Trintech Builds on Record-Breaking FY25 with Accelerated Global Growth and AI Innovation in Q1 FY26
DALLAS , May 29, 2025 /CNW/ -- Trintech, the global leader in AI Financial Close solutions for the Office of Finance, announced today continued global growth and expansion in Q1 FY26 following a record-breaking FY25 (ended January 31, 2025 ). Driven by market-driven innovation and an unyielding commitment to customer and partner success, Trintech's solutions continue to deliver transformative results related to AI Financial Close —streamlining, automating, and accelerating the reconciliation and financial close process for organizations of all sizes.
"Our strong Q1 results highlight Trintech's commitment to innovation, customer success, and global growth," said Darren Heffernan , CEO of Trintech. "With new customer wins, expanded deployments, AI-driven advancements, and new offices in India , we're proud of the momentum we've built. Our growing partnership with Workday is unlocking new value for joint customers, and we're excited by the market's response. Trintech also continues to lead in the banking and financial services industry, where our ability to automate complex processes—such as high-volume daily matching—helps some of the world's most demanding organizations modernize and scale with confidence."
Trintech's focus on cultivating a game-changing partner ecosystem continues to deliver. With an amplified focus on our partnership with Workday --the world's fastest growing ERP provider, driven by AI—Trintech continues to help new and existing joint customers unlock ROI with best-in-class reconciliation and financial close processes.
"One of our main goals in looking for a solution was simply to get our reconciliation activities into a database or solution (rather than Excel), but we also use a three-way match system, so there's a lot of intricate data points and factors to consider, as well. We saw demos of a few other solutions, but Trintech's matching capabilities are unmatched. No other solution on the market compares to how we can match with Trintech." – CNG Holdings
"We regularly have 200,000+ transactions every month, but during our busy season we'll ramp up to over a million credit card transactions a month. Leveraging automation has been a huge help in managing this volume, for both transaction matching and balance sheet reconciliations." – H&R Block
"Workday has served us well as our ERP. Their partnership with Trintech is a huge plus for data management and we're excited to further integrate the systems to further optimize our financial processes." - Enova
Reinforcing its commitment to innovation, Trintech introduced significant enhancements in Q1 across its Adra (mid-enterprise), Cadency and Frontier (large enterprise) solutions. Within the Adra Suite, Trintech unveiled AI-driven Journal Entry Automation, a breakthrough designed to help mid-enterprise organizations centralize and streamline journal entry creation, approval, and ERP posting to accelerate their financial close. Simultaneously, Trintech expanded its Cadency solution with new Intercompany Automation capabilities that simplify and standardize complex intercompany processes across global entities. The enhancements automate transaction matching, reconciliation, cost allocations, and settlements—cutting down manual work, improving compliance, and speeding up the financial close. Additionally, the introduction of DirectCloud for both Cadency and Frontier offers large-enterprise customers with more stringent security features. While providing all the efficiency and ROI gains of a cloud environment, DirectCloud customers gain the security of single-tenancy and a direct, non-internet-based link to their environment – ensuring the highest security without sacrificing efficiency.
As part of its global expansion, Trintech launched new operations in Bengaluru and Noida, India —strategic hubs designed to accelerate growth, drive innovation, and strengthen its presence in the rapidly evolving Asia-Pacific financial close market. These investments, along with the appointment of Claudia Pirko to lead efforts in the APAC region, underscore Trintech's commitment to meeting growing international demand and enhancing service delivery worldwide.
Lastly, Trintech's continued focus on innovation, successful customer deployments, and a strong commitment to excellence have earned the company multiple industry accolades in FY25. Its AI Financial Close solutions were ranked #1 on several G2 grids for financial close software and recognized as a Market Leader in Featured Customers' 2025 Financial Close Management Software Customer Success Report. Additionally, in 2025, Trintech was recognized as one of the Best and Brightest Companies to Work For® in the Nation, and for the tenth consecutive year in the Dallas/Fort Worth region —demonstrating its ongoing commitment to a thriving workplace culture and meaningful employee engagement.
About Trintech
Trintech gives people time back for what matters most. Our AI Financial Close solutions enable thousands of clients worldwide to lead productivity transformation across their finance and accounting organizations — driving efficiencies, ensuring accuracy to mitigate risk, and empowering strategic decision-making. Make time count with Trintech.
