Gloo NASDAQ: GLOO reported fiscal fourth-quarter 2025 results that management said exceeded its guidance and capped what it described as a strong first year as a public company, while also outlining an acquisition plan and a path toward Adjusted EBITDA profitability in fiscal 2026.
CEO and co-founder Scott Beck told investors the company “more than quadrupled” revenue year-over-year in the quarter and ended the year with “a much stronger balance sheet” following its November IPO and the conversion of “a significant majority” of its debt into equity. Beck said Gloo is making progress toward profitability, pointing to first-quarter guidance that implies “more than 30% improvement in Adjusted EBITDA from Q4” and reaffirming confidence in reaching Adjusted EBITDA profitability in the fourth quarter of fiscal 2026, while “approach[ing]” that milestone in the third quarter.
Quarterly results and profitability focus
CFO Paul Seamon said fourth-quarter revenue totaled $33.6 million, up 418% from the prior-year period and up 3.3% sequentially from the third quarter. Seamon attributed the year-over-year change to “solid organic growth across our portfolio,” along with acquisitions of capital partner businesses, “most notably Masterworks and Midwestern.” He also noted the company’s results were achieved despite typical seasonality in the business.
Seamon broke revenue into two categories:
- Platform revenue of $20.1 million, up $13.8 million from the prior-year quarter and up 1.6% sequentially. Seamon said the sequential increase was driven by Gloo 360 and Igniter, partially offset by Masterworks advertising revenue that shifted into the third quarter.
- Platform solutions revenue of $13.5 million, up 6% sequentially, supported by Barna and the addition of Westfall Group.
Cost of revenue was 76.5% in the quarter, improving from 83.4% a year ago. Seamon said the improvement was driven by growth in higher-margin business lines and improved pricing in some areas, adding that the company expects improvement to continue throughout the year.
Adjusted EBITDA improved $0.7 million sequentially to -$18.6 million. Seamon said the change reflected “incremental gains across nearly all” Gloo businesses and capital partners and included Westfall acquisition costs that the company does not adjust out. He added that Westfall did not contribute to Adjusted EBITDA in the quarter because January is “seasonally slower” for fundraising activity.
Seamon also highlighted two non-cash items that weighed on net income in the quarter: higher-than-normal share-based compensation tied to “non-recurring IPO-related award activity,” and a loss from changes in the fair value of financial instruments that is influenced by the company’s share price.
As of Jan. 31, 2026, Gloo had $57.3 million of cash and cash equivalents, Seamon said.
Guidance: narrower EBITDA loss in Q1 and $190 million revenue outlook
For the first quarter of fiscal 2026, Seamon reiterated guidance for revenue of $36 million. The company expects the Adjusted EBITDA loss to narrow to -$12 million, which Seamon said would represent more than $6 million of sequential improvement as Gloo grows revenue, improves cost of revenue, and “continue[s] to aggressively manage operating expenses.”
For the full year 2026, Seamon said the company’s revenue outlook is now $190 million, which includes the addition of Enterprise MarketDesk. He said the company remains “confident in our ability to achieve this guidance without any additional acquisitions” while still seeing M&A opportunities. Seamon also said Gloo expects “meaningful sequential improvement each quarter” and profitability in the fourth quarter of fiscal 2026. For Q1, the company expects a weighted average share count of approximately 80 million shares.
M&A: Workday services addition and donor engagement expansion
Beck emphasized acquisitions as part of what he described as a “flywheel effect” that strengthens Gloo’s platform across two focus areas: “Powering Technology” and “Powering Reach.”
In prepared remarks, Beck announced a definitive agreement to acquire Enterprise MarketDesk (EMD), describing it as a leading Workday service partner providing consulting, implementation, and operating services to small and mid-sized organizations and not-for-profits. Beck said Workday is a “leading ERP platform” in the faith and flourishing ecosystem and “often the preferred solution for many” of Gloo’s enterprise customers, which he said creates “clear synergies.” He said EMD’s services include Workday deployments, application management services, and staff augmentation.
Beck said the EMD deal strengthens the “Gloo 360 value proposition” and helps customers modernize core systems, aligning with Gloo’s strategy of taking over and modernizing customer operations and applying “agentic AI” to deliver better outcomes at lower cost. He described Workday implementations as “long-cycle engagements” that can lead to larger digital transformation mandates.
During the quarter, Gloo also completed its acquisition of Westfall Group, which Beck called a platform for major donor engagement. He said the combination of Westfall and Masterworks strengthens Gloo’s fundraising and donor development capabilities. Seamon added that Westfall’s donor events and design business will primarily contribute to platform solutions revenue and, together with Masterworks, support customers’ fundraising throughout the year and around key events.
Management characterized both Westfall and EMD as “immediately accretive” upon close, with Beck saying Westfall has been “immediately accretive since close” and that Gloo anticipates EMD will be “immediately accretive upon close.”
When asked about the M&A environment, Executive Board Chair and Head of Technology Pat Gelsinger said Gloo views AI as “a friend” in the process and said the company does not see itself being negatively impacted by broader concerns around SaaS tools, arguing that Gloo can build AI-powered workflows on top of existing systems of record such as Workday, Salesforce, and church management systems.
AI strategy and customer momentum
Beck and Gelsinger repeatedly pointed to AI as both a strategic foundation and a driver of demand. Beck said Gloo’s platform is underpinned by “growing leadership in applied AI,” including the use of “agentic AI,” foundational models, and services from “top AI companies.” Beck described a model in which Gloo takes over technology operations, modernizes them, and applies AI to improve outcomes and reduce costs, while also creating “higher margins for Gloo and highly durable revenue streams.” He also compared the approach to “forward-deployed engineers” used by Palantir, aimed at building tailored solutions.
Gelsinger told analysts AI is in the “first inning” broadly and that many of Gloo’s customers are even earlier in adoption. He said internally the company is “further along” in using AI across different aspects of the business, with more opportunity to improve speed and margins.
On customer activity, Beck said the company is seeing larger strategic deals, with two customers “now expanding to almost $10 million of annual revenue.” During Q&A, Gelsinger said those customers are adopting more of Gloo’s offerings—citing Masterworks, Westfall, and Gloo 360 AI—leading to larger relationships that he believes can be replicated among other large customers in the ecosystem.
Beck also highlighted several agreements valued at more than $1 million, including an expansion in the university segment through work with Jessup University, which he described as the first example of bringing the full breadth of the platform to a large university. He also pointed to a strategic technology partnership with InterVarsity Christian Fellowship/USA, with Gloo 360 powering its enterprise technology operations across more than 700 U.S. campuses.
Separately, Beck said Gloo expanded its partnership with YouVersion in Brazil by establishing a co-located engineering presence alongside YouVersion’s regional hub.
Gloo also discussed the rollout of Gloo AI Studio. Beck said the company announced the offering recently, and Gelsinger described it as a set of API services and paid offerings intended to enable developers beyond Gloo. In response to questions, Gelsinger said early feedback has included interest from developers in moving applications built on other platforms onto Gloo AI Studio, and the company is tracking token usage, API calls, and early revenue indicators.
In closing remarks, Beck said Gloo’s long-term objective is “to build a large, profitable, mission-driven business,” adding that the company is committed to “discipline, transparency, and a focus on long-term value creation.”
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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