EX-99.1 2 tm2523559d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

August 14, 2025

 

Globant Reports 2025 Second Quarter Financial Results

 

LUXEMBOURG / August 14, 2025 - Globant (NYSE: GLOB) today announced results for the three months ended June 30, 2025.

 

“This quarter, we continued making the strategic investments and bold moves needed to fully align with our new business model. As GenAI adoption accelerates across industries and the AI ecosystem grows in complexity, our market opportunity expands even further. Our pipeline has reached an all-time high of $3.7 billion—up 25% year-over-year—reflecting strong demand for our differentiated offering. At the center of this growth are our AI Pods, subscription model, AI Studios, and Globant Enterprise AI platform, which together define the “golden path” for enterprise-scale GenAI adoption. With our subscription model and AI Pods, we are reinventing the professional services industry—positioning Globant as a full-stack AI company that designs, builds, and integrates technology, platforms, and industry-specific expertise into scalable, outcome-driven solutions”, expressed Martín Migoya, Globant CEO and co-founder.

 

“Our second-quarter results underscore the resilience and operational discipline of our business. We delivered revenues of $614.2 million, an adjusted operating margin of 15.0%, and an adjusted diluted EPS of $1.53, reflecting both consistent execution and our ability to adapt in a dynamic market. During the quarter, we complemented our growth trajectory with the execution of strategic investments and a Business Optimization Plan, which included a one-time charge of $47.6 million. This initiative is a vital step toward enhancing our near-term profitability while strategically allocating resources for our AI Pods, subscription model and Globant Enterprise AI, positioning us as a full stack AI-company," 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.

 

Second Quarter 2025 Financial Highlights

 

·Revenues rose to $614.2 million, representing 4.5% year-over-year growth.
·IFRS Gross Profit Margin was 35.4% compared to 35.7% in the second quarter of 2024.
·Non-IFRS Adjusted Gross Profit Margin was 38.1% compared to 38.1% in the second quarter of 2024.
·IFRS Profit from Operations Margin was 1.0% compared to 9.2% in the second quarter of 2024.
·Non-IFRS Adjusted Profit from Operations Margin was 15.0% compared to 15.1% in the second quarter of 2024.
·IFRS Diluted EPS was $(0.05) compared to $0.87 in the second quarter of 2024.
·Non-IFRS Adjusted Diluted EPS was $1.53 compared to $1.51 in the second quarter of 2024.

 

 

 

 

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

·Cash and cash equivalents and Short-term investments were $174.2 million as of June 30, 2025.
·Globant completed the second quarter of 2025 with 30,084 Globers, 28,097 of whom were technology, design and innovation professionals.
·The geographic revenue breakdown for the second quarter of 2025 was as follows: 54.1% from North America (top country: US), 19.7% from Latin America (top country: Argentina), 19.6% from Europe (top country: Spain) and 6.6% from New Markets1 (top country: Saudi Arabia).
·Globant’s top customer, top five customers and top ten customers for the second quarter of 2025 represented 8.6%, 20.3% and 29.3% of revenues, respectively.
·During the twelve months ended June 30, 2025, Globant served a total of 981 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 329 for the same period one year ago.
·In terms of currencies, 64.1% of Globant’s revenues for the second quarter of 2025 were denominated in US dollars.

 

2025 Third Quarter and Full Year Outlook

 

Based on current market conditions, Globant is providing the following estimates for the third quarter and the full year of 2025:

 

·Third quarter 2025 Revenues are estimated to be at least $615.0 million, or 0.1% year-over-year growth. This expected growth includes a positive FX impact of 50 basis points.
·Third quarter 2025 Non-IFRS Adjusted Profit from Operations Margin is estimated to be at least 15.0%.
·Third quarter 2025 Non-IFRS Adjusted Diluted EPS is estimated to be at least $1.53 (assuming an average of 45.6 million diluted shares outstanding during the third quarter).
·Fiscal year 2025 Revenues are estimated to be at least $2,445.0 million, implying at least 1.2% year-over-year revenue growth. This expected growth includes a positive FX impact of 25 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 45.5 million diluted shares outstanding during 2025).

 

 

1 Represents Asia, Oceania and the Middle East.

 

 

 

 

Shareholder Letter, Conference Call and Webcast

 

A shareholder letter will be available in the Investor Relations section of Globant's website. Martin Migoya, Globant's Chief Executive Officer & co-founder, Juan Urthiague, Globant’s Chief Financial Officer, and Diego Tártara, Globant’s Chief Technology Officer, will discuss the second quarter 2025 results in a video conference call today beginning at 4:30 pm ET. This call will be followed by a live Q&A session.

 

Video conference call access information is:

https://more.globant.com/F2Q25EarningsCall

Webcast http://investors.globant.com/

 

About Globant (NYSE:GLOB)

 

At Globant, we create the digitally-native products that people love. We bridge the gap between businesses and consumers through technology and creativity, leveraging our expertise in AI. We dare to digitally transform organizations and strive to delight their customers.