As the leader in AI Financial Close Management, Trintech is headquartered in Plano, Texas with offices and strategic resellers across United States , Europe , Australia , South America , Africa , and Asia Pacific . With a strong partner ecosystem, Trintech collaborates with over 100 companies to create a network of interconnected businesses. To learn more about Trintech, visit www.trintech.com.
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26 minutes ago
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Article content Docebo is revising financial guidance for the fiscal year ended December 31, 2025 as follows: Article content Subscription revenue growth of 10.75% to 11.75% Total revenue growth between 10.0% to 11.0% Adjusted EBITDA as a percentage of total revenue of between 17.0% to 18.0% Article content The information in this section is forward-looking. Please see the sections entitled 'Non-IFRS Measures and Reconciliation of Non-IFRS Measures' and 'Key Performance Indicators' in this press release for how we define 'Adjusted EBITDA' and the section entitled 'Forward-Looking Information.' A reconciliation of forward-looking 'Adjusted EBITDA' to the most directly comparable IFRS measure is not available without unreasonable effort, as certain items cannot be reasonably predicted because of their high variability, complexity and low visibility. Docebo believes that this type of guidance provides useful insight into the anticipated performance of its business. Article content Three months ended June 30, Six months ended June 30, 2025 2024 Change Change 2025 2024 Change Change $ $ $ % $ $ $ % Adjusted EBITDA (in thousands of US dollars) 9,225 7,954 1,271 16.0 % 18,146 15,421 2,725 17.7 % Adjusted Net Income (in thousands of US dollars) 8,914 7,929 985 12.4 % 17,409 15,203 2,206 14.5 % Adjusted Earnings per Share – Basic 0.30 0.26 0.04 15.4 % 0.58 0.50 0.08 16.0 % Adjusted Earnings per Share – Diluted 0.29 0.26 0.03 11.5 % 0.57 0.49 0.08 16.3 % Working Capital (in thousands of US dollars) (5,105 ) 8,518 (13,623 ) (159.9 )% (5,105 ) 8,518 (13,623 ) (159.9 )% Free Cash Flow (in thousands of US dollars) 11,379 8,446 2,933 34.7 % 20,373 17,644 2,729 15.5 % Article content Conference Call Article content Management will host a conference call on Friday, August 8, 2025 at 8:00 am ET to discuss these second quarter results. To access the conference call, please dial +1-646-960-0169 or +1-888-440-6849 or access the webcast at The Company will post Prepared Management Remarks (in .pdf format) regarding its Q2 2025 results, which will be the subject of this call, on the Investor Relations section of Docebo's website at Article content The unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025 and Management's Discussion & Analysis for the same period have been filed on SEDAR+ at and on EDGAR at Alternatively, these documents along with a presentation in connection with the conference call can be accessed online at An archived recording of the conference call will be available until August 15, 2025 and for 90 days on our website. To listen to the recording, please visit the webcast link which can be found on Docebo's investor relations website at or call +1-609-800-9909 or +1-800-770-2030 and enter passcode 8722408#. Article content Forward-Looking Information Article content This press release contains 'forward-looking information' and 'forward-looking statements' (collectively, 'forward-looking information') within the meaning of applicable securities laws. Article content In some cases, forward-looking information can be identified by the use of forward-looking terminology such as 'plans', 'targets', 'expects', 'is expected', 'an opportunity exists', 'budget', 'scheduled', 'estimates', 'outlook', 'forecasts', 'projection', 'prospects', 'strategy', 'intends', 'anticipates', 'believes', or variations of such words and phrases or statements that certain actions, events or results 'may', 'could', 'would', 'might' or, 'will', 'occur' or 'be achieved', and similar words or the negative of these terms and similar terminology. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. Article content This forward-looking information in this press release includes, but is not limited to, statements regarding the Company's business; the guidance for the three months ended September 30, 2025 in respect of total revenue, Adjusted EBITDA as a percentage of total revenue and subscription revenue and fiscal year ended December 31, 2025 in respect of total revenue growth, and Adjusted EBITDA as a percentage of total revenue discussed under 'Financial Outlook' in this press release; the impact of AI on our business; future financial position and business strategy; the learning management industry; our growth rates and growth strategies; addressable markets for our solutions; the achievement of advances in and expansion of our platform; expectations regarding our revenue and the revenue generation potential of our platform and other products; our business plans and strategies; expectations regarding continued AWS' use of Docebo products and services after December 31, 2025; and our