Gloo Holdings, Inc.

What they do

Gloo sells into two groups: churches and frontline organizations (CFLs) that serve communities directly, and network capability providers (NCPs) that equip those organizations. The company organizes its offerings around Powering Tech, which modernizes customer technology systems, data and workflows, and Powering Reach, which provides media, marketing, fundraising and data capabilities for donor development. It monetizes these capabilities through subscriptions, marketplace transactions, advertising and platform solutions, and increasingly takes on work customers previously performed internally using agentic AI. Gloo also operates e-commerce marketplaces, including Outreach, Inc., its largest online marketplace, and holds consolidated subsidiaries and equity method investments it calls Capital Partners.

Revenue drivers

• Subscriptions — NCPs purchase enterprise subscriptions to outsourced technology and capabilities, while CFLs purchase subscriptions to communication tools, content libraries, data insights and AI capabilities; this is one of the three revenue types Gloo accounts for as platform revenue, though the filings do not break out its share of total revenue.
• Marketplace — CFLs transact through e-commerce marketplaces operated by Gloo and its Gloo Capital Partners, including Outreach, Inc., described as the largest online marketplace; like subscriptions, it is accounted for within platform revenue with no separately disclosed figure.
• Advertising — The company sells advertising services to NCPs, the third component of platform revenue; the filings state the category but do not disclose its individual contribution to total revenue.
• Platform Solutions — NCPs purchase platform solutions from Gloo, the one revenue type the company excludes from its platform revenue grouping; no standalone revenue figure for this line is provided in the excerpts.

Recent performance

Second quarter fiscal 2026 revenue was $46.6 million, up 188% year over year and above guidance of $44.0 million and analyst consensus. Net loss narrowed to $21.2 million from $44.1 million in the prior-year quarter, while Adjusted EBITDA was negative $8.3 million, ahead of guidance of negative $8.5 million and a $3.2 million sequential improvement from negative $11.5 million in the first quarter. The quarter marked the third consecutive sequential Adjusted EBITDA improvement. For the first nine months of fiscal 2026, quarterly revenue rose from $32.6 million (October 2025) to $33.6 million (January 2026), $41.5 million (April 2026) and $46.6 million (July 2026).

Strategy

Gloo is building what it calls the core technology infrastructure for the faith and flourishing ecosystem, organized around Powering Tech and Powering Reach and supported by Applied AI capabilities. It is shifting toward assuming responsibility for customer technology operations and applying tailored agentic AI solutions, aiming to expand beyond traditional software spend into larger labor budgets while creating higher-margin, more durable revenue. Acquisitions are central to the strategy: since becoming public the company has completed five — Westfall Gold, XRI, Enterprise Marketdesk, Midwestern Interactive and Cedarstone — adding fundraising, media, marketing, donor development, technology and accountancy capabilities. Management expects to fund this growth with a roughly flat absolute operating expense base.

Risks

• Persistent losses and cash burn — Gloo reported a fiscal 2026 net loss of $157.1 million, revenue of $94.7 million and negative operating cash flow of $80.5 million.
• Dependence on donations-funded customers — The filings state that the significant majority of the faith ecosystem's economic activity is driven by donations, making Gloo's customers' spending sensitive to donor generosity.
• Integration risk from an acquisition-heavy model — Five acquisitions — Westfall Gold, XRI, Enterprise Marketdesk, Midwestern Interactive and Cedarstone — have been completed since the IPO, each requiring integration of capabilities, expertise and customer relationships.
• Concentration in large enterprise contracts — Gloo has more than 30 customers each generating $1 million-plus in annual contract value and one exceeding $10 million, meaning revenue is increasingly concentrated in a limited set of large accounts.

Outlook

Management raised fiscal year 2026 revenue guidance to $200 million, which it says more than doubles prior-year revenue, and expects operating expenses to remain approximately flat in absolute dollars. The company expects to approach Adjusted EBITDA break-even in the third quarter and achieve Adjusted EBITDA profitability in the fourth quarter of fiscal 2026. Gloo also said it extended the term of its $13.2 million senior secured loan by one year to April 2028, providing additional flexibility in 2027. Universities are cited as a continued growth vertical, with over forty universities served.