{"success":true,"data":{"pressRelease":{"id":"138946","rtpr_id":"nBw93F1GCa-20260909","ticker":"CGNT","exchange":"NASDAQ","all_tickers":["CGNT"],"title":"Cognyte Reports Strong Second Quarter Results with Accelerating Software Growth and Expanding Profitability","author":"Business Wire","published_at":"2026-09-09T11:30:00.717Z","article_body":"Cognyte Reports Strong Second Quarter Results with Accelerating Software\nGrowth and Expanding Profitability\n\nRevenue grew 12% to $109.2 million; adjusted EBITDA grew 35.7% to $14.9\nmillion; non-GAAP diluted EPS nearly doubled to $0.15; total software revenue\ngrew 21% and recurring revenue grew 18%\n\nThe Company reiterates its FYE27 outlook and remains on track to achieve its\nFYE28 targets\n\nCognyte Software Ltd.\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.cognyte.com%2F&esheet=54600414&newsitemid=20260909407419&lan=en-US&anchor=Cognyte+Software+Ltd.&index=1&md5=1b66240b4884d85a6836201e6f89d715)\n(NASDAQ: CGNT) (the “Company,” “Cognyte,” “we,” “us” and\n“our”), a global leader in AI-powered investigative analytics solutions,\ntoday announced results for the three and six months ended July 31, 2026 (\"Q2\nFYE27\").\n\nFinancial Summary for Three Months Ended July 31, 2026\n\n\n * Q2 FYE27 revenue was $109.2 million, up approximately 12.0% compared with the\nsame period last year, reflecting consistent demand for the Company’s\nsoftware.\n\n * Q2 FYE27 total software revenue, which is the combination of software and\nsoftware services revenue, increased 20.9% to $100.8 million and represented\nmore than 92% of total revenue, compared with approximately 86% in the same\nperiod last year. The increase was driven by healthy demand for our software\nsolutions.\n\n * Q2 FYE27 recurring revenue((1)) increased by 18.4% to $56.2 million and\nrepresented 51.4% of total revenue. The growth was primarily driven by the\nadoption of the Company’s subscription offerings and provides enhanced\nvisibility into future revenue streams.\n\n * Q2 FYE27 non-GAAP operating income was $12.2 million, an increase of $4.2\nmillion or 52.5% from $8.0 million in the same period last year, significantly\noutpacing revenue growth.\n\n * Q2 FYE27 adjusted EBITDA was $14.9 million, compared to $11.0 million in the\nsame period last year, up 35.7% and growing significantly faster than revenue.\n\n * Q2 FYE27 diluted non-GAAP EPS nearly doubled to $0.15 per share compared with\n$0.08 per share in the same period last year.\n\n * Q2 FYE27 GAAP operating income was $4.7 million, an increase of $1.9 million\nor 69.7% from operating income of $2.7 million in the same period last year.\n\n * Q2 FYE27 GAAP net income attributable to Cognyte was $4.1 million, compared\nwith $1.5 million in the same period last year.\n\n * Q2 FYE27 diluted GAAP EPS tripled to $0.06 per share, compared with $0.02 the\nsame period last year.\n\n * Q2 FYE27 net cash provided by operating activities was $1.1 million, compared\nwith net cash used in operating activities of $6.3 million in the same period\nlast year. This improvement reflects stronger collections, improved\nprofitability and disciplined working-capital management. The quarter also\nincluded annual incentive payments and other seasonal working-capital uses.\n\nFinancial Summary for Six Months Ended July 31, 2026\n\n\n * H1 FYE27 revenue was $214.7 million, up approximately 11.2% compared to the\nsame period last year.\n\n * H1 FYE27 total software revenue, which is the combination of software and\nsoftware services revenue, was $198.1 million, up approximately 19.8% compared\nto the same period last year.\n\n * H1 FYE27 recurring revenue((1)) was $108.1 million, up 14.2% compared to the\nsame period last year.\n\n * H1 FYE27 non-GAAP operating income was $22.9 million, an increase of $7.3\nmillion or 47.2% from operating income of $15.6 million in the same period\nlast year. We achieved these results despite approximately $7 million of net\nunfavorable foreign exchange impact on operating profitability in the first\nhalf of the year.\n\n * H1 FYE27 adjusted EBITDA was $28.5 million, compared to $21.3 million in the\nsame period last year, up 33.7% and growing significantly faster than revenue.\n\n * H1 FYE27 diluted non-GAAP EPS increased to $0.19 per share compared with $0.15\nper share in the same period last year.\n\n * H1 FYE27 GAAP operating income was $9.1 million, up 85.1% from operating\nincome of $4.9 million in the same period last year.\n\n * H1 FYE27 GAAP net income attributable to Cognyte was $1.1 million, compared to\n$0.5 million in the same period last year.\n\n * During the first half of FYE27, the Company added 40 new customers, compared\nwith 31 in the same period last year.\n\nBalance Sheet\n\n\n * The Company ended the second quarter with $102.2 million in cash and no debt,\nproviding significant flexibility.\n\n * During H1 FYE27, the company repurchased approximately 1.5 million ordinary\nshares for an aggregate purchase price of approximately $13.5 million under\nthe share repurchase program approved by the board of directors in July 2025.\n\n * Since launching its first repurchase program in November 2024, the Company has\nrepurchased approximately $40.2 million of shares through the end of Q2 FYE27,\nout of the $60 million authorized across the Company’s repurchase programs.\n\n * The Company’s capital allocation priorities remain unchanged: investing\norganically to support growth, evaluating strategic M&A opportunities with\nthe potential to create returns significantly in excess of the Company’s\ncost of capital, and using share repurchases opportunistically when they\nrepresent a compelling use of capital.\n\nManagement Commentary\n\n“Cognyte delivered a strong quarter, with broad global momentum and\ncontinued progress across our strategic growth pillars,” said Elad Sharon,\nCognyte’s Chief Executive Officer. “The market is moving directly toward\nwhat we have built for: mission-critical intelligence in complex, high-stakes\nenvironments, powered by trusted AI and sovereign control, and grounded in\ndeep innovation and domain expertise. Our strategy is working, our execution\nis strong, and the quality of our business continues to improve. We are moving\nforward with confidence and ambition.”\n\n“Our second quarter results demonstrate the continued strength of our\nfinancial model,” said David Abadi, Cognyte’s Chief Financial Officer.\n“Total software revenue grew 21% and recurring revenue grew 18%, both\nsignificantly faster than total revenue, while profitability again expanded\nsubstantially faster than revenue. Combined with expected renewals of\nrecurring business and commercial activity since quarter-end, we have\nvisibility into approximately 85% of the next 12 months' revenue. This\nvisibility, combined with our strong execution, reinforces our confidence in\nour full-year outlook and our FYE28 targets.”\n\nFYE27 Outlook\n\nThe company narrowed its FYE27 revenue range around an unchanged midpoint and\nreaffirmed its profitability outlook for the year ending January 31, 2027\n(“FYE27” and “Fiscal 2027”), as follows:\n\n\n * Revenue: $448 million, with a range of +/- 2%, which represents approximately\n12% year-over-year growth at the midpoint of the range.\n\n * Adjusted EBITDA: Approximately $68 million at the midpoint of our revenue\nrange, representing approximately 40% year-over-year growth.\n\n * Non-GAAP Diluted EPS: $0.47 at the midpoint of our revenue range.\n\nAdditional Financial and Operational Data for the Second Quarter and Six\nMonths Ended July 31, 2026\n\n\n * Q2 FYE27 and H1 FYE27 total software revenue, which is the combination of\nsoftware and software services revenue, increased by $17.5 million, and $32.8\nmillion, up 20.9% and 19.8%, respectively, compared to the same period last\nyear.\n\n * Q2 FYE27 and H1 FYE27 software revenue increased by $12.6 million and $22.5\nmillion, up 34.5% and 30.5%, respectively, compared to the same period last\nyear.\n\n * Q2 FYE27 and H1 FYE27 software services revenue increased by $4.8 million and\n$10.2 million, up 10.3% and 11.2%, respectively, compared to the same period\nlast year.\n\n * Q2 FYE27 and H1 FYE27 professional services and other revenue decreased by\n$5.7 million and $11.1 million, respectively, compared with the same period\nlast year. Professional services represented less than 8% of total revenue\nduring the second quarter, compared with approximately 15% in the comparable\nperiod last year, reflecting the increasing software content of the business.\nThis mix shift supports higher-quality revenue, stronger margins and greater\nscalability.\n\n * Q2 FYE27 non-GAAP gross profit and margin were $80.5 million and 73.7%,\nrespectively, a significant increase of $10.1 million and 154 bps improvement\ncompared to the same period last year. The increase is primarily driven by\nrevenue mix, scale, and operational efficiencies.\n\n * Q2 FYE27 billings((2)) were $76.3 million compared to $93.0 million in the\nsame period last year. Billings may vary between quarters based on contract\ntiming. On a trailing twelve-month basis, billings were approximately 95% of\nrevenue, which we believe reflects the underlying strength of the business.\n\n(For information about the non-GAAP financial measure or key metric, please\nsee “Supplemental Information About Non-GAAP Financial Measures and Other\nKey Metrics” at the end of this release.)\n\n((1) Recurring Revenue – Recurring revenue is comprised primarily of revenue\nfrom support contracts as well as revenue from subscription offerings.\n\n(2) Billings – Revenue plus the change in contract liabilities, contract\nassets and unbilled balances.)\n\nConference Call Information\n\nWe will conduct a conference call today at 8:30 a.m. ET to discuss our results\nfor the three months ended July 31, 2026. A real-time webcast of the\nconference call with presentation slides will be available in the Investor\nRelations section of Cognyte’s website. Those interested in participating in\nthe question-and-answer session need to register at:\nhttps://register-conf.media-server.com/register/BI3b38c70743424364b7cd51bda5573f0f\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fregister-conf.media-server.com%2Fregister%2FBI3b38c70743424364b7cd51bda5573f0f&esheet=54600414&newsitemid=20260909407419&lan=en-US&anchor=https%3A%2F%2Fregister-conf.media-server.com%2Fregister%2FBI3b38c70743424364b7cd51bda5573f0f&index=2&md5=cc03dc5dd9eae3d97831a8466c2700af)\nto receive the dial-in numbers and unique PIN to access the call seamlessly.\nIt is recommended that you join 10 minutes prior to the event start (although\nyou may register and dial in at any time during the call). An archived webcast\nof the conference call will also be available in the “Investors” section\nof the company’s website.\n\nAbout Cognyte Software Ltd.\n\nCognyte is a global leader in AI-powered investigative analytics solutions\nthat empower customers with Actionable Intelligence for a Safer World®.\nCognyte’s solutions enable law enforcement, national security and military\nintelligence agencies, as well as other organizations, to navigate an\nincreasingly complex threat landscape. With offerings that leverage advanced\ntechnologies, including artificial intelligence (AI) and analytics, Cognyte\nhelps customers make sense of growing volumes of fragmented multi-source data\nto help identify, assess and mitigate risks across dynamic environments,\nsupporting informed, mission-critical investigations and operations. Hundreds\nof customers worldwide rely on Cognyte’s intelligence platform to uncover\ninsights and reveal what matters, enabling confident decision-making in\nhigh-stakes environments. Learn more at www.cognyte.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.cognyte.com%2F&esheet=54600414&newsitemid=20260909407419&lan=en-US&anchor=www.cognyte.com&index=3&md5=fc275f1be2bdf096f66f9ea02ee7f744)\n.\n\nAbout Non-GAAP Financial Measures and Other Key Metrics\n\nThis press release and the accompanying tables include non-GAAP financial\nmeasures and other key metrics. For a description of these non-GAAP financial\nmeasures and other key metrics, including the reasons management uses each\nmeasure and metric, and reconciliations of non-GAAP financial measures\npresented for completed periods to the most directly comparable financial\nmeasures prepared in accordance with GAAP, please see the tables below as well\nas \"Supplemental Information About Non-GAAP Financial Measures\" at the end of\nthis press release.\n\nOur non-GAAP outlook for FYE27 excludes the following GAAP measures for which\nwe are able to provide a range of probable significance:\n\n\n * Stock-based compensation is expected to be between approximately $23.5 and\n$25.5 million, assuming market prices for our ordinary shares are generally\nconsistent with current levels.\n\n * Amortization expense of other acquired intangible assets is expected to be\napproximately $0.6 million.\n\nFor additional information about our expectations for FYE27, please refer to\nthe Q2 FYE27 conference call we will conduct on September 9, 2026.\n\nOur non-GAAP outlook, unless otherwise specified, reflects foreign currency\nexchange rates approximately consistent with current rates, and does not\ninclude the potential impact of any business acquisitions that may close after\nthe date hereof.\n\nWe are unable, without unreasonable effort, to provide a reconciliation for\nother GAAP measures which are excluded from our non-GAAP outlook, including\nthe impact of future business acquisitions or future acquisition expenses,\nfuture restructuring expenses, and non-GAAP income tax adjustments due to the\nlevel of unpredictability and uncertainty associated with these items. For\nthese same reasons, we are unable to assess the probable significance of these\nexcluded items. While historical results may not be indicative of future\nresults, actual amounts for the three and six months ended July 31, 2026, and\n2025, respectively, for the GAAP measures excluded from our non-GAAP outlook\nappear in Table 4 of this press release.