Company Overview - Gloo Holdings, Inc. began trading on Nasdaq under the ticker "GLOO" on November 19, 2025, following the completion of its IPO[326]. - The company acquired XRI Global, Inc. for a total contractual purchase price of approximately $4.1 million, which includes 346,244 shares of Class A common stock and about $1.3 million in cash[328]. - The company completed six acquisitions during the nine months ended October 31, 2025, including acquiring the remaining 56.8% of Sermons Tech for $6.4 million in cash[375]. - The company raised $72.3 million in net proceeds from its IPO in November 2025, after underwriting discounts and expenses[376]. - Management expressed substantial doubt about the company's ability to continue as a going concern for at least 12 months from the date the financial statements are available to be issued[377]. Revenue and Financial Performance - Gloo generates revenue from four types: subscriptions, marketplace, advertising, and platform solutions, with the first three categorized as platform revenue[323]. - Total revenue for the three months ended October 31, 2025, was $32,552,000, a significant increase from $6,123,000 in the same period of 2024, marking a growth of 433%[359]. - Total revenue increased by $26.4 million, or 431.6%, for the three months ended October 31, 2025, and by $44.3 million, or 265.0%, for the nine months ended October 31, 2025, compared to the same periods in 2024[360]. - Platform revenue reached $19,824,000 for the three months ended October 31, 2025, compared to $6,087,000 in the prior year, reflecting an increase of 226%[359]. - Platform revenue rose by $13.7 million and $20.5 million during the three and nine months ended October 31, 2025, respectively, primarily driven by an increase in advertising revenue of $10.5 million and $13.8 million[361]. - Platform solutions revenue increased by $12.7 million and $23.8 million for the three and nine months ended October 31, 2025, respectively, due to contributions from acquired companies and the Gloo360 offering[362]. Expenses and Losses - Net loss attributable to common members of Gloo Holdings, LLC was $38,049,000 for the three months ended October 31, 2025, compared to a loss of $13,626,000 for the same period in 2024, representing an increase of 179%[344]. - The company incurred a net loss of $39.0 million and $110.1 million for the three and nine months ended October 31, 2025, respectively[374]. - Operating expenses for the three months ended October 31, 2025, totaled $59,245,000, up from $18,835,000 in the same period of 2024, indicating a rise of 214%[359]. - Operating expenses rose by $40.4 million, or 134.2%, for the three months ended October 31, 2025, and by $56.3 million, or 138.3%, for the nine months ended October 31, 2025, compared to the same periods in 2024[363]. - Interest expense for the three months ended October 31, 2025, was $6,390,000, compared to $1,779,000 in the same period of 2024, marking an increase of 259%[359]. - Interest expense increased by $4.6 million and $9.5 million for the three and nine months ended October 31, 2025, respectively, due to a rise in net outstanding debt balances[370]. Cash Flow and Investments - Net cash used in operating activities was $63.0 million for the nine months ended October 31, 2025, compared to $33.2 million for the same period in 2024, indicating a significant increase in cash outflow[381]. - Net cash used in investing activities was $16.9 million for the nine months ended October 31, 2025, up from $6.2 million in the same period in 2024, primarily due to increased investments in capitalized software and acquisitions[383]. - Net cash provided by financing activities was $81.6 million for the nine months ended October 31, 2025, compared to $45.7 million for the same period in 2024, driven by proceeds from the issuance of Senior Secured Convertible Notes[384]. Strategic Initiatives - The company is developing Gloo AI, a vertical-specific AI aimed at enhancing engagement, data insights, and content creation for its ecosystem[335]. - Gloo's business model integrates enterprise NCP sales and digital-led growth, driving platform adoption and sustainable revenue[337]. - The company aims to enhance its capabilities through strategic acquisitions and investments focused on mission-aligned companies with strong recurring revenue[330]. - The company expects product development expenses to continue increasing as it invests in expanding AI capabilities and enhancing its offerings[350]. Accounting and Reporting - Adjusted EBITDA is used to evaluate core operating performance, supporting planning and forecasting, and is a non-GAAP financial measure[340]. - The company remains classified as an "emerging growth company," allowing it to delay the adoption of new accounting standards until they apply to private companies[385]. - The company does not have any off-balance sheet arrangements that could materially affect its financial condition or results of operations[386]. - There were no material changes to the company's critical accounting policies during the nine months ended October 31, 2025, compared to those discussed in the Prospectus[388]. - The company is not required to provide certain market risk disclosures as it qualifies as a "smaller reporting company" under the Exchange Act[390].

