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GLOB, Globant S.A.

IT Services & Consulting asset-light

A software business, earning high margins on code once it is written.

Latest annual: FY2025 20-F

GLOB · Globant S.A.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$2.5B

+1.6% YoY · 25% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $2.5B 5-yr avg $2.0B

Gross margin 35% 5-yr avg 37%

Operating margin 7.0% 5-yr avg 9.7%

ROIC 6% 5-yr avg 10%

Owner-earnings margin 11% 5-yr avg 11%

Free cash flow margin 11% 5-yr avg 11%

The business in brief

What this business is and what moves its needle, from its own SEC filings.

What moves the needle: Gross margin has run about 37% and operating margin about 10% through the cycle, a solid spread between what it charges and what the product costs to make. Read this kind of business on retention and the cost of growth.
Is it a good business?: Return on capital has sat near the cost of capital (median 13%). The steadier read is owner earnings: roughly 10% of revenue reaches owners as cash, consistently. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 20-F →

Revenue spreads across 4 regions, the largest North America at 54%.

Revenue by geography, FY2025

North America54%$1.3B
Latin America20%$493M
Europe19%$469M
New Markets6%$160M

From the segment footnote of the company's own 20-F. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMDec 2025
											Income statement
$323M	$413M	$522M	$659M	$814M	$1.3B	$1.8B	$2.1B	$2.4B	$2.5B	$2.5B	RevenueRevenue
41%	36%	39%	39%	37%	38%	38%	36%	36%	35%	35%	Gross marginGross mgn
$50M	$33M	$67M	$81M	$84M	$144M	$207M	$199M	$225M	$172M	$172M	Operating incomeOp. inc.
15.4%	8.0%	12.8%	12.2%	10.3%	11.1%	11.6%	9.5%	9.3%	7.0%	7.0%	Operating marginOp. mgn
$36M	$31M	$52M	$54M	$54M	$96M	$149M	$159M	$166M	$103M	$103M	Net incomeNet inc.
29%	21%	23%	22%	29%	23%	23%	20%	20%	25%	25%	Effective tax rateTax rate
											Cash flow & returns
$31M	$43M	$67M	$80M	$100M	$179M	$198M	$319M	$249M	$301M	$301M	Operating cash flowOp. cash
$6M	$9M	$11M	$15M	$16M	$20M	$25M	$33M	$36M	$34M	$34M	DepreciationDeprec.
($11M)	$3M	$4M	$11M	$30M	$63M	$23M	$127M	$47M	$165M	$165M	Working capital & otherWC & other
$18M	$20M	$19M	$20M	$29M	$43M	$47M	$45M	$28M	$19M	$19M	CapexCapex
5.5%	4.7%	3.7%	3.1%	3.6%	3.3%	2.6%	2.2%	1.1%	0.8%	0.8%	Capex / revenueCapex/rev
$25M	$34M	$56M	$65M	$84M	$159M	$172M	$286M	$221M	$282M	$282M	Owner earningsOwner earn.
7.8%	8.2%	10.7%	9.9%	10.3%	12.3%	9.7%	13.6%	9.1%	11.5%	11.5%	Owner earnings marginOE mgn
$14M	$23M	$48M	$59M	$71M	$136M	$150M	$273M	$221M	$282M	$282M	Free cash flowFCF
4.3%	5.7%	9.2%	9.0%	8.7%	10.5%	8.5%	13.0%	9.1%	11.5%	11.5%	Free cash flow marginFCF mgn
—	—	—	$0	$0	$7M	$9M	$12M	$11M	$56M	—	BuybacksBuybacks
22%	12%	20%	15%	9%	13%	13%	11%	9%	6%	6%	ROICROIC
17%	12%	15%	12%	6%	7%	10%	9%	8%	5%	5%	Return on equityROE
17%	12%	15%	12%	6%	7%	10%	9%	8%	5%	5%	Retained to equityRetained/eq
											Balance sheet
$60M	$61M	$86M	$83M	$298M	$460M	$341M	$323M	$156M	$250M	$250M	Cash & investmentsCash+inv
$54M	$80M	$111M	$157M	$196M	$300M	$425M	$499M	$605M	$578M	$578M	ReceivablesReceiv.
$54M	$80M	$111M	$157M	$196M	$300M	$425M	$499M	$605M	$578M	$578M	Operating working capitalOper. WC
$134M	$156M	$213M	$276M	$536M	$820M	$858M	$925M	$839M	$954M	$954M	Current assetsCur. assets
$55M	$74M	$93M	$146M	$206M	$386M	$429M	$665M	$507M	$580M	$580M	Current liabilitiesCur. liab.
2.4×	2.1×	2.3×	1.9×	2.6×	2.1×	2.0×	1.4×	1.7×	1.6×	1.6×	Current ratioCurr. ratio
$65M	$99M	$105M	$189M	$393M	$567M	$735M	$1.1B	$1.5B	$1.6B	$1.6B	GoodwillGoodwill
$285M	$357M	$437M	$688M	$1.3B	$1.9B	$2.2B	$2.7B	$3.1B	$3.3B	$3.3B	Total assetsAssets
—	—	$0	$50M	$25M	$2M	$861K	$2M	$291M	$347M	$347M	Total debtDebt
—	—	($86M)	($32M)	($273M)	($458M)	($340M)	($321M)	$135M	$97M	$97M	Net debt / (cash)Net debt
2.6×	3.0×	43.3×	12.1×	8.0×	11.4×	12.5×	8.4×	7.0×	4.2×	4.2×	Interest coverageInt. cov.
$209M	$263M	$338M	$439M	$880M	$1.3B	$1.5B	$1.7B	$2.0B	$2.1B	$2.1B	Shareholders’ equityEquity
											Per share
34.4M	34.9M	35.7M	36.6M	38.5M	40.9M	41.9M	42.6M	43.4M	44.2M	35.7M	Shares out (diluted)Shares
$9.38	$11.84	$14.61	$18.02	$21.14	$31.68	$42.46	$49.20	$55.66	$55.51	$68.82	Revenue / shareRev/sh
$1.04	$0.87	$1.45	$1.48	$1.41	$2.35	$3.55	$3.72	$3.82	$2.33	$2.89	EPS (diluted)EPS
$0.73	$0.97	$1.57	$1.78	$2.18	$3.89	$4.11	$6.71	$5.09	$6.37	$7.90	Owner earnings / shareOE/sh
$0.40	$0.67	$1.34	$1.62	$1.83	$3.33	$3.59	$6.42	$5.09	$6.37	$7.90	Free cash flow / shareFCF/sh
$0.51	$0.56	$0.54	$0.56	$0.76	$1.04	$1.12	$1.06	$0.64	$0.43	$0.54	Cap. spending / shareCapex/sh
$6.06	$7.54	$9.45	$11.99	$22.85	$31.89	$35.95	$40.60	$45.25	$47.34	$58.69	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+21.8%/yr	+21.3%/yr
Owner earnings / share	+27.2%/yr	+24.0%/yr
EPS	+9.3%/yr	+10.6%/yr
Capital spending / share	−1.8%/yr	−10.6%/yr
Book value / share	+25.7%/yr	+15.7%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

