Q2 2025 Ci&T Inc Earnings Call

Speaker #1: In a world that's always on transformation, CI&T is your go-to tech transformation specialist. Helping you navigate opportunities and co-create solutions at every step of your technology journey.

Speaker 1: In a world that's always on transformation, CI&T is your go-to tech transformation specialist, helping you navigate opportunities and co-create solutions at every step of your technology journey. We get things done quickly, efficiently, and at scale, by combining the best human expertise with the power of our very own AI platform, CI&T Flow. Our mission? To design and develop tech solutions that drive growth and boost your business value. When it comes to navigating change, we turn challenges into possibilities, leading the way to a brighter future. We're right by your side, innovating together, and pushing you forward. That's what we do. Our deep know-how covers the entire tech development cycle: from strategy to AI, customer experience, software development, cloud, and data services. Navigate technology change with CI&T to reach new heights. Navigate change with CI&T.

Speaker #1: We get things done quickly, efficiently, and at scale. By combining the best human expertise with the power of our very own AI platform, CI&T Flow.

Speaker #1: Our mission? To design and develop tech solutions that drive growth and boost your business value. When it comes to navigating change, we turn challenges into possibilities.

Speaker #1: Leading the way to a brighter future. We're right by your side, innovating together, and pushing you forward. That's what we do. Our deep know-how covers the entire tech development cycle.

Speaker #1: From strategy to AI, customer experience, software development, cloud, and data services, navigate technology change with CI&T to reach new heights. Navigate change with CI&T.

Speaker #2: Welcome to CI&T's earnings call for the second quarter of 2025. I am Eduardo Galvao, Director of Investor Relations at CI&T. Presenting our results with me today are Cesar Gon, our Founder and CEO; Bruno Guicardi, Founder and President for North America and Europe; and Stanley Rodrigues, our CFO.

Eduardo Galvao: Welcome to CI&T's earnings call for the second quarter of 2025. I am Eduardo Galvao, Director of Investor Relations at CI&T. Presenting our results with me today are Cesar Gon, our founder and CEO, Bruno Guicardi, founder and president for North America and Europe, and Stanley Rodrigues, our CFO. This event is being recorded, and all participants will be in a listen-only mode during the company's presentation. After that, there will be a Q&A session. If you'd like to submit a question, please send it via email to investors@ciint.com. The presentation is available on the company's Investor Relations website, and the replay will be available shortly after the event is concluded. Some of the matters we'll discuss on this call, including our expected business outlook, are forward-looking statements.

Speaker #2: This event is being recorded and all participants will be in a listen-only mode during the company's presentation. After that, there will be a Q&A session.

Speaker #2: If you'd like to submit a question, please send it via email to investors@cient.com. The presentation is available on the company's Investor Relations website, and the replay will be available shortly after the event is concluded.

Speaker #2: Some of the matters we'll discuss on this call, including our expected business outlook and our forward-looking statements, are subject to known and unknown risks and uncertainties, which could cause actual results to differ from those expressed on this call.

Eduardo Galvao: They are subject to known and unknown risks and uncertainties, which could cause actual results to differ from those expressed on this call. We caution you not to place undue reliance on these forward-looking statements, as they're valid only as up-to-date when made. During this presentation, we'll comment on certain non-IFRS financial measures to evaluate our business. Please refer to the reconciliation tables of non-IFRS measures in the earnings release for more details. At this time, I'll pass it on to Cesar Gon to begin our presentation.

Speaker #2: We caution you not to place undue reliance on these forward-looking statements, as they are valid only as of the date when made. During this presentation, we'll comment on certain non-IFRS financial measures to evaluate our business.

Speaker #2: Please refer to the reconciliation tables of non-IFRS measures in the earnings release for more details. At this time, I'll pass it on to Cesar Gon to begin our presentation.

Speaker #3: Thank you, Galvão. And good afternoon, everyone. Today, companies demand more than innovation; they want measurable business impact. AI may be overhyped to some and underhyped to others.

Cesar Gon: Thank you, Galvao, and good afternoon, everyone. Today, companies demand more than innovation; they want measurable business impact. AI may be overhyped to some, underhyped to others, but one thing is clear: technology investments must deliver strategic returns. That's where CI&T stands out. We adapt constantly to meet our clients' needs, powered by two engines: our expert teams and our specialized AI platform, CI&T Flow. Together, they orchestrate mission-critical projects in real time, delivering fast execution, higher quality, and a strong return on investment. We call this tech-integrated business solutions, seamlessly combining business transformation with technology and AI. It gives leaders the clarity and predictability they need, and it's deepening our partnership, especially with our largest clients. We believe the future belongs to companies that unite business and technology into one integrated strategy.

Speaker #3: But one thing is clear: technology investments must deliver strategic returns. That's where CI&T stands out. We adapt constantly to meet our clients' needs, powered by two engines: our expert teams and our specialized AI platform, CI&T Flow.

Speaker #3: Together, they orchestrate mission-critical projects in real time. Delivering fast execution, higher quality, and strong return on investment. We call this tech integrated business solutions.

Speaker #3: Seamlessly combining business transformation with technology and AI. It gives leaders the clarity and predictability they need and is deepening our partnerships, especially with our largest clients.

Speaker #3: We believe the future belongs to companies that unite, business and technology, into one integrated strategy. They strengthen this approach is reflected in our results.

Cesar Gon: The strength of this approach is reflected in our results, which I'm pleased to share with you now. Now, let's review our second quarter 2025 financial highlights. Our strategy of embedding deeply with large clients and delivering clear value has allowed us to maintain our momentum and deliver strong performance. Our revenue reached 117.2 million, which represents an organic growth of 12.3% at constant currency compared to the same period last year. On the profitability front, our just EBITDA margin was 18.4%. As expected, this represents a sequential improvement from the first quarter, underscoring our commitment to operational excellence and disciplined cost management. Furthermore, our just profit margin stood at a healthy 10.4%. This solid financial foundation allowed us to continue investing in the key pillars of our growth, particularly in our AI-first offerings, which are reshaping what's possible for our clients.

Speaker #3: Which I'm pleased to share with you now. Now, let's reveal our second quarter 2025 financial highlights. Our strategy of embedding deeply with large clients and delivering clear value has allowed us to maintain our momentum and deliver strong performance.

Speaker #3: Our revenue reached $117.2 million, which represents an organic growth of 12.3% at constant currency compared to the same period last year. On the profitability front, our adjusted EBITDA margin was 18.4%.

Speaker #3: As expected, this represents a sequential improvement from the first quarter, underscoring our commitment to operational excellence and disciplined cost management. Furthermore, our adjusted profit margin stands at a healthy 10.4%.

Speaker #3: This solid financial foundation allowed us to continue investing in the key pillars of our growth, particularly in our AI-first offerings, which are reshaping what's possible for our clients.

Speaker #1: Your cars are smart, your processes, still stuck, in first gear. CI&T Flow hits the gas. From design to delivery, we automate the digital journey.

Speaker 1: Your cars are smart, your processes still stuck in first gear. CI&T Flow hits the gas. From design to delivery, we automate the digital journey. Marketing, sales, after-sales, all accelerated. Built to move at the speed of your ambition. It feels like magic, but really, it's just damn good math. Now, take a look at what we are building with CI&T Flow.

Speaker #1: Marketing, sales, after-sales, all accelerated. Built to move at the speed of your ambition. It feels like magic, but really. It's just damn good math.

Speaker #1: Now, take a look at what we are building with CI&T Flow.

Speaker #4: For three years, Ford has trusted us to accelerate its digital transformation across South America. This includes modernizing platforms, expanding capabilities, and delivering with Gen AI strategies, such as an early rollout of the parts warehouse platform in Argentina and the migration of more than 75 applications to Google Cloud.

Speaker 4: For three years, Ford has trusted us to accelerate its digital transformation across South America. From modernizing platforms, expanding capabilities, and delivering with GenAI strategies, including an early rollout of the parts warehouse platform in Argentina and the migration of more than 75 applications to Google Cloud. With intelligence under the hood and AI driving efficiency, we are moving faster and smarter.

