Gloo Q2 Fiscal 2026 Earnings: Revenue Rises 188% as Losses Narrow

Gloo (Nasdaq: GLOO) reported fiscal Q2 2026 revenue of $46.6 million, up 188% from $16.2 million a year earlier, while GAAP diluted loss per share narrowed to $0.25 from $6.45. Net loss fell to $21.2 million and adjusted EBITDA improved to negative $8.3 million, although the company remained unprofitable as it expanded enterprise relationships, cross-platform sales and acquired capabilities.

Core Financial Results

For the quarter ended July 31, 2026, revenue growth substantially outpaced the 65% increase in total operating expenses. Revenue minus the stated cost of revenue, which excludes depreciation and amortization, was approximately $16.8 million, compared with $4.1 million a year earlier; the corresponding margin improved to about 36.0% from 25.2%.

GAAP operating margin improved to approximately negative 44.0% from negative 150.7%. The improvement in reported loss per share should be viewed alongside the increase in weighted-average common shares to 84.1 million from 8.2 million.

Adjusted EBITDA is a non-GAAP measure. It also improved sequentially by $3.2 million from negative $11.5 million in fiscal Q1 2026, marking the third consecutive quarter of sequential improvement.

Business and Revenue Performance

Both reported revenue streams expanded rapidly and contributed close to half of total revenue. Platform solutions grew faster, but Gloo did not disclose how much of either segment’s increase was organic or acquisition-related.

Gloo linked its business momentum to larger enterprise relationships and increased adoption across multiple parts of its platform. The company now has more than 30 customers with at least $1 million in annual contract value and recorded its first customer exceeding $10 million in annual contract value. It also serves more than 40 universities, which management identified as an emerging growth market.

Acquisitions continued to broaden the platform. Gloo completed its purchase of Enterprisemarketdesk during the quarter, while the remaining Midwestern Interactive stake and Cedarstone transactions closed after quarter-end in August 2026. These deals add technology, talent, finance and development-services capabilities, but their individual revenue contributions were not disclosed.

Lower Non-Operating Costs Magnified the Net-Loss Improvement

The reduction in net loss was considerably larger than the improvement in operating loss. Operating loss narrowed by about $3.9 million, whereas net loss narrowed by approximately $22.9 million, primarily because total other expense fell to $1.1 million from $18.9 million.

The prior-year period included an $8.2 million fair-value loss on financial instruments and a $7.5 million loss on debt extinguishment. Interest expense also declined to $0.8 million from $3.3 million. These changes improved GAAP net income without representing the same degree of improvement in underlying operations.

Adjusted EBITDA nevertheless showed operating progress. Its reconciliation for the quarter excluded, among other items, $4.4 million of financing and restructuring costs, $3.0 million of equity-based compensation and $3.7 million of depreciation and amortization.

Cash Flow and Balance Sheet

Cash-flow figures were provided only for the six months ended July 31, rather than for Q2 alone. Six-month net cash used in operating activities improved to $28.0 million from $44.2 million in the prior-year period. Gloo also used $10.4 million for investing activities, including capitalized software costs and acquisitions.

Financing activities provided $20.3 million, supported by $23.7 million in net proceeds from a follow-on stock offering. After operating, investing and financing activity, cash, cash equivalents and restricted cash declined by $18.0 million during the six-month period. Cash and cash equivalents stood at $39.3 million on July 31, down from $57.3 million on January 31.

Current and non-current debt totaled approximately $37.4 million at quarter-end, compared with $35.3 million on January 31. After the quarter, Gloo extended the maturity of its $13.2 million senior secured loan by one year to April 2028, providing additional time before repayment.

Guidance

Gloo introduced fiscal Q3 guidance and raised its fiscal 2026 revenue outlook. The Q3 revenue target would represent approximately 18% sequential growth from Q2, while the adjusted EBITDA outlook implies another $4.8 million of sequential improvement.

Management continues to expect positive adjusted EBITDA in fiscal Q4 2026. CFO Paul Seamon said operating expenses are expected to remain approximately flat in absolute dollars for the full year, making cost control central to the planned move toward profitability.

Recent Insider Transactions

The supplied insider-transaction data shows that the ten most recent reported transactions were direct sales by Thrivent Financial for Lutherans, identified as a beneficial owner of more than 10% of a security class. The reported values below are presented in U.S. dollars as listed in the source; the transactions should not by themselves be interpreted as a view on Gloo’s outlook.

Risks Investors Should Watch

• Profitability remains unproven: Despite substantial revenue growth, Gloo still reported a $20.5 million operating loss and negative adjusted EBITDA of $8.3 million. Reaching adjusted EBITDA profitability in Q4 depends on continued revenue growth and expense discipline.
• Cash consumption is still material: Six-month operating cash use remained $28.0 million, and cash declined by $18.0 million even after proceeds from a follow-on offering helped fund operations and investment.
• Acquisition integration and revenue quality: Gloo has announced five strategic acquisitions since its public-market debut. The company did not separate acquired growth from organic growth, making the durability and underlying composition of the 188% revenue increase harder to assess.
• Debt and financing obligations: Reported debt increased from January, and the company extended the maturity of its $13.2 million senior secured loan. Continued losses could keep liquidity and financing needs relevant even if adjusted EBITDA improves.

Summary

Gloo’s fiscal Q2 2026 results combined nearly tripled revenue with improving operating leverage and a third consecutive sequential gain in adjusted EBITDA. Net loss narrowed substantially, although much of the year-over-year GAAP improvement came from lower non-operating expenses. The next points to monitor are the integration of recent acquisitions, six-month cash consumption and whether Gloo can convert its enterprise growth into the adjusted EBITDA break-even trajectory outlined for the second half of fiscal 2026.