Gloo Holdings sees revenue surge of 432% year-over-year, expects over $180 million in 2026, and aims for positive adjusted EBITDA by Q4 2026.

Good day and thank you for standing by. Welcome to the Gloo Holdings fiscal third quarter 2025 earnings conference call. At this time all participants are in a listen only mode. Speakers Excuse me. After the speaker's presentation there will be a question and answer session. To ask a question Gloo Holdingsring the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised to withdraw your question. Please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to Oliver Rowe, Chief Marketing and Communications Officer. Please go ahead.

Thank you Operator and thank you to all of you for joining our fiscal third quarter 2025 earnings conference call. We will be discussing Gloo Holdings' performance for the third quarter ended October 31, 2025 as well as providing guidance for the fiscal fourth quarter 2025 and fiscal year 2026. Joining me on today's call are CEO and Co Founder Scott Beck and CFO Paul Siemens. Our Board Chair and Head of Technology Pat Gelsinger will also join the Q and A session. Before we begin, please be reminded that this call will contain forward looking statements which are based on Gloo Holdings' current expectations, but which are subject to risks and uncertainties relating to future events and or the future financial performance of Gloo Holdings. Actual results could differ materially from those anticipated in these forward looking statements. A discussion of some of the risks that could cause actual results to differ materially from our forward looking statements can be found in today's press release and elsewhere in our filings with the securities and Exchange Commission, including our prospectus dated November 18, 2025 and our subsequent quarterly report on Form 10Q that we expect to file later this week. Both will be available on Glue's investor relations website at investors.glu.com and the SEC's website. In addition, Gloo Holdingsring today's call we will discuss certain non GAAP financial measures, reconciliations of these non GAAP metrics to the most directly comparable GAAP metrics, as well as the definitions of each measure. Their limitations and our rationale for using them are included in today's press release and in our form 10Q and now turn the call over to Scott.

