Company Overview - Globant S.A. is a digitally native technology services company focused on creating digital journeys and helping organizations thrive in a digital and AI-powered future [2][6] - The company employs over 28,700 individuals and operates in more than 30 countries across five continents, serving notable clients such as Google, Electronic Arts, and Santander [3] Annual General Meeting - The Annual General Meeting of Shareholders is scheduled for April 28, 2026, at the company's registered office in Luxembourg [1] - Relevant materials for the General Meeting, including the agenda and proxy card, are available on the company's investor relations website [1] Industry Recognition - Globant has been recognized as a Worldwide Leader in Customer Experience Improvement by the IDC MarketScape report [3] - The company has been featured as a business case study at prestigious institutions such as Harvard, MIT, and Stanford [3]

Core Insights - Globant reported record free cash flow of $152.8 million in Q4 and $211.7 million for the full year, attributed to improved working capital management and CapEx efficiencies [1] - The company is transitioning from AI experimentation to AI execution, focusing on its AI Pods offering, which is gaining traction among clients seeking production-grade AI solutions [5][4] Financial Performance - Q4 revenue reached $612.5 million, exceeding guidance of $605 million, but represented a 4.7% year-over-year decline, aided by a positive FX tailwind of 180 basis points [3][6] - Adjusted operating margin was reported at 15.5%, with an effective tax rate of 23.5% and adjusted net income of $68.9 million, resulting in an adjusted net income margin of 11.3% [2] - The company ended the year with $250.3 million in cash and short-term investments, up nearly $83.3 million sequentially, and a net debt position of $116.4 million [1] AI Pods and Business Model - AI Pods, launched nine months ago, achieved an exit rate ARR of $20.6 million in 2025, operating on a subscription-based model tied to token consumption [9][10] - The AI Pods pipeline reached $283 million in Q4, up 34% from Q3, and accounted for 8% of the total pipeline [13] - Gross margins for AI Pods are projected to be between 45% and 60%, significantly higher than the company's blended gross margin of 38% [10] Bookings and Pipeline - Q4 bookings increased by 32.4% year-over-year, with a total pipeline of $3.4 billion, driven by the company's "100 squared accounts" which contributed 73% of total bookings [8] - Management expects onboarding and revenue conversion to accelerate in Q2 and the second half of 2026, leveraging deals closed in Q3 and Q4 [8] 2026 Guidance - For full-year 2026, Globant is targeting revenue between $2.46 billion and $2.51 billion, implying a year-over-year growth of 0.2% to 2.2% [17] - The company anticipates an adjusted operating margin of 14% to 15%, with adjusted diluted EPS projected between $6.10 and $6.50 [17] Regional and Vertical Performance - Latin America was noted as the fastest-growing region in Q4, with financial services growing approximately 13% in 2025 [19][20] - The company highlighted strong performance in consumer retail and manufacturing, while professional services had not yet recovered [19]

Core Insights - Globant S.A. filed its annual report on Form 20-F for the year ended December 31, 2025, with the U.S. Securities and Exchange Commission [1] - The report is accessible on the SEC's website and Globant's investor relations page [1] - Shareholders can request a hard copy of the complete audited financial statements free of charge [1] Company Overview - Globant is a digitally native technology services company focused on helping organizations thrive in a digital and AI-powered future [1] - The company employs over 28,700 individuals and operates in more than 30 countries across five continents [1] - Globant's clientele includes major companies such as Google, Electronic Arts, and Santander [1] Industry Position - Globant has been recognized as a Worldwide Leader in Customer Experience Improvement by IDC MarketScape [1] - The company has been featured as a business case study at prestigious institutions like Harvard, MIT, and Stanford [1] - Globant is a member of the Cybersecurity Tech Accord, indicating its commitment to cybersecurity [1]