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $32.6 million, reflecting a 432% increase year-over-year and a 101% increase sequentially compared to Q2 2025 [4][18] - Adjusted EBITDA improved sequentially to negative $19.2 million, a $500,000 improvement from Q2 2025 [22] - The company expects revenue to exceed $180 million in fiscal year 2026, with a commitment to achieve positive adjusted EBITDA by the end of Q4 2026 [4][29] Business Line Data and Key Metrics Changes - Platform revenue totaled $19.8 million, up 127% sequentially, driven by strong advertising revenue from Masterworks [20] - Platform Solutions revenue was $12.7 million, up 71% sequentially, supported by strong performance from Masterworks and Midwestern [20][22] - The company anticipates that the acquisition of Westfall Gold will contribute approximately $20 million in revenue in fiscal year 2026 [12][29] Market Data and Key Metrics Changes - The company secured 20 customers expected to contribute over $1 million in annual contract revenue, indicating strong customer momentum [15] - The total addressable market for network capability providers is estimated to be around $60 billion, indicating significant growth potential [58] Company Strategy and Development Direction - Gloo aims to build a leading technology platform serving the faith and flourishing ecosystem, focusing on both churches and network capability providers [5][6] - The company is committed to leveraging strategic acquisitions to enhance its offerings and deepen its market presence [8][29] - Gloo is developing vertical-specific, values-aligned AI capabilities to serve the unique needs of its ecosystem [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand across the platform and the positive trajectory of revenue growth [4][25] - The company is focused on building a scalable business while managing costs responsibly, with expectations for significant sequential improvement in adjusted EBITDA starting in Q1 2026 [29][30] - Management highlighted the importance of maintaining discipline in M&A activities to ensure strategic alignment and profitability [78][79] Other Important Information - The company has recently closed two acquisitions, Igniter and XRI Global, which are expected to enhance its capabilities and revenue potential [8][12] - Gloo's IPO added approximately $72.3 million to its balance sheet, significantly strengthening its financial position [24] Q&A Session Summary Question: Can you walk through what the $1 million customers are buying? - Management indicated that the $1 million customers are primarily utilizing Gloo 360 for advanced technology infrastructures and Masterworks for donor engagement [34][35] Question: What factors affect the speed of revenue realization from these deals? - Management noted that proof points in various categories have accelerated deal closures, leading to faster revenue realization [37][38] Question: How much synergy realization is expected from recent acquisitions? - Management stated that synergy realizations will play a significant role in achieving profitability, with ongoing efforts to integrate and optimize across acquisitions [40][42] Question: What investments are being made in Gloo 360? - Management highlighted investments in sales capacity, staff integration from acquired companies, and targeted capabilities in SaaS applications and AI [46][48] Question: How should growth from upsell and conversion be viewed for 2026? - Management indicated a balanced approach between upselling existing customers and acquiring new customers, with a focus on organic growth [67][71]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $32.6 million, reflecting a 432% increase year-over-year and a 101% increase sequentially compared to Q2 2025 [14][4] - Adjusted EBITDA improved sequentially to negative $19.2 million, a $500,000 improvement from Q2 2025 [16] - The company expects revenue to exceed $180 million in fiscal year 2026, with a commitment to achieve positive adjusted EBITDA by the end of Q4 2026 [4][21] Business Line Data and Key Metrics Changes - Platform revenue totaled $19.8 million, up 127% sequentially, driven by advertising revenue from Masterworks [15] - Platform solutions revenue was $12.7 million, up 71% sequentially, supported by strong performance from Masterworks and Midwestern [15] - The company has secured 20 customers expected to contribute over $1 million in annual contract revenue, indicating strong demand for Gloo 360 and Masterworks offerings [11][25] Market Data and Key Metrics Changes - The company serves over 315,000 churches and more than 100,000 