\n\nCaution About Forward-Looking Statements\n\nThis press release contains “forward-looking statements” within the\nmeaning of the Private Securities Litigation Reform Act of 1995 and Section\n21E of the United States Securities Exchange Act of 1934. Forward-looking\nstatements include statements regarding expectations, predictions, views,\nopportunities, plans, strategies, beliefs, and statements of similar effect\nrelating to Cognyte. All statements contained in this press release that do\nnot relate to matters of historical fact should be considered forward-looking\nstatements. These forward-looking statements do not guarantee any future\nperformance and are based solely on management's expectations that involve a\nnumber of known and unknown risks, uncertainties, assumptions and other\nimportant factors, any of which could cause our actual results or conditions\nto differ materially from those expressed in or implied by the forward-looking\nstatements. Some of the factors that could cause our actual results or\nconditions to differ materially from current expectations include, among\nothers: uncertainties regarding the impact of changes in macroeconomic and/or\nglobal conditions; risks related to geopolitical changes and investor\nvisibility constraints; risks related to new tariffs and retaliatory measures\nthat may adversely affect the economy and reduce government spending; risks\nrelated to the impact of inflation and related volatility on our financial\nperformance; risks relating to adverse changes to the regulatory constraints\nto which we are subject; risks related to the impact of disruptions to the\nglobal supply chain; risks related to conditions in Israel including conflicts\nin the Middle East; risks resulting from health crises; risks associated with\ncustomer concentration and challenges associated with our ability to\naccurately forecast revenue and expenses; risks associated with political and\nreputational factors related to our business or operations; risks associated\nwith our ability to keep pace with technological advances and challenges and\nevolving industry standards; risks relating to proprietary rights infringement\nclaims; risks relating to defects, operational problems, or vulnerability to\ncyber-attacks of our products or any of the components used in our products;\nrisks related to the strengths of our intellectual property rights protection;\nrisks that we may be unable to establish and maintain relationships with key\nresellers, partners, and system integrators and risks associated with our\nreliance on limited number of suppliers for certain key components and\nhardware used in our solutions; risks due to the aggressive competition in all\nof our markets; risks associated with the implementation and use of artificial\nintelligence tools and technology, including competitive, technological,\nregulatory, intellectual property, data protection and cybersecurity risks;\nchallenges associated with our long sales cycles and with the sophisticated\nnature of our solutions; risks associated with our ability or costs to retain,\nrecruit and train qualified personnel; risks relating to our ability to\nproperly manage investments in our business and operations, and execute on\ngrowth or strategic initiatives; risks associated with acquisitions, strategic\ninvestments, partnerships or alliances; risks of security vulnerabilities or\nlapses, including cyber-attacks, information technology system breaches,\nfailures or disruptions; risks associated with the mishandling or perceived\nmishandling of sensitive, confidential or classified information; risks\nassociated with our failure to comply with applicable laws; risks associated\nwith our credit facilities or that we may experience liquidity or working\ncapital issues and related risks that financing sources may be unavailable to\nus on reasonable terms; risks associated with changing applicable tax laws and\nregulations, tax rates, and the continuing availability of expected tax\nbenefits in the countries in which we operate; risks associated with our\nsignificant international operations, including due to our Israeli operations,\nfluctuations in foreign exchange rates, and exposure to regions subject to\npolitical or economic instability; risks associated with complex and changing\nregulatory environments relating to our operations and the markets we operate\nin; risks relating to the adequacy of our existing infrastructure, systems,\nprocesses, policies, procedures, internal controls and personnel for our\ncurrent and future operations and reporting needs; risks related to the tax\ntreatment of our spin-off from Verint; risks related to our share repurchase\nprograms; risks associated with different corporate governance requirements\napplicable to Israeli companies; risks associated with being a foreign private\nissuer; and other risks set forth in Section 3.D - “Risk Factors” in our\nlatest annual report on Form 20-F for the fiscal year ended January 31, 2026,\nwhich was filed with the Securities and Exchange Commission (the \"SEC\") on\nMarch 25, 2026, and in our subsequent filings with the SEC. In addition, we\noperate in a very competitive and rapidly changing environment. New risks and\nuncertainties emerge from time to time. It is not possible for our management\nto predict all risks and uncertainties, nor can we assess the impact of all\nfactors on our business or the extent to which any factor, or combination of\nfactors, may cause actual results to differ materially from those contained in\nany forward-looking statements that we may make. In light of these risks,\nuncertainties and assumptions, the forward-looking events and circumstances\ndiscussed in this release are inherently uncertain and may not occur, and\nactual results could differ materially and adversely from those anticipated or\nimplied in the forward-looking statements. Accordingly, you should not rely\nupon forward-looking statements as predictions of future events. Any\nforward-looking statement made in this press release speaks only as of the\ndate hereof. Except as otherwise required by law, the Company undertakes no\nobligation to publicly update or revise any forward-looking statements,\nwhether as a result of new information, future events, changed circumstances,\nor any other reason.\n Table 1                                                                                                                                                   \n \n                                                                                                                                                         \n \nCOGNYTE SOFTWARE LTD.                                                                                                                                    \n \n                                                                                                                                                         \n \nCondensed Consolidated Statements of Operations                                                                                                          \n \n                                                                                                                                                         \n \n(Unaudited)                                                                                                                                              \n                                                                                                                                                           \n                                                                  Six Months Ended                               Three Months Ended                        \n                                                                  \n                                              \n                                         \n                                                                  \nJuly 31,                                      \nJuly 31,                                 \n (in thousands except share data)                                      2026                    2025                   2026                    2025         \n Revenue:                                                                                                                                                  \n Software                                                         $    96,504             $    73,970            $    49,231             $    36,599       \n Software service                                                      101,634                 91,417                 51,563                  46,740       \n Professional service and other                                        16,593                  27,674                 8,443                   14,174       \n Total revenue                                                         214,731                 193,061                109,237                 97,513       \n Cost of revenue:                                                                                                                                          \n Software                                                              16,111                  9,571                  7,440                   3,580        \n Software service                                                      23,765                  21,430                 12,064                  10,974       \n Professional service and other                                        18,948                  24,153                 10,098                  13,198       \n Total cost of revenue                                                 58,824                  55,154                 29,602                  27,752       \n Gross profit                                                          155,907                 137,907                79,635                  69,761       \n Operating expenses:                                                                                                                                       \n Research and development, net                                         63,558                  58,305                 31,973                  29,207       \n Selling, general and administrative                                   82,982                  74,627                 42,852                  37,732       \n Amortization of other acquired intangible assets                      302                     77                     151                     77           \n Total operating expenses                                              146,842                 133,009                74,976                  67,016       \n Operating income                                                      9,065                   4,898                  4,659                   2,745        \n Other (expenses) income, net:                                                                                                                             \n Interest income                                                       981                     1,156                  405                     498          \n Interest expense                                                      (73      )              (114     )             (25      )              (61     )    \n Other expenses, net                                                   (2,772   )              (273     )             (415     )              (1,794  )    \n Total other (expenses) income, net                                    (1,864   )              769                    (35      )              (1,357  )    \n Income before provision for income taxes                              7,201                   5,667                  4,624                   1,388        \n Provision (benefit) for income taxes                                  4,090                   2,791                  (488     )              (1,346  )    \n Net income                                                            3,111                   2,876                  5,112                   2,734        \n Net income attributable to noncontrolling interest                    2,044                   2,388                  1,006                   1,265        \n Net income attributable to Cognyte Software Ltd.                 $    1,067              $    488               $    4,106              $    1,469        \n                                                                                                                                                           \n Net income per share attributable to Cognyte Software Ltd.:                                                                                               \n Basic                                                            $    0.01               $    0.01              $    0.06               $    0.02         \n Diluted                                                          $    0.01               $    0.01              $    0.06               $    0.02         \n                                                                                                                                                           \n Weighted-average shares outstanding:                                                                                                                      \n Basic                                                                 73,212                  72,611                 73,916                  72,992       \n Diluted                                                               74,415                  74,814                 74,649                  74,129       \n\n Table 2                                                                                                                             \n \n                                                                                                                                   \n \nCOGNYTE SOFTWARE LTD.                                                                                                              \n \n                                                                                                                                   \n \nCondensed Consolidated Balance Sheets                                                                                              \n                                                                                                                                     \n                                                                                     July 31,                  January, 31           \n                                                                                           2026                      2026            \n (in thousands)                                                                      (Unaudited)               (Audited)             \n Assets                                                                                                                              \n Current assets:                                                                                                                     \n Cash and cash equivalents                                                           $     102,171             $     116,878         \n Accounts receivable, net of allowance for credit losses of $0.4 million and $1            122,749                   122,548         \n million as of July 31, 2026 and January 31, 2026, respectively                                                                      \n Contract assets                                                                           6,432                     3,284           \n Inventories                                                                               24,249                    16,414          \n Prepaid expenses and other current assets                                                 36,095                    39,145          \n Total current assets                                                                      291,696                   298,269         \n Property and equipment, net                                                               29,567                    29,128          \n Operating lease right-of-use assets                                                       39,853                    40,376          \n Goodwill                                                                                  126,684                   126,605         \n Intangible assets, net                                                                    4,078                     4,380           \n Deferred income taxes                                                                     6,054                     6,068           \n Other assets                                                                              7,919                     16,240          \n Total assets                                                                        $     505,851             $     521,066         \n                                                                                                                                     \n Liabilities and stockholders' equity                                                                                                \n Current liabilities:                                                                                                                \n Accounts payable                                                                    $     34,713              $     26,915          \n Accrued expenses and other current liabilities                                            92,540                    94,590          \n Contract liabilities                                                                      91,193                    102,538         \n Total current liabilities                                                                 218,446                   224,043         \n Long-term contract liabilities                                                            21,572                    21,211          \n Deferred