CGNT

DocuSign (DOCU) came out with quarterly earnings of $1.16 per share, beating the Zacks Consensus Estimate of $1.08 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +7.41%. A quarter ago, it was expected that this provider of electronic signature technology would post earnings of $1 per share when it actually produced earnings of $1.09, delivering a surprise of +9%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. DocuSign, which belongs to the Zacks Internet - Software industry, posted revenues of $875.75 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.94%. This compares to year-ago revenues of $800.64 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. DocuSign shares have lost about 4.4% since the beginning of the year versus the S&P 500's gain of 12%. While DocuSign has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for DocuSign was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.15 on $887.15 million in revenues for the coming quarter and $4.54 on $3.5 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Cognyte Software Ltd. (CGNT), another stock in the same industry, has yet to report results for the quarter ended July 2026. The results are expected to be released on September 9. This company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +12.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Cognyte Software Ltd.'s revenues are expected to be $108.7 million, up 11.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Docusign Inc. (DOCU) : Free Stock Analysis Report Cognyte Software Ltd. (CGNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

KANZHUN LIMITED Sponsored ADR (BZ) came out with quarterly earnings of $0.33 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.13%. A quarter ago, it was expected that this company would post earnings of $0.25 per share when it actually produced earnings of $0.27, delivering a surprise of +8%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Kanzhun, which belongs to the Zacks Internet - Software industry, posted revenues of $353.51 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.5%. This compares to year-ago revenues of $293.49 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Kanzhun shares have lost about 24.2% since the beginning of the year versus the S&P 500's gain of 11.8%. While Kanzhun has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Kanzhun was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.31 on $361.52 million in revenues for the coming quarter and $1.29 on $1.37 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Cognyte Software Ltd. (CGNT), is yet to report results for the quarter ended July 2026. This company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +12.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Cognyte Software Ltd.'s revenues are expected to be $108.7 million, up 11.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KANZHUN LIMITED Sponsored ADR (BZ) : Free Stock Analysis Report Cognyte Software Ltd. (CGNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Cognyte Software Ltd. CGNT delivered a mixed start to fiscal 2027, leaving investors weighing strong operational execution against lingering concerns. The company provides data processing and AI-driven investigative analytics solutions primarily to governments and law enforcement agencies.  As simmering geopolitical tensions lead to complex and massive volumes of data, the demand for such solutions is exploding. Image Source: Zacks Investment Research Revenues for the fiscal first quarter rose 10.4% year over year to $105.5 million and beat the Zacks Consensus Estimate by 0.2%. However, non-GAAP earnings per share came in at 3 cents, lower than 7 cents reported in the prior year quarter and the Zacks Consensus Estimate of 10 cents. The stock price declined 20.6% on June 3. Since then, the stock price has lost 22%. It closed yesterday at $9.06, up 0.8%. This slide is bound to raise the obvious question: Is this the beginning of a deeper structural problem, or simply a pause in an otherwise long-term growth story? Let's do a deep dive and assess what to do with CGNT. Cognyte’s appeal lies in its positioning within a high-growth, mission-critical market. Governments and security agencies are dealing with increasingly complex threats, driving demand for advanced analytics and AI-driven intelligence platforms. Management emphasized that demand is being driven by rising data volumes, fragmented intelligence sources and the need for faster decision-making. A major highlight this quarter was higher subscription and recurring revenues. Software revenues of $47.3 million rose 26.5% year over year, while software services revenues of $50.1 million were up 12.1%. Recurring revenues were up 10% to $51.9 million, accounting for nearly 49.2% of total revenues, improving long-term visibility. Management remains focused on installed base expansion, new client acquisition and scaling of the U.S. market. CGNT noted that within the federal vertical, it has advanced several opportunities through proof of concepts and live operational demonstrations. It now has a maturing pipeline, including opportunities developed directly and via collaborations. CGNT added that it expects to generate $20 million in deals and considers the U.S. security market a significant long-term opportunity. The integration of AI into investigative workflows is emerging as a key differentiator. Cognyte is embedding AI into its operational systems platform, which creates a competitive moat. Cognyte Software Ltd. price-consensus-eps-surprise-chart | Cognyte Software Ltd. Quote The company’s backlog and remaining performance obligations (“RPO”) strengthen revenue visibility. Total RPO was $528.8 million, with a backlog of $399.8 million at the end of the fiscal first quarter. Total RPO is the sum of contract liabilities and backlog. As revenues scale, profitability is also improving. Non-GAAP gross margin expanded by 100 basis points to 72.9%. Non-GAAP operating income rose 41.5% to $10.7 million, while adjusted EBITDA grew 31.5% to $13.6 million. The company ended the quarter with $109.2 million