Speaker #4: With intelligence under the hood, and AI driving efficiency, we are moving faster. And smarter.

Speaker #5: Baby Seguros is changing customer experience with VR gamification. In partnership with us and Eagle Agency, Baby Seguros launched PlayNaproTesao, a virtual reality game that makes insurance an immersive, intuitive experience.

Speaker 5: BB Seguros is changing customer experience with VR gamification. In partnership with us and Eagle Agency, BB Seguros launched Play Na Proceso, a virtual reality game that makes insurance an immersive, intuitive experience. Built with accessibility in mind, the experience is available on VR headsets and smartphones, making learning about insurance in real life simple, engaging, and memorable. In a world of daily potential risks, playing it smart is the best kind of insurance.

Speaker #5: Built with accessibility in mind, the experience is available on VR headsets and smartphones, making learning about insurance in real life simple, engaging, and memorable.

Speaker #5: In a world of daily potential risks, playing it smart is the best kind of insurance.

Speaker #4: Natura is enhancing digital access by using AI to create more inclusive experiences for people with disabilities. The project improves accessibility for 1.8 million Natura and Avon consultants by collecting feedback and adapting interfaces to different navigation needs.

Speaker 6: Natura is enhancing digital access by using AI to create more inclusive experiences for people with disabilities. The project improves accessibility for 1.8 million Natura and Avon consultants by collecting feedback and adapting interfaces to different navigation needs. Over 60 professionals worked with CI&T Flow to identify and resolve invisible barriers in real time. Natura and CI&T, creating digital experiences that care.

Speaker #4: Over 60 professionals worked with CI&T Flow to identify and resolve invisible barriers in real time. Natura and CI&T, creating digital experiences that care.

Speaker #6: As payments go digital, 1.2 billion people with disabilities risk being left behind. 87% of those with learning disabilities rely on unsafe workarounds, like linker sharing pins just to pay.

Speaker 7: As payments go digital, 1.2 billion people with disabilities risk being left behind. 87% of those with learning disabilities rely on unsafe workarounds, like linker-sharing pins just to pay. The system just isn't built for them. That's why we partnered with Project Nemo, a not-for-profit focused on financial inclusion, to create a solution.

Speaker #6: The system just isn't built for them. That's why we partnered with Project Nemo, a not-for-profit focused on financial inclusion, to create a solution.

Speaker #7: Brilliant call center.

Speaker 8: Brilliant!

Speaker #8: Yeah, I love it.

Speaker 7: Yeah, I love it.

Speaker #2: I love this.

Speaker 9: I loved it.

Speaker #6: In In six weeks, we designed Nemo, an art of the possible app prototype that helps adults with learning disabilities manage their finances independently, with trusted support when needed.

Speaker 7: In six weeks, we designed Nemo, an art of the possible app prototype that helps adults with learning disabilities manage their finances independently, with trusted support when needed.

Speaker #8: Access should be everywhere. That's the general population, isn't it, Juan?

Speaker 8: That should be everywhere. That's the general population, isn't it?

Cesar Gon: And accessibility is not a disabled word. Everybody doesn't want things done gingerly.

Speaker #2: Accessibility is not a disabled word. Everybody doesn't want things done simply.

Speaker #6: With CI&T and Project Nemo, inclusive banking is here. And it's just the beginning.

Speaker 7: With CI&T and Project Nemo, inclusive banking is here. And it's just the beginning.

Speaker #1: We are proud to announce that we've joined AWS's GenAI Partner Innovation Alliance, becoming one of just 15 partners worldwide and only the second in Latin America to be selected.

Speaker 5: We are proud to announce that we've joined AWS's GenAI Partner Innovation Alliance, becoming one of just 15 partners worldwide and only the second in Latin America to be selected. With a shared commitment to driving impact through generative AI, this exclusive alliance brings us closer to AWS's most advanced GenAI leaders, tools, and opportunities. The journey continues, now with even more intelligence behind it.

Speaker #1: With a shared commitment to driving impact through generative AI, this exclusive alliance brings us closer to AWS's most advanced GenAI leaders, tools, and opportunities.

Speaker #1: The journey continues. Now, with even more intelligence behind it. Sitting on a fortress of financial data, but speed, nowhere to be found. That's why there's CI&T Flow.

Speaker 1: Sitting on a fortress of financial data, but speed? Nowhere to be found. That's why there's CI&T Flow. We streamline insights and unlock real-time decisions. AI to modernize your banking applications? Faster. No more waiting on yesterday's numbers. It feels like magic, but really, it's just damn good math. Now, take a look at what we are building with CI&T Flow. We took center stage at Febroban Tech 2025, Brazil's largest financial technology event, leading eight panels. We brought together leaders from banks and tech to the stage, and also launched a consumer trend study developed in partnership with Docs1824, exploring how new behaviors are reshaping the financial sector.

Speaker #1: We streamline insights and unlock real-time decisions. AI to modernize your banking applications? Faster. No more waiting on yesterday's numbers. It feels like magic, but really.

Speaker #1: It's just damn good math. Now, take a look at what we are building with CI&T Flow. We took center stage at FEBRIBON Tech 2025.

Speaker #1: Brazil's largest financial technology event, leading eight panels. We brought together leaders from banks and tech to the stage, and also launched a consumer trends study developed in partnership with Docs1824.

Speaker #1: Exploring how new behaviors are reshaping the financial sector.

Speaker #5: It's

Speaker 10: Levante porque a CI&T traz vários aceleradores, como a plataforma Flow, é uma plataforma de IA generativa bastante avançada e que te permite entender como você pode impactar a sua operação. Então, esse acelerador é hiper importante, fora a conexão com o mercado, as tendências de como você também consegue acelerar a adoção de IA generativa na sua operação.

Speaker #1: And our booth, built with AWS, Intel, and Databricks, visitors experienced hands-on how AI is transforming financial services. Let's keep navigating the future of smart finance.

Speaker 1: At our booth, built with AWS, Intel, and Databricks, visitors experienced hands-on how AI is transforming financial services. Let's keep navigating the future of smart finance.

Speaker #3: This This is our just a few examples of our strategy in action. I'll now turn it over to Bruno to discuss our offerings and talented strategy that brings these results to life.

Cesar Gon: These are just a few examples of our strategy in action. I'll now turn it over to Bruno to discuss our offerings and talented strategy that brings these results to life.

Speaker #9: Thank you, Cesar. It's a pleasure to be here to talk about our AI initiatives. Our ability to achieve two enterprise-wide adoption has been a key differentiator for CI&T.

Bruno Guicardi: Thank you, Cesar. It's a pleasure to be here to talk about our AI initiatives. Our ability to achieve true enterprise-wide adoption has been a key differentiator for CI&T. Through a structured approach, we have successfully scaled AI across our entire organization. This positions us ahead of the market, allowing us to guide our clients with proven experience, not just theory. Our AI-powered platform, CI&T Flow, has been central to this success and has become a significant factor in our go-to-market strategy, proving instrumental in both landing new clients and expanding our relationships with existing ones. We channel this expertise into three core offerings, unlocking measurable business impact with hyper-efficient teams, driving AI legacy modernization, and empowering clients with a safe and compliant AI-first transformation. Now, let me show you a concrete example of hyper-efficiency in practice.

Speaker #9: Through its structured approach, we have successfully scaled AI across our entire organization. This, positions us ahead of the market, allowing us to guide our clients with proven experience, not just theory.

Speaker #9: Our AI-powered platform, CI&T Flow, has been central to this success and has become a significant factor in our go-to-market strategy. It has proven instrumental in both landing new clients and expanding our relationships with existing ones.

Speaker #9: We channel this expertise into three core offerings: unlocking measurable business impact with hyper-efficient teams, driving AI-led risk modernization, and empowering clients with a safe and compliant AI-first transformation.

Speaker #9: Now, let me show you a concrete example of hyper-efficiency and practice. Our hyper-efficiency offering answers our clients' critical challenges: how to innovate faster, adapt to change, and drive growth.

