CI&T Inc

AI doesn't fix your SDLC. AI has reduced the cost of generating code to near zero, but the bottleneck didn't disappear. It moved from writing code to deciding whether code is ready to move. We introduced agentic SDLC by drawing on our deep knowledge of software engineering and operational efficiency. This framework represents a fundamental shift in software delivery, prioritizing decision-making over task completion to maintain momentum. Decisions are propagated through an orchestration layer that connects humans, agents, tools, and shared context. The transformation unfolds across three stages of maturity. Augmentation, where AI accelerates individual tasks. Coordination, where agents connect across stages. And autonomy, where the lifecycle itself is redesigned. Reported gains of two, five, and up to 20 times, not from faster tasks, but from a system that stops waiting. organizations that lead in this period will not be those that generate the most code but those that orchestrate the system best with trust and decision criteria explore the full paper online

Good afternoon, and thank you for joining us for CIMT first quarter of 2026 Earnings Call. I am Eduardo Galvão, Director of Investor Relations. Joining me today to discuss our results and strategic milestones are Cesar Ghosn, our founder and CEO, Bruno Guicardi, founder and president for North America and Europe, and Stanley Rodrigues, our CFO. Before we begin, I would like to remind you that our remarks today will include forward-looking statements. These statements, including our business outlook, are based on the management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. We caution you not to place undue reliance on these forward-looking statements, as they are valid only as of the date when made. Additionally, we'll discuss certain non-GAAP financial measures. We believe these provide a more comprehensive view of our underlying operational performance, For a full reconciliation of these measures to the most directly comparable gap metrics, please refer to the tables in our earnings release. Today's session is being recorded and all participants are currently in a listen-only mode. Following our presentation, we'll host a Q&A session. To participate, please submit your question via email to investors at cint.com. The full presentation deck is available on our investor relations website and a replay of this call will be posted shortly after we conclude it. With that, I'm pleased to hand the floor over to our founder and CEO, Cesar Ghosn.

Thank you, Eduardo, and good day, everyone. A year ago, I said the future of business is technology, and the future of technology is business. Six consecutive quarters of double-digit organic growth tell me that Beth was right. What exchanges the kind of partner companies are looking for? Not a traditional horizontal service firm, but what we are choosing to call tech-integrated business solutions partner. We continue to advance two distinct AI-driven growth vectors for CINT, AI deployment with expanded revenue through IP-based solutions and AI adoption engagements, and AI monetization, with expanding margins by evolving our pricing models to capture a greater share of the productivity gains and business value created by AI. 2025 was a very strong year for AI deployment, and this trend has only strengthened in 2026. At the same time, 2026 marks the year when our AI monetization efforts are becoming more tangible. In Q1 2026, 20% of new sales were already based on new pricing models. We expect these models to contribute to gross margin expansion over the coming quarters as adoption continues to accelerate. By combining strategy, AI native execution with agentic SDLC, and IP-based solutions, we are positioning CI&T to help lead the next decade of business reinvention. Turning to our financial performance, the first quarter of 2026 was a period of significant scale and sustained momentum. We achieved record revenue of 136.6 million, representing 23.2 year-over-year organic growth. This auto performance is notably broad-based, with robust demand across all core geographies and a diversified footprint spanning our key industry verticals. Profitability remains the core strength of our model, with Adjust EBITDA reaching $20.8 million, representing a 15.2% margin. On an FX-neutral basis, this would be equivalent to an Adjust EBITDA margin of 17.4%. This performance reflects our ability to continue investing in our AI growth vectors while maintaining a disciplined operational profile. Furthermore, our business continues to demonstrate high-quality cash conversion, with $13.5 million in cash operating cash flow this quarter, equivalent to 65% of adjusted EBITDA. The first quarter of 2026 marked our 60th consecutive quarter of double-digit organic growth. And this growth remains fully organic. This consistency is not accidental. It reflects a structural shift in client demand and CIT's ability to capture it. We are now seeing a clear acceleration of AI deployment. Clients are moving beyond experimentation and beginning to rebuild their technology foundations, operating models and business processes around AI. They need partners capable of connecting strategy, execution and measurable outcomes in the complex reality of large enterprise environments. This is where CINT is increasingly differentiated. Our proprietary IP, AI native delivery capabilities, and CINT flow are helping us convert this demand into large, higher quality engagements, both with new clients and within existing accounts. The case studies that follow show how this AI deployment momentum is translating into tangible business outcomes.