in cash and no debt, maintaining a strong balance sheet. A strong balance sheet provides flexibility for acquisitions, innovation and shareholder returns. The company is also actively returning capital through share buybacks, signaling confidence in its growth. CGNT repurchased stock worth $8.2 million in the fiscal first quarter. Despite these positives, several concerns remain. The company reported a negative operating cash flow of $4.7 million in the quarter. The performance was affected by the transition to a subscription model, forex dynamics and inventory levels. Challenges associated with the shift to a subscription model are that revenues are recognized over time rather than upfront. The transition may lead to temporary pressure on revenue growth and increased volatility in key financial metrics. Moreover, the company’s expansion in the U.S. market, although promising, is still in its early stages and will require consistent execution to deliver results. Macro uncertainty, competition, rising operating expenses, forex headwinds and dependence on government spending cycles remain concerns. The company has reiterated its fiscal 2027 guidance.  Revenues are expected to be $448 million (+/-3%) compared with $400 million in fiscal 2026. Image Source: Zacks Investment Research Analysts have kept earnings estimates unchanged for CGNT’s current fiscal year. CGNT stock has inched up 5.6% versus the Zacks Internet Software industry’s 0.3% decline over the past three months. The broader Computer and Technology sector and the S&P 500 are up 19% and 9.3%, respectively. Image Source: Zacks Investment Research Some of its peers, such as Elbit Systems ESLT and Palantir PLTR, have lost 5.4% and 9.7%, respectively, while L3Harris Technologies LHX is down double digits.  Elbit Systems is an Israel-based company like Cognyte, while Palantir and L3Harris are established U.S.-based companies. In terms of price-to-book multiple, CGNT is trading at 3.02X, below the sector’s 4.51X. Image Source: Zacks Investment Research ESLT, PLTR and LHX trade at a price/book multiple of 8.66X, 38.24X and 2.86X, respectively. At present, CGNT carries a Zacks Rank #3 (Hold). Cognyte’s strong revenue visibility, expanding margins and growing role in the AI-driven investigative analytics space bode well. However, execution risks and forex dynamics remain concerning. Existing investors can retain CGNT, while new investors may be better off waiting for a more attractive entry point, as near-term uncertainty and muted estimate revisions could limit upside despite long-term growth potential. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Elbit Systems Ltd. (ESLT) : Free Stock Analysis Report Cognyte Software Ltd. (CGNT) : Free Stock Analysis Report L3Harris Technologies Inc (LHX) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Double-digit revenue growth was driven by sustained demand for investigative analytics and a faster-than-anticipated adoption of subscription offerings. Management attributes the shift toward subscriptions to customers' need for faster technology refreshes and AI integration to keep pace with rapidly evolving adversaries. The platform's value proposition centers on collapsing manual data correlation tasks that previously took weeks into a single, cohesive environment for actionable intelligence. Operational leverage is expanding as software revenue grows faster than total revenue, allowing profitability to scale significantly despite macro pressures. The intelligence environment is becoming increasingly fragmented and data-intensive, driving a 'pull' from the installed base for multi-domain integration rather than standalone tools. Strategic focus on financial investigations is addressing rising demand for tracking illicit financing across both traditional and digital currencies. Proactive management of foreign exchange volatility and rising hardware costs is being utilized to protect gross margins and overall profitability. Full-year revenue guidance is reaffirmed at approximately $448 million, with recurring revenue now expected to grow faster than total revenue. Management expects to generate $20 million in deals from the U.S. market this year, viewing it as a critical long-term growth engine for both state and federal levels. The fiscal year 2028 adjusted EBITDA target was updated to approximately 20% to account for recent exchange rate changes and currency headwinds. Cash flow from operations is projected to be approximately $45 million for the full year, with generation heavily weighted toward the second half. Inventory levels are being intentionally increased to mitigate hardware cost dynamics and ensure the ability to meet future demand. The continued weakness of the U.S. dollar against the Israeli shekel remains a primary driver of increased operating expenses. A minority investment was sold during the quarter, generating $6.5 million in cash to support strategic flexibility. The company repurchased approximately 1 million shares for $8.2 million in Q1, continuing a disciplined approach to shareholder value creation. Subscription adoption is introducing new timing dynamics for RPO, billings, and cash collections compared to traditional perpetual models. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that while RPO and bookings are strong, guidance remains unchanged due to specific deployment cycles and timing considerations. The decision to maintain the top-line guide while increasing the recurring revenue mix reflects a deliberate transition toward higher business predictability. The Q1 cash shortfall was attributed to inventory buildup of $3 million to support future revenue and the shift in collection profiles from subscription deals. Management expects a typical seasonal recovery where Q3 and Q4 provide the bulk of annual cash generation. Confidence in the U.S. market is increasing due to positive feedback from federal proof-of-concepts and more effective partner leverage. The $20 million figure refers to expected deal signings this year, with a significant portion anticipated to translate into recognized revenue within the same period.