Bruno Guicardi: Our hyper-efficiency offering answers our clients' critical challenges: how to innovate faster, adapt to change, and drive growth. Our approach is not about a tool, but a powerful combination of three core elements. First, our adaptive teams, which bring the right expertise and a collaborative mindset. Second, our processes, which are designed from start to finish with AI in the center. And third, our AI-powered technology, orchestrated by our CI&T Flow platform. The results of this integrated approach are tangible and significant. As you can see, we are delivering efficiency gains of over 50% across the entire digital creation cycle for major clients in industries like insurance, retail, and consumer goods. This is achieved through a powerful partnership between our people and AI. We augment our expert teams with AI agents, allowing them to focus on how we value strategic work while AI accelerates complex tasks.

Speaker #9: Our approach is not about a tool, but a powerful combination of three core elements. First, our adaptive teams, which bring the right expertise and a collaborative mindset.

Speaker #9: Second, our processes, which are designed from start to finish with AI at the center. And third, our AI-powered technology, orchestrated by our CI&T Flow platform.

Speaker #9: The results of this integrated approach are tangible and significant. As you can see, we are delivering efficiency gains of over 50% across the entire digital creation cycle for major clients in industries like insurance, retail, and consumer goods.

Speaker #9: This is achieved through a powerful partnership between our people and AI. We augment our expert teams with AI agents, allowing them to focus on high-value strategic work, while AI accelerates complex tasks.

Speaker #9: Ultimately, this is about more than just speed. It's about delivering a superior value proposition, enabling our clients to achieve their business goals with greater quality and predictability.

Bruno Guicardi: Ultimately, this is about more than just speed; it's about delivering a superior value proposition, enabling our clients to achieve their business goals with greater quality and predictability. We entered the second quarter with over 7,600 CI&Ters, a growth of more than 22% year over year. This deliberate expansion ensures we have the capacity and skills to meet the increased demand for our AI-first solutions. Stability is just as important as growth, and our voluntary attrition rate remains at a healthy 10.6%. This industry-leading retention directly reflects our culture, which fosters growth, learning, and impact. Together, this growth and stability create a powerful people platform that enables us to deliver on our promises and drive sustainable growth for the company. Now, I'll pass it on to Stanley to comment on our financial performance.

Speaker #9: We entered the second quarter with over 7,600 CI teers, a growth of more than 22% year-over-year. This deliberate expansion ensures we have the capacity and skills to meet the increased demand for our AI-first solutions.

Speaker #9: Stability is just as important as growth, and our voluntary attrition rate remains at a healthy 10.6%. This industry-leading retention directly reflects our culture, which fosters growth, learning, and impact.

Speaker #9: Together, this growth and stability create a powerful people platform that enables us to deliver on our promises and drive sustainable growth for the company.

Speaker #9: Now, I'll pass it on to Stanley to come in on our financial performance.

Speaker #1: Thank you, Bruno, and

Cesar Gon: Thank you, Bruno, and good afternoon, everyone. I'm happy to walk you through the results of another strong quarter for CI&T. In the second quarter of 2025, our revenue was 117.2 million, an increase of 8% from the same period last year. When adjusting for currency fluctuations, our organic revenue growth at constant currency was 12.3% year over year. This marks our third consecutive quarter of double-digit organic growth at constant currency. This consistent and predictable performance underscores the resilience of our business model and reinforces our confidence in achieving our full-year guidance. Our consistent growth is supported by a resilient and diversified business model anchored in our two most representative regions, North America and Latin America. In the second quarter, revenue from LATAM increased by 26% year over year, and we see continued momentum there in both landing new logos and expanding our existing partnerships.

Speaker #3: good afternoon, everyone. I'm happy to walk you through the results of another strong quarter for CI&T. In the second quarter of 2025, our revenue was $117.2 million, an increase of 8% from the same period last year, when adjusting for currency fluctuations, our organic revenue growth at constant currency was 12.3% year-over-year.

Speaker #3: This marks our third consecutive quarter of double-digit organic growth at constant currency. This consistent and predictable performance underscores the resilience of our business model and reinforces our confidence in achieving our full-year guidance.

Speaker #3: Our consistent growth is supported by a resilient and diversified business model anchored in our two most representative regions: North America and Latin America. In the second quarter, revenue from Latin America increased by 26% year-over-year, and we see continued momentum there, in both landing new logos and expanding our existing partnerships.

Speaker #3: North America grew by a solid 7%, showing consistent performance on top of a relevant base from 2024. In addition, revenue from our top 10 clients grew by 12% compared to the same period last year.

Cesar Gon: North America grew by a solid 7%, showing consistent performance on top of a relevant base from 2024. In addition, revenue from our top 10 clients grew by 12% compared to the same period last year. This growth demonstrates our ability to expand within our largest accounts by consistently delivering efficiency and tangible business results. This chart clearly shows our land and expand strategy in action. We expanded our high-potential cohort of clients in the 5 to 10 million range, from 11 clients in 2024 to 15 over the last 12 months. This growth is a key leading indicator, building the pipeline for our next generation of strategic accounts, fostering sustainable growth. For the second quarter of 2025, adjusted EBITDA was 21.5 million, making a 3.1% year-over-year growth. This corresponds to an adjusted EBITDA margin of 18.4%.

Speaker #3: This growth demonstrates our ability to expand within our largest accounts by consistently delivering efficiency and tangible business results. This chart clearly shows our landing expansion strategy in action.

Speaker #3: We expanded our high-potential cohort of clients in the 5 to 10 million range from 11 clients in 2024 to 15 over the last 12 months.

Speaker #3: This growth is a key leading indicator, building the pipeline for our next generation of strategic accounts, fostering sustainable growth. For the second quarter of 2025, adjusted EBITDA was $21.5 million, reflecting a 3.1% year-over-year growth.

Speaker #3: This corresponds to an adjusted EBITDA margin of 18.4%. In the first half of 2025, our adjusted EBITDA grew 8.5%, and the adjusted EBITDA margin was 30 basis points higher compared to the same period last year.

Cesar Gon: In the first half of 2025, our adjusted EBITDA grew 8.5%, and the adjusted EBITDA margin was 30 basis points higher compared to the same period last year. Cash generated from operating activities for the first half of 2025 amounted to 33.7 million, achieving an 82% cash conversion from adjusted EBITDA to operating cash. Our strong financial position provides the flexibility to pursue opportunities that enhance our competitive standing and create long-term value for our stakeholders. In this context, we have a share buyback program in place, and we remain active. Finally, adjusted profit recorded $12.2 million in the second quarter of 2025, compared to $12.5 million in the same period previous year. This led to an adjusted net income margin of 10.4%. In the first half of 2025, the adjusted profit was 21.8 million, a 4.3% increase over the first half of 2024.

Speaker #3: Cash generated from operating activities for the first half of 2025 amounted to $33.7 million achieving an 82% cash conversion from adjusted EBITDA to operating cash.

Speaker #3: Our strong financial position provides the flexibility to pursue opportunities that enhance our competitive standing and create long-term value for our stakeholders. In this context, we have a share buyback program in place, and we remain active.

Speaker #3: Finally, adjusted profit recorded 12.2 million dollars in the second quarter of 2025, compared to 12.5 million in the same period previous year. This led to an adjusted net income margin of 10.4%.

Speaker #3: In the first half of 2025, the adjusted profit was $21.8 million, a 4.3% increase over the first half of 2024. Our adjusted diluted earnings per share was $0.09 in the second quarter of 2025, a 3.6% increase compared to the second quarter of 2024.

Cesar Gon: Our adjusted diluted earnings per share was $0.09 in the second quarter of 2025, a 3.6% increase compared to the second quarter of 2024. Now, I invite Cesar to comment on our business outlook. Thank you, Stanley. Based on our consistent performance over the past quarters and the strong commercial momentum we are carrying into the second half of the year, we are confident in our outlook. In the third quarter of 2025, we expect net revenue to be at least $124.4 million. This represents a strong sequential step-up and a year-over-year growth of at least 10.5% at constant currency. For the full year of 2025, we are narrowing our range and raising the lower bound of our revenue guidance, now expecting organic revenue growth at constant currency between 10.5% and 15%. This means our midpoint has also increased to 12.75%.

