Verint(VRNT) - 2025 Q4 - Annual Results

Subscription Revenue - Q4 FYE 2025 subscription ARR reached $712 million, reflecting a 5.2% year-over-year growth[6] - For FYE 2026, subscription ARR guidance has been raised to between $760 million and $768 million, indicating an 8% year-over-year growth[11] - Subscription ARR increased to $711,753,000 for the year ended January 31, 2025, representing a year-over-year growth of 5.2%[23] - Bundled SaaS ARR was $328 million, showing a 16.5% year-over-year increase[6] - Bundled SaaS ARR reached $327,961,000, reflecting a year-over-year increase of 16.5%[24] - SaaS ACV from new deals amounted to $32 million, representing a 30.3% growth year-over-year[6] - SaaS ACV from new deals for the three months ended January 31, 2025, was $32,482,000, a 30.3% increase from $24,920,000 in 2024[25] Financial Performance - Cash generation for Q4 was $913 million, exceeding guidance by $8 million[4] - Cash contribution for Q4 was $228 million, also surpassing guidance by $16 million[4] - Revenue for Q4 was reported at $254 million, impacted by unbundled SaaS revenue dynamics[6][7] - Total revenue for the three months ended January 31, 2025, was $253,546,000, a decrease of 4.2% compared to $265,109,000 for the same period in 2024[21] - Net income for the year ended January 31, 2025, was $83,099,000, significantly up from $39,634,000 in 2024[61] - Total assets increased to $2,290,049,000 as of January 31, 2025, from $2,226,424,000 in 2024[59] - Total stockholders' equity rose to $889,274,000 as of January 31, 2025, compared to $832,666,000 in 2024[59] Earnings and Margins - Non-GAAP diluted EPS for Q4 was $0.99, while GAAP diluted EPS was $0.45[6] - Operating income for the year ended January 31, 2025, was $106,387,000, compared to $68,185,000 in 2024[21] - GAAP operating income for the three months ended January 31, 2025, was $46,324,000, representing an increase from $40,207,000 in the same period of 2024, with a GAAP operating margin of 18.3% compared to 15.2%[35] - Non-GAAP operating income for the year ended January 31, 2025, was $224,436,000, compared to $222,646,000 in 2024, with a non-GAAP operating margin of 24.7%[35] - Non-GAAP gross profit for the year ended January 31, 2025, was $663,949,000, with a non-GAAP gross margin of 73.0%[31] Cash Flow and Investments - Free cash flow for the year ended January 31, 2025, was $129,881,000, an increase from $124,905,000 in 2024[43] - Cash flows from operating activities provided $157,447,000 for the year ended January 31, 2025, compared to $150,642,000 in 2024[61] - The company reported a net cash used in investing activities of $84,041,000 for the year ended January 31, 2025, compared to $37,379,000 in 2024[61] Expenses and Taxation - Research and development expenses for the three months ended January 31, 2025, were $39,481,000, representing 15.6% of GAAP revenue[32] - Selling, general and administrative expenses for the three months ended January 31, 2025, were $97,143,000, accounting for 38.3% of GAAP revenue, down from 40.9% in 2024[33] - The company reported a GAAP provision for income taxes of $15,249,000 for the year ended January 31, 2025, with a non-GAAP effective income tax rate of 12.5%[37] Debt and Capital Structure - Total gross debt as of January 31, 2025, was $415,000,000, with net debt amounting to $197,777,000[42] - Net Debt is calculated as the sum of long-term and short-term debt minus cash and cash equivalents, providing insight into the company's capital structure and financial leverage[79] Definitions and Metrics - Adjusted EBITDA is defined as net income before interest, taxes, depreciation, amortization, and other specified expenses, providing a clearer view of operating performance[78] - Free Cash Flow is defined as GAAP cash from operating activities minus capital expenditures, indicating the cash available for investment and financing activities[80] - Subscription Annual Recurring Revenue (ARR) represents the annualized run-rate value of active subscription agreements, helping to measure the performance of subscription contracts[87] - Cash Generation combines ARR and nonrecurring revenue, providing an estimate of the cash-producing potential of the business[89] - Cash Contribution is defined as Cash Generation minus cost of revenue and operating expenses, assessing the effectiveness of revenue conversion into cash[89]