Technology
Globant Reports 2026 Second Quarter Financial Results
Published
3 months agoon
By
LUXEMBOURG, Aug. 13, 2026 /PRNewswire/ — Globant (NYSE: GLOB) today announced results for the three and six months ended June 30, 2026.
“Glob.AI ARR reached $52.8 million in the second quarter, up 61% quarter-over-quarter, and we now expect no less than $110 million exiting 2026. Alongside that, Globant’s revenue for Q2 reached $614.4 million and free cash flow reached $12.6 million in the quarter, compared to negative $2.9 million a year ago, capping our strongest first half of cash generation on record. Last week we opened Glob.AI to the entire market, a single platform where any enterprise can deploy AI Pods and pay on the output or consumption they receive rather than on the hours behind it. Supported by partnerships with Anthropic, Vercel and OpenAI, among others, we are changing how our services are delivered and how they are priced,” explained Martín Migoya, Globant’s CEO and co-founder.
“In the second quarter of 2026, Globant demonstrated resilient execution, generating $614.4 million in revenue—within our guided range—and delivering record free cash flow generation for the first half of the year. Expansion across our top accounts remained strong, reflecting a 6.9% year-over-year increase in our top 50 clients alongside accelerating market adoption of our higher-margin AI Pods and Glob.AI platform. To navigate broader market volatility and to align with our business model transformation needs, we proactively optimized our structure during the quarter, all while we continued executing on our share repurchase program,” explained Juan Urthiague, Globant’s CFO.
Please see highlights below. Note that reconciliations between IFRS and Non-IFRS financial measures are disclosed at the end of this press release.
Second Quarter 2026 Financial Highlights
Revenues were $614.4 million, remaining generally unchanged from the prior year quarter.IFRS Gross Profit Margin was 33.9% compared to 35.4% in the second quarter of 2025.Non-IFRS Adjusted Gross Profit Margin was 36.5% compared to 38.1% in the second quarter of 2025.IFRS Profit from Operations Margin was 3.2% compared to 1.0% in the second quarter of 2025.Non-IFRS Adjusted Profit from Operations Margin was 13.2% compared to 15.0% in the second quarter of 2025.IFRS Diluted EPS was $0.04 compared to $(0.05) in the second quarter of 2025.Non-IFRS Adjusted Diluted EPS was $1.40 compared to $1.53 in the second quarter of 2025.
Other Financial Highlights as of and for the quarter ended June 30, 2026
Cash and cash equivalents and Short-term investments were $168.8 million as of June 30, 2026.The Company invested $25.0 million during the second quarter, completing its original share repurchase program. As of June 30, 2026, the Company had $125.0 million available for repurchase under its new share repurchase authorization.Globant completed the second quarter of 2026 with 27,411 Globers, 25,632 of whom were technology, design and innovation professionals.The geographic revenue breakdown for the second quarter of 2026 was as follows: 52.8% from North America (top country: US), 20.8% from Latin America (top country: Argentina), 20.9% from Europe (top country: Spain) and 5.5% from New Markets[1] (top country: Saudi Arabia).Globant’s top customer, top five customers and top ten customers for the second quarter of 2026 represented 8.9%, 21.6% and 30.6% of revenues, respectively.During the twelve months ended June 30, 2026, Globant served a total of 904 customers (with revenues over $100,000 in the last twelve months), with 331 accounts generating more than $1 million of annual revenues, compared to 339 for the same period one year ago.In terms of currencies, 63.0% of Globant’s revenues for the second quarter of 2026 were denominated in US dollars.
2026 Third Quarter and Full Year Outlook
Based on current market conditions, Globant is providing the following estimates for the third quarter and the full year of 2026:
Third quarter 2026 Revenues are estimated to be in the range of $607 million to $615 million, representing a 1.6% to 0.3% year-over-year decline. This outlook includes a positive FX impact of 25 basis points.Third quarter 2026 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 13.5% to 14.5%.Third quarter 2026 Non-IFRS Adjusted Diluted EPS is estimated to be in the range of $1.43 to $1.53 (assuming an average of 43.2 million diluted shares outstanding during the third quarter).Fiscal year 2026 Revenues are estimated to be in the range of $2,428 million to $2,462 million, implying a 1.1% year-over-year decline to 0.3% year-over-year revenue growth. This expected growth includes a positive FX impact of 70 basis points.Fiscal year 2026 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 13.5% to 14.5%.Fiscal year 2026 Non-IFRS Adjusted Diluted EPS is estimated to be in the range of $5.75 to $6.15 (assuming an average of 43.6 million diluted shares outstanding during 2026).
Shareholder Letter, Conference Call and Webcast
A shareholder letter will be available in the Investor Relations section of Globant’s website.
