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What changed in Globant S.A.'s 20-F — 2024 vs 2025

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Paragraph-level year-over-year comparison of Globant S.A.'s 2024 and 2025 20-F annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+622 added−607 removedSource: 20-F (2026-02-27) vs 20-F (2025-02-28)

Top changes in Globant S.A.'s 2025 20-F

622 paragraphs added · 607 removed · 389 edited across 6 sections

Item 2. Properties

Properties — owned and leased real estate

1 edited+0 added−0 removed0 unchanged
Biggest changeITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 4 ITEM 3. KEY INFORMATION 4 A. [Reserved] 4 B. Capitalization and Indebtedness 4 C. Reasons for the Offer and Use of Proceeds 4 D. Risk Factors 4 ITEM 4. INFORMATION ON THE COMPANY 24 A. History and Development of the Company 24 B. Business Overview 26 C. Organizational Structure 45 D.
Biggest changeITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 4 ITEM 3. KEY INFORMATION 4 A. [Reserved] 4 B. Capitalization and Indebtedness 4 C. Reasons for the Offer and Use of Proceeds 4 D. Risk Factors 4 ITEM 4. INFORMATION ON THE COMPANY 26 A. History and Development of the Company 26 B. Business Overview 28 C. Organizational Structure 46 D.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

103 edited+81 added−34 removed165 unchanged
Biggest changeThe following factors could result in harm to our business, reputation, revenue, financial results and prospects, among other impacts: Risks Related to Our Business and Industry • If we are unable to maintain the best possible resource utilization rates and productivity levels, our revenues, profit margins and results of operations may be adversely affected. • If we are unable to manage attrition and attract and retain highly-skilled IT professionals, our operating efficiency and productivity may decrease, and we may not have the necessary resources to maintain client relationships and expand our business. • If we are unable to achieve anticipated growth, our revenues, results of operations, business and prospects may be adversely affected. • If we are unable to effectively manage the rapid growth of our business, our management personnel, systems and resources could face significant strains, which could adversely affect our results of operations. • If the pricing structures we use for our client contracts are based on inaccurate expectations and assumptions regarding the cost and complexity of performing our work, our contracts could be unprofitable, which could adversely affect our results of operations, financial condition and cash flows from operations. • If we were to lose the services of our senior management team or other key employees, our business operations, competitive position, client relationships, revenues and results of operations may be adversely affected. • If we do not continue to innovate and remain at the forefront of emerging technologies and related market trends, we may lose clients and not remain competitive, which could cause our revenues and results of operations to suffer. • If any of our largest clients terminates, decreases the scope of, or fails to renew its business relationship or short-term contract with us, our revenues, business and results of operations may be adversely affected. • We are subject to numerous risks associated with the evolving market for products with AI capabilities. • We face intense competition from technology and IT services providers, and an increase in competition, our inability to compete successfully, pricing pressures or loss of market share could materially adversely affect our revenues, results of operations and financial condition. • Our business depends on a strong brand and corporate reputation, and if we are not able to maintain and enhance our brand, our ability to expand our client base will be impaired and our business and operating results will be adversely affected. 4 • Our labor costs and the operating restrictions that apply to us could increase as a result of collective bargaining negotiations and changes in labor laws and regulations, and disputes resulting in work stoppages, strikes, or disruptions could adversely affect our business. • Failure to comply with environmental, social and governance (“ESG”) regulations or meet stakeholders' expectations or Company's voluntary ESG goals could adversely affect our reputation, business, performance and results of operations.
Biggest changeThe following factors could result in harm to our business, reputation, revenue, financial results and prospects, among other impacts: Risks Related to Our Business and Industry • We are subject to numerous risks associated with the evolving market for products with AI capabilities. • Our results of operations may be adversely affected if we are unable to effectively manage our workforce, including utilization rates, productivity and attrition. • We have been, and may in the future be, unable to achieve anticipated growth, which has had, and may in the future have, an adverse effect on our results of operations, business and prospects. • Our business may be vulnerable to changes in political and economic conditions globally, including the effects of tariffs and other trade measures. • If the pricing structures we use for our client contracts are based on inaccurate assumptions regarding the cost, complexity or scope of our services, our contracts could be unprofitable, which could adversely affect our results of operations, financial condition and cash flows from operations. • If we were to lose the services of our senior management team or other key employees, our business operations, competitive position, client relationships, revenues and results of operations may be adversely affected. • If we do not continue to innovate and remain at the forefront of emerging technologies and related market trends, we may lose clients and not remain competitive, which could cause our revenues and results of operations to suffer. • If any of our largest clients terminates, decreases the scope of, or fails to renew its business relationship or short-term contract with us, our revenues, business and results of operations may be adversely affected. • We face intense competition from technology and IT services providers, and an increase in competition, our inability to compete successfully, pricing pressures or loss of market share could materially adversely affect our revenues, results of operations and financial condition. • Our business depends on a strong brand and corporate reputation, and if we are not able to maintain and enhance our brand, our ability to expand our client base will be impaired and our business and operating results will be adversely affected. • Our labor costs and the operating restrictions that apply to us could increase as a result of collective bargaining negotiations and changes in labor laws and regulations, and disputes resulting in work stoppages, strikes, or disruptions could adversely affect our business. • Evolving and conflicting environmental, social and governance (“ESG”) related laws and regulations, stakeholders' expectations with respect to ESG or our voluntary ESG goals, could increase our compliance costs, expose us to litigation or reputational harm and adversely affect our business, performance and results of operations. 4 Risks Related to our Global Operations • Our results of operations could be adversely affected by economic and geopolitical conditions, in particular, in the markets in which we operate. • The governments of many countries in which we operate have exercised and may continue to exercise significant influence over those countries' economies, which could adversely affect our business, financial condition, results of operations and prospects. • Inflation in the countries in which we operate could adversely affect our business and results of operations. • Our business, results of operations and financial condition may be adversely affected by fluctuations in currency exchange rates. • Changes in the tax laws or in the interpretation or enforcement or the loss of any country-specific tax benefits could have a material adverse effect on our financial condition and results of operations. • Our business, results of operations and financial condition may be adversely affected by the various conflicting and/or onerous legal and regulatory obligations required in the countries where we operate.
As a "foreign private issuer" in the United States, we are exempt from certain rules under the U.S. securities laws and are permitted to file less information with the SEC than U.S. companies. As a "foreign private issuer," we are exempt from certain rules under the U.S.
As a "foreign private issuer" in the United States, we are exempt from certain rules under the U.S. securities laws and are permitted to file less information with the SEC than U.S. companies.
The enforceability in Luxembourg courts of judgments rendered by U.S. courts will be subject prior any enforcement in Luxembourg to the procedure and the conditions set forth in the Luxembourg procedural code, which conditions may include the following as of the date of this annual report (which may change): • the judgment of the U.S. court is final and enforceable ( exécutoire ) in the United States; 22 • the U.S. court had jurisdiction over the subject matter leading to the judgment (that is, its jurisdiction was in compliance both with Luxembourg private international law rules and with the applicable domestic U.S. federal or state jurisdictional rules); • the U.S. court has applied to the dispute the substantive law that would have been applied by Luxembourg courts; • the judgment was granted following proceedings where the counterparty had the opportunity to appear and, if it appeared, to present a defense, and the decision of the foreign court must not have been obtained by fraud, but in compliance with the rights of the defendant; • the U.S. court has acted in accordance with its own procedural laws; • the judgment of the U.S. court does not contravene Luxembourg international public policy; and • the U.S. court proceedings were not of a criminal or tax nature.
The enforceability in Luxembourg courts of judgments rendered by U.S. courts will be subject prior any enforcement in Luxembourg to the procedure and the conditions set forth in the Luxembourg procedural code, which conditions may include the following as of the date of this annual report (which may change): • the judgment of the U.S. court is final and enforceable ( exécutoire ) in the United States; • the U.S. court had jurisdiction over the subject matter leading to the judgment (that is, its jurisdiction was in compliance both with Luxembourg private international law rules and with the applicable domestic U.S. federal or state jurisdictional rules); • the U.S. court has applied to the dispute the substantive law that would have been applied by Luxembourg courts; • the judgment was granted following proceedings where the counterparty had the opportunity to appear and, if it appeared, to present a defense, and the decision of the foreign court must not have been obtained by fraud, but in compliance with the rights of the defendant; • the U.S. court has acted in accordance with its own procedural laws; • the judgment of the U.S. court does not contravene Luxembourg international public policy; and • the U.S. court proceedings were not of a criminal or tax nature.
In addition, we face significant hurdles, including whether third-party developers will develop software that utilizes or is based on the AI capabilities of our products and whether we will be successful in developing AI-enabled products that can compete with offerings by established competitors. Our use of AI technology may subject us to reputational, financial, legal or regulatory risks.
In addition, we face significant hurdles, including whether third-party developers will develop software that utilizes or is based on the AI capabilities of our products and whether we will be successful in developing AI-enabled products that can compete with offerings by established competitors. 5 Our use of AI technology may subject us to reputational, financial, legal or regulatory risks.
Furthermore, in September 2024, the Brazilian Parliament enacted the Lei da Reoneração Gradual da Folha (Gradual Payroll Tax Reimposition Law). Under this law, the Contribuição Previdenciária sobre a Receita Bruta (Social Security Contribution on Gross Revenue) tax rate will be gradually reduced by 20% in 2025, 40% in 2026, 60% in 2027, and fully eliminated by 2028.
In September 2024, the Brazilian Parliament enacted the Lei da Reoneração Gradual da Folha (Gradual Payroll Tax Reimposition Law). Under this law, the Contribuição Previdenciária sobre a Receita Bruta (Social Security Contribution on Gross Revenue) tax rate will be gradually reduced by 20% in 2025, 40% in 2026, 60% in 2027, and fully eliminated by 2028.
For example, state data breach notification laws may come into play in the event of a data breach, thus requiring notice to any affected individuals. 18 We are also subject to risks relating to compliance with a variety of national and local labor laws including, employee health safety, wages and benefits laws and independent contractor regulations.
For example, state data breach notification laws may come into play in the event of a data breach, thus requiring notice to any affected individuals. We are also subject to risks relating to compliance with a variety of national and local labor laws including, employee health safety, wages and benefits laws and independent contractor regulations.
In addition, any intellectual property claim or litigation, whether we ultimately win or lose, could damage our reputation and materially adversely affect our business, financial condition and results of operations. Our cash flows and results of operations may be adversely affected if we are unable to collect on billed and unbilled receivables from clients.
In addition, any intellectual property claim or litigation, whether we ultimately win or lose, could damage our reputation and materially adversely affect our business, financial condition and results of operations. 14 Our cash flows and results of operations may be adversely affected if we are unable to collect on billed and unbilled receivables from clients.
Federal Income Tax Considerations — Passive foreign investment company rules." Our business and results of operations may be adversely affected by the increased strain on our resources from complying with the reporting, disclosure, and other requirements applicable to public companies in the United States.
Federal Income Tax Considerations — Passive foreign investment company rules. " 21 Our business and results of operations may be adversely affected by the increased strain on our resources from complying with the reporting, disclosure, and other requirements applicable to public companies in the United States.
We cannot guarantee that we will achieve our announced ESG goals and commitments, and our failure or perceived failure to achieve them, to maintain practices aligned with regulations and stakeholders’ expectations, or to comply with new ESG regulations or expectations could harm our reputation, adversely impact our ability to attract and retain customers and talent, and expose us to legal and regulatory proceedings and increased scrutiny from a range of stakeholders, what could have a material adverse effect on our business, results of operations, value chain and financial condition.
We cannot assure that we will achieve our announced ESG goals and commitments, and our failure or perceived failure to achieve them, to maintain practices aligned with regulations and stakeholders’ expectations, or to comply with new ESG regulations or expectations could harm our reputation, adversely impact our ability to attract and retain customers and talent, and expose us to legal and regulatory proceedings and increased scrutiny from a range of stakeholders, what could have a material adverse effect on our business, results of operations, value chain and financial condition.
Globant LLC’s obligations under the Fourth A&R Credit Agreement are guaranteed by the Company and its subsidiaries Globant España S.A. and Globant IT Services Corp., and are secured by substantially all of Globant LLC’s assets.
Globant LLC’s obligations under the Fourth A&R Credit Agreement Amendment are guaranteed by the Company and its subsidiaries Globant España S.A. and Globant IT Services Corp., and are secured by substantially all of Globant LLC’s assets.
Our results of operations would also suffer if our innovations are not responsive to the needs of our clients, are not appropriately timed with market opportunities or are not effectively brought to market.
Our results of operations would also suffer if our innovations were not responsive to the needs of our clients, are not appropriately timed with market opportunities or are not effectively brought to market.
We have expanded, and may continue to expand, our operations through strategically targeted acquisitions focused on deepening our relationships with key clients, extending our technological capacities including services over platforms, broadening our service offering and expanding the geographic footprint of our delivery centers. We completed a number of acquisitions in 2022, 2023 and 2024.
We have expanded, and may continue to expand, our operations through strategically targeted acquisitions focused on deepening our relationships with key clients, extending our technological capacities including services over platforms, broadening our service offering and expanding the geographic footprint of our delivery centers. We completed a number of acquisitions in 2023, 2024 and 2025.
Our determination of tax liability is always subject to review or examination by authorities in various jurisdictions. 17 Currently, we enjoy tax benefits from promotion regimes and certain tax incentives in Uruguay, India, and Argentina, among other countries, and we may benefit from additional promotional regimes and tax benefits in the future.
Our determination of tax liability is always subject to review or examination by authorities in various jurisdictions. 18 Currently, we enjoy tax benefits from promotion regimes and certain tax incentives in Uruguay, India, and Argentina, among other countries, and we may benefit from additional promotional regimes and tax benefits in the future.
Insolvency laws in Luxembourg or the relevant other European country, if any, may offer our shareholders less protection than they would have under U.S. insolvency laws and make it more difficult for them to recover the amount they could expect to recover in a liquidation under U.S. insolvency laws. 23
Insolvency laws in Luxembourg or the relevant other European country, if any, may offer our shareholders less protection than they would have under U.S. insolvency laws and make it more difficult for them to recover the amount they could expect to recover in a liquidation under U.S. insolvency laws. 25
These restrictions may hamper our ability to compete for and provide services to other clients in a specific industry in which we have expertise and could materially adversely affect our business, financial condition and results of operations. 15 Risks Related to our Global Operations.
These restrictions may hamper our ability to compete for and provide services to other clients in a specific industry in which we have expertise and could materially adversely affect our business, financial condition and results of operations. 16 Risks Related to our Global Operations.
Government influence and intervention could materially adversely affect our business, financial condition and results of operations. 16 Inflation in the countries in which we operate could adversely affect our business and results of operations. Some of the countries in which we operate have experienced, are currently experiencing or may experience, high rates of inflation.
Government influence and intervention could materially adversely affect our business, financial condition and results of operations. 17 Inflation in the countries in which we operate could adversely affect our business and results of operations. Some of the countries in which we operate have experienced, are currently experiencing or may experience, high rates of inflation.
Our results of operations could be adversely affected by economic and geopolitical conditions, in particular, the markets in which we operate. We have offices and operations in more than 32 countries around the world.
Our results of operations could be adversely affected by economic and geopolitical conditions, in particular, the markets in which we operate. We have offices and operations in more than 31 countries around the world.
The technology services industry is also undergoing consolidation, which may result in increased competition in our largest target markets in the United States and Europe from larger firms that may have substantially greater financial, marketing or technical resources, may be able to respond more quickly to new technologies or processes and changes in client demands, and may be able to devote greater resources to the development, promotion and sale of their services than we can.
The technology services industry is also undergoing consolidation, which may result in increased competition in our largest target markets in North America and Europe from larger firms that may have substantially greater financial, marketing or technical resources, may be able to respond more quickly to new technologies or processes and changes in client demands, and may be able to devote greater resources to the development, promotion and sale of their services than we can.
There is still limited guidance on the EU AI Act, but it could, depending on how provisions are interpreted and enforced, limit the ability to create and deploy AI systems for uses deemed high-risk in the EU or add increased compliance costs associated with these systems.
There is still limited guidance on the EU AI Act, but it could, depending on how provisions are interpreted and enforced, limit the ability to create and deploy AI systems for uses deemed high-risk in the EU or add increased compliance costs associated with developing, marketing and/or implementing AI systems.
Competition, fueled by rapidly changing consumer demands and constant technological developments, renders the technology services industry one in which success and performance metrics are difficult to predict and measure.
The technology services industry is continuously evolving. Competition, fueled by rapidly changing consumer demands and constant technological developments, renders the technology services industry one in which success and performance metrics are difficult to predict and measure.
The regulatory environment surrounding the impact of the implementation of AI on our products and services may adversely affect our ability to produce and export products and as a result may cause harm to our reputation and financial liability.
The regulatory environment surrounding the impact of the implementation of AI on our products and services may adversely affect our ability to provide our services and as a result may cause harm to our reputation and financial liability.
We have also deployed AI enabled solutions to enhance our internal processes, including proprietary AI assistants such as "Geno", a tool to optimize staffing and talent management processes, and "Sensei," a system that offers tailored learning and career development experiences, each of which leverage OpenAI’s GPT models.
We have also deployed AI enabled solutions to enhance our internal processes, including proprietary AI assistants such as “Geno”, a tool to optimize staffing and talent management processes, and “Sensei,” a system that offers tailored learning and career development experiences, each of which leverage OpenAI’s GPT models.
As a public company, we are required to document and test our internal control over financial reporting pursuant to Section 404, which requires management assessments and certifications of the effectiveness of our internal control over financial reporting. We have concluded that our internal control over financial reporting is effective as of December 31, 2024 (see Item15.
As a public company, we are required to document and test our internal control over financial reporting pursuant to Section 404, which requires management assessments and certifications of the effectiveness of our internal control over financial reporting. We have concluded that our internal control over financial reporting is effective as of December 31, 2025 (see " Item 15.
During the years ended December 31, 2024, 2023 and 2022, an aggregate of 58.7%, 56.9% and 55.6% of our total revenues were generated from clients in the media and entertainment, consumer, retail and manufacturing, and banks, financial services and insurance industries.
During the years ended December 31, 2025, 2024 and 2023, an aggregate of 59.3%, 58.7% and 56.9% of our total revenues were generated from clients in the banks, financial services and insurance industries, media and entertainment, and consumer, retail and manufacturing.
Any significant failure of our equipment or systems, or any major disruption to basic infrastructure like power and telecommunications in the locations in which we operate, could impede our ability to provide services to our clients, have a negative impact on our reputation, cause us to lose clients, and adversely affect our results of operations.
Any significant failure of our equipment or systems, or any major disruption to basic infrastructure like power and telecommunications in the locations in which we operate, could impair our ability to provide services to clients, result in the loss of clients, have a negative impact on our reputation, and adversely affect our results of operations.
For more information, see "Additional Information - Material Contracts." We may also incur additional indebtedness under other credit facilities or debt securities in the future. The governing instruments of such indebtedness could contain additional restrictive covenants that may further restrict our operations and capacity of incurring additional indebtedness.
" We may also incur additional indebtedness under other credit facilities or debt securities in the future. The governing instruments of such indebtedness could contain additional restrictive covenants that may further restrict our operations and capacity of incurring additional indebtedness.
Because we conduct a substantial part of our operations through our operating subsidiaries located in Argentina, Colombia, México and India, we are subject to the effects of wage inflation and other marketplace factors in these countries, which have increased significantly in recent years.
Because we conduct a substantial part of our operations through our operating subsidiaries located in Argentina, Colombia, México and India, our costs are subject to wage inflation and other local market conditions in these countries, which have increased significantly in recent years.
The Fourth A&R Credit Agreement also contains certain customary negative and affirmative covenants, which compliance may limit our flexibility in operating our business and our ability to take actions that might be advantageous to us and our shareholders.
The Fourth A&R Credit Agreement Amendment also contains certain customary negative and affirmative covenants, which compliance may limit our flexibility in operating our business and our ability to take actions that might be advantageous to us and our shareholders. For more information, see " Additional Information - Material Contracts.
As of December 31, 2024, approximately 12.2% of our Globers are covered by Collective Bargaining Agreements ("CBAs"), including Globers from our Brazilian, French, Spanish, Portuguese and Italian subsidiaries, as well as from some of our Argentinean subsidiaries. For complete details of the covered employees see " Directors, Senior Management and Employees — Employees ".
As of December 31, 2025, approximately 13.5% of our Globers are covered by Collective Bargaining Agreements (“CBAs”), including Globers from our Brazilian, French, Spanish, Portuguese and Italian subsidiaries, as well as from some of our Argentinean subsidiaries. For complete details of the covered employees see “ Directors, Senior Management and Employees — Employees ”.
If we are faced with immigration or work permit restrictions in any country where we currently have personnel onsite at a client location or would like to expand our delivery footprint, then our business, results of operations and financial condition may be adversely affected.
Our failure to comply with applicable regulatory requirements could have a material adverse effect on our business, results of operations and financial condition. 20 If we are faced with immigration or work permit restrictions in any country where we currently have personnel onsite at a client location or would like to expand our delivery footprint, then our business, results of operations and financial condition may be adversely affected.
The majority of our assets are located outside the United States. Furthermore, the majority of our directors and officers and some experts named in this annual report reside outside the United States and a substantial portion of their assets are located outside the United States.
We are organized under the laws of the Grand Duchy of Luxembourg. The majority of our assets are located outside the United States. Furthermore, the majority of our directors and officers and some experts named in this annual report reside outside the United States and a substantial portion of their assets are located outside the United States.
Many of our client contracts do not limit our potential liability for breaches of confidentiality. 12 In the past, we have experienced, and in the future, we may again experience, data security incidents resulting from unauthorized access to our and our service providers’ systems and unauthorized acquisition of our data and our clients’ data including, but not limited to: inadvertent disclosure, misconfiguration of systems, phishing ransomware or malware attacks.
In the past, we have experienced, and in the future, we may again experience, data security incidents resulting from unauthorized access to our and our service providers’ systems and unauthorized acquisition of our data and our clients’ data including, but not limited to: inadvertent disclosure, misconfiguration of systems, phishing ransomware or malware attacks.
Bribery Act ("UKBA"), anti-money laundering, whistle blowing, internal control and disclosure rules, such as the SEC Rules on Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure by Public Companies.
Bribery Act ("UKBA"), anti-money laundering, whistle blowing, regulations to prevent modern slavery in supply chains, internal control and disclosure rules, such as the SEC Rules on Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure by Public Companies.
Despite a reduction in our effective tax rate from 20.0% in 2023 to 19.7% in 2024, our effective tax rate may be increased for the current and future years. See "Regulatory Overview - Taxation - Global Minimum Tax" and "Operating Results - Certain Income Statement Line Items - Income Tax Expense".
Despite a reduction in our effective tax rate to 19.7% in 2024, our effective tax rate increased to 25.3% in 2025 and may increase in the current and future years. See "Regulatory Overview - Taxation - Global Minimum Tax" and "Operating Results - Certain Income Statement Line Items - Income Tax Expense".
On May 31, 2023, Globant LLC, one of our U.S. subsidiaries, entered into a Fourth Amended and Restated Credit Agreement, with certain financial institutions listed therein, as lenders, and HSBC Bank USA, N.A., as administrative agent, issuing bank and swingline lender (the “Fourth A&R Credit Agreement”).
On June 18, 2025, Globant LLC, one of our U.S. subsidiaries, entered into Amendment No. 1 to the Fourth Amended and Restated Credit Agreement, with certain financial institutions listed therein, as lenders, and HSBC Bank USA, N.A., as administrative agent, issuing bank and swingline lender (the “Fourth A&R Credit Agreement Amendment”).
As we add new Studios, introduce new services or enter into new markets, we may face new market, technological and operational risks and challenges with which we are unfamiliar, and which we may not be able to mitigate to successfully grow those services or markets.
However, as we restructure our Studios, introduce new services or enter new markets, we may face new market, technological and operational risks and challenges with which we are unfamiliar, and which we may not be able to successfully mitigate, limiting our ability to grow these services or markets.
If we were sued under any of these claims, our financial condition, reputation or business could be adversely impacted. Increasingly, different stakeholder groups have divergent views on ESG matters, which increases the risk that any action or lack thereof with respect to ESG matters will be perceived negatively by at least some stakeholders and adversely impact our reputation and business.
Increasingly, different stakeholder groups have divergent views on ESG matters, which increases the risk that any action or lack thereof with respect to ESG matters will be perceived negatively by at least some of them and adversely impact our reputation and business.
In addition, we may be required to notify our clients if one of our service providers is subject to a security incident that affects our clients’ data, and it may disrupt our operations and impede our ability to provide our services.
In addition, we may be required to notify our clients if one of our service providers is subject to a security incident that affects our clients’ data, and it may disrupt our operations and impede our ability to provide our services. Many of our client contracts do not limit our potential liability for breaches of confidentiality.
We may identify material weaknesses in the future and, accordingly, we may not be able to conclude that our internal control over financial reporting is effective in future periods as required by Section 404. 20 If we conclude that our internal control over financial reporting is not effective, we cannot be certain as to the timing, cost or management attention that would be required with respect to remediation actions and testing or their effect on our operations.
If we conclude that our internal control over financial reporting is not effective, we cannot be certain as to the timing, cost or management attention that would be required with respect to remediation actions and testing or their effect on our operations.
We perform our services primarily under time-and-materials contracts. We charge clients for our services under these contracts at hourly rates, which are highly dependent on the complexity of the project, the mix of staffing we anticipate using, internal forecasts of our operating costs and predictions of increases in those costs influenced by wage inflation and other marketplace factors.
We perform our services primarily under time-and-materials contracts. We charge clients for our services under these contracts at hourly rates, which are highly dependent on the complexity of the project, the anticipated staffing mix, internal forecasts of our operating costs, and expectations regarding future cost increases driven by wage inflation and other marketplace conditions.