Thanks Oliver and thank you all for joining us today for our first earnings call as a public company. Q3 has been a solid start to this next chapter of our journey. Revenue grew 432% year over year and 101% compared to Q2. This reflects strong demand across our platform and meaningful growth through acquisitions that have strengthened our business and expanded our capabilities. We also delivered sequential adjusted EBITDA improvement and we expect additional ebitda improvement in Q4 and we expect the pace of that improvement to accelerate beginning in Q1 2026. We are executing our growth plan and expect revenue in excess of $180 million in fiscal year 2026. Moreover, we're committed to achieving positive adjusted EBITDA by the end of Q4 2026. Because this is our first earnings call as a public company, I'd like to take a few minutes to provide an overview of Gloo Holdings, our mission, the value we deliver, and our strategy for long term growth. Gloo Holdings is building the leading technology platform that connects and serves the faith and flourishing ecosystem. This ecosystem is one of the oldest, largest and most resilient in the world, yet one that remains highly fragmented and significantly underserved by modern technology. Let me briefly describe the two core parts of this ecosystem. You'll hear us refer to them often. First, there are churches and frontline organizations. Actually, there are more than 315,000 churches in the United States and over 100,000 other not for profit organizations serving people and communities on critical social issues such as recovery, anti human trafficking and many more. Second, there are network capability providers, the organizations that develop the tech, content, solutions and services that equip those churches and the frontline practitioners. Importantly, Gloo Holdings serves both sides of this ecosystem. The Gloo Holdings platform includes technology infrastructures, advertising, tech, marketing services and consulting solutions. Gloo Holdings also has a marketplace for churches and ministries. All of this is offered directly by us and by our subsidiaries which we refer to as Gloo Holdings Capital Partners. Additionally, values aligned AI capabilities are embedded across the Gloo HoldingsE offering, ensuring that AI can be harnessed for good, helping people flourish and communities thrive. Our platform benefits from a powerful Flywheel effect. The platform becomes more valuable to churches and frontline leaders every time a new network capability provider joins. And as more churches and frontline leaders engage on the platform, the distribution opportunities become more valuable to network capability providers. This mutually reinforcing model strengthens the network effects and increases the platform stickiness over time. Becoming a public company helps us accelerate this flywheel, giving us greater ability to invest in both organic growth and strategic acquisitions. As we've announced, We've recently closed two new acquisitions. First is Igniter, a 15 year old media innovator that serves over 10,000 churches with content and media subscriptions. The second is XRI Global, a leader in AI delivering advanced voice and language translation tech. I'll also note that since our IPO, the pipeline and the pace of our M&A opportunities has increased through acquisitions. We bring the best in class network capability providers into Gloo Holdings Capital Partners which expands our offerings, deepens the value of our platform and further reinforces the flywheel as we scale. For example, earlier this year we acquired masterworks, a leading ad tech, marketing and fundraising company. They help organizations grow their impact, accelerate their mission and deepen donor relationships. Today we are also super excited to announce our definitive agreement to acquire Westfall Gold, a leader in major donor engagement. This latest planned acquisition is another powerful example of our flywheel in action. Westfall Gold will deepen our role in helping organizations build sustainable sustainable mission aligned funding models. They provide donor development capabilities for nonprofit organizations, engaging high capacity and high impact donors. They do this with data driven insights and world class donor experiences. This is particularly significant because donor management is the very heart of of the Faith and Flourishing ecosystem. Together with MasterWorks, this extends our core competencies in the central economic engine of this ecosystem. Increasing donations MasterWorks and Westfall Gold, with decades of proven success, also create significant cross sell and upsell opportunities with one another as well as with our barna and Gloo Holdings 360 offerings. We expect the acquisition to contribute approximately 20 million in revenue in fiscal year 2026 and contribute positive 2026 EBITDA as well. We intend to close this transaction before our fiscal year end on January 31, 2026. Now I'd like to turn to our AI strategy. Gloo Holdings is developing vertical specific values aligned AI. It's designed to serve the unique needs of the Faith and Flourishing ecosystem. As I mentioned earlier this quarter we expanded our AI capabilities through the acquisition of XRI Global. XRI has pioneered advanced voice, AI and multilingual technologies that engage people across thousands of languages, including low resource languages that most AI models can't serve. This acquisition significantly strengthens our AI stack. It also increases the revenue opportunities for Gloo Holdings AI and and Gloo Holdings 360 a few of our subscription based enterprise offerings. As we advance these capabilities, we are also building and equipping a broader community of developers to innovate on top of the Gloo Holdings platform. The developer response has been strong. This year Gloo Holdings AI Hackathon brought together more than 700 developers to create faith aligned AI applications. Leveraging our platform, we continue to take a leadership role in shaping AI for good. This includes developing a comprehensive benchmarking framework so that developers and organizations can measure how the leading large language models perform in accordance with the seven dimensions of human flourishing. Earlier this week we introduced the Flourishing AI Christian Benchmark, a new tool that provides insights into how various models support the Christian worldview. Overall, we've seen good customer momentum across both sides of the ecosystem, churches and frontline organizations, and the network capability providers who serve them. So far in 2025 we have secured 20 customers that will contribute over a million dollars in annual contract revenue and we expect this pace to accelerate in 2026. Notable engagements include a multifaceted, multi year enterprise level engagement with American Bible society for both Gloo Holdings360 and MasterWorks. Gloo Holdings360 will support their technology infrastructure to enhance reliability, scalability and long term efficiency. MasterWorks will serve as their mass fundraising and marketing agency supporting their brand vision and revenue growth objectives. We're also very excited to announce a new initiative to develop the world's First Biblically aligned AI with YouVersion as a key partner. Working with YouVersion, who recently reached 1 billion installs across the family of Bible apps, will ensure this becomes a trusted tool for users worldwide. This will combine machine learning with centuries of biblical wisdom to help engage with scriptures and safely, deeply and accurately. Other Customer wins in Q3 include expanded agreements with Biblica, United Way of Greater Atlanta and Project Rescue. Looking ahead, Our long term ambition is to extend our position as the trusted infrastructure for technology enabled impact across the faith and flourishing ecosystem. We remain committed to harnessing technology for good so that we can serve those who serve and through them more people can flourish and organizations and communities can thrive. Paul will now take you through Q3 results in more detail, cover our guidance for Q4 and provide preliminary growth and profitability metrics for 2026. Paul, over to you.

