Sep 9, 2026 earnings call — Growth, applied AI, and path to profitability
Revenue rose 188% year-over-year to $46.6 million, and management raised full year revenue guidance to $200 million.
Revenue $0.0B (est $0.0B) · EPS $-0.25 (est $-0.17)
Key quotes
"One of the key drivers is our leadership in applied AI for the faith and flourishing ecosystem."
"In addition, with the acquisition of Cedarstone, we've added over 250 new mid-market network capability providers or customers, who are well positioned for cross-selling."
"Since becoming a public company, we've improved adjusted EBITDA every quarter and continue to approach breakeven in Q3 and are committed to achieving adjusted EBITDA profitability in Q4."
Analyst Q&A 7
cost savings and margin improvement
Q (Richard Baldry · ROTH Capital): He asked how much cost synergies remain versus more gross-margin improvement. He also asked how much revenue is from signed contracts/backlog versus new sales, and asked about the M&A pipeline into 2027.
A: Management said they made good margin progress and expect more operating expense leverage over the next couple of quarters. They said they have a very strong pipeline and good visibility into Q3 and Q4 because a lot of revenue is recurring. On M&A they said the pipeline is strong, they will be opportunistic and remain cash efficient, typically using 20% to 25% cash, some seller notes and maybe 50% stock, and they expect M&A to be part of the strategy in 2027.
"From a visibility standpoint, we do have a very strong pipeline." — Scott Beck (CEO)
big customers and profitability outlook
Q (Jason Kreyer · Craig-Hallum): First, he asked how large customers reached $1 million and how Gloo expands wallet share over time. Second, he asked if positive adjusted EBITDA in Q4 will continue or if there will be seasonal dips.
A: Management said customers range from long-term relationships to recent wins, and growth comes from expanding use and cross-selling; they formalized a sales compensation program and are seeing momentum. They said Q3 should have the strongest sequential growth driven by Westfall and Masterworks, Q4 will be more moderate because their fiscal year includes Christmas and January, and they are focused on getting to free cash flow positive in the back half of next year.
"And now with 30-plus at $1 million, we're certainly going to be giving periodic updates on the next milestone for them." — Patrick Gelsinger (CHAIR)
cross-selling and developer traction
Q (Yun Suk Kim · Loop): He asked how much growth is from existing versus new customers, whether sales incentives drive cross-sell, and how the sales team is structured. He also asked about developer adoption of Gloo Studio and Gloo Code and whether developers are partners or individuals.
A: Management said the bulk of revenue growth comes from existing customers and they rolled out a formal sales compensation program across all sellers, which is already creating cross-sell momentum. They described Cedarstone as a strong cross-sell opportunity with over 250 new names and said Gloo Code just launched with early new sign-ups and will be tied to an upcoming hackathon with YouVersion as lead partner.
"So the bulk of our revenue growth comes from existing customers, but we're being very focused on continuing to expand the opportunities within those customers and within the verticals like the university one that we talked about that we're seeing momentum." — Patrick Gelsinger (CHAIR)
choosing AI models and costs
Q (Matthew Harrigan · Benchmark StoneX): He asked how Gloo balances model costs with being on the cutting edge, and how they choose models to control token costs.
A: Management said Studio acts as an open router and coding environment that picks the lowest cost models, often open source, but will reflect a customer's choice of a better model when appropriate. They said model selection and pricing updates are automated, and converting work into Agentic workflows is lowering costs and improving margins over time.
"And thus, we're picking the lowest cost models, often open source models to give the cost-effective platform." — Patrick Gelsinger (CHAIR)
token price moves and cross-sell scale
Q (Daniel Kurnos · StoneX): He asked how falling token prices affect Gloo and whether usage is rising, and whether new enterprise deals are multi-product from day 1 or usually single-product then expanded.
A: Management said token prices have fallen and each drop benefits them by lowering cost and often driving more customers to the platform; they are seeing token usage rise and monitor it closely. On sales, most customers start with one product but the full portfolio is presented and some customers do adopt multiple offerings from day 1; acquisitions add installed bases that create cross-sell opportunities.
"And every time token prices come down, we're going to benefit." — Patrick Gelsinger (CHAIR)
organic growth and where AI helps most
Q (Ryan Meyers · Lake Street): He asked what organic growth was in Q2 and how to think about the rest of the year. He also asked where AI has the biggest financial impact: winning customers, increasing spend, lowering delivery costs, or cutting internal expenses.
A: Management did not give a specific organic growth number; they said organic growth is very strong and M&A also boosts organic growth both by scaling acquired businesses and by adding new offerings for current customers. They said AI's biggest impact is accelerating customer offerings, then lowering delivery costs by turning work into agents, and improving product value — with data consolidation as a key starting point for AI projects.
"We would say probably the biggest impact is accelerating the offerings to customers today." — Patrick Gelsinger (CHAIR)
forward deployed engineers and M&A gaps
Q (Tim Hwang · Citizens JMP): He asked whether deployment and implementation capacity (FDEs) is the bottleneck for AI adoption and how much they win because of FDEs. He also asked whether M&A targets fill people/relationship gaps or product gaps.
A: Management said forward deployed engineering is a key element and that Midwestern and international locations add talent and lower cost; 360 is based on forward deployed engineering and acts like the customer's CIO/CTO to accelerate AI transformation. On M&A they look for incremental capabilities, customer bases, denominational expertise, and synergy — citing EMD for Workday capability and Cedarstone for marketing synergies.
"And then our 360 offering is entirely based on forward deployed engineering," — Patrick Gelsinger (CHAIR)