Good afternoon, and thank you for joining us for CI&T Fourth Quarter and Full Year 2025 Earnings Call. I am Eduardo Galvão, Director of Investor Relations. Joining me today to discuss our results and strategic milestones are Cesar Gon, our Founder and CEO, Bruno Guicardi, Founder and President for North America and Europe, and Stanley Rodrigues, our CFO. We're excited to share the details of a landmark year for the company. Before we begin, I would like to remind you that our remarks today will include forward-looking statements. These statements, including our business outlook, are based on the management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. We caution you not to place undue reliance on these forward-looking statements, as they're valid only as of the date when made. Additionally, we'll discuss certain non-GAAP financial measures.
We believe these provide a more comprehensive view of our underlying operational performance. For a full reconciliation of these measures to the most directly comparable GAAP metrics, please refer to the tables in our earnings release. Today's session is being recorded, and all participants are currently in a listen only mode. Following our presentation, we'll host a Q&A session. To participate, please submit your question via email to investors at ciandt.com. The full presentation deck is available on our investor relations website, and a replay of this call will be posted shortly after we conclude. With that, I'm pleased to hand the floor over to our Founder and CEO, Cesar Gon.
Good day, everyone. It is a privilege to share our results for 2025, our fifth year as a public company. 3three years ago, I suggest that while software has been eating the world, AI has fundamentally changed the menu. It's not just another wave, it's a different ocean. In our latest partnership with MIT Sloan Management Review, we explore why 95% of organizations still see little measurable returns on their AI investments. The companies that successfully scale AI are not necessarily those with the largest budgets, but those brave enough to redesign their culture. The real constraint on change is the speed of learning. We recently published a paper offering a map for organizations willing to close the gap between AI's potential and real world performance. The menu has changed. The question is whether organizations have the appetite to embrace it. AI adoption is no longer discretionary.
It's a structural necessity. Yet we see a clear productivity paradox. Organizations that effectively orchestrate people, processes, and technology can unlock productivity gains of up to 20x, compressing innovation cycles from years into weeks. Why do most companies struggle to capture value? Three reasons. First, the tool trap. Treating AI as software instead of transforming the operating model. Second, the learning gap. The real constraint is how fast the workforce learns to work with AI. Third, fragmented governance. Without a unified backbone like CI&T Flow, initiatives remain isolated experiments. At CI&T, we know transformation is never just technology. It's fundamentally human. That is what separates the 5% who scale AI from the 95% who only experiment. Success in this new environment requires more than tools. It requires architecture.
CI&T has codified decades of lean digital expertise into our AI transformation framework, designed to convert AI potential into financial performance. It focuses on three priorities. First, identify high-impact value streams. Second, define measurable business outcomes. Third, align the operating model to scale AI across the enterprise. This is powered by CI&T Flow, orchestrating humans, AI agents, data, and governance into a single management system. We have already reskilled our workforce around this model, enabling our clients to scale AI with real business impact. Now, let's turn to our financial highlights. In the fourth quarter, CI&T delivered record revenue of $134.3 million, representing 19.3% organic growth compared to Q4 2024. On a constant currency basis, growth was 13.9% year-over-year, exceeding the top end of our guidance range.
Our adjusted EBITDA margin was 18.4%, demonstrating stability and resilience as we continue to scale. Adjusted profit margin reached 14% for the quarter. For the full year 2025, our organic revenue growth at constant currency was 13.2%, positioning CI&T as the fastest-growing company among our peer group. This is high conviction growth. We continue to invest in the foundations of our future leadership in AI services, our CI&T Flow platform, our people, and our global sales engine. Stanley will provide a deeper dive into our financial metrics shortly. This mark our fifth consecutive quarter of double-digit organic growth, reflecting the compounding impact of our strategy. Our performance is driven by the trust of our strategic enterprise clients and our ability to deliver measurable outcomes in complex environments.
Over the past three years, we have embedded AI into our core offerings, entering what we call the acceleration phase, where our proprietary IP amplifies the value we deliver. As a result, our AI-powered offerings are expanding our pipeline, increasing engagement quality, and growing wallet share within existing accounts. To bring this to life, let's look at a few case studies that demonstrate how we are converting this framework into tangible business outcomes.