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Cognyte Software (CGNT) has come into focus after reporting first quarter results, with revenue of US$105.49 million and a net loss of US$3.04 million, alongside recent large government contract wins. See our latest analysis for Cognyte Software. The sharp 1-day share price decline of 20.57% to US$9.23 wiped out much of the recent momentum. This comes even though the 90-day share price return is up 10.14% and the 3-year total shareholder return is up 77.16%. Taken together, these figures highlight how the latest earnings and government contract headlines have quickly shifted risk perceptions after a weaker 1-year total shareholder return of 17.48%. If Cognyte’s move has you thinking about where software and data are heading next, it could be worth scanning 30 AI small caps for ideas beyond a single stock. With shares falling even as revenue is about US$400 million and the stock trades below some analyst price targets and an intrinsic value estimate, should you view Cognyte as undervalued, or is the market already pricing in future growth? Cognyte’s most followed valuation story pegs fair value at $95.67 per share, far above the last close at $9.23, which creates a wide gap for investors to assess. Read the complete narrative. Want to see how a revenue ramp, margin uplift, and future profit multiple come together to justify that gap? TheValueDetector’s narrative spells out the full financial blueprint behind that $95.67 figure. Result: Fair Value of $95.67 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this bullish script could be knocked off course if large government customers scale back contracts, or if the current net loss of US$638,000 widens. Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page. With the story leaning bullish but risks still on the table, it makes sense to check the numbers yourself, compare scenarios, and weigh the 4 key rewards. If Cognyte has sharpened your focus, do not stop here. A broader watchlist can help you spot opportunities you might otherwise miss. Target resilient companies with lower risk profiles by scanning 63 resilient stocks with low risk scores which may hold up differently across market conditions. Hunt for strong businesses trading at appealing valuations using the 47 high quality undervalued stocks to see which stocks currently stand out on price versus fundamentals. Seek out potential standouts that fewer investors are watching by checking the screener containing 22 high quality undiscovered gems before attention and liquidity possibly build. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CGNT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Revenue: $105.5 million, up 10.4% year-over-year. Software Revenue: $47.3 million, an increase of 26.5% year-over-year. Software Services Revenue: $50.1 million, up 12.1% year-over-year. Total Software Revenue: Grew by 18.6% year-over-year. Professional Services Revenue: $8.2 million, down from $13.5 million last year. Recurring Revenue: Increased by 10% to $51.9 million, representing 49.2% of total revenue. Non-GAAP Gross Margin: 72.9%, an expansion of 100 basis points year-over-year. Non-GAAP Operating Income: $10.7 million, an increase of 41.5% year-over-year. Adjusted EBITDA: $13.6 million, up 31.5% from last year. Cash and Cash Equivalents: $109.2 million with no debt. Negative Cash Flow from Operations: $4.7 million. Negative Free Cash Flow: $6.1 million. Share Repurchases: Approximately 1 million shares for $8.2 million. Full Year Revenue Guidance: Approximately $448 million, plus or minus 3%. Non-GAAP EPS Guidance: Expected to be $0.47. Warning! GuruFocus has detected 6 Warning Sign with CGNT. Is CGNT fairly valued? Test your thesis with our free DCF calculator. Release Date: June 03, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cognyte Software Ltd (NASDAQ:CGNT) reported double-digit year-over-year revenue growth, driven by strong customer activity and better-than-expected adoption of its subscription offerings. The company achieved significant profitability improvements, with non-GAAP operating income increasing by 41.5% year-over-year. Recurring revenue increased by 10% to $51.9 million, supported by the growing momentum of subscription offerings. Cognyte Software Ltd (NASDAQ:CGNT) secured new subscription agreements valued at over $20 million and a large expansion deal valued at over $10 million. The company is making encouraging progress in the US market, expecting to generate $20 million in deals this year, with strong customer feedback and increased visibility. Cognyte Software Ltd (NASDAQ:CGNT) experienced negative cash flow from operations of $4.7 million in Q1, primarily due to FX dynamics, subscription adoption, and inventory buildup. Professional services revenue decreased by $13.5 million compared to Q1 last year, reflecting expected quarterly fluctuations. The company faces challenges from foreign exchange movements, particularly the weakness of the US dollar against the Israeli shekel, impacting operating expenses. Despite strong performance, the company maintained its full-year guidance, indicating potential conservatism or uncertainties in deployment cycles and timing. Cognyte Software Ltd (NASDAQ:CGNT) reported a non-GAAP other expense loss of $2.2 million due to FX dynamics, affecting overall profitability. Q: Given the strong performance in the quarter and acceleration in current bookings, why is Cognyte maintaining its full-year guidance? Is it due to conservatism? A: The decision to maintain the guidance is not about conservatism. It considers deployment cycles and timing. Despite maintaining the guidance, we are pleased to increase recurring revenue, reflecting strong subscription adoption and a 10% year-over-year growth in recurring revenue. Q: Cash flow came in lighter than expected. What factors contributed to this, and how does Cognyte plan to meet its full-year cash flow guidance? A: The lighter cash flow was influenced by FX dynamics, increased subscription sales, and inventory buildup to support future demand. Despite these factors, we expect to achieve the $45 million full-year cash flow target, with stronger cash flow anticipated in the second half of the year. Q: Is Cognyte still on track to achieve its US revenue targets, given the $20 million expected from US deals this year? A: Yes, confidence in the US market is increasing. The US is a strategic market, and our technology resonates well with customers. We expect $20 million in deals this year and $25 million next year, with potential for overachievement. Q: With the strong software and recurring revenue growth, is the expected 87%-13% split between software and professional services still accurate? A: While software revenue is growing fast, we maintain the 87%-13% split expectation. The recurring revenue growth is driving this, with recurring revenue expected to grow more than 12% this year, indicating a healthy business transition. Q: What has driven the continued strength in subscription adoption, and is this expected to continue? A: Customers benefit from faster tech refresh and maintaining high solution value with subscriptions. The dynamic threat environment and faster technology changes are driving this shift. We are pleased with the recurring revenue growth and maintaining overall top-line growth, indicating market health and strong execution. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Cognyte Software Ltd. (NASDAQ:CGNT) shares fell more than 20% in premarket trading on Wednesday after the company reported first-quarter fiscal 2027 earnings that came in below analyst expectations, despite delivering revenue slightly ahead of forecasts. The sharp market reaction suggested investors focused on weaker-than-expected profitability metrics rather than the company’s top-line growth and reaffirmed outlook. For the quarter, Cognyte reported adjusted earnings per share of $0.03, missing the consensus estimate of $0.08 per share. Revenue reached $105.5 million, modestly exceeding analyst expectations of $104.96 million and representing a 10.4% increase from the $95.5 million generated during the same period a year earlier. Despite the revenue beat, the earnings shortfall weighed heavily on investor sentiment. Management left its fiscal 2027 outlook unchanged, forecasting adjusted earnings per share of approximately $0.47 for the full year, broadly in line with market expectations. The company also maintained its revenue outlook, targeting approximately $448 million at the midpoint of its guidance range, compared with analyst forecasts of roughly $446 million. Chief Financial Officer David Abadi highlighted the growing contribution from recurring revenue streams and subscription-based offerings. “Our first quarter results reflect the substantial value our differentiated solutions deliver to customers and the operational discipline with which we are managing the business,” said David Abadi, Cognyte’s chief financial officer. “As a result of better-than-expected adoption of subscription offerings, we now expect recurring revenue to grow faster than total revenue.” The comments underscore the company’s ongoing transition toward a more predictable and recurring revenue model. Although earnings per share missed expectations, several operating metrics improved year over year. Adjusted EBITDA rose 31.5% to $13.6 million, compared with $10.3 million in the prior-year quarter. Adjusted operating income increased 41.5% to $10.7 million from $7.6 million a year earlier, reflecting continued operational efficiency improvements. Cognyte’s software segment remained a key growth engine during the quarter. Software revenue climbed 26.5% year over year to $47.3 million, while software services revenue increased 12.1% to $50.1 million. Meanwhile, professional services and other revenue declined to $8.2 million from $13.5 million in the prior-year period. Recurring revenue, which includes support agreements and subscription services, rose 10% to $51.9 million and accounted for 49.2% of total revenue during the quarter. The company ended the quarter with $109.2 million in cash and cash equivalents and remained debt-free. Cognyte also continued returning capital to shareholders, repurchasing approximately one million shares during the quarter for a total cost of $8.2 million. While investors reacted negatively to the earnings miss, the company’s solid cash position, recurring revenue growth and maintained full-year guidance suggest management remains confident in its longer-term operating trajectory. Cognyte Software stock price

Interested in Cognyte Software Ltd.? Here are five stocks we like better. Cognyte reported first-quarter fiscal 2027 revenue of $105.5 million, up 10.4% year over year, and reaffirmed its full-year outlook. Growth was driven by stronger software sales and faster subscription adoption, especially in recurring revenue. Profitability improved meaningfully, with non-GAAP gross margin rising to 72.9% and adjusted EBITDA increasing 31.5% to $13.6 million. The company said margins held up despite foreign exchange pressure and higher hardware-related costs. Management highlighted U.S. market momentum and AI as key growth priorities, citing new customers, major subscription and expansion deals, and about $20 million in expected U.S. deals this year. Cognyte also ended the quarter with $109.2 million in cash, no debt, and continued share repurchases. 2 Recession-Proof Intelligence Stocks to Defend Your Portfolio Cognyte Software (NASDAQ:CGNT) reported a double-digit revenue increase for the first quarter of fiscal 2027 and reaffirmed its full-year outlook, citing continued demand for its investigative analytics platform, higher recurring revenue and progress in the U.S. market. Chief Executive Officer Elad Sharon said the company delivered “a solid start” to the fiscal year, with revenue growth supported by customer activity and “better than expected adoption” of subscription offerings. He said agencies are increasingly seeking tools that can convert fragmented data into operational intelligence as investigations become more complex and time-sensitive. → Palantir’s Drone Tailwind Puts Its Defense AI Story Back in Focus for Investors “Across the world, agencies are under growing pressure to resolve increasingly complex investigations and turn fragmented data into intelligence and intelligence into operational action,” Sharon said. Chief Financial Officer David Abadi said first-quarter revenue was $105.5 million, up $9.9 million, or 10.4%, from the prior-year period. Software revenue rose 26.5% year-over-year to $47.3 million, while software services revenue increased 12.1% to $50.1 million. Professional