Cognyte Reports Third Quarter Fiscal 2026 Financial Results

HERZLIYA, Israel, December 9, 2025 – Cognyte Software Ltd. (NASDAQ: CGNT) (the “Company,” “Cognyte,” “we,” “us” and “our”), a global leader in software-driven technology for investigative analytics, today announced results for the three and nine months ended October 31, 2025 (“Q3 FYE26” and “YTD FYE26”).

For the full Press Release, click here.

Financial Summary for Three Months Ended October 31, 2025

• Q3 FYE26 Revenue was $100.7 million, up approximately 13.2% compared to the same period last year.
• Q3 FYE26 GAAP operating income was $3.2 million, compared to an operating loss of $2.2 million in the same period last year.
• Q3 FYE26 Non-GAAP operating income was $9.0 million, compared to operating income of $3.4 million in the same period last year.
• Q3 FYE26 GAAP Net loss was$3.4 million, compared to a net loss of $2.6 million in the same period last year. The higher loss this quarter was primarily driven by increased tax expenses and foreign exchange impacts.
• Q3 FYE26 Adjusted EBITDA was $11.9 million, compared to $6.6 million in the same period last year, growing significantly faster than revenue.

Financial Summary for the Nine Months Ended October 31, 2025

• YTD FYE26 Revenue was $293.8 million, up approximately 14.7% compared to the same period last year.
• YTD FYE26 GAAP operating income was significantly improved at $8.1 million, compared to an operating loss of $5.8 million during the same period last year.
• YTD FYE26 Non-GAAP operating income was $24.6 million, up nearly three times from the $9.7 million generated during the same period last fiscal year.
• YTD FYE26 GAAP Net losswas $0.5 million, compared to a net loss of $7.0 million during the same period last year.
• YTD FYE26 Adjusted EBITDA was $33.2 million, compared to $19.9 million during the same period last year, representing an increase of approximately 67%.

Balance Sheet and Net Cash Provided by Operating Activities

• During Q3 FYE26, the company bought approximately 152,000 ordinary shares for an aggregate purchase price of approximately $1.3 million under the share repurchase program approved by the board of directors in July 2025.
• During the third quarter, we further strengthened our cash position, which increased to $106.6 million, with no debt, reflecting disciplined working-capital management.
• During the three months ended October 31, 2025, net cash provided by operating activities was $25.0 million, compared to $12.3 million in the same period last year. The significant increase was a result of strong collections and improved profitability.   

Management Commentary

“Our strong performance reflects our leadership in AI-driven investigative analytics,” said Elad Sharon, Cognyte’s chief executive officer. “Our relentless innovation is rooted in the real operational needs of today and tomorrow. As operating environments become more high-stakes, customers turn to us to help them solve complex, multi-dimensional challenges with mission-proven actionable intelligence.”

“We continued executing well, delivering another quarter of strong results, and are pleased to raise our full-year outlook,” said David Abadi, Cognyte’s chief financial officer. “We have a track record of consistently delivering revenue growth, margin expansion and strong cash generation. Market demand and our strong execution position us to further deliver sustained, profitable growth and long-term shareholder value.”

FYE26 Outlook

Our outlook for the year ending January 31, 2026 (“FYE26” and “Fiscal 2026”) is as follows:

• Revenue: $400 million, with a range of +/- 1%, which represents approximately 14% year over year growth at the midpoint of the range.
• Adjusted EBITDA: Approximately $47 million at the midpoint of our revenue range, representing approximately 60% year-over-year growth.
• Non-GAAP Diluted EPS: $0.24 at the midpoint of our revenue range.