not-for-profit organizations in the U.S., indicating a large and fragmented market [5][6] - The total addressable market for network capability providers is estimated to be around $60 billion, providing significant growth opportunities [50] Company Strategy and Development Direction - Gloo aims to build a leading technology platform for the faith and flourishing ecosystem, focusing on both churches and network capability providers [5][6] - Recent acquisitions, including Igniter and Westfall Gold, are intended to enhance the platform's capabilities and drive revenue growth [7][8] - The company is committed to leveraging AI to serve the unique needs of its ecosystem, with a focus on values-aligned AI [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong demand across the platform and the impact of recent acquisitions [14][21] - The company anticipates continued improvement in adjusted EBITDA and revenue growth, with a robust pipeline of M&A opportunities [21][22] - Management emphasized the importance of disciplined execution and transparency in achieving long-term goals [24] Other Important Information - The company had $15.1 million in cash and cash equivalents as of October 31, 2025, bolstered by a $72.3 million IPO [17] - The company expects to close the Westfall Gold acquisition before the fiscal year ends on January 31, 2026, contributing approximately $20 million in revenue for fiscal year 2026 [9][18] Q&A Session Summary Question: What are the 20 customers contributing over $1 million in annual contract value buying? - The customers are purchasing a mix of Gloo 360 offerings and services from Masterworks, which help organizations enhance donor engagement and technology infrastructure [25][27] Question: What factors affect the speed of turning deals into revenue? - The sales pipeline is robust, with acceleration seen in categories like Bible translation and university segments, leading to faster deal closures [29][30] Question: How much synergy realization is expected from recent acquisitions? - Synergy realization will play a significant role in achieving profitability, with ongoing efforts to integrate and optimize across acquisitions [32][33] Question: What investments are being made in Gloo 360? - Investments are focused on increasing sales capacity, integrating acquired talent, and enhancing service delivery capabilities [38][39] Question: Are there any capacity issues in AI efforts? - Currently, there are no capacity issues, but the company is planning to ensure sufficient capacity to meet future demands [44] Question: How many customers have the potential to become million-dollar customers? - There is a significant opportunity among existing and potential customers, particularly among network capability providers [47][50] Question: How do Masterworks and Westfall Gold complement each other? - Masterworks nurtures smaller donors while Westfall Gold focuses on major donors, creating a synergistic relationship that enhances donor engagement [52] Question: What is the M&A strategy moving forward? - The company will remain disciplined and strategic in acquisitions, focusing on those that are accretive to revenue and EBITDA [55][71]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $32.6 million, reflecting a 432% increase year-over-year and a 101% increase sequentially compared to Q2 2025 [4][13] - Adjusted EBITDA improved sequentially to negative $19.2 million, a $500,000 improvement from Q2 2025 [15][19] - The company expects revenue to exceed $180 million in fiscal year 2026, with a commitment to achieving positive adjusted EBITDA by the end of Q4 2026 [4][20] Business Line Data and Key Metrics Changes - Platform revenue totaled $19.8 million, up 127% sequentially, driven by advertising revenue from Masterworks [14] - Platform solutions revenue was $12.7 million, up 71% sequentially, supported by strong performance from Masterworks and Midwestern [15] - The company has secured 20 customers expected to contribute over $1 million in annual contract revenue, indicating strong demand across its offerings [11][24] Market Data and Key Metrics Changes - The company serves over 315,000 churches and more than 100,000 not-for-profit organizations in the U.S., indicating a large and fragmented market [5][6] - The total addressable market for network capability providers is estimated to be around $60 billion, highlighting significant growth potential [42] Company Strategy and Development Direction - Gloo aims to build a leading technology platform for the faith and flourishing ecosystem, focusing on both churches and network capability