income taxes                                                                     1,074                     1,037           \n Operating lease liabilities                                                               35,194                    36,542          \n Other liabilities                                                                         10,069                    9,370           \n Total liabilities                                                                         286,355                   292,203         \n Commitments and Contingencies                                                                                                       \n Stockholders' equity:                                                                                                               \n Common stock - $0 par value; Authorized 300,000,000 shares. Issued 78,212,209             —                         —               \n and 75,917,304 at July 31, 2026 and January 31, 2026, respectively;                                                                 \n Outstanding 73,845,238 and 73,078,376 shares at July 31, 2026 and January 31,                                                       \n 2026, respectively                                                                                                                  \n Additional paid-in capital                                                                406,746                   395,374         \n Treasury stock, at cost 4,366,971 and 2,838,928 shares at July 31, 2026 and               (40,181   )               (26,712   )     \n January 31, 2026, respectively                                                                                                      \n Accumulated deficit                                                                       (156,214  )               (157,281  )     \n Accumulated other comprehensive loss                                                      (15,010   )               (4,837    )     \n Total Cognyte Software Ltd. stockholders' equity                                          195,341                   206,544         \n Noncontrolling interest                                                                   24,155                    22,319          \n Total stockholders’ equity                                                                219,496                   228,863         \n Total liabilities and stockholders’ equity                                          $     505,851             $     521,066         \n\n Table 3                                                                                                                        \n \n                                                                                                                              \n \nCOGNYTE SOFTWARE LTD.                                                                                                         \n \n                                                                                                                              \n \nCondensed Consolidated Statements of Cash Flows                                                                               \n \n                                                                                                                              \n \n(Unaudited)                                                                                                                   \n                                                                                                                                \n                                                                                     Six Months Ended                           \n                                                                                     \nJuly 31,                                  \n (in thousands)                                                                           2026                    2025          \n Cash flows from operating activities:                                                                                          \n Net income                                                                          $    3,111              $    2,876         \n Adjustments to reconcile net income to net cash used in operating activities:                                                  \n Depreciation and amortization                                                            5,848                   5,822         \n Allowance for credit losses                                                              220                     212           \n Stock-based compensation                                                                 11,372                  10,272        \n Provision from deferred income taxes                                                     101                     50            \n Non-cash losses (gains) on derivative financial instruments, net                         200                     (494     )    \n Other non-cash items, net                                                                (751     )              259           \n Changes in operating assets and liabilities:                                                                                   \n Accounts receivable                                                                      1,081                   (5,340   )    \n Contract assets                                                                          (4,615   )              (4,525   )    \n Inventories                                                                              (8,071   )              2,523         \n Prepaid expenses and other assets                                                        (4,661   )              3,461         \n Accounts payable and accrued expenses                                                    1,832                   (4,000   )    \n Contract liabilities                                                                     (11,063  )              (17,131  )    \n Other liabilities                                                                        1,057                   415           \n Other, net                                                                               753                     991           \n Net cash used in operating activities                                                    (3,586   )              (4,609   )    \n                                                                                                                                \n Cash flows from investing activities:                                                                                          \n Purchases of property and equipment                                                      (3,996   )              (5,999   )    \n Sale of noncontrolling minority investment                                               6,546                   —             \n Settlements of derivative financial instruments not designated as hedges                 289                     523           \n Cash paid for capitalized software development costs                                     —                       (707     )    \n Acquisition of business, net of cash acquired                                            —                       (4,275   )    \n Change in restricted bank time deposits, including long-term portion                     —                       106           \n Net cash provided by (used in) investing activities                                      2,839                   (10,352  )    \n                                                                                                                                \n Cash flows from financing activities:                                                                                          \n Purchases of treasury stock                                                              (13,443  )              (14,709  )    \n Repayment of principal portion of finance lease liability                                (185     )              (140     )    \n Net cash used in financing activities                                                    (13,628  )              (14,849  )    \n                                                                                                                                \n Foreign currency effects on cash, cash equivalents, restricted cash, and                 (332     )              1,493         \n restricted cash equivalents                                                                                                    \n Net decrease in cash, cash equivalents, restricted cash and restricted cash              (14,707  )              (28,317  )    \n equivalents                                                                                                                    \n Cash, cash equivalents, restricted cash, and restricted cash equivalents,                116,878                 112,904       \n beginning of period                                                                                                            \n Cash, cash equivalents, restricted cash, and restricted cash equivalents, end       $    102,171            $    84,587        \n of period                                                                                                                      \n                                                                                                                                \n Reconciliation of cash, cash equivalents, restricted cash and restricted cash                                                  \n equivalents at end of period:                                                                                                  \n Cash and cash equivalents                                                           $    102,171            $    84,485        \n Restricted cash and cash equivalents included in restricted cash and cash                —                       102           \n equivalents and restricted bank time deposits                                                                                  \n Total cash, cash equivalents, restricted cash, and restricted cash equivalents      $    102,171            $    84,587        \n\n Table 4                                                                                                                                                                \n \n                                                                                                                                                                      \n \nCOGNYTE SOFTWARE LTD.                                                                                                                                                 \n \n                                                                                                                                                                      \n \nReconciliation of GAAP to Non-GAAP Measures                                                                                                                           \n \n                                                                                                                                                                      \n \n(Unaudited)                                                                                                                                                           \n                                                                                                                                                                        \n                                                                                  Six Months Ended                             Three Months Ended                       \n                                                                                  \n                                            \n                                        \n                                                                                  \nJuly 31,                                    \nJuly 31,                                \n (in thousands, except per share data)                                                 2026                   2025                  2026                   2025         \n Operating income, operating margin and adjusted EBITDA                                                                                                                 \n GAAP Operating income                                                            $    9,065             $    4,898            $    4,659             $    2,745        \n GAAP operating margin                                                                 4.2     %              2.5     %             4.3     %              2.8     %    \n Stock-based compensation expenses                                                     11,372                 10,272                5,664                  5,099        \n Restructuring expenses, net                                                           2,174                  17                    1,762                  17           \n Other Non-GAAP adjustments                                                            309                    388                   151                    162          \n Non-GAAP operating income                                                        $    22,920            $    15,575           $    12,236            $    8,023        \n Depreciation and amortization                                                         5,547                  5,717                 2,660                  2,952        \n Adjusted EBITDA                                                                  $    28,467            $    21,292           $    14,896            $    10,975       \n Non-GAAP operating margin                                                             10.7    %              8.1     %             11.2    %              8.2     %    \n Adjusted EBITDA margin                                                                13.3    %              11.0    %             13.6    %              11.3    %    \n                                                                                                                                                                        \n Net (loss) income attributable to Cognyte Software Ltd. reconciliation                                                                                                 \n GAAP Net income attributable to Cognyte Software Ltd.                            $    1,067             $    488              $    4,106             $    1,469        \n Stock-based compensation expenses                                                     11,372                 10,272                5,664                  5,099        \n Non-GAAP tax adjustments                                                              (817    )              (119    )             (323    )              (732    )    \n Restructuring expenses, net                                                           2,174                  17                    1,762                  17           \n Change in fair value of noncontrolling minority investments, net                      (329    )              —                     —                      —            \n Other Non-GAAP adjustments                                                            309                    388                   151                    162          \n Total adjustments                                                                     12,709                 10,558                7,254                  4,546        \n Non-GAAP Net income attributable to Cognyte Software Ltd.                        $    13,776            $    11,046           $    11,360            $    6,015        \n                                                                                                                                                                        \n Table comparing GAAP and Non-GAAP diluted net (loss) income per share                                                                                                  \n attributable to Cognyte Software Ltd.                                                                                                                                  \n GAAP diluted net income per share attributable to Cognyte Software Ltd.          $    0.01              $    0.01             $    0.06              $    0.02         \n Non-GAAP diluted net income per share attributable to Cognyte Software Ltd.      $    0.19              $    0.15             $    0.15              $    0.08         \n GAAP weighted-average shares used in computing diluted net income per share           74,415                 74,814                74,649                 74,129       \n attributable to Cognyte Software Ltd.                                                                                                                                  \n Non-GAAP diluted weighted-average shares used in computing net income per             74,415                 74,814                74,649                 74,129       \n share attributable to Cognyte Software Ltd.                                                                                                                            \n                                                                                                                                                                        \n Stock-based compensation                                                                                                                                               \n Cost of revenue                                                                  $    1,298             $    1,112            $    658               $    556          \n Research and development, net                                                         1,120                  847                   644                    481          \n Selling, general, and administrative                                                  8,954                  8,313                 4,362                  4,062        \n Total stock-based compensation expense                                           $    11,372            $    10,272           $    5,664             $    5,099        \n                                                                                                                                                                        \n Restructuring expenses, net                                                                                                                                            \n Cost of revenue                                                                  $    167               $    —                $    162               $    —            \n Research and development, net                                                         989                    —                     723                    —            \n Selling, general, and administrative                                                  1,018                  17                    877                    17           \n Total restructuring adjustments                                                  $    2,174             $    17               $    1,762             $    17           \n                                                                                                                                                                        \n Other Non-GAAP adjustments                                                                                                                                             \n Selling, general, and administrative                                             $    7                 $    311              $    —                 $    85           \n Amortization of other acquired intangible assets                                      302                    77                    151                    77           \n Total other Non-GAAP adjustments                                                 $    309               $    388              $    151               $    162          \n\n\nFootnotes\n\n(1) The actual cash tax paid, net of refunds, was $2.6 million and $3.9\nmillion for the three and six months ended July 31, 2026, respectively. The\nactual cash tax paid, net of refunds, was $1.9 million and $2.5 million for\nthe three and six months ended July 31, 2025, respectively.\n\nCognyte Software Ltd. and Subsidiaries\n\nSupplemental Information About Non-GAAP Financial Measures and Other Key\nMetrics\n\nNon-GAAP Financial Measures\n\nThe press release includes reconciliations of certain financial measures not\nprepared in accordance with GAAP, consisting of non-GAAP operating income and\noperating margins, non-GAAP net income attributable to Cognyte, adjusted\nEBITDA and adjusted EBITDA margin, non-GAAP diluted net income per share\nattributable to Cognyte and non-GAAP diluted weighted-average shares used in\ncomputing such measure. The tables above include a reconciliation of each\nnon-GAAP financial measure for completed periods presented in this press\nrelease to the most directly comparable GAAP financial measure.\n\nWe believe these non-GAAP financial measures, used in conjunction with the\ncorresponding GAAP measures, provide investors with useful supplemental\ninformation about the financial performance of our business by:\n\n\n * facilitating the comparison of our financial results and business trends\nbetween periods, by excluding certain items that either can vary significantly\nin amount and frequency, are based upon subjective assumptions, or in certain\ncases are unplanned for or difficult to forecast,\n\n * facilitating the comparison of our financial results and business trends with\nother software companies who publish similar non-GAAP measures, and\n\n * allowing investors to see and understand key supplementary metrics used by our\nmanagement to run our business, including for budgeting and forecasting,\nresource allocation, and compensation matters.\n\nWe also make these non-GAAP financial measures available because our\nmanagement believes they provide meaningful information about the financial\nperformance of our business and are useful to investors for informational and\ncomparative purposes.\n\nNon-GAAP financial measures should not be considered in isolation as\nsubstitutes for, or superior to, comparable GAAP financial measures. The\nnon-GAAP financial measures we present have limitations in that they do not\nreflect all of the amounts associated with our results of operations as\ndetermined in accordance with GAAP, and these non-GAAP financial measures\nshould only be used to evaluate our results of operations in conjunction with\nthe corresponding GAAP financial measures. These non-GAAP financial measures\ndo not represent discretionary cash available to us to invest in the growth of\nour business, and we may in the future incur expenses similar to or in\naddition to the adjustments made in these non-GAAP financial measures. Other\ncompanies may calculate similar non-GAAP financial measures differently than\nwe do, limiting their usefulness as comparative measures.\n\nOur non-GAAP financial measures are calculated by making the following\nadjustments to our GAAP financial measures:\n\nStock-based compensation expenses. We exclude stock-based compensation\nexpenses related to restricted stock awards, stock bonus programs, bonus share\nprograms, and other stock-based awards from our non-GAAP financial measures.\nWe evaluate our performance both with and without these measures because\nstock-based compensation is typically a non-cash expense and can vary\nsignificantly over time based on the timing, size and nature of awards\ngranted, and is influenced in part by certain factors which are generally\nbeyond our control, such as the volatility of the price of our ordinary\nshares. In addition, measurement of stock-based compensation is subject to\nvarying valuation methodologies and subjective assumptions, and therefore we\nbelieve that excluding stock-based compensation from our non-GAAP financial\nmeasures allows for meaningful comparisons of our current operating results to\nour historical operating results and to other companies in our industry.\n\nRestructuring expenses. We exclude restructuring expenses from our non-GAAP\nfinancial measures, which include employee termination costs, facility exit\ncosts, certain professional fees, asset impairment charges, and other costs\ndirectly associated with resource realignments incurred in reaction to\nchanging strategies or business conditions. All of these costs can vary\nsignificantly in amount and frequency based on the nature of the actions as\nwell as the changing needs of our business and we believe that excluding them\nprovides easier comparability of pre- and post-restructuring operating\nresults.\n\nOther adjustments. We exclude from our non-GAAP financial measures fair value\nadjustments related to revenue acquired in a business acquisition,\namortization of acquired technology and other acquired intangible assets,\nacquisition expenses (benefit), separation expenses, business divestiture\ngain/losses, provision for legal claim, rent expense for redundant facilities,\ngains/losses on change in fair value of noncontrolling minority investment,\ngains or losses on sales of property and certain professional fees unrelated\nto our ongoing operations.\n\nNon-GAAP income tax adjustments. We exclude our GAAP provision (benefit) for\nincome taxes from our non-GAAP measures of net income attributable to Cognyte\nSoftware Ltd., and instead include a non-GAAP provision for income taxes.\nCognyte uses a full-year non-GAAP tax rate to compute the non-GAAP tax\nprovision. This full-year non-GAAP tax rate is based on Cognyte’s annual\nGAAP income, adjusted to exclude non-GAAP items, as well as the effects of\nsignificant non-recurring and period-specific tax items which vary in size and\nfrequency. This annual non-GAAP tax rate is based on an evaluation of our\nhistorical and projected profit before tax, taking into account the impact of\nnon-GAAP adjustments, tax law changes, as well as other factors such as our\ncurrent tax structure, existing tax positions and expected recurring tax\nincentives. Our GAAP effective income tax rate can vary significantly from\nyear to year as a result of tax law changes, settlements with tax authorities,\nchanges in the geographic mix of earnings including acquisition activity,\nchanges in the projected realizability of deferred tax assets, and other\nunusual or period-specific events, all of which can vary in size and\nfrequency. We believe that our non-GAAP effective income tax rate removes much\nof this variability and facilitates meaningful comparisons of operating\nresults across periods. We evaluate our non-GAAP effective income tax rate on\nan ongoing basis, and it can change from time to time. Our non-GAAP income tax\nrate can differ materially from our GAAP effective income tax rate.\n\nAdjusted EBITDA. Adjusted EBITDA is a non-GAAP measure defined as net income\n(loss) attributable to non-controlling interest before interest expense,\ninterest income, income taxes, depreciation expense, amortization expense,\nrevenue adjustments, restructuring expenses, acquisition expenses, and other\nexpenses excluded from our non-GAAP financial measures as described above. We\nbelieve that adjusted EBITDA is also commonly used by investors to evaluate\noperating performance between companies because it helps reduce variability\ncaused by differences in capital structures, income taxes, stock-based\ncompensation accounting policies, and depreciation and amortization policies.\n\nOther Key Metrics\n\nRecurring revenue. Cognyte calculates recurring revenue for a period by\ncombining revenue from initial and renewal support, subscription software\nlicenses, and cloud-based SaaS in certain transactions. Recurring revenue is\nthe portion of our revenue that we believe is likely to be renewed in the\nfuture. The recurrence of these revenue streams in future periods depends on a\nnumber of factors including contractual periods and customers' renewal\ndecisions. Cognyte believes that recurring revenue provides investors more\nvisibility into our recurring business in the upcoming years and helpful\nmeasurement of Cognyte’s potential revenue. Cognyte does not consider\nrecurring revenue to be a non-GAAP financial measure because it is calculated\nusing GAAP revenue.\n\nBillings. Cognyte calculates billings for a period by adding changes in\ncontract liabilities, contract assets and unbilled balances in that period to\nrevenue. Cognyte believes that billings help investors better understand sales\nactivity and ongoing business for a particular period, which is not\nnecessarily reflected in revenue. Billings fluctuate from quarter to quarter.\nCognyte does not consider billings to be a non-GAAP financial measure because\nit is calculated using exclusively revenue, contract liabilities, contract\nassets and unbilled balances, all of which are financial measures calculated\nin accordance with GAAP.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260909407419/en/\n(https://www.businesswire.com/news/home/20260909407419/en/)\n\nInvestor Relations Contact \n\nDean Ridlon\n\nCognyte Software Ltd.\n\nIR@cognyte.com (mailto:IR@cognyte.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw93F1GCa-20260909","title":"Cognyte Reports Strong Second Quarter Results with Accelerating Software Growth and Expanding Profitability","author":"Business Wire","ticker":"CGNT","created":"2026-09-09T11:30:00.717Z","tickers":["CGNT"],"exchange":"NASDAQ","article_body":"Cognyte Reports Strong Second Quarter Results with Accelerating Software\nGrowth and Expanding Profitability\n\nRevenue grew 12% to $109.2 million; adjusted EBITDA grew 35.7% to $14.9\nmillion; non-GAAP diluted EPS nearly doubled to $0.15; total software revenue\ngrew 21% and recurring revenue grew 18%\n\nThe Company reiterates its FYE27 outlook and remains on track to achieve its\nFYE28 targets\n\nCognyte Software Ltd.\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.cognyte.com%2F&esheet=54600414&newsitemid=20260909407419&lan=en-US&anchor=Cognyte+Software+Ltd.&index=1&md5=1b66240b4884d85a6836201e6f89d715)\n(NASDAQ: CGNT) (the “Company,” “Cognyte,” “we,” “us” and\n“our”), a global leader in AI-powered investigative analytics solutions,\ntoday announced results for the three and six months ended July 31, 2026 (\"Q2\nFYE27\").\n\nFinancial Summary for Three Months Ended July 31, 2026\n\n\n * Q2 FYE27 revenue was $109.2 million, up approximately 12.0% compared with the\nsame period last year, reflecting consistent demand for the Company’s\nsoftware.\n\n * Q2 FYE27 total software revenue, which is the combination of software and\nsoftware services revenue, increased 20.9% to $100.8 million and represented\nmore than 92% of total revenue, compared with approximately 86% in the same\nperiod last year. The increase was driven by healthy demand for our software\nsolutions.\n\n * Q2 FYE27 recurring revenue((1)) increased by 18.4% to $56.2 million and\nrepresented 51.4% of total revenue. The growth was primarily driven by the\nadoption of the Company’s subscription offerings and provides enhanced\nvisibility into future revenue streams.\n\n * Q2 FYE27 non-GAAP operating income was $12.2 million, an increase of $4.2\nmillion or 52.5% from $8.0 million in the same period last year, significantly\noutpacing revenue growth.\n\n * Q2 FYE27 adjusted EBITDA was $14.9 million, compared to $11.0 million in the\nsame period last year, up 35.7% and growing significantly faster than revenue.\n\n * Q2 FYE27 diluted non-GAAP EPS nearly doubled to $0.15 per share compared with\n$0.08 per share in the same period last year.\n\n * Q2 FYE27 GAAP operating income was $4.7 million, an increase of $1.9 million\nor 69.7% from operating income of $2.7 million in the same period last year.