NetScout(NTCT) - 2025 Q4 - Annual Results

Revenue Performance - Total revenue for Q4 FY25 was $205.0 million, a slight increase from $203.4 million in Q4 FY24[5] - Product revenue for Q4 FY25 was $89.5 million, approximately 44% of total revenue, compared to $89.4 million in Q4 FY24[6] - Service revenue for Q4 FY25 was $115.5 million, approximately 56% of total revenue, compared to $114.0 million in Q4 FY24[7] - Full year FY25 total revenue was $822.7 million, down from $829.5 million in FY24[12] - The company anticipates FY26 revenue in the range of $825 million to $865 million[16] - Total revenue for the three months ended March 31, 2025, was $204.987 million, a slight increase from $203.443 million in the same period of 2024[28] - Revenue for the three months ended March 31, 2025, was $204.987 million, a slight increase from $203.443 million in the same period of 2024[32] - FY'25 revenue is reported at $822.7 million, with FY'26 projected revenue between $825 million and $865 million[38] Profitability and Income - GAAP income from operations for Q4 FY25 was $19.9 million, a significant improvement from a loss of $37.0 million in Q4 FY24[8] - Non-GAAP income from operations for Q4 FY25 was $47.3 million, with a non-GAAP operating margin of 23.1%, compared to $39.0 million and 19.2% in Q4 FY24[8] - Non-GAAP net income for FY25 was $160.4 million, or $2.22 per share, compared to $159.1 million, or $2.20 per share, in FY24[13] - Net income for the three months ended March 31, 2025, was $18.617 million, a recovery from a net loss of $32.419 million in the same period of 2024[28] - Basic net income per share for the three months ended March 31, 2025, was $0.26, compared to a loss of $0.46 per share in the same period of 2024[28] - Non-GAAP Income from Operations for the twelve months ended March 31, 2025, was $195.115 million, up from $187.052 million in the previous year, indicating a growth of 4.4%[32] - Non-GAAP Net Income for the twelve months ended March 31, 2025, was $160.426 million, slightly up from $159.110 million in the previous year[32] - GAAP net loss (GAAP) for FY25 was $366.9 million, or $(5.12) per share, compared to a net loss of $147.7 million, or $(2.07) per share, in FY24[12] - GAAP net income (loss) per share (diluted) for FY'25 is $(5.12), with FY'26 expected to be between $1.07 and $1.22[38] - Non-GAAP net income per share (diluted) for FY'25 is $2.22, with FY'26 projected between $2.25 and $2.40[38] Expenses and Adjustments - Research and development expenses for the three months ended March 31, 2025, were $36.737 million, down from $43.558 million in the same period of 2024[28] - Share-based compensation expense for the three months ended March 31, 2025, totaled $14.199 million, down from $16.146 million in the same period of 2024[35] - Total adjustments for FY'25 amount to $563.8 million, with FY'26 adjustments expected to be around $110 million[38] - Amortization of intangible assets for FY'25 is $50.4 million, with FY'26 expected to be around $47 million[38] - Restructuring charges for FY'25 are reported at $20.5 million, with FY'26 expected to be approximately $1 million[38] Balance Sheet and Cash Flow - Cash, cash equivalents, and marketable securities increased to $491.473 million as of March 31, 2025, from $423.133 million as of March 31, 2024[30] - Total assets decreased to $2.186 billion as of March 31, 2025, from $2.595 billion as of March 31, 2024[30] - Total liabilities decreased to $626.183 million as of March 31, 2025, from $703.237 million as of March 31, 2024[30] Operational Improvements - GAAP Operating Margin improved to 9.7% for the three months ended March 31, 2025, compared to a negative margin of (18.2)% in the same period of 2024[32] - Non-GAAP EBITDA from Operations for the three months ended March 31, 2025, was $50.286 million, representing 24.5% of revenue, compared to 21.1% in the same period of 2024[37] - The company reported a GAAP Income (Loss) from Operations of $19.886 million for the three months ended March 31, 2025, compared to a loss of $(36.976) million in the same period of 2024[36] - NETSCOUT enhanced its Arbor Threat Mitigation System with additional AI/ML functionality to better combat DDoS attacks, which have increased by 55% over the past four years[16] - The company remains focused on returning to revenue growth and investing in innovation despite broader economic uncertainties[24] Future Projections - GAAP net income is expected to be between $80 million and $91 million for FY'26[38] - Non-GAAP net income for FY'26 is projected between $168 million and $179 million[38] - Average weighted shares outstanding (diluted GAAP) for FY'25 is 71.6 million, projected to be around 74 million to 75 million for FY'26[38] - Average weighted shares outstanding (diluted Non-GAAP) for FY'25 is 72.2 million, with FY'26 expected to be around 74 million to 75 million[38]