 

We have more than 30,000 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 June 30, 2025 and December 31, 2024 and its condensed interim consolidated statements of comprehensive income for the three and six months ended June 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, 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, our pipeline, 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)

 

   Six months ended   Three Months Ended 
   June 30, 2025   June 30, 2024   June 30, 2025   June 30, 2024 
Revenues   1,225,265    1,158,539    614,180    587,461 
Cost of revenues   (794,394)   (746,769)   (396,539)   (377,912)
Gross profit   430,871    411,770    217,641    209,549 
                     
Selling, general and administrative expenses   (321,238)   (306,699)   (159,543)   (154,585)
Net impairment losses on financial assets   (6,339)   (5,327)   (4,660)   (3,162)
Business Optimization Costs   (47,580)       (47,580)    
Other operating income and expenses,       1,961        1,961 
Profit from operations   55,714    101,705    5,858    53,763 
                     
Finance income   1,923    2,527    978    1,402 
Finance expense   (20,599)   (13,502)   (10,972)   (6,233)
Other financial results, net   861    5,606    (239)   532 
Financial results, net   (17,815)   (5,369)   (10,233)   (4,299)
                     
Share of results of investment in associates   6    56    23    70 
Other income and expenses, net   (3,385)   10,606    (114)   595 
Profit (Loss) before income tax   34,520    106,998    (4,466)   50,129 
                     
Income tax   (7,749)   (23,044)   742    (10,104)
Net income (loss) for the period   26,771    83,954    (3,724)   40,025 
                     
Other comprehensive income, net of income tax effects                    
Items that may be reclassified subsequently to profit and loss:                    
- Exchange differences on translating foreign operations   80,377    (43,013)   51,288    (24,405)
- Net change in fair value on financial assets measured at FVOCI   (5,798)   1,019    (5,798)   894 
- Gains and losses on cash flow hedges   13,158    (13,133)   3,000    (4,378)
Total comprehensive income for the period   114,508    28,827    44,766    12,136 
                     
Net income attributable to:                    
Owners of the Company   28,252    83,718    (2,383)   38,658 
Non-controlling interest   (1,481)   236    (1,341)   1,367 
Net income (loss) for the period   26,771    83,954    (3,724)   40,025 
                     
Total comprehensive income for the period attributable to:                    
Owners of the Company   109,574    30,598    41,850    11,589 
Non-controlling interest   4,934    (1,771)   2,916    547 
Total comprehensive income for the period   114,508    28,827    44,766    12,136 
Earnings per share                    
Basic   0.64    1.94    (0.05)   0.89 
Diluted   0.62    1.89    (0.05)   0.87 
Weighted average of outstanding shares (in thousands)                    
Basic   44,177    43,172    44,298    43,244 
Diluted   45,424    44,220    44,298    44,292 

 

 

 

 

Globant S.A.

Condensed Interim Consolidated Statements of Financial Position as of June 30, 2025 and December 31, 2024

(In thousands of U.S. dollars, unaudited)

 

   June 30, 2025   December 31, 2024 
ASSETS          
Current assets          
Cash and cash equivalents   167,431    142,093 
Investments   6,812    13,992 
Trade receivables   636,387    605,002 
Other assets   32,099    20,420 
Other receivables   97,586    53,939 
Other financial assets   9,889    3,100 
Total current assets   950,204    838,546 
           
Non-current assets          
Investments   2,398    2,212 
Other assets   5,989    4,750 
Other receivables   48,862    40,784 
Deferred tax assets   84,534    80,811 
Investment in associates   1,653    1,648 
Other financial assets   41,241    41,403 
Property and equipment   147,939    154,755 
Intangible assets   358,803    377,365 
Right-of-use assets   104,947    122,884 
Goodwill   1,650,680    1,517,252 
Total non-current assets   2,447,046    2,343,864 
TOTAL ASSETS   3,397,250    3,182,410 
           
LIABILITIES          
Current liabilities          
Trade payables   113,271    114,743 
Payroll and social security taxes payable   217,029    239,440 
Borrowings   20,174    1,601 
Other financial liabilities   146,679    153,803 
Lease liabilities   25,968    29,736 
Tax liabilities   22,797    36,916 
Income tax payable   8,867    6,520 
Other liabilities   99    231 
Total current liabilities   554,884    582,990 
           
Non-current liabilities          
Trade payables   4,957    2,006 
Borrowings   409,115    290,935 
Other financial liabilities   102,036    125,651 
Lease liabilities   81,397    87,887 
Deferred tax liabilities   29,555    29,611 
Income tax payable   1,216    6,625 
Payroll and social security taxes payable   1,712    5,187 
Provisions for contingencies   23,096    18,169 
Total non-current liabilities   653,084    566,071 
TOTAL LIABILITIES   1,207,968    1,149,061 
           
Capital and reserves          
Issued capital   53,408    52,837 
Additional paid-in capital   1,239,070    1,193,029 
Other reserves   (63,434)   (144,756)
Retained earnings   891,073    862,821 
Total equity attributable to owners of the Company   2,120,117    1,963,931 
Non-controlling interests   69,165    69,418 
Total equity   2,189,282    2,033,349 
TOTAL EQUITY AND LIABILITIES   3,397,250    3,182,410 

 

 

 

 

Globant S.A.