Martin Migoya, Chief Executive Officer and co-founder, Diego Tártara, Chief Technology Officer, Juan Urthiague, Chief Financial Officer, and Fernando Matzkin, Chief Revenue Officer, will discuss the results in a video conference call and a live Q&A session beginning today at 4:30 pm ET.
Video conference call access information is:
https://more.globant.com/F2Q26EarningsCall
Webcast http://investors.globant.com/
[1] Represents Asia, Oceania and the Middle East.
About Globant (NYSE:GLOB)
At Globant, we help organizations thrive in a digital and AI-powered future. Our industry-focused solutions combine technology and creativity to accelerate enterprise transformation and design experiences customers demand. Through digital reinvention, our subscription-based AI Pods, and Globant Enterprise AI platform, we turn challenges into measurable business results and promised savings into real impact.
We have more than 27,400 employees and we are present in more than 30 countries across 5 continents working for companies like Google, Electronic Arts and Santander, among others.
We were named a Worldwide Leader in CX Improvement by IDC MarketScape report. We were also featured as a business case study at Harvard, MIT and Stanford. We are a member of the Cybersecurity Tech Accord.
For more information, please visit www.globant.com
Non-IFRS Financial Measures
While the financial figures included in this press release have been computed in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IASB”), this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, “Interim Financial Reporting” or a financial statement as defined by International Accounting Standards 1 “Presentation of Financial Statements”. The financial information in this press release has not been audited.
Globant provides non-IFRS financial measures in addition to reported IFRS results prepared in accordance with IFRS Accounting Standards. Management believes these measures help illustrate underlying trends in the company’s business and uses the non-IFRS financial measures to establish budgets and operational goals, communicated internally and externally, for managing the company’s business and evaluating its performance. The company anticipates that it will continue to report both IFRS and certain non-IFRS financial measures in its financial results, including non-IFRS measures that exclude share-based compensation expense, depreciation and amortization, acquisition-related charges, business optimization costs, and the related effect on income taxes of the pre-tax adjustments. Because the company’s non-IFRS financial measures are not calculated according to IFRS, these measures are not comparable to IFRS and may not necessarily be comparable to similarly described non-IFRS measures reported by other companies within the company’s industry. Consequently, Globant’s non-IFRS financial measures should not be evaluated in isolation or supplant comparable IFRS measures, but, rather, should be considered together with its condensed interim consolidated statements of financial position as of June 30, 2026 and December 31, 2025 and its condensed interim consolidated statements of comprehensive income for the three and six months ended June 30, 2026 and 2025, prepared in accordance with International Accounting Standard (“IAS”) 34, “Interim Financial Reporting”.
Globant is not providing a quantitative reconciliation of forward-looking Non-IFRS Adjusted Profit from Operations Margin or Non-IFRS Adjusted Diluted EPS to the most directly comparable IFRS measure because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort. These items include, but are not limited to, share-based compensation expense, acquisition-related charges, business optimization costs, and the tax effect of non-IFRS adjustments. These items are uncertain, depend on various factors, and could have a material impact on IFRS reported results for the guidance period.
Forward Looking Statements
In addition to historical information, this release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” or the negative of these terms or other similar expressions. These statements include, but are not limited to, statements regarding our future financial and operating performance, including our outlook and guidance, and our strategies, priorities and business plans. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could impact our actual results include: our ability to maintain current resource utilization rates and productivity levels; our ability to manage attrition and attract and retain highly-skilled IT professionals; our ability to accurately price our client contracts; our ability to achieve our anticipated growth; our ability to effectively manage our rapid growth; our ability to retain our senior management team and other key employees; our ability to continue to innovate and remain at the forefront of emerging technologies and related market trends; our ability to retain our business relationships and client contracts; our ability to manage the impact of global adverse economic conditions; our ability to manage uncertainty concerning the instability in the current economic, political and social environment in Latin America; and other factors discussed under the heading “Risk Factors” in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission and any other risk factors we include in subsequent reports on Form 6-K.
Additionally, while we have concluded, for the three- and six-month periods ended June 30, 2026 presented in the condensed interim consolidated statements of comprehensive income included in this press release, that our goodwill and intangible assets are not impaired, changes in economic or operating conditions impacting our estimates and assumptions could, as noted in our most recent Form 20-F, result in the impairment of our goodwill and intangible assets in future periods.
Because of these uncertainties, you should not make any investment decisions based on our estimates and forward-looking statements. Except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise.
Globant S.A.
