Q2 FY2026
Filed Sep 9, 2026Q2 2026 revenue grows 188% year-over-year to $46.6 million; Gloo raised fiscal year 2026 revenue guidance to $200 million and expects Adjusted EBITDA profitability in Q4 2026.
Revenue was $46.6 million, up 188% year-over-year and above the company’s $44.0 million guidance, while net loss narrowed and Adjusted EBITDA improved sequentially to negative $8.3 million. The company raised fiscal year revenue guidance to $200 million, although it remains loss-making and reported net cash used in operating activities of $27,959 (in thousands) for the first six months.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended July 31, 2026GAAP | $46,573 (in thousands) | – | 188% |
| Platform revenue, three months ended July 31, 2026GAAP | $23,643 (in thousands) | – | – |
| Platform solutions revenue, three months ended July 31, 2026GAAP | $22,930 (in thousands) | – | – |
| Cost of revenue (exclusive of depreciation and amortization), three months ended July 31, 2026GAAP | 29,796 (in thousands) | – | – |
| Product development expense, three months ended July 31, 2026GAAP | 7,113 (in thousands) | – | – |
| Sales and marketing expense, three months ended July 31, 2026GAAP | 10,857 (in thousands) | – | – |
| General and administrative expense, three months ended July 31, 2026GAAP | 15,640 (in thousands) | – | – |
| Depreciation and amortization, three months ended July 31, 2026GAAP | 3,668 (in thousands) | – | – |
| Total operating expenses, three months ended July 31, 2026GAAP | 67,074 (in thousands) | – | – |
| Operating loss, three months ended July 31, 2026GAAP | (20,501) (in thousands) | – | – |
| Interest expense, three months ended July 31, 2026GAAP | 826 (in thousands) | – | – |
| Other income, net, three months ended July 31, 2026GAAP | (226) (in thousands) | – | – |
| (Gain) loss from change in fair value of financial instruments, three months ended July 31, 2026GAAP | 534 (in thousands) | – | – |
| Loss on extinguishment of debt, three months ended July 31, 2026GAAP | — | – | – |
| Net loss before income taxes, three months ended July 31, 2026GAAP | (21,635) (in thousands) | – | – |
| Income tax benefit (expense), three months ended July 31, 2026GAAP | 470 (in thousands) | – | – |
| Income from equity method investments, net, three months ended July 31, 2026GAAP | — | – | – |
| Net loss, three months ended July 31, 2026GAAP | (21,165) (in thousands) | – | – |
| Net loss attributable to stockholders and members, three months ended July 31, 2026GAAP | $ (21,307) (in thousands) | – | – |
| Net loss per share attributable to common stockholders and members, basic and diluted, three months ended July 31, 2026GAAP | $ (0.25) | – | – |
| Weighted-average common shares and units used to compute net loss per share and unit, basic and diluted, three months ended July 31, 2026GAAP | 84,096,399 | – | – |
| Adjusted EBITDA, three months ended July 31, 2026non-GAAP | $ (8,309) (in thousands) | sequential improvement of $3.2 million | – |
| Total revenue, six months ended July 31, 2026GAAP | $88,103 (in thousands) | – | – |
| Platform revenue, six months ended July 31, 2026GAAP | $47,755 (in thousands) | – | – |
| Platform solutions revenue, six months ended July 31, 2026GAAP | $40,348 (in thousands) | – | – |
| Total operating expenses, six months ended July 31, 2026GAAP | 127,344 (in thousands) | – | – |
| Operating loss, six months ended July 31, 2026GAAP | (39,241) (in thousands) | – | – |
| Net loss, six months ended July 31, 2026GAAP | (38,216) (in thousands) | – | – |
| Net loss per share attributable to common stockholders and members, basic and diluted, six months ended July 31, 2026GAAP | $ (0.47) | – | – |
| Adjusted EBITDA, six months ended July 31, 2026non-GAAP | $ (19,818) (in thousands) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Platform revenueThe company cited deeper cross-platform engagement, including adoption of solutions from multiple Gloo Capital Partners by a growing number of its largest customers. | $23,643 (in thousands) | – | – |
| Platform solutions revenueThe company cited enterprise-customer traction, expansion beyond its historic customer base, and universities as a meaningful growth vertical. | $22,930 (in thousands) | – | – |
Third quarter and fiscal year 2026 outlook
- RevenueThird-quarter revenue of $55 million; fiscal year 2026 revenue of $200 million
- Operating expensesOperating expenses expected to remain approximately flat in absolute dollars
- NoteAdjusted EBITDA is expected to be negative $3.5 million for the third quarter of 2026.
