Gloo Q1 Earnings Call Highlights

Key Points

• Gloo beat Q1 expectations with revenue of $41.5 million, up 238% year over year, and adjusted EBITDA loss of $11.5 million, which was also better than guidance and consensus. Management said EBITDA improved sequentially for the third straight quarter and expects to approach breakeven in Q3 and turn profitable in Q4.
• The company raised full-year fiscal 2026 revenue guidance by $5 million to $195 million, citing strong momentum from platform growth, acquisitions, and improved margins. It ended the quarter with $33 million in cash and said it has enough liquidity to reach positive adjusted EBITDA.
• Customer expansion and AI-driven products are key growth drivers, including five new customers generating over $1 million in annual contract revenue and broader adoption of Gloo AI Studio, which already has more than 1,000 developers. Management also highlighted acquisitions like EMD and the remaining stake in Midwestern as additions to its platform and talent base.

Gloo NASDAQ: GLOO reported fiscal first-quarter revenue and adjusted EBITDA ahead of its own guidance and Wall Street consensus, as executives pointed to momentum from large strategic customers, recent acquisitions and growing demand for AI-enabled technology and marketing tools across faith-based and nonprofit organizations.

For the quarter ended April 30, 2026, Chief Executive and Co-founder Scott Beck said revenue was $41.5 million, up roughly threefold from the prior year and 13% above guidance and consensus expectations. Adjusted EBITDA was negative $11.5 million, also ahead of guidance and consensus, and improved by more than $7 million sequentially from the fourth quarter of fiscal 2025.

Beck said the quarter marked Gloo’s third consecutive period of sequential adjusted EBITDA improvement and reinforced management’s expectations that adjusted EBITDA will approach breakeven in the third quarter of fiscal 2026 and turn profitable in the fourth quarter.

Revenue growth driven by platform momentum and acquisitions

Chief Financial Officer Paul Seamon said first-quarter revenue rose 238% from the same period a year earlier and increased 23.5% from the fourth quarter. He attributed the year-over-year growth to momentum in several business lines, particularly Gloo360, as well as acquisitions including Masterworks and Midwestern.

Platform revenue totaled $24.1 million, up $15.6 million from the prior-year quarter and 19.9% from the fourth quarter. Platform solutions revenue was $17.4 million, an increase of $13.6 million from the same period in 2025 and about 29% sequentially.

Seamon said cost of revenue was 67.7% of total revenue, improving from 72.1% in the prior-year period. He cited improved margins at Gloo’s Workspace and Outreach business lines and a full quarter of Westfall Group contribution. Operating expenses declined $8.4 million sequentially while revenue grew 24%, helping drive the adjusted EBITDA improvement.

As of April 30, Gloo had $33 million in cash and cash equivalents. Seamon said the company believes it has enough liquidity to reach positive adjusted EBITDA in the fourth quarter, which management expects would put Gloo “on a path of sustainable, positive free cash flow growth in future quarters.”

Management raises full-year revenue outlook

Gloo raised its full-year fiscal 2026 revenue outlook by $5 million to $195 million. For the second quarter, the company expects revenue of $44 million and an adjusted EBITDA loss of $8.5 million. Management also reiterated that adjusted EBITDA is expected to approach breakeven in the third quarter and reach profitability in the fourth quarter.

Seamon said the company expects a weighted average share count of approximately 81 million shares in the second quarter.

Large customer wins and cross-selling remain key themes

Beck said Gloo is building a technology platform for what the company calls the “faith and flourishing ecosystem,” serving markets that include education, social impact, Bible translation, churches and denominations. He said organizations in those markets consistently need to modernize technology and expand marketing reach to attract donors and constituents.

During the quarter, Gloo reported five new customers contributing more than $1 million in annual contract revenue. Beck highlighted Assemblies of God, which is using Gloo360 to modernize legacy systems serving 13,000 churches in the United States, and Indiana Wesleyan University’s Wesley Seminary, which is partnering with Gloo to build VIA Journeys, an AI-powered ministry life cycle ecosystem.

In response to an analyst question, Executive Board Chair and Head of Technology Pat Gelsinger said most large customers initially adopt one product area and later expand. He said 30% of Gloo’s customers with more than $1 million in revenue are using more than one offering, meaning most are still on a single offering.

“Typically, a sale will be a single product area that we then expand one or two quarters later over time,” Gelsinger said.

Beck said customers that adopt a second offering can generate “almost two times” the revenue, while customers using three or more offerings can reach “five to 10 times” the volume of a single offering. He said growth is coming from both new customer wins and expansion within existing accounts.

AI initiatives and acquisitions expand the platform

Gloo said it made Gloo AI Studio generally available during the quarter. Beck described the product as a set of AI tools and capabilities for developers in the faith and flourishing ecosystem, including support for more than 80 large language models, safety capabilities, subscription options for token usage and a free sandbox with values-aligned guardrails.

Gelsinger said early feedback on Gloo AI Studio has been strong and noted that more than 1,000 developers are now on the platform. He said the offering will be featured in Gloo’s virtual AI hackathon events and its larger in-person Gloo AI Hackathon in Boulder, Colorado, in October.

Acquisitions also remained a major focus. Beck said Westfall Group and Masterworks delivered one of their best revenue quarters ever. Gloo signed a purchase agreement in the first quarter to acquire EMD, which closed at the beginning of the second quarter. Beck said EMD expands Gloo’s technology offerings with Workday consulting, implementation and support capabilities for not-for-profit, small and mid-market organizations.

The company also announced it is acquiring the remaining stake in Midwestern, bringing ownership to 100%. Beck said Midwestern increases Gloo’s investment in cost-effective global talent capabilities. Seamon said eliminating the related call option will remove an associated $12.1 million liability from Gloo’s balance sheet and reduce future swings in the reporting line tied to changes in the fair value of financial instruments.

Management said its current guidance does not depend on additional acquisitions, though executives said the company continues to see a strong acquisition pipeline and would remain disciplined.

Executives cite opportunities in universities and Catholic institutions

During the question-and-answer session, executives highlighted opportunities in faith-based universities, rescue missions, Bible translation, campus ministries and Catholic institutions. Gelsinger said the company is seeing more pipeline in the university segment, and said there are more than 900 faith-based universities in the U.S.

Asked about Catholic organizations, Gelsinger said Gloo is still early in understanding repeatable sales patterns in that market but sees the segment as large and potentially referenceable because of its structure. He said the company has had the most success so far with technology offerings in that sector and sees potential for broader adoption over time.

Beck said the company remains focused on deepening customer relationships, scaling the platform, applying AI to customer workflows and integrating acquisitions while executing on its path to profitability.

About Gloo NASDAQ: GLOO

Gloo's mission is to build the leading vertical technology platform for the faith and flourishing ecosystem, which we believe is one of the largest, oldest and least-digitized ecosystems in the world. Our purpose is to shape technology as a force for good, so people can flourish and communities can thrive. This is grounded in our belief that relationships catalyze growth, and when technology is used to serve relationships, it transforms lives. The faith and flourishing ecosystem is vast and, we believe, a technologically underserved vertical that includes traditional Christian (primarily Protestant and Catholic) churches and a diverse network of ministries, nonprofits and service providers.

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