competitive position in our industry. This forward-looking information is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Certain assumptions include: our ability to build our market share and enter new markets and industry verticals; our ability to attract and retain key personnel; our ability to maintain and expand geographic scope; our ability to execute on our expansion plans; our ability to continue investing in infrastructure to support our growth; our ability to obtain and maintain existing financing on acceptable terms; our ability to execute on profitability initiatives; AWS' ability to transition from our platform; currency exchange and interest rates; the impact of inflation and global macroeconomic conditions; the impact of competition; our ability to respond to the changes and trends in our industry or the global economy; and the changes in laws, rules, regulations, and global standards are material factors made in preparing forward-looking information and management's expectations. Article content Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that, while considered by the Company to be appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to: Article content the Company's ability to execute its growth strategies; the impact of changing conditions in the global corporate e-learning market; increasing competition in the global corporate e-learning market in which the Company operates; fluctuations in currency exchange rates and volatility in financial markets; changes in the attitudes, financial condition and demand of our target market; the Company's ability to operate its business and effectively manage its growth under evolving macroeconomic conditions, such as high inflation and recessionary environments; developments and changes in applicable laws and regulations; fluctuations in the length and complexity of the sales cycle for our platform, especially for sales to larger enterprises; issues in the use of AI in our platform and potential resulting reputational harm or liability; and such other factors discussed in greater detail under the 'Risk Factors' section of our Annual Information Form dated February 27, 2025 ('AIF'), which is available under our profile on SEDAR+ at Our guidance for the three months ended September 30, 2025 in respect of total revenue, Adjusted EBITDA as a percentage of total revenue and subscription revenue and for the fiscal year ended December 31, 2025 in respect of total revenue, and Adjusted EBITDA as a percentage of total revenue, is in each case subject to certain assumptions and associated risks as stated above under this 'Forward-Looking Information,' section and in particular the following: Article content currency assumptions, in particular that the US dollar will remain strong against other major currencies; there will be continued macro-economic headwinds that will specifically affect our small and medium sized business and lower mid-market customers; there will be a seven-figure negative impact on our Annual Recurring Revenue base resulting from a large enterprise customer terminating its agreement with us following its acquisition of an organization that has an in-house LMS; our ability to win business from new customers and expand business from existing customers; the timing of new customer wins and expansion decisions by our existing customers; maintaining our customer retention levels, and specifically, that customers will renew contractual commitments on a periodic basis as those commitments come up for renewal, at rates not materially inconsistent with our historical experience; and with respect to Adjusted EBITDA as a percentage of revenue, our ability to contain expense levels while expanding our business. Article content If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. The opinions, estimates or assumptions referred to above and described in greater detail in the 'Summary of Factors Affecting our Performance' section of our MD&A for the three and six months ended June 30, 2025 and in the 'Risk Factors' section of our AIF, should be considered carefully by prospective investors. Article content Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to us or that we presently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents our expectations as of the date specified herein, and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws. Article content All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements. Article content Additional information relating to Docebo, including our AIF, can be found on SEDAR+ at Article content Docebo is redefining the way enterprises leverage technology to create and manage content, deliver training, and measure the business impact of their learning programs. With Docebo's end-to-end learning platform, organizations worldwide are equipped to deliver scaled, personalized learning across all their audiences and use cases, driving growth and powering their business. Article content Three months ended June 30, Six months ended June 30, (In thousands of US dollars, except per share data) 2025 2024 2025 2024 $ $ $ $ Revenue 60,732 53,054 118,028 104,457 Cost of