Gloo Holdings Q1 FY27 earnings call GLOO

Gloo is building the leading technology platform for the faith and flourishing ecosystem, leveraging applied AI as a defining capability. This large and fragmented ecosystem, spanning education, social impact, and churches, saw revenues for faith-based organizations grow 8.2% to over $265 billion in 2025. Gloo's platform addresses the consistent need for modernizing technology and expanding marketing reach to attract donors and constituents, organizing its offerings around 'powering technology' and 'powering reach'.

Q1 demonstrated strong momentum across both 'powering reach' and 'powering technology' segments. Masterworks, Barna, and Westfall delivered one of their best revenue quarters ever, highlighting the value of combining donor engagement with media, research, and fundraising. On the 'powering technology' side, Gloo 360 saw increased adoption, securing 5 new customers contributing over $1 million in annual contract revenue, including Assemblies of God and Indiana Wesleyan University, showcasing growing traction in new segments.

Gloo is actively building its AI capabilities and ecosystem. The company announced the general availability of Gloo AI Studios, a comprehensive suite of AI tools supporting over 80 LLM models, with new safety features and varied subscription options. This initiative aims to accelerate practical, mission-aligned AI solutions. Additionally, the 2026 4th annual Gloo hackathon will bring together over 700 developers to build mission-aligned apps and technology, further fostering innovation.

Acquisitions remain a key part of Gloo's strategy to strengthen its platform. The company closed the acquisition of EMD at the beginning of Q2, expanding its Workday consulting, implementation, and support capabilities for non-profits. Gloo also acquired the remaining 20% stake in Midwestern, bringing its ownership to 100% and eliminating a $12.1 million balance sheet liability. These acquisitions are strategically aligned to expand customer value and improve Gloo's margin profile by applying specialized engineering talent and Agentic AI to critical workflows.

Gloo made significant progress towards profitability in Q1, with adjusted EBITDA improving $7.1 million sequentially to negative $11.5 million. This improvement was driven by cost-saving actions and revenue growth, as operating expenses decreased $8.4 million sequentially while revenue grew 24%. The company expects to approach adjusted EBITDA breakeven in Q3 2026 and achieve profitability in Q4 2026, supported by $33 million in cash and cash equivalents as of April 30, 2026, providing sufficient liquidity for its growth plans.

Gloo is seeing strong cross-sell synergies, with customers adopting a second offering generating almost 2 times the revenue, and those with three or more offerings generating 5 to 10 times the volume of a single offering. The company views its total addressable market as enormous, with very low current penetration. Management emphasizes the significant runway for growth, driven by both new customer acquisition and the expansion of existing customer relationships across its diverse portfolio and newly entered segments like the Catholic community and universities.