Bullla, digital-native fintech, found a new beat in software delivery, and CI&T Flow wasn't background noise, it was wired into the system. What took months collapsed into weeks. Productivity grooves up to 10x. GenAI, not as hype, but as infrastructure. Every commit is high in rhythm, every release on tempo. Business momentum with Bullla and CI&T.
Valleys to Coast provides a lifeline for 18,000 residents across the UK. Disconnected systems were limiting their impact, with critical information locked in separate platforms while families in housing lists waited for their homes. CI&T partnered with Valleys to Coast to change that. We built a unified digital platform that connects housing management and repairs in real time, transforming fragmented data into a single trusted source of truth. This isn't just about technology, it's about human outcomes. From syncing customers' details to accelerating property turnarounds, we're ensuring repairs happen on time and families get their keys faster. With less manual work and clearer data, Valleys to Coast can now reinvest where it matters most, supporting the residents and communities at the heart of its mission. That's the power of connected data. That's CI&T.
Working with CI&T, we've improved the lives of real people. We now put the right information in front of our teams instantly, accelerating property turnarounds, and reinvesting our time back into the community.
New York, January, NRF 2026, retail's biggest stage. On stage, from production to customer experience, the power of agentic ecosystems. Melissa Minkow of CI&T with Tony D'Onofrio of Sensormatic and TD Insights, and Taniosla Adedipe of Old Navy. Real conversations, real execution. CI&T and AI connecting operations to demand from production to experience. End-to-end systems. Connected enterprise. No fluff, just proof. We are at the top, not by narrative, by delivery. CI&T is a leader in the ISG 2025 report. Recognized as a leader in enterprise data modernization and AI services in the ISG Provider Lens AWS Ecosystem Partners 2025, a global benchmark for evaluating technology providers. Daily excellence. Industry recognition. This is a moment to look back, not with nostalgia, but with numbers that speak in bold. The CI&T and AWS partnership has evolved year after year. Today, more than 60% of our portfolio runs on AWS.
In Latin America alone, the business grew ten times year-over-year. We're one of just 19 partners worldwide selected for the AWS Generative AI Partner Innovation Alliance, a global initiative co-creating the next generation of GenAI solutions. BASF, Educas, C6 Bank. Not just logos, proof points. CI&T accelerates AWS. AWS amplifies CI&T.
The results we are seeing with our clients, collapsing months into weeks and achieving 10x productivity gains, are a testament of what's possible when AI becomes a core capability rather than just hype. To explain how we are crystallizing this success across our global footprint, I will invite Bruno to discuss our evolving delivery model and the strategic offerings driving these outcomes.
Thank you, Cesar. It's a pleasure to be here to discuss the evolution of our delivery model and the strength of our global offerings. We finished 2025 with a global team of 8,000 CI&Ters, averaging 640 AI tech professionals over the period of 14% increase from 2024. These are not just developers, they are consultants, designers, and engineers who empower our clients by blending strategy, customer-centric design, and advanced AI engineering. As Cesar touched upon, people are the heart of an AI first transformation. Our framework recognizes that this journey is multidimensional. You cannot simply install AI. You must advance people, processes, and technology simultaneously. We believe that breakthroughs in technology can only be sustained if they move in lockstep with organizational maturity.
As the service industry evolves into a hybrid of IP and talent, we are empowering our people to be architects of solutions and platforms. Through CI&T Flow, our teams can create, share, and reuse autonomous agents across the entire enterprise. By integrating lean principles and robust governance with our talent and technology, we are enabling our clients to move past simple efficiency gains and toward a complete reinvention of their business models. Now, let's see how we're fundamentally redefining the unit economics of software production. CI&T is capturing a massive performance arbitrage. By staying relentlessly ahead of the curve, the productivity gap between CI&T and non-AI or low-performing vendors is widening into a significant competitive moat. We're navigating this through a staged evolution. Today, we are in the AI-augmented phase. With our AI-native talent, we are already realizing 2x gains in individual productivity across the board.
In more mature engagements, we move to AI-coordinated efficiency. By integrating autonomous agencies into the workflow, we achieve 5x gains by collapsing lead times across the entire value stream. We're continuously working towards a 20x performance increase through AI-orchestrated reinvention, where AI coordinates the entire journey from concept to market. This evolution of our delivery engine demands a corresponding evolution in our business model. To capture the value of this 20x potential, we're gradually transitioning our clients to modern engagement models. We're moving beyond time and materials toward fixed price, outcome-based, and consumption-based contracts. This allows us to decouple our revenue from headcount and participate directly in the value we create. We aren't just watching the industry change. We're architecting the new standard. To see the technology making this 20x leap a reality today, let's look at our newest offering, the Agentic SDLC.
