Cognyte Reports Third Quarter Fiscal 2026 Financial Results

Strong Q3 results driven by market momentum and focused execution Company increases outlook for fiscal year ending January 31, 2026 HERZLIYA, Israel--(BUSINESS WIRE)--Cognyte Software Ltd. (NASDAQ: CGNT) (the “Company,” “Cognyte,” “we,” “us” and “our”), a global leader in software-driven technology for investigative analytics, today announced results for the three and nine months ended October 31, 2025 ("Q3 FYE26" and "YTD FYE26"). Financial Summary for Three Months Ended October 31, 2025 Q3 FYE26 Revenue was $100.7 million, up approximately 13.2% compared to the same period last year. Q3 FYE26 GAAP operating income was $3.2 million, compared to an operating loss of $2.2 million in the same period last year. Q3 FYE26 Non-GAAP operating income was $9.0 million, compared to operating income of $3.4 million in the same period last year. Q3 FYE26 GAAP Net loss was $3.4 million, compared to a net loss of $2.6 million in the same period last year. The higher loss this quarter was primarily driven by increased tax expenses and foreign exchange impacts. Q3 FYE26 Adjusted EBITDA was $11.9 million, compared to $6.6 million in the same period last year, growing significantly faster than revenue. Financial Summary for the Nine Months Ended October 31, 2025 YTD FYE26 Revenue was $293.8 million, up approximately 14.7% compared to the same period last year. YTD FYE26 GAAP operating income was significantly improved at $8.1 million, compared to an operating loss of $5.8 million during the same period last year. YTD FYE26 Non-GAAP operating income was $24.6 million, up nearly three times from the $9.7 million generated during the same period last fiscal year. YTD FYE26 GAAP Net loss was $0.5 million, compared to a net loss of $7.0 million during the same period last year. YTD FYE26 Adjusted EBITDA was $33.2 million, compared to $19.9 million during the same period last year, representing an increase of approximately 67%. Balance Sheet and Net Cash Provided by Operating Activities During Q3 FYE26, the company bought approximately 152,000 ordinary shares for an aggregate purchase price of approximately $1.3 million under the share repurchase program approved by the board of directors in July 2025. During the third quarter, we further strengthened our cash position, which increased to $106.6 million, with no debt, reflecting disciplined working-capital management. During the three months ended October 31, 2025, net cash provided by operating activities was $25.0 million, compared to $12.3 million in the same period last year. The significant increase was a result of strong collections and improved profitability. Management Commentary “Our strong performance reflects our leadership in AI-driven investigative analytics,” said Elad Sharon, Cognyte’s chief executive officer. “Our relentless innovation is rooted in the real operational needs of today and tomorrow. As operating environments become more high-stakes, customers turn to us to help them solve complex, multi-dimensional challenges with mission-proven actionable intelligence.” “We continued executing well, delivering another quarter of strong results, and are pleased to raise our full-year outlook,” said David Abadi, Cognyte’s chief financial officer. “We have a track record of consistently delivering revenue growth, margin expansion and strong cash generation. Market demand and our strong execution position us to further deliver sustained, profitable growth and long-term shareholder value.” FYE26 Outlook Our outlook for the year ending January 31, 2026 (“FYE26” and “Fiscal 2026”) is as follows: Revenue: $400 million, with a range of +/- 1%, which represents approximately 14% year over year growth at the midpoint of the range. Adjusted EBITDA: Approximately $47 million at the midpoint of our revenue range, representing approximately 60% year-over-year growth. Non-GAAP Diluted EPS: $0.24 at the midpoint of our revenue range. Additional Financial and Operational Data for the Third Quarter and Nine Months Ended October 31, 2025 Q3 FYE26 and YTD FYE26 Total Software revenue, which is the combination of software and software services revenue, increased by $13.5 million and $30.8 million, up 17.9% and 13.8%, respectively, compared to the same period last year. Q3 FYE26 and YTD FYE26 Software revenue increased by $11.9 million and $27.5 million, up 39.6% and 31.1%, respectively, compared to the same period last year. The increase was mainly driven by increased demand for our software solutions. Q3 FYE26 and YTD FYE26 Software services revenue increased by $1.6 million and $3.3 million, respectively, compared to the same period last year. Q3 FYE26 and YTD FYE26 Professional services and other revenue decreased by $1.7 million and increased by $6.9 million, respectively, compared to the same period last year primarily related to revenue recognition timing. Q3 FYE26 Recurring Revenue(1) increased by 1.2% to $47.5 million, compared to the same period last year and was 47.1% of total revenue. Q3 FYE26 Non-GAAP Gross profit and margin were $73.6 million and 73.1%, respectively, a significant increase of $11.2 million and 297 bps improvement compared to the same period last year. The increases reflect the continuing revenue growth and efficiencies related to COGs. YTD FYE26 Non-GAAP Gross profit and margin were $212.7 million and 72.4%, respectively, an increase of $31.3 million and 156 bps improvement compared to the same period last year. Q3 FYE26 Billings(2) increased by 2.9% to $107.7 million compared to the same period last year. Total Backlog(3) at the end of Q3 FYE26 was $458.7 million and short-term Backlog was $269.5 million. Total RPO(4) was $576.6 million at the end of Q3 FYE26 compared to $567.6 million at the end of Q3 FYE25. Short-term RPO(4) at the end of Q3 FYE26 increased to $358.9 million, providing solid visibility into revenue over the next 12 months. For information about the non-GAAP financial measure or key metric, please see “Supplemental Information About Non-GAAP Financial Measures and Other Key Metrics” at the end of this release. (1) Recurring Revenue – Recurring revenue is comprised primarily of revenue from support contracts as well as revenue from subscription offerings. (2) Billings – Revenue plus the change in contract liabilities, contract assets and unbilled balances. (3) Backlog represents unbilled amounts contracted under contracts deemed certain to be invoiced. (4) RPO, or remaining performance obligations, represents contracted revenue that has not yet been recognized that will be invoiced and recognized as revenue in future periods. Conference Call InformationRead the full story here

Cognyte Reports Third Quarter Fiscal 2026 Financial Results

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