Financial Data and Key Metrics Changes - In Q4 2025, the company's revenue was $612.5 million, exceeding guidance of $605 million, representing a 4.7% year-over-year decline, with a positive FX tailwind of 180 basis points [39] - Adjusted gross profit margin for the quarter was 37.6%, slightly impacted by USD weakness and statutory cost increases in Colombia and India [39] - Free cash flow reached a record $152.8 million in Q4, achieving a free cash flow to adjusted net income ratio of 221.6% [40] - For 2026, the company is guiding revenue between $2,460 million and $2,510 million, implying 0.2% to 2.2% year-over-year growth [41] Business Line Data and Key Metrics Changes - The AI Pods revenue reached an exit rate ARR of $20.6 million in 2025, with gross margins between 45% and 60%, compared to a blended gross margin of 38% [22] - The AI Pods pipeline reached $283 million in Q4, up 34% over Q3, representing 8% of the total pipeline [23] - The company expects AI Pods to generate between $60 million and $100 million in exit rate ARR for 2026 [23] Market Data and Key Metrics Changes - The IT professional services industry is projected to grow just 4.4% in 2026, significantly lower than overall IT spending growth [9] - The Big Four hyperscalers are expected to reach nearly $700 billion in combined CapEx by 2026, creating a massive implementation gap [9] Company Strategy and Development Direction - The company is positioning itself as an AI-native technology solutions provider, focusing on delivering production-grade AI solutions rather than just pilot projects [6][7] - The strategy includes four avenues of demand: agentic workflow orchestration, core modernization at AI speed, custom software reclaiming ground from SaaS, and AI governance [16][18] - Partnerships with major tech companies like NVIDIA, OpenAI, and AWS are central to the company's strategy [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to positive year-over-year organic revenue growth by mid-2026, supported by record bookings and improving pipeline conversion trends [24] - The company noted a shift in client sentiment towards larger, longer-duration projects, although larger deals are still lagging [64] - Management highlighted the importance of addressing technical debt and improving customer experience as key drivers for future demand [71] Other Important Information - The company has restructured its delivery model to enhance operational efficiency and client-centric solutions [31] - The effective tax rate for Q4 was 23.5%, and the adjusted net income margin was 11.3% [40] - The company plans to continue its share repurchase program, having invested $50 million in Q4 [40] Q&A Session Summary Question: Growth clarification for the year on the upper end - Management indicated that the upper end of guidance assumes continued strong performance with AI Pods and some improvement in the overall market [48] Question: AI Pod model specifics - Management noted that clients are transitioning from traditional engagement models to output-based models, with positive results driving this change [49][50] Question: Expectations for Latin America in 2026 - Management reported that Latin America ended 2025 as the fastest-growing region, with no significant headwinds anticipated [62][63] Question: Urgency to embrace agentic AI - Management observed increased client urgency to adopt agentic AI solutions, driven by the need to address technical debt and improve customer experience [71] Question: Factors affecting growth in 2025 - Management attributed the slower growth in 2025 to macro uncertainties and client budget retractions, expecting a return to normal growth patterns [84][86] Question: Modeling headcount growth and revenue per head - Management confirmed that the AI Pod model allows for higher revenue per head with potentially less headcount, indicating a shift in industry dynamics [89] Question: Path to achieving upper end of AI Pods revenue range - Management expressed confidence in reaching the upper end of the AI Pods revenue range with continued positive trends in client engagement and pipeline growth [94][95]

Financial Data and Key Metrics Changes - In Q4 2025, the company's revenue was $612.5 million, exceeding guidance of $605 million, representing a 4.7% year-over-year decline, with a positive FX tailwind of 180 basis points [31][33] - Adjusted gross profit margin for the quarter was 37.6%, slightly impacted by USD weakness and statutory cost increases in Colombia and India [31] - Free cash flow reached a record $152.8 million in Q4, achieving a free cash flow to adjusted net income ratio of 221.6% [32][33] - For 2026, the company is guiding revenue between $2,460 million and $2,510 million, implying 0.2%-2.2% year-over-year growth [33][34] Business Line Data and Key Metrics Changes - The AI Pods segment generated an exit rate ARR of $20.6 million in 2025, with a target of $60 million to $100 million for 2026 [14][15] - The AI Pods pipeline reached $283 million in Q4, up 34% over Q3, representing 8% of the total pipeline [15] - The company reported the highest quarterly bookings of the year in Q4, up 32.4% year-over-year [5] Market Data and Key Metrics Changes - The IT professional services industry is projected to grow just 4.4% in 2026, significantly lower than overall IT spending growth [7] - The Big Four hyperscalers are expected to reach nearly $700 billion in combined CapEx by 2026, creating a massive implementation gap [7] Company Strategy and Development Direction - The company is positioning itself as an AI-native technology solutions provider, focusing on delivering production-grade AI solutions rather than just pilot projects [4][5] - The strategy includes enhancing partnerships with major tech firms like NVIDIA, OpenAI, and AWS to strengthen its AI capabilities [12][27] - The company aims to address the technical debt of enterprises and improve customer experience through AI-native delivery models [11][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to positive year-over-year organic revenue growth by mid-2026, supported by record bookings and improving pipeline conversion trends [16] - The management noted that 2025 was a year of uncertainty, but they expect a more stable environment moving forward, with a healthier exit rate for revenue growth [75][76] - The company is focused on operational discipline to offset headwinds and drive toward higher margin targets [34] Other Important Information - The company has restructured its delivery model to enhance technology focus and client-centric solutions [23] - The effective tax rate for Q4 was 23.5%, with adjusted net income of $68.9 million [32] Q&A Session Summary Question: Growth clarification for the year on the upper end - Management indicated that the upper end of guidance assumes continued strong performance with AI Pods and some improvement in the overall market [40] Question: AI Pod model specifics - Management noted that clients are transitioning from traditional engagement models to AI Pods, with positive results driving this shift [41][46] Question: Expectations for Latin America in 2026 - Management reported that Latin America showed recovery in the second half of 2025, with Argentina and Chile performing well [52][53] Question: Urgency to embrace agentic AI - Management observed increased urgency among clients to adopt agentic AI solutions, driven by the need to address technical debt and improve customer experience [60][61] Question: Path to achieving upper end of AI Pods revenue - Management expressed confidence in reaching the upper end of the AI Pods revenue range, supported by positive trends in the pipeline and client engagement [84]