Thank you Scott. It's good to be with you for our first earnings call as a public company. Building on the strategic context Scott just shared, I'll walk you through our financial. Performance for the quarter. This was a solid first quarter as a public company and our results reflect good infusion across the business and a significant inflection point for revenue growth. As Scott highlighted, demand across both sides of the ecosystem combined with the early impact of our acquisitions contributed strong top line growth. Revenue for the quarter was $32.6 million, an increase to 432 percent compared to the same period last year and 101% sequential growth compared to Q2 year over year results were driven by solid organic growth across the portfolio as well as acquisitions of several capital partner businesses, most notably masterworks and MidwestRing. Our platform revenue includes advertising, marketplace and subscription offerings. Platform revenue totaled $19.8 million, an increase of $13.7 million from Q3 of last year and 127% growth rate. Much of this growth was driven by advertising revenue from MasterWorkss as new clients signed the Q2 fully ramped in Q3. This reflects the strong go to market execution referenced earlier during the quarter. We also closed the acquisition to Igniter, which had a small impact on revenue in the quarter. Going forward, Igniter subscription media product will primarily contribute to the platform revenue and align well with the broader platform strategy Scott prescribed. Our Platform Solutions revenue includes technology consulting and marketing services primarily delivered by capital partners MasterWorkss, MidwestRing and Cerber. Platform Solutions revenue was $12.7 million, up 71% sequentially supported by a strong performance from both MasterWorks and and MidwestRing. MasterWorkss experienced a shift in timing of some revenue typically associated with the fourth quarter taking place in the third quarter. Midwestroom continues to see strong demand for development services and is expanding its sales capacity to meet that interest. As a reminder, MasterWorkss provides advertising offerings reported in Platform Revenue and marketing consulting services reported in platform solutions revenue. MidwestRing provide technology consulting also reported in. Platform Solutions. Gross margin was 76%, an improvement of 81% over the prior year period. The improvement was due to increases in subscription revenue and Platform Solutions revenue, which carried higher margins, partially offset by the shift that we had to be finding at MasterWorks. Affecting the quarter's margin mix, we see clear visibility to cost of revenue declining to the low 50% over time. Adjusted EBITDA improved sequentially at negative $19.2 million, a $500,000 improvement for use year. This improvement reflects incremental gains across nearly all our capital partners. As a reminder, our adjusted EBITDA calculation includes expenses associated with acquisitions that other Companies may consider one time in nature. As of October 31, 2025, we had $15.1 million of cash and cash programs. Our November IPO has approximately $72.3 million after underwriting discounts and expenses, significantly strengthening our balance sheet and converting a significant majority of our debt to equity. I'd like to now turn to to our Q4 2025 outlook. We expect revenue to be between 28 million and $30 million. This represents more than tripling revenue growth year over year. Our fourth quarter guidance assumes continued strong demand across the platform, partially offset by the shift in natural timing I mentioned earlier and the normal slower December and January seasonality in this ecosystem. For Q4, adjusted EBITDA is expected to be between 19.5 million, negative 19.5 million and negative $18.5 million, reflecting continued cost discipline. Westfall, which is expected to close in early 2026 is an adjusted EBITDA positive business and will play a positive role in our tax profitability. As the business in excess of $20 million in revenue, we expect a modest revenue contribution in Q4 with minimal EBITDA spread. As Scott noted. What follows A strategic bed bar platform Given the critical importance of governor management. of the Faith and Flourishing ecosystem. For Q4 we expect a weighted average share count of approximately 66 million shares normal average approximately 81 million shares in Q1 following the IPO debt conversion and recent M&A issuance. Importantly, $143.1 million of debt converted into equity which left US with approximately $36.7 million of debt on street 17.0 million of US is remote financing from several acquisitions, $12.9 million is senior secured note that did not convert as part of the ITO and the remainder is from one is from other notes payable. This significant reduction will meaningfully reduce interest expense moving forward. As part of the successful debt conversion related to the ipo, we incurred a number of meaningful non routine direct and non cash expenses totaling $11.2 million but do not continue after the these charges are adjusted out of our non GAAP net loss attributable to members of $26.7 million. Additionally, $12.3 million of non routine non cash financing measures are reflected as deductions attributable to members. A combination of these two sets of non routine costs results in a non debt net loss of $39.0 million available to stockholders. This amount available is used to calculate non GAAP loss per unit, which is a negative $4.71 for Q3. Looking ahead, our financial approach is focused on building a scalable business by expanding our core offerings, integrating strategic acquisitions and managing costs responsibly. With significant foundational investments already made, we believe we can now leverage our cost base more effectively to grow the top line and improve profitability. We're experiencing an exciting financial turning point for the company and are issuing early guidance for 2026 to provide investors with. A roadmap for our growth. We expect to nearly double revenue in 2026 to over $180 million. We're experiencing strong organic growth across the Gloo Holdings platform, including Blue 360 and other offerings. We are also assuming that $40 million of the $180 million will come from incremental acquisitions. Our acquisition at Westfall contributes approximately $20 million, about 40 million. We have a robust and actionable inmate pipeline. Next slide M and A is the front half, which is additionally we are firmly committed to achieving positive adjusted ebitda profitability in Q4 256 and expect a meaningful sequential improvement in adjusted EBITDA to begin in Q1 2026 as cost saving actions combined with revenue growth begin to flow through at that point. With that, I'll turn the call back to Scott for some closing comments.

