Gloo Holdings, Inc. Q3 FY2026 earnings call

• Revenue grew 432% year-over-year and 101% sequentially in Q3 2025. - Gloo serves the faith and flourishing ecosystem, with two core parts: churches/frontline organizations and Network Capability Providers. - Recently closed acquisitions include Igniter, XRI Global, and Westfall Gold. - Embedded values-aligned AI capabilities across offerings. - Customer momentum includes over 20 customers contributing over $1 million in annual contract revenue, and initiatives like developing biblically aligned AI with YouVersion. - M&A pipeline has increased since IPO, with planned acquisitions reinforcing the flywheel effect.

Revenue for the third quarter ended October 31, 2025 was $32.6 million, a 432% year-over-year increase and 101% sequential growth from Q2. Platform revenue totaled $19.8 million, an increase of $13.7 million from Q3 of the prior year and 127% sequential growth. Platform Solutions revenue was $12.7 million, up 71% sequentially. Cost of revenue was 76% in the quarter, but is expected to decline to below 50% over time.

• Q4 2025 guidance: Revenue between $28 million and $30 million; adjusted EBITDA loss between negative $19.5 million and negative $18.5 million. - 2026 guidance: Expect revenue in excess of $180 million; aim to achieve positive adjusted EBITDA by the end of Q4 2026, with meaningful sequential improvement in adjusted EBITDA beginning in Q1 2026.

Q: 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: They are buying from areas like Gloo 360 offering advanced technologies, Masterworks for donor engagement, and Midwestern for next-generation technologies.

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

A: The sales pipeline is robust, growing, and closing faster than expected, with acceleration seen in categories like bible translation and campus state areas.

Q: How much in synergy realization should be able to see going forward from acquisitions?

A: Synergy realizations across acquisitions are a factor for next year's drive to profitability, with efforts already underway and confidence in accelerating improvements in EBITDA next year.

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

A: The pipeline includes a large set of potential customers from Network Capability Providers, with significant opportunity in the ecosystem.

Q: Talk about the doctrine or guidelines informing M&A for Gloo.

A: M&A focuses on organizations connected to the platform, prioritizing accretive opportunities in revenue, EBITDA, and platform synergies, with a disciplined and strategic approach.

Q: How should we think about growth from upsell and conversion from the existing customer base versus new customers?

A: There is a balance between upsell/cross-sell from existing customers and organic growth from new customers, with Gloo 360 being a key area for new growth.

Q: What would be needed to accelerate acquisitions from the 2027 pipeline into 2026?

A: Discipline in strategy, ensuring acquisitions are strategic, accretive, and supportive of EBITDA profitability goals.

Q: How long does it typically take for acquisitions to see synergies?

A: Gloo has a disciplined process for business cases, with conservative planning for synergies, and expects organic growth alongside acquisitions.

Q: What was the mix of recurring revenue during the quarter?

A: Gloo does not break out recurring revenue specifically by segment, but it aligns with revenue categories like subscription, marketplace, advertising, and platform solutions.