Historically, software development was a linear, human-dependent relay race. Our Agentic SDLC breaks this model by deploying an ecosystem of autonomous AI agents that mirror key development roles. These agents orchestrate the process to eliminate systemic waste, such as waiting times and handoff errors, while our senior engineers provide strategic guardrails to ensure every output is enterprise-ready. The backbone of this system is the enterprise knowledge base. This 360-degree data repository enables agents to continuously evolve, making decisions based on each client's specific context. This coordination of agentic speed and human strategic supervision is what unlocks unprecedented performance levels. We partner with clients to map and reinvent their entire SDLC, migrating their legacy processes into our Agentic platform. We are already seeing the financial and operational impact of this shift. With a life sciences client, we've secured over 8x productivity gains.
We've seen development cycles that previously took 8.5 days collapse to just half a day. With Bullla Solutions, as seen in our client case video, what used to take months is now delivered in weeks. They achieved up to 10x productivity increase through end-to-end automation across coding, documentation, and testing. Agentic SDLC is a structural engine that allows us to deliver superior value at a lower cost to serve. By compressing product creation cycles from months to days, we are fundamentally shifting our business model. We're moving from a labor-intensive delivery model to an IP-led model where our margins can expand significantly without traditional constraints of linear headcount growth. Our momentum and competitive edge are being validated by the world's leading ecosystems. 2025 has been a landmark year of recognition.
CI&T earned the AWS Generative AI Services Competency seal and was selected as one of only 19 partners worldwide in the AWS GenAI Partner Innovation Alliance, giving us early access to emerging technologies that keep our clients at the forefront of innovation. Our data expertise was also highlighted by Databricks, which recognized CI&T as Latin Enterprise Data Warehouse Partner of the Year for 2025, underscoring our ability to modernize legacy data foundations into high-value assets for agentic orchestration. Our strategic positioning is consistently validated by the industry's most respected independent analysts, including Forrester, Gartner, Everest Group, and ISG. Most notably, Forrester has named CI&T a leader in modern application development services for 2025, and the ISG Provider Lens reports recognize us as a leader in enterprise data modernization and AI services, while Gartner Peer Insights rates us as a strong performer in custom software development services.
Together, these accolades show that CI&T is not simply following market trends, but helping define the new gold standard for our industry. Now, I invite Stanley to guide us through our financial performance.
Thank you, Bruno, and good afternoon, everyone. It's a pleasure to provide more detail on what has been a year of exceptional execution and financial discipline for CI&T. In the fourth quarter of 2025, we delivered a robust revenue of $134.3 million, representing a 19.3% increase on a reported basis, fully organic. On a constant currency basis, we grew 13.9% year-over-year. This performance is significant, as Cesar mentioned. It marks our fifth consecutive quarter of double-digit organic growth. In a volatile macroeconomic environment, this consistency is a clear differentiator, providing the resilience of our business model. For the full year 2025, total revenue reached $489.7 million, an 11.5% increase over 2024 or 13.2% on a constant currency basis.
By balancing high velocity top-line expansion with stable margins, we are successfully compounding value for our shareholders. The narrative for 2025 is defined by the quality and composition of our growth. Our performance is anchored by our two most significant markets. Latin America delivered an outstanding 26.8% revenue growth for the full year, fueled by a rapid acceleration in digital and AI modernization across the region. In North America, we maintained a solid and steady trajectory with revenue growing 9.2% year-over-year, reflecting our maturing presence in the world's most competitive tech market. From a vertical perspective, we continue to see strong demand across our core sectors, specifically in financial services and retail and consumer goods verticals, where the demand for measurable AI-driven efficiency is reshaping how technology budgets are allocated. I want to double-click on the quality of our client partnerships.
At CI&T, our objective is to be the partner of choice for high-impact strategic transformations. The results of this approach are clear. Revenue from our top 10 clients grew 16.5% year-over-year in 2025. It is important to note that each of these top 10 accounts now generates a minimum of BRL 10 million in annual revenue. This outsized double-digit growth within our most deeply embedded accounts is a powerful market signal. It proves that even in our largest partnerships, we are finding new high-value opportunities to drive impact through the Agentic SDLC and AI-driven reinvention. Beyond our existing base, we are equally encouraged by our new client onboarding. Throughout 2025, we saw a consistently strong pipeline and robust conversion rates. This balanced portfolio of regions, loyal top-tier clients, and diverse industries provides us with a very solid foundation for the year ahead.