Thank you Paul. Let me close by saying thank you to our team, our partners, our investors and all the organizations and people that we serve together. We spend more than a decade laying the groundwork for glue, investing heavily in our technology, our partnerships and our mission. Q3 marks a key inflection point in our business. We're now continuing this hockey stick growth phase that we've been building toward setting us up for a very strong 2026. Our goal is simple to build a large, profitable, mission driven company that serves those who serve in the Faith and Flourishing ecosystem so that these organizations can scale and thrive and the people that they serve can flourish. And we're doing this for the decades that are ahead. You have our commitment that we will execute with discipline. We will communicate transparently and deliver on doing what we say we're going to do. Over to you operator for Q and A.

Thank you. As a reminder, if you would like to ask a question, please press star 11 on your telephone. You will then hear an automated message advising your hand is raised. We also ask that you wait for your name and company to be announced before proceeding with your question. One moment while we compile the Q and A roster, our first question for the day will be coming from Richard Baldry of Roth Capital. Your line is open.

Thanks and congrats on a great quarter. You essentially hit my six month out revenue target, so makes life a little easier. I want to start with the more than 20 customers that should ramp to be over a million in annual contract value each. Can you walk through what they're buying? Are they multi product, multi service buys or are they large scale within one of the offerings where those buckets are coming in? Because that's obviously a good driver, an important driver of your organic growth.

Sure. Thanks Rich, this is Scott Beck. You know it's coming from a couple different areas. Obviously our Gloo360 offering is a very significant offering to be able to bring advanced technologies to take over the infrastructures for many of these ministries and organizations that just have a hard time keeping up with that. You know, in many instances they can be decades behind and our ability to come in and to now be able to provide next generation AI powered infrastructures is a Very significant driver of this. But in addition to that, you know, we also got a lot of that from the masterwork side where we've got major agreements and relationships and we're basically helping them develop from a donor standpoint, helping those organizations be able to reach more people, be able to get them powering the different organizations that they serve with greater donor engagement. We talked about earlier a good example of that being ABS American Bible Society, which we're working with on Both the blue 360 side as well as on the masterwork side. So those things are significant contributions as well. In addition, I guess one other area, Rick, would be what we're doing with Midwestern. Midwestern has been a great partner of ours being able to bring next generation technologies, leveraging our platform to be able to build tech for other businesses and other ministries in this ecosystem. So I could keep going and the pipeline is really strong look at 2026. But we're super excited to be able to be delivering at scale important technologies to the space and human flourishing ecosystem with many customers in excess of a million dollars for the year and maybe.

Drilling underneath that a little bit. Can you talk about what the factors are that gate how quickly those turn from deals to revenues? Sort of what pace is that? Are they all sort of similar or some that ramp quickly, some that take a little more time. So we get sort of an idea of a backdrop to how quickly those impact organic growth.

Yeah, this is Tad Weltzer and I'll give a little bit of color on that. And what we've seen is an acceleration. Of those opportunities this year. And we're definitely seeing that some of these deals now that we have solid proof points across different categories. You know, for instance, in the Bible translation category, the ABS example that we gave, we had Wickliff earlier in the year. So that's caused acceleration to other Bible training layers. We have multiple in the campus for state area. So we've seen acceleration in that category. We've now seen the university segment is now turning on and accelerating as well. So as we see the first points, we're able then to see acceleration for the subsequent closures. So I would say that everything that we're indicating is that the sales pipeline is robust, growing and closing faster than we would have expected. And the results that we already are seeing this quarter would be indicative of that accelerating pipeline. Got it.

And I'll just ask one more because I don't want to hog the call too much, but you know, with the pace of growth, you're doubling revenues Sequentially, Obviously acquisitions have been important to that and the pace has been fast enough. I don't think anyone thinks you should have realized all your synergies out of that yet. Can you talk about how much in synergy realization you should be able to see going forward from what you've put together? Sort of how far along you are, maybe ones that you've done a year ago versus ones that are just about to close. Just so we get an idea for how big a driver that can be of your move to adjusted ebitda. Positive. Thanks.

