Globant Reports 2025 Third Quarter Financial Results USA - English USA - English
LUXEMBOURG, Nov. 13, 2025 /PRNewswire/ -- Globant (NYSE: GLOB) today announced results for the three and nine months ended September 30, 2025.
"We remain committed to our long-term growth strategy, deeply rooted in our differentiated value proposition based on four pillars: our AI Pods, subscription model, AI Studios, and Globant Enterprise AI platform. During this past quarter, we announced AI-transformational projects for several of our top clients from industries like energy, sports and gaming, which shows the strong results of our focus on high potential 100-squared accounts. Our approach will remain clear: to be the partner of choice for organizations looking to implement AI across multiple layers. This vision, combined with our entrepreneurial culture, will continue to position us as leaders as we execute AI implementations that are both tangible and meaningful," said Martín Migoya, Globant's CEO and co-founder.
"Globant delivered top-line results of $617.1 million, exceeding guidance while maintaining a prudent and healthy balance sheet. We successfully expanded profitability and generated $67.5 million of free cash flow during the third quarter. Despite currency headwinds, our adjusted operating margin increased to 15.5%, a 50-basis-point sequential rise. During the quarter we also announced a share repurchase plan, as part of our capital allocation strategy," 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.
Third Quarter 2025 Financial Highlights
Nine months ended September 30, 2025 Financial Highlights
Other Metrics as of and for the quarter ended September 30, 2025
2025 Fourth Quarter and Full Year Outlook
Based on current market conditions, Globant is providing the following estimates for the fourth quarter and the full year of 2025:
Shareholder Letter, Conference Call and Webcast
A shareholder letter will be available in the Investor Relations section of Globant's website.
Martin Migoya, Chief Executive Officer & co-founder, Diego Tártara, Chief Technology Officer, and Juan Urthiague, Chief Financial Officer, will discuss the results in a video conference call and a live Q&A session beginning today at 4:30 pm ET.
Video conference call access information is:
https://more.globant.com/F3Q25EarningsCall
Webcast http://investors.globant.com/
About Globant (NYSE: GLOB)
At Globant, we help organizations thrive in a digital and AI-powered future. Our industry-focused solutions combine technology and creativity to accelerate enterprise transformation and design experiences customers demand. Through digital reinvention, our subscription-based AI Pods, and Globant Enterprise AI platform, we turn challenges into measurable business results and promised savings into real impact.
We have more than 29,000 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 September 30, 2025 and December 31, 2024 and its condensed interim consolidated statements of comprehensive income for the three and nine months ended September 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, business optimization costs, 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, 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)
Nine Months Ended
Three Months Ended
September 30, 2025
September 30, 2024
September 30, 2025
September 30, 2024
Revenues
1,842,408
1,773,206
617,143
614,667
Cost of revenues
(1,196,778)
(1,139,161)
(402,384)
(392,392)
Gross profit
645,630
634,045
214,759
222,275
Selling, general and administrative expenses
(472,905)
(460,877)
(151,667)
(154,178)
Net impairment losses on financial assets
(8,557)
(8,994)
(2,218)
(3,667)
Business Optimization Costs
(51,990)
—
(4,410)
—
Other operating income and expenses,
—
2,738
—
777
Profit from operations
112,178
166,912
56,464
65,207
Finance income
3,375
3,876
1,452
1,349
Finance expense
(30,605)
(20,536)
(10,006)
(7,034)
Other financial results, net
2,656
7,341
1,795
1,735
Financial results, net
(24,574)
(9,319)
(6,759)
(3,950)
Share of results of investment in associates
27
161
21
105
Other income and expenses, net
(4,679)
6,142
(1,294)
(4,464)
Profit before income tax
82,952
163,896
48,432
56,898
Income tax
(21,993)
(34,401)
(14,244)
(11,357)
Net income for the period
60,959
129,495
34,188
45,541
Other comprehensive income, net of income tax effects
Items that may be reclassified subsequently to profit and loss:
- Exchange differences on translating foreign operations
80,680
(20,458)
303
22,555
- Net change in fair value on financial assets measured at FVOCI
(5,798)
1,019
—
—
- Gains and losses on cash flow hedges
9,639
(12,768)
(3,519)
365
Total comprehensive income for the period
145,480
97,288
30,972
68,461
Net income attributable to:
Owners of the Company
61,354
127,324
33,102
43,606
Non-controlling interest
(395)
2,171
1,086
1,935
Net income for the period
60,959
129,495
34,188
45,541
Total comprehensive income for the period attributable to:
Owners of the Company
139,565
94,864
29,991
64,266
Non-controlling interest
5,915
2,424
981
4,195
Total comprehensive income for the period
145,480
97,288
30,972
68,461
Earnings per share
Basic
1.39
2.94
0.74
1.00
Diluted
1.35
2.88
0.73
0.98
Weighted average of outstanding shares (in thousands)
Basic
44,286
43,248
44,502
43,419
Diluted
45,374
44,271
45,589
44,442
Globant S.A.