Now, let's discuss our profitability and cash flow. For the fourth quarter, adjusted EBITDA reached BRL 24.8 million, an 11.6% increase year-over-year, resulting in an adjusted EBITDA margin of 18.4%. The margin decline was driven by two specific headwinds, the unfavorable foreign exchange environment and the resumption of payroll taxes in Brazil. In addition, we have been deliberately investing upfront in our AI platform, our workforce reskilling, and global sales initiatives as a strategic choice to accelerate our top-line growth. For the full year 2025, adjusted EBITDA was BRL 89.4 million, up 9.1% from 2024. This resulted in a full year margin of 18.3%. In 2025, cash generated from operating activities reached BRL 81.2 million, representing a remarkable 90.8% cash conversion rate from adjusted EBITDA.
Our free cash flow totaled BRL 45.8 million, which represents a cash conversion rate of 91.3% from adjusted profit. This level of conversion is a testament to our operational efficiency and disciplined working capital management. It provides us with significant balance sheet flexibility to continue funding our strategic pivot toward an AI agentic model while maintaining a strong, de-risked financial position. Turning to the next slide, let's look at how our top-line momentum translated into bottom-line results. For the fourth quarter, adjusted net profit reached BRL 18.8 million, a 41.8% increase year-over-year. This pushed our adjusted net profit margin to 14%. Consequently, our adjusted diluted earnings per share rose to BRL 0.14, marking a 48% increase from the previous year.
For the full year 2025, adjusted profit was BRL 51.9 million, up 16.9% compared to 2024, with margins expanding 50 basis points to 10.6%. Our full year adjusted diluted earnings per share grew to $0.39, a 20% increase over the prior year. This earnings outperformance was driven by two key factors. First, our disciplined management of SG&A expenses. Second, the strategic execution of our share repurchase program. By reducing the share count at what we believe are highly attractive valuation levels, we have successfully amplified the value delivered to our shareholders. In summary, 2025 was a year of consistent high quality execution. We delivered five consecutive quarters of double-digit organic growth, maintained a resilient margin profile, and achieved elite level cash conversion.
Combined with our active buyback program, CI&T is demonstrating its ability to be both a high growth AI leader and a disciplined compounder of shareholder value. We enter 2026 with a stronger balance sheet, a more efficient delivery model, and a clear path to continued outperformance. With that, I would like to invite Cesar back to share our business outlook for 2026. Thank you.
Thank you, Stanley. Our 2026 outlook reflects our commitment to sustaining growth while continuing to invest in the shift towards an AI native operating model. For the first quarter of 2026, we expect revenue of at least $134.7 million, representing 21.5% growth year over year, or 14.3% at constant currency. For the full year 2026, we expect revenue in the range of $548.4 million-$568 million, implying organic growth of 12%-16% year over year, so with a midpoint of 14%. This outlook includes a favorable FX tailwind of approximately 300 basis points. We expect our adjusted EBITDA margin to be in the range of 17%-19%.
Before we open for questions, I want to thank all CI&Ters around the world. Your commitment to innovation, continuous learning, and delivering exceptional value to our clients makes these results possible. With that, we are ready to begin the Q&A session. Thank you.
The future of business is tech. The future of tech is business. We solve it. Tech integrated business solutions. CI&T.
Okay. 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 Abbey from J.P. Morgan. Abbey, please go ahead.
Hi. Nice to see you guys. This is Abbey on for Fe. Thanks for taking my question. I was wondering if you could walk us through the guide and some of your assumptions. One Q looks pretty strong, but on a constant currency organic basis, it seems like it's gonna decel from this year. Can you just walk us through that?
Sure. Thanks, Abbey. Great to see you. Well, I think after five consecutive double-digit growth, we were able to really forecast it. We end the year with a very strong exit rate, so we are now able to forecast a very strong Q1 and then project continue almost in the same pace. Our guidance assumes that we will have an average FX rate of 5.3 in terms of Brazilian reais to the U.S. dollars on average along the year. If we look at the lower end of our guidance, basically it reflects macro uncertainty.