The market price of our common shares may be volatile and may be influenced by many factors, some of which are beyond our control, including: • the failure of financial analysts to cover our common shares or changes in financial estimates by analysts; • actual or anticipated variations in our operating results; • changes in financial estimates by financial analysts, or any failure by us to meet or exceed any of these estimates, or changes in the recommendations of any financial analysts that elect to follow our common shares or the shares of our competitors; • announcements by us or our competitors of significant contracts or acquisitions; • future sales of our common shares; and • investor perceptions of us and the industries in which we operate.
The market price of our common shares may be volatile, has experienced, and in the future may experience, sudden declines and may be influenced by many factors, some of which are beyond our control, including: • the failure of financial analysts to cover our common shares or changes in financial estimates by analysts; • actual or anticipated variations in our operating results, financial performance or growth prospects; • changes in financial estimates by financial analysts, or any failure by us to meet or exceed any of these estimates, or changes in the recommendations of any financial analysts that elect to follow our common shares or the shares of our competitors; • changes in market conditions and macroeconomic developments; • changes in industry-wide developments; • announcements by us or our competitors of significant contracts or acquisitions; • future sales of our common shares; • any repurchases by us of our outstanding common shares under our share repurchase program; • trading volume of our shares; and • investor perceptions of us and the industries in which we operate.
This authorization is valid from the date of the extraordinary general meeting of shareholders, which was held on April 19, 2023, and ends on April 19, 2028, the fifth anniversary of the date of such meeting.
This authorization is valid from the date of the extraordinary general meeting of shareholders, which was held on May 10, 2024, and ends on May 10, 2029, the fifth anniversary of the date of such meeting.
Unauthorized access, disclosure of confidential client and client customer data, intellectual property or personal data or other loss of information, whether through breach of our or others' computer systems, systems failure, loss or theft of confidential information or intellectual property belonging to our clients or our clients' customers, or otherwise, could result in legal claims or proceedings, liability and damages under applicable laws, regulatory investigations or penalties, breach notification obligations, a requirement to provide monitoring services, breach of contract claims, significant fines, administrative sanctions, and could adversely affect our business, revenues, reputation, brand and competitive position and result in financial and other potential losses, as well as require us to expend significant resources to protect against further incidents and to rectify any problems caused by these events.
In addition, we may not be able to obtain insurance coverage for, or full insurance coverage for, all damages and losses related to security incidents, cyberattacks and other related incidents or similar risks, and any or all such damages and losses could exceed our insurance coverage or be denied by the insurance carriers for any reason, which could have a material adverse effect on our reputation and/or on our business, results of operations and financial condition. 13 Unauthorized access, disclosure of confidential client and client customer data, intellectual property or personal data or other loss of information, whether through breach of our or others' computer systems, systems failure, loss or theft of confidential information or intellectual property belonging to our clients or our clients' customers, or otherwise, could result in legal claims or proceedings, liability and damages under applicable laws, regulatory investigations or penalties, breach notification obligations, a requirement to provide monitoring services, breach of contract claims, significant fines, administrative sanctions, and could adversely affect our business, revenues, reputation, brand and competitive position and result in financial and other potential losses, as well as require us to expend significant resources to protect against further incidents and to rectify any problems caused by these events.
In addition, we expect to continue to face, competition from new technology services providers. Further, there is a risk that our clients may elect to increase their internal resources to satisfy their services needs as opposed to relying on a third-party vendor, such as us.
Further, there is a risk that our clients may elect to increase their internal resources to satisfy their services needs as opposed to relying on a third-party vendor, such as us.
If we make errors in our services or in the development of our software solutions, or fail to consistently meet our clients' service requirements, these errors, software defects or failures could disrupt our clients' respective businesses, which could result in a reduction in our revenues or a claim for substantial damages against us, and could seriously damage our reputation and limit our ability to attract new business.
If our services consistently fail to meet our clients’ requirements or our software solutions contain defects, our clients’ businesses could be disrupted, which could result in the loss of clients or business, a reduction in our revenues or claims for substantial damages against us, and could seriously damage our reputation and limit our ability to attract new business.
Compliance with complex international laws and regulations that apply to our international operations increases our cost of doing business. These numerous, and sometimes conflicting laws and regulations include, among others, import/export controls, content requirements, trade restrictions, tariffs, taxation, anti-corruption laws such as the U.S. Foreign Corrupt Practices Act ("FCPA"), the U.K.
These numerous, and sometimes conflicting laws and regulations include, among others, import/export controls, content requirements, trade restrictions, tariffs, taxation, anti-corruption laws such as the U.S. Foreign Corrupt Practices Act ("FCPA"), the U.K.
As we expand our software products, we may be exposed to new operational, legal, regulatory, ethical and technological risks that require us to take effective actions to protect our business. We are subject to numerous risks associated with the evolving market for products with AI capabilities.
As we expand our software products and services, we may be exposed to new operational, legal, regulatory, ethical and technological risks that require us to take effective actions to protect our business.
Damage to our reputation could also reduce the value and effectiveness of our Globant brand name and could reduce investor confidence in us and result in a decline in the price of our common shares. 9 Our labor costs and the operating restrictions that apply to us could increase as a result of collective bargaining negotiations and changes in labor laws and regulations, and disputes resulting in work stoppages, strikes, or disruptions could adversely affect our business.
Our labor costs and the operating restrictions that apply to us could increase as a result of collective bargaining negotiations and changes in labor laws and regulations, and disputes resulting in work stoppages, strikes, or disruptions could adversely affect our business.
We face competition primarily from large global consulting and outsourcing firms, digital agencies and design firms, traditional technology outsourcing providers, and the in-house product development departments of our clients and potential clients. Many of our competitors have substantially greater financial, technical and marketing resources and greater name recognition than we do.
We face competition primarily from large global consulting and outsourcing firms, digital agencies and design firms, traditional technology outsourcing providers, and the in-house product development departments of our clients and potential clients.
If any dispute arises between any members of our senior management team or key employees and us, any non-competition, non-solicitation and nondisclosure agreements we have with our founders, senior executives or key employees might not provide effective protection to us in light of legal uncertainties associated with the enforceability of such agreements. 7 If we do not continue to innovate and remain at the forefront of emerging technologies and related market trends, we may lose clients and not remain competitive, which could cause our revenues and results of operations to suffer.
Although we have entered into non-competition, non-solicitation and nondisclosure agreements with certain of our founders, senior executives and key employees, the enforceability of such agreements may be subject to legal, jurisdictional and practical limitations, and such agreements may not provide effective protection to us. 8 If we do not continue to innovate and remain at the forefront of emerging technologies and related market trends, we may lose clients and not remain competitive, which could cause our revenues and results of operations to suffer.
If we are unable to obtain funds from our subsidiaries, we will be unable to distribute dividends.
If we are unable to obtain funds from our subsidiaries, we will be unable to distribute dividends. We do not intend to seek to obtain funds from other sources to pay dividends.
We are organized under the laws of the Grand Duchy of Luxembourg and it may be difficult for you to obtain or enforce judgments or bring original actions against us or our executive officers and directors in the United States. We are organized under the laws of the Grand Duchy of Luxembourg.
Moreover, in the case of an increase in capital by a contribution in kind, no pre-emptive rights of the existing shareholders exist. 24 We are organized under the laws of the Grand Duchy of Luxembourg and it may be difficult for you to obtain or enforce judgments or bring original actions against us or our executive officers and directors in the United States.
For detailed explanations and further discussion, see "Business Overview — Government Support and Incentives". If these tax incentives are changed, terminated, not extended or restricted, or comparable new tax incentives are not introduced, we expect that our effective income tax rate and/or our operating expenses would increase significantly, which could materially adversely affect our financial condition and results of operation.
If these tax incentives are changed, terminated, not extended or restricted, or comparable new tax incentives are not introduced, we expect that our effective income tax rate and/or our operating expenses would increase significantly, which could materially adversely affect our financial condition and results of operation. In addition, other circumstances may impact the tax benefits that we receive.
If we were to lose the services of our senior management team or other key employees, our business operations, competitive position, client relationships, revenues and results of operations may be adversely affected. Our future success heavily depends upon the continued services of our senior management team and other key employees.
Any of these events could adversely affect our results of operations, financial condition and cash flows from operations. If we were to lose the services of our senior management team or other key employees, our business operations, competitive position, client relationships, revenues and results of operations may be adversely affected.
Securities Exchange Act of 1934, as amended (the "Exchange Act"), that impose certain disclosure obligations and procedural requirements for proxy solicitations under Section 14 of the Exchange Act.
For example, we are exempt from certain rules under the Exchange Act, that impose certain disclosure obligations and procedural requirements for proxy solicitations under Section 14 of the Exchange Act.
During the years ended December 31, 2024, 2023 and 2022, our largest customer based on revenues, The Walt Disney Company, accounted for 8.7%, 8.7% and 10.7% of our revenues, respectively.
During the years ended December 31, 2025, 2024 and 2023, our largest customer based on revenues, The Walt Disney Company, accounted for 8.7% of our revenues in each such year. During the years ended December 31, 2025, 2024 and 2023, our ten largest clients accounted for 29.2%, 29.3% and 32.0% of our revenues, respectively.
These broad market fluctuations, as well as general economic, political and market conditions such as recessions, interest rate changes or international currency fluctuations, as well as volatility in international capital markets, may cause the market price of our common shares to decline. 19 Downgrades to the U.S. government's sovereign credit rating by any rating agency, as well as negative changes to the perceived creditworthiness of U.S. government-related obligations, could also have a material adverse impact on financial markets and economic conditions in the United States and worldwide.
Downgrades to the U.S. government's sovereign credit rating by any rating agency, as well as negative changes to the perceived creditworthiness of U.S. government-related obligations, could also have a material adverse impact on financial markets and economic conditions in the United States and worldwide.
This may force us to compete on other fronts in addition to the quality of our services and to expend significant resources in order to remain competitive, which we may be unable to do.
Our competitors may be able to offer engineering, design and innovation services that are, or that are perceived to be, substantially similar or better than those we offer. This may force us to compete on other fronts in addition to the quality of our services and to expend significant resources to remain competitive, which we may be unable to do.
In addition, our officers, directors and principal shareholders are exempt from the reporting and "short-swing" profit recovery provisions of Section 16 of the Exchange Act and the rules under the Exchange Act with respect to their purchases and sales of our common shares.
In addition, our officers, directors and principal shareholders are exempt from the "short-swing" profit recovery provisions of Section 16 of the Exchange Act and the rules under the Exchange Act with respect to their purchases and sales of our common shares; however, pursuant to the Holding Foreign Insiders Accountable Act enacted on December 18, 2025, our directors and officers will, effective March 18, 2026, become subject to the public reporting requirements of Section 16(a) of the Exchange Act with respect to their purchases and sales of our common shares.
We cannot assure that our suppliers' pricing terms will not increase and/or that we will be able to carry-forward such pricing increases to our clients.
In addition, we rely, to a limited extent, on third-party suppliers of goods and services, and we cannot assure that our suppliers’ pricing terms will not increase and/or that we will be able to carry-forward such pricing increases to our clients.
Under our client contracts, our liability for breach of our obligations is, in some cases, limited. Such limitations may be unenforceable or otherwise may not protect us from liability for damages. In addition, certain liabilities, such as claims of third parties for which we may be required to indemnify our clients, may not be limited under our contracts.
In addition, certain liabilities, such as claims of third parties for which we may be required to indemnify our clients, may not be limited under our contracts.
Simultaneously, the Folha Alíquota (Payroll Tax Rate) will gradually increase to 5% in 2025, 10% in 2026, 15% in 2027, and 20% from 2028 onward. These and other changes in the tax laws could increase our tax burden and materially adversely affect our financial condition and results of operations.
Simultaneously, the Folha Alíquota (Payroll Tax Rate) will gradually increase to 5% in 2025, 10% in 2026, 15% in 2027, and 20% from 2028 onward.
In addition, we cannot assure you that we will be able to negotiate new CBAs on the same terms as those currently in effect, or that we will not be subject to strikes or work stoppages before or during the negotiation process.
We cannot assure you that we or our operating subsidiaries will not experience work disruptions, strikes or work stoppages in the future, including in connection with CBA negotiations or otherwise. In addition, we cannot assure you that we will be able to negotiate new CBAs on the same terms as those currently in effect.
Failure to establish and maintain effective internal controls in accordance with Section 404 could have a material adverse effect on our business and common share price.
If we fail to comply with new or changed laws or regulations and standards differ, our business and reputation may be harmed. 22 Failure to establish and maintain effective internal controls in accordance with Section 404 could have a material adverse effect on our business and common share price.
If the anticipated value of such incentives does not materialize because of volatility or lack of positive performance in our share price, or if our total compensation package is not viewed as being competitive, we may be unable to retain our senior executives and key employees or attract and retain new senior executives and key employees in the future, in which case our business may be severely disrupted, and our ability to attract and retain personnel could be adversely affected.
If the anticipated value of such incentives does not materialize due to volatility or declines in our share price, or if our overall compensation arrangements are not perceived as competitive, we may be unable to retain our senior executives and key employees or attract and retain new senior executives and key employees in the future, which could adversely affect our business and results of operations.
The significant investments we have made to develop products intended to satisfy the increasing demand for AI capabilities may be insufficient. Conversely, demand for AI-enabled products and services may not materialize.
In addition, during 2025, we introduced new AI Pods powered by Globant Enterprise AI that provide clients with access to agentic AI capabilities. The significant investments we have made to develop products intended to satisfy the increasing demand for AI capabilities may be insufficient. Conversely, demand for AI-enabled products and services may not materialize.
There can be no assurance that our non-unionized employees will not become members of a union or become covered by a collective bargaining agreement, including through an acquisition of a business whose employees are subject to such an agreement.
There can be no assurance that our non-unionized employees will not become unionized or become covered by existing or new CBAs, including as a result of acquisitions of businesses whose employees are subject to such agreements.
Failure to manage growth effectively could have a material adverse effect on the quality of the execution of our engagements, our ability to attract and retain professionals and our business, results of operations, prospects and financial condition. 6 If the pricing structures we use for our client contracts are based on inaccurate expectations and assumptions regarding the cost and complexity of performing our work, our contracts could be unprofitable, which could adversely affect our results of operations, financial condition and cash flows from operations.
Consistent high inflation and any related high interest rates could have a material adverse effect on our business, results of operations and financial condition. 7 If the pricing structures we use for our client contracts are based on inaccurate assumptions regarding the cost, complexity or scope of our services, our contracts could be unprofitable, which could adversely affect our results of operations, financial condition and cash flows from operations.
Undetected software defects could result in liability under certain of our contracts as well as losses resulting from any litigation initiated by clients as a result of those defects, which could have a material adverse effect on our financial condition and/or our reputation. 11 In addition, certain of our clients' contracts require us to comply with security obligations including maintaining network security and backup data, ensuring our network is virus-free, maintaining business continuity planning procedures, and verifying the integrity of employees that work with our clients by conducting background checks.
In addition, certain of our clients’ contracts require us to comply with security obligations including maintaining network security and backup data, ensuring our network is virus-free, maintaining business continuity planning procedures, and verifying the integrity of employees that work with our clients by conducting background checks.
As a result, they may be able to compete more aggressively on pricing or devote greater resources to the development and promotion of technology and IT services. Companies based in some emerging markets also present significant price competition due to their competitive cost structures and tax advantages.
As a result, they may be able to compete more aggressively on pricing or devote greater resources to the development and promotion of technology and IT services.
Due to the varying degree of development of the legal systems of the countries in which we operate, local laws might be insufficient to defend us and preserve our rights. Our failure to comply with applicable regulatory requirements could have a material adverse effect on our business, results of operations and financial condition.
Due to the varying degree of development of the legal systems of the countries in which we operate, local laws might be insufficient to defend us and preserve our rights.
As a result, the shareholding of such shareholders may be materially diluted in the event common shares are issued in the future. Moreover, in the case of an increase in capital by a contribution in kind, no pre-emptive rights of the existing shareholders exist.
As a result, the shareholding of such shareholders may be materially diluted in the event common shares are issued in the future.
As a result, we may face difficulties attracting and retaining qualified board members and senior management, which could harm our business. If we fail to comply with new or changed laws or regulations and standards differ, our business and reputation may be harmed.
As a result, we may face difficulties attracting and retaining qualified board members and senior management, which could harm our business.
If client damages are not limited and are recoverable against us in amounts in excess of our insurance coverage, or if our claims for insurance coverage are denied by our insurance carriers for any reason, there could be a material adverse effect on our reputation and/or on our business, results of operations and financial condition.
If client damages are not limited or exceed our insurance coverage, or if coverage is denied by our insurance carriers for any reason, we could be exposed to significant uninsured losses, which could have a material adverse effect on our business, results of operations, financial condition and reputation. 12 Our client relationships, revenues, results of operations and financial condition may be adversely affected if we experience disruptions in our business.
Any change in our pricing terms would increase our costs and expenses, which would have an adverse effect on our results of operations. Strategic acquisitions to complement and expand our business have been and will likely remain an important part of our competitive strategy.
Strategic acquisitions to complement and expand our business have been and will likely remain an important part of our competitive strategy.
Our future growth depends on recruiting, hiring and training technology professionals, growing our international operations, expanding our delivery capabilities, adding effective sales staff and management personnel, adding service offerings, maintaining existing clients and winning new business.
Our future growth also depends on our ability to recruit, hire and train technology professionals, grow our international operations, expand our delivery capabilities, add effective sales staff and management personnel, expand service offerings, maintain existing clients and win new business.
Our business, results of operations and financial condition may be adversely affected by the various conflicting and/or onerous legal and regulatory obligations required in the countries where we operate. We have a presence in many countries and plan to continue expanding our international operations, which may subject us to increased business and economic risks that could affect our financial results.
These and other changes in the tax laws could increase our tax burden and materially adversely affect our financial condition and results of operations. Our business, results of operations and financial condition may be adversely affected by the various conflicting and/or onerous legal and regulatory obligations required in the countries where we operate.
Parties making infringement claims may be able to obtain an injunction to prevent us from delivering our services or using technology involving the allegedly infringing intellectual property. 13 Intellectual property litigation is expensive, time-consuming, could divert management's attention away from our business and are often not subject to liability limits or exclusions.
Intellectual property litigation is expensive, time-consuming, could divert management's attention away from our business and are often not subject to liability limits or exclusions.
The total attrition rate among our Globers was 9.5%, 8.1% and 16.7% for the years ended December 31, 2024, 2023 and 2022, respectively. If our attrition rate were to increase above historical levels, our operating efficiency and productivity may decrease.
The total attrition rate among our Globers was 13.6%, 9.5% and 8.1% for the years ended December 31, 2025, 2024 and 2023, respectively.
This, in turn, may result in increasing pressure on us from clients in these key industries to lower our prices, which could adversely affect our revenues, results of operations and financial condition.
This, in turn, may result in increasing pressure on us from clients in these key industries to lower our prices, which could adversely affect our revenues, results of operations and financial condition. 11 We operate in a rapidly evolving industry, which makes it difficult to evaluate our future prospects, may increase the risk that we will not continue to be successful and, accordingly, may increase the risk of your investment.

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Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeThis team promotes our brand through a variety of channels, including the following: • Converge: Our series of executive events that bring together some of the best creative minds in the industry for one amazing day of inspirational stories, inventive ideas, learning experiences, and "wow" technology showcases that enable attendees to re-think the new ways they do business. • Sentinel Report: Provides insightful evidence of consumer behavior and market trends that sparks strategic thinking. • Trends Applied: A series of reports and LIVE conversations regarding technology trends in key industries. • TechNFest: Our signature event for talent where we offer talks and demos on the latest tech trends and showcase Globant’s workplace experience. • Reports and whitepapers: Special reports that analyze trends and the impact of such trends on businesses. • Success Stories : A yearly initiative where participants share experiences about complex technical challenges and the brands and people behind them. • Globant Awards: Global awards with two editions - Women that Build, which recognizes women who inspire, build, lead and help create change, and Digital Disruptors, which acknowledges all those disruptors that lead the digital and cognitive revolution. • Webinars: Explore different trends and technologies in depth showcasing views from experts in the field. 38 • Events: Ranging from small events for specific guests or partners to large events that welcome the community. • Podcasts: Discussion of tech trends and diverse perspectives. • Blog: Explore content on the latest trends and best practices in the different industries we work with. • Newsletter: Monthly update to seek reinvention in every industry. • Books: Experts share their fresh perspectives and industry insights.
Biggest changeThis team promotes our brand through a variety of channels, including the following: • Converge: Our series of executive events that brings together some of the best creative minds in the industry for one amazing day of inspirational stories, inventive ideas, learning experiences, and "wow" technology showcases that enable attendees to re-think the new ways they do business. • Global Partnerships: Leveraging hospitality and co-branding initiatives with global partners, such as FIFA, F1, Riot Games, Unity and Open AI. • Tech Trends Report: A series of reports and LIVE conversations regarding technology trends in key industries. • Reports and whitepapers: Special reports that analyze trends and the impact of such trends on businesses. • Success Stories : A yearly initiative where participants share experiences about complex technical challenges and the brands and people behind them. • Events: Ranging from small events for specific guests or partners to large events that welcome the community. • Podcasts: Discussion of tech trends and diverse perspectives. • Blog: Explore content on the latest trends and best practices in the different industries we work with. • Analyst Relations: Managing relationships with firms like Gartner and Forrester to position Globant offering among enterprise buyers and participate in rankings and reports.
The rapid evolution of digital tools and AI compels organizations to reevaluate their operational frameworks and customer engagement strategies. The ongoing transformation, driven by generative AI and advanced analytics, is fundamentally altering business practices and establishing new competitive paradigms. To remain relevant and thrive in an increasingly digital environment, companies must proactively embrace these changes.
The rapid evolution of digital tools, including AI, compels organizations to reevaluate their operational frameworks and customer engagement strategies. The ongoing transformation, driven by generative AI and advanced analytics, is fundamentally altering business practices and establishing new competitive paradigms. To remain relevant and thrive in an increasingly digital environment, companies must proactively embrace these changes.
ITEM 4. INFORMATION ON THE COMPANY A. History and Development of the Company We were founded in 2003 by Martín Migoya, our Chairman and Chief Executive Officer; Guibert Englebienne, our President of Globant X, Globant Ventures and Latin America; Martín Umaran, our Chief Corporate Development Officer and President of EMEA; and Nestor Nocetti, our Executive Vice President of Corporate Affairs.
ITEM 4. INFORMATION ON THE COMPANY A. History and Development of the Company We were founded in 2003 by Martín Migoya, our Chairman and Chief Executive Officer; Guibert Englebienne, our President of Globant X, Globant Ventures and Latin America; Martín Umaran, our Chief Corporate Development Officer and President of EMEA; and Nestor Nocetti, our Chief Corporate Affairs Officer.
You may find complete information about all of our subsidiaries and their respective holdings in Exhibit 8.1 . D. Property, Plant and Equipment See “ Business Overview - Facilities and Infrastructure ”. ITEM 4A. UNRESOLVED STAFF COMMENTS Not applicable. 45
You may find complete information about all of our subsidiaries and their respective holdings in Exhibit 8.1 . D. Property, Plant and Equipment See “ Business Overview - Facilities and Infrastructure ”. ITEM 4A. UNRESOLVED STAFF COMMENTS Not applicable.
Value-added tax Argentina In Argentina, the sale of goods and the provision of services, under certain circumstances, rendered outside of Argentina, which are effectively used or exploited in Argentina, and digital services rendered from abroad, are subject to VAT. The current value-added general tax rate is 21%.
Valued-added tax In Argentina, the sale of goods and the provision of services, under certain circumstances, rendered outside of Argentina, which are effectively used or exploited in Argentina, and digital services rendered from abroad, are subject to VAT. The current value-added general tax rate is 21%.
We believe our presence in many countries creates a key competitive advantage by allowing us to benefit from the abundance of high-quality talent in the region, cultural similarities and geographic proximity to our clients.
In addition, we believe our presence in many countries creates a key competitive advantage by allowing us to benefit from the abundance of high-quality talent in the region, cultural similarities and geographic proximity to our clients.
Various federal and state agencies in the 32 countries in which we operate regulate different aspects of our business, including anti-corruption, internal and disclosure control obligations, data privacy and protection, wage and labor standards, employment and labor relations, trade protections, international trade controls, foreign exchange controls and other regulatory requirements affecting trade and investment.
Various federal and state agencies in the 31 countries in which we operate regulate different aspects of our business, including anti-corruption, internal and disclosure control obligations, data privacy and protection, wage and labor standards, employment and labor relations, trade protections, international trade controls, foreign exchange controls and other regulatory requirements affecting trade and investment.
Globant's team is currently comprised of 411 sales professionals worldwide. Beyond leveraging our broad expertise, our sales strategy is driven by three fundamentals: retain, develop and acquire ("RDA"). The retention component is focused on maintaining our wallet share with existing accounts through flawless execution on our engagements.
Globant's team is currently comprised of 395 sales professionals worldwide. Beyond leveraging our broad expertise, our sales strategy is driven by three fundamentals: retain, develop and acquire ("RDA"). The retention component is focused on maintaining our wallet share with existing accounts through flawless execution on our engagements.
Long-term relationships with blue chip clients We have built a roster of blue chip clients, such as Google, Electronic Arts, and The Walt Disney Company, many of which themselves are at the forefront of emerging technologies and with whom we have been working for more than ten years.
Long-term relationships with blue chip clients We have built a roster of blue chip clients, such as Google and The Walt Disney Company, many of which themselves are at the forefront of emerging technologies and with whom we have been working for more than ten years.
In this case, the 20% dividends tax applies on the distributed amount after it is reduced by the 35% recapture income tax. A 35% corporate income tax is imposed on dividends paid to residents (including companies and individuals) out of profits not taxed at the corporate level.
In this case, the 20% dividends tax applies on the distributed amount after it is reduced by the 35% recapture income tax. A 35% corporate income tax is imposed on dividends paid to residents (including companies) out of profits not taxed at the corporate level.