Condensed Interim Consolidated Statements of Comprehensive Income
(In thousands of U.S. dollars, except per share amounts, unaudited)
Six months ended
Three Months Ended
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Revenues
1,221,502
1,225,265
614,417
614,180
Cost of revenues
(803,785)
(794,394)
(406,181)
(396,539)
Gross profit
417,717
430,871
208,236
217,641
Selling, general and administrative expenses
(312,749)
(321,238)
(154,343)
(159,543)
Net impairment losses on financial assets
(2,486)
(6,339)
(1,692)
(4,660)
Business Optimization Costs
(32,346)
(47,580)
(32,346)
(47,580)
Other operating income and expenses, net
1,391
—
—
—
Profit from operations
71,527
55,714
19,855
5,858
Finance income
3,161
1,923
1,339
978
Finance expense
(18,640)
(20,599)
(9,208)
(10,972)
Other financial results, net
1,461
861
(299)
(239)
Financial results, net
(14,018)
(17,815)
(8,168)
(10,233)
Share of results of investment in associates
(51)
6
14
23
Other income and expenses, net
(2,436)
(3,385)
(7,353)
(114)
Profit before income tax
55,022
34,520
4,348
(4,466)
Income tax
(12,645)
(7,749)
(741)
742
Net income for the period
42,377
26,771
3,607
(3,724)
Other comprehensive income (loss) net of income tax effects
Items that may be reclassified subsequently to profit and loss:
– Exchange differences on translating foreign operations
(14,539)
80,377
(8,896)
51,288
– Remeasurement on defined benefit plan
553
—
357
—
– Net change in fair value on financial assets measured at FVOCI
(182)
(5,798)
(182)
(5,798)
– Gains and losses on cash flow hedges
2,888
13,158
6,504
3,000
Total comprehensive income for the period
31,097
114,508
1,390
44,766
Net income attributable to:
Owners of the Company
38,746
28,252
1,767
(2,383)
Non-controlling interest
3,631
(1,481)
1,840
(1,341)
Net income for the period
42,377
26,771
3,607
(3,724)
Total comprehensive income for the period attributable to:
Owners of the Company
29,346
109,574
299
41,850
Non-controlling interest
1,751
4,934
1,091
2,916
Total comprehensive income for the period
31,097
114,508
1,390
44,766
Earnings per share
Basic
0.90
0.64
0.04
-0.05
Diluted
0.89
0.62
0.04
-0.05
Weighted average of outstanding shares (in thousands)
Basic
43,035
44,177
42,858
44,298
Diluted
43,405
45,424
43,228
44,298
Globant S.A.
Condensed Interim Consolidated Statements of Financial Position as of June 30, 2026 and December 31, 2025
(In thousands of U.S. dollars, unaudited)
June 30, 2026
December 31, 2025
ASSETS
Current assets
Cash and cash equivalents
163,766
243,742
Investments
5,049
6,594
Trade receivables
622,794
577,673
Other assets
32,816
35,117
Other receivables
78,564
84,405
Other financial assets
8,893
6,226
Total current assets
911,882
953,757
Non-current assets
Investments
2,578
2,489
Other assets
3,164
4,424
Other receivables
61,148
49,496
Deferred tax assets
99,049
91,065
Investment in associates
1,053
1,727
Other financial assets
30,990
29,930
Property and equipment
127,602
137,331
Intangible assets
312,126
345,951
Right-of-use assets
87,208
100,542
Goodwill
1,595,460
1,601,523
Total non-current assets
2,320,378
2,364,478
TOTAL ASSETS
3,232,260
3,318,235
LIABILITIES
Current liabilities
Trade payables
118,374
112,590
Payroll and social security taxes payable
196,530
203,395
Borrowings
19,364
19,666
Other financial liabilities
97,811
169,605
Lease liabilities
25,739
28,511
Tax liabilities
20,969
33,205
Income tax payable
14,121
10,730
Other liabilities
1,568
2,591
Total current liabilities
494,476
580,293
Non-current liabilities
Trade payables
1,312
3,684
Borrowings
402,591
347,040
Other financial liabilities
50,179
90,499
Lease liabilities
70,160
78,428
Deferred tax liabilities
26,469
30,906
Income tax payable
2,077
1,428
Payroll and social security taxes payable
2,144
2,358
Contingent liabilities
8,929
21,963
Total non-current liabilities
563,861
576,306
TOTAL LIABILITIES
1,058,337
1,156,599
Capital and reserves
Issued capital
52,112
52,604
Additional paid-in capital
1,159,072
1,167,979
Other reserves
(102,121)
(92,721)
Retained earnings
1,004,485
965,739
Total equity attributable to owners of the Company
2,113,548
2,093,601
Non-controlling interests
60,375
68,035
Total equity
2,173,923
2,161,636
TOTAL EQUITY AND LIABILITIES
3,232,260
3,318,235
Globant S.A.
Selected Cash Flow Data
(In thousands of U.S. dollars, unaudited)
Three Months Ended
June 30, 2026
June 30, 2025
Net Income for the period
3,607
(3,724)
Non-cash adjustments, taxes and others
60,976
57,883
Changes in working capital
(34,366)
(32,281)
Cash flows from operating activities
30,217
21,878
Capital expenditures
(17,584)
(24,735)
Cash flows from investing activities
(22,134)
(68,763)
Cash flows from financing activities
(39,213)
103,757
Net increase/decrease in cash & cash equivalents
(31,130)
56,872
Globant S.A.
