Gloo Holdings Lifts FY2026 Revenue Outlook Amid Q2 Surge

Gloo Holdings (NASDAQ:GLOO) posted fiscal second-quarter revenue of $46.6 million for the period ending July 31, 2026. The figure represents an 188% year-over-year increase and a 12% sequential gain. According to data provided by GN markets/earnings (en-US), growth was driven by the Gloo 360 and Workspace platforms alongside recent acquisitions. CEO Scott Beck stated that the company has met or exceeded guidance in every quarter since its initial public offering.

Management raised the fiscal 2026 revenue outlook to $200 million, an increase of $5 million from previous estimates. This revised target includes the impact of the Cedarstone acquisition. CFO Paul Seamon attributed the revenue expansion to strong customer adoption of applied artificial intelligence offerings and broader product utilization across the company’s platform.

Acquisitions Drive Platform Revenue Growth

Platform solutions revenue climbed 209% to $22.9 million from $7.4 million in the prior-year period. This increase was primarily fueled by contributions from Masterworks, Westfall Group, and Enterprise Market Desk. Overall platform revenue rose 170% to $23.6 million from $8.7 million, reflecting the combined effects of Gloo 360, Masterworks, and Workspace.

The company now serves more than 30 customers with annual contract values exceeding $1 million. Additionally, Gloo added over 250 mid-market providers through the Cedarstone deal. The firm is expanding its artificial intelligence strategy with the launch of Gloo Code, a new development capability aimed at enhancing its service offerings.

Margin Improvement And Restructuring Costs

Cost of revenue decreased to 64.0% of total revenue, improving by 10.8 percentage points from 74.8% a year earlier. Seamon cited greater scale and a more favorable business mix resulting from acquisitions as the primary drivers. Adjusted EBITDA improved sequentially by $3.2 million to a loss of $8.3 million.

Gloo recorded a $4.4 million restructuring charge during the quarter, mainly for severance costs related to integrating business lines. The company completed a follow-on offering that raised $23.7 million net of fees. Cash and cash equivalents stood at $39.3 million as of July 31, while the term of a $13.2 million senior secured loan was extended to April 2028.

Third Quarter Outlook And Profitability Targets

For the third quarter, Gloo forecasts revenue of $55 million and an adjusted EBITDA loss of $3.5 million. This represents a nearly $5 million sequential improvement in EBITDA. Seamon noted that the third quarter is typically the strongest period for sequential growth due to peak advertising and fundraising seasons for Masterworks and Westfall Group.

Growth is expected to moderate in the fourth quarter because Christmas and January fall within the fiscal year ending January 31. Management continues to target adjusted EBITDA profitability in the fourth quarter and aims to achieve free-cash-flow positivity in the second half of 2027.