Income tax Argentina Pursuant to Income Tax Law No. 20,628, as amended (the “ITL”), in Argentina, legal entities and branches of foreign entities are subject to a tax on their worldwide income; provided that any foreign taxes paid on income earned from activities carried out abroad can be taken as a credit against the applicable Argentine tax, to the extent that the foreign tax does not exceed the Argentine tax.
Argentina Income tax Pursuant to Income Tax Law No. 20,628, as amended, legal entities and branches of foreign entities are subject to a tax on their worldwide net income; provided that any foreign taxes paid on income earned from activities carried out abroad can be taken as a credit against the applicable Argentine tax, to the extent that the foreign tax does not exceed the Argentine tax.
See " Risk Factors — Risks Related to Our Global Operations — Our business, results of operations and financial condition may be adversely affected by the various conflicting and/or onerous legal and regulatory obligations required in the countries where we operate", “If we are faced with immigration or work permit restrictions in any country where we currently have personnel onsite at a client location or would like to expand our delivery footprint, then our business, results of operations and financial condition may be adversely affected” and “Risk Factors — Risks Related to Our Business and Industry — Our labor costs and the operating restrictions that apply to us could increase as a result of collective bargaining negotiations and changes in labor laws and regulations, and disputes resulting in work stoppages, strikes, or disruptions could adversely affect our business”.
See " Risk Factors — Risks Related to Our Global Operations — Our business, results of operations and financial condition may be adversely affected by the various conflicting and/or onerous legal and regulatory obligations required in the countries where we operate ", “ If we are faced with immigration or work permit restrictions in any country where we currently have personnel onsite at a client location or would like to expand our delivery footprint, then our business, results of operations and financial condition may be adversely affected ” and “ Risk Factors — Risks Related to Our Business and Industry — Our labor costs and the operating restrictions that apply to us could increase as a result of collective bargaining negotiations and changes in labor laws and regulations, and disputes resulting in work stoppages, strikes, or disruptions could adversely affect our business ”.
We typically enter into a master services agreement (or MSA) with our clients, which provides a framework for services and a statement of work (or SOW) to define the scope, timing, pricing terms and performance criteria of each individual engagement under the MSA. We generate 42.5% of our revenue from long-term projects with terms greater than 24 months.
We typically enter into a master services agreement (or MSA) with our clients, which provides a framework for services and a statement of work (or SOW) to define the scope, timing, pricing terms and performance criteria of each individual engagement under the MSA. We generate 49.8% of our revenue from long-term projects with terms greater than 24 months.
Foreign exchange controls Pursuant to the regulations of the Argentine Central Bank, among others, (a) collections of foreign currency from the export of goods and services and the disbursement of foreign financial loans (to have access to the FX Market for the repayment of principal and interests), are subject to mandatory transfer into Argentina and conversion into Argentine pesos through the FX Market; provided, that in the case of the export of goods and services, the Export Increase Program ( Progama de Incremento Exportador ) allows exporters to repatriate and liquidate at the official exchange rate equal to 80% of the proceeds for their exports through the FX Market, and to execute inbound blue-chip swap transactions for the remaining 20%; (b) the prior authorization of the Argentine Central Bank is required for access to the FX Market for the purchase of foreign currency for certain purposes (e.g. except under certain circumstances, payment of dividends, pre-payment of principal and interest on indebtedness; and payments to related parties); and (c) access to the FX Market to make payments from Argentina is subject to compliance with a foreign indebtedness information regime and the filing of an affidavit stating that, among other things: (i) payor did not, and commits not to perform certain transactions with Argentine securities and Argentine depositary receipts of foreign shares (“CEDEARS”) within the preceding and following 90 days; (ii) as of the transaction date, payor does not have holdings of foreign currency in Argentina that are not deposited with Argentine financial institutions and does not have foreign liquid disposable assets and CEDEARS for an equivalent of more than $100,000; and (iii) commits to transfer into Argentina and settle for Argentine pesos any payments received outside of Argentina under loans granted by payor or under time deposits made after May 28, 2020, or from the sale of assets.
The withholding tax rates on dividends paid to nonresidents are subject to any applicable surcharge and cess and may be reduced under a tax treaty. 44 Foreign exchange controls Pursuant to the regulations of the Argentine Central Bank, among others, (a) collections of foreign currency from the export of goods and services and the disbursement of foreign financial loans (to have access to the FX Market for the repayment of principal and interests), are subject to mandatory transfer into Argentina and conversion into Argentine pesos through the FX Market; provided, that in the case of the export of goods and services, the Export Increase Program ( Progama de Incremento Exportador ) allows exporters to repatriate and liquidate at the official exchange rate equal to 80% of the proceeds for their exports through the FX Market, and to execute inbound blue-chip swap transactions for the remaining 20%; (b) the prior authorization of the Argentine Central Bank is required for access to the FX Market for the purchase of foreign currency for certain purposes (e.g. except under certain circumstances, payment of dividends, pre-payment of principal and interest on indebtedness; and payments to related parties); and (c) access to the FX Market to make payments from Argentina is subject to compliance with a foreign indebtedness information regime and the filing of an affidavit stating that, among other things: (i) payor did not, and commits not to perform certain transactions with Argentine securities, Argentine depositary receipts of foreign shares (“CEDEARS”) or external assets within the preceding and following 90 calendar days; (ii) as of the transaction date, payor does not have holdings of foreign currency in Argentina that are not deposited with Argentine financial institutions and does not have foreign liquid disposable assets and CEDEARS for an equivalent of more than $100,000; and (iii) commits to transfer into Argentina and settle for Argentine pesos any payments received outside of Argentina under loans granted by payor or under time deposits made after May 28, 2020, or from the sale of assets.
These applications and tools are designed to promote transparency, and knowledge-sharing, enhance coordination and cooperation, reduce risks such as security breaches and cost overruns, and provide control as well as visibility across all stages of the project lifecycle, for both our clients and us. Our key methodologies and tools are described below.
These applications and tools are designed to promote transparency, and knowledge-sharing, enhance coordination and cooperation, reduce risks such as security breaches and cost overruns, and provide control as well as visibility across all stages of the project lifecycle, for both our clients and us.
A nonresident corporation in Mexico is subject to profits tax on income earned from carrying on business through a permanent establishment in Mexico and on Mexican-sourced income. Corporations are considered residents of Mexico if their principal place of management is located in Mexico. The corporate income tax rate is 30%.
A nonresident corporate entity in Mexico is subject to profits tax on income earned from carrying on business through a permanent establishment in Mexico and on Mexican-sourced income. Corporate entities are considered residents of Mexico if their principal place of management is located in Mexico. The corporate income tax rate is 30%.
Subject to net income amounts, companies are required to pay a fixed amount and a progressive rate over the surplus of the minimum base rate in their category. The amounts are adjusted annually starting on January 1, 2022, based on the variation of the consumer price index ("CPI").
Subject to net income amounts, companies are required to pay a fixed amount and a progressive rate over the surplus of the minimum base rate in their category. The amounts are adjusted annually based on the variation of the consumer price index ("CPI").
We face competition from various technology services providers such as Accenture, Atos, Capgemini, Cognizant Technology Solutions, Deloitte Digital, DXC Technology, Endava, EPAM Systems, Inc., Genpact, GlobalLogic, Grid Dynamics, HCL Technologies, Infosys, Tata Consultancy Services, and Wipro, among others. Additionally, we compete with numerous smaller local companies in the various geographic markets in which we operate.
We compete with various technology service providers such as Accenture, Atos, Capgemini, Cognizant Technology Solutions, Deloitte Digital, DXC Technology, Endava, EPAM Systems, Inc., Genpact, GlobalLogic, Grid Dynamics, HCL Technologies, Infosys, Tata Consultancy Services, CI&T and Wipro, among others. Additionally, we compete with numerous smaller local companies in the various geographic markets in which we operate.
Our subsidiaries, BSF S.A., IAFH Global S.A. and Sistemas Globales S.A were approved as beneficiaries of the Knowledge Economy Law by the Subsecretary of Knowledge Economy and incorporated into the National Registry on July 8, 2021, October 15, 2021, December 14, 2021, and February 8, 2022 respectively. Benefits were granted as of January 1, 2020.
Our subsidiaries, BSF S.A., IAFH Global S.A. and Sistemas Globales S.A were approved as beneficiaries of the Knowledge Economy Law by the Subsecretary of Knowledge Economy and incorporated into the National Registry on July 8, 2021, October 15, 2021, December 14, 2021, and February 8, 2022 respectively.
We will continue to focus on expanding our global delivery footprint to gain access to additional pools of talent to effectively meet the demands of our clients. Highly experienced management team Our management team is comprised of seasoned industry professionals with global experience. Our management sets the vision and strategic direction for Globant and drives our growth and entrepreneurial culture.
By expanding our global delivery footprint, we expect to gain access to additional pools of talent to effectively meet the demands of our clients. Highly experienced management team Our management team is comprised of seasoned industry professionals with global experience. Our management sets the vision and strategic direction for Globant and drives our growth and entrepreneurial culture.
Mexico Resident individuals and nonresident shareholders of a Mexican corporation are subject to a 10% income tax on dividends received that are paid out of profits generated after 2013.
Tax on dividends Nonresident shareholders of a Mexican corporation are subject to a 10% income tax on dividends received that are paid out of profits generated after 2013.
India In India, under the Special Economic Zones Act of 2005, the services provided by export-oriented companies within Special Economic Zones (each, a "SEZ") are eligible for a deduction of 100% of the profits or gains derived from the export of services for the first five years from the financial year in which the company commenced the provision of services and 50% of such profits or gains for the five years thereafter.
Benefits were granted as of January 1, 2020. 40 India In India, under the Special Economic Zones Act of 2005, the services provided by export-oriented companies within Special Economic Zones (each, a "SEZ") are eligible for a deduction of 100% of the profits or gains derived from the export of services for the first five years from the financial year in which the company commenced the provision of services and 50% of such profits or gains for the five years thereafter.
As our Sustainability strategy, Be Kind unites positive impact programs for its main stakeholders and consolidates initiatives to tackle critical issues, such as climate change, wellness in the workplace, education, misuse of technology, and ethics in AI, among others. Our Be Kind initiative is built on four pillars: 1.
As our Sustainability strategy, Be Kind unites positive impact programs for its main stakeholders and consolidates initiatives to tackle critical issues, such as climate change, wellness in the workplace, education, misuse of technology, and ethics in AI, among others.
It ensures that Multinational Entities with revenues above EUR 750 million are subject to a 15% effective minimum tax rate in each jurisdiction that operates. 40 Starting on January 2024, Globant will be subject to the Global Minimum Tax regulation. Some of the tax incentives that we benefit from might be adversely affected.
It ensures that Multinational Entities with revenues above EUR 750 million are subject to a 15% effective minimum tax rate in each jurisdiction that operates. Since January 2024, Globant has been subject to the Global Minimum Tax regulation. Some of the tax incentives that we benefit from could be adversely affected.
Clients At Globant, we focus on delivering innovative and high value-added solutions that drive revenues and brand awareness for our clients. We believe that our approach deepens our relationships and leads to additional revenue opportunities.
Our key methodologies and tools are described below. 36 Clients At Globant, we focus on delivering innovative and high value-added solutions that drive revenues and brand awareness for our clients. We believe that our approach deepens our relationships and leads to additional revenue opportunities.
In addition, if the dividend distribution is made out of profits that were not taxed at the distributing entity level, the distribution to nonresidents is subject to a 35% corporate income tax (recapture tax), which is withheld by the company who distributes the dividends.
The 10% withholding is not applicable when the distribution is made between registered economic group members. In addition, if the dividend distribution is made out of profits that were not taxed at the distributing entity level, the distribution to nonresidents is subject to a 35% corporate income tax (recapture tax), which is withheld by the company who distributes the dividends.
We have development centers in North America, Latin America, Europe, Asia and Oceania, where we have established initiatives to promote and assist individuals who wish to join the IT industry. As of December 31, 2024, we had more than 31,000 employees worldwide, and operations through subsidiaries with offices and employees in 32 countries.
We have development centers in North America, Latin America, Europe, the Middle East, Asia and Oceania, where we have established initiatives to promote and assist individuals who wish to join the IT industry. As of December 31, 2025, we had 28,773 employees worldwide, and operations through subsidiaries with offices and employees in 31 countries.
Under the regular taxation regime, the standard corporate income tax rate is 30% for domestic companies. A 25% rate (plus any applicable surcharge and cess) applies for a financial year to domestic companies with total turnover or gross receipts not exceeding INR 4 billion during the specified period (generally, the financial year two years prior to the relevant financial year).
A 25% rate (plus any applicable surcharge and cess) applies for a financial year to domestic companies with total turnover or gross receipts not exceeding INR 4 billion during the specified period (generally, the financial year two years prior to the relevant financial year).
Strategic Acquisitions Since 2008, we have complemented our significant organic growth with strategic acquisitions. The focus of our M&A strategy has been on enhancing relationships with key clients, expanding our technology capabilities, broadening our service offerings, and increasing the reach of our delivery centers worldwide.
The focus of our M&A strategy has been on enhancing relationships with key clients, expanding our technology capabilities, broadening our service offerings, and increasing the reach of our delivery centers worldwide.
Income tax is payable on the net income made in a given fiscal year. Losses incurred during any fiscal year may be carried forward and offset against taxable income obtained during the following five fiscal years. Argentine companies are taxed on their corporate income at a progressive rate ranging between 25% and 35%.
Losses incurred during any fiscal year may be carried forward and offset against taxable income obtained during the following five fiscal years. Corporate income tax is levied at a progressive rate ranging between 25% and 35%.
If the dividend is in excess of the CUFIN account, then the dividend is also taxed at the distributing company level at a rate of 30% on a grossed-up basis with a gross-up factor of 1.4286.
If the dividend is in excess of the CUFIN account, then the dividend is also taxed at the distributing company level at a rate of 30% on a grossed-up basis with a gross-up factor of 1.4286. India Income tax A company resident in India is subject to tax on its worldwide income, unless the income is specifically exempt.
On October 11, 2022, the Argentine Executive Branch created the Investment Promotion Regime for Exports of Knowledge Economy Activities, pursuant to which eligible entities (i.e., entities submitting projects for investments in infrastructure, capital goods and working capital that seek to increase exports through an investment of over $3.0 million), can benefit from an exception to the mandatory repatriation through the FX Market of an amount equal to up to 20% of the foreign currency received as foreign direct investment.
On October 11, 2022, the Argentine Executive Branch created the Investment Promotion Regime for Exports of Knowledge Economy Activities, pursuant to which eligible entities (i.e., entities submitting projects for investments in infrastructure, capital goods and working capital that seek to increase exports through an investment of over $3.0 million), can benefit from the free availability of up to 30% of the foreign currency received from the incremental net exports, which may be used for paying salaries in foreign currency.
The key elements of our strategy for achieving this objective are described below: Grow revenue with existing and new clients We continue to focus on delivering innovative and high value-added solutions that drive revenues for our clients, thereby strengthening our relationships and creating additional revenue opportunities for us.
Key elements of our strategy include the following: Revenue growth We continue to focus on delivering innovative and high value-added solutions that drive revenues for our clients, thereby strengthening our relationships and creating additional revenue opportunities for us.
Minimum alternate tax (MAT) is imposed at a rate of 15% (plus any applicable surcharge and 4% educational cess) on the adjusted book profits of corporations whose tax liability is less than 15% of their book profits.
Minimum alternate tax (MAT) is imposed at a rate of 15% (plus any applicable surcharge and 4% educational cess) on the adjusted book profits of corporations whose tax liability is less than 15% of their book profits. Value-added tax In India, goods and services tax ("GST") is a destination-based consumption tax applicable to the supply of goods or services.
We believe our success in building our client base in one of the most sophisticated and competitive markets for IT services demonstrates the strength of our value proposition, the quality of our execution and the value of our culture of innovation and entrepreneurial spirit. The market opportunity Technology is a fundamental force in shaping business strategies across diverse sectors.
We believe our success in building our client base in one of the most sophisticated and competitive markets for IT services demonstrates the strength of our value proposition, the quality of our execution and the value of our culture of innovation and entrepreneurial spirit.
In addition, we have developed a number of proprietary internal tools that we use to manage our projects, build applications in specific software technologies, and assess software vulnerability. 39 Our registered intellectual property consists of the trademark "Globant" (which is registered in twelve jurisdictions), the trademark "StarMeUp", certain other trademarks related to our service offerings and products, three software patents granted in the United States in favor of our United States subsidiary Globant LLC, a nd three software patents that are granted in the United States in favor of our Spanish subsidiary Globant España S.A .
Our registered intellectual property consists of the trademark "Globant" (which is registered in twelve jurisdictions), the trademark "StarMeUp", certain other trademarks related to our service offerings and products, three software patents granted in the United States in favor of our United States subsidiary Globant LLC, a nd three software patents that are granted in the United States in favor of our Spanish subsidiary Globant España S.A .
It is assumed that the following items are considered capital gains: (a) gains on the transfer of fixed assets owned for more than two years and (b) gains resulting from the receipt of liquidation proceeds of corporations in excess of capital contributed if the corporation existed for at least two years.
Capital gains are subject to tax at a corporate income tax rate of 15%, including (a) gains on the transfer of fixed assets owned for more than two years; and (b) gains resulting from the receipt of liquidation proceeds of corporations in excess of capital contributed if the corporation existed for at least two years.
The income tax law recognizes the effects of inflation on the following items and transactions: (a) depreciation of fixed assets (b) cost on sales of fixed assets (c) sales of capital stock (shares) (d) monetary assets and liabilities and (e) tax loss carryforwards. 41 All types of corporate entities are subject to the tax applicable to Mexican corporations.
The income tax law recognizes the effects of inflation on the following items and transactions: (a) depreciation of fixed assets (b) cost on sales of fixed assets (c) sales of capital stock (shares) (d) monetary assets and liabilities and (e) tax loss carryforwards. Mexican transfer pricing rules are based on the OECD principles.
For example, in Uruguay, where the Free Trade Zone regime benefits us with an almost full tax exemption, our Income Tax Effective Rate increased to 15%. The extent to which different tax incentives will be affected varies significantly. In addition, countries may use the opportunity of the introduction of the OECD Global Minimum Tax to remove those tax incentives.
For example, in Uruguay, where the Free Trade Zone regime benefits us with an almost full tax exemption, our Income Tax Effective Rate increased to 15% following the implementation of a domestic top-up tax in 2025.The extent to which different tax incentives will be affected varies significantly.
Depending on whether the Easter holiday falls in March or April of a given year, the effect on our revenues and profitability can appear either in the first or second quarter of that year.
Depending on whether the Easter holiday falls in March or April of a given year, the effect on our revenues and profitability can appear either in the first or second quarter of that year. Our revenues derived from our GUT Studio are typically much higher towards the fourth fiscal quarter due to the holiday season.
There is no standard rate per se, but the rate for most services is 18%. 42 Tax on dividends Argentina In Argentina, dividends resulting from profits obtained since and including fiscal year 2018 that are paid to Non-Argentine Beneficiaries or Argentine resident individuals are subject to a 7% income tax withholding on the amount of such dividends.
Tax on dividends In Argentina, dividends resulting from profits obtained since and including fiscal year 2018 that are paid to Non-Argentine Beneficiaries or Argentine resident individuals are subject to a 7% income tax withholding.
Selectively pursue strategic acquisitions In building on our track record of successfully acquiring and integrating complementary companies, we will continue to selectively pursue strategic acquisition opportunities that deepen our relationships with key clients, extend our technology capabilities, broaden our service offerings and expand the geographic footprint of our delivery centers that will enhance our ability to serve our clients. 28 Competitive Strengths We believe the following strengths differentiate Globant and create the foundation for continued rapid growth in revenues and profitability: Deep domain expertise across industries, in emerging technologies and related market trends We have deep domain expertise across industries, in emerging technologies and in related market trends.
Selectively pursue strategic acquisitions In building on our track record of successfully acquiring and integrating complementary companies, we will continue to selectively pursue strategic acquisition opportunities that deepen our relationships with key clients, extend our technology capabilities, broaden our service offerings and expand the geographic footprint of our delivery centers that will enhance our ability to serve our clients.
We believe that the principal competitive factors in our business include: the ability to innovate; technical expertise and industry knowledge; end-to-end solution offerings; reputation and track record for high-quality and on-time delivery of work; effective employee recruiting; training and retention; responsiveness to clients' business needs; scale; financial stability; and price.
Key competitive factors in our business include: innovation capabilities; technical expertise and industry knowledge; breadth of services offerings; reputation and track record for high-quality and on-time delivery work; effective employee recruiting; training and retention; responsiveness to client needs; scale; financial resources; and pricing.
Today, we are a publicly-traded company, with our common shares listed on the NYSE under the ticker symbol “GLOB”. We continue to maintain the entrepreneurial spirit of our founders throughout our business.
Business Overview Our Services Established in 2003 by four entrepreneurs in Argentina, we have evolved to become a leading global technology service provider. Today, we are a publicly-traded company, with our common shares listed on the NYSE under the ticker symbol “GLOB”. We continue to maintain the entrepreneurial spirit of our founders throughout our business.
These relationships have driven our growth and have enabled us to engage with new clients. Global delivery with access to deep talent pool A key element of our strategy is to expand our delivery footprint, including increasing the number of employees that work onsite at our clients or near client locations.
Global delivery with access to deep talent pool We have built a strong foundation with respect to our delivery footprint, and as a key element of our strategy, we continue to focus on expanding our delivery footprint, including increasing the number of employees that work onsite at our clients or near client locations.
Gartner’s Magic Quadrant placed us as a Worldwide Challenger in Custom Software Development Services, while Everest Group identified us as a Major Contender in both Digital Transformation Consulting Services and Software Product Engineering Services. Additionally, IDC positioned us as a Major Player in Worldwide Experience Design & Build Services for 2023–2024.
During 2023, we were named a Worldwide Leader in both AI Services and Software Engineering Services according to IDC MarketScape vendor assessments. Gartner’s Magic Quadrant placed us as a Worldwide Challenger in Custom Software Development Services, while Everest Group identified us as a Major Contender in both Digital Transformation Consulting Services and Software Product Engineering Services.
The demand for digital transformation services is expected to accelerate significantly in the coming years. Industry experts have identified several key trends that will dominate the technological landscape and influence business operations.
The demand for digital transformation services is expected to increase as organizations continue to invest in technology. Industry experts have identified several key trends that are expected to dominate the technological landscape and influence demand for digital transformation services in the coming years, including the following: • Cloud IT Services Growth.
Remittance into an EEFC account is subject to the condition that the sum total of the accruals in the account during a calendar month should be converted into rupees on or before the last day of the succeeding calendar month, after adjusting for utilization of the balances for approved purposes or forward commitments. 44 Data Protection We collect, store, process, use and transfer personal data and other sensitive information, and, therefore, we are subject to laws and regulations related to security and privacy, in addition to other numerous, and sometimes conflicting, legal requirements.
Remittance into an EEFC account is subject to the condition that the sum total of the accruals in the account during a calendar month should be converted into rupees on or before the last day of the succeeding calendar month, after adjusting for utilization of the balances for approved purposes or forward commitments.
Central GST ("CGST") and state GST ("SGST") are imposed simultaneously on a common tax base on all intrastate transactions. In the case of interstate supplies of goods and services, integrated GST ("IGST") applies at a rate that is an aggregate of CGST and SGST.
In the case of interstate supplies of goods and services, integrated GST ("IGST") applies at a rate that is an aggregate of CGST and SGST. The general tax rate applicable to most services is 18%.
Globant GUT Network: This network empowers our clients to better connect their brands to end-consumers through remarkable experiential marketing. Using the latest technology, including AI, our teams turn data into insights and actions to obtain great results for our clients through the following Studios: Strategy, Advertising, Content and Social, Full Funnel Media, Martech, Design, Product, and Commerce. 29 3.
Using the latest technology, including AI, our teams turn data into insights and actions to obtain great results for our clients through the following Studios: Strategy, Advertising, Content and Social, Full Funnel Media, Martech, Design, Product, and Commerce. • Enterprise Studio: leverages tailored technology for streamlined operations and productivity at scale.
Also, we were named in Fortune’s list of the 100 Fastest-Growing Companies and received recognition as a finalist on Fast Company’s List of the 100 Best Workplaces for Innovators International 2023. Lastly, we were recognized by Brand Finance as the Fastest Growing IT Brand and the 5th strongest IT brand globally.
Additionally, IDC positioned us as a Major Player in Worldwide Experience Design & Build Services for 2023–2024. Also, we were named in Fortune’s list of the 100 Fastest-Growing Companies and received recognition as a finalist on Fast Company’s List of the 100 Best Workplaces for Innovators International 2023.
Companies must meet the conditions under Section 10AA of Income Tax Act to be eligible for the benefit. Other tax benefits are also available for registered special economic zone ("SEZ") companies. Some locations of our Indian subsidiary are located in a SEZ and have completed the SEZ registration process. Consequently, we started receiving the tax benefit on August 2, 2017.
Some locations of our Indian subsidiary are located in a SEZ and have completed the SEZ registration process. Consequently, we started receiving the tax benefit on August 2, 2017.
Global Minimum Tax The Global Minimum Tax was introduced by the Global Anti-Base Erosion (GloBE) Rules and is a key part of the two-pillar solution agreed by over 135 member jurisdictions of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (Inclusive Framework on BEPS) in October 2021.
See " Business Overview — Government Support and Incentives " and " Risk Factors — Changes in the tax laws or in their interpretation or enforcement or the loss of any country-specific tax benefits could have a material adverse effect on our financial condition and results of operations". 41 Global Minimum Tax The Global Minimum Tax was introduced by the Global Anti-Base Erosion (GloBE) Rules and is a key part of the two-pillar solution agreed by over 135 member jurisdictions of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (Inclusive Framework on BEPS) in October 2021.
We undertake periodic reviews to identify existing clients that we believe are of strategic importance based on, among other things, the amount of revenue we generate from the client, as well as the growth potential and brand recognition that the client provides.