Financial Data and Key Metrics Changes - In Q4 2025, the company's revenue was $612.5 million, exceeding guidance of $605 million, representing a 4.7% year-over-year decline, with a positive FX tailwind of 180 basis points [27][30] - Adjusted gross profit margin for the quarter was 37.6%, slightly impacted by USD weakness and statutory cost increases in Colombia and India [28] - Adjusted operating margin remained at 15.5% for the quarter, flat sequentially, with a record free cash flow of $152.8 million, marking the highest quarterly figure in the company's history [29][30] Business Line Data and Key Metrics Changes - The AI Pods revenue reached an exit rate ARR of $20.6 million in 2025, with gross margins between 45% and 60%, compared to a blended gross margin of 38% [12][13] - The AI Pods pipeline reached $283 million in Q4, up 34% over Q3, representing 8% of the total pipeline, an increase from 3% in Q2 [13][14] Market Data and Key Metrics Changes - The IT professional services industry is projected to grow just 4.4% in 2026, significantly lower than overall IT spending growth [5] - The Big Four hyperscalers are expected to approach $700 billion in combined CapEx by 2026, creating a massive implementation gap [5] Company Strategy and Development Direction - The company is positioning itself as an AI-native technology solutions provider, focusing on delivering production-grade AI solutions rather than just pilot projects [3][4] - The strategy includes enhancing partnerships with major tech firms like NVIDIA, OpenAI, and AWS to solidify its AI-native offerings [11][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to positive year-over-year organic revenue growth by mid-2026, supported by record bookings and improving pipeline conversion trends [15] - The company anticipates a revenue range of $2,460 million to $2,510 million for 2026, implying 0.2%-2.2% year-over-year growth [30][31] Other Important Information - The company has restructured its delivery organization to enhance operational efficiency and client-centric solutions [20][21] - The effective tax rate for 2026 is expected to be in the 21%-23% range, with adjusted diluted EPS guidance of $6.10 to $6.50 [31][32] Q&A Session Summary Question: Clarification on growth expectations for the year - Management indicated that the upper end of the guidance assumes continued strong performance with AI Pods and some improvement in the overall market [36][37] Question: Insights on AI Pod model usage - The company noted that clients are transitioning from traditional engagement models to AI Pods, with significant interest in scaling these solutions [38][39] Question: Expectations for Latin America in 2026 - Management reported a recovery in Latin America, with Argentina and Chile performing well, and no significant headwinds anticipated [50][51] Question: Impact of recent news on IT services spending - Management observed increased urgency among clients to embrace agentic AI, leading to a demand for AI-native services [58][59] Question: Path to achieving upper end of AI Pods revenue guidance - Management expressed confidence in reaching the upper end of the guidance with ongoing engagements and positive trends in the AI Pods pipeline [81][83]

F4Q25 INVESTOR PRESENTATION Technology that dares to delight INVESTMENT HIGHLIGHTS Pure play in the digital and cognitive space Global presence, leveraging next-gen software and the right talent and skills Organized into Studios, delivering domain expertise in emerging technologies and industries Strong set of Accelerators that leverage AI and other technologies to reinvent key aspects of organizations Proven ability to acquire and integrate complementary, bolt-on acquisitions Experienced and founder-led ma ...

