Gloo Q2 Revenue Surges 188% YoY, Raises FY2026 Outlook to $200M

Source: MarketBeat Read Time: 6 min

GLOO Stock Performance: -4.60%

Key Points

• Revenue surged 188% year over year to $46.6 million, driven by Gloo 360, Workspace, and acquisitions. The company raised its fiscal 2026 revenue outlook to $200 million.
• Gloo expects a significant third-quarter step-up, forecasting $55 million in revenue and an adjusted EBITDA loss of $3.5 million. Management continues to target adjusted EBITDA profitability in the fourth quarter and free-cash-flow positivity in the second half of 2027.
• Customer expansion and acquisitions remain central to growth: Gloo now has more than 30 customers with annual contract value above $1 million and added over 250 mid-market providers through Cedarstone. The company is also expanding its AI strategy, including the newly announced Gloo Code development capability.

Revenue Growth and Improving Margins

Gloo (NASDAQ: GLOO) reported fiscal second-quarter revenue of $46.6 million for the quarter ended July 31, 2026, up 188% from a year earlier and 12% sequentially. Growth in its technology and engagement offerings, along with contributions from acquisitions, lifted results.

Chief Executive Officer and co-founder Scott Beck said the company has met or exceeded its guidance in every quarter since becoming public and raised its full-year revenue outlook again. Gloo now expects fiscal 2026 revenue of $200 million, an increase of $5 million from its prior outlook and inclusive of the Cedarstone acquisition.

"Q2 was another solid quarter," Beck said, pointing to customer adoption of the company's applied artificial-intelligence offerings, broader use of products across its platform, and progress toward profitability.

Chief Financial Officer Paul Seamon said year-over-year revenue growth was driven by Gloo 360 and Workspace, along with acquisitions including Masterworks, Westfall, and Enterprise Market Desk (EMD).

• Platform solutions revenue rose 209% to $22.9 million from $7.4 million in the prior-year period, driven by Masterworks, Westfall Group, and EMD.
• Platform revenue increased 170% to $23.6 million from $8.7 million, reflecting contributions from Gloo 360, Masterworks, and Workspace.

Cost of revenue represented 64.0% of total revenue, improving by 10.8 percentage points from 74.8% a year earlier. Seamon attributed the improvement to greater scale across the business and a more favorable mix resulting from acquisitions. He said the company expects incremental margin improvement to continue.

Adjusted EBITDA improved by $3.2 million sequentially to a loss of $8.3 million. The result reflected revenue growth and restructuring actions intended to integrate acquired businesses and streamline corporate services, Seamon said. Gloo recorded a $4.4 million restructuring charge during the quarter, primarily for severance costs related to business-line integration.

Gloo completed a follow-on offering during the quarter that raised $23.7 million, net of underwriting fees, commissions, and expenses. The company had $39.3 million in cash and cash equivalents as of July 31. It also extended the term of its $13.2 million senior secured loan by one year to April 2028.

Outlook Points to Q3 Step-Up

For the third quarter, Gloo expects revenue of $55 million and adjusted EBITDA of negative $3.5 million. The EBITDA outlook would represent a nearly $5 million sequential improvement from the second quarter.

Seamon said the third quarter is expected to be the company's strongest period of sequential growth because it is the strongest advertising and fundraising season for Masterworks.