EX-99.1 2 tm2531108d2_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

November 13, 2025

 

Globant Reports 2025 Third Quarter Financial Results

 

LUXEMBOURG / November 13, 2025 - 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

 

·Revenues rose to $617.1 million, representing 0.4% year-over-year growth.
·IFRS Gross Profit Margin was 34.8% compared to 36.2% in the third quarter of 2024.
·Non-IFRS Adjusted Gross Profit Margin was 38.1% compared to 38.5% in the third quarter of 2024.
·IFRS Profit from Operations Margin was 9.1% compared to 10.6% in the third quarter of 2024.
·Non-IFRS Adjusted Profit from Operations Margin was 15.5% compared to 15.6% in the third quarter of 2024.
·IFRS Diluted EPS was $0.73 compared to $0.98 in the third quarter of 2024.
·Non-IFRS Adjusted Diluted EPS was $1.53 compared to $1.63 in the third quarter of 2024.

 

Nine months ended September 30, 2025 Financial Highlights

 

·Revenues rose to $1,842.4 million, representing 3.9% year-over-year growth.
·IFRS Gross Profit Margin was 35.0% compared to 35.8% in the first nine months of 2024.
·Non-IFRS Adjusted Gross Profit Margin was 38.1% compared to 38.2% in the first nine months of 2024.
·IFRS Profit from Operations Margin was 6.1% compared to 9.4% in the first nine months of 2024.

 

 

 

 

·Non-IFRS Adjusted Profit from Operations Margin was 15.1% compared to 15.2% in the first nine months of 2024.
·IFRS Diluted EPS was $1.35 compared to $2.88 in the first nine months of 2024.
·Non-IFRS Adjusted Diluted EPS was $4.57 compared to $4.67 in the first nine months of 2024.

 

Other Metrics as of and for the quarter ended September 30, 2025

·Cash and cash equivalents and Short-term investments were $167.0 million as of September 30, 2025.
·Globant completed the third quarter of 2025 with 29,020 Globers, 27,123 of whom were technology, design and innovation professionals.
·The geographic revenue breakdown for the third quarter of 2025 was as follows: 53.8% from North America (top country: US), 19.9% from Latin America (top country: Argentina), 19.4% from Europe (top country: Spain) and 6.9% from New Markets1 (top country: Saudi Arabia).
·Globant’s top customer, top five customers and top ten customers for the third quarter of 2025 represented 8.7%, 20.7% and 29.5% of revenues, respectively.
·During the twelve months ended September 30, 2025, Globant served a total of 978 customers (with revenues over $100,000 in the last twelve months) and continued to increase its wallet share, with 339 accounts generating more than $1 million of annual revenues, compared to 331 for the same period one year ago.
·In terms of currencies, 63.2% of Globant’s revenues for the third quarter of 2025 were denominated in US dollars.

 

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:

 

·Fourth quarter 2025 Revenues are estimated to be at least $605.0 million, or -5.8% year-over-year growth. This expected growth includes a positive FX impact of 150 basis points.
·Fourth quarter 2025 Non-IFRS Adjusted Profit from Operations Margin is estimated to be at least 15.0%.
·Fourth quarter 2025 Non-IFRS Adjusted Diluted EPS is estimated to be at least $1.53 (assuming an average of 45.2 million diluted shares outstanding during the fourth quarter).
·Fiscal year 2025 Revenues are estimated to be at least $2,447.4 million, implying at least 1.3% year-over-year revenue growth. This expected growth includes a positive FX impact of 30 basis points.
·Fiscal year 2025 Non-IFRS Adjusted Profit from Operations Margin is estimated to be at least 15.0%.
·Fiscal year 2025 Non-IFRS Adjusted Diluted EPS is estimated to be at least $6.12 (assuming an average of 45.2 million diluted shares outstanding during 2025).

 

Shareholder Letter, Conference Call and Webcast

 

A shareholder letter will be available in the Investor Relations section of Globant’s website.

 

 

1 Represents Asia, Oceania and the Middle East.

 

 

 

 

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