services revenue declined to $8.2 million from $13.5 million a year earlier, which Abadi attributed mainly to revenue recognition timing. → Best Buy’s AI Laptop Boost Sparks Hope for a BBY Turnaround Total software revenue grew 18.6% year-over-year, faster than overall revenue, reflecting a larger contribution from software in Cognyte’s business mix. Recurring revenue rose 10% to $51.9 million and represented 49.2% of total revenue. Abadi said the growth in recurring revenue was driven by stronger-than-expected subscription adoption. He noted that perpetual deployments remain important to Cognyte’s business because of customer preferences tied to workflow and security requirements, but said the company is seeing a “clear and growing shift” toward subscriptions in parts of its customer base. → 3 Up-and-Coming Stocks That Could Be the Next NVIDIA Cognyte reported non-GAAP gross margin of 72.9%, up 100 basis points from the prior-year quarter. Non-GAAP gross profit increased 12% to $76.9 million. GAAP operating income doubled to $4.4 million from $2.2 million a year earlier, while non-GAAP operating income rose 41.5% to $10.7 million. Adjusted EBITDA increased 31.5% year-over-year to $13.6 million. Non-GAAP earnings per share were $0.03, which Abadi said reflected first-half-weighted tax accruals and foreign exchange-related other expenses. Management said profitability improved even as the company faced macro pressures, including foreign exchange movements and rising hardware-related costs. Abadi said much of the year-over-year increase in operating expenses was due to continued weakness in the U.S. dollar, primarily versus the Israeli shekel. Cognyte reaffirmed its fiscal 2027 revenue outlook of about $448 million, plus or minus 3%, which Abadi said represents approximately 12% growth at the midpoint. The company also maintained its expectations for non-GAAP operating income of about $56 million, adjusted EBITDA of about $68 million and annual non-GAAP EPS of $0.47 at the midpoint of the revenue range. While total revenue guidance was unchanged, Abadi said the company now expects recurring revenue to become a larger contributor to growth and to grow faster than total revenue. The company also continues to expect non-GAAP gross margin of approximately 73.5% for the year, up 50 basis points from the prior year. Cognyte also said it remains on track to meet a revenue target of approximately $500 million for the fiscal year ending Jan. 31, 2028. However, Abadi said the company updated its fiscal 2028 adjusted EBITDA target to approximately 20% to reflect exchange rate changes, while remaining on track on a constant currency basis. At the end of the quarter, total remaining performance obligations were $528.8 million, consisting of $128.9 million in contract liabilities and $399.8 million in backlog. Short-term RPO was $363.4 million, which management said provides visibility into revenue over the next 12 months. Cognyte ended the quarter with $109.2 million in cash and no debt. The company generated $6.5 million from the sale of a minority investment during the quarter. Cash flow from operations was negative $4.7 million, and free cash flow was negative $6.1 million. In response to an analyst question from Taz Koujalgi of Roth Capital Partners, Abadi said the cash flow result reflected foreign exchange dynamics, the timing profile of subscription sales and an inventory build-up to support future revenue. He said inventory increased by $3 million in the quarter and that cash flow is expected to be weighted toward the second half of the year. Cognyte continues to expect cash flow from operations of about $45 million for the full year. The company repurchased about 1 million ordinary shares during the quarter for approximately $8.2 million. Since launching its first repurchase program in November 2024, Cognyte has repurchased about $35 million of shares through the end of the first quarter, out of $60 million authorized across its repurchase programs. Sharon said Cognyte is seeing strong customer engagement globally, including new logos, competitive wins, expansions and upgrades. He highlighted a new three-year subscription agreement valued at more than $20 million and a large expansion deal valued at more than $10 million. In the U.S., Sharon said Cognyte secured several new state and local customers and advanced multiple federal opportunities through proof of concepts and live operational demonstrations. The company expects about $20 million in U.S. deals this year. In response to Koujalgi, Sharon said Cognyte’s confidence in the U.S. market is increasing, citing customer feedback, partner leverage and growing visibility. Sharon also emphasized artificial intelligence as a driver of demand, saying customers want AI and agentic capabilities embedded in operational workflows with governance, oversight and explainability. He said AI helps agencies uncover hidden connections and improve decision-making in mission-critical environments. During the call, Sharon also pointed to financial investigations as a growing area of innovation for Cognyte, saying the company recently introduced capabilities to help agencies track illicit financing across traditional and digital currencies. He cited prior use of Cognyte’s platform by tier 1 military intelligence agencies in EMEA to counter terror financing, which he said resulted in a National Ministry of Defense Innovation Award for operational impact. “We help the people responsible for keeping the world safe do their job faster, more effectively, and with greater confidence in their intelligence,” Sharon said. Cognyte Software Ltd. is a global provider of security analytics solutions that was spun off from NICE Ltd. in early 2021. Headquartered in Israel, the company delivers specialized software and services designed to help government agencies, law enforcement organizations and critical infrastructure operators process and analyze large volumes of data for intelligence and investigative purposes. The company’s core offerings include advanced analytics platforms that aggregate and visualize structured and unstructured data from diverse sources, such as communications metadata, open-source intelligence and sensor feeds. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Cognyte Software Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for June 2026.