\n\n * Q2 FYE27 GAAP net income attributable to Cognyte was $4.1 million, compared\nwith $1.5 million in the same period last year.\n\n * Q2 FYE27 diluted GAAP EPS tripled to $0.06 per share, compared with $0.02 the\nsame period last year.\n\n * Q2 FYE27 net cash provided by operating activities was $1.1 million, compared\nwith net cash used in operating activities of $6.3 million in the same period\nlast year. This improvement reflects stronger collections, improved\nprofitability and disciplined working-capital management. The quarter also\nincluded annual incentive payments and other seasonal working-capital uses.\n\nFinancial Summary for Six Months Ended July 31, 2026\n\n\n * H1 FYE27 revenue was $214.7 million, up approximately 11.2% compared to the\nsame period last year.\n\n * H1 FYE27 total software revenue, which is the combination of software and\nsoftware services revenue, was $198.1 million, up approximately 19.8% compared\nto the same period last year.\n\n * H1 FYE27 recurring revenue((1)) was $108.1 million, up 14.2% compared to the\nsame period last year.\n\n * H1 FYE27 non-GAAP operating income was $22.9 million, an increase of $7.3\nmillion or 47.2% from operating income of $15.6 million in the same period\nlast year. We achieved these results despite approximately $7 million of net\nunfavorable foreign exchange impact on operating profitability in the first\nhalf of the year.\n\n * H1 FYE27 adjusted EBITDA was $28.5 million, compared to $21.3 million in the\nsame period last year, up 33.7% and growing significantly faster than revenue.\n\n * H1 FYE27 diluted non-GAAP EPS increased to $0.19 per share compared with $0.15\nper share in the same period last year.\n\n * H1 FYE27 GAAP operating income was $9.1 million, up 85.1% from operating\nincome of $4.9 million in the same period last year.\n\n * H1 FYE27 GAAP net income attributable to Cognyte was $1.1 million, compared to\n$0.5 million in the same period last year.\n\n * During the first half of FYE27, the Company added 40 new customers, compared\nwith 31 in the same period last year.\n\nBalance Sheet\n\n\n * The Company ended the second quarter with $102.2 million in cash and no debt,\nproviding significant flexibility.\n\n * During H1 FYE27, the company repurchased approximately 1.5 million ordinary\nshares for an aggregate purchase price of approximately $13.5 million under\nthe share repurchase program approved by the board of directors in July 2025.\n\n * Since launching its first repurchase program in November 2024, the Company has\nrepurchased approximately $40.2 million of shares through the end of Q2 FYE27,\nout of the $60 million authorized across the Company’s repurchase programs.\n\n * The Company’s capital allocation priorities remain unchanged: investing\norganically to support growth, evaluating strategic M&A opportunities with\nthe potential to create returns significantly in excess of the Company’s\ncost of capital, and using share repurchases opportunistically when they\nrepresent a compelling use of capital.\n\nManagement Commentary\n\n“Cognyte delivered a strong quarter, with broad global momentum and\ncontinued progress across our strategic growth pillars,” said Elad Sharon,\nCognyte’s Chief Executive Officer. “The market is moving directly toward\nwhat we have built for: mission-critical intelligence in complex, high-stakes\nenvironments, powered by trusted AI and sovereign control, and grounded in\ndeep innovation and domain expertise. Our strategy is working, our execution\nis strong, and the quality of our business continues to improve. We are moving\nforward with confidence and ambition.”\n\n“Our second quarter results demonstrate the continued strength of our\nfinancial model,” said David Abadi, Cognyte’s Chief Financial Officer.\n“Total software revenue grew 21% and recurring revenue grew 18%, both\nsignificantly faster than total revenue, while profitability again expanded\nsubstantially faster than revenue. Combined with expected renewals of\nrecurring business and commercial activity since quarter-end, we have\nvisibility into approximately 85% of the next 12 months' revenue. This\nvisibility, combined with our strong execution, reinforces our confidence in\nour full-year outlook and our FYE28 targets.”\n\nFYE27 Outlook\n\nThe company narrowed its FYE27 revenue range around an unchanged midpoint and\nreaffirmed its profitability outlook for the year ending January 31, 2027\n(“FYE27” and “Fiscal 2027”), as follows:\n\n\n * Revenue: $448 million, with a range of +/- 2%, which represents approximately\n12% year-over-year growth at the midpoint of the range.\n\n * Adjusted EBITDA: Approximately $68 million at the midpoint of our revenue\nrange, representing approximately 40% year-over-year growth.\n\n * Non-GAAP Diluted EPS: $0.47 at the midpoint of our revenue range.\n\nAdditional Financial and Operational Data for the Second Quarter and Six\nMonths Ended July 31, 2026\n\n\n * Q2 FYE27 and H1 FYE27 total software revenue, which is the combination of\nsoftware and software services revenue, increased by $17.5 million, and $32.8\nmillion, up 20.9% and 19.8%, respectively, compared to the same period last\nyear.\n\n * Q2 FYE27 and H1 FYE27 software revenue increased by $12.6 million and $22.5\nmillion, up 34.5% and 30.5%, respectively, compared to the same period last\nyear.\n\n * Q2 FYE27 and H1 FYE27 software services revenue increased by $4.8 million and\n$10.2 million, up 10.3% and 11.2%, respectively, compared to the same period\nlast year.\n\n * Q2 FYE27 and H1 FYE27 professional services and other revenue decreased by\n$5.7 million and $11.1 million, respectively, compared with the same period\nlast year. Professional services represented less than 8% of total revenue\nduring the second quarter, compared with approximately 15% in the comparable\nperiod last year, reflecting the increasing software content of the business.\nThis mix shift supports higher-quality revenue, stronger margins and greater\nscalability.\n\n * Q2 FYE27 non-GAAP gross profit and margin were $80.5 million and 73.7%,\nrespectively, a significant increase of $10.1 million and 154 bps improvement\ncompared to the same period last year. The increase is primarily driven by\nrevenue mix, scale, and operational efficiencies.\n\n * Q2 FYE27 billings((2)) were $76.3 million compared to $93.0 million in the\nsame period last year. Billings may vary between quarters based on contract\ntiming. On a trailing twelve-month basis, billings were approximately 95% of\nrevenue, which we believe reflects the underlying strength of the business.\n\n(For information about the non-GAAP financial measure or key metric, please\nsee “Supplemental Information About Non-GAAP Financial Measures and Other\nKey Metrics” at the end of this release.)\n\n((1) Recurring Revenue – Recurring revenue is comprised primarily of revenue\nfrom support contracts as well as revenue from subscription offerings.\n\n(2) Billings – Revenue plus the change in contract liabilities, contract\nassets and unbilled balances.)\n\nConference Call Information\n\nWe will conduct a conference call today at 8:30 a.m. ET to discuss our results\nfor the three months ended July 31, 2026. A real-time webcast of the\nconference call with presentation slides will be available in the Investor\nRelations section of Cognyte’s website. Those interested in participating in\nthe question-and-answer session need to register at:\nhttps://register-conf.media-server.com/register/BI3b38c70743424364b7cd51bda5573f0f\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fregister-conf.media-server.com%2Fregister%2FBI3b38c70743424364b7cd51bda5573f0f&esheet=54600414&newsitemid=20260909407419&lan=en-US&anchor=https%3A%2F%2Fregister-conf.media-server.com%2Fregister%2FBI3b38c70743424364b7cd51bda5573f0f&index=2&md5=cc03dc5dd9eae3d97831a8466c2700af)\nto receive the dial-in numbers and unique PIN to access the call seamlessly.\nIt is recommended that you join 10 minutes prior to the event start (although\nyou may register and dial in at any time during the call). An archived webcast\nof the conference call will also be available in the “Investors” section\nof the company’s website.\n\nAbout Cognyte Software Ltd.\n\nCognyte is a global leader in AI-powered investigative analytics solutions\nthat empower customers with Actionable Intelligence for a Safer World®.\nCognyte’s solutions enable law enforcement, national security and military\nintelligence agencies, as well as other organizations, to navigate an\nincreasingly complex threat landscape. With offerings that leverage advanced\ntechnologies, including artificial intelligence (AI) and analytics, Cognyte\nhelps customers make sense of growing volumes of fragmented multi-source data\nto help identify, assess and mitigate risks across dynamic environments,\nsupporting informed, mission-critical investigations and operations. Hundreds\nof customers worldwide rely on Cognyte’s intelligence platform to uncover\ninsights and reveal what matters, enabling confident decision-making in\nhigh-stakes environments. Learn more at www.cognyte.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.cognyte.com%2F&esheet=54600414&newsitemid=20260909407419&lan=en-US&anchor=www.cognyte.com&index=3&md5=fc275f1be2bdf096f66f9ea02ee7f744)\n.\n\nAbout Non-GAAP Financial Measures and Other Key Metrics\n\nThis press release and the accompanying tables include non-GAAP financial\nmeasures and other key metrics. For a description of these non-GAAP financial\nmeasures and other key metrics, including the reasons management uses each\nmeasure and metric, and reconciliations of non-GAAP financial measures\npresented for completed periods to the most directly comparable financial\nmeasures prepared in accordance with GAAP, please see the tables below as well\nas \"Supplemental Information About Non-GAAP Financial Measures\" at the end of\nthis press release.\n\nOur non-GAAP outlook for FYE27 excludes the following GAAP measures for which\nwe are able to provide a range of probable significance:\n\n\n * Stock-based compensation is expected to be between approximately $23.5 and\n$25.5 million, assuming market prices for our ordinary shares are generally\nconsistent with current levels.\n\n * Amortization expense of other acquired intangible assets is expected to be\napproximately $0.6 million.\n\nFor additional information about our expectations for FYE27, please refer to\nthe Q2 FYE27 conference call we will conduct on September 9, 2026.\n\nOur non-GAAP outlook, unless otherwise specified, reflects foreign currency\nexchange rates approximately consistent with current rates, and does not\ninclude the potential impact of any business acquisitions that may close after\nthe date hereof.\n\nWe are unable, without unreasonable effort, to provide a reconciliation for\nother GAAP measures which are excluded from our non-GAAP outlook, including\nthe impact of future business acquisitions or future acquisition expenses,\nfuture restructuring expenses, and non-GAAP income tax adjustments due to the\nlevel of unpredictability and uncertainty associated with these items. For\nthese same reasons, we are unable to assess the probable significance of these\nexcluded items. While historical results may not be indicative of future\nresults, actual amounts for the three and six months ended July 31, 2026, and\n2025, respectively, for the GAAP measures excluded from our non-GAAP outlook\nappear in Table 4 of this press release.\n\nCaution About Forward-Looking Statements\n\nThis press release contains “forward-looking statements” within the\nmeaning of the Private Securities Litigation Reform Act of 1995 and Section\n21E of the United States Securities Exchange Act of 1934. Forward-looking\nstatements include statements regarding expectations, predictions, views,\nopportunities, plans, strategies, beliefs, and statements of similar effect\nrelating to Cognyte. All statements contained in this press release that do\nnot relate to matters of historical fact should be considered forward-looking\nstatements. These forward-looking statements do not guarantee any future\nperformance and are based solely on management's expectations that involve a\nnumber of known and unknown risks, uncertainties, assumptions and other\nimportant factors, any of which could cause our actual results or conditions\nto differ materially from those expressed in or implied by the forward-looking\nstatements. Some of the factors that could cause our actual results or\nconditions to differ materially from current expectations include, among\nothers: uncertainties regarding the impact of changes in macroeconomic and/or\nglobal conditions; risks related to geopolitical changes and investor\nvisibility constraints; risks related to new tariffs and retaliatory measures\nthat may adversely affect the economy and reduce government spending; risks\nrelated to the impact of inflation and related volatility on our financial\nperformance; risks relating to adverse changes to the regulatory constraints\nto which we are subject; risks related to the impact of disruptions to the\nglobal supply chain; risks related to conditions in Israel including conflicts\nin the Middle East; risks resulting from health crises; risks associated with\ncustomer concentration and challenges associated with our ability to\naccurately forecast revenue and expenses; risks associated with political and\nreputational factors related to our business or operations; risks associated\nwith our ability to keep pace with technological advances and challenges and\nevolving industry standards; risks relating to proprietary rights infringement\nclaims; risks relating to defects, operational problems, or vulnerability to\ncyber-attacks of our products or any of the components used in our products;\nrisks related to the strengths of our intellectual property rights protection;\nrisks that we may be unable to establish and maintain relationships with key\nresellers, partners, and system integrators and risks associated with our\nreliance on limited number of suppliers for certain key components and\nhardware used in our solutions; risks due to the aggressive competition in all\nof our markets; risks associated with the implementation and use of artificial\nintelligence tools and technology, including competitive, technological,\nregulatory, intellectual property, data protection and cybersecurity risks;\nchallenges associated with our long sales cycles and with the sophisticated\nnature of our solutions; risks associated with our ability or costs to retain,\nrecruit and train qualified personnel; risks relating to our ability to\nproperly manage investments in our business and operations, and execute on\ngrowth or strategic initiatives; risks associated with acquisitions, strategic\ninvestments, partnerships or alliances; risks of security vulnerabilities or\nlapses, including cyber-attacks, information technology system breaches,\nfailures or disruptions; risks associated with the mishandling or perceived\nmishandling of sensitive, confidential or classified information; risks\nassociated with our failure to comply with applicable laws; risks associated\nwith our credit facilities or that we may experience liquidity or working\ncapital issues and related risks that financing sources may be unavailable to\nus on reasonable terms; risks associated with changing applicable tax laws and\nregulations, tax rates, and the continuing availability of expected tax\nbenefits in the countries in which we operate; risks associated with our\nsignificant international operations, including due to our Israeli operations,\nfluctuations in foreign exchange rates, and exposure to regions subject to\npolitical or economic instability; risks associated with complex and changing\nregulatory environments relating to our operations and the markets we operate\nin; risks relating to the adequacy of our existing infrastructure, systems,\nprocesses, policies, procedures, internal controls and personnel for our\ncurrent and future operations and reporting needs; risks related to the tax\ntreatment of our spin-off from Verint; risks related to our share repurchase\nprograms; risks associated with different corporate governance requirements\napplicable to Israeli companies; risks associated with being a foreign private\nissuer; and other risks set forth in Section 3.D - “Risk Factors” in our\nlatest annual report on Form 20-F for the fiscal year ended January 31, 2026,\nwhich was filed with the Securities and Exchange Commission (the \"SEC\") on\nMarch 25, 2026, and in our subsequent filings with the SEC. In addition, we\noperate in a very competitive and rapidly changing environment. New risks and\nuncertainties emerge from time to time. It is not possible for our management\nto predict all risks and uncertainties, nor can we assess the impact of all\nfactors on our business or the extent to which any factor, or combination of\nfactors, may cause actual results to differ materially from those contained in\nany forward-looking statements that we may make. In light of these risks,\nuncertainties and assumptions, the forward-looking events and circumstances\ndiscussed in this release are inherently uncertain and may not occur, and\nactual results could differ materially and adversely from those anticipated or\nimplied in the forward-looking statements. Accordingly, you should not rely\nupon forward-looking statements as predictions of future events. Any\nforward-looking statement made in this press release speaks only as of the\ndate hereof. Except as otherwise required by law, the Company undertakes no\nobligation to publicly update or revise any forward-looking statements,\nwhether as a result of new information, future events, changed circumstances,\nor any other reason.