Supplemental Non-IFRS Financial Information
(In thousands of U.S. dollars, unaudited)
Six Months Ended
Three Months Ended
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Reconciliation of adjusted gross profit
Gross profit
417,717
430,871
208,236
217,641
Depreciation and amortization expense
23,734
22,241
12,145
11,085
Share-based compensation expense – Equity settled
7,147
13,203
3,841
5,513
Adjusted gross profit
448,598
466,315
224,222
234,239
Adjusted gross profit margin
36.7 %
38.1 %
36.5 %
38.1 %
Reconciliation of selling, general and administrative expenses
Selling, general and administrative expenses
(312,749)
(321,238)
(154,343)
(159,543)
Depreciation and amortization expense
52,573
59,594
26,029
29,939
Share-based compensation expense – Equity settled
29,729
27,660
14,835
14,275
Acquisition-related charges (a)
3,495
12,206
(922)
5,639
Adjusted selling, general and administrative expenses
(226,952)
(221,778)
(114,401)
(109,690)
Adjusted selling, general and administrative expenses as % of revenues
(18.6) %
(18.1) %
(18.6) %
(17.9) %
Reconciliation of adjusted profit from operations
Profit from operations
71,527
55,714
19,855
5,858
Share-based compensation expense – Equity settled
36,876
40,863
18,676
19,788
Business optimization costs (b)
32,346
47,580
32,346
47,580
Acquisition-related charges (a)
25,534
38,477
9,982
18,872
Adjusted profit from operations
166,283
182,634
80,859
92,098
Adjusted profit from operations margin
13.6 %
14.9 %
13.2 %
15.0 %
Reconciliation of net income for the period
Net income for the period
38,746
28,252
1,767
(2,383)
Share-based compensation expense – Equity settled
37,234
40,378
19,047
19,359
Business optimization costs (b)
32,294
46,453
32,294
46,453
Acquisition-related charges (a)
42,249
54,266
23,906
26,309
Tax effect of non-IFRS adjustments
(25,012)
(31,811)
(16,665)
(20,035)
Adjusted net income
125,511
137,538
60,349
69,703
Adjusted net income margin
10.3 %
11.2 %
9.8 %
11.3 %
Calculation of adjusted diluted EPS
Adjusted net income
125,511
137,538
60,349
69,703
Diluted shares
43,405
45,424
43,228
45,545
Adjusted diluted EPS
2.89
3.03
1.40
1.53
Acquisition-related charges include, when applicable, amortization of purchased intangible assets, interest charges on acquisition-related indebtedness, external deal costs, acquisition-related retention bonuses, integration costs, changes in the fair value of contingent consideration liabilities, and other acquisition-related costs. We cannot provide acquisition-related charges on a forward-looking basis without unreasonable effort as such charges may fluctuate based on the timing, size, and complexity of future acquisitions as well as other uncertainty inherent in mergers and acquisitions.One-time charges for the three and six months ended June 30, 2026 and 2025, related to the Company’s Business Optimization Programs initiated in April 2026 and April 2025, respectively. These charges, primarily related to workforce resizing and office reductions, have been excluded from non-IFRS results as these are one-time and unusual in nature.
Globant S.A.
Schedule of Supplemental Information (unaudited)
Metrics
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Total Employees
30,084
29,020
28,773
28,510
27,411
IT Professionals
28,097
27,123
26,906
26,702
25,632
North America Revenues %
54.1
53.8
53.8
53.5
52.8
Latin America Revenues %
19.7
19.9
21.1
20.5
20.8
Europe Revenues %
19.6
19.4
19.3
19.7
20.9
New Markets Revenues %
6.6
6.9
5.8
6.3
5.5
USD Revenues %
64.1
63.2
64.0
64.5
63.0
Other Currencies Revenues %
35.9
36.8
36.0
35.5
37.0
Top Customer %
8.6
8.7
8.5
8.9
8.9
Top 5 Customers %
20.3
20.7
20.5
21.1
21.6
Top 10 Customers %
29.3
29.5
29.4
30.5
30.6
Customers Served (Last Twelve Months)*
981
978
944
943
904
Customers with >$1M in Revenues (Last Twelve Months)
339
339
336
333
331
(*) Represents customers with more than $100,000 in revenues in the last twelve months.
Investor Relations Contact:
Arturo Langa, Globant
investors@globant.com
+1 (877) 215-5230
Media Contact:
Gregorio Lascano, Globant
pr@globant.com
+1 (877) 215-5230
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SOURCE Globant
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* This is a non-IFRS measure. See notes in “Selected Financial Information”.
RECENT DEVELOPMENTS
Term Facility
On May 15, 2026, the Company entered into an agreement (the “Credit Agreement”) with Luis LP (the “Lender”), an entity established by SAF Group, a Calgary-based private credit lender, pursuant to which the Lender established a non-revolving term credit facility (the “Term Facility”) in favour of the Company for up to $30.9 million.