We undertake periodic reviews to identify existing clients that we believe are of strategic importance based on, among other things, the amount of revenue we generate from the client, as well as the growth potential and brand recognition that the client provides. 38 Marketing To fully implement a digital and cognitive transformation, we also help our customers stay relevant within their industries and audiences by providing helpful information and initiatives to understand their users’ environment, competitors and behavior.
India In India, goods and services tax ("GST") is a destination-based consumption tax applicable to the supply of goods or services. GST also is a part of the aggregate customs duty imposed on imports. Exports and supplies to SEZs are zero-rated suppliers for GST purposes.
GST also is a part of the aggregate customs duty imposed on imports. Exports and supplies to SEZs are zero-rated supplies for GST purposes. Central GST ("CGST") and state GST ("SGST") are imposed simultaneously on a common tax base on all intrastate transactions.
For the past ten years, Globant has been committed to investing in AI. This long-term focus has enabled us to increase our service and product offerings, and support our clients with expertise in the area.
Lastly, IDC MarketScape recognized us as a Leader in both Worldwide Experience Design Services and Worldwide Experience Build Services. For more than eleven years, we have been committed to investing in AI. This long-term investment has enabled us to increase our service and product offerings and support our clients with expertise in the area.
Mexico In Mexico VAT is levied upon the supply of goods and independent services provided in Mexico, the importation of goods and services and the grant of temporary use or the enjoyment of goods within Mexican territory. VAT is calculated by "cash basis" for each calendar month as a definitive tax.
Valued-added tax In Mexico VAT is levied upon, among others, the supply and importation of goods and independent services. VAT is calculated by "cash basis" for each calendar month as a definitive tax. The standard tax rate is 16%; provided that certain transactions, such as the sale of shares are exempted from the VAT.
We will continue to target new clients by leveraging our engineering, design and innovation capabilities and our deep understanding of emerging technologies and industries. We will focus on building our brand in order to further penetrate our existing and target markets where there is a strong demand for our knowledge and services.
We will focus on building our brand in order to further penetrate our existing and target markets where there is a strong demand for our knowledge and services. 34 Continue focusing on AI, emerging technologies and digital transformation Our Studios deliver software solutions through the use of our expertise across industries, in emerging technologies and in related market trends.
Companies are increasingly seeking external expertise to drive their product development processes, particularly as they look to innovate in digital and physical domains. This growing demand emphasizes the need for consulting firms to offer tailored solutions that address the complexities of modern product engineering challenges.
This growing demand emphasizes the need for consulting firms to offer tailored solutions that address the complexities of modern product engineering challenges. As organizations address evolving technology requirements, they may increasingly engage external service providers to support their digital transformation initiatives.
Our clients include leading global companies such as The Walt Disney Company, which was among our top clients in the year ended December 31, 2024. Additionally, for the year ended December 31, 2024, 93.7% of our revenues came from existing clients who engaged our services in the prior year.
Additionally, for the year ended December 31, 2025, 2024 and 2023, 96.0%, 93.7% and 89.6% of our revenues, respectively, came from existing clients who engaged our services in the prior year.
Digital Evolution Network: This network enhances efficiency and accelerates breakthroughs by integrating AI into the software development lifecycle. The Studios within this network are comprised of AI, Connected Experiences, Cybersecurity, Data, Immersive Experiences, Quality Engineering, Robotics, Engineering, CloudOps, Blockchain, Business Hacking, Cultural Hacking & Agility, Fast Code, Internet of Things, Digital Twin, Payments, Legal AI, Sustainable Business and Loyalty. 4.
The capacities within this Studio are comprised of AI, Connected Experiences, Cybersecurity, Data, Immersive Experiences, Quality Engineering, Robotics, Engineering, CloudOps, Blockchain, Business Hacking, Cultural Hacking and Agility, Fast Code, Internet of Things, Digital Twin, Payments, Legal AI, Sustainable Business and Loyalty. • GUT Studio: empowers our clients to better connect their brands to end-consumers through remarkable experiential marketing.
By concentrating on AI agents, we enhance our capacity to deliver innovative solutions that seamlessly align with the distinct requirements of each industry, making technology more intelligent and responsive. In July 2014, we completed the initial public offering of our common shares in the United States.
By concentrating on AI agents, we enhance our capacity to deliver innovative solutions that seamlessly align with the distinct requirements of each industry, making technology more intelligent and responsive. Capital Expenditures Our capital expenditures for the years ended December 31, 2025, 2024 and 2023 amounted to $89.5, $110.7 and $126.5 millions, respectively.
In 2024, we continued to receive recognitions, being named a Leader in Media Consultation, Integration, and Business Operations Cloud Service Providers by the IDC MarketScape report. Additionally, we received the Google Cloud Industry Solution Services Partner of the Year Award for Media and Entertainment for the second consecutive year.
Lastly, we were recognized by Brand Finance as the Fastest Growing IT Brand and the 5th strongest IT brand globally. In 2024, we continued to receive recognitions, being named a Leader in Media Consultation, Integration, and Business Operations Cloud Service Providers by the IDC MarketScape report.
See "Risk Factors — Risks Related to Our Global Operations — Our business, results of operations and financial condition may be adversely affected by the various conflicting and/or onerous legal and regulatory obligations required in the countries where we operate" and "If we are faced with immigration or work permit restrictions in any country where we currently have personnel onsite at a client location or would like to expand our delivery footprint, then our business, results of operations and financial condition may be adversely affected".
See " Risk Factors — Risks Related to Our Global Operations — Our business, results of operations and financial condition may be adversely affected by the various conflicting and/or onerous legal and regulatory obligations required in the countries where we operate ". 45 Labor and Employment We are subject to a variety of national and local labor laws including, employee health safety, wages and benefits laws, immigration, independent contractors regulations and outsourcing.
By 2026, 70% of organizations are expected to emphasize the outcomes facilitated by AI, reflecting a broader shift in corporate priorities. • Investment in Product Engineering Services: IDC forecasts that spending on product engineering and operational technology services will grow from $183 billion in 2023 to $350.7 billion by 2028.
This anticipated trend highlights a move towards outcome-focused AI implementations that prioritize business results over technology. By 2026, 70% of organizations are expected to emphasize the outcomes facilitated by AI, reflecting a broader shift in corporate priorities. • Investment in Product Engineering Services.
Of particular note is the significant growth of generative AI capabilities, which is expected to represent 25% of all AI services engagements by 2028, according to Gartner. This anticipated trend highlights a move towards outcome-focused AI implementations that prioritize business results over technology.
Gartner projects that the market for AI services may reach approximately $609 billion by 2028, with a CAGR of 21.4%. Of particular note is the significant growth of generative AI capabilities, which according to Gartner is expected to represent 25% of all AI services engagements by 2028.
We believe our Studios foster creativity and innovation, while allowing us to build, enhance and consolidate expertise around a variety of emerging technologies and industries.
In 2009, we introduced our Studio model to deliver tailored solutions focused on specific challenges and improving the connection between organizations and their customers and employees. These Studios are intended to foster creativity and innovation, while allowing us to build, enhance and consolidate expertise around a variety of emerging technologies and industries.
During 2024, 2023 and 2022, our ten largest clients based on revenues accounted for 29.3%, 32.0% and 35.6% of our revenues, respectively.
During 2025, 2024 and 2023, our ten largest clients based on revenues accounted for 29.2%, 29.3% and 32.0% of our revenues, respectively. Our top client for the years ended December 31, 2025, 2024 and 2023, The Walt Disney Company, accounted for 8.7% of our revenues in each such year.
Furthermore, we were honored by the Council of the Americas with the BRAVO Company of the Decade Award for our remarkable growth and transformative efforts in reinventing the professional services industry. Lastly, we were recognized by Everest Group as a Star Performer and Leader in the Software Product Engineering Services PEAK Matrix® Assessment 2024.
We also ranked 6th on Fortune’s 2024 Change the World list out of an initial 250 companies for our overall sustainability commitment. Furthermore, we were honored by the Council of the Americas with the BRAVO Company of the Decade Award for our remarkable growth and transformative efforts in reinventing the professional services industry.
Colombia In Colombia, VAT is an indirect national tax levied on (i) services rendered in Colombia and from abroad; (ii) sales and imports of physical movable goods; (iii) sales or transfers of intangible assets related to industrial property; and (iv) gambling sales and operations, except for lotteries and online gambling.
Valued-added tax In Colombia, VAT is an indirect national tax levied on, among others (i) services rendered in Colombia and from abroad; and (ii) sales or transfers of intangible assets related to industrial property. The general tax rate is 19%. Tax on dividends In Colombia, distributions to foreign companies or nonresidents are subject to taxation at a rate of 20%.
Later in 2022, we partnered with La Liga, Spain’s top-flight soccer league, to establish a new global technology company aimed at transforming the sports and entertainment industry. In 2023, we further expanded our North American footprint and enhanced our healthcare solutions services by acquiring ExperienceIT, a U.S.-based consultancy with deep healthcare expertise.
Our recent key acquisitions are as follows: In 2023, we further expanded our North American footprint and enhanced our healthcare solutions services by acquiring ExperienceIT, a U.S.-based consultancy with deep healthcare expertise.
India Dividends paid to an Indian resident generally are subject to a withholding tax of 10%; the rate is temporarily reduced to 7.5% for dividends paid during the period from May 14, 2020 through March 31, 2021. As of April 1, 2020, dividends paid to a nonresident are generally subject to a withholding tax of 20%.
Tax on dividends Dividends paid to an Indian resident are generally subject to a withholding tax at the rate of 10%, and dividends paid to a nonresident are subject to withholding tax at the rate of 20%.
Globant X: Globant X stands as our AI products and services arm, where we transform the business operations of our clients through our AI platforms, stimulating their growth potential and helping them upgrade their business.
Development of products and platforms Through Globant Enterprise AI (GEAI), among other offerings, we will continue to focus on expanding our product and platform offerings to keep transforming the business operations of our clients, stimulating their growth potential and helping them to improve their business and operations.
Mexican transfer pricing rules are based on the OECD principles. India A company resident in India is subject to tax on its worldwide income, unless the income is specifically exempt. A company that does not reside in India is subject to Indian tax on Indian-sourced income and on income received in India.
A company that does not reside in India is subject to Indian tax on Indian-sourced income and on income received in India. Under the regular taxation regime, the standard corporate income tax rate is 30% for domestic companies.
Business and Tech trends We currently find ourselves at the forefront of a technological movement that we expect to redefine society’s interaction with the digital world. The expected technological advancements signify not merely technical innovations but rather a transformative shift towards a more intuitive and seamless technological environment that will be integrated in our daily lives.
The expected technological advancements signify not merely technical innovations but rather a transformative shift towards a more intuitive and seamless technological environment that will be integrated into business operations and daily lives. 33 AI is quickly evolving and increasingly becoming more deeply embedded across enterprise processes and everyday experiences.
AI is quickly evolving and increasingly becoming more prevalent in our daily lives. This progression heralds a future characterized by revolutionary innovation and a more connected, human-centric technological landscape.
This progression heralds a future characterized by revolutionary innovation and a more connected, human-centric technological landscape. Based on industry research, several technology trends may significantly shape the landscape in the near term, including: • Agentic AI.
Through organic growth and strategic acquisitions, we have expanded our network of locations and are now present in 32 countries. Organizations such as Endeavor, IDC MarketScape, Gartner, Everest Group, Frost & Sullivan, Great Place to Work, Fortune and Fast Company have recognized our accomplishments.
Organizations such as Endeavor, IDC MarketScape, Gartner, Everest Group, Frost & Sullivan, Great Place to Work, Fortune and Fast Company have recognized our accomplishments. The Massachusetts Institute of Technology, Harvard University and Stanford University in conjunction with the World Economic Forum have utilized Globant as a business-school case study in entrepreneurship.
Globant Enterprise AI, a sophisticated orchestration software that integrates and manages all AI Agents, serves as a great example of our constant evolution. It offers full traceability of AI-driven processes, providing transparency, accountability, and the ability to monitor and adapt strategies in real time.
It offers full traceability of AI-driven processes, providing transparency, accountability, and the ability to monitor and adapt strategies in real time. It is key in supporting our AI Studios, allowing us to deliver robust, flexible, and scalable AI solutions to enterprises worldwide.
Enterprise Network: This network leverages tailored technology for streamlined operations and productivity at scale. We provide customers with the end-to-end business process transformation services they need to prepare their entire organization for reinvention. The Studios within this network consist of SAP, ServiceNow, Salesforce, Oracle, AWS, Adobe, Google Cloud, Microsoft and Process Optimization.
We provide customers with the end-to-end business process transformation services they need to prepare their entire organization for reinvention.
Since then, we have completed five follow-on offerings in the United States, with the most recent offering in May 2021. Key Milestones In 2021, we established Globant X, our products and platforms division built to ignite growth and enhance digital transformation through AI and next-gen technologies.
In July 2014, we completed the initial public offering of our common shares in the United States. Since then, we have completed five follow-on offerings in the United States, with the most recent offering in May 2021.

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Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeOur non-IFRS measures of adjusted diluted EPS and adjusted net income exclude the impact of certain items, such as acquisition-related charges, impairment of assets, net of recoveries, share-based compensation expense and the tax effects of non-IFRS adjustments. 53 Year ended December 31, 2024 2023 2022 Reconciliation of adjusted gross profit Gross profit $ 863,367 $ 755,761 $ 669,395 Adjustments Depreciation and amortization expense 36,034 28,597 23,312 Share-based compensation expense - Equity settled 23,937 15,155 4,917 Adjusted gross profit $ 923,338 $ 799,513 $ 697,624 Reconciliation of adjusted selling, general and administrative expenses Selling, general and administrative expenses $ (632,995) $ (537,075) $ (456,324) Adjustments Depreciation and amortization expense 100,181 85,584 62,822 Share-based compensation expense - Equity settled 58,833 57,016 50,296 Acquisition-related charges, net (1) 28,733 21,092 13,612 Adjusted selling, general and administrative expenses $ (445,248) $ (373,383) $ (329,594) Reconciliation of adjusted profit from operations Profit from operations $ 225,418 $ 198,962 $ 206,707 Adjustments Share-based compensation expense - Equity settled 82,770 72,171 55,213 Acquisition-related charges, net (1) 63,231 46,993 27,456 Adjusted profit from operations $ 371,419 $ 318,126 $ 289,376 Reconciliation of adjusted net income for the year Net income for the year $ 165,732 $ 158,538 $ 148,891 Adjustments Share-based compensation expense - Equity settled 82,618 72,099 55,213 Acquisition-related charges, net (1) 71,895 48,205 28,765 Tax effects of non-IFRS adjustments (34,819) (28,724) (15,146) Adjusted net income for the year $ 285,426 $ 250,118 $ 217,723 Calculation of adjusted diluted EPS Adjusted net income 285,426 250,118 217,723 Diluted shares 44,589 43,594 42,855 Adjusted diluted EPS 6.40 5.74 5.08 IFRS data: Gross profit margin percentage 35.7 % 36.1 % 37.6 % Profit from operations margin percentage 9.3 % 9.5 % 11.6 % Diluted EPS 3.72 3.64 3.47 Other data: Adjusted gross profit 923,338 799,513 697,624 Adjusted gross profit margin percentage 38.2 % 38.1 % 39.2 % Adjusted selling, general and administrative expenses (445,248) (373,383) (329,594) Adjusted selling, general and administrative expenses margin percentage (18.4) % (17.8) % (18.5) % Adjusted profit from operations 371,419 318,126 289,376 Adjusted profit from operations margin percentage 15.4 % 15.2 % 16.3 % Adjusted net income for the year 285,426 250,118 217,723 Adjusted net income margin percentage for the year 11.8 % 11.9 % 12.2 % 54 (1) Acquisition-related charges include, when applicable, amortization of purchased intangible assets included in depreciation and amortization expense line on our consolidated statement of comprehensive income, interest charges on acquisition-related indebtedness, external deal costs, acquisition-related retention bonuses, integration costs, changes in the fair value of contingent consideration liabilities, charges for impairment of acquired intangible assets and other acquisition-related costs .
Biggest changeOur non-IFRS measures of adjusted diluted EPS and adjusted net income exclude the impact of certain items, such as acquisition-related charges, share-based compensation expense, business optimization costs and the tax effects of non-IFRS adjustments. 54 Year ended December 31, 2025 2024 2023 Reconciliation of adjusted gross profit Gross profit $ 859,291 $ 863,367 $ 755,761 Adjustments Depreciation and amortization expense 44,719 36,034 28,597 Share-based compensation expense - Equity settled 27,279 23,937 15,155 Adjusted gross profit $ 931,289 $ 923,338 $ 799,513 Reconciliation of adjusted selling, general and administrative expenses Selling, general and administrative expenses $ (629,332) $ (632,995) $ (537,075) Adjustments Depreciation and amortization expense 116,422 100,181 85,584 Share-based compensation expense - Equity settled 50,453 58,833 57,016 Acquisition-related charges, net (1) 21,300 28,733 21,092 Adjusted selling, general and administrative expenses $ (441,157) $ (445,248) $ (373,383) Reconciliation of adjusted profit from operations Profit from operations $ 171,732 $ 225,418 $ 198,962 Adjustments Share-based compensation expense - Equity settled 77,732 82,770 72,171 Acquisition-related charges, net (1) 71,818 63,231 46,993 Business optimization costs (2) 51,990 — — Adjusted profit from operations $ 373,272 $ 371,419 $ 318,126 Reconciliation of adjusted net income for the year Net income for the year $ 102,918 $ 165,732 $ 158,538 Adjustments Share-based compensation expense - Equity settled 76,529 82,618 72,099 Acquisition-related charges, net (1) 97,334 71,895 48,205 Business optimization costs (2) 50,876 — — Tax effects of non-IFRS adjustments (51,426) (34,819) (28,724) Adjusted net income for the year $ 276,231 $ 285,426 $ 250,118 Calculation of adjusted diluted EPS Adjusted net income 276,231 285,426 250,118 Diluted shares 45,005 44,589 43,594 Adjusted diluted EPS 6.14 6.40 5.74 IFRS data: Gross profit margin percentage 35.0 % 35.7 % 36.1 % Profit from operations margin percentage 7.0 % 9.3 % 9.5 % Diluted EPS 2.29 3.72 3.64 Other data: Adjusted gross profit 931,289 923,338 799,513 Adjusted gross profit margin percentage 37.9 % 38.2 % 38.1 % Adjusted selling, general and administrative expenses (441,157) (445,248) (373,383) Adjusted selling, general and administrative expenses margin percentage (18.0) % (18.4) % (17.8) % Adjusted profit from operations 373,272 371,419 318,126 Adjusted profit from operations margin percentage 15.2 % 15.4 % 15.2 % Adjusted net income for the year 276,231 285,426 250,118 Adjusted net income margin percentage for the year 11.3 % 11.8 % 11.9 % 55 (1) 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, charges for impairment of acquired intangible assets and other acquisition-related costs .
Most RSUs and PRSUs under the plan were granted with a vesting period of four years, 25% becoming exercisable on or about each anniversary of the grant date. Share-based compensation expense for awards of equity instruments is determined based on the fair value of the awards as of the grant date.
Most RSUs and PRSUs under the plan were granted with a vesting period of four years, 25% becoming exercisable on or about each anniversary of the grant date. Share-based compensation expense for awards of equity instruments is determined based on the fair value of the awards as of the grant date.
Revenues consist of technology services revenues and reimbursable expenses, which primarily include travel and out-of-pocket costs that are billable to clients. 47 Revenues by Contract type We perform our services primarily under time-and-material contracts and, to a lesser extent, fixed-price contracts. The remaining portion of our revenues in each year was derived from other types of contracts.
Revenues consist of technology services revenues and reimbursable expenses, which primarily include travel and out-of-pocket costs that are billable to clients. Revenues by Contract type We perform our services primarily under time-and-material contracts and, to a lesser extent, fixed-price contracts. The remaining portion of our revenues in each year was derived from other types of contracts.
For further discussion of the 2014 Equity Incentive Plan, see “ Compensation —Equity Compensation Arrangements". 2024 Equity Incentive Plan On July 2, 2024, our board of directors approved and adopted the 2024 Equity Incentive Plan, pursuant to which we may issue stock awards up to an aggregate amount of 2,000,000 common shares.
For further discussion of the 2014 Equity Incentive Plan, see “ Compensation —Equity Compensation Arrangements". 2024 Equity Incentive Plan On July 2, 2024, our board of directors approved and adopted the Company's 2024 Equity Incentive Plan (the "2024 Equity Incentive Plan"), pursuant to which we may issue stock awards up to an aggregate amount of 2,000,000 common shares.
See “ Information on the Company — Business overview. — Facilities and Infrastructure .”Our integrated global delivery platform allows us to deliver our services through a blend of onsite and offsite methods.
See “ Information on the Company — Business overview. — Facilities and Infrastructure .” Our integrated global delivery platform allows us to deliver our services through a blend of onsite and offsite methods.
Trend Information See " Operating Results — Factors Affecting Our Results of Operations ." Other than as disclosed in this report, we are not aware of any trends, uncertainties, demands, commitments, or events since December 31, 2024 that are reasonably likely to have a material adverse effect on our revenues, income, profitability, liquidity, or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future operating results or financial conditions.
Trend Information See " Operating Results — Factors Affecting Our Results of Operations ." Other than as disclosed in this report, we are not aware of any trends, uncertainties, demands, commitments, or events since December 31, 2025 that are reasonably likely to have a material adverse effect on our revenues, income, profitability, liquidity, or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future operating results or financial conditions.
Until 2022, restricted stock units were granted between 40% and 50% in the form of PRSUs and between 50% and 60% in the form of RSUs, and from 2022 all PRSUs and RSUs are granted on a 50% basis each.
Until 2022, restricted stock units were granted between 40% and 50% in the form of PRSUs and between 50% and 60% in the form of RSUs, and from 2022 all PRSUs and RSUs were granted on a 50% basis each.
See “ Information on the Company - Business overview — Seasonality .” Our results of operations are expected to benefit from government policies and regulations, see " Information of the Company - Business Overview — Government Support and Incentives ." Certain Income Statement Line Items 2024 Compared to 2023 Revenues Revenues are derived primarily from providing technology services to our clients, which are medium to large-sized companies globally.
See “ Information on the Company - Business overview — Seasonality .” Our results of operations are expected to benefit from government policies and regulations, see " Information of the Company - Business Overview — Government Support and Incentives ." Certain Income Statement Line Items 2025 Compared to 2024 Revenues Revenues are derived primarily from providing technology services to our clients, which are medium to large-sized companies globally.
In addition, these non-IFRS measures address questions we routinely receive from analysts and investors and, in order to assure that all investors have access to similar data, we have determined that it is appropriate to make this data available to all investors. 52 Adjusted Gross Profit and Adjusted SG&A Expenses We utilize non-IFRS measures of adjusted gross profit and adjusted SG&A expenses as supplemental measures for period-to-period comparisons.
In addition, these non-IFRS measures address questions we routinely receive from analysts and investors and, in order to assure that all investors have access to similar data, we have determined that it is appropriate to make this data available to all investors. 53 Adjusted Gross Profit and Adjusted SG&A Expenses We utilize non-IFRS measures of adjusted gross profit and adjusted SG&A expenses as supplemental measures for period-to-period comparisons.
The 2014 Equity Incentive Plan expired on the close of business on July 2, 2024 (the “2014 Equity Incentive Plan Termination Date”) and no awards were or will be granted under the plan after such date; provided that, subject to the applicable provisions of the 2014 Equity Incentive Plan, all outstanding awards that were subject to being satisfied or terminated under the plan as of the 2014 Equity Incentive Plan Termination Date, will remain outstanding in accordance with the terms of the 2014 Equity Incentive Plan.
The 2014 Equity Incentive Plan expired on July 2, 2024 (the “2014 Equity Incentive Plan Termination Date”) and no awards were or will be granted under the plan after such date; provided that, subject to the applicable provisions of the 2014 Equity Incentive Plan, all outstanding awards that were subject to being satisfied or terminated under the plan as of the 2014 Equity Incentive Plan Termination Date, will remain outstanding in accordance with the terms of the 2014 Equity Incentive Plan.
Research and Development, Patents and Licenses, etc. See “ Information of the company - Business Overview — Intellectual Property .” D.
Research and Development, Patents and Licenses, etc. See “ Information of the company - Business Overview — Intellectual Property .” 60 D.
Income Tax Expense See " Consolidated Financial Statements as of December 31, 202 4 and December 31, 202 3 and for each of the three years in the period ended December 31, 202 4 — Summary of Significant Accounting Policies — Taxation —Current Income Tax ".
Income Tax Expense See " Consolidated Financial Statements as of December 31, 202 5 and December 31, 202 4 and for each of the three years in the period ended December 31, 202 5 — Summary of Significant Accounting Policies — Taxation —Current Income Tax ".
Contractual Obligations Set forth below is information concerning our fixed and determinable contractual obligations as of December 31, 2024 and the effect such obligations are expected to have on our liquidity and cash flows.
Contractual Obligations Set forth below is information concerning our fixed and determinable contractual obligations as of December 31, 2025 and the effect such obligations are expected to have on our liquidity and cash flows.
Liquidity and Capital Resources, in our Annual Report on Form 20-F for the fiscal year ended December 31, 2023, which was filed with the SEC on February 29, 2024. Future Capital Requirements Our ability to generate cash is subject to our performance, general economic conditions, industry trends and other factors.
Liquidity and Capital Resources, in our Annual Report on Form 20-F for the fiscal year ended December 31, 2024, which was filed with the SEC on February 28, 2025. Future Capital Requirements Our ability to generate cash is subject to our performance, general economic conditions, industry trends and other factors.
E. Critical Accounting Estimates See note 4 to our audited consolidated financial statements for the year ended December 31, 2024.
E. Critical Accounting Estimates See note 4 to our audited consolidated financial statements for the year ended December 31, 2025.