It is a factor for us next year as we look at our, you know, drive to profitability next year and accelerating quarter by quarter improvements in EBITDA next year. You know, the synergy realizations across the acquisitions that we've done, also our current core businesses become an increasing important role in accomplishing that ebitda. Now that we have solid platform in place, offerings like 360 in place, we're seeing acceleration in those benefits. But it is an area of cost discipline that we have to put in place across everything that we're doing. Those efforts are already underway, as we would say, and thus we have confidence in the next year goals because we've already initiated quite a number of those synergy realization and cost improvements. So we feel quite good for those. They're accelerating. You'll see those showing up somewhat next quarter, but on accelerated basis in Q1 and beyond.

I would add that the synergies both on the cost side as well as we were pointing out on the revenue side, those revenue side synergies are super important. You know, it's one of the things that we're so excited about in terms of Westfall Gold. But that's going on with with Midwestern and what's happening there with MasterWorkss. All of those basically create channel and partnership and synergy on the revenue side, which is also super important to accomplish in that reg. Great, thanks for your help.

Thank you. One moment for the next question. And our next question will be coming from the line of Yun Kim of Loop Capital Markets. Your line is open.

All right, Scott, Pat, Paul first, super congrats on a strong first quarter out of the gate. Scott, if you can give us some update on what type of investments you are making in regard to your glue360 business in terms of both sales headcount growth and overall service delivery capability.

Sure. Hey, thanks for the question, Pat. Why don't you give us your perspective on the investment in Blue360 and where. We'Re going with that?

Yeah, and you know, for it, it really fits into three different dimensions. One is sales capacity as you suggest, when we are ramping up our sales force and that is giving us more capacity to reach more segments and that hiring is underway. We're able to find very good candidates who have proven records and sales software, sales enterprise software that want to join a faith and values based organization like Gloo Holdings. So we're ramping up the sales capacity. Second, many of the glue 360 customers, we are taking on their staff. So immediately we get the infusion of their talent, which we're right sizing, upskilling and being able to add to our portfolio of resources for delivery. And then third is ramping very targeted capabilities in areas like specific SaaS applications, specific areas like security and IT services. But maybe most importantly, augmenting for AI and agentic capability that allow us to bring more margin to those relationships. So across a full set of capabilities, we're adding talent and seeing a very ripe market for 360. But I'd also emphasize that it's not just 360 proper, but when we have a beachhead of 360 we're able to deliver AI services. We have the opportunity to become their marketing partner with Masterworks and in many cases the teams that we have at Cerber and Midwestern become the project team but also are deemed further as a result of those relationships. So we see those 360 or enterprise relationships really being the beachhead for us to be able to service the network providers at scale across the full value proposition.

Okay, great. And given that the sales cycle related to glue 360 is probably fairly long, given the size of those deals, should we expect that typical seasonal back-end loaded kind of linearity for next year, 2026 in terms of overall booking performance, where majority of the bookings could happen more likely in the second half of the year.

Actually, the behavior that we're seeing is not the case. We are seeing the acceleration in the pipeline and the acceleration of deal closure for 360. So while exactly the characteristics that I would have expected is what you described, we're not seeing that once we have points in a category, we're seeing the category sales occur quickly and we're seeing the ability then for those accounts to come on board on an accelerated basis. So I think you're going to see nice quarter by quarter improvements in our revenue and in our EBIT contribution as a result of those accounts. I'd also say that it just emphasizes the value that Blue brings to this ecosystem. They have technology Gaps, they have deep needs for improvement in capabilities. And our ability to now have proven cases like the ABS example that American Bible Society that we gave on the call is evidence that we have capabilities that are desperately needed, desired and accelerated the CFA system.

Okay, and then one last question for me, Pat. In regard to the overall AI efforts, obviously there's a lot of talk about a capacity issue in the market. Are you running into any capacity issue and if you are, what are the steps you're taking to minimize that impact?

Overall, our AI capabilities, I don't think. We'Re at the scale yet that we're hitting any of those capacity issues. However, we do see one of our opportunities to be the values aligned provider to the ecosystem, build the cost structure and the scale, which is the question that you're really asking. And we're making sure that we're building all three of those. We're going to build a great platform with leading edge capabilities. Values align with the capacity and cost to serve this ecosystem. And we're planning carefully to make sure we have enough capacity in 26 and beyond to satisfy the ecosystem requirements. So a very active topic, but so far we don't see any constraints in our abilities to deliver.