Condensed Interim Consolidated Statements of Financial Position as of September 30, 2025 and December 31, 2024
(In thousands of U.S. dollars, unaudited)
September 30, 2025
December 31, 2024
ASSETS
Current assets
Cash and cash equivalents
154,906
142,093
Investments
12,048
13,992
Trade receivables
648,361
605,002
Other assets
40,238
20,420
Other receivables
88,660
53,939
Other financial assets
7,180
3,100
Total current assets
951,393
838,546
Non-current assets
Investments
2,398
2,212
Other assets
4,907
4,750
Other receivables
41,874
40,784
Deferred tax assets
88,272
80,811
Investment in associates
1,643
1,648
Other financial assets
43,275
41,403
Property and equipment
143,504
154,755
Intangible assets
365,469
378,024
Right-of-use assets
98,021
122,884
Goodwill
1,605,430
1,483,443
Total non-current assets
2,394,793
2,310,714
TOTAL ASSETS
3,346,186
3,149,260
LIABILITIES
Current liabilities
Trade payables
112,170
114,743
Payroll and social security taxes payable
211,176
239,440
Borrowings
20,328
1,601
Other financial liabilities
90,639
77,976
Lease liabilities
25,270
29,736
Tax liabilities
22,009
36,916
Income tax payable
9,613
6,520
Other liabilities
839
231
Total current liabilities
492,044
507,163
Non-current liabilities
Trade payables
4,299
2,006
Borrowings
351,950
290,935
Other financial liabilities
110,382
168,163
Lease liabilities
76,570
87,887
Deferred tax liabilities
34,698
29,776
Income tax payable
4,881
6,625
Payroll and social security taxes payable
3,777
5,187
Provisions for contingencies
23,488
18,169
Total non-current liabilities
610,045
608,748
TOTAL LIABILITIES
1,102,089
1,115,911
Capital and reserves
Issued capital
53,447
52,837
Additional paid-in capital
1,262,874
1,193,029
Other reserves
(66,545)
(144,756)
Retained earnings
924,175
862,821
Total equity attributable to owners of the Company
2,173,951
1,963,931
Non-controlling interests
70,146
69,418
Total equity
2,244,097
2,033,349
TOTAL EQUITY AND LIABILITIES
3,346,186
3,149,260
Globant S.A.
Selected Cash Flow Data
(In thousands of U.S. dollars, unaudited)
Three Months Ended
September 30, 2025
September 30, 2024
Net Income for the period
34,188
45,541
Non-cash adjustments, taxes and others
80,801
76,819
Changes in working capital
(22,898)
(31,823)
Cash flows from operating activities
92,091
90,537
Capital expenditures
(24,613)
(20,810)
Cash flows from investing activities
(27,236)
(89,596)
Cash flows from financing activities
(73,287)
41,044
Net increase/decrease in cash & cash equivalents
(8,432)
41,985
Globant S.A.
