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]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 increased by approximately 16% year over year to $95.5 million [7] - Non-GAAP gross profit rose by about 17% year over year [7] - Adjusted EBITDA for the quarter was approximately $10.3 million, more than double the $5 million generated in Q1 last year [19] - Non-GAAP operating income was $7.6 million, over four times higher than the $1.8 million generated in Q1 last year [19] - Cash flow from operations was approximately $1.7 million, with negative free cash flow of $2.5 million [20] Business Line Data and Key Metrics Changes - Software revenue was $37.4 million, an increase of $5.9 million or 19% year over year [16] - Total software revenue for the quarter was approximately $82 million, representing about 86% of total revenue [16] - Professional service revenue in Q1 was $13.5 million, an increase of $6.6 million over last year [17] - Recurring revenue for Q1 was $47.2 million, representing 49% of total revenue [18] Market Data and Key Metrics Changes - Total remaining performance obligations (RPO) at the end of Q1 was $597.8 million, up $52 million versus the end of fiscal 2025 [22] - Short-term RPO increased to $346.9 million, providing solid visibility into revenue over the next twelve months [24] Company Strategy and Development Direction - The company is focused on expanding its presence in the U.S. market through the acquisition of GroupSense, a cyber threat intelligence company [12][21] - The strategic priorities include enhancing operational agility and ensuring customers can respond to emerging threats [10][15] - The company aims to drive long-term growth and expand profitability through innovation and strong customer engagement [13][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in healthy demand and continued validation of technology through customer wins [13] - The company updated its guidance for fiscal 2026, expecting revenue of approximately $395 million, representing about 13% year-over-year growth [25] - Management noted that the demand environment remains favorable, with ongoing customer engagement and positive feedback across the portfolio [28] Other Important Information - The company executed a share repurchase program, buying about 952,000 ordinary shares for approximately $9 million [20] - The GroupSense acquisition closed on May 20, 2025, for approximately $4 million in cash, with an earnout of up to $5 million contingent on performance targets [21] Q&A Session Summary Question: How did the quarter itself play out versus plan? - Management indicated that Q1 top line came a little ahead of expectations, with strong demand and customer traction [32] Question: Why isn't the recent contract value impacting fiscal 2026 to a greater extent? - Management explained that some large deals were already included in guidance, and the deployment of a significant subscription deal is planned for Q1 fiscal 2027 [35] Question: What is the revenue impact of the GroupSense acquisition? - The acquisition is expected to add approximately $3 million to the top line, with a breakeven business model [38]

Financial Data and Key Metrics Changes - The company reported a revenue growth of 13% year-over-year in Q4, reaching $94.5 million, and a full-year revenue increase of approximately 12% to $351 million [11][12][27] - Non-GAAP gross profit for Q4 increased by 17% year-over-year, while full-year gross profit grew by approximately 15% [11][12][29] - Adjusted EBITDA for Q4 was over $9 million, representing a 114% year-over-year growth, and for the full year, adjusted EBITDA reached $29 million, more than three times the previous fiscal year [12][30] Business Line Data and Key Metrics Changes - Total software revenue for the full year was $306.7 million, accounting for about 87% of total revenue, with recurring revenue at $186.6 million, representing 53% of total revenue [27] - In Q4, software revenue was $37.4 million, and software services revenue was $45.9 million, contributing to a total software revenue of $83.3 million [33] - Recurring revenue in Q4 reached $47.3 million, or 50% of total revenue, compared to $42.9 million in the same period last year [35] Market Data and Key Metrics Changes - Geographic revenue mix for the year was 55% from EMEA, 31% from APAC, and 14% from the Americas, with a noted decline in revenue from the Americas region [27][28] - The company added over 60 new customers across multiple regions during the year, doubling the number from the previous fiscal year [15] Company Strategy and Development Direction - The company aims to drive growth through new advanced capabilities, deepening customer relationships, and expanding market reach, particularly in the U.S. federal law enforcement market [17][18] - The strategy includes significant investments in sales and marketing in the U.S. to penetrate the market further and enhance brand awareness [79][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the U.S. market's potential despite current policy uncertainties, highlighting ongoing engagement with federal agencies [56][58] - For fiscal '26, the company expects revenue of approximately $392 million, representing about 12% year-over-year growth, with gross profit anticipated to grow faster than revenue [17][44] Other Important Information - The company ended the year with a strong balance sheet, including $113.3 million in cash and no debt, and robust deferred revenue of $130.3 million [31][32] - The company initiated a stock repurchase program, buying approximately 586,000 shares for about $5.3 million [32] Q&A Session Summary Question: What are the demand trends in the U.S. market? - Management believes the U.S. presents a good opportunity, with ongoing investments to improve market reach and positive engagement with federal agencies [56][58] Question: Are sales cycles extending due to current market conditions? - Sales cycles in the U.S. are longer due to the penetration mode, but management does not anticipate a negative impact from current unrest [61][62] Question: What are the U.S. demand drivers compared to international markets? - Demand drivers are similar globally, focusing on criminal activities, with an increasing emphasis on border control in the U.S. [74][76] Question: What investments are being made to accelerate sales cycles in the U.S.? - The company is hiring local sales teams, increasing marketing efforts, and expanding partnerships to enhance sales cycles [79][81] Question: What should be expected regarding long-term growth models? - Management indicated that the business fundamentals are healthy, with expectations for continued profitability and growth, but specific long-term targets will be discussed at the upcoming Investor Day [84][86]