NICE (NICE) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $727 million, up 9% YoY, surpassing guidance, with EPS at the high end of the range, driven by 12% YoY cloud growth and 42% YoY AI/self-service ARR growth to $238 million.

• Operates in over 150 countries with more than 8,700 employees and 25,000 customers, including over 85% of Fortune 100 companies.

• Strategic focus on AI-first transformation, international expansion, and deepening partnerships with ServiceNow, AWS, Snowflake, Salesforce, and RingCentral.

• Major international wins include a $100M+ contract with the UK Department of Work and Pensions and large deals in Germany and the UK, displacing competitors.

• AI solutions like Copilot and Autopilot are driving measurable ROI and customer engagement, with a six-fold YoY increase in Copilot deals.

Financial highlights

• Total revenue up 9% YoY to $727M in Q2 2025; cloud revenue up 12% YoY to $541M, representing 74% of total revenue.

• AI and self-service ARR grew 42% YoY to $238M, now 11% of cloud revenue.

• GAAP net income for Q2 2025 was $187.4M, up 62% YoY; non-GAAP operating income rose 9% to $219.7M; non-GAAP operating margin was 30.2%.

• Cash and short-term investments totaled $1.63B; net cash and investments at $1.2B, with $460M debt to be repaid in September.

• Cash flow from operations $61M in Q2; free cash flow $38.6M.

Outlook and guidance

• Q3 2025 revenue expected at $722M-$732M (5% YoY growth midpoint); EPS $3.12-$3.22 (10% YoY growth midpoint).

• Full-year 2025 revenue guidance reaffirmed at $2.918B-$2.938B (7% YoY growth midpoint); cloud revenue growth expected at 12%.

• Full-year EPS guidance raised to $12.33-$12.53 (12% YoY growth midpoint); non-GAAP operating margin to increase by 50 bps YoY.

• Guidance excludes impact from pending Cognigy acquisition, expected to close in Q4 2025.

• Positioned for growth through AI innovation, strategic partnerships, and financial strength.