Gloo (NASDAQ:GLOO) reported fiscal second-quarter revenue of $46.6 million for the quarter ended July 31, 2026, up 188% from a year earlier and 12% sequentially, as growth in its technology and engagement offerings and contributions from acquisitions lifted results.
Chief Executive Officer and co-founder Scott Beck said the company has met or exceeded its guidance in every quarter since becoming public and raised its full-year revenue outlook again. Gloo now expects fiscal 2026 revenue of $200 million, an increase of $5 million from its prior outlook and inclusive of the Cedarstone acquisition.
Revenue growth and improving margins
Chief Financial Officer Paul Seamon said year-over-year revenue growth was driven by Gloo 360 and Workspace, along with acquisitions including Masterworks, Westfall and Enterprise Market Desk, or EMD.
Platform solutions revenue rose 209% to $22.9 million from $7.4 million in the prior-year period, driven by Masterworks, Westfall Group and EMD. Platform revenue increased 170% to $23.6 million from $8.7 million, reflecting contributions from Gloo 360, Masterworks and Workspace.
Cost of revenue represented 64.0% of total revenue, improving by 10.8 percentage points from 74.8% a year earlier. Seamon attributed the improvement to greater scale across the business and a more favorable mix resulting from acquisitions. He said the company expects incremental margin improvement to continue.
Adjusted EBITDA improved by $3.2 million sequentially to a loss of $8.3 million. The result reflected revenue growth and restructuring actions intended to integrate acquired businesses and streamline corporate services, Seamon said. Gloo recorded a $4.4 million restructuring charge during the quarter, primarily for severance costs related to business-line integration.
Gloo completed a follow-on offering during the quarter that raised $23.7 million, net of underwriting fees, commissions and expenses. The company had $39.3 million in cash and cash equivalents as of July 31. It also extended the term of its $13.2 million senior secured loan by one year to April 2028.
Outlook points to Q3 step-up
For the third quarter, Gloo expects revenue of $55 million and adjusted EBITDA of negative $3.5 million. The EBITDA outlook would represent a nearly $5 million sequential improvement from the second quarter.
Seamon said the third quarter is expected to be the company’s strongest period of sequential growth because it is the strongest advertising and fundraising season for Masterworks and Westfall Group. Growth is expected to moderate in the fourth quarter because Christmas and January fall within Gloo’s fiscal year, which ends Jan. 31.
The company continues to target adjusted EBITDA profitability in the fourth quarter. Looking beyond that milestone, Seamon said Gloo’s focus in 2027 will include reaching free-cash-flow positivity in the back half of the year.
Beck said operating expenses are expected to remain approximately flat in absolute dollars for the full year even as the company more than doubles annual revenue. He said Gloo completed cost actions during the second quarter and expects to gain more leverage from operating expenses over the next several quarters, while also investing in additional sales personnel.
Customer expansion, acquisitions and AI strategy
Gloo said it now has more than 30 customers with annual contract value above $1 million, including its first customer with annual contract value exceeding $10 million. The company has also added more than 250 mid-market network capability providers or customers through its Cedarstone acquisition, which closed in the third quarter.
Executive Board Chair and Head of Technology Pat Gelsinger said the company is seeking to expand customer relationships by cross-selling its portfolio of offerings. Gloo formalized a sales compensation plan during the quarter that compensates sellers across the business for cross-selling, he said.
“The bulk of our revenue growth comes from existing customers,” Gelsinger said, while adding that acquired companies provide additional customer bases into which Gloo can introduce other products and services.
The company highlighted universities as an expanding vertical, with more than 40 universities in its client portfolio. Beck said universities face technology, data, enrollment and donor-development challenges that align with Gloo’s offerings.
Gloo has completed five acquisitions since becoming public: Westfall Gold, XRI, EMD, its remaining ownership stake in Midwestern Interactive, and Cedarstone. EMD closed during the second quarter, while Midwestern Interactive and Cedarstone closed in the third quarter. Beck said Gloo does not require additional acquisitions to meet its current forecast, but expects mergers and acquisitions to remain part of its strategy in 2027.
The company also announced Gloo Code on Sept. 8, describing it as an agentic development capability within Gloo AI Studio that pairs purpose-built agents with models selected for specific tasks. Gelsinger said the company expects developers to use the product at its annual Gloo AI Hackathon in October.
Management said AI is contributing across customer delivery, product value and costs. Gelsinger said Gloo is using AI to automate workflows such as help desk functions and marketing processes, while using lower-cost and open-source models where appropriate to manage costs. He said lower token prices can reduce Gloo’s costs and potentially expand customer platform usage.
About Gloo (NASDAQ:GLOO)
Gloo’s mission is to build the leading vertical technology platform for the faith and flourishing ecosystem, which we believe is one of the largest, oldest and least-digitized ecosystems in the world. Our purpose is to shape technology as a force for good, so people can flourish and communities can thrive. This is grounded in our belief that relationships catalyze growth, and when technology is used to serve relationships, it transforms lives. The faith and flourishing ecosystem is vast and, we believe, a technologically underserved vertical that includes traditional Christian (primarily Protestant and Catholic) churches and a diverse network of ministries, nonprofits and service providers.
