CINT

• Strategic Positioning in AI Market • Management identifies a large market gap: global AI spend is projected to hit $2.6 trillion (up 47% YoY) in 2026, but MIT research finds 95% of AI initiatives deliver no measurable business return, driven by poor organizational strategy rather than technology limitations. • CI&T's core focus is end-to-end AI deployment (building native capability inside client core operations) and AI monetization via value-based commercial models (rather than traditional headcount-based pricing), aligned with capturing value from the growing AI deployment demand. • CI&T has achieved seven consecutive quarters of double-digit organic growth, all built internally with no M&A activity, prioritizing organic investment over acquisition-fueled growth.

• Product and Partnership Highlights • Joined Anthropic's Claude Partner Network, with over 1,000 AI engineers certified on Claude, and Claude code integrated into CI&T Flow; the partnership will co-develop industry-specific solutions for financial services, retail, and consumer goods to open new enterprise accounts. • Announced a new strategic partnership with open-weight AI pioneer Mistral to power next-generation agentic enterprise solutions. • Launched two new thought leadership papers, open-sourced its Business Complexity Points (BCP) tool built over 10 years with Itau, published the Retail Tech Report: Agentic Edition, and launched the 2026 ESG Consumer Index. • Became the first software company in Latin America with SBTI-validated net zero targets.

• Talent and Operational Progress • Ended Q2 2026 with ~8,100 total professionals, with voluntary attrition of 10.1% at near-historic healthy levels; 100% of the workforce has been reskilled to work with AI natively, creating a pool of 6,700 internal AI builders ahead of market demand, which grows 50% YoY for enterprise AI deployment talent. • Last 12-month revenue per AI builder reached over $80,000 in Q2 2026, up 7% YoY, driven by AI monetization and value-based pricing, contributing to gross margin expansion. • Flagship offering Agentic Enterprise Reinvention helps enterprises redesign core operations to be agentic-native, delivering 60-80% of end-to-end core processes onto an agentic journey in months, differentiated by small senior engineering teams, lean process transformation expertise, and outcome-based pricing that creates natural land-and-expand revenue paths.

• Q3 2026 revenue is guided to be at least $145.7 million, representing 14.4% YoY growth (12.3% at constant currency).
• Full year 2026 revenue guidance has been upwardly revised to a range of $566 million to $578 million, implying 15.5% to 18% organic growth, including ~400 basis points of positive FX impact.
• Full year 2026 adjusted EBITDA margin guidance is set to a range of 15% to 17%, reflecting deliberate 2026 commercial investment, with sequential margin improvement expected through the second half of 2026 as planned.
• Management expects gross margin to continue improving sequentially over coming quarters as value-based commercial model adoption broadens, and adjusted EBITDA margin to improve sequentially as investments position CI&T for stronger growth in 2027 and beyond, with profitability expected to recover as new commercial models mature.

CI&T delivered record Q2 2026 net revenue of $142.8 million, 21.9% year-over-year organic growth, 14.1% at constant currency. By geography: Latin America grew 32.1% YoY (largest contributor), New Markets grew 26.3% YoY, and North America grew 10.2% YoY on a large mature base. By industry vertical: Financial services (CI&T's largest vertical) grew 36% YoY; Technology and telecommunications grew 68% YoY; Other verticals grew 25% YoY; Life Sciences grew 16% YoY; Retail and Industrial Goods grew 11% YoY; Consumer goods was the only outperformer with softer demand. By client cohort: Clients outside the top 10 grew 24.1% YoY, outpacing top 10 client growth of 19% YoY. Adjusted gross margin was 32.4%, up 180 basis points sequentially from Q1 2026. Adjusted EBITDA was $19 million, for an adjusted EBITDA margin of 13.3%. Adjusted profit was $8.7 million, for a 6.1% profit margin; adjusted diluted earnings per share was $0.07, down from $0.09 YoY.

• Consumer goods vertical demand is currently softer, creating a near-term headwind that management views as temporary.
• Appreciation of the Brazilian real against the U.S. dollar created a material year-over-year FX headwind that compressed adjusted gross margin and adjusted EBITDA margin in Q2 2026.
• Resumption of Brazilian payroll taxes created additional margin pressure that was offset by internal productivity gains in Q2 2026.
• Deliberate 2026 investment in commercial expansion and AI initiative scaling creates near-term margin compression, traded off for higher durable long-term growth.

Q: Asked to break down the impact of FX versus deliberate investments on the 200 basis point full-year EBITDA margin cut, and why investment levels will not stay at current elevated levels into 2027 and beyond. / A: 7 consecutive quarters of double-digit organic growth, 4x faster than peers, with 40% YoY pipeline growth and broad-based growth across all regions and client cohorts, all organic. The elevated Q2 investment was driven by surging AI deployment demand that required reshaping go-to-market, with part of this investment (specifically Agentic SDLC deployment) will reduce in coming quarters. Structural sales investment will remain long-term, with sales as a share of net revenue stabilizing between 8% (2025 level) and 12% (Q2 2026 level), around 10% long-term. This investment will be more than offset by continuing gross margin expansion and operating leverage across SG&A.

Q: Asked how broad-based financial services growth is, and what growth expectations are for the vertical for the rest of 2026. / A: 36% YoY overall growth in financial services, with the top client growing 27% YoY, meaning excluding the top client, the rest of the vertical grew faster than the 36% headline number. Growth is broad across all client sizes in the vertical, with strong underlying demand for AI deployment driving expansion. Financial services will remain CI&T's largest vertical, with clear high-impact use cases for efficiency and customer experience in banking driving continued growth, and all other verticals are also expanding.

Q: Asked what share of the 40% YoY pipeline growth is tied to Agentic SDLC, whether deal sizes are larger for this offering, and what is behind North America's Q2 growth deceleration. / A: 35-40% of current demand is for Agentic SDLC, with many traditional digital engagements being reshaped to this offering with new commercial models and higher margin profiles. CI&T is 5-10x ahead of competitors in this space, creating significant opportunity for competitive displacement. Deal sizes have increased over the past two quarters, but management has not yet confirmed if this is a sustained long-term trend. North America's Q2 deceleration is purely due to ad hoc seasonal factors and contract renewal gaps, with no systematic demand or competitive issues, and growth is expected to reaccelerate through the rest of the year.

Q: Asked what is driving the strong 68% YoY growth in technology and telecommunications, and what the key drivers of second-half margin improvement are. / A: Growth is driven by two factors: strong traction for Agentic SDLC with large existing telco clients, where CI&T's productivity differentiation resonates strongly, and new growing demand from large technology companies, a relatively new segment for CI&T that has grown alongside AI deployment demand and new model provider partnerships. Key drivers of second-half margin improvement include continuing sequential gross margin expansion from higher adoption of higher-margin value-based models, operating leverage across SG&A, and reduced one-time Agentic SDLC investment that was concentrated in Q2, partially offset by permanent structural sales investment that will remain.

Q: Asked how falling AI model token costs impact consumption-based pricing models, and how CI&T positions itself as model-agnostic across multiple frontier provider partnerships. / A: While token costs are falling, model capabilities are expanding so total token usage is increasing, and CI&T uses multiple model options (including open-weight models from Mistral) to manage costs. Consumption-based pricing will remain a relevant but minority part of CI&T's commercial model portfolio, combined with other models rather than being the primary offering. Clients do care about underlying models due to privacy, data control, and compliance requirements, and CI&T Flow is built to be fully model-agnostic, connecting to over 37 models to meet each client's specific geographic and regulatory needs, with in-house expertise to match models to specific tasks.