Gloo forecasts $190M 2026 revenue while targeting adjusted EBITDA profitability in Q4 2026 following EMD deal

Earnings Call Insights: Gloo Holdings (GLOO) Q4 fiscal 2025

MANAGEMENT VIEW

* "Q4 was a strong quarter for Gloo that exceeded our guidance" (CEO Scott Beck), adding "we more than quadrupled our revenue compared to the prior year period" and "we also exited 2025 with a much stronger balance sheet following our November IPO and the conversion of a significant majority of our debt into equity."
* "We remain confident in achieving adjusted EBITDA profitability in Q4 2026 and continue to expect to approach adjusted EBITDA profitability in Q3" (CEO Beck), while positioning the strategy as "powering technology and powering reach" and stating, "we're leveraging the latest innovations in agentic AI" to "deliver significantly better outcomes at lower costs, while also creating higher margins for Gloo and highly durable revenue streams."
* "Today, we announced a definitive agreement to acquire Enterprisemarketdesk, known as EMD, a leading Workday Service Partner" (CEO Beck), and said, "Westfall Group has been immediately accretive since close, and we anticipate EMD will be immediately accretive upon close as well."
* "Revenue for the quarter was $33.6 million" and "adjusted EBITDA improved $0.7 million sequentially to negative $18.6 million" (CFO Paul Seamon), while highlighting margin and cash with "cost of revenue in the quarter was 76.5%" and "as of January 31, 2026, we had $57.3 million of cash and cash equivalents."

OUTLOOK

* "We continue to guide to first quarter revenue of $36 million" (CFO Seamon), and "for the quarter, we expect adjusted EBITDA loss to narrow to negative $12 million."
* "Our full year 2026 revenue outlook is now $190 million, which includes the addition of EMD" (CFO Seamon), adding, "we are confident in our ability to achieve this guidance without any additional acquisitions" and "we continue to expect meaningful sequential improvement each quarter and expect profitability in Q4 2026."
* Compared with the prior call, "we expect to nearly double revenue in 2026 to over $180 million" and "we are also assuming that $40 million of the $180 million will come from incremental acquisitions" (CFO Seamon, Q3), versus "$190 million" including EMD and "without any additional acquisitions" (CFO Seamon, Q4).

FINANCIAL RESULTS

* "Revenue for the quarter was $33.6 million" (CFO Seamon), with mix details: "platform revenue totaled $20.1 million" and "platform solutions revenue was $13.5 million"; he said sequential performance was supported as "much of the sequential growth was driven by Gloo 360 and Igniter" and "platform solutions revenue was $13.5 million, up 6% sequentially, supported by strong performance from Barna and the addition of Westfall Group."
* "Cost of revenue in the quarter was 76.5%, an improvement from 83.4% in the prior year period" (CFO Seamon), and "we expect improvement to continue throughout the year."
* "There are also 2 important noncash items to note that significantly reduced net income in the quarter" (CFO Seamon): "share-based competition was higher than normal due to nonrecurring IPO-related award activity" and "loss from the change in fair value of financial instruments" that "reflects derivative calculations affected by our share price" and "pressured net income and therefore, EPS."

