Cognyte Software Ltd. ((CGNT)) has held its Q4 earnings call. Read on for the main highlights of the call.
Cognyte Software Ltd. recently held its earnings call, reflecting a strong financial performance with notable growth in revenue, profitability, and cash flow. The company successfully expanded its customer base and secured large deals, particularly in the U.S. market. Despite some challenges, such as a modest decline in revenue from the Americas and extended sales cycles in the U.S. federal market, the overall sentiment was positive, with the highlights outweighing the concerns.
Double-Digit Revenue Growth
Cognyte achieved a 13% year-over-year revenue growth in Q4, reaching $94.5 million. For the full fiscal year, revenue grew by approximately 12% to $351 million, showcasing the company’s robust financial health and market presence.
Significant Profitability Increase
The company reported a 17% year-over-year increase in non-GAAP gross profit in Q4. Adjusted EBITDA for the quarter was more than $9 million, representing a remarkable 114% year-over-year growth, highlighting Cognyte’s effective cost management and operational efficiency.
Strong Cash Flow
Cognyte’s cash flow from operations was $19 million in Q4 and $47 million for the full fiscal year, indicating strong financial management and the ability to generate cash effectively.
Expansion in Customer Base
Over the past year, Cognyte added over 60 new customers across multiple regions, about twice as many as the previous fiscal year. This expansion underscores the company’s successful market penetration and customer acquisition strategies.
Success in Securing Large Deals
In Q4, Cognyte secured multiple significant deals, including a $10 million deal with a law enforcement agency in EMEA and five deals worth $5 million or more, demonstrating the company’s capability to close high-value contracts.
U.S. Market Growth
Cognyte reported an increase in U.S. revenue and is actively pursuing opportunities in the U.S. federal law enforcement market, indicating a strategic focus on expanding its footprint in this lucrative sector.
Positive Fiscal 2026 Outlook
For fiscal 2026, Cognyte expects revenue to be approximately $392 million with a 12% year-over-year growth and adjusted EBITDA of about $43 million, representing 45% year-over-year growth. This guidance is supported by strong market demand, particularly in the U.S., and the company’s commitment to leveraging its innovative solutions for long-term growth.
In conclusion, Cognyte Software Ltd.’s earnings call highlighted a strong financial performance with significant growth in key areas. While there are challenges, such as a decline in revenue from the Americas and extended sales cycles, the company’s positive outlook and strategic initiatives suggest a promising future. Investors and market watchers will likely keep a close eye on Cognyte’s progress in the coming quarters.