Speaker #3: Now, I invite Cesar to comment on our business outlook. Thank you, Stanley. Based on our consistent performance over the past quarters and the strong commercial momentum we are carrying into the second half of the year, we are confident in our outlook.

Speaker #3: In the third quarter of 2025, we expect net revenue to be at least $124.4 million. This represents a strong sequential step up and a year-over-year growth of at least 10.5% at constant currency.

Speaker #3: For the full year of 2025, we are marrying our range and raising the lower bound of our revenue guidance. Now expecting organic revenue growth at constant currency between 10.5% and 15%.

Speaker #3: This means our midpoint has also increased to 12.75%. Assuming that tax rates of 5.50 rise to the dollar for the remainder of the year, we expect our revenue growth at constant currency to be around $210 basis points above our reported revenue growth.

Cesar Gon: Assuming the effects rate of 5.50 reais to the dollar for the remainder of the year, we expect our revenue growth at constant currency to be around 210 basis points above our reported revenue growth. In addition, we are maintaining our adjusted EBITDA margin guidance in a range of 18% to 20%. This increased confidence is the direct result of our strategy in action: a robust commercial pipeline, continued expansion with our largest clients, and AI-first offerings that deliver tangible value, accelerating our growth. To conclude, I want to express my deep appreciation to our CI&Ters around the world. Your commitment to innovation and to delivering value to our clients is what makes these results possible. This concludes our presentation. We will now begin the Q&A session. Thank you.

Speaker #3: In addition, we are maintaining our adjusted EBITDA margin guidance in the range of 18 to 20%. This increased confidence is the direct result of our strategy in action.

Speaker #3: Our robust commercial pipeline continued expansion with our largest clients and AI-first offerings that deliver tangible value, accelerating our growth. To conclude, I want to express my deep appreciation to our CI&Ters around the world.

Speaker #3: Your commitment to innovation and to delivering value to our clients is what makes these results possible. This concludes our presentation. We will now begin the Q&A session.

Speaker #3: Thank you.

Speaker #2: Alright, we'll now begin the Q&A session. I'll announce each participant's name. Once you hear your name, please unmute your line and ask your question.

Eduardo Galvao: All right, we'll now begin the Q&A session. I'll announce each participant's name. Once you hear your name, please unmute your line and ask your question. Then, when you're done, please mute your line. The first question comes from Pune Jain from JP Morgan. Hi, Pune.

Speaker #2: Then, when you're done, please mute your line. The first question comes from Pune Jain from JPMorgan. Hi, Pune.

Speaker #8: Hey, thanks for taking my question. Can you talk about, like, adoption of CI&T Flow among your clients and internal stakeholders? Like, of the 120 million or so of quarterly revenue, how much of those projects or revenue include some portion of Flow-driven services?

Pune Jain: Hey, thanks for taking my question. Can you talk about, like, adoption of CI&T Flow among your clients and internal stakeholders? Like, of the 120 million or so of quarterly revenue, how much of those projects or revenue include some portion of flow-driven services?

Speaker #2: Thank you, Pune. I can get this one. Basically, our adoption of CI&T teams regarding CI&T Flow is reaching 90% of our teams, so we can, as a proxy, say that 9% of our revenue now has some influence of AI and CI&T Flow.

Eduardo Galvao: Thank you, Pune. I can guide this one. Basically, our adoption, the adoption of CI&T teams regarding CI&T Flow is reaching 90% of our teams. So we can, as a proxy, say that 9% of our revenue now has some influence of AI and CI&T Flow. This is not directly related to use cases, business use case relating to generative AI, but saying that now basically everything we do, 90%, is somehow boosted by artificial intelligence and flow.

Speaker #2: This is not directly related to use cases, business use case relating to generative AI, but saying that now basically everything we do, 90% is somehow boosted by artificial intelligence and Flow.

Speaker #8: No, that's great to hear it. It seems like it's definitely higher. Then a lot of your peers. Another question, like, are you seeing any differences in AI adoption across different verticals?

Pune Jain: No, that's great to hear. It seems like it's definitely higher than a lot of your peers. Another question, like, are you seeing any differences in AI adoption across different verticals? It seems like financial services was very strong in the quarter, retail not quite as much. So what would you attribute these differences in growth rates across verticals to?

Speaker #8: It seems like financial services was very strong in the quarter retail, not quite as much. So what would you attribute this differences in growth rates across verticals to?

Speaker #2: I think financial services are clearly ahead in terms of investments related to AI, first, because the level of return on investment just with efficiency is amazing.

Eduardo Galvao: I think financial services is clearly ahead in terms of investments related to AI first because the level of return on investment just with efficiency is amazing. And also, especially in Brazil, we see the beginning of a new customer experience based on chatbots combined with WhatsApp becoming the new trend. So the consumers are migrating from traditional channels, digital channels like apps and websites, to interact with the products and services through WhatsApp and AI. So this is a huge trend and generates a lot of demand related to creating this new layer of customer experience based on AI. So then we see, I see a lot of move in retail regarding AI. Again, both in efficiency and also in creating this new layer of customer experiences. But I think in retail and even in consumer goods, there is a foundation to be created yet.

Speaker #2: So, especially in Brazil, we see the beginning of a new customer experience based on chatbots combined with WhatsApp, becoming a new trend.

Speaker #2: So, consumers are migrating from traditional channels to digital channels, like apps and websites, to interact with the products and services through WhatsApp and AI.

Speaker #2: So, this is a huge trend and generates a lot of demand related to creating these new layers of customer experience based on AI. Then we see, I see a lot of movement in retail regarding AI.

Speaker #2: Again, both in efficiency and in creating these new layers of customer experiences, I think in retail and even in consumer goods, there is a foundation to be created yet.

Speaker #2: Companies still have to migrate a lot of legacy systems, to modernize a lot of legacy systems, to create the data layers, and to create a level of, let's say, robustness in their architecture before they can leverage real benefits from AI.

Eduardo Galvao: Companies still have to migrate a lot of, to modernize a lot of legacy systems, creating the data layers, creating a level of, let's say, robustness in their architecture before they can leverage real benefits from AI. But this is also the source of a lot of demand, what we call kind of horizontal demand related to AI that is basically using AI for accelerated application modernization, cloud migration, several data engagements, preparing the foundation for a future AI-driven world. And we see, of course, maybe 30%, 40% of our demand is vertical demand. So improving customer experience journeys, boosting chatbots, as I mentioned, some more consulting AI-first transformation programs where the focus is AI adoption, and also a growing number of use cases related to personalizations based on AI. So a lot of things happening in this space. I think financial services has an edge for sure.

Speaker #2: But this is also the source of a lot of demand what we call kind of horizontal demand related to AI. That is basically using AI for accelerating application modernization, cloud migration, several data engagements preparing the foundation for future AI-driven world.

Speaker #2: And we see of course maybe 30-40% of our demand is vertical demand. So improved customer experience journeys, boosting chatbots as I mentioned, some more consulting AI-first transformation programs where the focus is AI adoption.

Speaker #2: And also a growing number of use cases related to personalizations based on AI. So, a lot of things are happening in this space. I think financial services has an edge, for sure.

Speaker #8: Gotcha. Thank you.

Pune Jain: Okay, thank you.

Speaker #2: Thank you, Pune. Our next question comes from Victor Tomita from Goldman Sachs. Victor, go ahead.

Eduardo Galvao: Thank you, Pune. Our next question comes from Victor Tomita from Goldman Sachs. Vinto, go ahead.

Speaker #9: Thank you. Thanks for taking our questions and hello again, everyone. So my question, a couple of questions from my side. The first one is on the guidance that you increased.

