Gloo Holdings, Inc.

Good day, and thank you for standing by. Welcome to the GLUE fiscal third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during 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 answer 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 Glue's performance for the third quarter, ended October 31st, 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&A session. Before we begin, please be reminded that this call will contain forward-looking statements. which are based on Blue's current expectations, but which are subject to risks and uncertainties relating to future events and or the future financial performance of Blue. 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 18th, 2025, and our subsequent quarterly report on Form 10Q that we expect to file later this week. Both will be available on Glu's Investor Relations website at investors.glu.com and the SEC's website. In addition, during 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 I'll 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. 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 Glue, our mission, the value we deliver, and our strategy for long-term growth. Glue 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, Glue serves both sides of this ecosystem. The Glue platform includes technology infrastructures, advertising tech, marketing services, and consulting solutions. Glue 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 Glue Capital Partners. Additionally, values-aligned AI capabilities are embedded across the Glue 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's 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 Glue as 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 expanding 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, 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 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 Glue360 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 31st, 2026. Now I'd like to turn to our AI strategy. Glue 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 Glue AI and Glue 360, a few of our subscription-based enterprise offerings. As we advance these capabilities, we're also building and equipping a broader community of developers to innovate on top of the Glue platform. The developer response has been strong. This year, Glue 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 Blue 360 and Masterworks. Glue 360 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 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.

Hi, Scott. It's good to be with you for our first starting call at the bubble company. Building on the strategic context Scott just shared, I'll walk you through our financial performance for the quarter. This was the solid first quarter of the public campaign, and our results reflect a 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 offline growth. Revenue per order was $32.6 million, an increase of 432% compared to the same period last year, and 101% of special growth compared to Q2. Year-over-year results were driven by a solid organic growth across the portfolio, as well as acquisitions of several capital partnerships, most notably MasterWords and New Western. Our platform revenue includes advertising, marketplace, and subscription offerings. Final revenue totaled $19.8 million, an increase of $13.7 million from Q3 of last year, and a 127% sequential growth. Much of this growth was driven by advertising revenue from afterwards, as new clients signed a Q2 fully ramped into Q3. This, in fact, was drawn by a market execution reference earlier. During this order, we also exposed the acquisition of Igniter, Going forward, IgniteAid subscription media products will primarily contribute to platform revenue and align well with the broader platform strategy . Our platform solution revenue includes technology, consulting, and marketing services, primarily delivered by capital partners . Our platform solution revenue was $12.7 million. Up 71% sequentially, supported by a strong performance from both MasterWorks and Midwestern. MasterWorks experienced a shift in timing, but some revenue is simply associated with a fourth quarter taking place in the third quarter. Midwestern continues to be a strong demand for development services, and its expanded sales capacity means that interest. As a reminder, MasterWorks provides advertising offerings, reported in its final resume. and marketing consulting services reported in platform solutions revenue. My monitoring provider, Alex Consulting, also reported in platform solutions. Follow-up revenue was 76%, an improvement of 81% over the prior year period. The improvement was due to increases in subscription revenue and platform solution revenue, which created higher margins. Part of the outcome was a shift in revenue timing and afterwards. by typing the ordered margin mix. To keep a clear visibility, the cost of revenue declining was about 50% over time. The adjusted EBITDA grew sequentially at negative $19.2 million, a $500,000 improvement to this year. This improvement reflects an incremental gain across nearly all of our Apple partners. As a reminder, our adjusted EBITDA calculation includes expenses associated with acquisitions and other companies we consider one-time in nature. As of November 31st, 2025, we had $15.1 million cash to cash supplements. Our November IPO had a profit of $72.3 million after underwriting 50 on 10 expenses, significantly strengthening our balance sheet and converting the significant majority of our debt to equity. I'd like to now turn to our Q4 2025 outlook. We expect revenue to be between $28 million and $30 million. This graph represents more than tripling revenue growth year-over-year. Our point of order guide is to assume continuous drawing of land across the platform, part of the offset by the shift in that first dynamic I mentioned earlier, and the normal slower December and January seasonality in the ecosystem. For Q4, adjusted EBITDA was decided to be between $19.5 million, negative $19.5 million, and negative $18.5 million, requiring continued cost discipline. West Hall, which was expected to close in early 20.6, is an adjusted EBITDA positive business and will play a positive role in our fast-growing business. As a business, an EBITDA of $20 million in revenue, we expect a modest revenue contribution in Q4, with minimal EBITDA size. As Scott noted, Waterfall is a strategic vet for our platform, given the critical importance of government assistance to our faith and commercial ecosystem. For Q4, we identified the weighted average share count of approximately 66 million shares. Normal items are probably approximately 81 million shares in Q1, following the IPO, debt conversion, and recent MIA agreements. Importantly, $143.1 million of debt is converted into equity, which allows us to provide about $36.7 million of debt in our mouthpiece. $17.0 million of this is from owner financing from several acquisitions. $12.9 million is senior secured notes that did not convert to RGO, and the remainder is from one and from other notes payable. This limiting reduction will meaningfully reduce interest expense moving forward. As part of the successful diagram version related to the IPO, we incurred a number of meaningful, non-reviewed, direct, and non-cash expenses of only $11.29 million that do not continue after the IPO. These charges are deducted out of our non-cash net loss attributable to members of $0.675 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-GAAP 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 through PCI positions, and managing costs responsibly. With significant foundational adjustments already made, we believe we can now leverage our costs more effectively to grow the top line and improve profitability. We're experiencing exciting financial turning points for the company and are issuing early guidance for 2026 to provide investors with a roadmap for our growth. We've cut a nearly double revenue in 2026 to over $180 million. We're experiencing strong organic growth across the SWIFT platform, including Blue360 and other offerings. We're also assuming that $40 million of the $180 million will come from incremental acquisitions Our acquisition and workflow contributes to $520 million of that $49 million. We have a rollback and actual M&A client and expect M&A to be about halfway through next year. Additionally, we are firmly committed to achieving positive adaptability without profitability in Q4-25-6 and expect a meaningful declassified improvement and adaptability without it again in Q1-25-6. a top-tiering action combined with revenue growth began to flow through at that point. With that, I'm going to call it a day.