providers [5][6] - Recent acquisitions, including Igniter and XRI Global, are intended to enhance the platform's capabilities and accelerate growth [7][9] - The company is committed to harnessing technology for good, with a focus on developing values-aligned AI solutions [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong customer momentum and a robust sales pipeline [10][11] - The company anticipates continued strong demand across its platform, despite seasonal slowdowns in December and January [16] - Management emphasized a disciplined approach to M&A, focusing on strategic acquisitions that are accretive to revenue and EBITDA [49][62] Other Important Information - The company has a strong cash position with $15.1 million in cash and cash equivalents, bolstered by a recent IPO that raised approximately $72.3 million [16] - The company plans to close the acquisition of Westfall Gold, which is expected to contribute approximately $20 million in revenue in fiscal year 2026 [9][17] Q&A Session Summary Question: What are the new customers buying? - Management indicated that customers are purchasing multi-product and multi-service offerings, particularly Gloo 360 and Masterworks, which provide advanced technologies and donor engagement solutions [23][24] Question: What is the pace of revenue realization from new deals? - Management noted that the sales pipeline is accelerating, with quicker deal closures observed in categories like Bible translation and university segments [26][27] Question: How much synergy realization is expected from acquisitions? - Management stated that synergy realization will play a significant role in achieving adjusted EBITDA profitability, with ongoing efforts to integrate and optimize across acquisitions [29][30] Question: What investments are being made in Gloo 360? - Investments are focused on increasing sales capacity, enhancing service delivery capabilities, and augmenting AI and security services [33][35] Question: How should growth be expected from upsell versus new customers? - Management indicated a balanced approach, with growth expected from both upselling existing customers and acquiring new customers, particularly in the Gloo 360 segment [52][55]

Financial Performance - Gloo's Q3 2025 total revenue reached $32.5 million, representing a 432% year-over-year growth[37] - Platform revenue in Q3 2025 was $19.8 million, a 226% increase year-over-year and a 127% increase compared to Q2 2025[37] - Platform Solutions revenue for Q3 2025 amounted to $12.7 million, showing a 71% growth from the previous quarter[37] - Adjusted EBITDA for Q3 2025 was -$19.2 million, an 88% decrease year-over-year and a 3% increase compared to Q2 2025[37] - The outlook for Q4 projects total revenue between $28 million and $30 million, indicating a 346% year-over-year growth[40] - Adjusted EBITDA for Q4 is projected to be between -$19.5 million and -$18.5 million[40] Strategic Initiatives - Gloo is building a leading vertical technology platform connecting the faith and flourishing ecosystem[12] - The company made two new acquisitions: one in church media and another in AI-powered voice and multilingual technologies[19, 20] - A definitive agreement was made to acquire Westfall Gold, a donor development service for nonprofit organizations[21, 22] - Gloo is advancing its AI strategy, including enhancing voice, transcription, and multilingual features through XRI Global[25, 26]

Financial Performance - Total revenue for Q3 2025 was $32.6 million, representing a 432% year-over-year increase, exceeding consensus estimates of $24.0 million[7] - Platform revenue reached $19.8 million, up 226% year-over-year, with an increase of $13.7 million compared to Q3 2024[7] - Net loss for the quarter was $39.0 million, compared to a loss of $13.6 million in the prior year, with a non-GAAP net loss of $26.7 million[7] - Adjusted EBITDA was negative $19.2 million, better than the consensus estimate of negative $23.0 million[7] - Total revenue for the three months ended October 31, 2025, was $32,552,000, a significant increase from $6,123,000 in the same period of 2024, representing a growth of 431%[24] - Platform revenue reached $19,824,000 for the three months ended October 31, 2025, compared to $6,087,000 in the prior year, marking a 226% increase[24] - Gloo Holdings reported a net loss of $39,027,000 for the three months ended October 31, 2025, compared to a net loss of $13,626,000 for the same period in 2024, representing an increase of 187%[28] - The adjusted EBITDA for the three months ended October 31, 2025, was $(19,209,000), compared to $(10,193,000) for