Core Insights - Globant reported its highest revenue and strongest free cash flow in 2025, with a fourth-quarter revenue of $612.5 million, exceeding guidance and reflecting improved client sentiment [1][3] - The company is transitioning to a token-based, intelligent subscription model, moving beyond the traditional 'seats' model, and focusing on AI-native Pods for software development [1][2] - The company achieved a record quarterly free cash flow of $152.8 million, indicating strong operational discipline [1][3] Fourth Quarter 2025 Financial Highlights - Non-IFRS Adjusted Diluted EPS was $1.54, down from $1.75 in Q4 2024 [1][3] - IFRS Diluted EPS increased to $0.93 from $0.85 in Q4 2024 [1][3] - Non-IFRS Adjusted Profit from Operations Margin was 15.5%, slightly down from 15.7% in Q4 2024 [1][3] - Revenues for Q4 2025 were $612.5 million, representing a 4.7% year-over-year decline [1][3] Full Year 2025 Financial Highlights - Non-IFRS Adjusted Diluted EPS was $6.14, compared to $6.40 in 2024 [1][3] - IFRS Diluted EPS decreased to $2.29 from $3.72 in 2024 [1][3] - Revenues rose to $2,454.9 million, reflecting a 1.6% year-over-year growth [1][3] Customer and Geographic Insights - In 2025, Globant served 944 customers, with 336 accounts generating over $1 million in annual revenues [1][3] - Revenue breakdown for Q4 2025: 53.8% from North America, 21.1% from Latin America, 19.3% from Europe, and 5.8% from New Markets [1][3] Cash Flow and Investment Highlights - The company invested $50 million in its share repurchase program during Q4 2025 [1][3] - Cash and cash equivalents were $250.3 million as of December 31, 2025 [1][3] 2026 Outlook - For FY 2026, Non-IFRS Adjusted Diluted EPS is estimated to be between $6.10 and $6.50 [1][3] - FY 2026 revenues are projected to be between $2,460 million and $2,510 million, indicating a year-over-year growth of 0.2% to 2.2% [1][3] - Q1 2026 revenues are estimated to be between $598 million and $604 million, representing a decline of 2.1% to 1.2% year-over-year [1][3]

Core Insights - Globant's report "Tech Trends 2026" outlines five key forces that will shape the future of AI maturity in enterprises, emphasizing the transition from AI experimentation to operational, scalable intelligence [1][3][4] Group 1: Key Forces Defining the Future - **Agentic AI**: Transitioning from passive assistants to autonomous systems that deliver measurable ROI, particularly in retail through personalized interactions and secure transactions [5] - **Quantum Communication**: Emerging as a disruptor with quantum encryption enabling ultra-secure data exchange, projected to contribute 18% of global quantum algorithm revenues from AI applications by 2026 [5] - **Robotic Function**: Robotics expanding beyond warehouses into sectors like healthcare and logistics, with the global robotics market expected to reach nearly $280 billion by 2034 [5] - **Ambient Intelligence**: Enhancing user experience by anticipating needs through predictive AI and edge computing, thus redefining efficiency [5] - **AI in Cybersecurity**: Organizations utilizing AI for threat detection save an average of $1.9 million per breach, highlighting the need for predictive, AI-powered defense mechanisms [5] Group 2: Industry Evolution and Strategic Implications - The evolution of AI in 2026 necessitates enterprises to advance operational strategies, integrating AI seamlessly into their organizations for effective digital transformation [6] - Companies that establish clear guidelines and governance frameworks are beginning to see measurable impacts from their AI initiatives, marking a shift towards AI maturity [2][3]

Core Insights - Globant has achieved the highest distinction as a Salesforce Solution partner, recognized for its expertise in integration, data, and AI-driven transformation [1][2] - This recognition validates Globant's excellence in deploying Salesforce products, enhancing its industry standing among a select group of high-performing organizations [2] Company Achievements - Globant's achievement reflects a new frontier of value creation within the Salesforce ecosystem, emphasizing the integration of data and AI to drive business outcomes [3] - The company has a long-standing partnership with Salesforce, spanning over 20 years, which underscores its commitment to digital transformation and modernization [4] - Globant has recently launched AI Pods, a subscription model for AI-powered services, which will enhance its ability to integrate data and AI at scale [5] Certifications and Projects - Globant has achieved over 1,000 AI certifications in Salesforce, showcasing its dedication to leveraging advanced data and AI technologies [6] - The company has implemented over 5,100 Salesforce projects globally, maintaining a customer satisfaction score of 4.7 out of 5 [8] Global Presence and Partnerships - Globant operates 58 global Delivery Centers and employs over 29,000 individuals across more than 35 countries [10] - The company collaborates with major organizations like Google, Riot Games, and Santander, and has been recognized as a leader in experience design and AI services [10]