Supplemental Non-IFRS Financial Information
(In thousands of U.S. dollars, unaudited)
Nine Months Ended
Three Months Ended
September 30, 2025
September 30, 2024
September 30, 2025
September 30, 2024
Reconciliation of adjusted gross profit
Gross profit
645,630
634,045
214,759
222,275
Depreciation and amortization expense
33,456
25,415
11,215
9,457
Share-based compensation expense - Equity settled
22,164
18,010
8,961
5,109
Adjusted gross profit
701,250
677,470
234,935
236,841
Adjusted gross profit margin
38.1 %
38.2 %
38.1 %
38.5 %
Reconciliation of selling, general and administrative expenses
Selling, general and administrative expenses
(472,905)
(460,877)
(151,667)
(154,178)
Depreciation and amortization expense
88,459
74,751
28,865
24,244
Share-based compensation expense - Equity settled
37,212
42,722
9,552
16,008
Acquisition-related charges (a)
15,957
17,230
3,751
1,646
Adjusted selling, general and administrative expenses
(331,277)
(326,174)
(109,499)
(112,280)
Adjusted selling, general and administrative expenses as % of revenues
(18.0) %
(18.4) %
(17.7) %
(18.3) %
Reconciliation of adjusted profit from operations
Profit from operations
112,178
166,912
56,464
65,207
Share-based compensation expense - Equity settled
59,376
60,732
18,513
21,117
Acquisition-related charges (a)
54,703
42,668
16,226
9,788
Business optimization costs (b)
51,990
—
4,410
—
Adjusted profit from operations
278,247
270,312
95,613
96,112
Adjusted profit from operations margin
15.1 %
15.2 %
15.5 %
15.6 %
Reconciliation of net income for the period
Net income for the period
61,354
127,324
33,102
43,606
Share-based compensation expense - Equity settled
58,873
60,618
18,495
21,192
Acquisition-related charges (a)
78,736
41,334
24,470
14,954
Business optimization costs (b)
50,876
—
4,423
—
Tax effect of non-IFRS adjustments
(42,552)
(22,516)
(10,741)
(7,399)
Adjusted net income
207,287
206,760
69,749
72,353
Adjusted net income margin
11.3 %
11.7 %
11.3 %
11.8 %
Calculation of adjusted diluted EPS
Adjusted net income
207,287
206,760
69,749
72,353
Diluted shares
45,374
44,271
45,589
44,442
Adjusted diluted EPS
4.57
4.67
1.53
1.63
(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 nine months ended September 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
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Q3 2025
Total Employees
29,998
31,280
31,102
30,084
29,020
IT Professionals
27,927
29,198
29,022
28,097
27,123
North America Revenues %
55.7
55.2
55.5
54.1
53.8
Latin America Revenues %
21.8
20.4
19.6
19.7
19.9
Europe Revenues %
17.6
17.7
18.2
19.6
19.4
New Markets Revenues %
4.9
6.7
6.7
6.6
6.9
USD Revenues %
66.6
64.8
67.2
64.1
63.2
Other Currencies Revenues %
33.4
35.2
32.8
35.9
36.8
Top Customer %
9.1
9.1
8.8
8.6
8.7
Top 5 Customers %
21.0
19.8
20.0
20.3
20.7
Top 10 Customers %
30.1
29.3
29.1
29.3
29.5
Customers Served (Last Twelve Months)*
969
1,012
1,004
981
978
Customers with >$1M in Revenues (Last Twelve Months)
331
346
341
339
339
(*) Represents customers with more than $100,000 in revenues in the last twelve months.
Investor Relations Contact:
Arturo Langa, Globant
investors@globant.com
+1 (877) 215-5230
Media Contact:
Gregorio Lascano, Globant
pr@globant.com
+1 (877) 215-5230
Source: Globant
1 Represents Asia, Oceania and the Middle East.
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