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've spent more than a decade laying the groundwork for Blue, investing heavily in our technology, our partnerships, and our mission. Q3 marked a key and question 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 the brand, 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 operators for Q&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&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 our great quarter. You essentially hit my six-month out revenue target, so it makes life a little easier. I want to start with the more than 20 customers that should ramp to be, you know, over a million in annual contract value each month. Can you walk through, you know, what they're buying? Are they, you know, multi-product, multi-service buys? Are they large-scale within one of the offerings? Sort of where those buckets are coming in, because that's obviously a good driver, an important driver of your organic growth.

Sure. Thank you, Rich. This is Scott back. You know, it comes from a couple different areas. Obviously, our Blue 360 operating is, you know, a very significant operating 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 builder standpoint, helping those organizations be able to reach more people, be able to get them following the different organizations that they serve. with greater donor engagement. We talked about earlier a good example of that being ADS, American Bible Society, which we're working with on both the Blue 360 side as well as on the MasterWorks side. So those things are significant contributions as well. In addition, I guess one other area would be what we do 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 mean, keep going, and, you know, the pipeline is really strong as we look at 2026, but, you know, we're super excited, you know, to be able to be delivering at scale important technologies to the space and human portion ecosystem, you know, with many customers in excess of a million dollars per year.

And maybe drilling underneath that a little bit, Can you talk about what the factors are that date 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 a sort of an idea of our backdrop to how quickly those impact organic growth.

Yeah, this is just kind of elsewhere and I'll give a little bit of follow-up on that. And what we've seen is an acceleration We're definitely seeing that some of these fields now, that we have solid proof points across different categories. You know, for instance, in the Bible translation category, the ADS example that we gave, you know, we had earlier in the year. So, that's part of acceleration of the Bible translators. We have multiple in the campus for state area. So, we see 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 three 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 have seen this quarter would be indicative of that accelerating pipeline.

