Globant Reports 2025 Fourth Quarter Financial Results USA - English USA - English
LUXEMBOURG, Feb. 26, 2026 /PRNewswire/ -- Globant (NYSE: GLOB) today announced results for the three and twelve months ended December 31, 2025.
"Twenty-three years ago, we set out to build a company that would reinvent how technology gets created. Today, we are reinforcing that commitment. In 2025, we delivered our highest revenue and strongest free cash flow ever, while simultaneously transforming our entire delivery model. As the world shifts from experiment to implementation, our AI-native Pods present a new approach on how software is built and scaled. We are moving beyond the traditional 'seats' model by introducing a token-based, intelligent subscription model that offers our clients total corporate sovereignty. We aren't just riding the AI wave; we want to re-define what the next era of professional services actually looks like," said Martín Migoya, Globant's CEO and co-founder.
"We are excited about what lies in the future. Our solid bookings, a pipeline exceeding $3 billion, and $20.6 million in ARR generated from our AI Pods are indicators of how we are executing our vision. These results are supported by a solid finish of the past year, with fourth-quarter revenue reaching $612.5 million, exceeding our guidance and reflecting an improvement in client sentiment. We maintained a consistent 15.5% adjusted operating margin through strong operational discipline. I am also proud of our record cash generation, achieving $152.8 million in quarterly free cash flow, the highest in our company's history. As we begin 2026, we remain focused on maintaining our discipline to capture the opportunities in our robust pipeline," 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.
Fourth Quarter 2025 Financial Highlights
Full Year ended December 31, 2025 Financial Highlights
Other Financial Highlights for the Twelve Months ended December 31, 2025
2026 First Quarter and Full Year Outlook
Based on current market conditions, Globant is providing the following estimates for the first quarter and the full year of 2026:
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 and co-founder, Diego Tártara, Chief Technology Officer, Juan Urthiague, Chief Financial Officer, and Fernando Matzkin, Chief Revenue 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/F4Q25EarningsCall
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 28,700 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 consolidated statements of financial position as of December 31, 2025 and December 31, 2024 and its consolidated statements of comprehensive income for the three months and years ended December 31, 2025 and 2024, prepared in accordance with IFRS Accounting Standards as issued by the IASB.
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.
Consolidated Statements of Comprehensive Income
(In thousands of U.S. dollars, except per share amounts, unaudited)
Twelve months ended
Three Months Ended
December 31, 2025
December 31, 2024
December 31, 2025
December 31, 2024
Revenues
2,454,877
2,415,689
612,469
642,483
Cost of revenues
(1,595,586)
(1,552,322)
(398,808)
(413,161)
Gross profit
859,291
863,367
213,661
229,322
Selling, general and administrative expenses
(629,332)
(632,995)
(156,427)
(172,118)
Net impairment losses on financial assets
(7,571)
(6,970)
986
2,024
Business Optimization Costs
(51,990)
—
—
—
Other operating income and expenses,
1,334
2,016
1,334
(722)
Profit from operations
171,732
225,418
59,554
58,506
Finance income
5,526
5,303
2,151
1,427
Finance expense
(40,608)
(32,202)
(10,003)
(11,666)
Other financial results, net
3,247
6,064
591
(1,277)
Financial results, net
(31,835)
(20,835)
(7,261)
(11,516)
Share of results of investment in associates
110
222
83
61
Other income and expenses, net
(862)
5,624
3,817
(518)
Profit before income tax
139,145
210,429
56,193
46,533
Income tax
(35,189)
(41,426)
(13,196)
(7,025)
Net income for the period
103,956
169,003
42,997
39,508
Other comprehensive income, net of income tax effects
Items that may be reclassified subsequently to profit and loss:
- Exchange differences on translating foreign operations
70,225
(86,110)
(10,455)
(65,652)
- Net change in fair value on financial assets measured at FVOCI
(21,286)
1,959
(15,488)
940
- Gains and losses on cash flow hedges
9,116
(14,142)
(523)
(1,374)
Total comprehensive income for the period
162,011
70,710
16,531
(26,578)
Net income attributable to:
Owners of the Company
102,918
165,732
41,564
38,408
Non-controlling interest
1,038
3,271
1,433
1,100
Net income for the period
103,956
169,003
42,997
39,508
Total comprehensive income for the period attributable to:
Owners of the Company
154,953
63,024
15,388
(31,840)
Non-controlling interest
7,058
7,686
1,143
5,262
Total comprehensive income for the period
162,011
70,710
16,531
(26,578)
Earnings per share
Basic
2.33
3.82
0.94
0.88
Diluted
2.29
3.72
0.93
0.85
Weighted average of outstanding shares (in thousands)
Basic
44,228
43,402
44,057
43,859
Diluted
45,005
44,589
44,833
45,046
Globant S.A.
