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Overview of Globant's Financial Results for Q3 2025

Globant, listed on the NYSE under the ticker GLOB, recently published its financial results for the third quarter and the nine months ending September 30, 2025. As the digital transformation landscape continues to evolve, Globant has affirmed its dedication to long-term growth, leveraging a unique value proposition centered around core pillars including AI Pods, a subscription model, AI Studios, and the Globant Enterprise AI platform.

CEO and co-founder Martín Migoya articulated the company's strategic focus on high-potential clients across various sectors such as energy, sports, and gaming, which have yielded promising results. This emphasis on becoming the preferred partner for organizations aiming to integrate AI into their operations demonstrates Globant's commitment to innovation in a rapidly changing market.

Financial Highlights

For the third quarter of 2025, Globant reported revenues of $617.1 million, marking a 0.4% year-over-year increase. This performance exceeded the company's guidance, showcasing strong demand for its services despite facing currency fluctuations. Notably, the company achieved a free cash flow of $67.5 million during this quarter, indicating effective cash management and profitability amidst challenging economic conditions.

Detailed Financial Metrics

• - Gross Profit Margin (IFRS): 34.8% compared to 36.2% in Q3 2024.
• - Adjusted Gross Profit Margin (Non-IFRS): 38.1%, slightly down from 38.5% year-over-year.
• - Profit from Operations Margin (IFRS): 9.1%, a decrease from 10.6% in the prior year.
• - Adjusted Profit from Operations Margin (Non-IFRS): 15.5%, reflecting a marginal decline from 15.6% in Q3 2024.
• - Diluted EPS (IFRS): $0.73 versus $0.98 in Q3 2024.
• - Adjusted Diluted EPS (Non-IFRS): $1.53 compared to $1.63 last year.

In the nine-month period ending September 30, 2025, revenues reached $1,842.4 million, showing a 3.9% year-over-year increase. However, there was a slight decline in gross profit margin and operating margins, which the company attributes to various external economic factors.

Global Revenue Distribution

Globant’s revenue distribution is diverse, highlighting its global reach:

• - North America: 53.8% (mainly from the U.S.)
• - Latin America: 19.9% (primarily from Argentina)
• - Europe: 19.4% (led by Spain)
• - New Markets: 6.9% (notably from Saudi Arabia)

This geographical revenue breakdown illustrates the company’s solid footing in established markets while making inroads into new territories.

Future Outlook

Looking ahead, Globant anticipates revenues in Q4 2025 to be at least $605 million, reflecting a projected year-over-year decrease of 5.8%, partially mitigated by favorable foreign exchange impacts. For the entire fiscal year 2025, the revenue target is set at approximately $2,447.4 million, indicating a growth expectation of at least 1.3%.

The company also projects an adjusted diluted EPS of at least $6.12 for 2025, with a compliance strategy that includes share repurchases as part of its capital allocation.

Conclusion

Globant's strong financial performance in Q3 2025 indicates robust demand for its innovative solutions and a steady commitment to driving AI across various sectors. With a clear vision and strategic initiatives aimed at enhancing its market position, Globant is poised to continue its growth trajectory in the evolving tech landscape, reinforcing its role as a leader in digital transformation.

For ongoing updates and more detailed insights, stakeholders are encouraged to check the Investor Relations section of Globant’s website, where management will discuss these results further in an upcoming video conference call.