CI&T Inc

There is a distance every company is trying to close right now. It shows up on no roadmap and no balance sheet. But it's there, sitting between the AI model and the result. Most companies see a gap. We see the space between. An open sea. Something you don't just cross, you navigate it. You build in it. And like any sea, it can be charted. Charting it takes more than a bold move. It takes the right conditions, working as one system. That's CI&T AI deployment. It is how the space between gets crossed and crossing it again and again is how organizations navigate change.

Good afternoon and thank you for joining us for CI&T second quarter of 2026 earnings call. I am Eduardo Galvao, Director of Investor Relations. Joining me today to discuss our quarterly results are Cesar Gon, 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 underlining 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 Gon.

Thank you, Eduardo, and good afternoon, everyone. Global AI spend is projected to hit $2.6 trillion this year, up 47% year-over-year. And yet, according to MIT, roughly 95% of AI initiatives still show no measurable business return. That gap is where I want to begin today. We published two papers this quarter that get a why. The first argues that most companies are optimizing the wrong variable, chasing incremental task efficiency instead of asking where AI can return 10 times, rather than 10%. The second paper calls it organizational hallucination. A confident belief that a company is transforming when it's actually just experimenting. In both cases, the constraint was never the technology. It's the organization's capacity to absorb it. That gap is exactly where CI&T plays. And it's why we build our business around two things, AI deployment, installing real capability inside a client's core, and AI monetization, capturing together with our clients the productivity gains and business impact that AI deployment creates through value-based commercial models rather than headcounts. Everything you will hear from us today, the robust and sustaining revenue growth and the increase in our sales investments to foster momentum, giving the AI opportunity, is the same thesis playing out inside our own business. This quarter's numbers reflect that opportunity and the deliberate choices we've been making to capture it. We delivered record revenue of $142.8 million, up 21.9% organically and above our guidance, broad-based across geographies, interest verticals, and client cohorts. Growth was increasingly fueled by new clients' wins and by initial engagements scaling into large partnerships. Our new commercial models are also letting us capture a greater share of the value we create. That shows up directly in Adjust Cross Margin, which expanded from 30.6% in the first quarter to 32.4% as this model scaled. In the first six months of 2026, 30% of new engagements were under new value-based pricing models. and we project this gross margin expansion to accelerate in the coming quarters. Our adjusted EBITDA margin in the quarter was 13.3%, reflecting our deliberate choice. 2026 is a transition year, one where we invest in our commercial engine to turn this AI deployment opportunity into durable, profitable growth in 2027 and beyond. As a result, our commercial pipeline is now 40% larger than in the first half of 2025. In short, our top line shows the demand is solid. Our gross margin shows monetization is working, and this year's commercial investment is what let us compound that advantage going forward. And here we go again. The second quarter of 2026 marks our seventh consecutive quarter of double-digit organic growth. At a time when parts of our industry are consolidating through acquisitions, buying growth rather than building it, We've extended this streak without a single M&A deal, prioritizing our capital allocation toward our own transformation and our sales effort and growth engines. This embodies one of our cultural tenets. We play the infinite game. We are not optimizing for a single quarter. We are building a company designed to keep compounding for decades. This consistency reflects a structural shift in client demand and CIMT's ability to capture it. The case studies that follow show how this AI deployment momentum is translating into tangible business outcomes.