Victor Tomita: Thank you. Thanks for taking our questions, and hello again, everyone. So my question, a couple of questions from my side. The first one is on the guidance that you increased. Was that in part due to the year being halfway done? You're having more visibility, which allows you to be less conservative, or is demand from customers shaping up generally better than expected, being surprised positively? And also thinking across regions on that line, are there, my second question would be if you see now some regions where you are now more optimistic or less optimistic than before in terms of demand compared to earlier in the year? Thank you very much.

Speaker #9: Was that in part due to the year being halfway done? You're having more visibility, which allows you to be less conservative, or is demand from customers shaping up generally better than expected, being surprised positively?

Speaker #9: And also thinking across regions on that line, are there my second question would be if you see now some regions where you are now more optimistic or less optimistic than before in terms of demand compared to earlier in the year?

Speaker #9: Thank you very much.

Speaker #2: Sure, great to see you here, Victor. I think in terms of our guidance, I think this new outlook is supported by two factors. The first is our consistent performance in the first half of the year, so we deliver ahead of our initial expectations.

Eduardo Galvao: Sure. Great to see you here, Victor. I think in terms of our guidance, I think this new outlook is supported by two factors. The first is our consistent performance in the first half of the year, so we deliver ahead of our initial expectations. And the second is the current solid commercial pipeline for Latin America and North America. So to give you a data point, pipeline now is 25% higher than in the same period last year with a healthy conversion rate. So basically, we did a very strong and consistent Q1 and Q2, and we have a very strong pipeline that increases our confidence in our forecasts and guidance. The second question regarding regions, I think we continue to bet a lot on North America and Latin. That is basically 90% of our revenue.

Speaker #2: And the second is the current solid commercial pipeline for Latin America and North America. To give you a data point, the pipeline now is $0.25 higher than in the same period last year, with a healthy conversion rate.

Speaker #2: So, basically, we had a very strong and consistent Q1 and Q2. We have a very strong pipeline that increased our confidence in our forecasts and guidance.

Speaker #2: The second question regarding regions: I think we continue to bet a lot on North America and Latin America. That is basically 90% of our revenue.

Speaker #2: And we see stability from Q3 and Q4 for the Europe and APAC regions. Maybe a small increase in the last quarter for these emerging regions.

Eduardo Galvao: And we see stability from Q3 and Q4 for the Europe and APAC regions. Maybe a small increase in the last quarter for these emerging regions and a good prospect for 2026.

Speaker #2: And a good prospect for 2026.

Speaker #9: Here we are. Thank you very much.

Victor Tomita: Clear. Thank you very much.

Speaker #2: Thank you for your question.

Eduardo Galvao: Thank you for your question.

Speaker #9: Thank you, Victor.

Victor Tomita: Thank you, Victor.

Speaker #2: Our next question comes from Gustavo Farias from UBS. Hi, Gustavo.

Eduardo Galvao: Our next question comes from Gustavo Farias from UBS. Hi, Gustavo.

Speaker #10: Hi, everyone. Thanks for taking my questions. So I'd like to start off by asking about the revenue growth. If you could break it down between the components of new engagements, both new clients and the ramp-up of current clients, and also the price—what comes from price?

Stanley Rodrigues: Hi, everyone. Thanks for taking my questions. So I'd like to start off by asking about the revenue growth. If you could break it down between the components of new engagements, both new clients and the ramp-up of current clients, and also the price, what comes from the price component. And the second one, we've seen some sequential improvement in Latin, which was very positive in our view. I'd like to compare it to your view from last quarter. There has been some volatility in IT budgets. I just wanted to know your view on that, if it has improved or how you see the overall landscape in the industry. Thank you.

Speaker #10: Component. And the second one, we've seen some sequential improvement in Latin, which was very positive in our view. I'd like to compare it to your view from last quarter.

Speaker #10: There has been some volatility in IT budgets, just wanted to know your view on that, if it has improved or how you see the overall landscape in the industry.

Speaker #10: Thank you.

Speaker #2: Thanks, Gustavo. The first question regarding our growth is 90% expansion inside our current portfolio. And 10% is contribution from recently acquired clients. So this is basically in general our landing expansion ratio and we are keeping the same pace this year.

Eduardo Galvao: Thanks, Gustavo. The first question regarding our growth is 90% expansion inside our current portfolio, and 10% is contribution from recently acquired clients. So this is basically, in general, our landing spend ratio, and we are keeping the same pace this year. Regarding regions, particularly you mentioned Latin America, I think the, and we grew 26% year over year this quarter in reported revenue. I think it's driven by, I would say, a surprisingly fast AI adoption in Brazil, both among customers, consumers, and enterprise. I see, especially in financial services, I think a pace that is unique, even comparing to more developed markets like the US. So I think this is probably part of the explanation why we have such attraction in Brazil and in financial services.

Speaker #2: Regarding regions in particular, you mentioned Latin America. I think we grew 26% year-over-year this quarter in reported revenue. I think it's driven by, I would say, a surprisingly fast AI adoption in Brazil, both among customers, consumers, and enterprises.

Speaker #2: It's I see, especially in financial services, I think a pace that is unique even comparing to more developed markets like the US. So I think this is probably part of the explanation why we have such a traction in Brazil and in financial services.

Speaker #10: Yeah, very clear. Thank you.

Stanley Rodrigues: Yeah, very clear. Thank you.

Speaker #2: Thank you, Gustavo.

Eduardo Galvao: Thank you, Gustavo.

Speaker #9: Thank you, Gustavo.

Stanley Rodrigues: Thank you, Gustavo. Our next question comes from Brian Bergen from TD Cowen. Hi, Brian.

Speaker #2: Our next question comes from Brian Bergen from TD Cowen. Hi, Brian.

Speaker #10: Hey, guys. Can you hear me?

Bruno Guicardi: Hey, guys, can you hear me?

Speaker #2: Yes.

Stanley Rodrigues: Yes.

Speaker #10: All right, great. So my two questions. First, just on EBITDA. We'll talk margins first here. Can you talk about the EBITDA margin drivers on a year-over-year basis in the second quarter, and the path to hitting the guide in fiscal 25?

Bruno Guicardi: All right, great. So my two questions. First, just on EBITDA, we'll talk margins first here. Can you talk about the EBITDA margin drivers on a year-over-year basis in the second quarter and the path to hitting the guide in fiscal 25? Seems like FX headwinds may be a bit at play, but I'm just curious where you feel most comfortable in that 18% to 20%. And then my follow-up, can you just discuss, you know, you've had good hiring the first half. Can you talk about hiring intentions in the second half and how you expect to exit the year?

Speaker #10: Seems like FX headwinds may be a bit at play, but I'm just curious where you feel most comfortable in that 18 to 20%. And then my follow-up, can you just discuss, you know, you've had good hiring the first half.

Speaker #10: Can you talk about hiring intentions in the second half and how you expect to exit the year? the

Speaker #2: Brian, thank you for

Stanley Rodrigues: Brian, thank you for the question. Well, with regard to your first question, I can handle that one. EBITDA, we haven't delivered. We improved sequentially, delivering 18.4% of EBITDA, adjusted EBITDA in the second quarter. And basically, we have a seasonality built in our business throughout the quarters, right? As in the first quarter, we have a salary increase. And typically, we, throughout the year, pass on prices and improve margins. Also, we are, in the first half, we've been investing in hiring, preparing ourselves for the second half demand that is ahead of us. And of course, those resources, those people, when they mature and they become billable in the second half, this will also improve cross-margin and EBITDA.

Speaker #10: question. Well, with regard to your first question, I can handle that one. EBITDA we we have delivered. We improved sequentially, delivering 18.4% of the EBITDA adjusted EBITDA in the second quarter.

Speaker #10: And basically, we have a seasonality built in our business throughout the quarters, right? As in the first quarter, we have a salary increase, and typically we throughout the year pass on prices and improve margins.

Speaker #10: Also, we are in the first half, we've been investing in hiring, preparing ourselves for the second half, demand that is ahead of us, and of course, those resources, those people, when they mature and they become billable in the second half, this will also improve cross-margin and EBITDA.

Speaker #10: Also, another driver is efficiency gains. From AI that we are experimenting at the G&A level, together with a very disciplined cost management management there, and of course, the scalability that it provides.

