Cognyte sees FY25 revenue growth, improved profitability and cash flow

“We delivered financial results that reflect our disciplined execution and strategic focus,” said David Abadi, Cognyte’s (CGNT) chief financial officer. “In the third quarter of fiscal 2025, we achieved double-digit revenue growth. The inherent leverage in our business model drove significant year-over-year improvements in profitability, underscoring our ability to scale efficiently. Non-GAAP operating income was $3.4 million in the quarter and Adjusted EBITDA was $6.6 million, both well above last year. Year-to-date revenue reached $256.1 million, up 11.5% year over year, with non-GAAP gross profit growing 13.9%. We also turned a year-to-date non-GAAP operating loss of $5.2 million last year into operating income of $9.7 million for the first nine months this fiscal year. Adjusted EBITDA for the same period also improved from $4.7 million to $19.9 million. We anticipate continued growth, stronger profitability and robust cash flow for the full year. With additional leverage in our business model, we are confident in our ability to deliver sustained profitability improvements in the years ahead. Specifically, we expect revenue and gross profit to continue growing faster than operating expenses, while continuing to generate significant positive free cash flow.”