Following September 30, 2026, the Company failed to meet the minimum Lender-defined EBITDA covenant applicable to the second and third quarters of 2026 combined period. On November 10, 2026, the Company and the Lender entered into the First Amending Agreement, under which the Lender waived the Company’s failure to meet the minimum Lender-defined EBITDA covenant for the second and third quarters of 2026 combined, subject to the terms and conditions of the First Amending Agreement. The waiver does not apply to any other Default or Event of Default or to any future covenant tests, including the fourth quarter of 2026 tests, which remain in place. The principal terms of the First Amending Agreement can be found in the Company’s management’s discussion and analysis (the “MD&A”) for the three and nine months ended September 30, 2026.
Pursuant to the terms of the Credit Agreement, the Company is prohibited from making the Kaelus deferred purchase price payments of approximately $10.6 million due November 15, 2026 and $2.7 million due December 15, 2026 when due and the Company is uncertain whether it will be allowed to make the final instalment of $7.3 million due March 27, 2027 (collectively the “Kaelus Payments”). Interest on a portion of the Kaelus Payments accrues at 5% per annum from closing until paid. The Company is evaluating alternatives to address these obligations.
The Kaelus Payments are presented in Canadian dollars based on the September 30, 2026 exchange rate. As previously disclosed, the Kaelus Payments are payable in Swedish Krona (SEK), and the actual Canadian dollar equivalent of the final payments will vary based on the exchange rate in effect on the applicable payment dates.
If a guaranteed Kaelus Payment is not made when due, the former Kaelus shareholders may make written demand under the guarantee against 2385796 Ontario Inc., a corporation controlled by Mr. Royer.
SELECTED FINANCIAL INFORMATION
The table below discloses selected financial information for the periods indicated.
(in $000’s except per share amounts)
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
Change
Change
2026
2025
Change
Change
$
$
$
%
$
$
$
%
Profit and Loss
Revenue
35,300
16,754
18,546
> 100.0%
73,383
58,076
15,307
26.4 %
Gross profit
12,230
7,274
4,956
68.1 %
29,273
25,682
3,591
14.0 %
Gross margin
34.6 %
43.4 %
(8.8 pp)
(20.3 %)
39.9 %
44.2 %
(4.3 pp)
(9.7 %)
Net loss
(742)
(1,100)
358
(32.5 %)
(6,249)
(2,142)
(4,107)
> 100.0%
Basic and diluted net loss per share
($0.00)
($0.01)
$0.01
(100.0 %)
($0.03)
($0.01)
($0.02)
> 100.0%
EBITDA(1)
263
249
14
5.6 %
(371)
2,060
(2,431)
N/A
Adjusted EBITDA(2)
703
586
117
20.0 %
3,805
4,695
(890)
(19.0 %)
As at
As at
As at
As at
September
30, 2026
September
30, 2025
Change
Change
September
30, 2026
December
31, 2025
Change
Change
$
$
$
%
$
$
$
%
Balance Sheet and Other
Current assets
75,520
33,399
42,121
> 100.0%
75,520
39,413
36,107
91.6 %
Total assets
114,512
44,243
70,269
> 100.0%
114,512
45,377
69,135
> 100.0%
Current liabilities
92,484
38,433
54,051
> 100.0%
92,484
50,582
41,902
82.8 %
Total liabilities
99,612
54,098
45,514
84.1 %
99,612
57,026
42,586
74.7 %
Net debt(3)
12,695
11,364
1,331
11.7 %
12,695
12,395
300
2.4 %
Backlog(4)
50,874
22,645
28,229
> 100.0%
50,874
20,404
30,470
> 100.0%
Notes:
(1)
See “Non-IFRS Measures”. “EBITDA” refers to net income (loss) plus income tax expense (recovery), interest and other finance expense (income), investment income, fair value adjustments, depreciation and amortization.
(2)
See “Non-IFRS Measures”. “Adjusted EBITDA” refers to EBITDA adjusted for the impact of certain items, including asset impairment charges, expenses from mergers and acquisitions, costs of reorganization of a business, gain or loss on the sale of a business, including related expenses, legal costs incurred from significant non-operating activities, severance and executive recruitment costs, and share-based compensation.
(3)
See “Non-IFRS Measures”. “Net debt” refers to total bank indebtedness less cash and cash equivalents.
(4)
See “Non-IFRS Measures”. “Backlog” refers to the value of unfulfilled purchase orders placed by customers.
A copy of the Company’s unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2026 and corresponding management’s discussion and analysis (the “MD&A”) are available under the Company’s profile on SEDAR+ at www.sedarplus.ca.