Cognyte Software Ltd. (CGNT) came out with quarterly earnings of $0.03 per share, missing the Zacks Consensus Estimate of $0.1 per share. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -70.00%. A quarter ago, it was expected that this company would post earnings of $0.01 per share when it actually produced earnings of $0.1, delivering a surprise of +900%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Cognyte Software, which belongs to the Zacks Internet - Software industry, posted revenues of $105.49 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 0.18%. This compares to year-ago revenues of $95.55 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Cognyte Software shares have added about 23.6% since the beginning of the year versus the S&P 500's gain of 11.2%. While Cognyte Software has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Cognyte Software was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.10 on $109.2 million in revenues for the coming quarter and $0.48 on $448 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Rubrik, Inc. (RBRK), another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on June 4. This company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +80%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Rubrik, Inc.'s revenues are expected to be $366.15 million, up 31.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cognyte Software Ltd. (CGNT) : Free Stock Analysis Report Rubrik, Inc. (RBRK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Reports double-digit revenue growth, and profitability growing significantly faster than revenue Reiterates fiscal 2027 outlook HERZLIYA, Israel, June 03, 2026--(BUSINESS WIRE)--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 months ended April 30, 2026 ("Q1 FYE27"). Financial Summary for Three Months Ended April 30, 2026 Q1 FYE27 Revenue was $105.5 million, up approximately 10.4% compared to the same period last year, reflecting a continuing healthy demand environment. Q1 FYE27 GAAP operating income was $4.4 million, doubling from operating income of $2.2 million in the same period last year. Q1 FYE27 Non-GAAP operating income was $10.7 million, an increase of $3.1 million or 41.5% from operating income of $7.6 million in the same period last year. Q1 FYE27 GAAP Net loss attributable to Cognyte Software Ltd was $3.0 million, compared to $1.0 million in the same period last year primarily driven by foreign exchange losses. Q1 FYE27 Adjusted EBITDA was $13.6 million, compared to $10.3 million in the same period last year, up 31.5% and growing significantly faster than revenue. Balance Sheet and Net Cash Provided by Operating Activities The board of directors remains committed to long-term shareholder value creation and has confidence in the Company’s growth prospects. During Q1 FYE27, the company bought approximately one million ordinary shares for an aggregate purchase price of approximately $8.2 million under the share repurchase program approved by the board of directors in July 2025. Since launching its first repurchase program in November 2024, the Company has repurchased approximately $35 million of shares through the end of Q1 FYE27, out of the $60 million authorized across the Company’s repurchase programs. During the first quarter, our cash position remained strong at $109.2 million, with no debt, reflecting disciplined working-capital management. During the three months ended April 30, 2026, net cash used in operating activities was $4.7 million, compared to net cash provided by operating activities of $1.7 million in the same period last year, primarily driven by accelerated adoption of subscription offerings, FX dynamics and inventory buildup to support future software demands. Management Commentary "The agencies we serve are under more pressure than ever to turn fragmented data into actionable intelligence – and to do it faster than the threats they are facing. That urgency is showing up in our business," said Elad Sharon, Cognyte’s chief executive officer. "Organizations today are facing an increasingly complex threat environment – faster-moving adversaries, exploding data volumes and growing operational pressure. This is driving demand for AI-powered investigative analytics solutions that can help agencies uncover hidden insights and make faster, more informed decisions. During the quarter, we expanded relationships with existing customers, added new logos and continued building momentum in the U.S. market. Reflecting this momentum, we expect to generate approximately $20 million of business in the U.S. this year. We help the people responsible for keeping the world safe do their jobs faster, more effectively and with greater confidence in their intelligence. That mission doesn’t get less relevant – and our results this quarter reflect it." "Our first quarter results reflect the substantial value our differentiated solutions deliver to customers and the operational discipline with which we are managing the business," said David Abadi, Cognyte’s chief financial officer. "As a result of better-than-expected adoption of subscription offerings, we now expect recurring revenue to grow faster than total revenue. Even with the recurring revenue momentum and foreign exchange dynamics, we are maintaining our Fiscal 27 outlook." FYE27 Outlook The company maintained its outlook for the year ending January 31, 2027 ("FYE27" and "Fiscal 2027") which is as follows: Revenue: $448 million, with a range of +/- 3%, which represents approximately 12% year-over-year growth at the midpoint of the range. Adjusted EBITDA: Approximately $68 million at the midpoint of our revenue range, representing approximately 40% year-over-year growth. Non-GAAP Diluted EPS: $0.47 at the midpoint of our revenue range. Additional Financial and Operational Data for the First Quarter Ended April 30, 2026 Q1 FYE27 Total Software revenue, which is the combination of software and software services revenue, increased by $15.3 million, up 18.6%, compared to the same period last year. Q1 FYE27 Software revenue increased by $9.9 million, up 26.5%, compared to the same period last year. The increase was mainly driven by healthy demand for our software solutions. Q1 FYE27 Software services revenue increased by $5.4 million, up 12.1%, compared to the same period last year. Q1 FYE27 Professional services and other revenue decreased by $5.3 million, compared to the same period last year. Quarterly fluctuations in professional services revenue are expected and are primarily a result of revenue recognition timing. Q1 FYE27 Recurring Revenue(1) increased by 10.0% to $51.9 million, compared to the same period last year and was 49.2% of total revenue. The growth was driven by better-than-expected adoption of the Company’s subscription offerings. Q1 FYE27 Non-GAAP Gross profit and margin were $76.9 million and 72.9%, respectively, a significant increase of $8.2 million and 101 bps improvement compared to the same period last year. The increase is primarily driven by scale, operational efficiencies and the value the Company’s solutions deliver to customers. Q1 FYE27 Billings(2) increased by 31.2% to $102.7 million compared to the same period last year. Total Backlog(3) at the end of Q1 FYE27 was $399.8 million and short-term Backlog was $258.1 million. RPO(4) is influenced by factors such as sales cycles, subscription deals, deployment timelines, contract length, renewal timing, and seasonality. RPO continues to reflect the increasing contribution of subscription-based arrangements within the Company’s business mix, and accounts for the proportional annual consumption of multi-year large support contracts. Current levels of RPO support the Company’s growth expectations. Total RPO was $528.8 million at the end of Q1 FYE27 compared to $557.2 million at the end of Q4 FYE26. Short-term RPO at the end of Q1 FYE27 was $363.4 million, providing solid visibility into revenue over the next 12 months. For information about the non-GAAP financial measure or key metric, please see "Supplemental Information About Non-GAAP Financial Measures and Other Key Metrics" at the end of this release. (1) Recurring Revenue – Recurring revenue is comprised primarily of revenue from support contracts as well as revenue from subscription offerings.