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].
Gloo Holdings(GLOO) - 2026 Q3 - Quarterly Report