Stanley Rodrigues: Also, another driver is efficiency gains from AI that we are experimenting at the G&A level, together with a very disciplined cost management there, and of course, the scalability that it provides. We continue to balance this with strategic investments in hiring, training, and in our AI platform to support our growth. And typically, looking ahead, we expect our margins to continue improving in the second half with the combination of all those factors. So we are very confident in our ability to deliver this full-year adjusted EBITDA margin guidance of 18% to 20%.

Speaker #10: We continue to balance this strategic investments in hiring, training, and in our AI platform to support our growth. And typically, looking ahead, we expect our margins to continue improving in the second half with the combination of all those factors.

Speaker #10: So we are very confident to in our ability to deliver this full-year adjusted EBITDA margin guidance of 18 to 20%.

Speaker #2: Just to complement on the staff growth, Brian, most of that staff growth is actually coming from our trainee program. We hired about 500 people.

Bruno Guicardi: Just to complement on the staff growth, Brian, most of that staff growth is actually coming from our trainee program. We hired like 500 people in the beginning of the year that will, as Stanley mentioned, it will start building in the second half of the year. So that's the most part of that, the higher rate of people growth and revenue growth that is seen there. And that will kind of balance out in the second half. And that's why we're very, very excited about this special edition of the training program because this will be the first generation that we're kind of enabling these people to only work with AI, right? So there's no adaptation or kind of learning curve. It will be the first native AI developers that the CI&T ranks. We're super excited to put that in action.

Speaker #2: In the beginning of the year, as Stanley mentioned, it will start billing in the second half of the year. So that's the most part of the higher rate of people growth than revenue growth that you see there.

Speaker #2: And that will kind of balance out in the second half. We're very excited about this special edition of the training program because this will be the first generation that we're enabling these people to only work with AI, right?

Speaker #2: So there's no adaptation or kind of learning curve. It will be the first native, you know, AI developers that Sanity ranks are super excited to put that in action.

Speaker #9: All right, that's clear. Thank you.

Stanley Rodrigues: All right, that's clear. Thank you.

Speaker #2: Thank you, Brian. Our next question comes from Luke Morrison from Canaccord. Hi, Luke.

Eduardo Galvao: Thank you, Brian. Our next question comes from Luke Morrison from Canaccord. Hi, Luke.

Speaker #10: Hey, guys. Good to see you. I got a couple here for you. So great to see your largest client continuing to grow really strongly, real testament to the strength of that relationship.

Luke Morrison: Hey, guys, good to see you. I got a couple here for you. So great to see your largest client continuing to grow really strongly, real testament to the strength of that relationship. Could you maybe just share, like, what's working particularly well with that customer? And if possible, clarify, like, what does constant currency look like with that client today? And then across the rest of your top 10 clients today, are you seeing similar momentum and/or potential? And again, would it be possible if you could also just frame constant currency growth within that group?

Speaker #10: Could you maybe just share like what's working particularly well with that customer? And if possible, clarify like what does constant currency look like with that client today?

Speaker #10: And then across the rest of your top 10 clients today, are you seeing similar momentum and/or potential? And again, would it be possible if you could also just frame constant currency growth within that group?

Speaker #2: Sure. Hey, Luke. Great to see you here. I think we see very solid and consistent growth in our largest clients. We had sequential growth in 8 out of 10 of our top clients.

Eduardo Galvao: Sure. Hey, Luke, great to see you here. I think we see a very solid and consistent growth in our largest clients. We had sequential growth in 8 out of 10 of our top clients. Of course, top one was a very good performance. It's a very large financial organization, so we expand across several business units. Basically, we credit that to our ability to demonstrate the kind of differential productivity and effectiveness of CI&T Flow in our AI approach. So driving efficiency and also leveraging AI adoption across the board, I think is probably the main reason why we are expanding in such an amazing way. But we see the same happening in different areas of our largest clients.

Speaker #2: Of course, top one was a very good performance is a very large financial organization, so we expand across several business units. Basically, we credit that to our ability to demonstrate the kind of differential productivity and effectiveness of CI&T Flow in our AI approach.

Speaker #2: Driving efficiency and leveraging AI adoption across the board, I think, is probably the main reason why we are expanding in such an amazing way.

Speaker #2: But we see the same happening in different areas of our largest clients. Everyone now is looking for both combining and finding a way to be more effective regarding more concrete benefits of adopting AI.

Eduardo Galvao: Everyone now is looking for both, combining to find a way to be more effective regarding more concrete and regarding the benefits of adopting AI, but also starting to prepare the foundational legacy systems, data lakes, and so on to really drive value in the next phase of generative AI and the evolution of the capabilities of these large language models. So in terms of constant currency, I don't know if Stanley or Galvão can have.

Speaker #2: But also starting to prepare the foundational legacy systems, data lakes, and so on, to really drive value in the next phase of generative AI and the evolution of the capabilities of this large language models.

Speaker #2: So, in terms of constant currents, I don't know if Stanley will go along.

Speaker #10: What I can bring here, Luke, is for the top client, in terms of constant currency, we grew year over year, 92%. Yeah. The top 10 clients, I don't have the constant currency data here.

Stanley Rodrigues: What I can bring here, Luke, is for the top client, in terms of constant currency, we grew year over year, 92%. Yeah. The top 10 clients, I don't have the constant currency data here. It's close to 12% growth year over year, right? And if we get, of course, as we have 10 top 10 clients, they vary from one year to another year. If we take the current existing top 10 clients, that cohort grew 23% year over year, right? So it's another data point. So the existing top 10 clients, they grew 23% year over year. That's a reported currency. I don't have a constant currency for that as well.

Speaker #10: It's close to 12% growth year over year, right? And if we get of course, as we have 10 top 10 clients, they vary year from another from one year to another year.

Speaker #10: If we take the current existing top 10 clients, that cohort grew 23% year over year, right? So it's another data point. The existing top 10 clients grew 23% year over year.

Speaker #10: That's a reported currency. I don't have the constant currency for that as well.

Speaker #9: Excellent. Very, very good color. Thank you. And then maybe just to follow up, how would you say you know is there any difference between your US client base and how that's trending relative to Brazil today?

Luke Morrison: Excellent. Very, very good color. Thank you. And then maybe just to follow up, how would you say, you know, is there any difference between your US client base and how that's trending relative to Brazil today? Are you seeing any differences in spending patterns or project types, maturity in terms of adopting AI? And then are there any signs of macro caution or tariff-driven instability in either market that you're seeing with the recent geopolitical stuff going on?

Speaker #9: Are you seeing any differences in spending patterns or project types? Maturity in terms of adopting AI, and then are there any signs of macro caution or tariff-driven instability in either market that you're seeing with recent geopolitical stuff going on?

Speaker #2: Sure. I can start here, and Bruno, feel free to add on. I see especially financial services in Brazil, where we have a very competitive environment, investing a lot and with a very high sense of urgency regarding artificial intelligence.

Eduardo Galvao: Sure. I can start here and, Bruno, feel free to add on. I see, especially financial services in Brazil, where we have a very competitive environment, investing a lot, and with a very high sense of urgence regarding artificial intelligence. I see solid moves in the US, but maybe not as we are seeing in Brazil. We have, of course, for the US, we have a larger exposure to consumer goods that has a different dynamic. It's also leveraging the benefits of AI and this new age of disruption, but in a different fashion than a pure tech business like financial services.

Speaker #2: I see solid moves in the U.S., but maybe not as we are seeing in Brazil. We have, of course, for the U.S., a larger exposure to consumer goods that has a different dynamic.

Speaker #2: It's also leveraging the benefits of AI and the new age of disruption, but in a different fashion than a pure tech business like financial services.

Speaker #10: If I may add, Luca, if you divide the opportunity into two sides, one is internal, where the efficiency play is, where GenAI can bring.

