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GLOO
Earnings call · Jul 2026 (Q2 FY27)

Gloo Holdings Q2 FY27 earnings call GLOO

Sep 9, 2026 Source

Executive summary

Gloo Q2 FY27 — Strong Revenue Growth and Path to Profitability

Gloo delivered a strong Q2 FY27, marked by significant revenue growth driven by its applied AI platform and strategic acquisitions, while demonstrating improved cost discipline and a clear path to adjusted EBITDA profitability by Q4. The company is expanding its customer relationships and leveraging cross-selling opportunities across its diverse portfolio, with a focus on the underserved faith and flourishing ecosystem. Management highlighted the increasing efficiency and value delivery enabled by advancements in AI models. Note: The transcript consistently refers to fiscal year 2026, while metadata specifies fiscal year 2027 for the reporting period.

Highlights

5

  • Revenue increased 188% year-over-year to $46.6 million.

  • Adjusted EBITDA improved $3.2 million sequentially to -$8.3 million, approaching break-even in Q3.

  • Platform solutions revenue grew 209% year-over-year to $22.9 million.

  • Gross margin improved by 10.8 percentage points to 36.0%.

  • First customer exceeded $10 million in annual contract value, with over 30 customers now exceeding $1 million ACV.

Concerns

2

  • Adjusted EBITDA remains negative at -$8.3 million, though improving.

  • A restructuring charge of $4.4 million was incurred, primarily for severance costs.

Guidance & targets

CategoryTargetConfidence
Full-year Revenue
$200 million
high materiality
High
Q3 Revenue
$55 million
medium materiality
High
Q3 Adjusted EBITDA
-$3.5 million
high materiality
High
Q4 Adjusted EBITDA
profitability
high materiality
High
Full-year Operating Expenses
approximately flat
medium materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Platform solutions
Driven by Masterworks, Westfall Gold, and EMD.
$22.9 million209%——
Platform revenue
Driven by Gloo 360, Masterworks, and Workspace.
$23.69 million170%——

Product announcements

ProductTypeDetails
Glue Codelaunch

Deals & partnerships

EMD (Enterprise Marketdesk) Adds capabilities, expertise, customer relationships, and market access.

Acquisition closed in Q2 FY27, strengthening the broader Gloo platform.

Midwestern Interactive Acquisition of remaining ownership stake, adds talent pathway and forward deployed engineering capacity.

Acquisition closed in Q3 FY27, complementing existing offerings and enhancing talent.

Cedarstone Adds over 250 new mid-market network capability providers, offering accounting and donor services, with significant cross-selling opportunities.

Acquisition closed in Q3 FY27, bringing trusted relationships and expanding service offerings, particularly with Masterworks.

YouVersion Lead partner for the annual Gloo AI Hackathon.

Partnership aims to drive developer engagement and new application development for the faith and flourishing ecosystem.

Risks & headwinds

Negative Adjusted EBITDA Q2 FY27

-$8.3 million

Mitigation:Committed to achieving adjusted EBITDA profitability in Q4 FY27.

Restructuring costs Q2 FY27

$4.4 million

Mitigation:Primarily for severance costs related to the integration of business lines, part of efforts to improve cost structure.

What to watch in Q3 FY27

Adjusted EBITDA profitability

Q4 FY27
Current -$8.3 million (Q2 FY27)
Target profitability

Why it matters

Achieving profitability is a key financial commitment and indicates operational leverage and sustainable business model.

We continue to expect adjusted EBITDA to reach profitability in Q4 2026 as we maintain cost discipline.

Q&A highlights

How much of future P&L improvement will come from gross margin vs. operating expense synergies?

Scott Beck stated that while gross margin progress was good, future improvements would also see more leverage from operating expenses over the next couple of quarters.

“As we look forward, we're going to be seeing more leverage as well in the operating expenses. So you can expect that as we move forward over the next couple of quarters.”

asked by Richard Baldry · answered by Scott Beck

2 min read 5 chapters

Detailed narrative

Applied AI Leadership

Gloo emphasizes its leadership in applied AI for the faith and flourishing ecosystem, strengthening its platform with capabilities like Gloo AI Studio and AI-powered solutions such as Gloo 360. The company views advancements in frontier AI models as a powerful tailwind, enabling more efficient delivery of work and expanding operating margins. The newly launched Glue Code, an agentic building capability within Gloo AI Studio, aims to help developers optimize token usage and is timed with the annual Gloo AI Hackathon in October.

Market Opportunity & Strategy

The company operates in a large, growing, fragmented, and technologically underserved market, with faith-based organizations generating over $265 billion in revenue in 2025, growing at 8.2% from 2015. Gloo's strategy focuses on 'Powering Technology' and 'Powering Reach' through applied AI, helping organizations modernize systems, strengthen donor development, and scale their missions. This approach positions Gloo to deliver better outcomes with existing resources, addressing the need for modernization and efficiency.

Customer Momentum & Expansion

Gloo is deepening customer relationships, with over 30 customers now exceeding $1 million in annual contract value, and one customer surpassing $10 million ACV. New verticals like universities are emerging as strong growth areas, with over 40 universities in the client portfolio, addressing complex technology environments and donor development needs. The 'land, expand, expand' strategy is driving growth within existing customers and across segments, supported by formalized cross-selling incentives for the sales force.

Acquisition Strategy & Synergies

Acquisitions like EMD (Enterprise Marketdesk), Midwestern Interactive (remaining stake), and Cedarstone are core to building a stronger, more durable company. These integrations add capabilities, expertise, customer relationships, and market access, strengthening the broader Gloo platform. Cedarstone, for example, brings over 250 new mid-market network capability providers and offers significant cross-selling opportunities with Masterworks, contributing to a powerful flywheel for profitability by reducing duplication and improving revenue.

Financial Performance & Outlook

Gloo exceeded Q2 revenue and adjusted EBITDA guidance, with revenue up 188% year-over-year to $46.6 million and adjusted EBITDA improving sequentially to -$8.3 million. The company expects Q3 revenue of $55 million and adjusted EBITDA of -$3.5 million, driven by seasonal strength in Masterworks and Westfall Gold. Management reiterated its commitment to achieving adjusted EBITDA profitability in Q4 FY27 and aims for free cash flow positive in the second half of FY27, supported by cost discipline and revenue growth.

AI-generated summary of the company's earnings call. Not investment advice.