Core Insights - Cognyte Software Ltd. will showcase its latest intelligence solutions for homeland security at Milipol Paris 2025, scheduled for November 18-21, 2025 [1][13]. Company Overview - Cognyte is a global leader in software-driven technology for investigative analytics, focusing on solutions that enable law enforcement and national security agencies to generate actionable intelligence [6]. - The company leverages advanced technologies such as Artificial Intelligence (AI), big data analytics, and machine learning to enhance decision-making and operational efficiency [6]. Event Details - The Milipol Paris event is recognized as a leading platform for homeland security and safety, organized under the patronage of the French Ministry of Interior, with over 30,000 visitors and 1,100 exhibitors expected [5]. - Cognyte will present multiple workshops during the event, focusing on topics such as border intelligence and financial crime investigations [7]. Product Offerings - Cognyte's solutions aim to help security, defense, and law enforcement agencies convert fragmented data into actionable intelligence, addressing evolving security threats [2][4]. - The company emphasizes the importance of advanced capabilities for border security, mission planning, and disrupting financial crime and terror financing [4]. Recent Developments - Cognyte recently secured a deal valued at approximately $5 million with a Tier-1 law enforcement agency in the EMEA region, indicating strong demand for its solutions [9].

Core Insights - Cognyte Software Ltd. will showcase its investigative analytics solutions for law enforcement agencies at the IACP 2025 conference in Denver, Colorado from October 18-21, 2025 [1][9][10] Company Overview - Cognyte is a leading software-driven technology company focused on data processing and investigative analytics, enabling customers to generate actionable intelligence for enhanced public safety [5] - The company leverages advanced technologies such as Artificial Intelligence (AI), big data analytics, and machine learning to help law enforcement and national security agencies navigate complex threat landscapes [5] Event Details - The IACP 2025 conference will feature demonstrations of Cognyte's latest advancements in AI-driven data analysis, blockchain de-anonymization, and operational intelligence solutions [2][4] - Attendees can visit Cognyte at Booth 3423 during exhibit hall hours [3] Industry Context - Law enforcement agencies are facing increasing data challenges and fragmented tools, while criminals are adopting AI and anonymized blockchain technologies to enhance their tactics [4] - AI-powered analytics specifically designed for law enforcement provide investigators with the operational intelligence necessary to counter new threats and expedite case resolutions [4]

Group 1 - The article suggests that when the stock market appears overvalued, investors should consider smaller-cap companies instead of large-cap winners [1] - Gary Alexander has extensive experience in technology sectors, both on Wall Street and in Silicon Valley, which informs his investment strategies [1] - Alexander has been a contributor to Seeking Alpha since 2017 and has been featured in various publications, indicating his influence in the investment community [1]

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclosures and disclaimers related to investment positions and advice [1][2]. Group 1 - There is no stock, option, or similar derivative position held by the analyst in any mentioned companies, nor are there plans to initiate such positions in the next 72 hours [1]. - The article expresses personal opinions of the author and does not reflect the views of Seeking Alpha as a whole [2]. - Seeking Alpha clarifies that past performance is not indicative of future results and does not provide specific investment recommendations [2].