Bruno Guicardi: If I may add, if you divide the opportunity in two sides, Luke, one is internal, right? The efficiency play, right? The genie I can bring. And that I think there's very little difference, regional, or even vertical, right? So everybody's kind of trying to seize that opportunity. So all verticals, all regions, people are investing to kind of try to seize the opportunity of increasing productivity, right? I think what is different here, and I think the big picture, if you look at the big picture, we're going to see massive investments in GenAI when there's consumer pressure. So when there's consumers asking for this new, different way to interact with brands and organizations. And to be absolutely frank, we haven't seen that yet.

Speaker #10: And that I think there's very little difference regional, even or even vertical, right? So everybody's kind of trying to seize that opportunity. So all verticals, all regions, people are investing to kind of try to seize the opportunity of increasing productivity, right?

Speaker #10: I think what is different here—and I think the big picture, if you look at the big picture, we're going to see massive investments in GenAI when there's consumer pressure.

Speaker #10: That's when there's consumers that asking for this new different way to interact with brands and organizations. And to be absolutely frank, we haven't seen that yet we didn't reach critical mass yet from consumer to actually to consumers to be, you know, provoking, challenging their banks, their telco companies that the companies that they interact with asking for that different experience.

Bruno Guicardi: We didn't reach critical mass yet for the consumer to actually, to consumers to be, you know, provoking, challenging their banks, their telco companies, the companies that they interact with, asking for that different experience. But that will come. That will certainly come. That's down the road. It's just a matter of, you know, consumers getting used to it. And to Cesar's point, we're already seeing this starting in Latin America, right? So when that started, then the genie is out of the box, and then there's no putting back. And then the level of investment, we expect it to increase exponentially because then it's not to capture, you know, a couple of percentage points in margins. It's actually to survive, to kind of fight for consumer attention and relevance. And then the investment will speed up and will increase significantly. And that will come.

Speaker #10: But that will come. That will certainly come. That's down the road. It's just a matter of consumers getting used to it. And to Cesar's point, we have already seen this start in Latin America, right?

Speaker #10: So when that started, then the G needs out of the it's out of the box and then there's no putting back and then the level of investment we expected to, you know, to increase exponentially because then it's then it's not a to capture, you know, a couple percentage points in margins is actually to survive, to kind of to fight for consumer attention and relevance.

Speaker #10: And then the investment will speed up and will increase significantly. And that will come. It's hard to predict when—if it's in six months or 18 months—but it will come.

Bruno Guicardi: It's hard to predict when, if it's in six months or 18 months, but it will come.

Speaker #9: Excellent. Very, very helpful color. And maybe just to the last part of that question, the tariff-driven instability. Are you seeing anything there?

Luke Morrison: Excellent. Very, very helpful color. And maybe just to the last part of that question, the tariff-driven instability, are you seeing anything there?

Speaker #2: No, not particularly. I think we are again, financial not directly, right? So our clients are kind of a protector from that. We will have a big exposure as an old financial services and consumer goods and even consumer goods majority it's majority of that consumer goods portfolio is actually food and beverage, which is kind of a more local supply chain.

Eduardo Galvao: No, not particularly. I think we are, again, financial, not directly, right? So our clients are kind of protected from that. We will have a big exposure, as you know, financial services and consumer goods. And even consumer goods, the majority of that consumer goods portfolio is actually food and beverage, which is kind of a more local supply chain. So very, very little exposure there in the portfolio clients for the tariffs. But no one is 100% protected, but that's where we are right now.

Speaker #2: So very, very little exposure there in the portfolio clients for the tariffs. But no one is 100% protected, and that's where we are right now.

Speaker #9: Excellent. Okay, thank you guys.

Luke Morrison: Excellent. Okay, thank you, guys.

Speaker #2: Thank you.

Eduardo Galvao: Thank you.

Speaker #1: Thanks, Luke. Our next question comes from Maria Clara from Itaú. Hi, Clara.

Luke Morrison: Thanks, Luke. Our next question comes from Maria Clara from Itaú. Hi, Clara.

Speaker #11: Hey, everyone. Thanks for taking my question. So, the first one is related to the revenue build-up of CI&T. We hear from some channel checks that the evolution of AI is probably having a deflationary impact on top-line growth trends of these industries going forward.

Maria Clara: Hey, everyone. Thanks for taking my question. So the first one is related to the revenue buildup of CI&T. We hear from some channel checks that the evolution of AI is probably having a deflationary impact in top-line growth trends of this industry going forward. So just wanted to check if you agree with this information and if you could share with us how you think about the evolution of volume and price going forward in the following quarters. And the second question is related to utilization rates. You have been accelerating the hirings. So just wanted to know how you think about the potential improvement ahead. Thank you.

Speaker #11: So, I just wanted to check if you agree with this information and if you could share with us how you think about the evolution of volume and price going forward in the following quarters.

Speaker #11: And the second question is related to utilization rates. You have been accelerating the hirings, so I just wanted to know how you think about the potential improvement ahead.

Speaker #11: Thank you.

Speaker #2: Sure. Thank you for your questions. I can get the first one. And Bruno can get this handle the second. Regarding we don't see this is this is such a fragmented market.

Eduardo Galvao: Sure. Thank you for your questions. I can get the first one, and Bruno can handle the second. Regarding, we don't see, this is such a fragmented market. IT services is very, it's hugely fragmented across the world. So we don't see a shortage of demand. What we see now is a lot of difference in performance among the players, and this is a huge opportunity. We believe we are in the frontier of productivity and effectiveness of using AI to streamline the whole production of digital solutions. So we are taking advantage of this edge to replace poor-performance competitors. And so we basically are seeing a lot of opportunities to expand our client wallet by replacing no AI or poor-performance competitors and also increase our land capabilities with the new set of offerings we are designing around the new possibilities regarding artificial intelligence.

Speaker #2: IT services is very usually fragmented across the world. So it's we don't see a shortage of demand. What we see now is a lot of difference in performance among the players.

Speaker #2: And this is a huge opportunity. We believe we are on the frontier of productivity and effectiveness—using AI to streamline the whole production of digital solutions.

Speaker #2: So we are taking advantage of this edge to replace poor performance competitors. And so we basically are seeing a lot of opportunities to expand our client wallet by replacing no AI or poor performance competitors.

Speaker #2: And also increase our land capabilities with the new set of offerings we are designing around the new possibilities regarding artificial intelligence. There is regarding pricing models, I think the rise of AI in the IT services services industry is is inevitably we will be in space for more flexible value-based pricing models closely maybe more closely tied to the business outcomes.

Eduardo Galvao: Regarding pricing models, I think the rise of AI in the IT services industries inevitably will open space for more flexible, value-based pricing models, maybe more closely tied to the business outcomes. We also see the need to gradually monetize the intellectual property embedded in those new agent architectures. And when we look at our cohort of large enterprises, we anticipate a gradual shift from traditional time-material or fixed-price projects to these new models over the next few years. So it's an amazing and perfect moment to proactively test and refine this approach with our clients, and we are already doing so in several fronts, I would say in a very controlled way. And we have some encouraged early results. And it's going to happen gradually along a set of years.

Speaker #2: We also see the need to gradually monetize the intellectual property embedded in those new agentic architectures. When we look at our cohort of large enterprises, we anticipate a gradual shift from traditional time and materials or fixed-price projects to these new models over the next few years.

Speaker #2: So it's an amazing and perfect moment to proactively test and refine this approach with our clients and we are already doing so in several fronts in I would say in a very controlled way.

Speaker #2: And we have some encouraged early results. And it's going to happen gradually over a set of years. I see it as a mid-term opportunity to translate superior performance into margins while mainly strengthening our clients' partnerships by giving them more options in terms of pricing models.

Eduardo Galvao: And I see as a mid-term opportunity to translate superior performance into margins while maybe mainly strengthening our clients' partnerships by giving them more options in terms of pricing models. I think this is good news for the whole industry and the companies with more ability to execute more with more strong confidence on their execution capabilities. You'll capture more value for sure. That's the way I see pricing models evolving in the IT services industry and how I see CI&T benefiting from it.