the same period in 2024, indicating a decline of 88%[28] - Non-GAAP net loss attributable to members of Gloo Holdings, LLC was $(26,731,000) for the three months ended October 31, 2025, compared to $(14,164,000) for the same period in 2024, reflecting an increase of 88%[28] - The total net loss for the nine months ended October 31, 2025, was $(110,084,000), compared to $(41,020,000) for the same period in 2024, an increase of 168%[28] Future Projections - Gloo expects Q4 2025 revenue to be between $28 million and $30 million, indicating over 300% year-over-year growth[9] - For fiscal year 2026, Gloo anticipates revenue to exceed $180 million, more than doubling from the previous year[9] Customer and Market Development - Gloo has secured over 20 customers in 2025, each contributing over $1 million in annual contract value, with expectations for acceleration in 2026[7] - The company announced three strategic acquisitions, including Westfall Gold, XRI Global, and Igniter, which are expected to be accretive[7] Innovation and Initiatives - Gloo launched the Flourishing AI Christian (FAI-C) Benchmark to support values-aligned AI adoption across its ecosystem[8] - The company hosted an AI Hackathon with over 700 developers to create Kingdom-aligned AI solutions[8] Financial Position - Cash and cash equivalents at the end of the period were $15,389,000, up from $13,844,000 at the beginning of the period, showing a net increase of $1,545,000[26] - Total assets as of October 31, 2025, amounted to $206,700,000, compared to $120,824,000 as of January 31, 2025, representing a growth of 71%[22] - Total liabilities increased to $264,829,000 as of October 31, 2025, from $106,932,000 as of January 31, 2025, indicating a rise of 147%[22] - The company incurred interest expenses of $12,393,000 for the nine months ended October 31, 2025, compared to $2,854,000 in the same period of 2024, an increase of 334%[24] - The company reported a net cash used in operating activities of $62,954,000 for the nine months ended October 31, 2025, compared to $33,238,000 in the same period of 2024, reflecting an increase of 89%[26] Shareholder Metrics - The weighted-average common units used to compute net loss per unit for the nine months ended October 31, 2025, were 8,239,088, compared to 7,643,420 in 2024, an increase of 7.8%[24] - The weighted average number of common units outstanding increased to 8,282,512 for the three months ended October 31, 2025, from 7,769,167 in the same period of 2024, a growth of 7%[28] - The net loss per unit available to members of Gloo Holdings, LLC was $(6.08) for the three months ended October 31, 2025, compared to $(2.41) for the same period in 2024, an increase of 152%[28] - Non-GAAP net loss per unit available to members of Gloo Holdings, LLC was $(4.71) for the three months ended October 31, 2025, compared to $(2.48) for the same period in 2024, reflecting an increase of 90%[28] Other Financial Details - Gloo Holdings incurred IPO-related costs of $2,251,000 for the three months ended October 31, 2025, with no such costs reported in the same period of 2024[28] - The loss from the change in fair value of financial instruments was $9,067,000 for the three months ended October 31, 2025, compared to a gain of $(538,000) for the same period in 2024[28] - The net loss attributable to noncontrolling interests was $(978,000) for the three months ended October 31, 2025, with no losses reported in the same period of 2024[28]

Core Insights - Gloo Holdings, Inc. reported strong financial results for Q3 2025, with significant revenue growth and progress towards profitability, driven by strategic acquisitions [2][4][6] - The company is focused on enhancing its platform through acquisitions, including Westfall Gold, XRI Global, and Igniter, which are expected to deepen donor engagement services and advance AI capabilities [2][7] Financial Highlights - Total revenue reached $32.6 million, representing a 432% increase year over year, exceeding consensus estimates of $24.0 million [6] - Platform revenue was $19.8 million, up 226% year over year, with Platform Solutions revenue contributing $12.7 million [6] - The net loss for the quarter was $39.0 million, compared to $13.6 million in the prior year, with an adjusted EBITDA loss of $19.2 million, better than the consensus estimate of negative $23.0 million [6][4] Strategic Acquisitions - Gloo announced the acquisition of Westfall Gold, enhancing its donor engagement capabilities [7] - The acquisition of XRI Global adds advanced AI technologies, while Igniter brings a media library to support churches [7] - These acquisitions are expected to be accretive and strengthen Gloo's position in high-value areas of the faith ecosystem [4][7] Customer Engagement - In 2025, Gloo secured over 20 customers, each contributing over $1 million in annual contract value, with expectations for acceleration in 2026 [7] - A multi-year engagement with American Bible Society was signed to modernize its technology infrastructure [7] AI Development - Gloo launched the Flourishing AI Christian (FAI-C) Benchmark to support values-aligned AI adoption [7] - The company hosted an AI Hackathon, engaging over 700 developers to create Kingdom-aligned AI solutions [8] Fiscal Year 2025 Outlook - Gloo expects Q4 2025 revenue between $28 million and $30 million, indicating over threefold growth year over year [9] - For fiscal year 2026, revenue is projected to exceed $180 million, including contributions from recent acquisitions [9]

Core Insights - Gloo has announced a definitive agreement to acquire Westfall Group, enhancing its capabilities in donor development solutions for the faith and flourishing ecosystem [1][2] - The acquisition aims to create significant cross-sell and upsell opportunities, positioning Gloo to better serve its customers and strengthen its core competencies in donor management [2][5] Company Overview - Gloo is a technology platform focused on the faith and flourishing ecosystem, providing AI, resources, insights, and funding to support organizations [6] - Westfall Group consists of three brands: Westfall Gold, Brain Trust Creative, and Parable Talent, each specializing in different aspects of donor engagement and fundraising [2][3] Strategic Rationale - The acquisition will allow Gloo to offer a full lifecycle of donor development solutions, addressing the critical need for sustainable funding models in the nonprofit sector [1][4] - Westfall Gold utilizes data-driven insights to enhance donor experiences, serving various sectors including faith-based organizations, health, education, and corporate clients [2][3] Leadership and Operations - Following the acquisition, Westfall Group will operate as a wholly owned subsidiary of Gloo, with Bob Westfall remaining as CEO [5] - The partnership is expected to leverage synergies with Gloo's existing services, including Gloo 360 and Gloo Media Network, to amplify impact and growth opportunities [4][5]

Core Insights - Gloo has introduced the Flourishing AI Christian (FAI-C) Benchmark, which evaluates how well Large Language Models (LLMs) align with Christian values and support human flourishing [1][3] - The FAI-C Benchmark is based on the earlier Flourishing AI (FAI) Benchmark and aims to provide a systematic evaluation for Christian leaders and developers [3][4] Evaluation Framework - FAI-C assesses LLM responses to 807 curated questions across seven dimensions of flourishing: Character, Relationships, Happiness, Meaning, Health, Finances, and Faith [4][6] - The benchmark reveals that leading AI models average a score of 61 on a 1-100 flourishing scale, indicating a need for improvement [6] Performance Findings - Top-performing models include Qwen3 235B A22B Thinking (70) and OpenAI GPT models, with the Faith dimension scoring the lowest at an average of 48 [6] - Many models struggle to provide coherent theological reasoning and often default to generic spiritual language, failing to connect with specific Christian concepts [6][5] Implications for AI Development - The findings suggest that current AI models lack depth in handling Christian concepts, which could lead to a dilution of Christian principles [4][5] - Gloo is inviting collaboration from various fields to refine the FAI Benchmark and improve AI's alignment with Christian values [7] Future Directions - The FAI Benchmark will continue to evolve as new models and research emerge, with a detailed methodology paper expected in early 2026 [7][8] - Gloo aims to shape a future where AI technology supports human flourishing from a Christian perspective [7]

Core Viewpoint - Gloo, a technology platform focused on the faith and flourishing ecosystem, will report its financial results for the fiscal quarter ending October 31, 2025, on December 17, 2025, and will host a conference call to discuss these results [1] Company Overview - Gloo is a leading technology platform that provides values-aligned AI, resources, insights, and funding to support the flourishing of individuals and communities, as well as the thriving of organizations [1] - The company serves over 140,000 leaders in faith, ministry, and nonprofit sectors and is headquartered in Boulder, Colorado [1]