Got it. And I'll just ask one more if I don't want to hog the call too much, but You know, with the pace of growth here, doubling revenues sequentially, obviously acquisitions have been important to that. And the pace has been fast enough that 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, you know, a year ago versus, you know, 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 drive to profitability next year and accelerating quarter-by-quarter improvements in EBITDA next year, the synergy realizations across the acquisitions that we've done also are important. has become an increasingly important role in accomplishing that e-bidder. Now that we have a solid platform in place, offering like 360 in place, we're seeing acceleration in those benefits. But it is an area of 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 Because we've already initiated quite a number of those synergy realization and cost improvements. So, we think it would be quite good for those that are accelerating to see those showing up somewhat next quarter, but in an accelerated basis in Q1 and beyond. I would add that the synergy is both on the cost side as well as we were pointing out on the revenue side. So, the revenue side synergies are super important. You know, we're so excited about , but that's going out with Midwestern, and what's happening there with Masterworks. All of those basically create channel and partnership and synergy on the revenue side, which is also super important to accomplish in that region.

Great. Thanks for your help. Thank you. One moment for the next question. And our next question will be coming from the line of Young 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 360 business in terms of both sales headcount growth and overall service delivery capability.

Sure. Hey, thanks for the question. How would you give us your perspective on the investment in Blue360 and what was all of that? Yeah. And, you know, four, 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 assignments about hiring. 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 will right-side them, up-skilling, and being able to answer our focus of resources for delivery. And then third is, we have very targeted capabilities in areas like services, but maybe most importantly, augmenting for AI and agenda capabilities 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 wide market for 360. But I want to emphasize that it's not just 360 programs. we have the opportunity to become their marketing partner with Masterworks. And in many cases, the teams that we have at Service and Midwestern become the project team, but also are being furthered 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. Given that, you know, the sales cycle related to Glue 360 is probably fairly long, given the size of those deals, should we expect that typical seasonal, you know, 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. You know, we are seeing, you know, as what you described, we're not seeing that. Once you have proof points in a category, we're seeing the category sales improve quickly, and we're seeing the ability then for those accounts to come on board on an accelerated basis. So I think we're going to see nice quarter-by-quarter improvements in our revenue and in our EBIT contribution as a result of those accounts. Now, I'd also say that it just emphasizes the value that Blue and our ability to now have cases like the ADS example and American Bible Society example that we gave on the call is evidence that we have capabilities that are desperately needed, desired, and accelerating this ecosystem.

Okay. And then one last question for me, Pat. In regard to the overall AI efforts, obviously, there's a lot of talk about 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?

You know, overall, our AI capability, I don't think we're at the scale yet, you know, 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 across 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. We have a leading edge capability. We have values aligned with 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. And so far, we don't see any constraints on our ability 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 Helton. 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 pipeline. 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 that we serve, right? One side are the churches and the frontline organizations. That's not what we're going to see millions of our customers. That's not what we're being able to scale. paying customers over there, you know, at scale, super excited and happy with that growth rate. But that is 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 Westfall Goal 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 organizations, the different file translation organizations, you know, on and on and on. So when you look at that, as well as combining that with the customer base that Midwestern has got, you know, the current customer base that 360 is working against, you know, we see a very, very significant customer base opportunity in million plus. I would just add a few other quick points. One is you mentioned the TAN available for those network capability providers in the 60. very large market with tens of thousands of rands in that segment. So we see that there's just many customers for us to reach for. I'd also say that the million-dollar customers, we see increased penetration inside 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 an 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 Masterworks versus what you're bringing in with Westfall? And then maybe like if you look at the last several months since you've had Masterworks, it seems like a very logical cross out. And I'm just curious if there's any pushback and if kind of Westfall can help fill in some of those gaps in terms of where there might be pushback.

Yeah, for sure. These are incredibly synergistic. You know, as we said, you know, the donor is the heart of this ecosystem, right? The donors, whether they're small donors into a church or the bigger donors into the different, you know, major ministries that are out there, this is the heart. And this is 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, creating incredible experiences, the best in class, to be able to nurture major donors into multi-hundred-thousand, multi-million-dollar types of commitments. They do this better than anybody in the ecosystem. However, after those events that they do, how do you keep nurturing those organizations between those major events? That's when a masterwork 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, you know, really core to what we're thinking about in terms of going forward. The why is with it and, you know, very why is one level. I mean, the folks at Masterworks 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 an even level with Masterworks.