OUTLOOK
Corporate
In the third quarter of 2026, the Company continued to advance its strategy of building a diversified global RF technology platform following the acquisition of Kaelus in May 2026. The quarterly sequential revenue increase in the third quarter reflected the contribution from the first full quarter of the Kaelus business line, combined with improvements from the Satcom business line. These gains were tempered by the decline in revenue in the Wireless Infrastructure business line as a result of North American wireless carriers redirecting capital spending to fibre assets in support of data centre buildouts. The Company generated positive Adjusted EBITDA of $0.7 million in the third quarter of 2026, its eleventh consecutive quarter of positive Adjusted EBITDA.
The macroeconomic environment remains challenging, given the ongoing geopolitical tensions and continuing uncertainty. Continued disruptions to the oil supply in the Middle East kept the oil and fuel prices elevated, with broader impacts on transportation, logistics and other production costs across multiple industries. In addition, the Company is facing higher manufacturing costs amid industry-wide price spikes affecting a wide range of electronic components, including memory chips and other critical components.
Despite these challenges and uncertainties, we remain committed to our core principles: clear market-driven strategies, cost containment, prioritizing research and product development, and focusing on revenue growth and margin improvement. Management continues to monitor component pricing and supply chain conditions closely and is focused on mitigating the impact through procurement optimization, cost control initiatives and operational efficiencies.
Based on our current assessment for the fourth quarter of 2026, we expect (i) the Kaelus business line will continue to generate solid revenue, with margins improving relative to recent periods; (ii) the Custom Antenna Solutions business line will experience a gradual recovery in order intake, although customer purchasing activity may continue to be affected by macroeconomic conditions; (iii) sales volumes in the Wireless Infrastructure business line will remain below historical levels due to continued project delays and reduced carrier spending, particularly in the United States; and, (iv) the Satcom business line will deliver improved revenue performance compared to earlier periods.
These operating expectations are subject to ongoing financing and liquidity constraints. Although the First Amending Agreement improved the Company’s short-term liquidity, the terms of the Credit Agreement prohibit the Company from making the Kaelus Payments due in November and December 2026. The Company also remains subject to future financial covenant tests, which it may not satisfy. Management is working constructively with its Lender to negotiate amendments to its credit arrangements intended to address these challenges and support the Company’s ongoing liquidity requirements.
Kaelus Business Line
For the third quarter of 2026, Kaelus delivered strong revenue and Adjusted EBITDA in its first full quarter of consolidated operations, significantly bolstering the Company’s consolidated results. Based on current customer order volumes, ongoing sales velocity and efforts on improving margins, management believes that Kaelus will continue to produce healthy results. Looking ahead, management remains focused on integrating Kaelus into the broader organization, pursuing cross-selling opportunities across the combined customer portfolios of the Kaelus and Wireless Infrastructure business lines, as well as diversifying Kaelus’ customer base to drive further growth in 2027.
Custom Antenna Solutions Business Line
Custom Antenna Solutions delivered softer financial results in the third quarter of 2026 compared to the prior year period. The business line is being impacted by customer order delays due to market volatility and macroeconomic uncertainty. In addition, the business line faced higher production costs resulting from industry-wide price spikes across a wide range of electronic components, which placed additional pressure on gross margins. Despite these challenges, we expect Custom Antenna Solutions revenue in the fourth quarter of 2026 to be comparable to the third quarter, and full-year 2026 revenue to be similar to 2025. The number of active bids for new projects remains at a solid level.
Wireless Infrastructure Business Line
Wireless Infrastructure experienced challenging market conditions in the third quarter of 2026, primarily reflecting capital expenditure delays by North American carriers. Looking ahead, management will continue to leverage the competitive advantages of its multibeam and small cell antenna technologies to pursue new opportunities and drive further sales with wireless carriers and third-party network operators in domestic and international markets. Based on our current assessment, we anticipate Wireless Infrastructure’s performance in revenue, gross profit and Adjusted EBITDA for the full year 2026 will be softer than its very strong 2025 results. We expect carriers to resume infrastructure spending in 2027, which we anticipate will support a recovery in backlog and sales volume for the business line.
Satcom Business Line
Satcom recorded a significant increase in its backlog in the latter part of the second quarter of 2026 and early in the third quarter, primarily driven by multi-million-dollar purchase orders for the Genesis amplifiers across high-power broadcast, government and defence satellite applications. Although Satcom’s top line result in the third quarter of 2026 was weaker than the prior year period, Adjusted EBITDA was comparable and also demonstrated sequential improvement compared to the second quarter of 2026. With this backlog in hand, our outlook for the fourth quarter is more favourable as customers continue to transition from legacy lower-margin products to the new Genesis products manufactured in the United States. This shift in product mix coupled with increased sales volume is expected to improve margins, but we still anticipate that Satcom will end 2026 with lower revenue, gross profit and Adjusted EBITDA compared to 2025.
Satcom is generally not subject to US tariffs. See “Tariffs” below.
