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- **Revenue Beats Expectations**: Q3 2025 revenue of $617.1 million (+0.4% YoY) exceeded guidance, with bookings up 30% YoY.
- **AI-Driven Growth**: 900 AI projects in pipeline, AI Pods pipeline doubled in 2.5 months, and 17 top clients engaging with subscription model.
- **Margin Resilience**: Operating margin improved to 15.5%, with free cash flow of $67.5 million and $125M buyback program.
- **2026 Outlook**: Cautious optimism on stabilization in professional services and AI-driven deal flow.

**【CEO Summary Section】**
- Q3 2025 revenue reached $617.1 million, exceeding guidance by $2 million, with bookings growing 30% year-over-year.
- AI adoption is accelerating, with 900 AI-related projects in the pipeline and 17 of top 20 clients engaging with the new subscription model.
- Emphasis on reinvention through AI Studios and Core Studios, driving enterprise-wide transformation via Globant Enterprise AI platform.

**【CFO Financial Commentary】**
- Adjusted gross profit margin remained stable at 38.9%, while adjusted operating margin improved to 15.5% (up 50 basis points sequentially).
- Free cash flow generation was strong at $67.5 million, with a $125 million share buyback program announced to enhance shareholder value.
- Full-year 2025 revenue guidance revised to $2.04474 billion, reflecting 1.3% year-over-year growth.

**【Q&A Key Highlights】**
- **AI Adoption & Pipeline Growth**: 900 AI readiness projects in pipeline, AI Pods pipeline doubled in 2.5 months, and 56.7% of bookings from 100-squared clients.
- **Subscription Model Momentum**: 17 of top 20 clients in discussions for AI Pods, with YPF and Riot Games as flagship examples.
- **2026 Outlook**: CFO expects stabilization in professional services and cautious optimism on growth, with focus on margin discipline.
- **Headcount & Productivity**: Headcount growth will align with deal flow, with utilization targeting 80% to balance AI-driven productivity gains.

Globant S.A. (GLOB) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

GLOB

GLOB fundamentals

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