44Mpeak FY2025

ROIC

6%low FY2025

Gross margin

35%low FY2025

Net debt ÷ owner earnings

0.3×peak FY2024

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$282Mowner earningsvs.$103Mnet incomelow FY2016

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned $103M of profit into $282M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

Reported net income$103M

Owner earnings$282M · 11% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$103M	$166M	$159M	$149M	$96M
Depreciation & amortizationnon-cash charge added back	+$34M	+$36M	+$33M	+$25M	+$20M
Working capital & othertiming of cash in and out, other non-cash items	+$165M	+$47M	+$127M	+$23M	+$63M
Cash from operations	$301M	$249M	$319M	$198M	$179M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$19M	−$28M	−$33M	−$25M	−$20M
Owner earnings	$282M	$221M	$286M	$172M	$159M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	−$12M	−$22M	−$23M
Free cash flow	$282M	$221M	$273M	$150M	$136M
Owner-earnings marginowner earnings ÷ revenue	11%	9%	14%	10%	12%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position .

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 20-F · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 4.2×

Adequate

Operating income $172M ÷ interest expense $41M

What this means
Comfortable in a normal year, but below the margin of safety Graham looked for. Worth checking how stable the coverage has been across a full cycle.
How heavy is the debt, net of cash? $97M · 0.6× operating profit

Modest net debt

Cash $244M + ST investments $7M − debt $347M

What this means
Netting $250M of cash and short-term investments against $347M of debt leaves $97M owed, about 0.6× a year's operating profit (2.0× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? —

Not enough data

What this means
The filing data didn't include the inputs for this check.

Is it a good business?

Return on invested capital 12%

Solid through the cycle

10-yr median, range 6%–22%; 6% latest = NOPAT $128M ÷ invested capital $2.2B

Industry peers: median 4%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 6% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 10%

Solid through the cycle

10-yr median margin, range 8%–14%; latest $282M = operating cash $301M − maintenance capex $19M

Industry peers: median 12%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 11% of revenue this year, a 10% median across 10 years.
Are earnings backed by cash? 2.93×

Cash-backed

Cash from ops $301M ÷ net income $103M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 20%

Reinvests most of it

Dividends + buybacks $56M ÷ Owner Earnings $282M

What this means
Of $282M Owner Earnings, $56M (20%) went back to shareholders, $0 dividends, $56M buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 0.57×

Harvesting

Capex $19M ÷ depreciation $34M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 4 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $2.5B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Near

Current ratio ≥ 2× · 1.64×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $347M vs $373M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Pass

A profit every year (10-yr record) · no losses

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +262%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $3.25/share (latest year $2.35), the averaged base the calculator's gate runs on, and book value is $47.76/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 10 of 10

What this means
Never lost money over the record, the earnings stability Graham insisted on.
Return on capital ≥ 15% 1 of 8 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 12% → 9% (3-yr avg ends)

What this means
Through the cycle the operating margin slipped — about 12% early to 9% lately, median 10% — competition or costs are biting in.
Reinvestment, incremental ROIC 8%

What this means
Reinvested capital came back at only a modest incremental return — near the cost of capital, where extra growth adds little per dollar. The record shows whether it is a soft stretch or a thinning moat.
Owner earnings growth +27%/yr

What this means
Owner earnings grew about 27% a year over the record.
Worst year 2025 · 7.0% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
Share count +2.8%/yr

What this means
The share count is rising, dilution works against you on a per-share basis.