revenue 11,584 10,257 22,979 20,183 Gross profit 49,148 42,797 95,049 84,274 Operating expenses General and administrative 8,394 8,176 17,119 16,331 Sales and marketing 20,393 16,895 40,748 33,328 Research and development 12,699 10,766 26,102 21,178 Share-based compensation 1,733 1,923 2,522 3,855 Foreign exchange loss (gain) 942 (310 ) 1,065 (810 ) Depreciation and amortization 847 824 1,645 1,642 45,008 38,274 89,201 75,524 Operating income 4,140 4,523 5,848 8,750 Finance income, net (542 ) (671 ) (1,190 ) (1,216 ) Other (income) loss (1 ) (14 ) (2 ) (15 ) Income before income taxes 4,683 5,208 7,040 9,981 Income tax expense 1,607 510 2,490 114 Net income 3,076 4,698 4,550 9,867 Other comprehensive (income) loss Item that may be reclassified subsequently to income: Exchange (gain) loss on translation of foreign operations (1,171 ) 447 (1,163 ) 1,344 Comprehensive income 4,247 4,251 5,713 8,523 Earnings per share – basic 0.10 0.15 0.15 0.33 Earnings per share – diluted 0.10 0.15 0.15 0.32 Weighted average number of common shares outstanding – basic 29,559,316 30,350,110 29,909,311 30,334,858 Weighted average number of common shares outstanding – diluted 30,227,581 31,059,307 30,559,452 31,051,667 Article content Key Statement of Financial Position Information Article content Non-IFRS Measures and Reconciliation of Non-IFRS Measures Article content This press release makes reference to certain non-IFRS measures including key performance indicators used by management and typically used by our competitors in the software-as-a-service ('SaaS') industry. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore not necessarily comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. These non-IFRS measures are used to provide investors with alternative measures of our operating performance and liquidity and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures, including SaaS industry metrics, in the evaluation of companies in the SaaS industry. Management also uses non-IFRS measures to facilitate operating performance comparisons from period to period, the preparation of annual operating budgets and forecasts and to determine components of executive compensation. The non-IFRS measures referred to in this press release include 'Annual Recurring Revenue', 'Average Contract Value', 'Adjusted EBITDA', 'Adjusted Net Income', 'Adjusted Earnings per Share – Basic and Diluted', 'Working Capital' and 'Free Cash Flow'. Article content Key Performance Indicators Article content We recognize subscription revenues ratably over the term of the subscription period under the provisions of our agreements with customers. The terms of our agreements, combined with high customer retention rates, provides us with a significant degree of visibility into our near-term revenues. Management uses a number of metrics, including the ones identified below, to measure the Company's performance and customer trends, which are used to prepare financial plans and shape future strategy. Our key performance indicators may be calculated in a manner different than similar key performance indicators used by other companies. Article content Annual Recurring Revenue: We define Annual Recurring Revenue as the annualized equivalent value of the subscription revenue of all existing contracts (including Original Equipment Manufacturer contracts) as at the date being measured, excluding non-recurring revenues from implementation, support and maintenance fees. Our customers generally enter into annual or multi-year contracts which are non-cancellable or cancellable with penalty. Accordingly, our calculation of Annual Recurring Revenue assumes that customers will renew the contractual commitments on a periodic basis as those commitments come up for renewal. Subscription agreements may be subject to price increases upon renewal reflecting both inflationary increases and the additional value provided by our solutions. In addition to the expected increase in subscription revenue from price increases over time, existing customers may subscribe for additional features, learners or services during the term. We believe that this measure provides a fair real-time measure of performance in a subscription-based environment. Annual Recurring Revenue provides us with visibility for consistent and predictable growth to our cash flows. Our strong total revenue growth coupled with increasing Annual Recurring Revenue indicates the continued strength in the expansion of our business and will continue to be our focus on a go-forward basis. Average Contract Value: Average Contract Value is calculated as total Annual Recurring Revenue divided by the number of active customers. Article content Annual Recurring Revenue and Average Contract Value as at June 30, 2025 and 2024 were as follows: Article content Adjusted EBITDA Article content Adjusted EBITDA is defined as net income excluding net finance income, depreciation and amortization, income taxes, share-based compensation and related payroll taxes, other income, foreign exchange gains and losses, acquisition related compensation, transaction related expenses and restructuring costs, if