Globant Reports 2025 Second Quarter Financial Results

, /PRNewswire/ -- Globant (NYSE: GLOB) today announced results for the three months ended June 30, 2025. "This quarter, we continued making the strategic investments and bold moves needed to fully align with our new business model. As GenAI adoption accelerates across industries and the AI ecosystem grows in complexity, our market opportunity expands even further. Our pipeline has reached an all-time high of $3.7 billion—up 25% year-over-year—reflecting strong demand for our differentiated offering. At the center of this growth are our AI Pods, subscription model, AI Studios, and Globant Enterprise AI platform, which together define the "golden path" for enterprise-scale GenAI adoption. With our subscription model and AI Pods, we are reinventing the professional services industry—positioning Globant as a full-stack AI company that designs, builds, and integrates technology, platforms, and industry-specific expertise into scalable, outcome-driven solutions", expressed Martín Migoya, Globant CEO and co-founder. "Our second-quarter results underscore the resilience and operational discipline of our business. We delivered revenues of $614.2 million, an adjusted operating margin of 15.0%, and an adjusted diluted EPS of $1.53, reflecting both consistent execution and our ability to adapt in a dynamic market. During the quarter, we complemented our growth trajectory with the execution of strategic investments and a Business Optimization Plan, which included a one-time charge of $47.6 million. This initiative is a vital step toward enhancing our near-term profitability while strategically allocating resources for our AI Pods, subscription model and Globant Enterprise AI, positioning us as a full stack AI-company," explained Juan Urthiague, Globant's CFO. Please see highlights below. Note that reconciliations between IFRS and Non-IFRS financial measures are disclosed at the end of this press release. Second Quarter 2025 Financial Highlights Revenues rose to $614.2 million, representing 4.5% year-over-year growth. IFRS Gross Profit Margin was 35.4% compared to 35.7% in the second quarter of 2024. Non-IFRS Adjusted Gross Profit Margin was 38.1% compared to 38.1% in the second quarter of 2024. IFRS Profit from Operations Margin was 1.0% compared to 9.2% in the second quarter of 2024. Non-IFRS Adjusted Profit from Operations Margin was 15.0% compared to 15.1% in the second quarter of 2024. IFRS Diluted EPS was $(0.05) compared to $0.87 in the second quarter of 2024. Non-IFRS Adjusted Diluted EPS was $1.53 compared to $1.51 in the second quarter of 2024. Other Metrics as of and for the quarter ended June 30, 2025 Cash and cash equivalents and Short-term investments were $174.2 million as of June 30, 2025. Globant completed the second quarter of 2025 with 30,084 Globers, 28,097 of whom were technology, design and innovation professionals. The geographic revenue breakdown for the second quarter of 2025 was as follows: 54.1% from North America (top country: US), 19.7% from Latin America (top country: Argentina), 19.6% from Europe (top country: Spain) and 6.6% from New Markets[1] (top country: Saudi Arabia). Globant's top customer, top five customers and top ten customers for the second quarter of 2025 represented 8.6%, 20.3% and 29.3% of revenues, respectively. During the twelve months ended June 30, 2025, Globant served a total of 981 customers (with revenues over $100,000 in the last twelve months) and continued to increase its wallet share, with 339 accounts generating more than $1 million of annual revenues, compared to 329 for the same period one year ago. In terms of currencies, 64.1% of Globant's revenues for the second quarter of 2025 were denominated in US dollars. 2025 Third Quarter and Full Year Outlook Based on current market conditions, Globant is providing the following estimates for the third quarter and the full year of 2025: Third quarter 2025 Revenues are estimated to be at least $615.0 million, or 0.1% year-over-year growth. This expected growth includes a positive FX impact of 50 basis points. Third quarter 2025 Non-IFRS Adjusted Profit from Operations Margin is estimated to be at least 15.0%. Third quarter 2025 Non-IFRS Adjusted Diluted EPS is estimated to be at least $1.53 (assuming an average of 45.6 million diluted shares outstanding during the third quarter). Fiscal year 2025 Revenues are estimated to be at least $2,445.0 million, implying at least 1.2% year-over-year revenue growth. This expected growth includes a positive FX impact of 25 basis points. Fiscal year 2025 Non-IFRS Adjusted Profit from Operations Margin is estimated to be at least 15.0%. Fiscal year 2025 Non-IFRS Adjusted Diluted EPS is estimated to be at least $6.12 (assuming an average of 45.5 million diluted shares outstanding during 2025). Shareholder Letter, Conference Call