You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our consolidated financial statements and related notes included elsewhere in this annual report. Our consolidated financial statements have been prepared in accordance with IFRS. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under "Key Information—Risk Factors" and elsewhere in this annual report. Overview 46 See "Information on the Company — History and Development of the Company" and "Information on the Company — Business Overview — Overview". A. Operating Results Factors Affecting Our Results of Operations Over the last few years, the simultaneous digital and cognitive revolutions have transformed the technology industry, reshaped how companies connect with consumers and employees, and created opportunities for gains in efficiency. Today's technology users move quickly and demand personalized and frictionless experiences through always-available digital ecosystems. Increased demand for more intelligent and human-like technology is contributing to changes in the industry. To address user demands, companies are leveraging AI, UX, Mobile, Cloud, VR and other technologies. 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. 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. 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. 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). 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.". 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. Through research and development, targeted hiring and strategic acquisitions, we have invested in broadening and deepening the domains of expertise of our Studios. Our future growth and success depend significantly on our ability to maintain the expertise of each of our Studios, to continue to innovate and to anticipate the needs of our clients and rapidly develop and maintain the expertise of each of our Studios, including relevant domain knowledge and technological capabilities required to meet those client needs, while maintaining our high standard of quality. •Our ability to recruit, retain and manage our IT professionals may have an effect on our gross profit margin and our results of operations. 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. An unanticipated termination of a significant project could cause us to experience lower employee utilization resulting from a higher than expected number of idle IT professionals. Our ability to effectively utilize our employees is typically improved by longer-term client relationships due to increased predictability of client needs over the course of the relationships. •Investments in our delivery platform. 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. We have pursued a decentralization strategy in building our network of delivery centers, recognizing the benefits of expanding into countries in Latin America and Asia, including the ability to attract and retain highly skilled IT professionals in increasing scale. Our ability to effectively utilize our robust delivery platform could significantly affect our results of operations in the future. •Seasonality. 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. 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. 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. 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. We present our revenues by client location based on the location of the specific client site that we serve, irrespective of the location of the headquarters of the client or the location of the delivery center where the work is performed. 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. 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. 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. The Media and Entertainment vertical experienced a slight contraction, as the industry recalibrated following the high-growth cycles of previous years. The Consumer, Retail & Manufacturing vertical remained a steady pillar of our portfolio. We observed notable momentum in the Travel & Hospitality vertical, benefiting from a sustained global recovery in corporate and leisure mobility. At the same time, both the Professional Services and Technology & Telecommunications verticals faced headwinds, as clients in these sectors slowed their tech spend. 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. 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. 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 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). 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. Business Optimization Costs The Company initiated a Business Optimization Plan in April 2025 to strategically transform its organization and operations. These costs are primarily related to employee severance and the discontinuation of physical office spaces. Cost related to the Business Optimization Plan was $52.0 million for the year ended December 31, 2025. The activities associated with this plan were communicated, started and substantially completed during the second quarter of fiscal year 2025. Cost of Revenues The principal components of our cost of revenues are salaries, professional services and share-based compensation plans (equity settled). 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. 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. 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. 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. These effects were partially offset by a headcount reduction resulting from the Business Optimization Plan implemented in the second quarter of the year. The increase in depreciation and amortization expense relates to capex acquisition during the year. The increase in office expenses relates to maintenance of our office spaces and an increase in software licenses. 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 Expenses Selling, general and administrative expenses represent expenses associated with promoting and selling our services and include such items as salary of our senior management, administrative personnel and sales and marketing personnel, infrastructure costs, legal and other professional services expenses, travel costs and other taxes. 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. 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. 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. 