In the high end, where we want to be, reflects our current strong commercial pipeline, 30% higher now than the same period last year, and keeping the very good level of conversion, certainly driven by AI demand and the differentiation we achieve for our main offerings. We are seeing Brazil and U.S. basically expanding in a good pace. I think this last Q4, we could see our main regions all expanding and also our five main verticals expanding sequentially. I think it's a good start. Of course, a lot of things to do, but I think we were able to guide what I believe is the fastest growing continue to be the CI&T continue to be the fastest growing company among our peer group.
Yeah. Oh, that's great. Just as a follow-up, are you guys seeing any impacts from geopolitical uncertainty so far in 1Q?
So far, no. Even Europe is a very good, strong, solid start for the year in Brazil and U.S. We are also expanding.
Thanks. Great job, guys.
Thank you.
Thank you, Abbey. Our next question comes from Gustavo Farias from UBS. Hi, Gustavo. I think we have Leo now, right? The next question comes from Leonardo Cintra from Itaú. Leo, please go ahead.
Hi, everyone. Thank you for taking my questions. Just want to check about your expectation regarding the performance from the top one client and your top ten client throughout 2026. If you could give us a little bit more a breakdown about the Flow adoption between the different sectors. Thank you.
Sure. Thank you, Leonardo. I will start with the segments. Q4 was a very good year for our five main verticals. We expand 14% in life sciences as the largest expansion, but even financial services that will have been an amazing year, and we sequentially expand more than 3%. We continue to see demand around all these our five main verticals. Regarding the top clients, I think also Q4 was basically on average we expand 21% year-over-year in our top ten clients. Excluding top one, we expand 17% year-over-year. If you look ex top ten, is 18% year-over-year.
On average, all the cohorts are expanding, and we continue to see our strategy working around our top clients and also the new clients we land last year. Sequentially, we could grow among eight of our top 10 clients from Q3 to Q4, so very solid. We see our top one continuing to expand, but for sure less accelerated as last year.
I can take the other one was about the Flow adoption rate. Leo, we don't see a lot of difference across verticals in AI adoption. It's pretty much, you know, our team's adoption at this point continues very high, close to 100%. Just really a few laggard clients that don't want AI to be used in their environments, which again, is very minimum. It's at this point, it's a full-blown utilization. And as I mentioned in my slides, it's, we're way over, you know, the assistant phase and really moving into restructuring, you know, processes and workflows to actually deliver a way bigger impact at this point already.
Very clear. Thank you, guys.
Thank you, Leonardo. Our next question comes from Bryan Bergin from TD Cowen. Hi, Brian.
Hey, guys. Good to see you. On the AI and agentic activity and the workloads you're working on there, I'm curious if you can give us a sense of the mix of kinda new work that is the modernized version of what you've always done as far as high value, custom build solutions, but now being, you know, leveraging GenAI and flow platform versus newer areas for you like agentic-led managed services, where you may be displacing some of the kind of the larger legacy vendors. I'm just trying to ask this because trying to understand the different avenues of demand and how clients are thinking about this right now.
Sure. Thanks, Bryan, for the question. In general terms, we kind of categorize the demand in two groups. The first one is, as you mentioned, we continue to see a big wave of foundational spending. So it means large scale projects regarding upgrade legacy technology, application or data foundation and really accelerating the cloud migration. This is foundational moves if you want to explore the full potential of the AI-driven world. The second, what I believe is a big trend now is direct AI investment. We see a relevant budget allocation for AI-specific solutions, and then we are talking about hyper-efficiency around the software development lifecycle.
We see a lot of demand regarding customer experience journeys now reinvented with AI in Brazil is around WhatsApp, but globally, it evolves to e-commerce, conversational commerce and so on. We also see broad programs regarding AI first transformation. That means look at the end-to-end business model and structure of our clients and find out the best way to really build a strong AI strategy around specific value streams or business units. Finally, we also see a growing number of what we call use cases around GenAI, meaning optimize everything that is labor intensive or data-intensive business process now can be redesigned and reshaped with the new AI capabilities. Basically two groups, foundational demand, and then what we call AI direct investment.
Okay. If I could ask a follow-up on margin. Can you comment on maybe the drivers of adjusted EBITDA margin going forward? You know, you've had ramped workforce investments and flow investments in 2025. It looks like that will persist based on the guide for 2026. I'm curious how you kinda envision this ultimately playing out, where like a crossover point may be for the potential to start, you know, recovering margin, particularly gross margin, as you benefit from all these investments in the productivity tools.