and WebcastA shareholder letter will be available in the Investor Relations section of Globant's website. Martin Migoya, Globant's Chief Executive Officer & co-founder, Juan Urthiague, Globant's Chief Financial Officer, and Diego Tártara, Globant's Chief Technology Officer, will discuss the second quarter 2025 results in a video conference call today beginning at 4:30 pm ET. This call will be followed by a live Q&A session. Video conference call access information is:https://more.globant.com/F2Q25EarningsCall Webcast http://investors.globant.com/ About Globant (NYSE:GLOB) At Globant, we create the digitally-native products that people love. We bridge the gap between businesses and consumers through technology and creativity, leveraging our expertise in AI. We dare to digitally transform organizations and strive to delight their customers.We have more than 30,000 employees and we are present in more than 30 countries across 5 continents working for companies like Google, Electronic Arts and Santander, among others.We were named a Worldwide Leader in CX Improvement by IDC MarketScape report. We were also featured as a business case study at Harvard, MIT and Stanford. We are a member of the Cybersecurity Tech Accord.For more information, please visit www.globant.com Non-IFRS Financial Measures While the financial figures included in this press release have been computed in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IASB"), this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, "Interim Financial Reporting" or a financial statement as defined by International Accounting Standards 1 "Presentation of Financial Statements". The financial information in this press release has not been audited. Globant provides non-IFRS financial measures in addition to reported IFRS results prepared in accordance with IFRS Accounting Standards. Management believes these measures help illustrate underlying trends in the company's business and uses the non-IFRS financial measures to establish budgets and operational goals, communicated internally and externally, for managing the company's business and evaluating its performance. The company anticipates that it will continue to report both IFRS and certain non-IFRS financial measures in its financial results, including non-IFRS measures that exclude share-based compensation expense, depreciation and amortization, acquisition-related charges, business optimization costs, and the related effect on income taxes of the pre-tax adjustments. Because the company's non-IFRS financial measures are not calculated according to IFRS, these measures are not comparable to IFRS and may not necessarily be comparable to similarly described non-IFRS measures reported by other companies within the company's industry. Consequently, Globant's non-IFRS financial measures should not be evaluated in isolation or supplant comparable IFRS measures, but, rather, should be considered together with its condensed interim consolidated statements of financial position as of June 30, 2025 and December 31, 2024 and its condensed interim consolidated statements of comprehensive income for the three and six months ended June 30, 2025 and 2024, prepared in accordance with International Accounting Standard ("IAS") 34, "Interim Financial Reporting". Globant is not providing a quantitative reconciliation of forward-looking Non-IFRS Adjusted Profit from Operations Margin or Non-IFRS Adjusted Diluted EPS to the most directly comparable IFRS measure because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort. These items include, but are not limited to, share-based compensation expense, acquisition-related charges, and the tax effect of non-IFRS adjustments. These items are uncertain, depend on various factors, and could have a material impact on IFRS reported results for the guidance period. Forward Looking Statements In addition to historical information, this release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "should," "plan," "expect," "predict," "potential," or the negative of these terms or other similar expressions. These statements include, but are not limited to, statements regarding our future financial and operating performance, including our outlook and guidance, our pipeline, and our strategies, priorities and business plans. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could impact our actual results include: our ability to maintain current resource utilization rates and productivity levels; our ability to manage attrition and attract and retain highly-skilled IT professionals; our ability to accurately price our client contracts; our ability to achieve our anticipated growth; our ability to effectively manage our rapid growth; our ability to retain our senior management team and other key employees; our ability to continue to innovate and remain at the forefront of emerging technologies and related market trends; our ability to retain our business relationships and client contracts; our ability to manage the impact of global adverse economic conditions; our ability to manage uncertainty concerning the instability in the current economic, political and social environment in Latin America; and other factors discussed under the heading "Risk Factors" in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission and any other risk factors we include in subsequent reports on Form 6-K. Because of these uncertainties, you should not make any investment decisions based on our estimates and forward-looking statements. Except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise. Globant S.A.Condensed Interim Consolidated Statements of Comprehensive Income(In thousands of U.S. dollars, except per share amounts, unaudited) Six months ended Three Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Revenues 1,225,265 1,158,539 614,180 587,461 Cost of revenues (794,394) (746,769) (396,539) (377,912) Gross profit 430,871 411,770 217,641 209,549 Selling, general and administrative expenses (321,238) (306,699) (159,543) (154,585) Net impairment losses on financial assets (6,339) (5,327) (4,660) (3,162) Business Optimization Costs (47,580) — (47,580) — Other operating income and expenses, — 1,961 — 1,961 Profit from operations 55,714 101,705 5,858 53,763 Finance income 1,923 2,527 978 1,402 Finance expense (20,599) (13,502) (10,972) (6,233) Other financial results, net 861 5,606 (239) 532 Financial results, net (17,815) (5,369) (10,233) (4,299) Share of results of investment in associates 6 56 23 70 Other income and expenses, net (3,385) 10,606 (114) 595 Profit (Loss) before income tax 34,520 106,998 (4,466) 50,129 Income tax (7,749) (23,044) 742 (10,104) Net income (loss) for the period 26,771 83,954 (3,724) 40,025 Other comprehensive income, net of income tax effects Items that may be reclassified subsequently to profit and loss: - Exchange differences on translating foreign operations 80,377 (43,013) 51,288 (24,405) - Net change in fair value on financial assets measured at FVOCI (5,798) 1,019 (5,798) 894 - Gains and losses on cash flow hedges 13,158 (13,133) 3,000 (4,378) Total comprehensive income for the period 114,508 28,827 44,766 12,136 Net income attributable to: Owners of the Company 28,252 83,718 (2,383) 38,658 Non-controlling interest (1,481) 236 (1,341) 1,367 Net income (loss) for the period 26,771 83,954 (3,724) 40,025 Total comprehensive income for the period attributable to: Owners of the Company 109,574 30,598 41,850 11,589 Non-controlling interest 4,934 (1,771) 2,916 547 Total comprehensive income for the period 114,508 28,827 44,766 12,136 Earnings per share Basic 0.64 1.94 (0.05) 0.89 Diluted 0.62 1.89 (0.05) 0.87 Weighted average of outstanding shares (in thousands) Basic 44,177 43,172 44,298 43,244 Diluted 45,424 44,220 44,298 44,292 Globant S.A.Condensed Interim Consolidated Statements of Financial Position as of June 30, 2025 and December 31, 2024(In thousands of U.S. dollars, unaudited) June 30, 2025 December 31, 2024 ASSETS Current assets Cash and cash equivalents 167,431 142,093 Investments 6,812 13,992 Trade receivables 636,387 605,002 Other assets 32,099 20,420 Other receivables 97,586 53,939 Other financial assets 9,889 3,100 Total current assets 950,204 838,546 Non-current assets Investments 2,398 2,212 Other assets 5,989 4,750 Other receivables 48,862 40,784 Deferred tax assets 84,534 80,811 Investment in associates 1,653 1,648 Other financial assets 41,241 41,403 Property and equipment 147,939 154,755 Intangible assets 358,803 377,365 Right-of-use assets 104,947 122,884 Goodwill 1,650,680 1,517,252 Total non-current assets 2,447,046 2,343,864 TOTAL ASSETS 3,397,250 3,182,410 LIABILITIES Current liabilities Trade payables 113,271 114,743 Payroll and social security taxes payable 217,029 239,440 Borrowings 20,174 1,601 Other financial liabilities 146,679 153,803 Lease liabilities 25,968 29,736 Tax liabilities 22,797 36,916 Income tax payable 8,867 6,520 Other liabilities 99 231 Total current liabilities 554,884 582,990 Non-current liabilities Trade payables 4,957 2,006 Borrowings 409,115 290,935 Other financial liabilities 102,036 125,651 Lease liabilities 81,397 87,887 Deferred tax liabilities 29,555 29,611 Income tax payable 1,216 6,625 Payroll and social security taxes payable 1,712 5,187 Provisions for contingencies 23,096 18,169 Total non-current liabilities 653,084 566,071 TOTAL LIABILITIES 1,207,968 1,149,061 Capital and reserves Issued capital 53,408 52,837 Additional paid-in capital 1,239,070 1,193,029 Other reserves (63,434) (144,756) Retained earnings 891,073 862,821 Total equity attributable to owners of the Company 2,120,117 1,963,931 Non-controlling interests 69,165 69,418 Total equity 2,189,282 2,033,349 TOTAL EQUITY AND LIABILITIES 3,397,250 3,182,410 