Adjusted profit from operations is most directly comparable to the IFRS measure of profit from operations. Adjusted profit from operations excludes the impact of certain items, such as share-based compensation expense and acquisition-related charges.
Adjusted profit from operations is most directly comparable to the IFRS measure of profit from operations. Adjusted profit from operations excludes the impact of certain items, such as share-based compensation expense, acquisition-related charges and business optimization costs.
Net Income for the Year As a result of the foregoing, we had a net income of $169.0 million for 2024, compared to $158.5 million for 2023. 2023 Compared to 2022 For discussion related to our financial condition, changes in financial condition, and the results of operations for 2023 compared to 2022, refer to Part I, Item 5.
Net Income for the Year As a result of the foregoing, we had a net income of $104.0 million for 2025, compared to $169.0 million for 2024. 2024 Compared to 2023 For discussion related to our financial condition, changes in financial condition, and the results of operations for 2024 compared to 2023, refer to Part I, Item 5.
If we raise cash through the issuance of indebtedness, we may be subject to additional contractual restrictions on our business. Currently, Globant LLC is a party to the Fourth A&R Credit Agreement with certain financial institutions listed therein, as lenders and HSBC Bank USA, N.A., as administrative agent, issuing bank and swingline lender.
If we raise cash through the issuance of indebtedness, we may be subject to additional contractual restrictions on our business. Currently, Globant LLC is a party to the Amendment No. 1to the Fourth Amended and Restated Credit Agreement with certain financial institutions listed therein, as lenders and HSBC Bank USA, N.A., as administrative agent, issuing bank and swingline lender.
The ESPP provides such eligible employees with an opportunity to acquire a proprietary interest in the Company through the purchase of the Company’s common shares payable by means of payroll deductions. As of December 31, 2024, we have delivered 140,246 common shares under the plan. For further discussion of the ESPP, see “ Employees —2021 Employee Stock Purchase Plan". C.
The ESPP provides such eligible employees with an opportunity to acquire a proprietary interest in the Company through the purchase of the Company’s common shares payable by means of payroll deductions. As of December 31, 2025, we have delivered 222,864 common shares under the plan. For further discussion of the ESPP, see “ Employees —2021 Employee Stock Purchase Plan". C.
We believe that the most significant factors affecting our results of operations include: • market demand for integrated engineering, design and innovation technology services relating to emerging technologies and related market trends; • economic conditions in the industries and countries in which our clients operate and their impact on our clients' spending on technology services; • our ability to continue to innovate and remain at the forefront of emerging technologies and related market trends; • expansion of our service offerings and success in cross-selling new services to our clients; • our ability to obtain new clients, increase penetration levels with our existing clients and continue to add value for our existing clients so as to create long-term relationships; • the availability of, and our ability to attract, retain and efficiently utilize, skilled IT professionals in 32 countries where we are present; • operating costs in countries where we operate; • capital expenditures related to the opening of new delivery centers and client management locations and improvement of existing offices; • our ability to increase our presence onsite at client locations; • the effect of wage inflation in countries where we operate and the variability in foreign exchange rates, especially relative changes in exchange rates between the U.S. dollar and local currencies, mainly in Latin America; • our ability to identify, integrate and effectively manage businesses that we may acquire; and • evolving market for products with AI capabilities. 46 Our results of operations in any given period are directly affected by the following additional company-specific factors: • Pricing of, and margin on, our services and revenue mix.
We believe that the most significant factors affecting our results of operations include: • market demand for integrated engineering, design and innovation technology services relating to emerging technologies and related market trends; • economic conditions in the industries and countries in which our clients operate and their impact on our clients' spending on technology services; • our ability to continue to innovate and remain at the forefront of emerging technologies and related market trends; • expansion of our service offerings and success in cross-selling new services to our clients; • our ability to obtain new clients, increase penetration levels with our existing clients and continue to add value for our existing clients so as to create long-term relationships; • the availability of, and our ability to attract, retain and efficiently utilize, skilled IT professionals in 31 countries where we are present; • operating costs in countries where we operate; • capital expenditures related to the opening of new delivery centers and client management locations and improvement of existing offices; • our ability to increase our presence onsite at client locations; • the effect of wage inflation in countries where we operate and the variability in foreign exchange rates, especially relative changes in exchange rates between the U.S. dollar and local currencies, mainly in Latin America; • our ability to identify, integrate and effectively manage businesses that we may acquire; and • evolving market for products with AI capabilities.
Operating and Financial Review and Prospects, in our Annual Report on Form 20-F for the fiscal year ended December 31, 2023, which was filed with the SEC on February 29, 2024.
Operating and Financial Review and Prospects, in our Annual Report on Form 20-F for the fiscal year ended December 31, 2024, which was filed with the SEC on February 28, 2025.
The increase of finance expense up to $32.2 million for the year ended December 31, 2024 from $23.8 million for the year ended December 31, 2023 was due to an increase in interest on borrowings. 51 Other Financial Results, Net Other financial results, net consists of foreign exchange gain or loss on monetary assets and liabilities denominated in currencies other than the U.S. dollar, gain or loss on transactions with bonds, foreign exchange forward contracts and future contracts and mutual funds.
The increase of finance expense up to $40.6 million for the year ended December 31, 2025 from $32.2 million for the year ended December 31, 2024 was due to an increase in interest on borrowings. 52 Other Financial Results, Net Other financial results, net consists of foreign exchange gain or loss on monetary assets and liabilities denominated in currencies other than the U.S. dollar, gain or loss on transactions with bonds, foreign exchange forward contracts and future contracts and mutual funds.
All stock-equivalent units were granted 50% in the form of PSEUs and 50% in the form of SEUs, each with a vesting period of four years, 25% becoming exercisable on or about each anniversary of the grant date. 58 There were 16,586, 28,059 and 57,779 SEUs and PSEUs outstanding as of December 31, 2024, 2023 and 2022, respectively.
All stock-equivalent units were granted 50% in the form of PSEUs and 50% in the form of SEUs, each with a vesting period of four years, 25% becoming exercisable on or about each anniversary of the grant date. There were 6,957, 16,586 and 28,059 SEUs and PSEUs outstanding as of December 31, 2025, 2024 and 2023, respectively.
For 2024, 2023 and 2022, we recorded $0.9 million, $2.3 million and $4.5 million of share-based compensation expense related to these stock-equivalent units and we delivered 3,844, 4,524 and 0 common shares, respectively.
For 2025, 2024 and 2023, we recorded $0.8 million, $0.9 million and $2.3 million of share-based compensation expense related to these stock-equivalent units and we delivered 4,310, 3,844 and 4,524 common shares, respectively.
The following table sets forth revenues by client location by amount and as a percentage of our revenues for the years indicated: Year ended December 31, 2024 2023 (in thousands, except percentages) By Geography North America $ 1,347,998 55.8 % $ 1,245,972 59.4 % Latin America 531,309 22.0 % 463,223 22.1 % Europe 419,073 17.3 % 310,114 14.8 % New Markets 117,309 4.9 % 76,630 3.7 % Revenues $ 2,415,689 100.0 % $ 2,095,939 100.0 % Revenues by Industry Vertical We are a provider of technology services to enterprises in a range of industry verticals including media and entertainment, consumer, retail and manufacturing and banks, financial services and insurance, among others.
The following table sets forth revenues by client location by amount and as a percentage of our revenues for the years indicated: Year ended December 31, 2025 2024 2023 (in thousands, except percentages) By Geography North America $ 1,333,403 54.3 % $ 1,347,998 55.8 % $ 1,245,972 59.4 % Latin America 492,537 20.1 % 531,309 22.0 % 463,223 22.1 % Europe 469,409 19.1 % 419,073 17.3 % 310,114 14.8 % New Markets 159,528 6.5 % 117,309 4.9 % 76,630 3.7 % Revenues $ 2,454,877 100.0 % $ 2,415,689 100.0 % $ 2,095,939 100.0 % Revenues by Industry Vertical We are a provider of technology services to enterprises in a range of industry verticals including media and entertainment, consumer, retail and manufacturing and banks, financial services and insurance, among others.
For 2024, we recorded $3.5 million of share-based compensation expense related to these restricted stock unit agreements.For further discussion of the 2024 Equity Incentive Plan, see “Compensation—Equity Compensation Arrangements". Employee Stock Purchase Plan ("ESPP") On March 1, 2021, our board of directors adopted an ESPP.
For 2025 and 2024, we recorded $16.7 million and $3.5 million of share-based compensation expense related to these restricted stock unit agreements, respectively. For further discussion of the 2024 Equity Incentive Plan, see “ Compensation —Equity Compensation Arrangements". Employee Stock Purchase Plan ("ESPP") On March 1, 2021, our board of directors adopted an ESPP.
Overview See " Information on the Company — History and Development of the Company " and " Information on the Company — Business Overview — Overview ".
Overview 46 See " Information on the Company — History and Development of the Company " and " Information on the Company — Business Overview — Overview ". A.
Appropriation of Retained earnings under Subsidiaries' local Laws and restrictions on distribution of dividends by certain Subsidiaries The ability of certain of our subsidiaries to pay dividends to us is subject to their satisfaction of requirements under local law to set aside a portion of their net income in each year to legal reserves, as well as subject to certain tax restrictions.
See note 26 to our audited consolidated financial statements. 58 Appropriation of Retained earnings under Subsidiaries' local Laws and restrictions on distribution of dividends by certain Subsidiaries The ability of certain of our subsidiaries to pay dividends to us is subject to their satisfaction of requirements under local law to set aside a portion of their net income in each year to legal reserves, as well as subject to certain tax restrictions.
The following table sets forth revenues contributed by our largest client, top five clients, top ten clients and top twenty clients by amount and as a percentage of our revenues for the years indicated: Year ended December 31, 2024 2023 (in thousands, except percentages) Client concentration Top client $ 210,555 8.7 % $ 183,207 8.7 % Top five clients 502,063 20.8 % 480,751 22.9 % Top ten clients 707,336 29.3 % 670,907 32.0 % Top twenty clients 965,344 40.0 % 877,926 41.9 % Our top ten customers for the year ended December 31, 2024 have been working with us for, on average, ten years.
The following table sets forth revenues contributed by our largest client, top five clients, top ten clients and top twenty clients by amount and as a percentage of our revenues for the years indicated: Year ended December 31, 2025 2024 2023 (in thousands, except percentages) Client concentration Top client $ 212,483 8.7 % $ 210,555 8.7 % $ 183,207 8.7 % Top five clients 493,309 20.1 % 502,063 20.8 % 480,751 22.9 % Top ten clients 717,557 29.2 % 707,336 29.3 % 670,907 32.0 % Top twenty clients 970,936 39.6 % 965,344 40.0 % 877,926 41.9 % Our top ten customers for the year ended December 31, 2025 have been working with us for, on average, eleven years.
For the year ended December 31, 2024, revenues increased by 15.3% to $2.4 billion from $2.1 billion for the year ended December 31, 2023. We discuss below the breakdown of our revenues by contract type, client location, industry vertical and client concentration.
For the year ended December 31, 2025, revenues increased by 1.6% to $2.5 billion from $2.4 billion for the year ended December 31, 2024. We discuss below the breakdown of our revenues by contract type, client location, industry vertical and client concentration.
B. Liquidity and Capital Resources Capital Resources Our primary sources of liquidity are cash flows from operating activities. For the year 2024, we derived 77.8% of our revenues from clients in North America and Latin America. Our primary cash needs are for capital expenditures (consisting of additions to property and equipment and to intangible assets) and working capital.
Liquidity and Capital Resources Capital Resources Our primary sources of liquidity are cash flows from operating activities. For the year 2025, we derived 74.4% of our revenues from clients in North America and Latin America. Our primary cash needs are for capital expenditures (consisting of additions to property and equipment and to intangible assets) and working capital.
Fair value is calculated using the Black-Scholes option pricing model. Under the terms of our 2024 Equity Incentive Plan, from its adoption until December 31, 2024, we have granted to members of our senior management and certain other employees 157,847 RSUs and PRSUs, net of any cancelled and/or forfeited awards.
Fair value is calculated using the Black-Scholes option pricing model. Under the terms of our 2024 Equity Incentive Plan, from its adoption until December 31, 2025, we have granted to members of our senior management and certain other employees 545,522 RSUs and PRSUs, net of any cancelled and/or forfeited awards. Most of these awards were comprised of RSUs.
Our IT professional headcount was 29,198 as of December 31, 2024, 27,116 as of December 31, 2023 and 25,331 as of December 31, 2022. We manage employee headcount and utilization based on ongoing assessments of our project pipeline and requirements for professional capabilities.
Our IT professional headcount was 26,906 as of December 31, 2025, 29,198 as of December 31, 2024 and 27,116 as of December 31, 2023. We manage employee headcount and utilization based on ongoing assessments of our project pipeline and requirements for professional capabilities.
We expect that as our revenues grow, our cost of revenues will increase. Our goal is to increase revenue per IT professional and thereby increase our gross profit margin. Cost of revenues was $1,552.3 million for 2024, representing an increase of $212.1 million, or 15.8%, from $1,340.2 million for 2023.
We expect that as our revenues grow, our cost of revenues will increase. Our goal is to increase revenue per IT professional and thereby increase our gross profit margin. Cost of revenues was $1,595.6 million for 2025, representing an increase of $43.3 million, or 2.8%, from $1,552.3 million for 2024.
Most of these awards were comprised of 50% RSUs and 50% PRSUs. RSUs and PRSUs have generally been granted with a vesting period of four years, 25% becoming vested on or about each anniversary of the grant date. Under the 2024 Equity Incentive Plan, there were 157,685 RSUs and/or PRSUs outstanding as of December 31, 2024.
RSUs and PRSUs have generally been granted with a vesting period of four years, 25% becoming vested on or about each anniversary of the grant date. Under the 2024 Equity Incentive Plan, there were 326,492 and 157,685 RSUs and/or PRSUs outstanding as of December 31, 2025 and 2024, respectively.
Other Income and Expenses, Net Other income and expenses, net decreased to a gain of $5.6 million for the year ended December 31, 2024 from a gain of $6.6 million for the year ended December 31, 2023.
Other Income and Expenses, Net Other income and expenses, net decreased to a loss of $0.9 million for the year ended December 31, 2025 from a gain of $5.6 million for the year ended December 31, 2024.
Such decrease is mainly explained by the write off of certain convertible notes and the effects of the renegotiation of deferred payments related to business combinations.
Such decrease is mainly explained by the write off of certain convertible notes and the effects of remeasurement of earn out payments related to business combinations.
Net cash provided by operating activities was $248.7 million for the year ended December 31, 2024, as compared to net cash provided in operating activities of $318.5 million for the year ended December 31, 2023.
Net cash provided by operating activities was $301.2 million for the year ended December 31, 2025, as compared to net cash provided in operating activities of $248.7 million for the year ended December 31, 2024.
In addition, on December 1, 2021, our compensation committee, as administrator, approved the granting of awards in the form of stock-equivalent units ("SEUs") and performance-based stock-equivalent units ("PSEUs") to be settled in cash or common shares, or a combination thereof, under the 2014 Equity Incentive Plan.
For further discussion of the 2014 Equity Incentive Plan, see “ Compensation —Equity Compensation Arrangements". 59 Also, on December 1, 2021, our compensation committee, as administrator, approved the granting of awards in the form of stock-equivalent units ("SEUs") and performance-based stock-equivalent units ("PSEUs") to be settled in cash or common shares, or a combination thereof, under the 2014 Equity Incentive Plan for the equivalent to 26,000 common shares.
For further discussion of the 2024 Equity Incentive Plan, see “Compensation—Equity Compensation Arrangements". Since the date of the 2024 Equity Incentive Plan’s adoption, we have granted to members of our senior management and certain other employees RSUs and PRSUs, generally on a 50% basis each.
For further discussion of the 2024 Equity Incentive Plan, see “ Compensation —Equity Compensation Arrangements". During 2024, we granted to members of our senior management and certain other employees RSUs and PRSUs under the 2024 Equity Incentive Plan, generally on a 50% basis each.
Our focus on delivering quality to our clients is reflected in the fact that existing clients from 2023 contributed 93.7% of our revenues in 2024.
Our focus on delivering quality to our clients is reflected in the fact that existing clients from 2024 contributed 96.0% of our revenues in 2025.
As of the 2014 Equity Incentive Plan Termination Date, an aggregate of 1,629,664 common shares remained subject to outstanding awards previously granted under the 2014 Equity Incentive Plan. For further discussion of the 2014 Plan, see “Compensation—Equity Compensation Arrangements".
As of December 31, 2025, an aggregate of 1,012,902 common shares remained subject to outstanding awards previously granted under the 2014 Equity Incentive Plan. For further discussion of the 2014 Plan, see “Compensation—Equity Compensation Arrangements".
Our business combinations activity resulted in cash outflows of $254 million. The fair value of the consideration recognized in our financial statements amounted to $67.5 million, based on target achievements and price adjustments. See note 26 to our audited consolidated financial statements. During 2024, we entered into several share purchase agreements to expand our service offering and capacity.
Our business combinations activity resulted in cash outflows of $278.2 million. The fair value of the contingent consideration recognized in our financial statements amounted to $126.2 million, based on target achievements and price adjustments. See note 29 to our audited consolidated financial statements. During 2025, we entered into a share purchase agreement to expand our service offering and capacity.
Year ended December 31, 2024 2023 (in thousands, except percentages) By Contract Time & Materials $ 1,714,120 71.0 % $ 1,654,280 78.9 % Fixed Price 606,860 25.1 % 383,867 18.3 % Licenses, resales & Others 94,709 3.9 % 57,792 2.8 % Revenues $ 2,415,689 100.0 % $ 2,095,939 100.0 % Revenues by Client Location Our revenues are sourced from the following four regions: North America (top markets: the United States and Canada), Latin America (top markets: Argentina and Brazil), Europe (top markets: Spain and United Kingdom) and New Markets (top markets: Saudi Arabia and India).
Year ended December 31, 2025 2024 2023 (in thousands, except percentages) By Contract Time & Materials $ 1,638,501 66.7 % $ 1,714,120 71.0 % $ 1,654,280 78.9 % Fixed Price 686,358 28.0 % 606,860 25.1 % 383,867 18.3 % Licenses, resales & Others 130,018 5.3 % 94,709 3.9 % 57,792 2.8 % Revenues $ 2,454,877 100.0 % $ 2,415,689 100.0 % $ 2,095,939 100.0 % 48 Revenues by Client Location Our revenues are sourced from the following four regions: North America, Latin America, Europe and New Markets.
As evidence of the increase in scope of engagement within our client base, the number of clients that each accounted for over $5.0 million of our annual revenues increased (89 in 2024 and 80 in 2023) and the number of clients that each accounted for at least $1.0 million of our annual revenues increased to 346 in 2024 from 311 in 2023.
As evidence of the increase in scope of engagement within our client base, the number of clients that each accounted for over $5.0 million of our annual revenues increased (92 in 2025 and 89 in 2024).
Our business combinations activity resulted in cash outflows of $278 million. The fair value of the consideration recognized in our financial statements amounted to $158.5 million, based on target achievements and price adjustments. See note 26 to our audited consolidated financial statements. As of December 31, 2024, we had cash and cash equivalents and current investments of $156.1 million.
Our business combinations activity resulted in cash outflows of $32.9 million. The fair value of the contingent consideration recognized in our financial statements amounted to $128.0 million, based on target achievements and price adjustments. See note 29 to our audited consolidated financial statements. As of December 31, 2025, we had cash and cash equivalents and current investments of $250.3 million.
The following table sets forth our revenues by amount and as a percentage of our revenues by industry vertical for the periods indicated: Year ended December 31, 2024 2023 (in thousands, except percentages) By Industry Vertical Media and Entertainment $ 526,585 21.8 % $ 454,380 21.7 % Consumer, Retail & Manufacturing 447,592 18.5 % 351,880 16.8 % Banks, Financial Services and Insurance 443,972 18.4 % 385,207 18.4 % Travel & Hospitality 281,178 11.6 % 187,346 8.9 % Technology & Telecommunications 256,854 10.6 % 255,238 12.2 % Professional Services 252,580 10.5 % 261,233 12.5 % Health Care 173,905 7.2 % 167,705 8.0 % Other Verticals 33,023 1.4 % 32,950 1.5 % Total $ 2,415,689 100.0 % $ 2,095,939 100.0 % 48 Our largest segment, Media and Entertainment, experienced robust growth driven by digital consumption trends among our major clients and strategic initiatives in Gaming and Sports and Entertainment.
The following table sets forth our revenues by amount and as a percentage of our revenues by industry vertical for the periods indicated: Year ended December 31, 2025 2024 2023 (in thousands, except percentages) By Industry Vertical Banks, Financial Services and Insurance $ 502,707 20.5 % $ 443,972 18.4 % $ 385,207 18.4 % Media and Entertainment 490,469 20.0 % 526,585 21.8 % 454,380 21.7 % Consumer, Retail & Manufacturing 461,460 18.8 % 447,592 18.5 % 351,880 16.8 % Travel & Hospitality 315,052 12.8 % 281,178 11.6 % 187,346 8.9 % Professional Services 233,825 9.5 % 252,580 10.5 % 261,233 12.5 % Technology & Telecommunications 227,943 9.3 % 256,854 10.6 % 255,238 12.2 % Health Care 173,458 7.1 % 173,905 7.2 % 167,705 8.0 % Other Verticals 49,963 2.0 % 33,023 1.4 % 32,950 1.5 % Total $ 2,454,877 100.0 % $ 2,415,689 100.0 % $ 2,095,939 100.0 % Our largest industry during 2025 was Banks, Financial Services and Insurance, fueled by increased engagement with global financial institutions and a strategic pivot toward digital banking infrastructure.
Please refer to note 31 of our audited consolidated financial statements for further information. 57 Equity Compensation Arrangements 2014 Equity Incentive Plan On July 3, 2014, our board of directors and shareholders approved and adopted the 2014 Equity Incentive Plan, which was amended on May 9, 2016, February 13, 2019, May 18, 2021 and June 8, 2022.
Equity Compensation Arrangements 2014 Equity Incentive Plan On July 3, 2014, our board of directors and shareholders approved and adopted the Company's 2014 Equity Incentive Plan (the "2014 Equity Incentive Plan"), which was amended on May 9, 2016, February 13, 2019, May 18, 2021 and June 8, 2022.
The following table sets forth our historical capital expenditures for the years ended December 31, 2024 and 2023: Year ended December 31, 2024 2023 (In thousands) Total fixed assets acquisitions $ 29,844 $ 34,008 Total intangible assets acquisitions 105,071 166,759 Additions related to business combinations (15,843) (90,303) Total Capital Expenditures 119,072 110,464 Investments During 2024 and 2023, we invested $119.1 million and $110.5 million in capital expenditures, respectively, consisting of $91.6 million and $79.8 million in internal developments and acquired licenses, respectively; and the remaining to complete or develop our works on our delivery centers. 55 Business Combinations During 2023, we entered into several share purchase agreements to expand our service offering and capacity.
The following table sets forth our historical capital expenditures for the years ended December 31, 2025 and 2024: Year ended December 31, 2025 2024 (In thousands) Total fixed assets acquisitions $ 17,961 $ 29,844 Total intangible assets acquisitions 80,074 194,381 Additions related to business combinations (14,972) (105,153) Total Capital Expenditures 83,063 119,072 Investments During 2025 and 2024, we invested $83.1 million and $119.1 million in capital expenditures, respectively, consisting of $65.2 million and $91.6 million in internal developments and acquired licenses, respectively; and the remaining to complete or develop our works on our delivery centers. 56 Business Combinations During 2024, we entered into several share purchase agreements to expand our service offering and capacity.
Changes in working capital in the year ended December 31, 2024 consisted primarily of a $113.1 million increase in trade receivables, a $1.4 million increase in other receivables, a $12.2 million decrease in other assets, a $38.1 million decrease in trade payables, a $8.2 million decrease in tax liabilities, and $2.0 million increase in payroll and social security taxes payable.
Changes in working capital in the year ended December 31, 2025 consisted primarily of a $36.2 million decrease in trade receivables, a $13.7 million increase in other receivables, a $13.7 million increase in other assets, a $6.6 million decrease in trade payables, a $14.3 million decrease in tax liabilities, and $60.8 million decrease in payroll and social security taxes payable.
Until December 31, 2023, the Company granted 592,521 of these awards, net of any cancelled and/or forfeited awards. There were 1,452,921, 1,565,733 and 1,636,554 stock options, RSUs and/or PRSUs outstanding as of December 31, 2024, 2023 and 2022, respectively.
Until December 31, 2025, the Company granted 503,951 of these awards, net of any cancelled and/or forfeited awards. There were 879,966, 1,452,921 and 1,565,733 stock options, RSUs and/or PRSUs outstanding as of December 31, 2025, 2024 and 2023 under the 2014 Equity Incentive Plan, respectively.
For the year ended December 31, 2024, we had 1,731 customers with more than ten thousands U.S. dollars in revenue in the last twelve months.
For the year ended December 31, 2025, we had 944 customers with more than one hundred thousand U.S. dollars in revenue in the last twelve months.
Our cost of revenues has increased in recent years in line with the growth in our revenues and reflects the expansion of our operations in the countries where we operate primarily due to increases in salary costs, an increase in the number of our IT professionals and the opening of new delivery centers.
Also included in cost of revenues is the portion of depreciation and amortization expense attributable to the portion of our property and equipment, right of use assets and intangible assets utilized in the delivery of services to our clients. 50 Our cost of revenues has increased in recent years in line with the growth in our revenues and reflects the expansion of our operations in the countries where we operate primarily due to increases in salary costs, an increase in the number of our IT professionals and the opening of new delivery centers.