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 Cuomas of the Benchmark Company. Please go ahead.

Great. Thanks. Obviously, I will echo congratulations to you guys for coming out strong out of the blocks. And Scott and 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 informing the M&A for you guys, whether it's what you're paying, the price that you're willing to pay, the synergy opportunities that you see. And Pat and Scott, you both mentioned that, you know, 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&A front, we start with organizations that are already connected to our platform. We've been working with for years. We've been working with for years as an example. acquisition work we have been working for. So, these are not strangers. Our pipeline is very strong and it's significant as we described. When you look at the prioritization, 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, you know, of revenue and help us to build our revenue base. They're accretive in terms of either dot and either dot moving us or accelerating us, either dot profitability. And they're creative from the standpoint of continuing to build the synergies within the group platform, which drives the overall mode that we have in powerfully serving this ecosystem. But we're also looking for technology as an important part of that. Pat, why don't you talk about that? You know, the XRI acquisition is a great example. you know, then in the marketplace. And, you know, the customer that we announced, American Bible Society, knows Bible translation. And now we have, you know, maybe the leading linguistics capability in the world. We're actually live in the AI-driven linguistics area. So those are the areas that continue to excite us in strengthening the platform through 360. You know, we're expanding the number of services, the ranges, 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 rigid pipeline of opportunities give us a lot of flexibility, both in 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 what he gets us in the prior year?

There's a couple of questions there. Number one, you know, in our 2026 numbers, any big specific campaigns or is this the run of the mill of what we do, move 360, 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 have a little bit of M&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. $20 million of that is already in the bank. So we feel really good about that. But, no, we don't see 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 customers that we've got. But when you look at, you know, a lot of the things, in particular, Z360, a lot of that is going to be new. If you look at MasterWord, I think a lot of that is going to be able to be able to sell upsell. A perfect example of that upsell is the Westfall Gold. being that it would 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, 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. Potentially, you know, a Bible translator works with another Bible translator, and 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, the accelerating sales pipeline. And we're just beginning to open up entirely new categories of that like we do today. with existing accounts, bring more of the glue offering into those accounts, move for our monsoons and segments that way, but then also begin to open up new categories as well. Yeah, we operate in a very collaborative system. And, you know, it's not one that we take lightly. I mean, there's a lot of the work that these folks are doing. I mean, what is better than being able to, you know, help more viable translation into more places in the world. You know, what's more exciting than being able to help these organizations that are out there on campuses. You know, all of the young people that 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 thank you guys for taking my questions. A couple questions. One, kind of a follow-up. Talking about the pipeline for next year, the pipeline of acquisitions obviously gotten stronger, you know, since the IPO. And you talked about next year. being front halfway 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 a creative versus one of your partners on the platform maybe not think it's the right time for them to be acquired 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 in terms of being 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 it in a good way, you know, we'll move on that. and discipline. You know, all of this ultimately then, you know, helps develop more moat and more synergies amongst themselves. And it also is then driving us toward that intense focus on even that profitability issue for it. 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 to 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 Blue Capital Partners, how long has it typically taken? 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 to kind of actually seeing some synergies, revenue synergies, kind of a boost to organic growth occur, right? 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 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 lot 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 an overall basis, when you look at it cumulatively, we've had very nice pros. And, you know, in order to get to our numbers 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 pros in that. And that organic growth is coming both from the forum, Zoom 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's for me. I don't believe you called this out in the Prepare the Marks, but what was the mix of recurring revenue during the quarter?

Hey, Ryan. Good to talk with you. We don't break that out specifically within it. It really lines up with the revenue categories we break down 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 2026?

Yeah, I think that what you're going to see is, as we're continuing on M&A, as well as what we've got right now, you know, Blue 360, which is a big grower of ours, is, you know, in that subscription area. You know, there's some of the stuff that we brought in, let's say, like with Web Quality Goals that's going to be a little bit more 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 the platform group after the 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 the year. where the platform grows faster than the platform subscription. But a little bit of that is ultimately going to depend on M&A and where we ultimately go with that and how that fits in the mix. Our organic growth from the core will definitely gear toward platform and platform and subscriptions.

Got it. Congrats, Jen, on the quarters. Thanks for taking my questions.

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