Additional Financial and Operational Data for the Third Quarter and Nine Months Ended October 31, 2025

• Q3 FYE26 and YTD FYE26 Total Software revenue, which is the combination of software and software services revenue, increased by $13.5 millionand$30.8 million, up 17.9% and 13.8%, respectively, compared to the same period last year.
• Q3 FYE26 and YTD FYE26 Software revenue increased by $11.9 million and $27.5 million, up 39.6% and 31.1%, respectively, compared to the same period last year. The increase was mainly driven by increased demand for our software solutions.
• Q3 FYE26 and YTD FYE26 Software services revenue increased by $1.6 million and $3.3 million, respectively, compared to the same period last year.
• Q3 FYE26 and YTD FYE26 Professional services and other revenue decreased by $1.7 million and increased by $6.9 million, respectively, compared to the same period last year primarily related to revenue recognition timing.
• Q3 FYE26 Recurring Revenue⁽¹⁾ increased by 1.2% to $47.5 million, compared to the same period last year and was 47.1% of total revenue.
• Q3 FYE26 Non-GAAP Gross profit and margin were $73.6 million and 73.1%, respectively, a significant increase of $11.2 million and 297 bps improvement compared to the same period last year. The increases reflect the continuing revenue growth and efficiencies related to COGs.
• YTD FYE26 Non-GAAP Gross profit and margin were $212.7 million and 72.4%, respectively, an increase of $31.3 million and 156 bps improvement compared to the same period last year.
• Q3 FYE26 Billings⁽²⁾  increased by 2.9% to $107.7 million compared to the same period last year.
• Total Backlog⁽³⁾ at the end of Q3 FYE26 was $458.7 million and short-term Backlog was $269.5 million.
• Total RPO⁽⁴⁾ was $576.6 million at the end of Q3 FYE26 compared to $567.6 million at the end of Q3 FYE25.
• Short-term RPO⁽⁴⁾ at the end of Q3 FYE26 increased to $358.9 million, providing solid visibility into revenue over the next 12 months.

Conference Call Information

We will conduct a conference call today at 8:30 a.m. ET to discuss our results for the three and nine months ended October 31, 2025. A real-time webcast of the conference call with presentation slides will be available in the Investor Relations section of Cognyte’s website. Those interested in participating in the question-and-answer session need to register here to receive the dial-in numbers and unique PIN to access the call seamlessly. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call). An archived webcast of the conference call will also be available in the “Investors” section of the company’s website.

About Cognyte

Cognyte is a leading software-led technology company, focused on solutions for data processing and investigative analytics which allow customers to generate actionable intelligence from their data, thereby enabling a safer world. Cognyte’s solutions empower law enforcement, national security, national and military intelligence agencies, and other organizations to navigate an increasingly complex landscape. With offerings that leverage state-of-the-art technology, including Artificial Intelligence (AI), big data analytics and advanced machine learning. Cognyte enables smarter, faster decisions for successful outcomes. Hundreds of customers rely on Cognyte solutions to uncover critical insights from past events and anticipate emerging threats. By harnessing AI-driven intelligence, Cognyte accelerates investigations with exceptional speed and accuracy while enabling customers to better anticipate, predict and mitigate threats with greater precision. Learn more at www.cognyte.com.

About Non-GAAP Financial Measures and Other Key Metrics

This press release and the accompanying tables include non-GAAP financial measures and other key metrics. For a description of these non-GAAP financial measures and other key metrics, including the reasons management uses each measure and metric, and reconciliations of non-GAAP financial measures presented for completed periods to the most directly comparable financial measures prepared in accordance with GAAP, please see the tables below as well as “Supplemental Information About Non-GAAP Financial Measures” at the end of this press release.

Our non-GAAP outlook for FYE26 excludes the following GAAP measures for which we are able to provide a range of probable significance:

• Stock-based compensation is expected to be between approximately $20.5 and $22.5 million, assuming market prices for our ordinary shares are generally consistent with current levels.
• Amortization expense of other acquired intangible assets is expected to be approximately $0.5 million.

For additional information about our expectations for FYE26, please refer to the Q3 FYE26 conference call we will conduct on December 9, 2025.

Our non-GAAP outlook unless otherwise specified, reflects foreign currency exchange rates approximately consistent with current rates, and does not include the potential impact of any business acquisitions that may close after the date hereof.