Bryan, thanks for the question. With regard to gross margin, you're right. 2025, we saw a dip in gross margin. We saw bold investments towards people, meaning investing in the preparation ahead of the strong pipeline we experienced throughout the whole year. We also had in that zone investments in AI itself, I mean towards the platform Flow. We also had some headwinds in terms of FX effect, especially towards the end of the year. We had like 8% devaluation of the real in the Q4 itself.
If you combine that with investments in sales and efficiency and operating leverage that we saw in 2025, we get to this 18.3% EBITDA. If you go to 2026, the guidance we provide pretty much talks to that, the midpoint talks to that, 2025 number. What that means is, we are continuing in that, I would say, winning AI strategy, meaning that we are investing in our AI platform. We are preparing teams ahead of the opportunities that we see in the pipeline. We have a strong pipeline, usually 30% bigger than the same period previous year.
This is allowing us, Bryan, to expand the wallet share, which is very good, and also acquire new clients. We are repeating, of course, we are leading in the sector, and that's the winning strategy. We will continue to see, and that's why we're guiding that range of EBITDA. We want to continue to do that formula, let's say.
Okay. Understood. Thank you.
Thank you. Thank you for the question.
Thank you, Bryan. Next question comes from Luke Morrison from Canaccord. Hey, Luke, go ahead.
Hey, guys. Good to see you. Excellent results. Thanks for taking the question. Maybe I'll just to start dovetailing somewhat off of Bryan's question, just thinking about like the productivity improvements you're seeing with flow. As you think over the long term, like over a multi-year period, like how do you think about the relationship between headcount growth and revenue growth over time? Are you expecting revenue per employee to rise as you sort of roll out these new pricing models and you see more productivity from your existing headcount? Or are you thinking more, you know, this growth phase still requires adding people at roughly the same rate as you're growing?
Thanks, Luke. I can start here. Bruno, you can add if you want. Well, for sure, we see the rise of AI and the agent solution as it will provoke an inevitable space for an evolution in the commercial and pricing models in our industry. In terms of your ask, the mid-term, yeah, we see the future of our industry evolving from basically the time and materials model to value-based pricing models, more closely tying the business to business outcome. This is for sure an opportunity to gradually monetize the intellectual property embedded now in everything we do, and also to experiment with different business models for the agent architecture that for sure will dominate the future of IT investment.
Proactively, we are introducing all these different approaches with our clients, and we have, I would say, encouraging early results. As I mentioned, we see as a midterm opportunity. It will translate our superior performance into margin and scalability. Of course, giving our clients more options to better connect outcomes to the investment they are doing. I think it will be gradual but inevitable change in our industry.
Yeah. Makes sense. Very helpful. Then maybe just to double-click on sort of the new pricing model evolution. You know, you talked about experimenting with consumption-based subscription models for flow access at your analyst day last October. Maybe just update us on how those conversations are going with clients. You know, are you seeing a willingness to pay for flow as a standalone platform? Or is that still primarily a differentiator that's helping you win business today?
Bruno, wanna answer that?
Primarily it's a differentiator, look. Of course with clients, when they see the type of performance, they want to share in the success. Like I want that for myself, but we're not leading with that, right? We're not trying to push a product, right? They're just seeing what our teams can do and what the performance of those teams are and they go, actually how you're doing this.
We actually get another sort of engagement, which is some more transformational engagement, which is, okay, let us teach you how to achieve that type of performance, which includes a different tool set and a different usage of not only our agents but also the third-party tools available in the market, right? That's more on the backtrack of them seeing a different performance because to all the public reports that you can read all everywhere, like it's a lot of frustration there on the utilization and kind of transforming AI into actually real value, right? When you say you can do 5x, you.
It's very unusual faced with a lot of skepticism, right? Our approach is more show than tell. Like this is what actually we're doing and this is we're achieving and then we kind of can break that you know that big wall of skepticism and can have those conversations. That's been the approach.
Okay. Our next question comes from Cesar Medina from Morgan Stanley. Hi, Medina.