- NoteThe company remains confident in achieving Adjusted EBITDA profitability in the fourth quarter of 2026.
- NoteThe company expects to approach Adjusted EBITDA break-even in the third quarter.
What drove it
- Gloo reported over 30 customers each generating $1M+ in annual contract value and its first customer exceeding $10M in annual contract value.
- The company serves over forty universities and expects continued momentum in this segment throughout the rest of the year and beyond.
- A growing number of Gloo’s largest customers, including many $1M+ customers, adopted solutions from multiple Gloo Capital Partners.
- Gloo completed the acquisition of Enterprisemarketdesk in the second quarter; the Midwestern transaction was completed in August 2026; and Gloo announced and closed the Cedarstone acquisition in August 2026.
- Gloo announced Gloo Code on September 8 as a new agentic building capability within Gloo AI Studio.
Concerns
- The company reported a GAAP net loss of $ (21,165) (in thousands) in the second quarter and a GAAP operating loss of (20,501) (in thousands).
- Adjusted EBITDA remained negative $8.3 million in the second quarter, and third-quarter Adjusted EBITDA is expected to be negative $3.5 million.
- Net cash used in operating activities was $ (27,959) (in thousands) for the six months ended July 31, 2026.
- Cash and cash equivalents were $39,282 (in thousands) as of July 31, 2026, versus $57,307 (in thousands) as of January 31, 2026.
- Total debt was reported as current debt of 5,121 (in thousands) and non-current debt of 32,295 (in thousands) as of July 31, 2026.
What to watch
- Third-quarter revenue guidance of $55 million, representing an increase of 69% compared with the prior-year period.
- Third-quarter Adjusted EBITDA guidance of negative $3.5 million and management’s expectation to approach Adjusted EBITDA break-even.
- Execution against the raised fiscal year 2026 revenue guidance of $200 million.
- Management’s stated expectation to achieve Adjusted EBITDA profitability in the fourth quarter of fiscal 2026.
- Whether enterprise customer expansion, university adoption, cross-platform engagement, and recently completed acquisitions continue to support growth.
Balance sheet and cash flow
- Cash and cash equivalents as of July 31, 2026: $39,282 (in thousands), compared with $57,307 (in thousands) as of January 31, 2026.
- Restricted cash as of July 31, 2026: 256 (in thousands), compared with 255 (in thousands) as of January 31, 2026.
- Debt, current, as of July 31, 2026: 5,121 (in thousands), compared with 5,812 (in thousands) as of January 31, 2026.
- Debt, non-current, as of July 31, 2026: 32,295 (in thousands), compared with 29,485 (in thousands) as of January 31, 2026.
- Subsequent to quarter close, Gloo extended the term of its senior secured loan of $13.2 million by one year to April 2028.
- Net cash used in operating activities, six months ended July 31, 2026: $ (27,959) (in thousands), compared with $ (44,226) (in thousands).
- Purchases of property and equipment, six months ended July 31, 2026: $ (1,381) (in thousands), compared with $ (520) (in thousands).
- Capitalized internal-use software costs, six months ended July 31, 2026: $ (5,886) (in thousands), compared with $ (6,447) (in thousands).
- Acquisitions, net of cash acquired, six months ended July 31, 2026: $ (3,021) (in thousands), compared with $ (3,765) (in thousands).
- Net cash used in investing activities, six months ended July 31, 2026: $ (10,388) (in thousands), compared with $ (10,732) (in thousands).
- Payments on debt, six months ended July 31, 2026: $ (2,722) (in thousands), compared with $ (24) (in thousands).
- Proceeds from issuance of Class A common stock upon follow on offering, net of underwriting discounts and commissions and other offering costs, six months ended July 31, 2026: 23,677 (in thousands).