We are unable, without unreasonable effort, to provide a reconciliation for other GAAP measures which are excluded from our non-GAAP outlook, including the impact of future business acquisitions or future acquisition expenses, future restructuring expenses, and non-GAAP income tax adjustments due to the level of unpredictability and uncertainty associated with these items. For these same reasons, we are unable to assess the probable significance of these excluded items. While historical results may not be indicative of future results, actual amounts for the three and nine months ended October 31, 2025, and 2024, respectively, for the GAAP measures excluded from our non-GAAP outlook appear in Table 4 of this press release.

Caution About Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the United States Securities Exchange Act of 1934. Forward-looking statements include statements regarding expectations, predictions, views, opportunities, plans, strategies, beliefs, and statements of similar effect relating to Cognyte. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements. These forward-looking statements do not guarantee future performance and are based on management’s expectations that involve a number of known and unknown risks, uncertainties, assumptions and other important factors, any of which could cause our actual results or conditions to differ materially from those expressed in or implied by the forward-looking statements. Some of the factors that could cause our actual results or conditions to differ materially from current expectations include, among others: uncertainties regarding the impact of changes in macroeconomic and/or global conditions; risks related to geopolitical changes and investor visibility constraints; risks related to new tariffs and retaliatory measures that may adversely affect the economy and reduce government spending; risks related to the impact of inflation and related volatility on our financial performance; risks relating to adverse changes to the regulatory constraints to which we are subject; risks related to the impact of disruptions to the global supply chain; risks resulting from health crises; risks related to conditions in Israel including Israel’s conflict with Hamas and other terrorist organizations in the region since October 7, 2023; risks associated with customer concentration and challenges associated with our ability to accurately forecast revenue and expenses; risks associated with political and reputational factors related to our business or operations; risks associated with our ability to keep pace with technological advances and challenges and evolving industry standards; risks relating to proprietary rights infringement claims; risks relating to defects, operational problems, or vulnerability to cyber-attacks of our products or any of the components used in our products; risks related to the strengths of our intellectual property rights protection; risks that we may be unable to establish and maintain relationships with key resellers, partners, and system integrators and risks associated with our reliance on third-party suppliers for certain components, products or services; risks due to the aggressive competition in all of our markets; challenges associated with our long sales cycles and with the sophisticated nature of our solutions; risks associated with our ability or costs to retain, recruit and train qualified personnel; risks relating to our ability to properly manage investments in our business and operations, execute on growth or strategic initiatives; risks associated with acquisitions, strategic investments, partnerships or alliances; risk of security vulnerabilities or lapses, including cyber-attacks, information technology system breaches, failures or disruptions; risks associated with the mishandling or perceived mishandling of sensitive, confidential or classified information; risks associated with our failure to comply with laws; risks associated with our credit facilities or that we may experience liquidity or working capital issues and related risks that financing sources may be unavailable to us on reasonable terms; risks associated with changing tax laws and regulations, tax rates, and the continuing availability of expected tax benefits in the countries in which we operate; risks associated with our significant international operations, including due to our Israeli operations, fluctuations in foreign exchange rates, and exposure to regions subject to political or economic instability; risks associated with complex and changing regulatory environments relating to our operations and the markets we operate in; risks relating to the adequacy of our existing infrastructure, systems, processes, policies, procedures, internal controls and personnel for our current and future operations and reporting needs; risks related to the tax treatment of our spin-off from Verint; risks related to our share repurchase program, and risks associated with different corporate governance requirements applicable to Israeli companies and risks associated with being a foreign private issuer; and other risks set forth and in Section 3.D – “Risk Factors” in our latest annual report on Form 20-F for the fiscal year ended January 31, 2025, that was filed with the Securities and Exchange Commission (the “SEC”) on April 2, 2025, and in our subsequent filings with the SEC. In addition, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time. It is not possible for our management to predict all risks and uncertainties, nor can we assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements that we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release are inherently uncertain and may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Accordingly, you should not rely upon forward-looking statements as predictions of future events. Any forward-looking statement made in this press release speaks only as of the date hereof. Except as otherwise required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances, or any other reason.

For the full Press Release, click here.

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Contact:

Investor Relations
Dean Ridlon
Cognyte Software
[email protected]