Cognyte Software (CGNT) Q4 2025 earnings summary

Executive summary

• Achieved double-digit revenue growth for Q4 and FY25, with Q4 revenue up 13% year-over-year to $94.5 million and full-year revenue up 12% to $350.6 million, driven by strong global demand and expanding customer base.

• Profitability outpaced revenue growth, with non-GAAP gross profit up 15% for the year and adjusted EBITDA more than tripling to $29.1 million; GAAP operating loss narrowed significantly.

• Strong cash flow from operations: $19 million in Q4 and $47 million for the year; cash position at year-end rose to $113.3 million, up $30 million year-over-year, with no debt.

• Secured significant deals, including a $10 million+ technology upgrade and multi-year support agreement, and added over 60 new customers globally.

• U.S. market expansion remains a key focus, with increased investments and new customer wins, especially in federal law enforcement.

Financial highlights

• Q4 revenue: $94.5 million (+12.9% year-over-year); full-year revenue: $350.6 million (+12%).

• Q4 adjusted EBITDA: $9.3 million (+114% year-over-year); full-year adjusted EBITDA: $29.1 million (over 3x last year).

• Q4 non-GAAP gross margin: 71.5%; full-year non-GAAP gross margin: 71% (+180 bps year-over-year).

• Q4 non-GAAP operating income: $6 million (over 500% increase year-over-year); full-year non-GAAP operating income: $15.7 million (vs. $4.2 million loss last year).

• Cash, cash equivalents, and restricted cash at year-end: $113.3 million, up from $83.1 million last year, with no debt.

Outlook and guidance

• Fiscal 2026 revenue expected at $392 million (±2%), representing ~12% year-over-year growth.

• Adjusted EBITDA guidance for fiscal 2026: $43 million (+45% year-over-year); non-GAAP operating income expected to nearly double to $30 million; non-GAAP EPS expected at $0.16.

• Cash flow from operations projected at $45 million; CapEx expected at $13 million.

• Q1 revenue expected to be similar to Q4, with sequential growth each quarter.

• Profitability projected to grow significantly faster than revenue in FY26.