- Net cash provided by financing activities, six months ended July 31, 2026: 20,337 (in thousands), compared with 64,217 (in thousands).
- Net decrease in cash, cash equivalents and restricted cash, six months ended July 31, 2026: $ (18,024) (in thousands), compared with $8,999 (in thousands).
- Cash, cash equivalents, and restricted cash at July 31, 2026: $39,538 (in thousands), compared with $22,843 (in thousands).
Analysis
Gloo reported second-quarter revenue of $46.6 million, representing 188% growth compared with the prior-year period and exceeding its $44.0 million guidance. Platform revenue was $23,643 (in thousands) and platform solutions revenue was $22,930 (in thousands). Management attributed momentum to enterprise-customer traction, expansion into large faith-aligned, social service and youth-serving organizations, and university adoption. The company reported over 30 customers generating $1M+ in annual contract value and its first customer exceeding $10M in annual contract value.
Profitability improved despite the continued loss. GAAP operating loss was (20,501) (in thousands), compared with (24,375) (in thousands) a year earlier, while net loss was (21,165) (in thousands), compared with (44,100) (in thousands). Adjusted EBITDA was negative $8.3 million, compared with negative $11.5 million in the first quarter of fiscal 2026, which the company described as a sequential improvement of $3.2 million and its third consecutive quarter of sequential improvement. Total operating expenses were 67,074 (in thousands), including 29,796 (in thousands) of cost of revenue, 15,640 (in thousands) of general and administrative expense, and 10,857 (in thousands) of sales and marketing expense.
The balance sheet and cash flow statement show ongoing cash use alongside financing activity. Cash and cash equivalents were $39,282 (in thousands) at July 31, 2026, versus $57,307 (in thousands) at January 31, 2026. Net cash used in operating activities was $ (27,959) (in thousands) for the six months ended July 31, 2026, and capitalized internal-use software costs were $ (5,886) (in thousands). Financing activity included 23,677 (in thousands) of net proceeds from the issuance of Class A common stock upon a follow-on offering. Subsequent to quarter close, the company extended the term of its $13.2 million senior secured loan by one year to April 2028.
Management raised fiscal year 2026 revenue guidance to $200 million and guided third-quarter revenue to $55 million, representing an increase of 69% compared with the prior-year period. It expects third-quarter Adjusted EBITDA of negative $3.5 million, to approach break-even in the quarter, and to achieve Adjusted EBITDA profitability in the fourth quarter. The guide rests on continued operating leverage, with operating expenses expected to remain approximately flat in absolute dollars, as well as sustained cross-selling, university momentum, Applied AI adoption, and contributions from Enterprisemarketdesk, Midwestern and Cedarstone.
The principal reported milestones are the pace of revenue growth, the narrowing losses, and the sequential Adjusted EBITDA improvement. Key execution points are whether customer expansion across multiple Gloo Capital Partners continues, whether acquisitions are integrated without a proportionately larger cost base, and whether the company reaches the stated third-quarter break-even trajectory and fourth-quarter Adjusted EBITDA profitability target.
Management, verbatim
Our second quarter results show that our strategy is on track.
Scott Beck, co-founder and CEO
We’ve improved our financial performance every quarter as a public company, reflecting consistent execution and increasing operating leverage.
Paul Seamon, CFO
Not in the filing
stated, not guessed- Prior-release outlook was not provided; therefore, no comparison of actual results with prior guidance is available.
- GAAP gross profit and gross margin were not reported.
- Non-GAAP gross margin was not reported.
- Quarterly operating cash flow for the three months ended July 31, 2026 was not reported.
- Free cash flow was not reported.
- Adjusted EPS was not reported.
- Quarter-over-quarter revenue comparisons for total revenue, platform revenue, and platform solutions revenue were not reported.
- Year-over-year percentage changes for platform revenue and platform solutions revenue were not reported.
- Segment operating income or loss was not reported.
- Dividend and share-repurchase activity was not reported.
- A quantitative forward reconciliation of Adjusted EBITDA to its most directly comparable GAAP financial measure was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.