Globant S.A.Selected Cash Flow Data(In thousands of U.S. dollars, unaudited) Three Months Ended June 30, 2025 June 30, 2024 Net Income for the period (3,724) 40,025 Non-cash adjustments, taxes and others 57,883 41,788 Changes in working capital (32,281) (71,646) Cash flows from operating activities 21,878 10,167 Capital expenditures (24,735) (38,155) Cash flows from investing activities (68,763) (60,656) Cash flows from financing activities 103,757 (17,514) Net increase/decrease in cash & cash equivalents 56,872 (68,003) Globant S.A.Supplemental Non-IFRS Financial Information(In thousands of U.S. dollars, unaudited) Six months ended Three Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Reconciliation of adjusted gross profit Gross profit 430,871 411,770 217,641 209,549 Depreciation and amortization expense 22,241 15,958 11,085 8,525 Share-based compensation expense - Equity settled 13,203 12,901 5,513 5,759 Adjusted gross profit 466,315 440,629 234,239 223,833 Adjusted gross profit margin 38.1 % 38.0 % 38.1 % 38.1 % Reconciliation of selling, general and administrative expenses Selling, general and administrative expenses (321,238) (306,699) (159,543) (154,585) Depreciation and amortization expense 59,594 50,507 29,939 25,442 Share-based compensation expense - Equity settled 27,660 26,714 14,275 14,399 Acquisition-related charges (a) 12,206 15,584 5,639 5,986 Adjusted selling, general and administrative expenses (221,778) (213,894) (109,690) (108,758) Adjusted selling, general and administrative expenses as % of revenues (18.1) % (18.5) % (17.9) % (18.5) % Reconciliation of adjusted profit from operations Profit from operations 55,714 101,705 5,858 53,763 Share-based compensation expense - Equity settled 40,863 39,615 19,788 20,158 Acquisition-related charges (a) 38,477 32,880 18,872 14,736 Business optimization costs (b) 47,580 — 47,580 — Adjusted profit from operations 182,634 174,200 92,098 88,657 Adjusted profit from operations margin 14.9 % 15.0 % 15.0 % 15.1 % Reconciliation of net income for the period Net income for the period 28,252 83,718 (2,383) 38,658 Share-based compensation expense - Equity settled 40,378 39,425 19,359 20,077 Acquisition-related charges (a) 54,266 26,380 26,309 16,440 Business optimization costs (b) 46,453 — 46,453 — Tax effect of non-IFRS adjustments (31,811) (15,117) (20,035) (8,313) Adjusted net income 137,538 134,406 69,703 66,862 Adjusted net income margin 11.2 % 11.6 % 11.3 % 11.4 % Calculation of adjusted diluted EPS Adjusted net income 137,538 134,406 69,703 66,862 Diluted shares 45,424 44,220 45,545 44,292 Adjusted diluted EPS 3.03 3.04 1.53 1.51 (a) Acquisition-related charges include, when applicable, amortization of purchased intangible assets included in depreciation and amortization expense line on our consolidated statements of comprehensive income, interest charges on acquisition-related indebtedness, external deal costs, acquisition-related retention bonuses, integration costs, changes in the fair value of contingent consideration liabilities, and other acquisition-related costs. We cannot provide acquisition-related charges on a forward-looking basis without unreasonable effort as such charges may fluctuate based on the timing, size, and complexity of future acquisitions as well as other uncertainty inherent in mergers and acquisitions. (b) One-time charges for the three and six months ended June 30, 2025 related to the Company's Business Optimization Program initiated in April 2025. These charges, primarily related to workforce resizing and office reductions, have been excluded from non-IFRS results as these are one-time and unusual in nature. Globant S.A.Schedule of Supplemental Information (unaudited) Metrics Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Total Employees 29,112 29,998 31,280 31,102 30,084 IT Professionals 27,133 27,927 29,198 29,022 28,097 North America Revenues % 56.3 55.7 55.2 55.5 54.1 Latin America Revenues % 23.0 21.8 20.4 19.6 19.7 Europe Revenues % 16.9 17.6 17.7 18.2 19.6 New Markets Revenues % 3.8 4.9 6.7 6.7 6.6 USD Revenues % 67.1 66.6 64.8 67.2 64.1 Other Currencies Revenues % 32.9 33.4 35.2 32.8 35.9 Top Customer % 8.3 9.1 9.1 8.8 8.6 Top 5 Customers % 21.0 21.0 19.8 20.0 20.3 Top 10 Customers % 30.3 30.1 29.3 29.1 29.3 Customers Served (Last Twelve Months)* 958 969 1,012 1,004 981 Customers with >$1M in Revenues (Last Twelve Months) 329 331 346 341 339 (*) Represents customers with more than $100,000 in revenues in the last twelve months. [1] Represents Asia, Oceania and the Middle East. Investor Relations Contact:Arturo Langa, Globant[email protected]+1 (877) 215-5230 Media Contact:Gregorio Lascano, Globant[email protected]+1 (877) 215-5230 SOURCE Globant WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Globant Reports 2025 Second Quarter Financial Results

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