Globant Records $152.8M Q4 Free Cash Flow, Beats Revenue Guidance, Bookings +32%
Globant repurchased $50M of shares in Q4 and generated record free cash flow of $152.8M for the quarter and $211.7M for 2025. Q4 revenue of $612.5M beat guidance despite a 4.7% decline, bookings jumped 32.4%, and AI Pods exit-rate ARR reached $20.6M (pipeline: $283M).
1. Q4 Financial Performance
Globant generated $612.5M in Q4 revenue, surpassing a $605M guidance figure despite a 4.7% year-over-year decline. Adjusted operating margin held at 15.5%, adjusted diluted EPS was $1.54, and fourth-quarter bookings jumped 32.4% with a $3.4B pipeline.
2. Share Repurchase and Liquidity
The company repurchased $50M of shares under its October 2025 program and ended the year with $250.3M in cash and short-term investments, up $83.3M sequentially. Net debt stood at $116.4M, reflecting improved working capital management, tighter days sales outstanding, and CapEx efficiencies.
3. AI Pods Development
AI Pods exited at a $20.6M ARR run rate after nine months, driven by a subscription model tied to token consumption, and the AI Pods pipeline grew 34% quarter-over-quarter to $283M. Gross margins for AI Pods ranged from 45% to 60%, above the company’s blended 38% margin.
4. 2026 Outlook
For fiscal 2026, Globant targets revenue of $2.46B to $2.51B, implying up to 2.2% growth including a 100-basis-point FX tailwind, and adjusted operating margin of 14% to 15%. Management expects AI Pods exit-rate ARR to reach between $60M and $100M by year-end.