Does AI threaten the moat?

Elevated contestability

The product is software or information, the very thing capable AI now produces more cheaply, so the moat is more contestable than the record alone implies.

AI has collapsed the cost of building a capable substitute for the very thing this business sells. When a credible alternative can be assembled for a fraction of the incumbent's price, it is pricing power that erodes first, not revenue tomorrow. The live question is whether the moat survives that, not whether it held in the past. Whether that question is answerable at all is yours to decide, against your own circle of competence.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of fiscal year-end, Dec 31, 2025

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$954M

Cash & short-term investments$250M
Receivables$578M
Other current assets$126M

Current liabilities$580M

Other current liabilities$580M

Current ratio1.64×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.64×stricter: inventory excluded

Cash ratio0.43×strictest: cash alone against what's due

Working capital$373Mthe cushion left after near-term bills

Deeper floors

Tangible book value$146Mequity stripped of goodwill & intangibles

Net current asset value($203M)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$454M$107M of it operating leases

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $1.6B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested$288M · 18%
Buybacks$95M · 6%
Retained (debt / cash)$1.2B · 76%

Returned to owners$95M
7% of the owner earnings the business produced over the span, $0 as dividends and $95M as buybacks.
Average price paid for buybacks—
Buybacks ran $95M over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count3.7%
The diluted count rose from 34M to 36M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
Return on what it retained28%
Of the earnings it kept rather than paid out ($804M over the span), annual owner earnings (first three years vs last three) grew $225M, so each retained $1 added about 0.28 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 10-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$1.9B59% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity76%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring$0over 10 years buying other businesses, against $288M of capital spent building

None written down over the record; the goodwill is still carried at full cost. That is the deals holding their value on the books so far; whether they keep doing so is the test an owner watches, since the write-down, when it comes, is the admission the price was too high.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 10-year record, from the company's own filings.

Inverting the record

Invert: instead of why Globant S.A. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

2 of the 4 tests turned up something to look into; the other 2 came back clean.

Look hereDid the share count rise anyway?3.7%
Diluted shares grew 3.7% over 2016–2025, even as the company spent $95M on buybacks. The repurchases were outrun by issuance — to staff, in a raise, or in a deal — and the filing says which; owners' slice still shrank. Read the buyback line beside this one, not on its own.
Look hereDid receivables and inventory outpace sales?17% → 24% of sales
Receivables and inventory grew from $54M to $578M while revenue grew 660%: working capital is climbing faster than sales (17% of revenue then, 24% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.

And these came back clean

Is it less profitable than it was?
Did reported profit become cash?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

Peers, IT Services & Consulting

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
VRSKVerisk Analytics Inc.	$3.1B	65%	40.3%	14%	32%
PLTKPlaytika Holding Corp.	$2.8B	72%	18.8%	34%	19%
RNGRingCentral Inc.	$2.5B	72%	-4.2%	-11%	7%
CLVTClarivate Plc	$2.5B	66%	-10.8%	-2%	12%
GLOBGlobant S.A.	$2.5B	37%	10.7%	13%	10%
RDDTReddit Inc.	$2.2B	88%	-21.6%	22%	3%
PEGAPegasystems	$1.7B	71%	1.9%	3%	7%
FAFirst Advantage Corporation	$1.6B	—	9.8%	4%	17%
Group median	—	71%	5.8%	8%	11%

The price

What a price has to assume.

What the price implies

reverse-DCF

Enter the home-market price, not the US ADR quote. Globant S.A. reports in USD, and every figure here (owner earnings, book value, the share count) is on that ordinary-share basis. Enter the price on the same basis: the local-exchange quote per ordinary share. A US ADR price in dollars bundles the ADR-to-ordinary ratio, so it will not reconcile with these figures and would throw the multiple off.

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Globant S.A. has delivered.

Today’s price $

Through the cycle, Globant S.A. earns about $248M on its 10.1% median owner-earnings margin. This year’s 11.5% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($248M) Net of stock comp

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+11%/yr

Owner-earnings growth · ’16→’25+34%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $282M on 44M shares outstanding, per the 20-F cover, as of 2025-12-31; net debt $97M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh GLOB against another business →

Cite: Owner Scorecard, "Globant S.A. (GLOB), the owner's record," https://ownerscorecard.com/c/GLOB, data as of 2026-07-09.

Manual order: ← GLNG its page in the Manual GMHS →

Industry order: ← GDRX the IT Services & Consulting chapter GLOO →