Financial Data and Key Metrics Changes - Revenue for Q2 grew by approximately 16% year-over-year to about $98 million, with software revenue increasing by 35.9% year-over-year to $36.6 million [5][17] - Non-GAAP gross profit increased by about 17% year-over-year, with a gross margin of 72.1%, expanding by 81 basis points year-over-year [5][19] - Adjusted EBITDA for the quarter was approximately $11 million, representing a growth of about 33% compared to the previous year [5][20] - Cash flow from operating activities was negative $6 million, primarily due to expected seasonal expenses [5][22] - For the fiscal year ending January 31, 2026, the company expects revenue of approximately $397 million, representing about 13% year-over-year growth [15][24] Business Line Data and Key Metrics Changes - Total software revenue for the quarter was approximately $83.3 million, representing 85.5% of total revenue [17] - Professional services revenue in Q2 was $14.2 million, an increase of $2 million over last year [18] - Recurring revenue for Q2 was $47.4 million, representing 48.7% of total revenue [18] Market Data and Key Metrics Changes - The U.S. remains a cornerstone of the growth strategy, with ongoing efforts to expand presence and strategic partnerships [10][11] - Total remaining performance obligations (RPO) at the end of Q2 was $574.5 million, up from $567.7 million at the same period last year [23] - Q2 billings were $93 million, an increase of about 20% compared to the same period last year [24] Company Strategy and Development Direction - The company aims for $500 million in revenue by the fiscal year ending January 31, 2028, with gross margins of about 73% and adjusted EBITDA margins above 20% [14] - The technology stack is built on three layers: signal processing, insight mining, and investigative analytics, focusing on operational intelligence solutions [8][9] - The company is actively preparing for key upcoming conferences to showcase capabilities and strengthen relationships [13] Management's Comments on Operating Environment and Future Outlook - Management noted that the global environment is marked by heightened security challenges, creating sustained demand for advanced intelligence solutions [7][10] - The company is confident in achieving its financial targets due to growing market needs and proven technology leadership [14][15] - Management acknowledged temporary challenges in U.S. agency procurement but remains optimistic about future growth [11][12] Other Important Information - The class action lawsuit was fully dismissed with no additional appeals possible [27] - The company completed a share repurchase program, repurchasing about 2.1 million ordinary shares for a total of $20 million [22] Q&A Session Summary Question: Can you help us think through your updated assumptions around the U.S. federal environment? - Management indicated that while the U.S. represents a significant opportunity, it currently contributes a small portion of the business, with expectations for growth over time [29][30] Question: Are budgets starting to open up at all? - Management acknowledged headwinds in U.S. budgets but noted successful customer acquisitions and follow-on orders [33][34] Question: How much of the growth came from existing customers versus new products? - Growth primarily comes from existing customers, with new customers starting small and growing over time [41][42] Question: What is driving the displacement of incumbents? - The company attributes displacement to advanced technology, R&D investments, and successful proof-of-concept demonstrations [44][46] Question: How is the overall deal pipeline turning versus six to twelve months ago? - Management reported a healthy demand environment, with increasing traction from existing customers seeking modernization [63][64]

Financial Data and Key Metrics Changes - Revenue for Q2 increased by approximately 16% year-over-year to about $98 million, with non-GAAP gross profit rising by about 17% year-over-year [5][17] - Adjusted EBITDA for the quarter was approximately $11 million, reflecting a growth of about 33% compared to Q2 last year [5][20] - Non-GAAP gross margin for the quarter was 72.1%, expanding by 81 basis points year-over-year [19] - GAAP net income for the quarter was $2.7 million, compared to a loss of $0.9 million in Q2 last year [20] Business Line Data and Key Metrics Changes - Software revenue was $36.6 million, an increase of 35.9% year-over-year, while software services revenue was $46.7 million, up $1.4 million from last year [17] - Total software revenue for the quarter was approximately $83.3 million, representing 85.5% of total revenue [17] - Professional services revenue in Q2 was $14.2 million, an increase of $2 million over last year [18] Market Data and Key Metrics Changes - Recurring revenue for Q2 was $47.4 million, representing 48.7% of total revenue [18] - Total remaining performance obligations (RPO) at the end of Q2 was $574.5 million, compared to $567.7 million at the same period last year [23] - Q2 billings were $93 million, an increase of about 20% versus the same period last year [24] Company Strategy and Development Direction - The company aims for $500 million in revenue by the fiscal year ending January 31, 2028, with gross margins of about 73% and adjusted EBITDA margins above 20% [14] - The U.S. market remains a key focus for growth, with ongoing investments to expand presence and partnerships [10][11] - The company is actively preparing for key upcoming conferences to showcase capabilities and strengthen relationships [13] Management's Comments on Operating Environment and Future Outlook - Management noted that the global environment is marked by heightened security challenges, creating sustained demand for advanced intelligence solutions [7] - The company expressed confidence in achieving updated guidance for the fiscal year ending January 31, 2026, expecting revenue of approximately $397 million, representing about 13% year-over-year growth [15][25] - Management highlighted the importance of innovation and operational execution in driving long-term growth and profitability [14][27] Other Important Information - The company completed a share repurchase program, repurchasing about 2.1 million ordinary shares for a total of $20 million [22] - The class action lawsuit was fully dismissed with no additional appeals possible [27] Q&A Session Summary Question: Can you help us think through your updated assumptions around the U.S. federal environment? - Management indicated that while the U.S. presents a significant opportunity, it currently represents a small portion of the business, and they do not rely heavily on it for short-term guidance [29][30] Question: How are conversations compared to expectations regarding U.S. budgets? - Management acknowledged budget headwinds but noted successful customer acquisitions and strong POCs, indicating a positive long-term outlook [33][34] Question: How much of the growth came from existing customers versus new products? - Management stated that most growth comes from existing customers, driven by data capacity expansions and functionality upgrades [41][42] Question: What is driving the displacement of incumbents in the market? - Management highlighted the importance of advanced technology and analytics, which allow customers to stay ahead of sophisticated adversaries [44][45] Question: How is the overall deal pipeline turning compared to 6-12 months ago? - Management reported a healthy demand environment, with increasing traction from existing customers seeking to modernize their solutions [63][64]