Tariffs
The Company continues to take proactive steps to monitor and mitigate the effect of US tariffs across all its business lines.
Wireless Infrastructure’s products are manufactured in our facility in China or third-party facilities in Vietnam. The actual margin impact of tariffs on Wireless Infrastructure has been mitigated to a level much lower than the applicable tariff due to a number of measures taken by the Company. This has allowed Wireless Infrastructure to be compliant with current tariff regime while protecting margins.
Custom Antenna Solutions is currently not directly affected by US tariffs on China. Although Custom Antenna Solutions’ products are manufactured in our facility in China or third-party facilities in Vietnam, they are shipped from there to contract manufacturers elsewhere in Asia for embedding in their final products.
Satcom’s products are manufactured in Canada, and a significant proportion (between 40% and 50% annually) is delivered to its customers in the United States. Satcom’s products are compliant with the Canada–United States–Mexico Agreement (“CUSMA”) and are therefore exempt from general tariffs applicable to non-qualifying Canadian goods. Following the initial joint review held on July 1, 2026, the United States declined to extend CUSMA for a new 16-year term in its current form, triggering annual joint reviews among the three countries. CUSMA remains in force. While the tariff treatment for qualifying Satcom products remains unchanged at this time, the ongoing annual joint reviews introduce medium-term trade policy uncertainty that could impact North American tariff structures in the future.
Since completion of the acquisition of Kaelus, the Company has been working to harmonize its tariff mitigation strategy across the Kaelus business line in order to minimize the impact of tariffs on its products shipped to US customers. Kaelus manufactures through its company-owned facility in China as well as through the use of contract manufacturers in China, Vietnam, and India. US sales represent approximately 20% of Kaelus’ total historical revenue.
KAELUS ACQUISITION – PRO FORMA FORECAST
The Company is withdrawing its financial outlook for fiscal 2026, most recently provided on August 5, 2026, including the forecast for combined revenue, gross profit, gross margin and Adjusted EBITDA. Investors should no longer rely on the August 5, 2026 financial outlook.
The August 5, 2026, financial outlook was based on management’s then-current expectations and assumptions regarding customer demand, order patterns and deployment activity across the Company’s businesses. Since that time, the timing of anticipated capital spending and network deployments by certain customers has changed, resulting in the deferral of certain expected customer orders and reduced visibility regarding the timing of future demand. As a result, management no longer believes it has a sufficient basis to support the financial outlook previously provided for fiscal 2026.
Accordingly, the Company is withdrawing its fiscal 2026 financial outlook, is not providing replacement quantitative guidance at this time. The Company will continue to provide disclosure concerning its historical financial results, business and operations and, where appropriate, other forward-looking information in accordance with applicable Canadian securities laws.
INVESTOR CONFERENCE CALL
Baylin will hold a conference call on Wednesday, November 11, 2026 at 10:00 a.m. (ET) to discuss its financial results for the three and nine months ended September 30, 2026. The conference call will be hosted by Leighton Carroll, Chief Executive Officer, and Cliff Gary, Chief Financial Officer. All interested parties are invited to participate using the dial-in details provided below.
Date:
November 11, 2026
Time:
10:00 a.m. (ET)
Dial-in Number:
(+1) 888-699-1199 or (+1) 416-945-7677
Conference ID#:
17616
Rapid Connect:
To instantly join the conference call by phone, please use the following URL to easily register
and be connected into the conference call automatically: https://emportal.ink/3P7r42x
Webcast:
This call is also on webcast and can be accessed at: https://app.webinar.net/Ka91P23nGMd
FORWARD-LOOKING INFORMATION AND STATEMENTS
This press release includes forward-looking information and forward-looking statements (together, “forward-looking statements”) within the meaning of applicable securities laws. Forward-looking statements are not statements of historical fact. Rather, forward-looking statements are disclosure regarding the conditions, developments, events or financial performance that we expect or anticipate may or will occur in the future including, among other things, information or statements concerning our objectives and strategies to achieve those objectives, statements with respect to management’s beliefs, estimates, intentions and plans, and statements concerning anticipated future circumstances, events, expectations, operations, performance or results. Forward-looking statements can be identified generally by the use of forward-looking terminology, such as “anticipate”, “believe”, “could”, “should”, “would”, “estimate”, “expect”, “forecast”, “indicate”, “intend”, “likely”, “may”, “outlook”, “plan”, “potential”, “project”, “seek”, “target”, “trend” or “will” or the negative or other variations of these words or other comparable words or phrases and is intended to identify forward-looking statements, although not all forward-looking statements contain these words.