Okay, great. Thank you so much.

Thank you. One moment for the next question. And our next question will be coming from the line of Jason Crayer of Craig Hilton. Your line is open.

Wonderful. Thank you guys. Great quarter. So I want to go back to the $20 million customers. As you look across the platform today, how many customers that you are currently engaged with have the potential to be million dollar customers? Yeah, great question. I mean, we've been working, you know, as you know, in this ecosystem for over a decade and those relationships run substantially deep when you look at our pipeline. Our pipeline includes a lot of those long term relationships, people that we've been working with, as well as a lot of current customers. So, you know, I think from our perspective, it's a pretty unbelievably large set of potential customers and current customers that can scale to over a million dollars. Now if you remember, we've got two sides of the ecosystem system that we serve, right? One side are the churches and the frontline organizations. That's not what we're going to see. Million dollar customers, that's where we're being able to scale. We're adding paying customers over there at scale, super excited and happy with that growth rate. But that's not where your million dollar customers come from. Your million dollar customers come from the network capability providers, right? The folks that are basically out there providing donor services like a Westfall Gold or Masterworks itself, the organizations that are the not for profits on the front line, whether it's the campus ministries, whether it's the child development organization, the different biotranslation organizations, on and on and on. So when you look at that, as well as combining that with the customer base that Midwestern has got, the current customer base that 360 is working against, we see a very, very significant customer based opportunity in million plus.

I would just add a few other quick points. One is we measured the TAM available for those network capability providers in the 60 billion range. So this is a very large market, tens of thousands of brands in that segment. So we see that there's just many customers for us to reach for it. I'd also say that the million dollar customers, we see increased penetration inside of those customers as well. So even as we are happy with the 20 million or the 20 over 1 million, we see that there's increased opportunity inside of every one of those customers.

I appreciate that. And then can you just maybe kind of compare and contrast the services or the capabilities that you're getting from MasterWorkss versus what you're bringing in with Westfall? And then maybe like if you look at the last several months you've had MasterWorkss, it seems like a very logical cross sell. And I'm just curious if there's any pushback in, if kind of Westfall can help fill in some of those gaps in terms of where there might be pushback. Yeah, thanks for sure.

These are incredibly synergistic. You know, as we said, you know, the donor is the heart of this ecosystem, right? The donors, one of the small donors into a church or the bigger donors into the, the different major ministries that are out there. It's at the heart and this is a very good, a very good set of synergies you can think about. Westfall Gold, which we're delighted to be bringing into the glue family today, is really the top end of the donor pyramid. They do amazing data driven, create incredible experiences. The best in class. To be able to nurture major donors into multi hundred thousand multimillion dollar types of commitments. They do this better than anybody in the ecosystem. However, after those events that they do and how do you keep nurturing those organizations between those major events? That's when a MasterWorkss shows up who's excellent at being able to do that nurture in between the events as well as the nurture for the smaller donors that then can become the larger donors. So both of those are really core to what we're thinking about in terms of going forward. We're delighted with it and they're delighted with One Metal. I mean, the folks at MasterWorkss are so excited that we've got Westfall Gold and the folks at Westfall Gold likewise are so excited to be able to partner at a deeper level with MasterWorkss. All right, that was very helpful. Thank you gentlemen.

Congrats.

Thank you. One moment for the next question. And our next question will be coming from the line of Dan Cuomos of the Benchmark company. Please go ahead.

Great, thanks. Obviously I will echo. Congratulations to you guys coming out strong out of the blocks. Scott, Pat, since this is your guys first call, and I know you've touched on pieces of this, but can you guys spend a little bit more time just kind of talking through the doctrine or guidelines that's informing the M and A for you guys, whether it's what you're paying, price that you're willing to pay, the synergy opportunities that you see. And Pat and Scott, you both mentioned that the opportunity, the pipeline is probably better than you anticipated that it was. Is there anything that would sort of incentivize or make you guys be willing. To be more opportunistic if the right. Particular product sets or capabilities broke your way?