Financial Data and Key Metrics Changes - Revenue for Q2 2026 grew approximately 16% year-over-year to about $98 million, with non-GAAP gross profit increasing by about 17% year-over-year [5][18] - Adjusted EBITDA for the quarter was approximately $11 million, reflecting a growth of about 33% compared to Q2 last year [5][21] - Cash flow from operating activities was negative $6 million, primarily due to expected seasonal expenses [5][23] - Non-GAAP gross margin for the quarter was 72.1%, expanding by 81 basis points year-over-year [19][26] Business Line Data and Key Metrics Changes - Software revenue was $36.6 million, an increase of 35.9% year-over-year, while software services revenue was $46.7 million, up $1.4 million from last year [18] - Total software revenue for the quarter was approximately $83.3 million, representing 85.5% of total revenue [18] - Professional services revenue in Q2 was $14.2 million, an increase of $2 million over last year [19] - Recurring revenue for Q2 was $47.4 million, representing 48.7% of total revenue [19] Market Data and Key Metrics Changes - Total remaining performance obligations (RPO) at the end of Q2 was $574.5 million, up from $567.7 million at the same period last year [24] - Short-term RPO at the end of Q2 increased to $355 million, providing solid visibility into revenue over the next 12 months [24] Company Strategy and Development Direction - The company aims for $500 million in revenue by the fiscal year ending January 31, 2028, with gross margins of about 73% and adjusted EBITDA margins above 20% [15] - The U.S. remains a key growth strategy, with ongoing efforts to expand presence and strategic partnerships, including an alliance with LexisNexis Risk Solutions [12][15] - The company is focused on deepening relationships with existing customers, winning new customers, and expanding its footprint in the U.S. market [15][26] Management's Comments on Operating Environment and Future Outlook - Management noted that the global environment is marked by heightened security challenges, creating an urgent demand for advanced intelligence solutions [8][10] - The company expressed confidence in achieving its updated guidance for the fiscal year ending January 31, 2026, expecting revenue of approximately $397 million, representing about 13% year-over-year growth [16][25] - Management highlighted the importance of innovation and customer feedback in driving long-term growth and profitability [11][15] Other Important Information - The class action lawsuit was fully dismissed with no additional appeals possible [27] - The company completed a share repurchase program, repurchasing about 2.1 million ordinary shares for a total of $20 million [23] Q&A Session Summary Question: Can you help us think through your updated assumptions around the U.S. federal environment? - Management indicated that while the U.S. presents a significant opportunity, it currently represents a small portion of the business, and they are not heavily relying on it for short-term guidance [30][31] Question: How are conversations compared to expectations regarding U.S. budgets? - Management acknowledged budget headwinds but noted successful acquisitions of new state and local customers and strong POCs [33][35] Question: How much of the growth came from existing customers versus data growth? - The majority of growth is driven by existing customers, with new customers starting small and growing over time [41][42] Question: What is driving the displacement of incumbents? - The company attributes displacement to advanced technology, R&D investments, and the ability to provide superior analytics and insights [44][46] Question: How is the overall deal pipeline turning versus six to twelve months ago? - Management reported a healthy demand environment, with increasing pressure on customers to modernize solutions and deal with more data [60][66]

