Commvault Systems (CVLT) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue reached $225 million, up 13% year-over-year, with strong growth in subscription and SaaS ARR.

• Subscription revenue rose 28% to $124.1 million; SaaS ARR surged 66% to $188 million.

• Non-GAAP EBIT margin was 21.5%, with free cash flow of $44 million and $51 million in share repurchases.

• Net income rose to $18.5 million ($0.41 per diluted share); non-GAAP net income was $38.4 million ($0.85 per share).

• Completed Appranix acquisition to enhance cyber resiliency offerings.

Financial highlights

• Total ARR grew 17% year-over-year to $803 million; subscription ARR up 27% to $636 million.

• SaaS revenue up 69% year-over-year; SaaS ARR now over 23% of total ARR.

• Gross margin was 83%, flat year-over-year; non-GAAP net income was $38.4 million.

• Free cash flow margin for the quarter was approximately 19.5%.

• Cash and cash equivalents totaled $288 million at quarter end.

Outlook and guidance

• Q2 2025 revenue expected at $218–$222 million; subscription revenue $120–$124 million.

• FY25 guidance: total revenue $915–$925 million, ARR growth of 15%, subscription ARR up 23–25%.

• Non-GAAP EBIT margin expected at 20–21%; free cash flow at least $200 million.

• Non-GAAP tax rate lowered to 24%.

• FY26 target: $1 billion ARR, ~90% subscription mix, $310–$330 million SaaS ARR.