Verint(VRNT) - 2026 Q1 - Quarterly Report

Financial Performance - Total revenue for the three months ended April 30, 2025, was $208,097,000, a decrease of 5.0$221,277,000 for the same period in 2024[19]. - Net income attributable to Verint Systems Inc. for the three months ended April 30, 2025, was $1,622,000, down 89.4$15,241,000 in the same period of 2024[19]. - Operating income decreased significantly to $5,072,000 for the three months ended April 30, 2025, compared to$24,445,000 for the same period in 2024, reflecting a decline of 79.3%[19]. - Cash flows from operating activities were $26,323,000 for the three months ended April 30, 2025, a decrease of 56.5$60,717,000 in the same period of 2024[26]. - Comprehensive income attributable to Verint Systems Inc. was $35,744,000 for the three months ended April 30, 2025, compared to$7,962,000 in the same period of 2024, indicating a significant increase[21]. - Net income for the three months ended April 30, 2025, was $1.9 million, a significant decrease from$15.4 million in the same period of 2024[53]. - The effective income tax rate for the three months ended April 30, 2025, was 57.5% on pretax income of $4.5 million, compared to an effective rate of 34.1$23.3 million for the same period in 2024[138][139]. Assets and Liabilities - Total current assets decreased from $578.8 million as of January 31, 2025, to$516.3 million as of April 30, 2025, representing a decline of approximately 10.8%[17]. - Cash and cash equivalents decreased from $215.7 million to$180.9 million, a reduction of about 16.1%[17]. - Accounts receivable decreased from $203.1 million to$172.4 million, reflecting a decrease of approximately 15.1%[17]. - Total liabilities increased from $964.5 million to$925.7 million, a decrease of about 4.0%[17]. - Long-term debt decreased from $312.8 million to$0, indicating a significant reduction in debt obligations[17]. - Total stockholders' equity increased from $889.3 million to$896.5 million, an increase of approximately 0.2%[17]. - Total debt as of April 30, 2025, was $413.1 million, with no long-term debt reported[83]. Revenue Breakdown - Total revenue for the three months ended April 30, 2025, was$208.1 million, a decrease of 5.9% from $221.3 million in the same period of 2024[45]. - Recurring revenue for the three months ended April 30, 2025, was$173.6 million, slightly up from $173.5 million in 2024, with total SaaS revenue increasing to$147.5 million from $141.0 million[45]. - Nonrecurring perpetual revenue decreased to$17.0 million from $24.9 million year-over-year, while nonrecurring professional services and other revenue fell to$17.5 million from $22.8 million[45]. - Revenue in the Americas totaled$143.6 million, down 11.0% from $161.3 million in the prior year[187]. - EMEA revenue increased to$43.1 million, up 9.0% from $39.3 million in the previous year[187]. - APAC revenue was$21.4 million, a slight increase from $20.7 million year-over-year[187]. Expenses and Costs - Research and development expenses increased to$40,641,000 for the three months ended April 30, 2025, up from $36,730,000 in the same period of 2024, reflecting a growth of 8.2$15.467 million, a decrease from $18.021 million in the same period of 2024[166]. - Cash paid for interest in Q1 2025 was$1,952,000, down from $2,210,000 in Q1 2024, a decrease of about 11.7$50.271 million, including $38.186 million in cash and$11.786 million in contingent consideration[65][70]. - The acquisition of Cogito resulted in the recognition of $27.1 million in goodwill, with identifiable intangible assets valued at$25.8 million[67][70]. - The company completed the acquisition of a privately-held company for a SAFE investment of approximately $1.7 million during the three months ended April 30, 2024[155]. Stock and Shareholder Information - The company repurchased and retired 2,532,000 shares of common stock during the three months ended April 30, 2025, at a cost of$42,324,000[23]. - A new stock repurchase program was authorized for up to $200,000,000 from August 29, 2024, to August 29, 2026[129]. - The maximum number of shares of common stock that could be issued upon conversion of the outstanding shares of Preferred Stock was approximately 9.6 million shares as of April 30, 2025[114]. - The Series A Preferred Stock has a conversion price adjusted to$36.38 per share as of April 30, 2025, reflecting a significant premium over its initial conversion price[113]. Financial Covenants and Debt - The company issued $315.0 million in 0.25$300.0 million to $500.0 million, maturing on March 25, 2030, with an interest rate of 5.82% as of April 30, 2025[94][96]. - The company has a financial covenant requiring a Leverage Ratio of no greater than 4.50 to 1 for the Revolving Credit Facility[98]. Risks and Future Outlook - The company highlighted risks related to technological advancements and competition in the market, particularly in AI and SaaS strategies[10]. - The company continues to evaluate the impact of new accounting standards, including ASU No. 2024-03 and ASU 2024-04, which will affect future disclosures and financial reporting[40][41].