Q2 FYE26 Financial Highlights - Revenue for Q2 FYE26 reached $97.5 million, a 15.5% year-over-year increase[6, 8] - Adjusted EBITDA for Q2 FYE26 was $11.0 million, a 33% year-over-year increase[7, 8] - Non-GAAP operating income nearly doubled year-over-year to $8 million[27] - GAAP operating income was $2.7 million, compared to a loss of $1.4 million in the same quarter last year[5, 27] - GAAP Net income of $2.7M vs Net loss of $0.9M last year[5, 27] - Recurring Revenue of $47.4M or about 49% of total revenue[27] - Negative cash flow from operations of approximately $6 million[8, 27] FYE26 Outlook - The company anticipates revenue of approximately $397 million for FYE26, representing a 13% year-over-year growth[18, 35, 36] - Adjusted EBITDA is projected to be around $45 million, a 55% year-over-year increase[18, 38]

Summary of Cognite Software (CGNT) FY Conference Call Company Overview - **Company**: Cognite Software (CGNT) - **Industry**: Security Software - **Focus**: Providing solutions for security agencies to enhance decision-making and investigation capabilities [1][2] Key Points Industry Context - The global security environment is increasingly complex, with over 70% of organized crime groups operating across multiple countries [4] - The blurring lines between terrorism and organized crime present significant risks, with damages exceeding $2 trillion annually [5] Company Solutions - Cognite's solutions aim to enhance the speed, accuracy, and success rate of investigations for security agencies [6] - The company serves various customers, including law enforcement, military intelligence, and national security agencies [7][8] - Key challenges for customers include managing vast amounts of data, sophisticated adversaries, and the need for real-time intelligence [9][10] Technology and Product Offering - Cognite employs a three-layer technology stack: signal processing, data analytics, and actionable intelligence [14][16] - The company utilizes AI and machine learning to improve efficiency and uncover hidden insights [20][21] - Solutions are primarily deployed on-premises due to data sensitivity, but the technology is cloud-ready [36][52] Financial Targets - Cognite aims to achieve $500 million in revenue by fiscal 2028, with a gross margin target of 73% and adjusted EBITDA exceeding 20% [23] Customer Engagement - The company maintains strong relationships with customers, often involving them in product development and feedback [20][22] - Cognite hosts global intelligence summits to engage with customers and understand their needs [22] Market Strategy - The sales cycle for Cognite's solutions ranges from two quarters to six to eight quarters, depending on the complexity of the deployment [43][44] - The company offers flexible pricing based on data capacity and functionality, with deals ranging from hundreds of thousands to tens of millions of dollars [55][56] Competitive Landscape - The market is fragmented, with various competitors depending on geography and use case [60] - Cognite is transitioning customers from in-house solutions to its offerings, highlighting the challenges of keeping pace with rapidly evolving technology [61] Future Outlook - Cognite plans to expand its presence in the U.S. market and explore additional market segments beyond security agencies [57][59] - The company aims to maintain its leadership position by continuously innovating and enhancing its technology [58][59] Additional Insights - Cognite's solutions have a proven track record of saving lives and preventing financial damage [25] - The company emphasizes the importance of domain expertise combined with technology to effectively address customer needs [19][20]

Group 1 - Cognyte Software Ltd. (NASDAQ: CGNT) reported a satisfactory quarter, with results in line with the previous year and no significant negative developments [2] - The company's Remaining Performance Obligations (RPOs) are increasing, indicating promising future revenues [2] - The Value Lab, an investment group, focuses on long-only value ideas and aims for a portfolio yield of approximately 4% [1][2] Group 2 - The Valkyrie Trading Society consists of analysts who share high-conviction investment ideas that are expected to yield non-correlated and substantial returns in the current economic climate [3]