(2) Billings – Revenue plus the change in contract liabilities, contract assets and unbilled balances.(3) Backlog represents unbilled amounts contracted under contracts deemed certain to be invoiced.(4) RPO, or remaining performance obligations, represents contracted revenue that has not yet been recognized that will be invoiced and recognized as revenue in future periods. Conference Call InformationWe will conduct a conference call today at 8:30 a.m. ET to discuss our results for the three months ended April 30, 2026. 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 at: https://register-conf.media-server.com/register/BI46eb94a3a2964463ba6d991e82057113 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 Software Ltd.Cognyte is a leading software-led technology company, focused on investigative analytics solutions that help customers generate actionable intelligence from large volumes of complex data, across diverse operational domains, in order to enhance public safety and security. Our solutions are used primarily by law enforcement, national security, national and military intelligence agencies, and other organizations to address a wide range of investigative and operational challenges. Drawing on decades of investigative analytics domain expertise, our platforms and solutions enable customers to ingest, fuse and analyze structured and unstructured data from multiple sources, uncover hidden patterns and connections, and make faster, better-informed decisions. Our offerings leverage state-of-the-art Artificial Intelligence (AI), including big data analytics and advanced machine learning, as well as generative and AI-assisted capabilities that enhance user productivity and accelerate investigative workflows, together with proven investigative methodologies, to support retrospective investigations and real time, near real-time and predictive decision making. Hundreds of customers rely on our solutions to accelerate investigations, improve resolution rates and better anticipate, predict and mitigate threats with greater precision. Learn more at www.cognyte.com. About Non-GAAP Financial Measures and Other Key MetricsThis 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 FYE27 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 $23.5 and $25.5 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 $0.6 million. For additional information about our expectations for FYE27, please refer to the Q1 FYE27 conference call we will conduct on June 3, 2026. 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 months ended April 30, 2026, and 2025, respectively, for the GAAP measures excluded from our non-GAAP outlook appear in Table 4 of this press release. Caution About Forward-Looking StatementsThis 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 any future performance and are based solely 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 related to conditions in Israel including conflicts in the Middle East; risks resulting from health crises; 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 limited number of suppliers for certain key components and hardware used in our solutions; risks due to the aggressive competition in all of our markets; risks associated with the implementation and use of artificial intelligence tools and technology, including competitive, technological, regulatory, intellectual property, data protection and cybersecurity risks; 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, and execute on growth or strategic initiatives; risks associated with acquisitions, strategic investments, partnerships or alliances; risks 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 applicable 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 applicable 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 programs; risks associated with different corporate governance requirements applicable to Israeli companies; risks associated with being a foreign private issuer; and other risks set forth in Section 3.D - "Risk Factors" in our latest annual report on Form 20-F for the fiscal year ended January 31, 2026, which was filed with the Securities and Exchange Commission (the "SEC") on March 25, 2026, 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 our 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. Cognyte Software Ltd. and SubsidiariesSupplemental Information About Non-GAAP Financial Measures and Other Key Metrics Non-GAAP Financial MeasuresThe press release includes reconciliations of certain financial measures not prepared in accordance with GAAP, consisting of non-GAAP operating income and operating margins, non-GAAP net income attributable to Cognyte, adjusted EBITDA and adjusted EBITDA margin, non-GAAP diluted net income per share attributable to Cognyte and non-GAAP diluted weighted-average shares used in computing such measure. The tables above include a reconciliation of each non-GAAP financial measure for completed periods presented in this press release to the most directly comparable GAAP financial measure. We believe these non-GAAP financial measures, used in conjunction with the corresponding GAAP measures, provide investors with useful supplemental information about the financial performance of our business by: Facilitating the comparison of our financial results and business trends between periods, by excluding certain items that either can vary significantly in amount and frequency, are based upon subjective assumptions, or in certain cases are unplanned for or difficult to forecast, Facilitating the comparison of our financial results and business trends with other software companies who publish similar non-GAAP measures, and Allowing investors to see and understand key supplementary metrics used by our management to run our business, including for budgeting and forecasting, resource allocation, and compensation matters. We also make these non-GAAP financial measures available because our management believes they provide meaningful information about the financial performance of our business and are useful to investors for informational and comparative purposes. Non-GAAP financial measures should not be considered in isolation as substitutes for, or superior to, comparable GAAP financial measures. The non-GAAP financial measures we present have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP, and these non-GAAP financial measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP financial measures. These non-GAAP financial measures do not represent discretionary cash available to us to invest in the growth of our business, and we may in the future incur expenses similar to or in addition to the adjustments made in these non-GAAP financial measures. Other companies may calculate similar non-GAAP financial measures differently than we do, limiting their usefulness as comparative measures. Our non-GAAP financial measures are calculated by making the following adjustments to our GAAP financial measures: Stock-based compensation expenses. We exclude stock-based compensation expenses related to restricted stock