Gloo Holdings, Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenue for Q2 2026 was $46.6 million, representing 188% year-over-year growth compared to the prior-year period.
• Net loss narrowed to $21.2 million for Q2 2026, compared to a net loss of $44.1 million in Q2 2025.
• Adjusted EBITDA was negative $8.3 million for Q2 2026, beating guidance of negative $8.5 million and analyst consensus of negative $8.6 million.
• Adjusted EBITDA improved sequentially by $3.2 million from negative $11.5 million in Q1 2026, marking the third consecutive quarter of improvement.
• Deferred revenue increased to $18.072 million as of July 31, 2026, from $14.581 million as of January 31, 2026.
• Cash and cash equivalents were $39.282 million as of July 31, 2026, down from $57.307 million as of January 31, 2026.
• Total debt increased to $37.416 million (current $5.121 million + non-current $32.295 million) as of July 31, 2026, from $35.297 million (current $5.812 million + non-current $29.485 million) as of January 31, 2026.
• Total assets were $271.134 million as of July 31, 2026, compared to $263.659 million as of January 31, 2026.
• Total liabilities were $111.547 million as of July 31, 2026, compared to $105.977 million as of January 31, 2026.
• Stockholders' equity was $155.823 million as of July 31, 2026, compared to $154.123 million as of January 31, 2026.
• Net cash used in operating activities for the six months ended July 31, 2026, was $27.959 million, compared to $44.226 million in the prior-year period.

Guidance and Future Outlook

• Fiscal year 2026 revenue guidance was raised to $200 million.
• Q3 2026 revenue guidance is $55 million, representing a 69% increase compared to the prior-year period.
• Q3 2026 Adjusted EBITDA is expected to be negative $3.5 million, indicating continued sequential improvement and alignment with expectations to approach break-even.
• Management expects to achieve Adjusted EBITDA profitability in the fourth quarter of fiscal 2026.
• Operating expenses are expected to remain approximately flat in absolute dollars for the full year 2026 despite revenue more than doubling from the prior year.

Business Segments and Product Lines

• Gloo now has over 30 customers each generating $1 million+ in annual contract value.
• The company reached a milestone with its first customer exceeding $10 million in annual contract value in the second quarter.
• Universities are emerging as a meaningful growth vertical, with over forty universities currently served, including Indiana Wesleyan University, Jessup University, the University of Northwestern, and Whitworth University.
• Gloo Code, a new agentic building capability within Gloo AI Studio, was announced on September 8, 2026, to help developers pair purpose-built agents with the right model for each task.
• The fourth annual Gloo AI Hackathon is scheduled for October 6-8, 2026, in Boulder, Colorado.
• Since its public market debut, Gloo has announced five strategic acquisitions: XRI Global, Westfall Group, Enterprisemarketdesk, its remaining ownership stake in Midwestern Interactive, and Cedarstone.
• Enterprisemarketdesk acquisition was completed in the second quarter.
• The acquisition of the remaining stake in Midwestern Interactive was completed in August 2026.
• The acquisition of Cedarstone, an integrated business services firm specializing in finance and development outsourcing, was completed in August 2026.

Market and Competitive Landscape

• The faith and flourishing market is growing at more than double the pace of annual US GDP.
• The market is described as historically fragmented and underserved.
• Organizations in the sector are under increasing pressure to modernize technology, operate more efficiently, strengthen donor development, and scale their missions.
• Gloo serves over 140,000 faith, ministry, and nonprofit leaders.

Risks and Challenges

• The company has not provided a reconciliation of its forward outlook for Adjusted EBITDA to its most directly comparable GAAP financial measure, citing the inability to predict with reasonable certainty the amount and timing of adjustments related to interest expense, changes in the fair value of certain financial instruments, equity-based compensation, employee stock transactions, and related tax effects.
• Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other factors, including those detailed in the Annual Report on Form 10-K for the year ended January 31, 2026, and the Quarterly Report on Form 10-Q for the quarter ended July 31, 2026.

Management Commentary and Tone

• CEO Scott Beck stated that the second quarter results show the strategy is on track and that more organizations are trusting their business to Gloo and its Capital Partners.
• CFO Paul Seamon noted that financial performance has improved every quarter as a public company, reflecting consistent execution and increasing operating leverage.
• Management expressed confidence in achieving Adjusted EBITDA profitability in the fourth quarter of fiscal 2026.

Other Key Points

• Subsequent to the quarter close, Gloo extended the term of its senior secured loan of $13.2 million by one year to April 2028.
• A follow-on offering of Class A common stock generated $23.677 million in proceeds during the six months ended July 31, 2026.
• Acquisitions, net of cash acquired, resulted in $3.021 million in cash outflows during the six months ended July 31, 2026.
• Capitalized internal-use software costs were $5.886 million for the six months ended July 31, 2026.
• Equity-based compensation expense was $6.768 million for the six months ended July 31, 2026.
• The company announced plans to acquire the remaining stake of Midwestern Interactive, a prominent talent partner, which was completed in August 2026.