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 expanding customer base.

• Hosted a global intelligence summit with over 300 attendees from 70 countries, highlighting AI-powered innovations and market leadership.

• Secured four major orders from existing customers (two over $20 million, two over $10 million) and signed nine new customers, including a $5 million contract.

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

Financial highlights

• Q3 FYE25 revenue: $89 million, up 12.1% year-over-year; adjusted EBITDA: $6.6 million, up 41.9%; non-GAAP gross profit: $62.4 million, margin 70.1%.

• Q3 FYE25 GAAP operating loss: $2.2 million; GAAP net loss: $2.6 million; non-GAAP operating income: $3.4 million.

• Year-to-date FYE25 revenue: $266.1 million, up 11.5%; non-GAAP operating income: $9.7 million (vs. $5.2 million loss prior year); adjusted EBITDA YTD: $19.9 million, up 324.9%.

• Cash, cash equivalents, and short-term investments totaled $107.3 million as of October 31, 2024, up from $83.1 million at January 31, 2024.

• Q3 FYE25 billings were $104.7 million, exceeding revenue due to large deals.

Outlook and guidance

• Full-year FYE25 revenue outlook raised to $349 million (+/- 1%), representing about 11% year-over-year growth.

• Adjusted EBITDA guidance raised to $26 million, nearly triple prior year; non-GAAP EPS projected at $0.05.

• Cash from operations for FY25 expected at $37 million.

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

• Anticipates continued double-digit growth and margin expansion in FY26, with revenue and gross profit outpacing operating expenses.