Sure. Yeah. So from our standpoint, you know, it's important to realize that on the M and A front, we start with organizations that are already connected to our platform. We've been working with Masterworks for years. We've been working with Westfall Gold for years. As an example, Midwestern which was a. Very significant acquisition of our. We had been working there. So these are not strangers. Our pipeline is very strong and it's significant as we described. When you look at the prioritizations, you know, there's a couple different categories that they drop into. What are the capabilities around being able to serve the churches and those frontline organizations, around donor, around marketing, around content that you know, can add into the overall AI engine that we're doing. But we're also looking for things that are accretive. They're accretive from the standpoint of revenue and help us to build our revenue base or accretive in terms of EBITDA and either that moving us and accelerating us to EBITDA profitability. And they're creative from the standpoint of continuing to build the synergies within the glue platform, which strengthens the overall mode that we have in positively serving this ecosystem. But we're also Looking for technology as an important part of that. Pat, why don't you talk to that.

The XRI acquisition is a great example of that and acquisitions like that will definitely be part of the thesis going forward. Strengthening offers that we already have, deepening, you know, than in the marketplace and you know, the customer that we announced, American Bible Society does Bible translation and now we have maybe the leading linguistics capability in the world in the AI driven linguistics area. So those are the areas that continue to excite us in strengthening the platform. Clearly with 360, you know, we are expanding the number of services, the range of services that we're offering. So we want to strengthen our capabilities. So there. And as Scott said, accretive, we're incredibly focused on getting the profitability, as Paul will keep reminding us. And with that we want to keep a high discipline on both the multiples that we apply and being able to rapidly see accretion in the financials that we result in. So those factors and a rich pipeline of opportunities give us a lot of flexibility, exercise, discernment, but also opportunity.

Got it. That's really helpful. And then, you know, just to kind of follow up on I think Jason's question and maybe your answer, Scott, as we go into 26 and we know that you're adding capabilities all the time here, how should we think about growth from, you know, upsell and conversion from the existing customer base versus how much growth might come from new customers? And just to be clear, I don't think it does. But does the 26 guidance include any major wins or major deals like we saw with he gets us in the prior year? Couple questions there. Number one, no, we're not assuming in our 2026 numbers any big specific campaigns or it's the run of the mill of what we do. Move360 more of that, Masterworks, more of that, Midwestern more of that, you know, our media network more of that. So there isn't anything in there except grinding it out good solid organic growth with what we've already got. And then you know, we had a little bit of M and A, you know, in that $180 million number. But you know, we already just booked 20 million of that. Right. So you know, that number might have been 40 million that we were thinking about moving forward on a go forward basis. You know, 20 million of that is already in the bank. So we feel, we feel really good about that. But no, we don't see any major, any major one timers that are coming through.

Obviously if something showed up, we would. Take Advantage of it. But that's not what's driving our numbers. And the question, Scott, just on new versus existing Upsell cross sell. Yeah, sure. A balance between those for sure. We're going to be adding to the current. The current customers that we've got. But when you look at a lot of the things in particular 360, a lot of that is going to be new. If you look at Masterworks, I think a lot of that is going to be able to be able to help upsell. A perfect example of that upsell is the Westfall Gold being now to be available to a Masterworks customer. So I think we've got a good balance between both of those. Yeah, and as I was indicating earlier, you know, for us, you know, additional customers within a category where we have proven success and we're able to move, I'll call it horizontally within a category as opposed to vertically into a new category. That's a very efficient sale for us. And you get lots of synergies. Essentially a Bible translator works with another Bible translator. They want us to be working with both of them. So we see a lot of affinity there. So it's deepening in the category as well. It's a very efficient sale for us. And we're seeing that very much in the realization of that growing sales pipeline and the accelerating sales pipeline. And we're just beginning to open up entirely new categories of that, like the unit Bill Christian University segment, which we're starting to see some success. And so we do think that we have the opportunity to go deeper with existing accounts, bring more of the glue offering into those accounts, move horizontally within the segments that we're in, but then also begin to open up new categories as well. Yeah, we operate collaboration. Yeah, we operate in a very collaborative ecosystem, like I was saying. And you know, it's not one that we take lightly. I mean, we love the work that these folks are doing. I mean, what's better than being able to, you know, help more viable translation get to more places in the world? What's more exciting than being able to help these organizations that are out there on campuses, you know, helping young people but today are so lonely, so much in need of community. And so, you know, not only are they collaborative, but, you know, that sets us up to be able to serve them well so that they can help more people flourish and they can help these communities thrive. Thanks, guys. Looking forward to an exciting 26. Appreciate it.

Thank you. One moment for the next question. And the next question will be coming from the line of Eric Wald of Texas Capital securities. Your line is open.

