Gloo Holdings, Inc. Q4 FY2025 earnings call

• Glue focuses on providing technology solutions for the church-related ecosystem, identifying a large and underserved technology opportunity in this ecosystem. There are over 300,000 churches in the US alone and an enormous TAM in the network capability providers and churches. • The network capability providers, which are large mission-focused and philanthropically driven organizations, are a key revenue source. They are technology-deprived and Glue is stepping in to provide advanced technologies like AI, with offerings such as Glue360 where they take over the technology platform for these organizations. • Glue has been making acquisitions, which have been paying off in terms of efficiency, cost reduction, and helping acquired organizations grow faster. They are now focusing on profitability while integrating acquisitions. • AI is a major driver of growth, with Glue building trusted AI services, forward-deploying engineers, and using AI to enable agentic services that provide better value and efficiency to customers.

Glue has two main product segments. The network capability providers account for 70% of revenue, and churches and frontline organizations make up 30% of revenue. In 2025, the company ended the year with around $93 million in revenue. For 2026, the guidance was increased to $185 million. Regarding margins, this year they are progressing towards a mid-40s gross margin by the end of the year, and next year aiming for a low 50s gross margin across offerings.

• In Q4, Glue had a strong quarter, beating consensus in EBITDA range and revenue. • For 2026, the guidance was increased from $180 million to $185 million. • Q1 guidance shows significant improvement with EBITDA negative at $12 million compared to a previous $18.5 million negative. • The company publicly stated it will approach EBITDA profitability on an adjusted basis in Q3 and be solidly profitable in Q4.

Q: Talk about the relationship of how the 20 customers with a million dollars of ACV grow, and how the platform matures.

A: These customers can come through different doors like donor services, media network, or AI needs. They start with some use cases, and now landing million-dollar-plus deals is common. Glue is hiring more sales people and opening new segments like Christian universities.

Q: Flesh out what Glue360 platform is.

A: Glue360 is taking over chunks of the customer's infrastructure, starting with things like donor management systems or the entire infrastructure, modernizing, stabilizing, and productizing them, resulting in lower cost, better performance, higher security, and benefit from AI.

Q: How does Glue think about M&A?

A: There are many organizations servicing the community, and Glue has successfully brought in companies, which can accelerate their growth. This year is more focused on profitability and integrating existing acquisitions, with Westfall Gold being an example of a completed acquisition.

Q: Talk about AI within the ecosystem as a tipping point and how it's used in the platform.

A: AI has blown organizations away as they were laboring to keep up. Glue is building trusted AI services with flourishing AI benchmarks, forward-deploying engineers, and using AI to enable agentic services like chat interfaces that help with tasks like getting information for pastors.

Q: Talk about the vision in two to three years.

A: Glue sees continuing to gobble up more of the ecosystem, with Glue360, media and donor platform, and church platform all aiming to be billion-dollar-plus businesses, and being highly profitable and cash-generative.

Q: Talk about profitability at various stages and balancing margin expansion versus further investments.

A: Glue is very focused on reaching EBITDA profitability. Once achieved, there are more choices like more M&A, and they will continue to focus on generating cash, being efficient, and growing with the ecosystem.