Cash Flows The following table summarizes our cash flows from operating, investing and financing activities for the periods indicated: For the year ended December 31, 2024 2023 (In thousands) Net cash provided by operating activities $ 248,727 $ 318,524 Net cash used in investing activities (403,904) (350,361) Net cash (used in) provided by financing activities (5,810) 44,530 Cash and cash equivalents at beginning of the year 307,223 292,457 Cash and cash equivalents at end of the year 146,236 305,150 Net (decrease) increase in Cash and cash equivalents at end of year (160,987) 12,693 Operating Activities Net cash provided by operating activities was generated primarily by profits before taxes adjusted for non-cash items, including depreciation and amortization expense, shared-based compensation expense and the effect of working capital changes.
Cash Flows The following table summarizes our cash flows from operating, investing and financing activities for the periods indicated: For the year ended December 31, 2025 2024 (In thousands) Net cash provided by operating activities $ 301,176 $ 248,727 Net cash used in investing activities (134,510) (403,904) Net cash used in by financing activities (64,570) (5,810) Cash and cash equivalents at beginning of the year 142,093 307,223 Cash and cash equivalents at end of the year 243,742 142,093 Net increase (decrease) in Cash and cash equivalents at end of year 101,649 (165,130) Operating Activities Net cash provided by operating activities was generated primarily by profits before taxes adjusted for non-cash items, including depreciation and amortization expense, shared-based compensation expense and the effect of working capital changes.
Additionally, during the year ended December 31, 2024 we received $81.1 million net of borrowings, we paid $43.6 million of lease liabilities, $21.0 million in acquisition-related transactions and $25.8 million of put option to acquire non-controlling interest. For discussion related to cash flows from financing activities during 2023 compared to 2022, refer to Part I, Item 5.
Additionally, we received $53.2 million net of borrowings, we paid $35.4 million of lease liabilities and paid $27.1 million of put option to acquire non-controlling interest. For discussion related to cash flows from financing activities during 2024 compared to 2023, refer to Part I, Item 5.
For 2024, 2023 and 2022, we recorded $79.3 million, $72.5 million and $57.1 million of share-based compensation expense related to these share option and restricted stock unit agreements, respectively. For further discussion of the 2014 Equity Incentive Plan, see “ Compensation —Equity Compensation Arrangements".
For 2025, 2024 and 2023, we recorded $61 million, $79.3 million and $72.5 million of share-based compensation expense related to these share option and restricted stock unit agreements, respectively.
Other financial results, net decreased to a $6.1 million gain for the year ended December 31, 2024 from a $11.3 million gain for the year ended December 31, 2023, primarily for a foreign exchange gain of $0.2 million compared to a loss of $22.0 million in 2023, a gain of $0.5 million net related to gain from financial instruments measured at fair value through profit or loss compared to a gain of $23.6 million in 2023 and a gain on transactions with bonds of $5.0 million compared to a gain of $9.2 million in 2023.
Other financial results, net decreased to a $3.2 million gain for the year ended December 31, 2025 from a $6.1 million gain for the year ended December 31, 2024, primarily for a gain on transactions with bonds of $1.3 million compared to a gain of $5.0 million in 2024.
The breadth and depth of the services we offer impact our ability to grow revenues from new and existing clients. Through research and development, targeted hiring and strategic acquisitions, we have invested in broadening and deepening the domains of expertise of our Studios.
Through research and development, targeted hiring and strategic acquisitions, we have invested in broadening and deepening the domains of expertise of our Studios.
Liquidity and Capital Resources, in our Annual Report on Form 20-F for the fiscal year ended December 31, 2023, which was filed with the SEC on February 29, 2024.
For discussion related to cash flows from investing activities during 2024 compared to 2023, refer to Part I, Item 5. Liquidity and Capital Resources, in our Annual Report on Form 20-F for the fiscal year ended December 31, 2024, which was filed with the SEC on February 28, 2025.
Included in salaries are base salary, incentive-based compensation, employee benefits costs and social security taxes. Salaries of our IT professionals are allocated to cost of revenues regardless of whether they are actually performing services during a given period.
Salaries of our IT professionals are allocated to cost of revenues regardless of whether they are actually performing services during a given period.
Gross profit margin was 35.7%, 36.1% and 37.6% for the years ended December 31, 2024, 2023 and 2022, respectively and adjusted gross profit margin was 38.2%, 38.1% and 39.2% for the years ended December 31, 2024, 2023 and 2022, respectively.
Gross profit margin was 35.0%, 35.7% and 36.1% for the years ended December 31, 2025, 2024 and 2023, respectively and adjusted gross profit margin was 37.9%, 38.2% and 38.1% for the years ended December 31, 2025, 2024 and 2023, respectively. See " Operating and financial review and prospects - Operating Results - Adjusted Diluted EPS and Adjusted Net Income.
Liquidity and Capital Resources, in our Annual Report on Form 20-F for the fiscal year ended December 31, 2023, which was filed with the SEC on February 29, 2024.
Liquidity and Capital Resources, in our Annual Report on Form 20-F for the fiscal year ended December 31, 2024, which was filed with the SEC on February 28, 2025. 57 Investing Activities Net cash of $134.5 million was used in investing activities for the year ended December 31, 2025, as compared to $403.9 million of net cash used in investing activities during the year ended December 31, 2024.
Eligible employees receive a grant of stock-equivalent units with a unit value equal to the market value of one common share of the Company, to be settled in cash or common shares of the Company.
Eligible employees receive a grant of stock-equivalent units with a unit value equal to the market value of one common share of the Company, to be settled in cash or common shares of the Company. Until the 2014 Equity Incentive Plan Termination Date we have granted to eligible employees 35,142 SEUs and PSEUs, net of any cancelled and/or forfeited awards.
Since time-and-materials is our main type of contract, the hourly rates we charge for our Globers are a key factor impacting our gross profit margins and profitability. Hourly rates vary by complexity of the project and the mix of staffing.
Our results of operations in any given period are directly affected by the following additional company-specific factors: • Pricing of, and margin on, our services and revenue mix. Since time-and-materials is our main type of contract, the hourly rates we charge for our Globers are a key factor impacting our gross profit margins and profitability.
Finance Income Finance income consists of interest gains on time deposits, financed customers and savings accounts. The increase of finance income up to $5.3 million for the year ended December 31, 2024 from $4.8 million for the year ended December 31, 2023 was primarily attributable to accrued interests from savings accounts.
The increase of finance income up to $5.5 million for the year ended December 31, 2025 from $5.3 million for the year ended December 31, 2024 was primarily attributable to accrued interests from savings accounts. Finance Expense Finance expense includes the interests from borrowings, leases contracts, banking fees and other finance expenses.
During the three-year period ended December 31, 2024, we increased our revenues attributable to sales of technology solutions (primarily through digital transformation, data and cloud strategies).
As a client relationship matures and deepens, we seek to maximize our revenues and profitability by expanding the scope of services offered to that client and achieving higher profit margin assignments. During the three-year period ended December 31, 2025, we increased our revenues attributable to sales of technology solutions (primarily through digital transformation, data and cloud strategies).
Additionally, other industry segments experienced a slight increase, driven in part by several e-learning projects throughout 2024. Revenues by Client Concentration We have increased our revenues by expanding the scope and size of our engagements, and we have grown our key client base primarily through our business development efforts and referrals from our existing clients.
Our Health Care vertical remained stable. 49 Revenues by Client Concentration We have increased our revenues by expanding the scope and size of our engagements, and we have grown our key client base primarily through our business development efforts and referrals from our existing clients.
Financing Activities Net cash of $5.8 million was used in financing activities for the year ended December 31, 2024, as compared to $44.5 million of net cash provided by financing activities for the year ended December 31, 2023. During the year ended December 31, 2024, we received $3.4 million for the issuance of shares under our share-based compensation plan.
Financing Activities Net cash of $64.6 million was used in financing activities for the year ended December 31, 2025, as compared to $5.8 million of net cash used in financing activities for the year ended December 31, 2024. During the year ended December 31, 2025, we paid $56.1 million for the repurchase of shares.
This decrease of $69.8 million in net cash provided by operating activities was primarily attributable to a $88.9 million increase in working capital, a $3.8 million increase in the utilization of provision for contingencies and a $20.2 million increase in income tax payments.
This increase of $52.4 million in net cash provided by operating activities was primarily attributable to a $73.7 million decrease in working capital and a decrease of $26.8 in profit before income tax expense adjusted for non-cash-items.
The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition. During the years ended December 31, 2024 and 2023, we recorded a loss of $7.0 million and $18.8 million, respectively, related to the recognition of the allowance for expected credit losses.
During the years ended December 31, 2025 and 2024, we recorded a loss of $7.6 million and $7.0 million, respectively, related to the recognition of the allowance for expected credit losses. The increase in the allowance for expected credit losses was driven by an increase in risk clients allowance despite the improvement in the Company's DSO.
During the year ended December 31, 2024, we received $12.2 million in mutual funds, T-bills and commercial papers, we invested $110.7 million in fixed and intangible assets, $304.4 million in acquisition-related transactions (acquisition of business, equity instruments and convertible notes), and we invested $1.0 million related to future and forward contracts. 56 For discussion related to cash flows from investing activities during 2023 compared to 2022, refer to Part I, Item 5.
During the year ended December 31, 2025, we invested $89.5 million in fixed and intangible assets and $56.7 million in acquisition-related transactions (acquisition of business, equity instruments and convertible notes), while during the year ended December 31, 2024 we invested $110.7 million in fixed and intangible assets and $304.4 million in acquisition-related transactions (acquisition of business, equity instruments and convertible notes).
Included in salaries are base salary, incentive-based compensation, employee benefits costs and social security taxes. Also included in selling, general, and administrative expenses is the portion of depreciation and amortization expense attributable to the portion of our property and equipment, right-of-use assets and intangible assets utilized in our sales and administration functions.
Also included in selling, general, and administrative expenses is the portion of depreciation and amortization expense attributable to the portion of our property and equipment, right-of-use assets and intangible assets utilized in our sales and administration functions. 51 Selling, general and administrative expense was $629.3 million for 2025, representing an decrease of $3.7 million, or 0.6%, from $633.0 million for 2024.
The margin on our services is impacted by the increase in our costs in providing those services, which is influenced by wage inflation, market conditions and other factors. As a client relationship matures and deepens, we seek to maximize our revenues and profitability by expanding the scope of services offered to that client and achieving higher profit margin assignments.
Hourly rates vary by complexity of the project and the mix of staffing. The margin on our services is impacted by the increase in our costs in providing those services, which is influenced by wage inflation, market conditions and other factors.
Year ended December 31, 2024 2023 (in millions, except percentages) Amount Variation Amount Variation Main variations in cost of revenues Salaries, employee benefits and social security taxes $ (1,329.5) 14.7 % $ (1,158.7) 14.2 % Office expenses (16.8) 128.5 % (7.3) (16.7) % Promotional and marketing expenses (12.4) 134.0 % (5.3) 29.4 % The increase in salaries, employee benefits and social security taxes is primarily attributable to the net addition of 2,082 IT professionals since December 31, 2023, an increase of 7.7%, to satisfy growing demand for our services, which translated into an increase in salaries.
Year ended December 31, 2025 2024 (in millions, except percentages) Amount Variation Amount Variation Main variations in cost of revenues Salaries, employee benefits and social security taxes $ (1,370.6) 3.1 % $ (1,329.5) 14.7 % Professional Services (94.0) (12.7) % (107.7) 2.7 % Depreciation and amortization expense (41.4) 48.5 % (27.9) 54.3 % Office expenses (25.3) 50.8 % (16.8) 128.5 % The increase in salaries, employee benefits and social security taxes is primarily attributable to the appreciation of the EUR, GBP and Latin American currencies (mainly COP, PEN, CLP, MXN and BRL), as well as salary adjustments and promotion cycles.
See note 26 to our audited consolidated financial statements.
Please refer to note 31 of our audited consolidated financial statements for further information.
The volume of work we perform for specific clients is likely to vary from year to year, as we are typically not any client's exclusive external technology services provider, and a major client in one year may not contribute the same amount or percentage of our revenues in any subsequent year. 49 Cost of Revenues The principal components of our cost of revenues are salaries, professional services and share-based compensation plans (equity settled).
The following table shows the distribution of our clients that generated revenues of more than one hundred thousand U.S. dollars for the year presented: Year ended December 31, 2025 2024 2023 Over $5 Million 92 89 80 $1 - $5 Million 244 257 231 $0.5 - $1 Million 174 172 155 $0.1 - $0.5 Million 434 494 465 Total Clients 944 1,012 931 The volume of work we perform for specific clients is likely to vary from year to year, as we are typically not any client's exclusive external technology services provider, and a major client in one year may not contribute the same amount or percentage of our revenues in any subsequent year.
Cost of revenues as a percentage of revenues increased to 64.3% for 2024 from 63.9% for 2023.
The decrease in professional services relates to the optimization over contractor services in our business. Cost of revenues as a percentage of revenues increased to 65.0% for 2025 from 64.3% for 2024.
Selling, general and administrative expense was $633.0 million for 2024, representing an increase of $95.9 million, or 17.9%, from $537.1 million for 2023. 50 Year ended December 31, 2024 2023 (in millions, except percentages) Amount Variation Amount Variation Main variations in Selling, General and Administrative Expenses Salaries, employee benefits and social security taxes $ (262.5) 23.6 % $ (212.4) 22.4 % Taxes (25.9) 29.3 % (20.0) 13.7 % Rental expenses (12.8) 39.5 % (9.1) 22.8 % The increase of salaries, employee benefits, social security taxes and share based compensation was primarily attributable to the addition of sales and management executives.
Year ended December 31, 2025 2024 (in millions, except percentages) Amount Variation Amount Variation Main variations in Selling, General and Administrative Expenses Salaries, employee benefits and social security taxes $ (251.8) (4.1) % $ (262.5) 23.6 % Depreciation and amortization expense (113.5) 17.0 % (97.0) 18.6 % Professional services (52.8) (6.8) % (56.6) 13.4 % Share-based compensation expense - Equity settled (50.5) (14.2) % (58.8) 2.7 % The decrease of salaries, employee benefits, social security taxes and share-based compensation was primarily attributable to the implementation of the Business Optimization Plan where our global workforce was reduced; partially offset by the currency appreciations of the EUR, GBP and Latin American currencies.
There was also an increase of $9.5 million in taxes and rental expenses mainly related to impacts of acquired companies. Selling, general and administrative expenses as a percentage of revenues was 26.2% and 25.6% for 2024 and 2023, respectively.
The decrease in professional services is primarily linked to the decrease in our business combination activity in 2025. The increase in depreciation and amortization expense relates to intangible assets acquired through business combinations at the end of 2024. Selling, general and administrative expenses as a percentage of revenues was 25.6% and 26.2% for 2025 and 2024, respectively.
See " O p erating and financial review and prospects - Oper a ting Result s - A djusted Diluted EPS and Adjusted Net Income . ". • Our ability to deepen and expand the portfolio of services we offer while maintaining our high standard of quality.
". 47 • Our ability to deepen and expand the portfolio of services we offer while maintaining our high standard of quality. The breadth and depth of the services we offer impact our ability to grow revenues from new and existing clients.

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Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeIn particular, Globers (i) in Argentina, principally at our delivery centers in Rosario and Mendoza, were covered by a CBA with the trade union Federación Argentina de Empleados de Comercio y Servicios ("FAECYS"); (ii) on our Brazilian payroll are covered under the following: (a) Sindicato dos Trabalhadores em Processamento de Dados e Tecnología da Informação do Estado de São Paulo -SINDPD-SP CBA and (b) a CBA executed between the Union of advertisers, advertising agents and workers in advertising companies in the State of São Paulo (representing the employees, and the Association of Advertising Agencies of the State of São Paulo (representing the employers); (iii) from our Spanish payroll are covered under the following: (a) Consultancy services CBA and (b) bureaus and offices for Madrid and Cataluña and Marketing Agencies CBA, (iv) from our French payroll are covered under the Syntec CBA; (v) in Italy (Sysdata) are covered under the Metalurgic CBA and (vi) in Portugal are covered under Electronic Sector. 74 The following tables show our total number of full-time employees as of December 31, 2024 broken down by functional area and geographical location: Number of employees Technology 27,027 Operations 2,171 Management and administration 1,671 Sales 411 Total 31,280 Number of employees Colombia 6,204 Argentina 5,828 India 5,513 Mexico 2,859 Brazil 2,029 Spain 1,621 Peru 1,331 Chile 1,144 United States of America 957 Uruguay 937 Romania 788 Italy 415 Ecuador 273 Moldova 197 United Kingdom 195 Bulgaria 156 United Arab Emirates 120 Vietnam 108 Canada 105 Belarus 84 Denmark 81 Costa Rica 73 France 61 Poland 37 Saudi Arabia 37 Philippines 31 Australia 30 Germany 22 Other countries 44 Total 31,280 In 2007, we started shifting from a Buenos Aires-centric delivery model to a distributed organization with locations across North America, Latin America, Europe, Asia, Africa and Oceania.
Biggest changeIn particular, Globers (i) in Argentina, principally at our delivery centers in Rosario and Mendoza, were covered by a CBA with the trade union Federación Argentina de Empleados de Comercio y Servicios ("FAECYS"); (ii) on our Brazilian payroll are covered under the following: (a) Sindicato dos Trabalhadores em Processamento de Dados e Tecnología da Informação do Estado de São Paulo -SINDPD-SP CBA and (b) a CBA executed between the Union of advertisers, advertising agents and workers in advertising companies in the State of São Paulo (representing the employees, and the Association of Advertising Agencies of the State of São Paulo (representing the employers); (iii) from our Spanish payroll are covered under the following: (a) Consultancy services CBA and (b) bureaus and offices for Madrid and Cataluña and Marketing Agencies CBA, (iv) from our French payroll are covered under the Syntec CBA; (v) in Italy (Sysdata) are covered under the Metalurgic CBA and (vi) in Portugal are covered under Electronic Sector.
Stock Awards. The plan allows the administrator to grant awards denominated in common shares or other securities, stock equivalent units or RSUs, securities or debentures convertible into common shares or any combination of the foregoing, to eligible participants. Awards denominated in stock equivalent units will be credited to a bookkeeping reserve account solely for accounting purposes.
The plan allows the administrator to grant awards denominated in common shares or other securities, stock equivalent units or RSUs, securities or debentures convertible into common shares or any combination of the foregoing, to eligible participants. Awards denominated in stock equivalent units will be credited to a bookkeeping reserve account solely for accounting purposes.
If any award, or portion of an award, under the plan expires or terminates unexercised, becomes unexercisable, is settled in cash without delivery of common shares, or is forfeited or otherwise terminated or cancelled as to any common shares, the common shares subject to such award will thereafter be available for further awards under the plan.
If any award, or portion of an award, under the plan expires or terminates unexercised, becomes unexercisable, is settled in cash without delivery of common shares, or is forfeited or otherwise terminated or cancelled as to any common shares, the common shares subject to such award will thereafter be available for further awards under the plan.
In the event of such termination, the holders of stock options and other awards under the plan will be permitted immediately before the change in control to exercise or convert all portions of such stock options or awards that are exercisable or convertible or which become exercisable or convertible upon or prior to the effective time of the change in control.
In the event of such termination, the holders of stock options and other awards under the plan will be permitted immediately before the change in control to exercise or convert all portions of such stock options or awards that are exercisable or convertible or which become exercisable or convertible upon or prior to the effective time of the change in control.
Among other matters, our audit committee: • is responsible for the appointment, compensation and retention of our independent auditors and reviews and evaluates the auditors’ qualifications, independence and performance; 72 • oversees our auditors’ audit work and reviews and pre-approves all audit and non-audit services that may be performed by them; • reviews and approves the planned scope of our annual audit; • monitors the rotation of partners of the independent auditors on our engagement team as required by law; • reviews our financial statements and discusses with management and our independent auditors the results of the annual audit and the review of our quarterly financial statements; • reviews our critical accounting policies and estimates; • oversees the adequacy of our accounting and financial controls; • annually reviews the audit committee charter and the committee’s performance; • reviews and approves related-party transactions; • reviews our enterprise risk management (including cybersecurity); and • establishes and oversees procedures for the receipt, retention and treatment of complaints regarding accounting, internal controls or auditing matters and oversees enforcement, compliance and remedial measures under our code of conduct.
Among other matters, our audit committee: • is responsible for the appointment, compensation and retention of our independent auditors and reviews and evaluates the auditors’ qualifications, independence and performance; • oversees our auditors’ audit work and reviews and pre-approves all audit and non-audit services that may be performed by them; • reviews and approves the planned scope of our annual audit; • monitors the rotation of partners of the independent auditors on our engagement team as required by law; • reviews our financial statements and discusses with management and our independent auditors the results of the annual audit and the review of our quarterly financial statements; • reviews our critical accounting policies and estimates; • oversees the adequacy of our accounting and financial controls; • annually reviews the audit committee charter and the committee’s performance; • reviews and approves related-party transactions; • reviews our enterprise risk management (including cybersecurity); and • establishes and oversees procedures for the receipt, retention and treatment of complaints regarding accounting, internal controls or auditing matters and oversees enforcement, compliance and remedial measures under our code of conduct.
Tártara remains closely connected to Globant’s various development teams, ensuring the high quality of products and the growth of each Globant team member. 65 Patricio Pablo Rojo Mr. Rojo has been our General Counsel since October 2021. He has the overall responsibility of supervising Globant´s Legal and Compliance department. He previously served in this role from 2013 to 2018.
Tártara remains closely connected to Globant’s various development teams, ensuring the high quality of products and the growth of each Globant team member. Patricio Pablo Rojo Mr. Rojo has been our General Counsel since October 2021. He has the overall responsibility of supervising Globant´s Legal and Compliance department. He previously served in this role from 2013 to 2018.
The plan allows the administrator to grant awards of stock appreciation rights which entitle the holder to receive a payment in cash, in common shares, or in a combination of both, having an aggregate value equal to the product of the excess of the fair market value on the exercise date of the underlying common shares over the base price of the common shares specified in the grant agreement, multiplied by the number of common shares specified in the award being exercised.
The plan allows the administrator to grant awards of stock appreciation rights which entitle the holder to receive a payment in cash, in common shares, or in a combination of both, having an aggregate value equal to the product of the excess of the fair market value on the exercise date of the underlying common shares over the base price of the common shares specified in the grant agreement, multiplied by the number of common shares specified in the award being exercised. 70 Stock Awards.
He is a Co-Founder and Managing Partner of Riverwood Capital, one of the leading investment firms solely dedicated to technology growth and scalability, and the largest investor in Globant. Prior to establishing Riverwood, Mr. Alvarez-Demalde was an investment executive at Kohlberg Kravis Roberts & Co. (KKR), where he focused on leveraged buyouts in the technology industry and other sectors.
He is a Co-Founder and Managing Partner of Riverwood Capital, one of the leading investment firms solely dedicated to technology growth and scalability, and the largest early investor in Globant. Prior to establishing Riverwood, Mr. Alvarez-Demalde was an investment executive at Kohlberg Kravis Roberts & Co. (KKR), where he focused on leveraged buyouts in the technology industry and other sectors.
Between 2006 and 2007, he was an International Associate at the New York office of Simpson, Thacher & Bartlett LLP. Pablo has a law degree from the Pontificia Universidad Católica Argentina "Santa María de los Buenos Aires" and has completed post-graduate studies in law and economics at Torcuato Di-Tella University. B.
Between 2006 and 2007, he was an International Associate at the New York office of Simpson, Thacher & Bartlett LLP. Pablo has a law degree from the Pontificia Universidad Católica Argentina "Santa María de los Buenos Aires" and has completed post-graduate studies in law and economics at Torcuato Di-Tella University. 67 B.
Englebienne is qualified to serve on our board of directors due to his intimate familiarity with our company and his perspective, experience, and operational expertise in the technology services industry that he has developed during his career as our co-founder and executive officer. Francisco Álvarez-Demalde Francisco Alvarez-Demalde has been a member of our board of directors since 2007.
Englebienne is qualified to serve on our board of directors due to his intimate familiarity with our company and his perspective, experience, and operational expertise in the technology services industry that he has developed during his career as our co-founder and executive officer. 62 Francisco Álvarez-Demalde Francisco Alvarez-Demalde has been a member of our board of directors since 2007.
Directors appointed to fill vacancies remain in office until the next general meeting of shareholders. Globant S.A. was incorporated in Luxembourg on December 10, 2012. References to the terms of service or appointment of our directors and senior management in the following biographies include their service to our predecessor companies. Martín Migoya Mr.
Directors appointed to fill vacancies remain in office until the next general meeting of shareholders. Globant S.A. was incorporated in Luxembourg on December 10, 2012. References to the terms of service or appointment of our directors and senior management in the following biographies include their service to our predecessor companies. 61 Martín Migoya Mr.
We believe that the plan will promote our long-term growth and profitability by (i) providing key people with incentives to improve shareholder value and to contribute to our growth and financial success through their future services, and (ii) enabling us to attract, retain and reward the best-available personnel. 66 Eligibility; Types of Awards.
We believe that the plan will promote our long-term growth and profitability by (i) providing key people with incentives to improve shareholder value and to contribute to our growth and financial success through their future services, and (ii) enabling us to attract, retain and reward the best-available personnel. Eligibility; Types of Awards.
Migoya is qualified to serve on our board of directors due to his deep familiarity with our company and the perspective, experience, and operational expertise in the technology services industry that he has developed during his career and as our co-founder and Chief Executive Officer. 60 Martín Gonzalo Umaran Mr.
Migoya is qualified to serve on our board of directors due to his deep familiarity with our company and the perspective, experience, and operational expertise in the technology services industry that he has developed during his career and as our co-founder and Chief Executive Officer. Martín Gonzalo Umaran Mr.
Petroni Merhy held a number of leadership roles within JPMorgan Chase including Head of Finance & Business Management for the Investment and Corporate Banking and Wholesale Payments in Asia Pacific, Senior Business Manager for China, Head of Human Resources for Latin America and Head of Finance & Strategy for the Investment Banking in Latin America. From 2015 to 2021, Ms.
