A?

A: Prioritize accretive, strategic acquisitions that strengthen platform, with focus on revenue, EBITDA, and synergies.

Q: Growth from upsell/conversion vs new customers in 2026?

A: Balance between existing customer upsell/cross-sell and new customers, with deepening in categories.

Q: What needed to accelerate acquisitions into 2026?

A: Discipline in strategy, being strategic and disciplined.

Q: Time to see synergies from acquisitions?

A: Disciplined process with conservative business cases, and aggressive execution.

Q: Mix of recurring revenue during quarter?

A: Not broken out specifically, lines up with revenue categories like subscription, marketplace, etc.

Q: Direction of revenue mix for 2026?

A: Gloo 360 is a big grower in subscription, with Westfall Gold in Platform Solutions, and platform expected to grow faster than Platform Solutions