any. Article content The IFRS measure most directly comparable to Adjusted EBITDA presented in our financial statements is net income. Article content Three months ended June 30, Six months ended June 30, (In thousands of US dollars) 2025 2024 2025 2024 $ $ $ $ Net income 3,076 4,698 4,550 9,867 Finance income, net (1) (542 ) (671 ) (1,190 ) (1,216 ) Depreciation and amortization (2) 847 824 1,645 1,642 Income tax expense 1,607 510 2,490 114 Share-based compensation (3) 1,733 1,923 2,522 3,855 Other income (4) (1 ) (14 ) (2 ) (15 ) Foreign exchange loss (gain) (5) 942 (310 ) 1,065 (810 ) Acquisition related compensation (6) 1,002 994 2,059 1,984 Transaction related expenses (7) 93 — 464 — Restructuring (8) 468 — 4,543 — Adjusted EBITDA 9,225 7,954 18,146 15,421 Adjusted EBITDA as a percentage of total revenue 15.2 % 15.0 % 15.4 % 14.8 % Article content (1) Finance income, net, is primarily related to interest income earned on cash and cash equivalents as the funds are invested in highly liquid short-term interest-bearing marketable securities which is offset by interest expenses incurred on lease obligations, and contingent consideration as well as bank fees and other expenses. (2) Depreciation and amortization expense is primarily related to depreciation expense on right-of-use assets ('ROU assets'), property and equipment and acquired intangible assets. (3) These expenses represent non-cash expenditures recognized in connection with the issuance of share-based compensation to our employees and directors and cash payroll taxes paid on gains earned by option holders when stock options are exercised. (4) Other income, net is primarily comprised of rental income from subleasing office space. (5) These non-cash gains and losses relate to foreign exchange translation. (6) These costs represent the earn-out portion of the consideration paid to the vendors of previously acquired businesses that is associated with the achievement of certain acquisition related performance and other obligations. (7) These expenses relate to professional, legal, consulting, accounting and other fees related to acquisition activities that would otherwise have not been incurred and are not considered an expense indicative of continuing operations. (8) There was a reduction in workforce during the first half of 2025 that resulted in severance payments to employees. Article content Adjusted Net Income and Adjusted Earnings per Share – Basic and Diluted Article content Adjusted Net Income is defined as net income excluding amortization of intangible assets, share-based compensation and related payroll taxes, acquisition related compensation, transaction related expenses, restructuring costs, foreign exchange gains and losses, and income taxes. Article content Adjusted Earnings per share – basic and diluted is defined as Adjusted Net Income divided by the weighted average number of common shares (basic and diluted). Article content Three months ended June 30, Six months ended June 30, (In thousands of US dollars) 2025 2024 2025 2024 $ $ $ $ Net income for the period 3,076 4,698 4,550 9,867 Amortization of intangible assets 178 172 349 345 Share-based compensation 1,733 1,923 2,522 3,855 Acquisition related compensation 1,002 994 2,059 1,984 Transaction related expenses 93 — 464 — Restructuring 468 — 4,543 — Foreign exchange loss (gain) 942 (310 ) 1,065 (810 ) Deferred income tax expense (recovery) 1,422 452 1,857 (38 ) Adjusted net income 8,914 7,929 17,409 15,203 Weighted average number of common shares – basic 29,559,316 30,350,110 29,909,311 30,334,858 Weighted average number of common shares – diluted 30,227,581 31,059,307 30,559,452 31,051,667 Adjusted earnings per share – basic 0.30 0.26 0.58 0.50 Adjusted earnings per share – diluted 0.29 0.26 0.57 0.49 Article content Working Capital Article content Working Capital as at June 30, 2025 and 2024 was $(5.1) million and $8.5 million, respectively. Working Capital is defined as current assets, excluding the current portion of the net investment in finance lease and contract costs, minus current liabilities, excluding borrowings, if any, and the current portion of contingent consideration and lease obligations. The decrease in working capital from June 30, 2024 to June 30, 2025 is driven by the use of cash and cash equivalents to purchase shares under the NCIB, as well as the recognition of the ASPP liability. Working Capital is not a recognized measure under IFRS. Article content The following table represents the Company's working capital position as at June 30, 2025 and 2024: Article content Free Cash Flow Article content Free Cash Flow is defined as cash flows from operating activities less cash used for purchases of property and equipment and capitalized internal-use software costs, plus non-recurring expenditures such as the payment of acquisition-related compensation, the payment of transaction-related costs, and the payment of restructuring costs. Free Cash Flow is not a recognized measure under IFRS. The IFRS measure most directly comparable to Free Cash Flow presented in our financial statements is cash flow from operating activities. Article content Article content Article content Article content Article content Contacts Article content For further information, please contact: Article content Article content Mike McCarthy Article content Article content Article content Article content
