Cognyte Software (CGNT) Q3 2025 earnings summary

Executive summary

• Q3 FYE25 revenue grew 12.1% year-over-year to $89 million, driven by strong execution, robust demand, and significant deal wins.

• Recurring revenue accounted for 53% of total revenue in Q3, reflecting the value of solutions and customer retention.

• Hosted a global summit introducing AI-powered innovations and advanced analytics, reinforcing market leadership and customer engagement.

• Management highlighted disciplined execution, double-digit revenue growth, and improved profitability, leading to an increased full-year outlook.

• Secured major deals with existing customers and expanded the customer base, including notable wins in North America.

Financial highlights

• Q3 FYE25 revenue was $89 million, up 12.1% year-over-year; non-GAAP gross profit was $62.4 million with a 70.1% margin.

• Adjusted EBITDA for Q3 FYE25 was $6.6 million, up 41.9% year-over-year; non-GAAP operating income was $3.4 million, up 180%.

• Q3 FYE25 GAAP operating loss was $2.2 million; GAAP net loss was $2.6 million; non-GAAP EPS was $0.02.

• Year-to-date FYE25 revenue reached $266.1 million, up 11.5% year-over-year; YTD adjusted EBITDA surged 324.9% to $19.9 million.

• Cash, cash equivalents, and short-term investments totaled $107.3 million as of October 31, 2024, with $12.3 million in Q3 cash from operations.

Outlook and guidance

• Full-year FYE25 revenue outlook raised to $349 million at the midpoint, representing about 11% year-over-year growth.

• Adjusted EBITDA guidance raised to approximately $26 million, nearly triple the prior year.

• Projected annual non-GAAP EPS of $0.05 and $37 million in cash from operations.

• Total software revenue expected to comprise about 87% of total revenue for FYE25.

• Anticipates continued double-digit growth and margin expansion in fiscal 2026.