Revenue Outperformance and Strong Growth
Q1 revenue of $41.5 million beat guidance and Street consensus, grew ~3x year-over-year (reported +238% YoY) and increased ~23.5% sequentially vs Q4. Revenue was 13% above guidance and Street expectations.
Gloo Holdings, Inc. Class A
· GLOO
June 8th, 2026
Summary
- Earnings Call Date:
- 2026-06-08
- Change Since:
- -17.13%
- Next Earnings Date:
- 2026-12-23
Earnings Call Sentiment
PositiveThe call conveyed strong operational momentum: substantial revenue outperformance (Q1 revenue +238% YoY, +23.5% sequential), meaningful sequential adjusted EBITDA improvement (-$11.5M, $7.1M improvement), raised full-year guidance, successful strategic acquisitions (EMD closed, Midwestern to 100% ownership) and clear product/AI progress (Gloo AI, Gloo Studio, developer traction). Key risks highlighted include a still-negative adjusted EBITDA, modest cash balance ($33M), dependency on continued margin improvement through integration and cost discipline, and the need to convert single-product customers into multi-product relationships to sustain growth. Overall, highlights significantly outweigh lowlights, reflecting confidence in the business trajectory while recognizing execution and liquidity risks.
Company Guidance
Glu raised its full‑year 2026 revenue outlook by $5.0M to $195M and expects Q2 revenue of $44M with an adjusted EBITDA loss of ($8.5M) and a weighted‑average share count of ~81M; management expects adjusted EBITDA to approach breakeven in Q3 2026 and reach positive adjusted EBITDA in Q4 2026, putting the company on a path to sustainable positive free‑cash‑flow growth. For context, Q1 results included $41.5M revenue (up 238% YoY and +23.5% sequential), adjusted EBITDA of ($11.5M) (a ~$7.1M sequential improvement), platform revenue of $24.1M (+$15.6M YoY, +19.9% seq), platform solutions revenue of $17.4M (+$13.6M YoY, ~29% seq), cost of revenue at 67.7% (vs. 72.1% prior year), operating expenses down $8.4M sequentially while revenue grew ~24%, and $33M cash on hand as of 04/30/2026; management also noted the Midwestern acquisition to 100% ownership will remove a $12.1M liability and said no further deals are required to achieve the revenue and adjusted‑EBITDA targets.
Adjusted EBITDA Improvement
Adjusted EBITDA loss narrowed to -$11.5 million, representing a $7.1 million sequential improvement from Q4 2025 and the third consecutive quarter of sequential adjusted EBITDA improvement. Management expects adjusted EBITDA to approach breakeven in Q3 2026 and reach profitability in Q4 2026.
Raised Full-Year Revenue Outlook and Q2 Guidance
Full-year 2026 revenue outlook increased by $5 million to $195 million. Q2 2026 guidance: revenue $44 million and adjusted EBITDA loss narrowing to -$8.5 million.
Platform and Product Momentum (Applied AI & Gloo Studio)
Gloo AI general availability announced with support for 80+ LLMs, safety capabilities, billing options and a developer sandbox. Gloo Studio has >1,000 developers on platform and early customer migrations (e.g., Hello Bible). Management highlighted applied AI as a key accelerator across powering technology and reach.
Platform Revenue and Solution Growth
Platform revenue was $24.1 million (up $15.6 million YoY) and platform solutions revenue was $17.4 million (up $13.6 million YoY). Platform solutions grew ~29% sequentially.
Customer Wins and Land-and-Expand Evidence
Secured five new larger strategic customers contributing >$1 million in annual contract revenue each. Management reported strong land-and-expand dynamics: customers with multiple offerings generate materially higher revenue (2x+ when adding a second offering, higher when adding more).
Acquisitions Strengthening Capabilities and Margins
Closed acquisition of EMD (Workday consulting/implementation/support) and moved to 100% ownership of Midwestern (eliminating a $12.1 million call-option liability). Management said acquisitions (e.g., Westfall, Masterworks) delivered 'one of their best quarters ever' and expand powering technology and reach.
Gross Margin and Cost Improvements
Cost of revenue improved to 67.7% of total revenue from 72.1% in the prior year period, driven by margin improvements in workspace and Outreach lines and a full quarter of Westfall Group. Operating expenses decreased $8.4 million sequentially while revenue grew ~24% sequentially.
Operator
Thank you for standing by, and welcome to Glu's Fiscal First Quarter 26 Earnings Conference Call. Currently, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press *11 on your telephone. To remove yourself from the queue, you may press *11 again. I would now like to hand the call over to Oliver Roll, chief marketing and communications officer. Please go ahead.
Oliver Roll
Thank you, operator. And thank you to all of you for joining our fiscal first quarter earnings conference call. Will be discussing Glu's performance for the first quarter ended April 30, 26. As well as providing guidance for our Q2 and full year 2026. Joining me on today's call are CEO and cofounder, Scott A. Beck and CFO, Paul Seamon. Our executive board chair and head of technology, Patrick Gelsinger will also join the Q&A session. Before we begin, please be reminded that this call will contain forward-looking statements.
Including statements related to our business, future growth, strategic initiatives, key priorities, and our financial outlook for Q2 and fiscal year 26. These statements are based on Gloo's current expectations. But are subject to risks and uncertainties relating to future events and or the future financial performance of Gloo. Blue assumes no obligation to update or revise them, whether as a result of new developments or otherwise. Actual results could differ materially from those anticipated in these forward-looking statements. A discussion of some of the risks that cou...
Subscribe to unlock transcripts
Get The Fly Pro 7 days for free