Petroni Merhy held a number of leadership roles within JPMorgan Chase including Head of Finance & Business Management for the Investment and Corporate Banking and Payments for Asia Pacific, Senior Business Manager for China, Head of Human Resources for Latin America and Head of Finance & Strategy for the Investment Banking in Latin America. From 2015 to 2021, Ms.
The following description of the plan is qualified in its entirety by the full text of the plan, which has been filed with the SEC as an exhibit to the registration statement previously filed in connection with our initial public offering and incorporated by reference herein. Purpose.
The following description of the plan is qualified in its entirety by the full text of the plan, which has been filed with the SEC as an exhibit to the registration statement previously filed in connection with our initial public offering and incorporated by reference herein. 71 Purpose.
These agreements may be terminated by us in case of termination with cause or resignation without good reason. Pension, Retirement or Similar Benefits We do not pay or set aside any amounts for pension, retirement or other similar benefits for our officers or directors. C.
These agreements may be terminated by us in case of termination with cause or resignation without good reason. 74 Pension, Retirement or Similar Benefits We do not pay or set aside any amounts for pension, retirement or other similar benefits for our officers or directors. C.
Common shares used to pay the exercise price of an award or tax obligations will not be available again for other awards under the plan. 68 Administration. The plan is administered by our compensation committee.
Common shares used to pay the exercise price of an award or tax obligations will not be available again for other awards under the plan. Administration. The plan is administered by our compensation committee.
Alvarez-Demalde is qualified to serve on our board of directors due to his considerable business experience in the technology industry and his experience serving as a director of other companies. 61 Linda Rottenberg Ms.
Alvarez-Demalde is qualified to serve on our board of directors due to his considerable business experience in the technology industry and his experience serving as a director of other companies. Linda Rottenberg Ms.
Pinelli is well-qualified to serve as a director and a financial expert due to her leadership roles, international business experience, financial acumen and extensive experience in advising growth companies. 62 Andrea Mayumi Petroni Merhy Ms.
Pinelli is well-qualified to serve as a director and a financial expert due to her leadership roles, international business experience, financial acumen and extensive experience in advising growth companies. Andrea Mayumi Petroni Merhy Ms.
We believe that the initiative will provide an incentive to attract, retain and reward talent in the IT industry, and would prompt the eligible employees to further contribute to the growth and profitability of the company. Eligibility.
We believe that the initiative will provide an incentive to attract, retain and reward talent in the IT industry, and would prompt the eligible employees to further contribute to the growth and profitability of the company. 84 Eligibility.
Rottenberg is qualified to serve on our board of directors due to her knowledge and experience in the technology industry and experience serving as a director of other companies. Maria Pinelli Ms.
Rottenberg is qualified to serve on our board of directors due to her knowledge and experience in the technology industry and experience serving as a director of other companies. 63 Maria Pinelli Ms.
In connection with the plan, the administrator approved the repurchase of up to 100,000 common shares, which number of common shares is automatically increased on the first day of each year for a period of ten years beginning on 2022, in an amount equal to the smallest of: (a) 0.5% of the number of common shares issued and outstanding on the immediately preceding 31 December or (b) 200,000 common shares; that as of the date of this annual report represents an aggregate of 900,000 common shares.
In connection with the plan, the administrator approved the repurchase of up to 100,000 common shares, which number of common shares is automatically increased on the first day of each year for a period of ten years beginning on 2022, in an amount equal to the smallest of: (a) 0.5% of the number of common shares issued and outstanding on the immediately preceding 31 December or (b) 200,000 common shares; that as of the date of this annual report represents an aggregate of 1,100,000 common shares.
Notwithstanding the foregoing, in the event of a change in control, all awards, subject to certain exclusions, granted to certain senior executives will (a) become vested and payable in equal parts on each of the change in control completion date, and the 6th and 12th month anniversaries from such date, unless full payment is resolved by the administrator upon consummation of the change in control; (b) be paid and settled in cash immediately, if the senior executive is terminated without cause or resigns with good reason during the first year following the change in control completion date; and (c) become vested and settled in cash on the change in control completion date, if the executive is terminated without cause or resigned with good reason at any time from the date the Company was made aware of the potential change in control, and such change in control occurs within the 6 months following the executive's dismissal or resignation. 69 Clawback/Recovery .
Notwithstanding the foregoing, in the event of a change in control, all awards, subject to certain exclusions, granted to certain senior executives will (a) become vested and payable in equal parts on each of the change in control completion date, and the 6th and 12th month anniversaries from such date, unless full payment is resolved by the administrator upon consummation of the change in control; (b) be paid and settled in cash immediately, if the senior executive is terminated without cause or resigns with good reason during the first year following the change in control completion date; and (c) become vested and settled in cash on the change in control completion date, if the executive is terminated without cause or resigned with good reason at any time from the date the Company was made aware of the potential change in control, and such change in control occurs within the 6 months following the executive's dismissal or resignation.
Petroni Merhy has served as a member of our board of directors since April 22, 2022 and as member of our Corporate Governance and Nominating committee since May 7, 2022 and as chair of such Corporate Governance and Nominating Committee since June 7, 2024.
Petroni Merhy has served as a member of our board of directors since April 22, 2022 and as member of our Corporate Governance and Nominating committee since May 7, 2022 and as chair of such Corporate Governance and Nominating Committee since June 7, 2024. Ms.
Each offering period will have a 6 months duration; provided that in respect to Sistemas UK Limited, Sistemas Globales Uruguay S.A. and Difier S.A., their first offering period will have a 5 months duration, commencing on April 1st, 2021; and in respect of IAFH Global S.A., Sistemas Globales S.A., Globers S.A., Dynaflows S.A., Avanxo S.A., BSF S.A., Xappia S.R.L., Decision Support S.A. and Banking Solutions S.A., the offering periods will have 1 month duration, and shall reiterate every 3 months, starting on June 1st, 2021.
Each offering period will have a 6 months duration; provided that in respect to Sistemas UK Limited, Sistemas Globales Uruguay S.A. and Difier S.A., their first offering period will have a 5 months duration, commencing on April 1st, 2021; and in respect of IAFH Global S.A., Sistemas Globales S.A., Globers S.A., Dynaflows S.A., Avanxo S.A., BSF S.A., Xappia S.R.L., Decision Support S.A. and Banking Solutions S.A., the offering periods will have 1 month duration, and shall reiterate every 3 months.
ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 59 A. Directors and Senior Management Directors The table below sets forth information concerning our directors as of the date of this annual report.
ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES A. Directors and Senior Management Directors The table below sets forth information concerning our directors as of the date of this annual report.
McLaughlin holds a J.D. from Harvard Law School, and a B.A. from Yale University. We believe that Mr. McLaughlin is qualified to serve on the board of directors due to his extensive business, management and leadership experience. 63 Alejandro Nicolás Aguzín Mr.
McLaughlin holds a J.D. from Harvard Law School, and a B.A. from Yale University. We believe that Mr. McLaughlin is qualified to serve on the board of directors due to his extensive business, management and leadership experience. 65 Alejandro Nicolás Aguzín Mr.
Duties of our compensation committee include: • reviewing and approving corporate goals and objectives relevant to compensation of our directors, chief executive officer and other members of senior management; • evaluating the performance of the chief executive officer and other members of senior management in light of those goals and objectives; • based on this evaluation, determining and approving the compensation of the chief executive officer and other members of senior management; • administering the issuance of common shares options and other awards to members of senior management and directors under our compensation plans; and • reviewing and evaluating, at least annually, the performance of the compensation committee and its members, including compliance of the compensation committee with its charter.
Duties of our compensation committee include: • reviewing and approving corporate goals and objectives relevant to compensation of our directors, chief executive officer and other members of senior management; • evaluating the performance of the chief executive officer and other members of senior management in light of those goals and objectives; • based on this evaluation, determining and approving the compensation of the chief executive officer and other members of senior management; • administering the issuance of common shares options and other awards to members of senior management and directors under our compensation plans; and • reviewing and evaluating, at least annually, the performance of the compensation committee and its members, including compliance of the compensation committee with its charter. 76 The current members of our compensation committee are Messrs.
Umaran is qualified to serve on our board of directors due to his intimate familiarity with our company and his perspective, experience, and operational expertise in the technology services industry that he has developed during his career as a co-founder of our company. Guibert Englebienne Mr.
Umaran is qualified to serve on our board of directors due to his intimate familiarity with our company and his perspective, experience, and operational expertise in the technology services industry that he has developed during his career as a co-founder of our company. Guibert Englebienne Mr. Englebienne has served as a member of our board of directors since 2003.
A copy of this policy is included as Exhibit 97.1 to this Annual Report. On July 2, 2024, we adopted the 2024 Equity Incentive Plan. See “Compensation—2024 Equity Incentive Plan" below for further information.
A copy of this policy is included as Exhibit 97.1 to this Annual Report. On July 2, 2024, we adopted the 2024 Equity Incentive Plan. See “ Compensation—2024 Equity Incentive Plan " below for further information.
Other stock-based awards may be denominated in cash, in common shares or other securities, in stock-equivalent units, in options, in stock appreciation units, in securities or debentures convertible into common shares, or in any combination of the foregoing and may be paid in common shares or other securities, in cash, or in a combination of common shares or other securities and cash.
Other stock-based awards may be denominated in cash, in common shares or other securities, in stock-equivalent units, in options, in stock appreciation units, in securities or debentures convertible into common shares, or in any combination of the foregoing and may be paid in common shares or other securities, in cash, or in a combination of common shares or other securities and cash. 72 Change in Control.
Share Ownership Share Ownership The total number of shares of the Company beneficially owned by our directors and executive officers, as of the date of this annual report, was 1,062,286 (includes common shares subject to options that are currently exercisable or will be exercisable, and/or issuable upon settlement of RSUs that have vested or will vest, within 60 days from the date of this annual report), which represents 2.41% of the total shares of the Company (including common shares subject to options that are currently exercisable within 60 days of the date of this annual report).
Share Ownership Share Ownership The total number of shares of the Company beneficially owned by our directors and executive officers, as of the date of this annual report, was 1,189,632 (includes common shares subject to options that are currently exercisable or will be exercisable, and/or issuable upon settlement of RSUs that have vested or will vest, within 60 days from the date of this annual report), which represents 2.76% of the total shares of the Company (including common shares subject to options that are currently exercisable within 60 days of the date of this annual report).
Corporate Governance and Nominating Committee Our corporate governance and nominating committee identifies individuals qualified to become directors; recommends to our board of directors director nominees for each election of directors; develops and recommends to our board of directors criteria for selecting qualified director candidates; considers committee member qualifications, appointment and removal; recommends corporate governance guidelines applicable to us; and provides oversight in the evaluation of our board of directors and each committee. 73 The current members of our corporate governance and nominating committee are Ms.
Corporate Governance and Nominating Committee Our corporate governance and nominating committee identifies individuals qualified to become directors; recommends to our board of directors director nominees for each election of directors; develops and recommends to our board of directors criteria for selecting qualified director candidates; considers committee member qualifications, appointment and removal; recommends corporate governance guidelines applicable to us; and provides oversight in the evaluation of our board of directors and each committee.
Name Position Age Date of Appointment Current Term Expiring at Annual Meeting of Shareholders to Be Held in Year Martín Migoya Chairman of the Board and Chief Executive Officer 57 May 10, 2024 2027 Martín Gonzalo Umaran Director - Chief Corporate Development Officer & President for EMEA 56 April 19, 2023 2026 Guibert Andres Englebienne Director - President of Globant X and Globant Ventures - President for Latin America 58 April 19, 2023 2026 Francisco Álvarez-Demalde Director 46 April 22, 2022 2025 Linda Rottenberg Director - Lead Independent Director 56 April 19, 2023 2026 Maria Pinelli Director 62 April 22, 2022 2025 Andrea Mayumi Petroni Merhy Director 49 April 22, 2022 2025 Andrew McLaughlin Director 55 May 10, 2024 2027 Alejandro Nicolas Aguzin Director 56 May 10, 2024 2027 Directors may be re-elected for one or more terms of up to four-years.
Name Position Age Date of Appointment Current Term Expiring at Annual Meeting of Shareholders to Be Held in Year Martín Migoya Chairman of the Board and Chief Executive Officer 58 May 10, 2024 2027 Martín Gonzalo Umaran Director - Chief Corporate Development Officer & President for EMEA 57 April 19, 2023 2026 Guibert Andres Englebienne Director - President of Globant X and Globant Ventures - President for Latin America 59 April 19, 2023 2026 Francisco Álvarez-Demalde Director 47 April 30, 2025 2028 Linda Rottenberg Director - Lead Independent Director 57 April 19, 2023 2026 Maria Pinelli Director 63 April 30, 2025 2028 Andrea Mayumi Petroni Merhy Director 50 April 30, 2025 2028 Andrew McLaughlin Director 56 May 10, 2024 2027 Alejandro Nicolas Aguzin Director 57 May 10, 2024 2027 Directors may be re-elected for one or more terms of up to four-years.
Martín Migoya will receive a compensation equal to his cash and non-cash compensation for 36 months following the date of termination of his employment, and the other founders and certain senior executives will receive a compensation equal to his or her cash and non-cash compensation for 24 months following the date of termination of his or her employment.
Martín Migoya will receive a compensation equal to his cash and non-cash compensation for 36 months following the date of termination of his employment, and the other founders will receive a compensation equal to their cash and non-cash compensation for 24 months following the date of termination of his or her employment.
On November 13, 2024, the board of directors re-appointed Ms. Linda Rottenberg to serve as the lead independent director. D. Employees Our Globers People are one of our most valuable assets.
On November 12, 2025, the board of directors re-appointed Ms. Linda Rottenberg to serve as the lead independent director. D. Employees Our Globers People are one of our most valuable assets.
Pinelli has served as a member of our board of directors since April 2021 and our audit committee since August 2021, and as a chair of the audit committee since June 7, 2024. She is a global C-suite executive and CEO of Strategic Growth Advisors, LLC.
Pinelli has served as a member of our board of directors since April 2021 and our audit committee since August 2021, and as a chair of the audit committee since June 7, 2024. She is a global C-suite executive and CEO of Strategic Growth Advisors, LLC and serves as an advisor to Growth Companies.
Change in Control. In the event of any transaction resulting in a “change in control” of Globant S.A.
In the event of any transaction resulting in a “change in control” of Globant S.A.
Senior Management As of the date of this annual report, our group senior management is made up of the following members: Name Position Martín Migoya Chief Executive Officer Martín Umaran Chief Corporate Development Officer – President for EMEA Guibert Englebienne President of Globant X and Globant Ventures – President for Latin America Juan Ignacio Urthiague Chief Financial Officer Patricia Pomies Chief Operating Officer Yanina Maria Conti Chief Accounting Officer Wanda Weigert Chief Brand Officer Diego Tártara Chief Technology Officer Patricio Pablo Rojo General Counsel The following is the biographical information of the members of our group senior management other than Mrs.
Senior Management As of the date of this annual report, our group senior management is made up of the following members: Name Position Martín Migoya Chief Executive Officer Martín Umaran Chief Corporate Development Officer – President for EMEA Guibert Englebienne President of Globant X and Globant Ventures – President for Latin America Juan Ignacio Urthiague Chief Financial Officer Fernando Matzkin Chief Revenue Officer Wanda Weigert Chief Brand Officer Diego Tártara Chief Technology Officer Patricio Pablo Rojo General Counsel The following is the biographical information of the members of our group senior management other than Mrs.
Until December 31, 2024, the administrator has repurchased 182,000 common shares, and has delivered 140,246 common shares under the plan. 2021 Stock-Equivalent Units On December 1, 2021, the compensation committee, as administrator, approved the granting of awards in the form of stock-equivalent units to be settled in cash or common shares, or a combination thereof, under the 2014 Equity Incentive Plan for the equivalent to 26,000 common shares, subject to the following terms and conditions: Purpose.
Until December 31, 2025, the administrator has repurchased 254,000 common shares, and has delivered 222,864 common shares under the plan. 2021 Stock-Equivalent Units On December 1, 2021, the compensation committee, as administrator, approved the granting of awards in the form of stock-equivalent units to be settled in cash or common shares, or a combination thereof, under the 2014 Equity Incentive Plan for the equivalent to 26,000 common shares, subject to the following terms and conditions: Purpose.
The Company intends to renew the 10b5-1 plan in furtherance of additional future share repurchases for this purpose. 78 Pursuant to such authorization, our board of directors may repurchase up to a maximum number of shares representing 20% of the issued share capital for a net purchase price that is (i) no less than 50% of the lowest stock price and (ii) no more than 50% above the highest stock price, in each case being the closing price, as reported by the New York City edition of the Wall Street Journal, or, if not reported therein, any other authoritative sources to be selected by our board of directors, over the ten trading days preceding the date of the purchase (or the date of the commitment to the transaction).
Pursuant to such authorization, our board of directors may repurchase up to a maximum number of shares representing 20% of the issued share capital for a net purchase price that is (i) no less than 50% of the lowest stock price and (ii) no more than 50% above the highest stock price, in each case being the closing price, as reported by the New York City edition of the Wall Street Journal, or, if not reported therein, any other authoritative sources to be selected by our board of directors, over the ten trading days preceding the date of the purchase (or the date of the commitment to the transaction).
She currently serves as a member of the Board of Directors, Chair of the Audit Committee for International Game Technology, PLC., and as a member of the Board of Directors, Chair of the Audit Committee, and member of the Compensation Committee for Archer Aviation, Inc. From 2020 to 2022, Ms.
She currently serves as a member of the Board of Directors, Chair of the Audit Committee for Brightstar Lottery, PLC., and as a member of the Board of Directors, Chair of the Audit Committee, and member of the Compensation Committee for Archer Aviation, Inc. From 2020 to 2022, Ms.
The current members of our compensation committee are Messrs. Alvarez Demalde, Andrew McLaughlin and Alejandro Nicolas Aguzin, with Mr. Alvarez Demalde serving as chairman. Each of Messrs. Alvarez Demalde, McLaughlin and Aguzin satisfies the “independence” requirements within the meaning of Section 303A of the corporate governance rules of the NYSE.
Alvarez Demalde, Andrew McLaughlin and Alejandro Nicolas Aguzin, with Mr. Alvarez Demalde serving as chairman. Each of Messrs. Alvarez Demalde, McLaughlin and Aguzin satisfies the “independence” requirements within the meaning of Section 303A of the corporate governance rules of the NYSE.
Petroni Merhy and Messrs. Alvarez-Demalde and Andrew McLaughlin, with Ms. Petroni Merhy serving as chairman. Each of Ms. Petroni Merhy and Messrs. Alvarez-Demalde and McLaughlin satisfies the “independence” requirements within the meaning of Section 303A of the corporate governance rules of the NYSE.
The current members of our corporate governance and nominating committee are Ms. Petroni Merhy and Messrs. Alvarez-Demalde and Andrew McLaughlin, with Ms. Petroni Merhy serving as chairman. Each of Ms. Petroni Merhy and Messrs. Alvarez-Demalde and McLaughlin satisfies the “independence” requirements within the meaning of Section 303A of the corporate governance rules of the NYSE.
Our board of directors may also make decisions by means of resolutions in writing signed by all directors. 71 Directors are elected by the general meeting of shareholders, and appointed for a period of up to four years; provided, however, that directors are elected on a staggered basis, with one-third of the directors being elected each year; and provided, further, that such term may be exceeded by a period up to the annual general meeting held following the fourth anniversary of the appointment, and each director will hold office until his or her successor is elected.
Directors are elected by the general meeting of shareholders, and appointed for a period of up to four years; provided, however, that directors are elected on a staggered basis, with one-third of the directors being elected each year; and provided, further, that such term may be exceeded by a period up to the annual general meeting held following the fourth anniversary of the appointment, and each director will hold office until his or her successor is elected.
If the acquiring or successor corporation does not assume or substitute for outstanding purchase rights, then the purchase date of the offering periods then in progress will be accelerated to a date prior to the change in control.
If the acquiring or successor corporation does not assume or substitute for outstanding purchase rights, then the purchase date of the offering periods then in progress will be accelerated to a date prior to the change in control. The ESPP will continue in effect until terminated by the administrator.
Emerging from Alphabet Inc. in 2022, Sandbox AQ combines AI and quantum technologies to address challenging problems in cybersecurity, life sciences and healthcare, materials science & manufacturing, global navigation, and financial services.
McLaughlin is the Chief Operating Officer of SandboxAQ. Emerging from Alphabet Inc. in 2022, Sandbox AQ combines AI and quantum technologies to address challenging problems in cybersecurity, life sciences and healthcare, materials science & manufacturing, global navigation, and financial services.
We achieve this by providing opportunities to work on innovative projects for world-class clients, fostering a flexible work environment, offering continuous learning and development programs, and providing unique benefits that enhance the employee experience.
We achieve this by providing opportunities to work on innovative projects for world-class clients, fostering a flexible work environment, offering continuous learning and development programs, and providing unique benefits that enhance the employee experience. Career Value Proposition We provide a dynamic environment designed to foster both personal and professional growth.
He has led investments in or is a current or former Director or Advisor of several technology companies, including 99, Alog Data Centers do Brasil, BigID, Billtrust (Nasdaq: BTRS), Cloudblue, Dock, Globant (NYSE: GLOB), GOintegro, Greenhouse, Industrious, Insider, LAVCA, Mandic, MotionPoint, Navent, Nubox, Pixeon, RD Station, SecurityScorecard, Shiphero, Technisys, among others. Mr.
He has led investments in or is a current or former Director or Advisor of several technology companies, including 99, Alog Data Centers do Brasil, AppZen, BigID, Billtrust (NASDAQ: BTRS), Cloudblue, Cognosos, CRM&Bonus, Dock, Globant (NYSE: GLOB), Greenhouse, Industrious, Insider, Invgate, Jobint, Mandic, MotionPoint, Navent, Omie, OneModel, Pixeon, RD Station, SecurityScorecard, Sensedia, Shiphero, SUMA, Technisys, and VTEX (NYSE: VTEX), among others.
No indemnification will be provided with respect to any matter as to which the director or officer shall have been finally adjudicated to have acted in bad faith and not in our interest, nor will indemnification be provided in the event of a settlement (unless approved by a court or our board of directors).
No indemnification will be provided with respect to any matter as to which the director or officer shall have been finally adjudicated to have acted in bad faith and not in our interest, nor will indemnification be provided in the event of a settlement (unless approved by a court or our board of directors). 75 Board Committees Our board of directors has established an audit committee, a compensation committee and a corporate governance and nominating committee, as well as the position of lead independent director.
Operation of the ESPP; Participant Contributions The ESPP will typically be implemented through consecutive six-month offering periods, and permits participants to purchase common shares through payroll deductions of up to 10.0% of their eligible compensation, which includes regular base wages or salary, overtime payments, shift premiums and payments for paid time off, but exclusive of sign-on bonuses, annual or other incentive bonuses, commissions, profit-sharing distributions or other incentive-type payments, any contributions made by a participating company on the employee’s behalf to any employee benefit or welfare plan now or hereafter established (other than amounts deferred pursuant to Section 401(k) or Section 125 of the Code), payments in lieu of notice, payments pursuant to a severance agreement, termination pay, moving allowances, relocation payments, or any amounts directly or indirectly paid pursuant to the ESPP or any other share purchase, share option or other share-based compensation.
Operation of the ESPP; Participant Contributions The ESPP will typically be implemented through consecutive six-month offering periods, and permits participants to purchase common shares through payroll deductions of up to 10.0% of their eligible compensation, which includes regular base wages or salary, overtime payments, shift premiums and payments for paid time off, but exclusive of sign-on bonuses, annual or other incentive bonuses, commissions, profit-sharing distributions or other incentive-type payments, any contributions made by a participating company on the employee’s behalf to any employee benefit or welfare plan now or hereafter established (other than amounts deferred pursuant to Section 401(k) or Section 125 of the Code), payments in lieu of notice, payments pursuant to a severance agreement, termination pay, moving allowances, relocation payments, or any amounts directly or indirectly paid pursuant to the ESPP or any other share purchase, share option or other share-based compensation. 82 Notwithstanding the foregoing, where payroll deductions on behalf of participants who are citizens or residents of countries other than the United States (without regard to whether they are also citizens of the United States or resident aliens) are prohibited or made impracticable by applicable local law, our compensation committee may establish a separate offering (a “Non-United States Offering”) covering all eligible employees of one or more participating companies subject to such prohibition or restrictions on payroll deductions.
Subject to adjustment as provided by the ESPP and unless otherwise provided by our compensation committee, the purchase price for each offering period shall be 90.0% of the fair market value of a common share on the purchase date. 79 On the offering date of each offering period, each participant in such offering period will be automatically granted an option to purchase the lesser of (a) that number of whole common shares determined by dividing the Dollar Limit (as defined below) by the fair market value of a common share on such offering date or (b) the Share Limit (as defined below).
On the offering date of each offering period, each participant in such offering period will be automatically granted an option to purchase the lesser of (a) that number of whole common shares determined by dividing the Dollar Limit (as defined below) by the fair market value of a common share on such offering date or (b) the Share Limit (as defined below).
Englebienne has served as a member of our board of directors since 2003 In 2021, Mr. Englebienne became President of Globant X and Globant Ventures to help drive the success of these initiatives. He also was appointed President for Latin America, a role to provide strategic advice to our regional leadership. Mr.
In 2021, Mr. Englebienne became President of Globant X and Globant Ventures to help drive the success of these initiatives. He also was appointed President for Latin America, a role to provide strategic advice to our regional leadership. Mr. Englebienne previously served as our Chief Technology Officer from 2003 to 2021. He is one of Globant’s co-founders.
Conti is in charge of accounting, payroll, external audit and reporting. Mrs. Conti has a degree in business administration from the Universidad de Buenos Aires and is a chartered accountant. Wanda Weigert Mrs. Weigert has been our Chief Brand Officer since November 2018. From 2007 to 2018, she served as our Communications Manager and Director of Communications and Marketing.