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They are index funds patient investors can buy and hold forever, and a single share of each currently costs less than $1,000. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Here are the important details. 1. Vanguard S&P 500 ETF The Vanguard S&P 500 ETF tracks the performance of the S&P 500 (SNPINDEX: ^GSPC), an index that includes 500 large U.S. companies that account for more than 80% of domestic equities and nearly 50% of global equities by market value. The Vanguard S&P 500 ETF lets investors spread money across many of the most influential businesses in the world. The 10 largest holdings in the index fund are listed by weight below: Nvidia: 7.3% Microsoft: 7% Apple: 5.8% Amazon: 3.9% Alphabet: 3.5% Meta Platforms: 3% Broadcom: 2.4% Berkshire Hathaway: 1.6% Tesla: 1.6% JPMorgan Chase: 1.5% The S&P 500 achieved a total return of 663% in the last two decades, which is equivalent to an annual return of 10.7%. That period encompasses such a broad range of economic and market environments -- two recessions, three bear markets, and eight corrections -- that investors can be reasonably confident in similar returns over the next few decades. Importantly, history says patient investors are virtually guaranteed to turn a profit provided their holding period is long enough. The S&P 500 has never declined over any 15-year period since 1990. Moreover, the index has outperformed virtually every other asset class over the last 20 years, including international equities, fixed income, precious metals, and real estate, according to Morgan Stanley. Finally, the Vanguard S&P 500 ETF has an expense ratio of 0.03%, meaning shareholders will pay $3 annually on every $10,000 invested in the fund. Comparatively, the average expense ratio on U.S. mutual funds and ETFs was 0.34% in 2024. 2. Vanguard Total International Stock ETF The Vanguard Total International Stock ETF measures the performance of large companies from developed and emerging markets, excluding the United States. Included in the fund are more than 8,500 stocks that cover 98% of non-U.S. markets. It is most heavily weighted toward companies in Australia, Canada, France, Japan, and the United Kingdom. The 10 largest holdings in the index fund are listed by weight below: Taiwan Semiconductor: 2.4% Tencent: 1.1% ASML: 0.8% SAP: 0.8% Alibaba: 0.7% Nestle: 0.6% Roche: 0.6% Novartis: 0.6% Novo Nordisk: 0.6% HSBC: 0.5% The Vanguard Total International Stock ETF has returned 118% since its inception in 2011, which is equivalent to 5.5% annually. That is considerably less than the S&P 500 index fund discussed in the previous section, and this particular ETF is also a little more expensive. It has an expense ratio of 0.05%, meaning shareholders will pay $5 per year on every $10,000 invested in the fund. As a final thought, because the Vanguard S&P 500 ETF has regularly yielded better returns, investors should keep a greater percentage of their portfolios in that fund as compared to the Vanguard Total International Stock ETF. Personally, I would allocate 5% of my invested assets to the Vanguard Total International Stock ETF, 25% to the Vanguard S&P 500 ETF, and 70% to individual stocks. Should you invest $1,000 in Vanguard S&P 500 ETF right now? Before you buy stock in Vanguard S&P 500 ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard S&P 500 ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $635,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,099,758!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. HSBC Holdings is an advertising partner of Motley Fool Money. Trevor Jennewine has positions in Amazon, Nvidia, Tesla, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends ASML, Alphabet, Amazon, Apple, Berkshire Hathaway, JPMorgan Chase, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, Tencent, Tesla, Vanguard S&P 500 ETF, and Vanguard Total International Stock ETF. The Motley Fool recommends Alibaba Group, Broadcom, HSBC Holdings, Nestlé, Novo Nordisk, and Roche Holding AG and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Globe and Mail
4 hours ago
- Globe and Mail
Enterprise AI on Demand: How GPT-5 Aims to Fund the Data-Center Boom