Hey, thanks for taking my question. I guess you both, Bruno and Cesar, sort of just answer one of them, but let me ask in a different way. When you're thinking of the changes in trends, Cesar mentioned, for instance, that you know, your main customer will continue to grow robust but should be a slowdown relative to 2025. Can you maybe walk us through the changes in trend that you're seeing between projects that are sort of more discretionary spending versus other projects that are sort of take out cost and things like that? That's first part of the question. The second question, exactly the same thing as changes in trend, but instead of by client, by region. What are you seeing sort of U.S., Brazil, and then new markets?
Sure. Thank you, Medina, for your questions. We see both trends, foundational investments now with a very better return on investment equation regarding legacy and data modernization we continue to capture. These are very large scale endeavors to modernize decades of technical debt in our clients. We are seeing also this trend of direct AI investments with different shapes and colors. On average, we see our engagements basically accommodating multi-year contract with more spot demand. We don't see, I would say, meaningful difference in terms of the duration of our engagements or the ticket size in both kinds of demand.
Regarding markets, U.S. and Brazil, we are very confident and very well established in terms of land and expand, so acquiring new customers in these markets and continue to expand to increase our wallet share among our global clients. We see our new markets as a more exploratory, Europe, Asia that now represent 10%. We have an amazing Q4 for these regions, but it's even harder to predict. We see a solid forecast for our main markets in North America and Latin America.
When you see your pipeline, last year you had very ramp up of very large projects for international, like non-Brazilian, customers. When you think of this pipeline, do you have similar opportunities this year, 2026 on that front as in?
Yes.
Okay.
Part of when we say expand is a very important game because these large companies, we need to move from one geography to another, from one business unit to another. It's a long-term strategy to continue to increase our wallet share year-over-year, quarter-over-quarter as we establish our reputation. What plays in favor of our approaches with Flow and our discipline of metrics. When we can clearly demonstrate the kind of results we are achieving, and this is the natural response from our clients, giving us more opportunities to expand along the way. I think this is basically the expand strategy.
As you know, we have very, very large companies operating in and around the world. It's a fertile soil for long-term expansion.
Crystal clear. Thank you.
Thank you, Cesar Medina.
Thank you, Medina. Our next question comes from Gustavo Farias from UBS. Hi, Gustavo. Please go ahead. Can't hear you, Gustavo.
Can you hear me?
Yes. Now we can.
My question is regarding the alternative billing model. When you go from time and materials toward fixed or even outcome-based, there's probably a higher risk-reward profile. If you could comment on which of those alternative models are gaining more traction, and what are you experiencing in terms of the effective margin upside gains in each of them, that would be very helpful. Thank you.
Sure, Gustavo. Thank you. We are experimenting really seven different models now and basically it's a blend, it's a hybrid moment where we combine time and material with price per unit that is basically throughput with price per consumption using our agent computing unit for the SaaS agent solutions and outcome-based. I think it's too early, but of course, all these models they have potentially a better margin if you know how to execute. Again, we are very confident in our ability to execute these engagements that allow us to be very confident in the predictability of these new models. Also, it's part of the evolution of services become an IP-based game.
Flow is not only our management system for AI, but it's also the stack where we are building our vertical solutions, all the IP that will tackle specific vertical opportunities by industry. It's part of this evolution of GenAI. For sure, all these models potentially can increase our not only our margins but our scalability in terms of headcounts. It will be, as I mentioned, an incremental midterm gain, not something that's gonna happen from Friday to Monday. We are very, very confident in our ability to execute.
Great. Thanks. Just to follow up, if I may. Just to confirm, there's nothing from this potential upside, like you said, embedded in this year's guidance, right? For margins.
Yeah. For 2026, we are guiding the natural evolution of our pricing models. Considering that, we believe that our clients will be, let's say, conservative in terms of. They are willing to test different models, but it will take a few years to really see this as a relevant part of our P&L. But it is, as I mentioned, inevitable, not only for CI&T but for the whole industry. It's just a transition that it will take a while, especially because of the cohort of our clients, these large companies. They tend to move, but in a very consistent and careful way.
All right. Thank you very much, guys.
Thank you, Gustavo.
Thank you, Gustavo. That concludes our Q&A session. Thank you all for attending our event today. I'll now invite Cesar to proceed with his closing remarks. Cesar.
Sure. Thank you, Galvão. Thanks, Bruno, Stanley, for joining me. Thank you all for joining us today. Of course, a special thank you to all CI&Ters around the world. Congratulations on another record quarter. Let's keep pushing. A special thank you also to our clients for choosing CI&T as a partner for this exciting new AI-driven innovation era. Stay well. See you soon.