Selected Cash Flow Data

(In thousands of U.S. dollars, unaudited)

 

   Three Months Ended 
   June 30, 2025   June 30, 2024 
Net Income for the period   (3,724)   40,025 
Non-cash adjustments, taxes and others   57,883    41,788 
Changes in working capital   (32,281)   (71,646)
Cash flows from operating activities   21,878    10,167 
Capital expenditures   (24,735)   (38,155)
Cash flows from investing activities   (68,763)   (60,656)
Cash flows from financing activities   103,757    (17,514)
Net increase/decrease in cash & cash equivalents   56,872    (68,003)

 

 

 

 

Globant S.A.

Supplemental Non-IFRS Financial Information

(In thousands of U.S. dollars, unaudited)

 

   Six months ended   Three Months Ended 
   June 30, 2025   June 30, 2024   June 30, 2025   June 30, 2024 
Reconciliation of adjusted gross profit                    
Gross profit   430,871    411,770    217,641    209,549 
Depreciation and amortization expense   22,241    15,958    11,085    8,525 
Share-based compensation expense - Equity settled   13,203    12,901    5,513    5,759 
Adjusted gross profit   466,315    440,629    234,239    223,833 
Adjusted gross profit margin   38.1%   38.0%   38.1%   38.1%
                     
Reconciliation of selling, general and administrative expenses                    
Selling, general and administrative expenses   (321,238)   (306,699)   (159,543)   (154,585)
Depreciation and amortization expense   59,594    50,507    29,939    25,442 
Share-based compensation expense - Equity settled   27,660    26,714    14,275    14,399 
Acquisition-related charges (a)   12,206    15,584    5,639    5,986 
Adjusted selling, general and administrative expenses   (221,778)   (213,894)   (109,690)   (108,758)
Adjusted selling, general and administrative expenses as % of revenues   (18.1)%   (18.5)%   (17.9)%   (18.5)%
                     
Reconciliation of adjusted profit from operations                    
Profit from operations   55,714    101,705    5,858    53,763 
Share-based compensation expense - Equity settled   40,863    39,615    19,788    20,158 
Acquisition-related charges (a)   38,477    32,880    18,872    14,736 
Business optimization costs (b)   47,580        47,580     
Adjusted profit from operations   182,634    174,200    92,098    88,657 
Adjusted profit from operations margin   14.9%   15.0%   15.0%   15.1%
                     
Reconciliation of net income for the period                    
Net income for the period   28,252    83,718    (2,383)   38,658 
Share-based compensation expense - Equity settled   40,378    39,425    19,359    20,077 
Acquisition-related charges (a)   54,266    26,380    26,309    16,440 
Business optimization costs (b)   46,453        46,453     
Tax effect of non-IFRS adjustments   (31,811)   (15,117)   (20,035)   (8,313)
Adjusted net income   137,538    134,406    69,703    66,862 
Adjusted net income margin   11.2%   11.6%   11.3%   11.4%
                     
Calculation of adjusted diluted EPS                    
Adjusted net income   137,538    134,406    69,703    66,862 
Diluted shares   45,424    44,220    45,545    44,292 
Adjusted diluted EPS   3.03    3.04    1.53    1.51 

 

(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 six months ended June 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  Q2 2024   Q3 2024   Q4 2024   Q1 2025   Q2 2025 
Total Employees   29,112    29,998    31,280    31,102    30,084 
IT Professionals   27,133    27,927    29,198    29,022    28,097 
                          
North America Revenues %   56.3    55.7    55.2    55.5    54.1 
Latin America Revenues %   23.0    21.8    20.4    19.6    19.7 
Europe Revenues %   16.9    17.6    17.7    18.2    19.6 
New Markets Revenues %   3.8    4.9    6.7    6.7    6.6 
                          
USD Revenues %   67.1    66.6    64.8    67.2    64.1 
Other Currencies Revenues %   32.9    33.4    35.2    32.8    35.9 
                          
Top Customer %   8.3    9.1    9.1    8.8    8.6 
Top 5 Customers %   21.0    21.0    19.8    20.0    20.3 
Top 10 Customers %   30.3    30.1    29.3    29.1    29.3 
                          
Customers Served (Last Twelve Months)*   958    969    1,012    1,004    981 
Customers with >$1M in Revenues (Last Twelve Months)   329    331    346    341    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