Speaker #2: I think this is good news for the whole industry. The companies with greater ability to execute, along with stronger confidence in their execution capabilities, will capture more value for sure.

Speaker #2: That's the way I see pricing models evolving in the IT services industry and how I see CI&T benefiting from it.

Speaker #10: If I can add to the volume discussion, Maria Clara, and thanks for the question. That's the one trillion dollar question, right? The volume—back to my previous point—I think people are looking at this from the current lenses, which is kind of just the efficiency lenses and the internal use of GenAI.

Bruno Guicardi: If I can add to the volume discussion, Maria Clara, thanks for the question. That's the one trillion-dollar question. The volume, back to my previous point, I think people are looking at this from the current lenses, which is kind of just efficiency lenses and the internal use of GenAI. I think, again, when we move to the consumer-facing interfaces and the experiences that our GenAI will be embedded in, it completely, you know, rechanges the shape of digital experiences, right? So with agents, Swift, you know, completely different experiences, so replacing all the mobile apps and websites and the transactions that we know today. This will all have to be rebuilt and rewritten, right? So this is a tsunami of volume that is ahead of us, right? So, and not to mention, also there's the, yes, productivity will go up by a lot.

Speaker #10: I think again, when we move to the consumer-facing interfaces and the experiences, how GenAI will be embedded and completely, you know, rechange the shape of digital experiences, right?

Speaker #10: So with agents, with you know completely different experience replacing all the mobile apps and websites and the transactions that we know today. This will all have to be rebuilt and rewritten.

Speaker #10: Right? So this is a tsunami of volume that is ahead of us, right? And not to mention, also, yes, productivity will go up by a lot.

Speaker #10: And this will also tilt the scale between package solutions and custom-built software, right? So a lot of those built versus buy decisions that we see today will completely change in three to five years, right?

Bruno Guicardi: And this will also tilt the scale between packaged solutions and custom-built software, right? So a lot of those build versus buy decisions that we see today will completely change in three to five years, right? So, and we'll tilt towards, you know, building your own software because it will be cheaper and faster than depending on a provider that has a packaged solution, right? So that is also will kind of tilt the balance towards volume, towards, you know, services. So, so I think those things are underestimated because they're not being seen today, but they're massive and they're coming, and we're very excited that they will come.

Speaker #10: So and will tilt towards you know building your own software because it will be cheaper and faster than depending on a provider that has a package solution, right?

Speaker #10: So that will also kind of tilt the balance towards volume in services. I think those things are underestimated because they're not being seen today, but they're massive and they're coming.

Speaker #10: And we're very excited that they will come.

Eduardo Galvao: Bruno, do you want to comment on utilization rate?

Speaker #9: Utilization rate?

Speaker #2: Utilization continues to be very high. Around 85% to 89%. So our kind of delivery machine continues to be you know a shiny and well-oiled one that's that we're very proud that you know we have a so solid and very well-established delivery processes.

Bruno Guicardi: Utilization rate continues to be very high, around 85 to 89%. So, our kind of delivery machine continues to be, you know, a shiny and well-oiled one. That's that we're very proud that, you know, we have a solid and very well-established delivery processes. It's not coincidentally that, you know, 90% of our growth comes from the portfolio because you keep happy clients that keep, you know, buying more and increasing wallet share. That's a recipe, and we continue to execute on that.

Speaker #2: It's not coincidentally that 90% of our growth comes from the portfolio because we keep you keep happy clients that keep you know buying more and increasing wallet share.

Speaker #2: That's a recipe, and we continue to execute on that.

Speaker #11: Thank you for the answers.

Maria Clara: Thank you for the answers.

Speaker #2: Thank you.

Bruno Guicardi: Thank you.

Speaker #9: Thanks, Clara.

Eduardo Galvao: Thanks, Clara. We have a follow-up from Brian Bergen from TD Cowen regarding client behavior around GenAI and agentic work. Clearly, you're gaining traction with Flow. Have you had any trends where clients thought they could do it themselves and then have circled back to CI&T because it was too complex and they needed help? If so, how broad-based has it been? And if that has occurred, was there any different behavior where it may have been more design, agency-type activity versus pure software development type activity? I can.

Speaker #1: We have a follow-up from Brian Bergen from TD Cowen. Regarding client behavior around GenAI and agentic work. Clearly, you're gaining traction with Flow. Have you had any trends where clients thought they could do it themselves and then have circled back to CI&T because it was too complex and they needed help?

Speaker #1: If so, how broad-based has it been? And if that has occurred, was there any different behavior where it may have been more design, agency-type activity versus pure software development-type activity?

Speaker #2: We can start this one. Thank you, Brian, for your question. I think there is a lot of clients that are afraid of the complexity of the capabilities.

Cesar Gon: Start this one. Thank you, Brian, for your question. I think there are a lot of clients that are afraid of the complexity of the capabilities they need to develop if they want to have a full stack competence around AI. But there are some clients that are strategically, they see themselves as future tech-based companies. So they have a long-term ambition to have a larger set of tech and AI capabilities internally. And we have a value prop for both archetypes. So we can really partner with part of our clients and extend their capabilities with CI&T full stack AI and tech capabilities.

Speaker #2: They need to develop if they want to have a full-stack competence around AI. However, there are some clients that strategically see themselves as future tech-based companies.

Speaker #2: So, they have a long-term ambition to have a larger set of tech and AI capabilities internally. And we have a value proposition for both our archetypes.

Speaker #2: We can really partner with part of our clients and extend their capabilities with CI&T's full-stack AI and tech capabilities. Additionally, we'll have some clients where we are helping them internalize the new set of AI capabilities and methodologies, along with CI&T Flow, as part of a way to speed up adoption.

Cesar Gon: And also, we'll have some clients where we are helping them to internalize the new set of AI capabilities and methodologies and CI&T Flow also as part of a way to speed up adoption of AI and creating hands-on experience for the technical teams and non-technical teams, or as we say, for the coders and non-coders. But now, I think every single professional needs to be reskilled with the AI possibilities to expand their problem-solving capabilities. So Flow is not only designed for coders.

Speaker #2: Of AI and creating hands-on experience for the technical teams and non-technical teams or as we say for the coders and non-coders. Because now I think every single professional needs to be reskilled with the AI possibilities to expand their problem-solving capabilities.

Speaker #2: So Flow is not only designed for coders, of course there's a lot of things there regarding improved building the technical building of digital solutions, but also there is a lot of things happening in this space of creating the right environment for non-coders, for professionals from HR, from marketing, from finance, from any area of supporting area of a company to increase their AI abilities and leverage value creating new agents, AI agents, and workflows around AI.

Cesar Gon: Of course, there's a lot of things there regarding improving the technical beauty of digital solutions, but also there's a lot of things happening in the space of creating the right environment for non-coders, for professionals from HR, from marketing, from finance, from any area of support area of a company to increase their AI abilities and leverage value, creating new agents, AI agents, and workflows around AI. So huge opportunity. We are preparing for any kind of demand our clients have. And I see a mix of companies counting more on outsourcing and strong partnerships with companies like CI&T. And companies decide that in the long term, they will need to internalize part of this or a good chunk of this expertise, and we are there to help them too.

Speaker #2: So, huge opportunity. We are preparing for any kind of demand our clients have, and I see a mix of companies counting more on outsourcing and strong partnerships with companies like CI&T. Besides that, they will need to internalize part of this or a good chunk of this expertise in the long term, and we are there to help them too.

Speaker #1: All right. That concludes our Q&A session. Cesar, back to you to proceed with your closing remarks. Thank you all.

Eduardo Galvao: All right, that concludes our Q&A session. Cesar, back to you to proceed with your closing remarks. Thank you all.

Speaker #2: Sure. Thanks, Yvonne. Bruno, Stanley, thank you all for joining us today. I'd like to extend my sincere appreciation for all CI&Ters around the world.

Cesar Gon: Sure. Thanks, Galvão, Bruno, Stanley. Thank you all for joining us today. I'd like to extend my sincere appreciation for all CI&Ters around the world. We are almost 8,000 CI&Ters now, and I'm always amazed for.