Q&A

* Richard Baldry, ROTH: asked about "the 2 customers that are nearing $10 million a year in revenue"; Executive Chairman Patrick Gelsinger said "these customers are now taking more of the different offerings of Gloo" and cited bundling "Masterworks, Westfall Gold, Gloo 360, AI" as driving "very large" relationships.
* Richard Baldry, ROTH: asked whether the "$1 million-plus deals" funnel is changing; Executive Chairman Gelsinger said "it is just getting bigger," "we're also seeing the sales cycle, if anything, shorten," and pointed to replicability in "the university segment" and "the campus ministry segment."
* Richard Baldry, ROTH: asked how far along AI rollout is and internal adoption; Executive Chairman Gelsinger said AI is "very early" and "we see tremendous opportunity," while CEO Beck added, "AI is actually driving a lot of demand for Gloo 360" because customers "not being able to fully keep up."
* Yun Suk Kim, Loop: asked if scaling Gloo 360 drives margin improvement; CFO Seamon answered, "Gloo 360 is definitely key each quarter" and tied it to "AI rolled into that."
* Yun Suk Kim, Loop: asked for EMD revenue and margin profile; Executive Chairman Gelsinger said "we're not giving specific sizes on the deal itself" but emphasized "accretive from day 1" and that "40-plus percent and growing of 360 customers are already using Workday."
* Matthew Harrigan, Benchmark: asked early reaction to Gloo AI Studio; Executive Chairman Gelsinger said "super early" but noted "early positive anecdotal signals" and that they are tracking "token count rising, API calls, revenues start to materialize."
* Jason Kreyer, Craig-Hallum: asked about more M&A in fiscal 2026; CEO Beck said there is a "significant pipeline" but "we need no more to be able to hit the numbers that we've got for guidance" and "need no more to be able to get to the EBITDA profitability."
* Ryan Meyers, Lake Street: asked about cost pressures and recurring revenue; CFO Seamon said "nothing stands out in terms of cost pressures," and CEO Beck said revenue is becoming "locked-in recurring revenue" as Gloo "pull work out" and create "very, very durable" relationships.

SENTIMENT ANALYSIS

* Analyst sentiment was slightly positive, with repeated congratulations and growth-focused probing such as "can you talk about sort of the funnel for $1 million-plus deals" (Richard Baldry, ROTH) and "any additional details" on EMD (Yun Suk Kim, Loop), indicating interest in scale, margins, and disclosure.
* Management sentiment was positive and confident in guidance and strategy, using high-conviction language including "we remain super confident in our strategy and our outlook for 2026" (CEO Beck) and "we remain focused on progressing towards adjusted EBITDA profitability in Q4" (CFO Seamon).
* Versus the prior quarter’s “first earnings call as a public company” framing (CEO Beck, Q3), the current call leaned more execution- and profitability-focused, centered on "more than 30% improvement in adjusted EBITDA from Q4" in Q1 guidance (CEO Beck) and accretive M&A integration.

QUARTER-OVER-QUARTER COMPARISON

* M&A shifted from announcing "our definitive agreement to acquire Westfall Gold" (CEO Beck, Q3) to stating "we successfully completed the acquisition of Westfall Group" and announcing the EMD agreement (CEO Beck, Q4).
* Guidance language moved from "expect revenue in excess of $180 million in fiscal year 2026" (CEO Beck, Q3) to "full year 2026 revenue outlook is now $190 million" (CFO Seamon, Q4), with a tighter M&A stance: "we are confident...without any additional acquisitions" (CFO Seamon, Q4) versus Q3’s "robust and actionable M&A pipeline" and "front half weighted" expectation (CFO Seamon, Q3).
* Analysts stayed focused on large-customer scaling and sales-cycle dynamics across both calls, while Q4 questions expanded into AI Studio monetization signals and Workday-driven cross-sell mechanics for EMD.

RISKS AND CONCERNS

* "January is seasonally slower for fundraising activity" (CFO Seamon), and Westfall "did not contribute to adjusted EBITDA" in the quarter due to that seasonality.
* Net income volatility drivers included "loss from the change in fair value of financial instruments" that is "affected by our share price" (CFO Seamon) and elevated noncash "share-based" expense tied to "nonrecurring IPO-related award activity" (CFO Seamon).
* On costs, management did not cite specific new pressures: "nothing stands out in terms of cost pressures" (CFO Seamon).

FINAL TAKEAWAY

Management emphasized a Q4 revenue print of $33.6 million, guided Q1 revenue to $36 million with adjusted EBITDA loss at (-$12) million, and raised full-year 2026 revenue outlook to $190 million including the EMD acquisition, while reiterating a target of adjusted EBITDA profitability in Q4 2026. Leadership repeatedly tied larger enterprise deals and improving margins to scaling Gloo 360, bundling across Masterworks/Westfall/Gloo 360/AI, and expanding applied AI offerings such as Gloo AI Studio, while flagging noncash items and seasonality as key factors shaping GAAP results.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/gloo/earnings/transcripts]

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