awards, stock bonus programs, bonus share programs, and other stock-based awards from our non-GAAP financial measures. We evaluate our performance both with and without these measures because stock-based compensation is typically a non-cash expense and can vary significantly over time based on the timing, size and nature of awards granted, and is influenced in part by certain factors which are generally beyond our control, such as the volatility of the price of our ordinary shares. In addition, measurement of stock-based compensation is subject to varying valuation methodologies and subjective assumptions, and therefore we believe that excluding stock-based compensation from our non-GAAP financial measures allows for meaningful comparisons of our current operating results to our historical operating results and to other companies in our industry. Restructuring expenses. We exclude restructuring expenses from our non-GAAP financial measures, which include employee termination costs, facility exit costs, certain professional fees, asset impairment charges, and other costs directly associated with resource realignments incurred in reaction to changing strategies or business conditions. All of these costs can vary significantly in amount and frequency based on the nature of the actions as well as the changing needs of our business and we believe that excluding them provides easier comparability of pre- and post-restructuring operating results. Other adjustments. We exclude from our non-GAAP financial measures fair value adjustments related to revenue acquired in a business acquisition, amortization of acquired technology and other acquired intangible assets, acquisition expenses (benefit), separation expenses, business divestiture gain/losses, provision for legal claim, rent expense for redundant facilities, gains/losses on change in fair value of noncontrolling minority investment, gains or losses on sales of property and certain professional fees unrelated to our ongoing operations. Non-GAAP income tax adjustments. We exclude our GAAP provision (benefit) for income taxes from our non-GAAP measures of net income attributable to Cognyte Software Ltd., and instead include a non-GAAP provision for income taxes. Cognyte uses a full-year non-GAAP tax rate to compute the non-GAAP tax provision. This full-year non-GAAP tax rate is based on Cognyte’s annual GAAP income, adjusted to exclude non-GAAP items, as well as the effects of significant non-recurring and period-specific tax items which vary in size and frequency. This annual non-GAAP tax rate is based on an evaluation of our historical and projected profit before tax, taking into account the impact of non-GAAP adjustments, tax law changes, as well as other factors such as our current tax structure, existing tax positions and expected recurring tax incentives. Our GAAP effective income tax rate can vary significantly from year to year as a result of tax law changes, settlements with tax authorities, changes in the geographic mix of earnings including acquisition activity, changes in the projected realizability of deferred tax assets, and other unusual or period-specific events, all of which can vary in size and frequency. We believe that our non-GAAP effective income tax rate removes much of this variability and facilitates meaningful comparisons of operating results across periods. We evaluate our non-GAAP effective income tax rate on an ongoing basis, and it can change from time to time. Our non-GAAP income tax rate can differ materially from our GAAP effective income tax rate. Adjusted EBITDA. Adjusted EBITDA is a non-GAAP measure defined as net income (loss) attributable to non-controlling interest before interest expense, interest income, income taxes, depreciation expense, amortization expense, revenue adjustments, restructuring expenses, acquisition expenses, and other expenses excluded from our non-GAAP financial measures as described above. We believe that adjusted EBITDA is also commonly used by investors to evaluate operating performance between companies because it helps reduce variability caused by differences in capital structures, income taxes, stock-based compensation accounting policies, and depreciation and amortization policies. Other Key MetricsRecurring revenue. Cognyte calculates recurring revenue for a period by combining revenue from initial and renewal support, subscription software licenses, and cloud-based SaaS in certain transactions. Recurring revenue is the portion of our revenue that we believe is likely to be renewed in the future. The recurrence of these revenue streams in future periods depends on a number of factors including contractual periods and customers' renewal decisions. Cognyte believes that recurring revenue provides investors more visibility into our recurring business in the upcoming years and helpful measurement of Cognyte’s potential revenue. Cognyte does not consider recurring revenue to be a non-GAAP financial measure because it is calculated using GAAP revenue. Billings. Cognyte calculates billings for a period by adding changes in contract liabilities, contract assets and unbilled balances in that period to revenue. Cognyte believes that billings help investors better understand sales activity and ongoing business for a particular period, which is not necessarily reflected in revenue. Billings fluctuate from quarter to quarter. Cognyte does not consider billings to be a non-GAAP financial measure because it is calculated using exclusively revenue, contract liabilities, contract assets and unbilled balances, all of which are financial measures calculated in accordance with GAAP. Total Backlog and Short-Term Backlog. Backlog is defined as unbilled amounts contracted under contracts deemed certain to be invoiced and recognized as revenue in future periods. Short-term backlog represents backlog that Cognyte expects to be recognized as revenue within the subsequent 12 months. Cognyte monitors backlog to provide visibility into our future revenue. Cognyte does not consider backlog to be a non-GAAP financial measure because it is calculated using exclusively unbilled contracted amounts. Total Remaining Performance Obligations (RPO) and Short-Term RPO. RPO consist of backlog plus contract liabilities. RPO represents contracted revenue that has not yet been recognized, which includes contract liabilities and non-cancelable amounts that will be invoiced and recognized as revenue in future periods. The majority of our arrangements are for periods of up to three years, with a significant portion being one year or less. The timing and amount of revenue recognition for our RPO is influenced by several factors, including timing of support renewals, revenue recognition for certain solutions that can extend over longer periods of time, delivery under which, for various reasons, may be delayed, modified, or canceled. Therefore, the amount of remaining obligations may not be a meaningful indicator of future results. In some cases, we may decide to cancel outstanding orders and reduce the RPO when there have been extended delays by customers in paying the agreed upon down payments or due to other reasons. Short-term RPO represents RPO that Cognyte expects to be recognized as revenue within the subsequent 12 months. Cognyte monitors RPO to provide visibility into our future revenue. Cognyte does not consider RPO to be a non-GAAP financial measure because it is calculated in accordance with GAAP, specifically under ASC Topic 606. View source version on businesswire.com: https://www.businesswire.com/news/home/20260603039111/en/ Contacts Investor Relations Contact Dean RidlonCognyte Software [email protected]