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. Throughout the year, we focused on driving efficiencies that successfully reduced selling, general and administrative expenses, primarily through the implementation of our Business Optimization Plan. Looking ahead, we expect to maintain these stable levels, while supporting business expansion. Depreciation and Amortization Expense (included in "Cost of Revenues" and "Selling, General and Administrative Expenses") Depreciation and amortization expense consists primarily of depreciation of our property and equipment (primarily leasehold improvements, servers and other equipment), depreciation of right-of-use assets (primarily office spaces and office equipment) and amortization of our intangible assets (mainly software licenses, acquired intangible assets and internal developments). Net impairment losses on financial assets Net impairment losses on financial assets mainly include impairment of trade receivables, which represents an allowance for expected credit losses. 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, 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. This was attributable to factors that are specific to debtors and certain economic conditions. Finance Income Finance income consists of interest gains on time deposits, financed customers, savings accounts and sublease interests. 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. 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. 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. Also, for the net effect of gain of $4.3 million related to financial instruments measured at fair value through profit or loss compared to a gain of $0.5 in 2024, and a loss of $2.0 million related to financial instruments measured at fair value through other comprehensive income compared to a gain of $0.5 million in 2024. 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 remeasurement of earn out payments related to business combinations. Income Tax Expense See "Consolidated Financial Statements as of December 31, 2025 and December 31, 2024 and for each of the three years in the period ended December 31, 2025 — Summary of Significant Accounting Policies — Taxation —Current Income Tax". 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. 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. Reconciliation of Non-IFRS Financial Data Overview To supplement our financial measures prepared in accordance with IFRS, we use certain non-IFRS financial measures including (i) adjusted diluted earnings per share ("EPS"), (ii) adjusted net income, (iii) adjusted gross profit, (iv) adjusted selling, general and administrative ("SG&A") expenses, and (v) adjusted profit from operations. These measures do not have any standardized meaning under IFRS, and other companies may use similarly titled non-IFRS financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-IFRS financial measures may not be comparable to similar non-IFRS measures presented by other companies. We caution investors not to place undue reliance on such non-IFRS measures, but instead to consider them with the most directly comparable IFRS measures. Non-IFRS financial measures have limitations as analytical tools and should not be considered in isolation. They should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with IFRS. The reconciliations of these non-IFRS measures to the most directly comparable financial measures calculated and presented in accordance with IFRS are shown in the tables below. We use these non-IFRS measures in the evaluation of our performance and our consolidated financial results. We believe these non-IFRS measures may be useful to investors in their assessment of our operating performance and the valuation of our company. 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. Adjusted gross profit and adjusted SG&A expenses are most directly comparable to the IFRS measures of gross profit and selling, general and administrative expenses, respectively. Our non-IFRS measures of adjusted gross profit and adjusted SG&A expenses exclude the impact of certain items, such as depreciation and amortization expense, share-based compensation expense and, only with respect to adjusted SG&A expenses and acquisition-related charges. Adjusted Profit from Operations We utilize the non-IFRS measure of adjusted profit from operations as a supplemental measure for period-to-period comparisons. 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. Adjusted Diluted EPS and Adjusted Net Income We utilize non-IFRS measures of adjusted diluted EPS and adjusted net income for strategic decision making, forecasting future results and evaluating current performance. Adjusted diluted EPS and adjusted net income are most directly comparable to the IFRS measures of EPS and net income, respectively. Our 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. (2) One-time charges for the year ended December 31, 2025 related to the Company's Business Optimization Plan initiated in April 2025. These charges, primarily related to workforce resizing and office reductions, have been excluded from non-IFRS results as these are one-time and unusual in nature B. 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. We may also require cash to fund acquisitions of businesses. Our primary working capital requirements are to finance our payroll-related liabilities during the period from delivery of our services through invoicing and collection of trade receivables from clients. We incur capital expenditures to open new delivery centers, for improvements to existing delivery centers, for infrastructure-related investments, and to acquire software licenses and internal developments. Based on the above considerations, management is of the opinion that we have sufficient funds to meet our working capital and capital expenditure needs for at least the next twelve months from the date of this report. However, our future capital requirements may be materially different than those currently planned in our budgeting and forecasting activities and depend on many factors, including our rate of revenue growth, the expansion of our sales and marketing activities, the acquisition of other companies, global economic conditions and the retention of customers. To the extent that current and anticipated future sources of liquidity are insufficient to fund our future business activities and requirements, we may be required to seek additional equity or debt financing. The sale of additional equity would result in additional dilution to our shareholders, while the incurrence of debt financing would result in debt service obligations. Such debt instruments also could introduce covenants that might restrict our operations. We cannot assure you that we could obtain additional financing on favorable terms, or at all. We will continue to invest in our subsidiaries. In the event of any repatriation of funds or declaration of dividends from our subsidiaries, there will be a tax effect because dividends from certain foreign subsidiaries are subject to taxes. See "Additional Information — Taxation". 