Consolidated Statements of Financial Position as of December 31, 2025 and December 31, 2024
(In thousands of U.S. dollars, unaudited)
December 31,
2025
2024
ASSETS
Current assets
Cash and cash equivalents
243,742
142,093
Investments
6,594
13,992
Trade receivables
577,673
605,002
Other assets
35,117
20,420
Other receivables
84,405
53,939
Other financial assets
6,226
3,100
Total current assets
953,757
838,546
Non-current assets
Investments
2,489
2,212
Other assets
4,424
4,750
Other receivables
49,496
40,784
Deferred tax assets
91,065
80,811
Investment in associates
1,727
1,648
Other financial assets
29,930
41,403
Property and equipment
137,331
154,755
Intangible assets
345,951
378,024
Right-of-use asset
100,542
122,884
Goodwill
1,601,523
1,483,443
Total non-current assets
2,364,478
2,310,714
TOTAL ASSETS
3,318,235
3,149,260
LIABILITIES
Current liabilities
Trade payables
112,590
114,743
Payroll and social security taxes payable
203,395
239,440
Borrowings
19,666
1,601
Other financial liabilities
169,605
77,976
Lease liabilities
28,511
29,736
Tax liabilities
33,205
36,916
Income tax payable
10,730
6,520
Other liabilities
2,591
231
Total current liabilities
580,293
507,163
Non-current liabilities
Trade payables
3,684
2,006
Borrowings
347,040
290,935
Other financial liabilities
90,499
168,163
Lease liabilities
78,428
87,887
Deferred tax liabilities
30,906
29,776
Income tax payable
1,428
6,625
Payroll and social security taxes payable
2,358
5,187
Contingent liabilities
21,963
18,169
Total non-current liabilities
576,306
608,748
TOTAL LIABILITIES
1,156,599
1,115,911
Capital and reserves
Issued capital
52,604
52,837
Additional paid-in capital
1,167,979
1,193,029
Other reserves
(92,721)
(144,756)
Retained earnings
965,739
862,821
Total equity attributable to owners of the Company
2,093,601
1,963,931
Non-controlling interests
68,035
69,418
Total equity
2,161,636
2,033,349
TOTAL EQUITY AND LIABILITIES
3,318,235
3,149,260
Globant S.A.
Selected Cash Flow Data
(In thousands of U.S. dollars, unaudited)
Three Months Ended
December 31, 2025
December 31, 2024
Net Income for the period
42,997
39,508
Non-cash adjustments, taxes and others
58,506
56,881
Changes in working capital
70,013
40,934
Cash flows from operating activities
171,516
137,323
Capital expenditures
(18,732)
(36,167)
Cash flows from investing activities
(12,022)
(236,732)
Cash flows from financing activities
(78,060)
45,986
Net increase/decrease in cash & cash equivalents
81,434
(53,423)
Globant S.A.
