Cognyte Software Ltd. (NASDAQ: CGNT) closed out fiscal year 2025 with a notable return to profitability and double-digit top-line growth, reporting revenue of $350.6 million for the year ended January 31, 2025. The Israel-based provider of investigative analytics solutions continues to build operational momentum, issuing an optimistic forecast for fiscal 2026 with expectations of continued revenue growth and an even steeper climb in profitability.
- Full-year revenue rose 12% to $350.6 million from $312.8 million in fiscal 2024
- Non-GAAP operating income reached $15.7 million, reversing a $4.2 million loss in the prior year
- Adjusted EBITDA more than tripled to $29.1 million, up from $9.0 million in fiscal 2024
Fourth quarter results further reinforced Cognyte’s turnaround. Revenue in Q4 came in at $94.5 million, representing a 13% year-over-year increase. GAAP operating income flipped to a modest $0.7 million profit, while non-GAAP operating income expanded to $6.0 million from $1.0 million in the same period last year. Q4 Adjusted EBITDA jumped 114% to $9.3 million compared to $4.3 million in the prior-year quarter
The company’s software-led model continues to scale effectively, with total software revenue rising $28.1 million year-over-year to $306.7 million. Gains were led by appliance software, perpetual licenses, and recurring revenue from subscriptions and support contracts. Recurring revenue in Q4 increased 10.3% to $47.3 million year-over-year
Cognyte’s balance sheet also strengthened considerably. The company ended the fiscal year with $113.1 million in cash, cash equivalents, and restricted cash, up from $83.1 million a year earlier. Net cash from operating activities hit $46.8 million for the year, compared to $34.6 million in fiscal 2024.
Looking ahead, Cognyte is guiding for fiscal 2026 revenue of approximately $392 million, reflecting roughly 12% growth. More notably, the company expects to continue its path of operating leverage, projecting adjusted EBITDA of $43 million and non-GAAP diluted earnings per share of $0.16.
Cognyte ended the year with $545.8 million in remaining performance obligations (RPO), including $335.3 million in short-term RPO, offering solid visibility into next year’s topline outlook
Management emphasized the company’s focus on deepening relationships with existing customers while also winning new logos across global intelligence, law enforcement, and security agencies. Cognyte’s platform, increasingly powered by artificial intelligence and machine learning, helps organizations anticipate and respond to complex security threats in real time.
An Analyst and Investor Day is scheduled for April 8, 2025, where the leadership team will share long-term targets and detail how the company plans to scale its operations and financial performance over the coming years.
The post Cognyte Delivers Double-Digit Growth and Strong Profit Gains in Fiscal 2025; Guides Higher for 2026 appeared first on PRISM MarketView.