OpenAI on Thursday unveiled GPT-5, its most advanced AI language model to date, making it available to all 700 million ChatGPT users. The launch comes at a pivotal moment as enterprises and investors demand tangible returns on the staggering capital poured into AI infrastructure. With generative AI now central to corporate strategy, GPT-5's real-world performance will determine whether OpenAI can sustain its rapid growth and justify its escalating valuation. GPT-5 boasts enhanced enterprise capabilities—auto-coding software on demand, expert-level writing, health analytics and financial modeling—aimed at winning over business users. The rollout coincides with nearly $400 billion in planned AI data-center spending by Alphabet, Meta, Amazon and Microsoft this year. Despite robust consumer engagement, economists like Noah Smith warn that consumer chat revenue alone cannot underwrite these investments. CEO Sam Altman highlighted GPT-5's 'test-time compute' router architecture as a breakthrough for tackling complex tasks, but the true measure will be enterprise adoption and revenue. Market Overview: Major tech firms back OpenAI as competition for AI infrastructure intensifies Enterprise feature set critical to shifting spend from consumer to corporate budgets Investor focus turns to monetization of on-demand software and test-time compute Key Points: GPT-5 available to 700 million ChatGPT users, emphasizing enterprise use cases Top AI backers—GOOGL, META, AMZN, MSFT—plan ~$400 billion in data-center capex OpenAI explores $500 billion valuation for employee liquidity, up from $300 billion Looking Ahead: Enterprise pilot programs will signal ROI potential and influence adoption curves Scaling challenges—data scarcity and hardware reliability—may temper rollouts Broader infrastructure build-out needed to localize AI services globally Bull Case: GPT-5's enterprise-focused capabilities—auto-coding, expert-level writing, advanced health analytics, and robust financial modeling—are positioned to unlock substantial new revenue streams from business users, moving generative AI from 'nice-to-have' to core infrastructure across industries. With 700 million ChatGPT users and the backing of major tech giants (Google, Meta, Amazon, Microsoft), OpenAI is uniquely positioned to set the pace for AI adoption, using its scale and brand authority to accelerate enterprise pilot programs and secure long-term contracts. The 'test-time compute' router architecture allows GPT-5 to dynamically allocate computing resources to complex queries, potentially improving both cost efficiency and user experience—making AI more effective and scalable for real-world business challenges. If pilot programs demonstrate clear ROI, GPT-5 could validate the massive $400 billion in AI data-center infrastructure spend, catalyzing both incremental enterprise investment and renewed enthusiasm from institutional backers and market participants. OpenAI's rising valuation ($500 billion targeted for employee liquidity) reflects confidence from key investors, and successful monetization of enterprise tools could justify even higher future multiples as B2B adoption accelerates beyond current consumer-led growth. Action Strategy: Enterprises should initiate rapid proof-of-concept pilots with GPT-5, focusing on revenue-impacting workflows (analytics, customer support, code generation) to seize first-mover advantages and drive early learning cycles ahead of broader AI integration curves. Bear Case: Despite technological advancements, there is mounting skepticism that consumer chat revenue can support the scale of investment—enterprises will demand measurable, rapid ROI, and initial pilot feedback may highlight challenges in systematizing and supporting high-stakes business use cases. Scaling hurdles like data scarcity and hardware reliability persist, risking slower-than-hyped enterprise adoption and exposing OpenAI's underlying operational complexity and capital requirements as rollout efforts widen geographically. Incremental upgrades from GPT-4 to GPT-5 may disappoint stakeholders expecting stepwise leaps in performance—diluting the sense of 'must-have' innovation and stalling adoption curves if competitive models catch up or overtake visibility in certain verticals. $400 billion in annual data-center capex across major backers must be matched by sustainable, profitable use cases; if GPT-5 fails to convert pilot interest into sticky enterprise revenue, investors may retrench and slow infrastructure build-outs, triggering a broader pullback in AI valuation multiples. Reliance on a handful of hyperscale cloud backers for both capital and distribution exposes OpenAI to strategic risk, especially if collaborations sour or if regulatory/antitrust scrutiny limits market expansion in key regions. Action Strategy: Sales and product leaders should closely monitor early enterprise pilot outcomes for recurring pain points (integration, privacy, uptime), proactively manage risk by building multi-model and hybrid workflows, and brace for extended sales cycles as the AI 'hype-to-proof' gap is tested. OpenAI's ascent from GPT-3.5 to GPT-4 set expectations for consistent leaps in performance, but scaling hurdles—data constraints and hardware failures—have slowed progress. GPT-5's test-time compute innovation offers a workaround, dynamically allocating compute to complex queries, yet skeptics question whether the upgrade matches prior generational gains. For the AI ecosystem, GPT-5's reception will be a bellwether. Success could validate the mammoth spending on data centers and propel further investment; underwhelming results may stall enterprise contracts and pressure backers. As Altman concedes, amplifying global infrastructure remains paramount to making AI locally accessible and financially sustainable.