Supplemental Non-IFRS Financial Information
(In thousands of U.S. dollars, unaudited)
Twelve Months Ended
Three Months Ended
December 31, 2025
December 31, 2024
December 31, 2025
December 31, 2024
Reconciliation of adjusted gross profit
Gross profit
859,291
863,367
213,661
229,322
Depreciation and amortization expense
44,719
36,034
11,263
10,619
Share-based compensation expense - Equity settled
27,279
23,937
5,115
5,927
Adjusted gross profit
931,289
923,338
230,039
245,868
Adjusted gross profit margin
37.9 %
38.2 %
37.6 %
38.3 %
Reconciliation of selling, general and administrative expenses
Selling, general and administrative expenses
(629,332)
(632,995)
(156,427)
(172,118)
Depreciation and amortization expense
116,422
100,181
27,963
25,430
Share-based compensation expense - Equity settled
50,453
58,833
13,241
16,111
Acquisition-related charges (a)
21,300
28,733
5,343
11,503
Adjusted selling, general and administrative expenses
(441,157)
(445,248)
(109,880)
(119,074)
Adjusted selling, general and administrative expenses as % of revenues
(18.0) %
(18.4) %
(17.9) %
(18.5) %
Reconciliation of adjusted profit from operations
Profit from operations
171,732
225,418
59,554
58,506
Share-based compensation expense - Equity settled
77,732
82,770
18,356
22,038
Acquisition-related charges (a)
71,818
63,231
17,115
20,563
Business optimization costs (b)
51,990
—
—
—
Adjusted profit from operations
373,272
371,419
95,025
101,107
Adjusted profit from operations margin
15.2 %
15.4 %
15.5 %
15.7 %
Reconciliation of net income for the period
Net income for the period
102,918
165,732
41,564
38,408
Share-based compensation expense - Equity settled
76,529
82,618
17,656
22,000
Acquisition-related charges (a)
97,334
71,895
18,598
30,561
Business optimization costs (b)
50,876
—
—
—
Tax effect of non-IFRS adjustments
(51,426)
(34,819)
(8,874)
(12,303)
Adjusted net income
276,231
285,426
68,944
78,666
Adjusted net income margin
11.3 %
11.8 %
11.3 %
12.2 %
Calculation of adjusted diluted EPS
Adjusted net income
276,231
285,426
68,944
78,666
Diluted shares
45,005
44,589
44,833
45,046
Adjusted diluted EPS
6.14
6.40
1.54
1.75
(a) Acquisition-related charges include, when applicable, amortization of purchased intangible assets, 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 twelve months ended December 31, 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
Q4 2024
Q1 2025
Q2 2025
Q3 2025
Q4 2025
Total Employees
31,280
31,102
30,084
29,020
28,773
IT Professionals
29,198
29,022
28,097
27,123
26,906
North America Revenues %
55.2
55.5
54.1
53.8
53.8
Latin America Revenues %
20.4
19.6
19.7
19.9
21.1
Europe Revenues %
17.7
18.2
19.6
19.4
19.3
New Markets Revenues %
6.7
6.7
6.6
6.9
5.8
USD Revenues %
64.8
67.2
64.1
63.2
64.0
Other Currencies Revenues %
35.2
32.8
35.9
36.8
36.0
Top Customer %
9.1
8.8
8.6
8.7
8.5
Top 5 Customers %
19.8
20.0
20.3
20.7
20.5
Top 10 Customers %
29.3
29.1
29.3
29.5
29.4
Customers Served (Last Twelve Months)*
1,012
1,004
981
978
944
Customers with >$1M in Revenues (Last Twelve Months)
346
341
339
339
336
(*) Represents customers with more than $100,000 in revenues in the last twelve months.
Investor Relations Contact:
Arturo Langa, Globant
[email protected]
+1 (877) 215-5230
Media Contact:
Gregorio Lascano, Globant
[email protected]
+1 (877) 215-5230
1 Represents Asia, Oceania and the Middle East.
SOURCE GLOBANT