Matzkin holds a Bachelor’s degree in Business Administration and a Bachelor’s degree in Information Systems from the Universidad de Buenos Aires. Wanda Weigert Mrs. Weigert has been our Chief Brand Officer since November 2018. From 2007 to 2018, she served as our Communications Manager and Director of Communications and Marketing.
As of the 2014 Equity Incentive Plan Termination Date, an aggregate of 1,629,664 common shares remained subject to outstanding awards previously granted under the 2014 Equity Incentive Plan.
As of December 31, 2025, an aggregate of 1,012,902 common shares remained subject to outstanding awards previously granted under the 2014 Equity Incentive Plan.
Englebienne is President of Endeavor Argentina. In 2011, he was included in Globalization Today’s “Powerful 25” list. Mr. Englebienne holds a bachelor’s degree in Computer Science and Software Engineering from the Universidad Nacional del Centro de la Provincia de Buenos Aires in Argentina. We believe that Mr.
Englebienne holds a bachelor’s degree in Computer Science and Software Engineering from the Universidad Nacional del Centro de la Provincia de Buenos Aires in Argentina. We believe that Mr.
Common Shares Subject to the ESPP Subject to adjustment as provided in the ESPP, the maximum aggregate number of common shares issuable under the ESPP shall be 100,000 common shares (the “Initial Total Share Pool”), of which 30,000 common shares (the “Initial 423 Pool”) shall be the maximum aggregate number of common shares that may be issued under the Section 423 ESPP.
Eligible employees will be allowed to participate in the ESPP with a limit of $25,000 investment per employee per calendar year. 81 Common Shares Subject to the ESPP Subject to adjustment as provided in the ESPP, the maximum aggregate number of common shares issuable under the ESPP shall be 100,000 common shares (the “Initial Total Share Pool”), of which 30,000 common shares (the “Initial 423 Pool”) shall be the maximum aggregate number of common shares that may be issued under the Section 423 ESPP.
In this respect, independent members of our board of directors are eligible to receive cash and/or share based compensation for their services as directors, as well as reimbursement of reasonable and documented costs and expenses incurred by them in connection with attending any meetings of our board of directors or any committees thereof.
In this respect, independent members of our board of directors are eligible to receive cash and/or share based compensation for their services as directors, as well as reimbursement of reasonable and documented costs and expenses incurred by them in connection with attending any meetings of our board of directors or any committees thereof. 73 During 2025, we paid an aggregate cash compensation of $600,000 and we granted a total of 12,747 RSUs to the independent members of our board of directors, as further described below.
From the adoption of the 2024 Equity Incentive Plan until December 31, 2024 we granted to members of our senior management and certain other employees 157,847 RSUs and PRSUs, net of any cancelled and/or forfeited awards.
From the adoption of the 2024 Equity Incentive Plan until December 31, 2025 we granted to members of our senior management and certain other employees 545,522 RSUs and PRSUs, net of any cancelled and/or forfeited awards. See " Liquidity and Capital Resources — Equity Compensation Arrangements " above for further information.
Alvarez-Demalde earned a Licentiate (Honors) in Economics from Universidad de San Andres, Argentina (including an exchange program at the Wharton School).
Alvarez-Demalde earned a Licentiate (Honors) in Economics from Universidad de San Andrés in Argentina, with additional studies at the Wharton School.
McLaughlin is also a member of the board of directors and the executive committee of the Starknet Foundation, a permissionless protocol to scale Ethereum while retaining Ethereum’s security and decentralization. From 2017 to 2018, Mr.
McLaughlin served as founding President & COO of Assembly OSM, a fast-growing, venture-backed startup transforming the methods of constructing urban buildings. Mr. McLaughlin is also a member of the board of directors and the executive committee of the Starknet Foundation, a permissionless protocol to scale Ethereum while retaining Ethereum’s security and decentralization. From 2017 to 2018, Mr.
At Globant, Globers can tailor their career by exploring pathways that support different aspects of their development: • Become an Expert: Specialize in specific clients, industries, or cutting-edge technologies. • Build a Holistic Career: Diversify their experience across various sectors and technologies. • Lead Teams and Individuals: Step into leadership roles to guide teams and mentor others. • Lead Projects and Specialties: Manage projects while becoming a Subject Matter Expert in key technologies.
In the past year, 8.4% of Globers were promoted, reflecting their progress and readiness to take on more complex and challenging roles. 79 At Globant, Globers can tailor their careers by exploring pathways that support different development goals: • Become an Expert: Specialize in specific clients, industries, or cutting-edge technologies. • Build a Holistic Career: Diversify experience across sectors and technologies. • Lead Teams and Individuals: Step into leadership roles to guide teams and mentor others. • Lead Projects and Specialties: Manage projects while developing subject-matter expertise. • Develop a Global Mindset: Collaborate with multicultural teams and access mobility opportunities.
Further, our compensation committee, as administrator of the ESPP, may at any time amend, suspend or terminate the ESPP, except that (a) no such amendment, suspension or termination shall affect purchase previously granted under the ESPP unless expressly provided by the Compensation Committee, and (b) no such amendment, suspension or termination may adversely affect a purchase right previously granted under the ESPP without the consent of the participant, except to the extent permitted by the ESPP or as may be necessary to qualify the ESPP as an employee stock purchase ESPP pursuant to Section 423 of the Code or to comply with any applicable law, regulation or rule.
Administration, Amendment or Termination of the ESPP In accordance with the terms of the ESPP, our compensation committee will administer the ESPP, including, but not limited to, have full authority to interpret the terms of the ESPP, have the discretion to determine from time to time which subsidiaries shall be participating companies in the ESPP, designate from time to time those participating companies whose eligible employees may participate in the Section 423 ESPP and those participating companies whose eligible employees may participate in the Non-423 ESPP, establish additional or alternative offering periods, different durations for offering periods or different commencing or ending dates for offering periods. 83 Further, our compensation committee, as administrator of the ESPP, may at any time amend, suspend or terminate the ESPP, except that (a) no such amendment, suspension or termination shall affect purchase previously granted under the ESPP unless expressly provided by the Compensation Committee, and (b) no such amendment, suspension or termination may adversely affect a purchase right previously granted under the ESPP without the consent of the participant, except to the extent permitted by the ESPP or as may be necessary to qualify the ESPP as an employee stock purchase ESPP pursuant to Section 423 of the Code or to comply with any applicable law, regulation or rule.
Performance targets may include minimum, maximum, intermediate and target levels of performance, with the size of the performance-based stock award or the lapse of restrictions with respect thereto based on the level attained. 67 A performance target may be stated as an absolute value or as a value determined relative to prior performance, one or more indexes, budget, one or more peer group companies, any other standard selected by the administrator, or any combination thereof.
A performance target may be stated as an absolute value or as a value determined relative to prior performance, one or more indexes, budget, one or more peer group companies, any other standard selected by the administrator, or any combination thereof.
Attracting and retaining the right employees is critical to the success of our business and is a key factor in our ability to meet our client’s needs and the growth of our client and revenue base. As of December 31, 2024, 2023 and 2022, on a consolidated basis, we had 31,280, 29,150 and 27,122 employees, respectively.
Attracting and retaining the right employees is critical to the success of our business and is a key factor in our ability to meet our client’s needs and the growth of our client and revenue base.
Board Committees Our board of directors has established an audit committee, a compensation committee and a corporate governance and nominating committee, as well as the position of lead independent director. Our board of directors may from time to time establish other committees. Audit Committee Our audit committee oversees our corporate accounting and financial reporting process.
Our board of directors may from time to time establish other committees. Audit Committee Our audit committee oversees our corporate accounting and financial reporting process.
See “ Compensation — 2014 Equity Incentive Plan ” below for further information. In addition, we replaced our then existing variable compensation arrangements with a new short-term incentive plan providing for the payment of bonuses based on the achievement of certain financial and operating performance measures.
Upon completion of our initial public offering we replaced our then existing variable compensation arrangements with a new short-term incentive ("STI") plan providing for the payment of bonuses based on the achievement of certain financial and operating performance measures and adopted the 2014 Equity Incentive Plan. The STI applies to middle management positions and above, including executive officers.
All such compensation had been approved by our shareholders at our 2024 annual general meeting: Name Cash Compensation RSUs RSUs value as of grant date Total Compensation Francisco Álvarez-Demalde $ 100,000 676 $ 136,813 $ 236,813 Linda Rottenberg $ 100,000 841* $ 174,092 $ 274,092 Maria Pinelli $ 100,000 676 $ 136,813 $ 236,813 Andrea Mayumi Petroni Merhy $ 100,000 676 $ 136,813 $ 236,813 Andrew McLaughlin** $ 75,000 564 $ 111,918 $ 186,918 Alejandro Nicolas Aguzin*** $ 75,000 564 $ 111,918 $ 186,918 Philip Odeen**** $ 50,000 112 $ 24,895 $ 74,895 Totals $ 600,000 4,109 $ 833,262 $ 1,433,262 _______________ * As additional compensation for her role as Lead Independent Director during 2024, Mrs.
All such compensation had been approved by our shareholders at our 2024 annual general meeting: Name Cash Compensation RSUs RSUs value as of grant date Total Compensation Francisco Álvarez-Demalde $ 100,000 1,821 $ 149,886 $ 249,886 Linda Rottenberg* $ 100,000 3,642 $ 299,772 $ 399,772 Maria Pinelli $ 100,000 1,821 $ 149,886 $ 249,886 Andrea Mayumi Petroni Merhy $ 100,000 1,821 $ 149,886 $ 249,886 Andrew McLaughlin $ 100,000 1,821 $ 149,886 $ 249,886 Alejandro Nicolas Aguzin $ 100,000 1,821 $ 149,886 $ 249,886 Totals $ 600,000 12,747 $ 1,049,202 $ 1,649,202 _______________ * As additional compensation for her role as Lead Independent Director during 2025, Mrs.
As Globant’s Chief Technology Officer, he oversees the technological development of Globant's diverse Studios, each a deep pocket of expertise with a focus on incorporating the latest trends to bring solutions to global companies. Together with his three Globant co-founders, Mr. Englebienne was selected as an Endeavor Entrepreneur in 2005. In addition to his responsibilities at Globant, Mr.
Prior to co-founding Globant, Mr. Englebienne worked as a scientific researcher at IBM and, later, as head of technology for CallNow.com Inc. As Globant’s Chief Technology Officer, he oversees the technological development of Globant's diverse Studios, each a deep pocket of expertise with a focus on incorporating the latest trends to bring solutions to global companies.
The compensation committee further approved that the maximum number of authorized stock-equivalent units may be increased to the extent that the total share-based compensation of the Company during 2022 does not exceed an amount equal to 3.2% of the Company's consolidated revenues during 2022. 81 From its adoption until the 2014 Equity Incentive Plan Termination Date, we have granted to eligible employees 35,142 SEUs and PSEUs, net of any cancelled and/or forfeited awards.
The compensation committee further approved that the maximum number of authorized stock-equivalent units may be increased to the extent that the total share-based compensation of the Company during 2022 does not exceed an amount equal to 3.2% of the Company's consolidated revenues during 2022.
Of the stock-equivalent units granted, 50% were in the form of PSEUs and 50% were in the form of SEUs. There were 16,586, 28,059 and 57,258 SEUs and PSEUs outstanding as of December 31, 2024, 2023 and 2022, respectively. E.
There were 6,957, 16,586 and 28,059 SEUs and PSEUs outstanding as of December 31, 2025, 2024 and 2023, respectively. E.
He is also a member of the Asia Pacific Council of the Nature Conservancy. He holds a Bachelor of Science degree in Economics from the Wharton School of the University of Pennsylvania and is fluent in Spanish, Portuguese and English. We believe that Mr.
In addition, he serves on the Asia Pacific Leadership Council of The Nature Conservancy and the Asia Pacific Leadership Committee of the University of Pennsylvania. Born in Argentina, Mr. Aguzin earned a Bachelor of Science in Economics from the Wharton School of the University of Pennsylvania. We believe that Mr.
Petroni Merhy holds a bachelor’s degree in Business Administration from Escola de Administração de Empresas Fundação Getúlio Vargas in Brazil. We believe that Ms. Petroni Merhy is qualified to serve on our board of directors due to her extensive business experience, risk management expertise and financial understanding.
Petroni Merhy holds a bachelor’s degree in Business Administration from Escola de Administração de Empresas Fundação Getúlio Vargas in Brazil. We believe that Ms.
The ESPP will continue in effect until terminated by the administrator. 80 On March 12, 2021, the administrator approved the participation in the Section 423 ESPP and Non-423 ESPP by several of the company's subsidiaries, pursuant to the following terms and conditions: Eligibility.
On March 12, 2021, the administrator approved the participation in the Section 423 ESPP and Non-423 ESPP by several of the company's subsidiaries, pursuant to the following terms and conditions: Eligibility. In addition to those employees excluded under the plan, trainees or college trainees and fixed-term employees will also be excluded from the plan. Offering periods.
Alvarez-Demalde is also a Global Ambassador with Endeavor, a director of illumyn Impact, Founder of LTF and Digitar, and interested in nonprofit initiatives related to education. We believe that Mr.
Mr. Alvarez-Demalde is also a Global Ambassador with Endeavor, Chairman of The Association for Private Capital Investment in Latin America (LAVCA), a Director of illumyn Impact, Founder of LTF and Digitar, and is actively involved in non-profit initiatives focused on education. We believe that Mr.
See "Liquidity and Capital Resources — Equity Compensation Arrangements" above for further information. 2014 Equity Incentive Plan On July 3, 2014, our board of directors and shareholders approved and adopted our 2014 Equity Incentive Plan, which was amended on May 9, 2016, February 13, 2019, May 18, 2021 and June 8, 2022.The 2014 Equity Incentive Plan expired on the 2014 Equity Incentive Plan Termination Date and no awards were or will be granted under the plan after such date; provided that, subject to the applicable provisions of the 2014 Equity Incentive Plan, all outstanding awards that were subject to being satisfied or terminated under the plan as of the 2014 Equity Incentive Plan Termination Date, will remain outstanding in accordance with the terms of the 2014 Equity Incentive Plan.
The 2014 Equity Incentive Plan expired on the 2014 Equity Incentive Plan Termination Date and no awards were or will be granted under the plan after such date; provided that, subject to the applicable provisions of the 2014 Equity Incentive Plan, all outstanding awards that were subject to being satisfied or terminated under the plan as of the 2014 Equity Incentive Plan Termination Date, will remain outstanding in accordance with the terms of the 2014 Equity Incentive Plan.
She is a Managing Director, Head of Business Advisory & Execution and member of the Management Committee for the Investment and Corporate Banking in Asia Pacific at JPMorgan Chase. Prior to that, Ms.
Prior to that, she was the Head of Business Advisory & Execution, member of the Global Banking Asia Pacific Management Committee, Chair of the Asia Pacific Banking Business Selection Committee, and a member of JPMorgan Asia Pacific Reputation Risk Committee. Before moving to Asia Pacific, Ms.
Common shares issued under the ESPP may consist of common shares reacquired in open market purchases. On May 28, 2024, we entered into a 10b5-1 repurchase plan with HSBC Securities (USA) Inc., acting as agent for us, for the repurchase of an aggregate of up to 48,000 common shares. The 10b5-1 repurchase plan will expire on March 7, 2025.
On May 29, 2025, we entered into a 10b5-1 repurchase plan (the "2025 HSBC 10b5-1 Plan") with HSBC Securities (USA) Inc., acting as agent for the Company, for the repurchase of an aggregate of up to 80,000 common shares in four windows, starting on July 15, 2025 and ending on March 3, 2026.
Globers are equipped with the tools and tangible opportunities to advance their careers and own their professional journey. Our flexible work culture fosters innovation and provides tools for continuous growth, such as self-learning and collaboration, to shape Globers' careers. Globant is actively investing in each Glober's future, recognizing their work and providing opportunities for growth.
Globers are equipped with the tools and tangible opportunities to advance their careers and own their professional journey. Globant actively invests in each Glober’s future by recognizing performance and creating opportunities for growth.
Our Talent Delivery Centers are designed to stay closely connected to the business, ensuring scalability, adaptability, and deep integration with regional markets. This approach enables us to align recruitment strategies with business priorities, delivering a seamless and high impact hiring process.
Our Talent Delivery Centers remain closely connected to the business, ensuring scalability, adaptability, and strong regional integration. This structure enables us to align recruitment priorities with business strategy, delivering a seamless and high-impact hiring process. 78 Throughout 2025, we continued strengthening our recruiting presence in our core, long-standing markets with sustained hiring demand, including Colombia, Argentina, and India.

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Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

13 edited+1 added−2 removed13 unchanged
Biggest changeAs of February 24, 2025 we had 189 holders of record in the United States holding approximately 95.7% of our issued and outstanding common shares. 82 Number Percent Martín Migoya (1) 278,976 * Guibert Englebienne (2) 296,899 * Martín Umaran (3) 417,321 * Francisco Álvarez-Demalde (4) 16,480 * Linda Rottenberg (5) 3,882 * Maria Pinelli (6) 1,400 * Andrea Mayumi Petroni Merhy (7) 1,017 * Andrew McLaughlin 0 * Alejandro Nicolas Aguzin 10,000 * Juan Ignacio Urthiague (8) 12,327 * Patricia Pomies 5,724 * Yanina Maria Conti 551 * Patricio Pablo Rojo 10,605 * Wanda Weigert (9) 5,282 * Diego Tártara 1,822 * All Directors and Senior Management as a group 1,062,286 2.41 % *Less than 1% 5% or More Shareholders: T.
Biggest changeNumber Percent Martín Migoya (1) 337,194 * Guibert Englebienne (2) 308,360 * Martín Umaran (3) 417,321 * Francisco Álvarez-Demalde (4) 17,405 * Linda Rottenberg (5) 5,133 * Maria Pinelli (6) 2,225 * Andrea Mayumi Petroni Merhy (7) 1,842 * Andrew McLaughlin (8) 825 * Alejandro Nicolas Aguzin (9) 20,825 * Juan Ignacio Urthiague (10) 21,522 * Fernando Matzkin 12,272 * Patricio Pablo Rojo 16,812 * Wanda Weigert (11) 14,533 * Diego Tártara 13,363 * All Directors and Senior Management as a group 1,189,632 2.76 % *Less than 1% 5% or More Shareholders: GIC Private Limited (12) 3,281,030 7.60 % Brandes Investment Partner, LP (13) 2,309,031 5.35 % Capital International Investors (14) 2,354,243 5.45 % * Represents beneficial ownership of less than 1%.
Angerona Group Administration Limited is the sole director of the BVI company and holds voting and dispositive power over the 127,166 common shares held by such entity. (3) Includes 37,500 common shares issuable upon exercise of vested options and 259,241 common shares held by a revocable trust formed under Wyoming law (the “Revocable Umaran Trust Shares”) by Mr.
Angerona Group Administration Limited is the sole director of the BVI company and holds voting and dispositive power over the 127,166 common shares held by such entity. (3) Includes 20,000 common shares issuable upon exercise of vested options and 259,241 common shares held by a revocable trust formed under Wyoming law (the “Revocable Umaran Trust Shares”) by Mr.
Angerona Group Administration Limited is the sole director of the BVI company and holds voting and dispositive power over the 259,241 common shares held by such entity. (4) Includes 112 common shares issuable upon settlement of RSUs and 1,013 common shares held by NPI Group FLP. Mr.
Angerona Group Administration Limited is the sole director of the BVI company and holds voting and dispositive power over the 259,241 common shares held by such entity. 86 (4) Includes 261 common shares issuable upon settlement of RSUs and 1,113 common shares held by NPI Group FLP. Mr.
Major Shareholders The following table sets forth information regarding beneficial ownership of our common shares as of February 24, 2025 (except where noted) by: • each of our directors and members of senior management individually; • all directors and members of senior management as a group; and • each shareholder whom we know to own beneficially more than 5% of our common shares.
Major Shareholders The following table sets forth information regarding beneficial ownership of our common shares as of February 24, 2025 (except where noted) by: • each of our directors and members of senior management individually; • all directors and members of senior management as a group; and • each shareholder whom we know to own beneficially more than 5% of our common shares. 85 As of February 24, 2026, we had 43,179,556 issued and outstanding common shares.
It has sole voting power and sole dispositive power with respect to 2,265,777 shares, which it manages on behalf of the Government of Singapore ("GoS") under an investment management agreement. It also has shared voting power and shared dispositive power with respect to 457,135 shares with the Monetary Authority of Singapore ("MAS").
It has sole voting power and sole dispositive power with respect to 2,717,764 shares, which it manages on behalf of the Government of Singapore ("GoS") under an investment management agreement. It also has shared voting power and shared dispositive power with respect to 563,266 shares with the Monetary Authority of Singapore ("MAS").
Angerona Group Administration Limited is the sole director of the BVI company and holds voting and dispositive power over the 147,040 common shares held by such entity. (2) Includes 50,000 common shares issuable upon exercise of vested options and 127,166 common shares held by a revocable trust formed under Wyoming law (the “Revocable Englebienne Trust Shares”) by Mr.
Angerona Trust Company LLC acts as the independent trustee of the trust. Angerona Group Administration Limited is the sole director of the BVI company and holds voting and dispositive power over the 147,040 common shares held by such entity. (2) Includes 127,166 common shares held by a revocable trust formed under Wyoming law (the “Revocable Englebienne Trust Shares”) by Mr.
Alvarez Demalde holds voting and investment power over the shares held by NPI Group FLP. (5) Includes 112 common shares issuable upon settlement of RSUs. (6) Includes 112 common shares issuable upon settlement of RSUs. (7) Includes 112 common shares issuable upon settlement of RSUs. (8) Includes 1,500 common shares issuable upon exercise of vested options.
Alvarez Demalde holds voting and investment power over the shares held by NPI Group FLP. (5) Includes 522 common shares issuable upon settlement of RSUs. (6) Includes 261 common shares issuable upon settlement of RSUs. (7) Includes 261 common shares issuable upon settlement of RSUs. (8) Includes 261 common shares issuable upon settlement of RSUs.
Migoya that was established for the benefit of Mr. Migoya, his wife and certain charitable organizations. Subsequently, the trust transferred its Revocable Migoya Trust Shares to a BVI company wholly owned by the trust. Angerona Trust Company LLC acts as the independent trustee of the trust.
(1) Includes 147,040 common shares held by a revocable trust formed under Wyoming law (the “Revocable Migoya Trust Shares”) by Mr. Migoya that was established for the benefit of Mr. Migoya, his wife and certain charitable organizations. Subsequently, the trust transferred its Revocable Migoya Trust Shares to a BVI company wholly owned by the trust.
As of February 24, 2025, we had 44,045,558 issued and outstanding common shares. Beneficial ownership for the purposes of the following table is determined in accordance with the rules and regulations of the SEC.
Beneficial ownership for the purposes of the following table is determined in accordance with the rules and regulations of the SEC.
Morgan Chase & Co.´s principal business office is 383 Madison Avenue, New York, NY 10179, United States. B. Related Party Transactions For a summary of our revenue and expenses and receivables and payables with related parties, please see note 24 to our audited consolidated financial statements.
The address of Capital International Investors is 333 South Hope Street, 55th Floor, Los Angeles, California 90071, United States. B. Related Party Transactions For a summary of our revenue and expenses and receivables and payables with related parties, please see note 24 to our audited consolidated financial statements.
(13) Based on a Schedule 13G filed with the SEC on January 10, 2024, J.P. Morgan Chase & Co. beneficially owns 2,292,516 of our common shares; has sole voting power with respect to 1,947,932 shares, and shared voting power with respect to 15,156 shares. It has sole dispositive power with respect to 2,292,516 shares. The address of J.P.
(13) Based on a Schedule 13G filed with the SEC on November 12, 2025, Brandes Investment Partners, LP beneficially owns 2,309,031 of our common shares; has shared voting power with respect to 1,830,990 shares and shared dispositive power with respect to 2,309,031 shares.
(9) Includes 5,000 common shares issuable upon exercise of vested options. (10) Based on a Schedule 13G/A filed with the SEC on February 14, 2025, T. Rowe Price Associates, Inc. beneficially owns 4,441,854 of our common shares; has sole voting power with respect to 4,330,738 shares, and sole dispositive power with respect to 4,441,854 shares. The address of T.
(9) Includes 261 common shares issuable upon settlement of RSUs. (10) Includes 1,500 common shares issuable upon exercise of vested options. (11) Includes 5,000 common shares issuable upon exercise of vested options. (12) Based on a Schedule 13G/A filed with the SEC on May 7, 2025, GIC Private Limited beneficially owns 3,281,030 of our common shares.
Rowe Price Associates, Inc.'s principal place of business is 100 E. Pratt Street, Baltimore, MD 21202, United States. 83 (11) Based on a Schedule 13G/A filed with the SEC on February 9, 2024, Wasatch Advisors, LP beneficially owns 3,145,883 of our common shares, and has sole and dispositive power with respect to all of such shares.
The address of Brandes Investment Partners, LP´s principal business office is 4275 Executive Square, Fifth Floor, La Jolla, California 92037, United States. (14) Based on a Schedule 13G filed with the SEC on February 13, 2026, Capital International Investors beneficially owns 2,354,243 of our common shares, and has sole and dispositive power with respect to all of such shares.
Removed
Rowe Price Associates, Inc. (10) 4,441,854 10.08 % Wasatch Advisors, LP (11) 3,145,883 7.14 % GIC Private Limited (12) 2,722,912 6.18 % J.P. Morgan Chase & Co (13) 2,292,516 5.20 % * Represents beneficial ownership of less than 1%. (1) Includes 147,040 common shares held by a revocable trust formed under Wyoming law (the “Revocable Migoya Trust Shares”) by Mr.
Added
As of February 24, 2026 we had 167 holders of record in the United States holding approximately 91.36% of our issued and outstanding common shares.
Removed
The address of Wasatch Advisors, LP's principal business office is 505 Wakara Way, Salt Lake City, UT 84108, United States. (12) Based on a Schedule 13G/A filed with the SEC on November 1, 2024, GIC Private Limited beneficially owns 2,722,912 of our common shares.