Forward-looking statements in this press release and the MD&A referenced herein include statements concerning the outlook for our business generally and each of our business lines in particular, including our expectation for future financial performance, the effect of the macroeconomic environment, higher interest rates, timing of and potential impacts from US tariffs, and other disruptions to our business and financial performance. Forward-looking statements are based on certain assumptions and estimates made by us in light of experience and perception of historical trends, current conditions, anticipated future developments, including projected growth in the sales of passive and active radio frequency and satellite communications products, and supporting services, and other factors that we believe are appropriate and reasonable in the circumstances, but there can be no assurance that such assumptions and estimates will prove to be correct.
Forward-looking statements in this press release and the MD&A referenced herein include statements regarding the Company’s expected covenant compliance, available liquidity, ability to continue funding operations and meet obligations, treatment or restructuring of the Kaelus deferred purchase price, discussions with the Lender and former Kaelus shareholders, and the timing and consequences of any demand under the guarantee. These statements assume, among other things, continued Lender support, forecast operating performance and identified financing availability. Actual results may differ materially if the Company fails to satisfy future covenants, cannot obtain additional liquidity or accommodations, is required to make payments sooner than anticipated, or a former Kaelus shareholder makes demand under the guarantee.
Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including the risk factors discussed in the Company’s most recent Annual Information Form, which is available under the Company’s profile on SEDAR+ at www.sedarplus.ca. All the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors in this press release. There can be no assurance that the actual results or developments will be realized or, even if substantially realized, will have the expected consequences to, or effects on, the Company. Unless required by applicable securities law, the Company does not intend and does not assume any obligation to update any forward-looking statements.
NON-IFRS MEASURES
This press release includes a number of measures that are not recognized under International Financial Reporting Standards (“IFRS”), do not have any standardized meaning under IFRS and as such may not be comparable to similar measures presented by other companies. Management believes that these measures provide useful information to analysts, investors and other interested parties regarding the Company’s financial condition and results of operation as they provide additional key metrics of the Company’s performance. While management believes that non-IFRS measures provide useful supplemental information, they are not intended to represent, and should not be considered as alternatives to, net income (loss), cash flows generated by operating, investing or financing activities, or other financial statement data presented in accordance with IFRS. For further information, see “Non-IFRS Measures” on page 3 of the MD&A.
ABOUT BAYLIN
Baylin is a leading diversified global wireless technology company focused on cellular radio frequency products, custom antenna solutions, satellite communications products, and supporting services.
For further information, please visit www.baylintech.com.
SOURCE Baylin Technologies Inc.
Technology
JOAM INNOTECH Accelerates Global Expansion with Integrated Protection PCB Technology
Published
46 minutes agoon
November 11, 2026By
SEOUL, South Korea, Nov. 11, 2026 /PRNewswire/ — JOAM INNOTECH Co., Ltd. (CEO Byung-hyun Lee), a Korean company specializing in electrical safety, has announced that it has developed a printed circuit board (PCB) module that combines overvoltage, overcurrent and earth-leakage protection in a single unit. The company now plans to use this technology to expand into the global electrical safety market.
JOAM INNOTECH develops and manufactures PCBs for earth-leakage circuit breakers. Drawing on its experience in mass-producing overcurrent protection PCBs, the company is focused on advancing electrical safety technology. Its latest development, an integrated protection module that combines overvoltage, instantaneous overcurrent and earth-leakage detection on a single PCB, strengthens its product competitiveness.
The new module is designed to detect abnormal conditions in the power system, such as sustained high voltage, overcurrent or earth leakage, and trigger the breaker’s trip mechanism in response. Unlike conventional protection methods that only suppress momentary voltage surges, the module has enhanced overvoltage detection that lets it respond when abnormally high voltage is supplied continuously.
Another key advantage is that the module works with existing compact earth-leakage circuit breaker designs. It was designed around standard PCB dimensions, mounting methods and trip coil connections, so manufacturers can add it without external protection devices or major mechanical redesigns. Circuit breaker and power strip manufacturers can expand protection features and set their products apart while keeping their existing product designs.
JOAM INNOTECH is taking a phased approach to development and commercialization. The company has been mass-producing and supplying overcurrent protection PCBs since late 2024, building up its manufacturing capabilities. In April 2026, it filed a Korean patent application for its overvoltage protection technology, and in May it built prototypes of the integrated protection module and ran initial performance tests. Next, the company plans to run application tests in finished products, verify reliability and set mass-production inspection standards to prepare for commercialization.
“We developed this integrated protection PCB module to add overvoltage protection while keeping the structural advantages of existing compact earth-leakage circuit breakers,” said a JOAM INNOTECH spokesperson. “We will keep advancing the technology and verifying its reliability to strengthen our competitiveness, and we aim to create new business opportunities in the global electrical safety market as well as in Korea.”
JOAM INNOTECH CO., LTD
John B. H. Lee
LBH0917@gmail.com
View original content:https://www.prnewswire.com/apac/news-releases/joam-innotech-accelerates-global-expansion-with-integrated-protection-pcb-technology-302935767.html
SOURCE JOAM INNOTECH CO., LTD
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