Thank you and thanks guys for taking my questions. A couple questions. One kind of a follow up talk. About the Scott, you talked about the pipeline for next year acquisitions. Obviously you've gotten stronger since the ipo and you talked about next year being front half weighted and now you've done basically half of the $40 million already with Westfall. What would you need to see to maybe bring something from a 27 pipeline of acquisitions into 26 or accelerate that? And how much of that decision is really on your side? Meaning you don't want to put too much on your plate. You want to wait for something to make sure it's accretive versus one of your partners on the platform, maybe not seeing it's the right time for them to be inquired and kind of waiting a little bit longer before taking that step.

You know, number one, discipline and strategy, right? We're going to be very strategic in terms of the investments and the acquisitions that we make. We're going to be very strategic and be very disciplined. You know, we've been able to, you know, bring these partners in, been able to, you know, help them scale at this point. And we're going to continue to be, you know, hold that in check. And at the same time we're going to be, you know, available to opportunities. The right partners and the right acquisitions come along. You know, as long as they're being super creative, we feel like we've got the right synergy and we can integrate them in a good way. We'll move on that. But strategic and disciplined, all of this ultimately then helps develop more moat and more synergies amongst themselves. And it also is then driving us towards that intense focus on even that profitability in Q4. We're not going to let things get in the way of that. We're only going to be doing things that are going to be supportive of that. But it's got a fit from the strategic standpoint and we've got to be disciplined. Got it.

And then kind of following up on. That, as you think about an acquisition. Taking place and a company moving from an existing partner NCP on your platform to an acquired company within Glue Capital Partners, I guess. How long has it typically taken?

Obviously you've done a number of acquisitions the past couple of years. How long does it typically take from that target to move from kind of the current revenue run rate actually seeing some synergies, revenue synergies, kind of a boost to organic growth occur. For example, the $20 million you noted for Westfall in 26, how different is that from their current revenue run rate in terms of kind of expecting kind of meaningful organic growth on top of that, to get to that $20 million? You know, we have a disciplined process of presenting business case and those business cases with synergies, both on the revenue and on the cost side. We're conservative in terms of how we build our business cases and what kind of revenue acceleration and cost acceleration we expect. We do not want to get ahead of ourselves on that, so we plan on that being very conservative and then we aggressively, aggressively get after it. So in that 20 million, there isn't a lot of synergy built in. We believe that there is a line of opportunity for synergy, but we don't build that in. You know, if you look at the organizations that we've gotten involved with, we've had on overall basis, when you look at them, cumulatively, we've had very nice growth. And, you know, in order to get to our number this year of 180 million, in addition to the 40 million of acquisitions that we've talked about, you guys have got a lot of them in your numbers. There is a lot of organic growth in that, and that organic growth is coming both from the Quorum Blue platform offerings as well as helping to organically grow past acquisitions.

Helpful. Thank you.

Thank you. And the last question for the day will be coming from the line of Ryan Myers of Lake Street Capital Markets. Your line is open.

Hey, guys, congrats on your first quarter. As a public company and thanks for. Taking my questions first. One for me, I don't believe you. Called this out in the prepared remarks. But what was the mix of recurring. Revenue during the quarter?

Hey, Ryan, Big Doc, good to talk with you. We don't break that out specifically within. It really lines up with the revenue categories. We break out in the queue between subscription marketplace advertising and platform solutions, but we don't have that detail for you right now.

Okay. And then just kind of as a follow up on that, you know, if. We think about the 2026 Revenue Guide, I know you guys don't break it. Out by segment, but you know, directionally. How should we be thinking about the mix across those four areas being subscription marketplace advertising and platform solutions, just so. We can get a good idea of. What to expect for 26.

Yeah, I think that what you're going to see is, as we're continuing on, MA as well, growing what we've got right now, you know, Gloo360, which is a big grower, of ours and you know in that subscription area some of the stuff that we brought in let's say like with Westfall Gold it's going to be a little bit more on the on the platform solutions side. So I think that you'll be able to see a continued trend in terms of what we've seen. You saw that platform grew faster than platform solutions as a percentage in this last quarter and I think that that is what we would expect to continue to see as we go through go through the year where the platform grows faster than the platform subscription. But a little bit of that is ultimately dependent on MA and where we ultimately go with that and how that fits in the mix. Our organic growth from blue core will definitely gear toward platform and platform and subscriptions. Got it.

Congrats again on the quarter. Thanks for taking my questions.

Thank you. And this does conclude today's conference call. Thank you all for participating. You may now disconnect. Thank you.