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. 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. 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. 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. 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. 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. 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. The $36.2 million decrease in trade receivables reflects our decrease in our Days Sale Outstanding or DSO. The payroll and social security taxes payable decrease of $60.8 million was primarily related to the reduction of workforce as consequence from the implementation of the Business Optimization Plan. For a discussion related to cash flows from operating 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. 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. 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). 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. 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. 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. 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. If our cash and cash equivalents and operating cash flow are insufficient to fund our future activities and requirements, we may need to raise additional funds through public or private equity or debt financing. If we issue equity securities in order to raise additional funds, substantial dilution to existing shareholders may occur. 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. For more information, see "Additional Information - Material Contracts." We cannot assure you that we would be able to raise additional funds on favorable terms or at all. 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. Payments due by period (in thousands) 2026 2027 2028 Thereafter Total Trade payables $ 112,590 $ 3,674 $ 10 $ — $ 116,274 Borrowings 19,666 20,638 371,681 — 411,985 Lease liabilities 37,232 30,664 28,980 44,016 140,892 Other financial liabilities (1) 119,152 21,806 67,558 385 208,901 TOTAL $ 288,640 $ 76,782 $ 468,229 $ 44,401 $ 878,052 (1) The amounts disclosed in the line of other financial liabilities do not include foreign exchange forward contracts, equity forward contracts and 31,594 related to business combinations payments through subscription agreements. 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. Please refer to note 31 of our audited consolidated financial statements for further information. 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 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. 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". During the term of the 2014 Equity Incentive Plan, we have granted to members of our senior management and certain other employees options to purchase common shares and RSUs. On September 27, 2021, our compensation committee adopted and approved the granting of PRSUs. 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. Each of our employee share options is exercisable for one of our common shares, and each of our RSUs and PRSUs will be settled, automatically upon its vesting, with one of our common shares. No amounts are paid or payable by the recipient upon receipt of an option, RSU or PRSU. Neither the options, nor the RSUs or PRSUs carry rights to dividends or voting rights. Options may be exercised at any time from the date of vesting to the date of their expiration (ten years after 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. Fair value is calculated using the Black-Scholes option pricing model. Under the terms of our 2014 Equity Incentive Plan, from its adoption until the 2014 Equity Incentive Plan Termination Date, we have granted to members of our senior management and certain other employees 30,000 stock awards, options to purchase 2,248,122 common shares and 2,683,791 RSUs and PRSUs, net of any cancelled and/or forfeited awards. In addition, on June 29, 2023, the Company approved to amend the special condition awards granted in August 2022, to the effect of reducing the threshold minimum average closing price for vesting from $420 to $350 per share through (but excluding) June 29, 2026, and increasing it by $35 per share per year until August 11, 2030 and June 29, 2031 for US and non-US residents, respectively. The awards were granted 50% in the form of PRSUs and 50% in the form of RSUs. These awards will vest in two equal tranches, the first occurring immediately after the date in which the vesting condition is satisfied and the second occurring on the first anniversary of such vesting event. 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 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. 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. On March 3, 2022, the compensation committee approved the granting of up to 45,000 additional common shares in the form of SEUs and PSEUs. The purpose of the granting awards in the form of stock-equivalent units is to provide an incentive to attract, retain and reward talent in the IT industry and to prompt such persons to contribute to the growth and profitability 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. 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 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. 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. 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. As of December 31, 2025, all awards granted under the 2024 Equity Incentive Plan during 2025 are outstanding in the form of RSUs in accordance with our new Long-Term Incentive ("LTI") model. See “Compensation – Compensation of Board of Directors and Senior Management” below for further information. Each of our RSUs and PRSUs will be settled, automatically upon its vesting, with one of our common shares. No amounts are paid or payable by the recipient upon receipt of a RSU or PRSU. The RSUs or PRSUs do not carry rights to dividends or voting rights. 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. 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. 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. 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. The purpose of the ESPP is to advance the interests of the Company and our shareholders by providing an incentive to attract, retain and reward our eligible employees and by motivating such persons to contribute to the growth and profitability of the Company. 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. Research and Development, Patents and Licenses, etc. See “Information of the company - Business Overview — Intellectual Property.” 60 D. 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. E. Critical Accounting Estimates See note 4 to our audited consolidated financial statements for the year ended December 31, 2025.