\n Table 1                                                                                                                                                   \n \n                                                                                                                                                         \n \nCOGNYTE SOFTWARE LTD.                                                                                                                                    \n \n                                                                                                                                                         \n \nCondensed Consolidated Statements of Operations                                                                                                          \n \n                                                                                                                                                         \n \n(Unaudited)                                                                                                                                              \n                                                                                                                                                           \n                                                                  Six Months Ended                               Three Months Ended                        \n                                                                  \n                                              \n                                         \n                                                                  \nJuly 31,                                      \nJuly 31,                                 \n (in thousands except share data)                                      2026                    2025                   2026                    2025         \n Revenue:                                                                                                                                                  \n Software                                                         $    96,504             $    73,970            $    49,231             $    36,599       \n Software service                                                      101,634                 91,417                 51,563                  46,740       \n Professional service and other                                        16,593                  27,674                 8,443                   14,174       \n Total revenue                                                         214,731                 193,061                109,237                 97,513       \n Cost of revenue:                                                                                                                                          \n Software                                                              16,111                  9,571                  7,440                   3,580        \n Software service                                                      23,765                  21,430                 12,064                  10,974       \n Professional service and other                                        18,948                  24,153                 10,098                  13,198       \n Total cost of revenue                                                 58,824                  55,154                 29,602                  27,752       \n Gross profit                                                          155,907                 137,907                79,635                  69,761       \n Operating expenses:                                                                                                                                       \n Research and development, net                                         63,558                  58,305                 31,973                  29,207       \n Selling, general and administrative                                   82,982                  74,627                 42,852                  37,732       \n Amortization of other acquired intangible assets                      302                     77                     151                     77           \n Total operating expenses                                              146,842                 133,009                74,976                  67,016       \n Operating income                                                      9,065                   4,898                  4,659                   2,745        \n Other (expenses) income, net:                                                                                                                             \n Interest income                                                       981                     1,156                  405                     498          \n Interest expense                                                      (73      )              (114     )             (25      )              (61     )    \n Other expenses, net                                                   (2,772   )              (273     )             (415     )              (1,794  )    \n Total other (expenses) income, net                                    (1,864   )              769                    (35      )              (1,357  )    \n Income before provision for income taxes                              7,201                   5,667                  4,624                   1,388        \n Provision (benefit) for income taxes                                  4,090                   2,791                  (488     )              (1,346  )    \n Net income                                                            3,111                   2,876                  5,112                   2,734        \n Net income attributable to noncontrolling interest                    2,044                   2,388                  1,006                   1,265        \n Net income attributable to Cognyte Software Ltd.                 $    1,067              $    488               $    4,106              $    1,469        \n                                                                                                                                                           \n Net income per share attributable to Cognyte Software Ltd.:                                                                                               \n Basic                                                            $    0.01               $    0.01              $    0.06               $    0.02         \n Diluted                                                          $    0.01               $    0.01              $    0.06               $    0.02         \n                                                                                                                                                           \n Weighted-average shares outstanding:                                                                                                                      \n Basic                                                                 73,212                  72,611                 73,916                  72,992       \n Diluted                                                               74,415                  74,814                 74,649                  74,129       \n\n Table 2                                                                                                                             \n \n                                                                                                                                   \n \nCOGNYTE SOFTWARE LTD.                                                                                                              \n \n                                                                                                                                   \n \nCondensed Consolidated Balance Sheets                                                                                              \n                                                                                                                                     \n                                                                                     July 31,                  January, 31           \n                                                                                           2026                      2026            \n (in thousands)                                                                      (Unaudited)               (Audited)             \n Assets                                                                                                                              \n Current assets:                                                                                                                     \n Cash and cash equivalents                                                           $     102,171             $     116,878         \n Accounts receivable, net of allowance for credit losses of $0.4 million and $1            122,749                   122,548         \n million as of July 31, 2026 and January 31, 2026, respectively                                                                      \n Contract assets                                                                           6,432                     3,284           \n Inventories                                                                               24,249                    16,414          \n Prepaid expenses and other current assets                                                 36,095                    39,145          \n Total current assets                                                                      291,696                   298,269         \n Property and equipment, net                                                               29,567                    29,128          \n Operating lease right-of-use assets                                                       39,853                    40,376          \n Goodwill                                                                                  126,684                   126,605         \n Intangible assets, net                                                                    4,078                     4,380           \n Deferred income taxes                                                                     6,054                     6,068           \n Other assets                                                                              7,919                     16,240          \n Total assets                                                                        $     505,851             $     521,066         \n                                                                                                                                     \n Liabilities and stockholders' equity                                                                                                \n Current liabilities:                                                                                                                \n Accounts payable                                                                    $     34,713              $     26,915          \n Accrued expenses and other current liabilities                                            92,540                    94,590          \n Contract liabilities                                                                      91,193                    102,538         \n Total current liabilities                                                                 218,446                   224,043         \n Long-term contract liabilities                                                            21,572                    21,211          \n Deferred income taxes                                                                     1,074                     1,037           \n Operating lease liabilities                                                               35,194                    36,542          \n Other liabilities                                                                         10,069                    9,370           \n Total liabilities                                                                         286,355                   292,203         \n Commitments and Contingencies                                                                                                       \n Stockholders' equity:                                                                                                               \n Common stock - $0 par value; Authorized 300,000,000 shares. Issued 78,212,209             —                         —               \n and 75,917,304 at July 31, 2026 and January 31, 2026, respectively;                                                                 \n Outstanding 73,845,238 and 73,078,376 shares at July 31, 2026 and January 31,                                                       \n 2026, respectively                                                                                                                  \n Additional paid-in capital                                                                406,746                   395,374         \n Treasury stock, at cost 4,366,971 and 2,838,928 shares at July 31, 2026 and               (40,181   )               (26,712   )     \n January 31, 2026, respectively                                                                                                      \n Accumulated deficit                                                                       (156,214  )               (157,281  )     \n Accumulated other comprehensive loss                                                      (15,010   )               (4,837    )     \n Total Cognyte Software Ltd. stockholders' equity                                          195,341                   206,544         \n Noncontrolling interest                                                                   24,155                    22,319          \n Total stockholders’ equity                                                                219,496                   228,863         \n Total liabilities and stockholders’ equity                                          $     505,851             $     521,066         \n\n Table 3                                                                                                                        \n \n                                                                                                                              \n \nCOGNYTE SOFTWARE LTD.                                                                                                         \n \n                                                                                                                              \n \nCondensed Consolidated Statements of Cash Flows                                                                               \n \n                                                                                                                              \n \n(Unaudited)                                                                                                                   \n                                                                                                                                \n                                                                                     Six Months Ended                           \n                                                                                     \nJuly 31,                                  \n (in thousands)                                                                           2026                    2025          \n Cash flows from operating activities:                                                                                          \n Net income                                                                          $    3,111              $    2,876         \n Adjustments to reconcile net income to net cash used in operating activities:                                                  \n Depreciation and amortization                                                            5,848                   5,822         \n Allowance for credit losses                                                              220                     212           \n Stock-based compensation                                                                 11,372                  10,272        \n Provision from deferred income taxes                                                     101                     50            \n Non-cash losses (gains) on derivative financial instruments, net                         200                     (494     )    \n Other non-cash items, net                                                                (751     )              259           \n Changes in operating assets and liabilities:                                                                                   \n Accounts receivable                                                                      1,081                   (5,340   )    \n Contract assets                                                                          (4,615   )              (4,525   )    \n Inventories                                                                              (8,071   )              2,523         \n Prepaid expenses and other assets                                                        (4,661   )              3,461         \n Accounts payable and accrued expenses                                                    1,832                   (4,000   )    \n Contract liabilities                                                                     (11,063  )              (17,131  )    \n Other liabilities                                                                        1,057                   415           \n Other, net                                                                               753                     991           \n Net cash used in operating activities                                                    (3,586   )              (4,609   )    \n                                                                                                                                \n Cash flows from investing activities:                                                                                          \n Purchases of property and equipment                                                      (3,996   )              (5,999   )    \n Sale of noncontrolling minority investment                                               6,546                   —             \n Settlements of derivative financial instruments not designated as hedges                 289                     523           \n Cash paid for capitalized software development costs                                     —                       (707     )    \n Acquisition of business, net of cash acquired                                            —                       (4,275   )    \n Change in restricted bank time deposits, including long-term portion                     —                       106           \n Net cash provided by (used in) investing activities                                      2,839                   (10,352  )    \n                                                                                                                                \n Cash flows from financing activities:                                                                                          \n Purchases of treasury stock                                                              (13,443  )              (14,709  )    \n Repayment of principal portion of finance lease liability                                (185     )              (140     )    \n Net cash used in financing activities                                                    (13,628  )              (14,849  )    \n                                                                                                                                \n Foreign currency effects on cash, cash equivalents, restricted cash, and                 (332     )              1,493         \n restricted cash equivalents                                                                                                    \n Net decrease in cash, cash equivalents, restricted cash and restricted cash              (14,707  )              (28,317  )    \n equivalents                                                                                                                    \n Cash, cash equivalents, restricted cash, and restricted cash equivalents,                116,878                 112,904       \n beginning of period                                                                                                            \n Cash, cash equivalents, restricted cash, and restricted cash equivalents, end       $    102,171            $    84,587        \n of period                                                                                                                      \n                                                                                                                                \n Reconciliation of cash, cash equivalents, restricted cash and restricted cash                                                  \n equivalents at end of period:                                                                                                  \n Cash and cash equivalents                                                           $    102,171            $    84,485        \n Restricted cash and cash equivalents included in restricted cash and cash                —                       102           \n equivalents and restricted bank time deposits                                                                                  \n Total cash, cash equivalents, restricted cash, and restricted cash equivalents      $    102,171            $    84,587        \n\n Table 4                                                                                                                                                                \n \n                                                                                                                                                                      \n \nCOGNYTE SOFTWARE LTD.                                                                                                                                                 \n \n                                                                                                                                                                      \n \nReconciliation of GAAP to Non-GAAP Measures                                                                                                                           \n \n                                                                                                                                                                      \n \n(Unaudited)                                                                                                                                                           \n                                                                                                                                                                        \n                                                                                  Six Months Ended                             Three Months Ended                       \n                                                                                  \n                                            \n                                        \n                                                                                  \nJuly 31,                                    \nJuly 31,                                \n (in thousands, except per share data)                                                 2026                   2025                  2026                   2025         \n Operating income, operating margin and adjusted EBITDA                                                                                                                 \n GAAP Operating income                                                            $    9,065             $    4,898            $    4,659             $    2,745        \n GAAP operating margin                                                                 4.2     %              2.5     %             4.3     %              2.8     %    \n Stock-based compensation expenses                                                     11,372                 10,272                5,664                  5,099        \n Restructuring expenses, net                                                           2,174                  17                    1,762                  17           \n Other Non-GAAP adjustments                                                            309                    388                   151                    162          \n Non-GAAP operating income                                                        $    22,920            $    15,575           $    12,236            $    8,023        \n Depreciation and amortization                                                         5,547                  5,717                 2,660                  2,952        \n Adjusted EBITDA                                                                  $    28,467            $    21,292           $    14,896            $    10,975       \n Non-GAAP operating margin                                                             10.7    %              8.1     %             11.2    %              8.2     %    \n Adjusted EBITDA margin                                                                13.3    %              11.0    %             13.6    %              11.3    %    \n                                                                                                                                                                        \n Net (loss) income attributable to Cognyte Software Ltd. reconciliation                                                                                                 \n GAAP Net income attributable to Cognyte Software Ltd.                            $    1,067             $    488              $    4,106             $    1,469        \n Stock-based compensation expenses                                                     11,372                 10,272                5,664                  5,099        \n Non-GAAP tax adjustments                                                              (817    )              (119    )             (323    )              (732    )    \n Restructuring expenses, net                                                           2,174                  17                    1,762                  17           \n Change in fair value of noncontrolling minority investments, net                      (329    )              —                     —                      —            \n Other Non-GAAP adjustments                                                            309                    388                   151                    162          \n Total adjustments                                                                     12,709                 10,558                7,254                  4,546        \n Non-GAAP Net income attributable to Cognyte Software Ltd.                        $    13,776            $    11,046           $    11,360            $    6,015        \n                                                                                                                                                                        \n Table comparing GAAP and Non-GAAP diluted net (loss) income per share                                                                                                  \n attributable to Cognyte Software Ltd.                                                                                                                                  \n GAAP diluted net income per share attributable to Cognyte Software Ltd.          $    0.01              $    0.01             $    0.06              $    0.02         \n Non-GAAP diluted net income per share attributable to Cognyte Software Ltd.      $    0.19              $    0.15             $    0.15              $    0.08         \n GAAP weighted-average shares used in computing diluted net income per share           74,415                 74,814                74,649                 74,129       \n attributable to Cognyte Software Ltd.                                                                                                                                  \n Non-GAAP diluted weighted-average shares used in computing net income per             74,415                 74,814                74,649                 74,129       \n share attributable to Cognyte Software Ltd.                                                                                                                            \n                                                                                                                                                                        \n Stock-based compensation                                                                                                                                               \n Cost of revenue                                                                  $    1,298             $    1,112            $    658               $    556          \n Research and development, net                                                         1,120                  847                   644                    481          \n Selling, general, and administrative                                                  8,954                  8,313                 4,362                  4,062        \n Total stock-based compensation expense                                           $    11,372            $    10,272           $    5,664             $    5,099        \n                                                                                                                                                                        \n Restructuring expenses, net                                                                                                                                            \n Cost of revenue                                                                  $    167               $    —                $    162               $    —            \n Research and development, net                                                         989                    —                     723                    —            \n Selling, general, and administrative                                                  1,018                  17                    877                    17           \n Total restructuring adjustments                                                  $    2,174             $    17               $    1,762             $    17           \n                                                                                                                                                                        \n Other Non-GAAP adjustments                                                                                                                                             \n Selling, general, and administrative                                             $    7                 $    311              $    —                 $    85           \n Amortization of other acquired intangible assets                                      302                    77                    151                    77           \n Total other Non-GAAP adjustments                                                 $    309               $    388              $    151               $    162          \n\n\nFootnotes\n\n(1) The actual cash tax paid, net of refunds, was $2.6 million and $3.9\nmillion for the three and six months ended July 31, 2026, respectively. The\nactual cash tax paid, net of refunds, was $1.9 million and $2.5 million for\nthe three and six months ended July 31, 2025, respectively.\n\nCognyte Software Ltd. and Subsidiaries\n\nSupplemental Information About Non-GAAP Financial Measures and Other Key\nMetrics\n\nNon-GAAP Financial Measures\n\nThe press release includes reconciliations of certain financial measures not\nprepared in accordance with GAAP, consisting of non-GAAP operating income and\noperating margins, non-GAAP net income attributable to Cognyte, adjusted\nEBITDA and adjusted EBITDA margin, non-GAAP diluted net income per share\nattributable to Cognyte and non-GAAP diluted weighted-average shares used in\ncomputing such measure. The tables above include a reconciliation of each\nnon-GAAP financial measure for completed periods presented in this press\nrelease to the most directly comparable GAAP financial measure.\n\nWe believe these non-GAAP financial measures, used in conjunction with the\ncorresponding GAAP measures, provide investors with useful supplemental\ninformation about the financial performance of our business by:\n\n\n * facilitating the comparison of our financial results and business trends\nbetween periods, by excluding certain items that either can vary significantly\nin amount and frequency, are based upon subjective assumptions, or in certain\ncases are unplanned for or difficult to forecast,\n\n * facilitating the comparison of our financial results and business trends with\nother software companies who publish similar non-GAAP measures, and\n\n * allowing investors to see and understand key supplementary metrics used by our\nmanagement to run our business, including for budgeting and forecasting,\nresource allocation, and compensation matters.\n\nWe also make these non-GAAP financial measures available because our\nmanagement believes they provide meaningful information about the financial\nperformance of our business and are useful to investors for informational and\ncomparative purposes.\n\nNon-GAAP financial measures should not be considered in isolation as\nsubstitutes for, or superior to, comparable GAAP financial measures. The\nnon-GAAP financial measures we present have limitations in that they do not\nreflect all of the amounts associated with our results of operations as\ndetermined in accordance with GAAP, and these non-GAAP financial measures\nshould only be used to evaluate our results of operations in conjunction with\nthe corresponding GAAP financial measures. These non-GAAP financial measures\ndo not represent discretionary cash available to us to invest in the growth of\nour business, and we may in the future incur expenses similar to or in\naddition to the adjustments made in these non-GAAP financial measures. Other\ncompanies may calculate similar non-GAAP financial measures differently than\nwe do, limiting their usefulness as comparative measures.\n\nOur non-GAAP financial measures are calculated by making the following\nadjustments to our GAAP financial measures:\n\nStock-based compensation expenses. We exclude stock-based compensation\nexpenses related to restricted stock awards, stock bonus programs, bonus share\nprograms, and other stock-based awards from our non-GAAP financial measures.\nWe evaluate our performance both with and without these measures because\nstock-based compensation is typically a non-cash expense and can vary\nsignificantly over time based on the timing, size and nature of awards\ngranted, and is influenced in part by certain factors which are generally\nbeyond our control, such as the volatility of the price of our ordinary\nshares. In addition, measurement of stock-based compensation is subject to\nvarying valuation methodologies and subjective assumptions, and therefore we\nbelieve that excluding stock-based compensation from our non-GAAP financial\nmeasures allows for meaningful comparisons of our current operating results to\nour historical operating results and to other companies in our industry.\n\nRestructuring expenses. We exclude restructuring expenses from our non-GAAP\nfinancial measures, which include employee termination costs, facility exit\ncosts, certain professional fees, asset impairment charges, and other costs\ndirectly associated with resource realignments incurred in reaction to\nchanging strategies or business conditions. All of these costs can vary\nsignificantly in amount and frequency based on the nature of the actions as\nwell as the changing needs of our business and we believe that excluding them\nprovides easier comparability of pre- and post-restructuring operating\nresults.\n\nOther adjustments. We exclude from our non-GAAP financial measures fair value\nadjustments related to revenue acquired in a business acquisition,\namortization of acquired technology and other acquired intangible assets,\nacquisition expenses (benefit), separation expenses, business divestiture\ngain/losses, provision for legal claim, rent expense for redundant facilities,\ngains/losses on change in fair value of noncontrolling minority investment,\ngains or losses on sales of property and certain professional fees unrelated\nto our ongoing operations.\n\nNon-GAAP income tax adjustments. We exclude our GAAP provision (benefit) for\nincome taxes from our non-GAAP measures of net income attributable to Cognyte\nSoftware Ltd., and instead include a non-GAAP provision for income taxes.\nCognyte uses a full-year non-GAAP tax rate to compute the non-GAAP tax\nprovision. This full-year non-GAAP tax rate is based on Cognyte’s annual\nGAAP income, adjusted to exclude non-GAAP items, as well as the effects of\nsignificant non-recurring and period-specific tax items which vary in size and\nfrequency. This annual non-GAAP tax rate is based on an evaluation of our\nhistorical and projected profit before tax, taking into account the impact of\nnon-GAAP adjustments, tax law changes, as well as other factors such as our\ncurrent tax structure, existing tax positions and expected recurring tax\nincentives. Our GAAP effective income tax rate can vary significantly from\nyear to year as a result of tax law changes, settlements with tax authorities,\nchanges in the geographic mix of earnings including acquisition activity,\nchanges in the projected realizability of deferred tax assets, and other\nunusual or period-specific events, all of which can vary in size and\nfrequency. We believe that our non-GAAP effective income tax rate removes much\nof this variability and facilitates meaningful comparisons of operating\nresults across periods. We evaluate our non-GAAP effective income tax rate on\nan ongoing basis, and it can change from time to time. Our non-GAAP income tax\nrate can differ materially from our GAAP effective income tax rate.\n\nAdjusted EBITDA. Adjusted EBITDA is a non-GAAP measure defined as net income\n(loss) attributable to non-controlling interest before interest expense,\ninterest income, income taxes, depreciation expense, amortization expense,\nrevenue adjustments, restructuring expenses, acquisition expenses, and other\nexpenses excluded from our non-GAAP financial measures as described above. We\nbelieve that adjusted EBITDA is also commonly used by investors to evaluate\noperating performance between companies because it helps reduce variability\ncaused by differences in capital structures, income taxes, stock-based\ncompensation accounting policies, and depreciation and amortization policies.\n\nOther Key Metrics\n\nRecurring revenue. Cognyte calculates recurring revenue for a period by\ncombining revenue from initial and renewal support, subscription software\nlicenses, and cloud-based SaaS in certain transactions. Recurring revenue is\nthe portion of our revenue that we believe is likely to be renewed in the\nfuture. The recurrence of these revenue streams in future periods depends on a\nnumber of factors including contractual periods and customers' renewal\ndecisions. Cognyte believes that recurring revenue provides investors more\nvisibility into our recurring business in the upcoming years and helpful\nmeasurement of Cognyte’s potential revenue. Cognyte does not consider\nrecurring revenue to be a non-GAAP financial measure because it is calculated\nusing GAAP revenue.\n\nBillings. Cognyte calculates billings for a period by adding changes in\ncontract liabilities, contract assets and unbilled balances in that period to\nrevenue. Cognyte believes that billings help investors better understand sales\nactivity and ongoing business for a particular period, which is not\nnecessarily reflected in revenue. Billings fluctuate from quarter to quarter.\nCognyte does not consider billings to be a non-GAAP financial measure because\nit is calculated using exclusively revenue, contract liabilities, contract\nassets and unbilled balances, all of which are financial measures calculated\nin accordance with GAAP.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260909407419/en/\n(https://www.businesswire.com/news/home/20260909407419/en/)\n\nInvestor Relations Contact \n\nDean Ridlon\n\nCognyte Software Ltd.\n\nIR@cognyte.com (mailto:IR@cognyte.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-09-09T11:30:00.799943782Z","server_sent_at_ms":1788953400799},"received_at":"2026-09-09T11:30:00.856Z","source_url":"https://www.businesswire.com/news/home/20260909407419/en/"},"analysis":{"id":"127795","press_release_id":"138946","analysis_json":{"industry":{"label":"Software","sector":"Information Technology"},"redFlags":["Q2 billings declined to $76.3M from $93.0M a year earlier, attributed by management to contract timing","H1 operating cash flow remained negative at approximately -$3.6M despite positive Q2 cash generation","Approximately $7 million of net unfavorable FX impact weighed on H1 operating profitability","GAAP net income remains modest ($4.1M in Q2) relative to non-GAAP profitability"],"eventType":"earnings","narrative":"Cognyte posted Q2 FYE27 revenue of $109.2 million, up 12% year-over-year, with non-GAAP diluted EPS nearly doubling to $0.15 from $0.08 and adjusted EBITDA up 35.7% to $14.9 million. GAAP diluted EPS tripled to $0.06.\n\nSoftware revenue grew 20.9% to $100.8 million, now more than 92% of total revenue, while recurring revenue rose 18.4% to $56.2 million; management said it has visibility into approximately 85% of the next 12 months' revenue.\n\nThe company narrowed its FYE27 revenue guidance around an unchanged $448 million midpoint, representing roughly 12% growth, and reaffirmed profitability targets of about $68 million adjusted EBITDA and $0.47 non-GAAP diluted EPS, while staying on track for FYE28 goals.\n\nThe balance sheet ended the quarter with $102.2 million in cash and no debt; Cognyte repurchased roughly $13.5 million of stock in the first half, bringing cumulative buybacks to $40.2 million of the $60 million authorized.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Software-led mix shift is driving real operating leverage — EPS nearly doubled on 12% revenue growth, with guidance intact and 85% revenue visibility."},"keyFigures":{"eps":0.15,"revenue":109200000,"guidance":"FYE27 revenue $448M with a range of +/- 2% (~12% YoY growth at midpoint); adjusted EBITDA ~$68M midpoint (~40% YoY growth); non-GAAP diluted EPS $0.47 at midpoint; FYE28 targets reaffirmed","revenueYoy":"12%","customDimensions":{"cash":102200000,"debt":0,"h1_revenue":214700000,"billings_q2":76300000,"h1_buyback_usd":13500000,"h1_revenue_yoy":"11.2%","adjusted_ebitda":14900000,"gaap_net_income":4100000,"gaap_diluted_eps":0.06,"new_customers_h1":40,"software_revenue":100800000,"recurring_revenue":56200000,"revenue_visibility":"approximately 85% of next 12 months' revenue","adjusted_ebitda_yoy":"35.7%","buyback_to_date_usd":40200000,"non_gaap_gross_margin":"73.7%","billings_prior_year_q2":93000000,"buyback_authorized_usd":60000000,"operating_cash_flow_q2":1100000,"non_gaap_operating_income":12200000,"software_revenue_growth_yoy":"20.9%","recurring_revenue_growth_yoy":"18.4%"}},"quotedText":"Cognyte delivered a strong quarter, with broad global momentum and\ncontinued progress across our strategic growth pillars","namedEntities":{"people":[{"name":"Elad Sharon","role":"CEO"},{"name":"David Abadi","role":"CFO"}],"products":[],"companies":[{"name":"Cognyte Software Ltd.","ticker":"CGNT","relationship":"filer"},{"name":"Verint","relationship":"former parent company (spin-off), referenced in risk factors"}],"dollarAmounts":[{"amount":"$109.2 million","context":"Q2 FYE27 revenue"},{"amount":"$100.8 million","context":"Q2 FYE27 total software revenue"},{"amount":"$56.2 million","context":"Q2 FYE27 recurring revenue"},{"amount":"$14.9 million","context":"Q2 FYE27 adjusted EBITDA"},{"amount":"$12.2 million","context":"Q2 FYE27 non-GAAP operating income"},{"amount":"$76.3 million","context":"Q2 FYE27 billings"},{"amount":"$93.0 million","context":"prior-year Q2 billings"},{"amount":"$448 million","context":"FYE27 revenue guidance midpoint"},{"amount":"$68 million","context":"FYE27 adjusted EBITDA guidance midpoint"},{"amount":"$102.2 million","context":"cash at quarter end, with no debt"},{"amount":"$13.5 million","context":"H1 FYE27 share repurchases (~1.5 million shares)"},{"amount":"$40.2 million","context":"shares repurchased since November 2024 out of authorized programs"},{"amount":"$60 million","context":"total share repurchase authorization across programs"}]},"materialImpact":{"score":4,"reasoning":"Strong quarter with accelerating software revenue (+20.9%), significant operating leverage (adjusted EBITDA +35.7%, non-GAAP EPS nearly doubled to $0.15), and a maintained FYE27 outlook with 85% next-12-month revenue visibility. No consensus figures are stated, so a >10% surprise cannot be confirmed, keeping this at 4 rather than 5."},"tickerRelevance":{"others":[],"primary":"CGNT"},"globalImportance":35,"audienceRelevance":22,"eventTypeSecondary":[],"importanceComponents":{"tickerTier":"small/mid-cap","eventGravity":"quarterly earnings with strong profitability expansion, guidance maintained","sectorWeight":"defense and intelligence software niche","householdBrandBoost":false,"retailFavoriteBoost":false}},"event_type":"earnings","event_type_secondary":null,"sentiment":"bullish","material_impact_score":4,"narrative":"Cognyte posted Q2 FYE27 revenue of $109.2 million, up 12% year-over-year, with non-GAAP diluted EPS nearly doubling to $0.15 from $0.08 and adjusted EBITDA up 35.7% to $14.9 million. GAAP diluted EPS tripled to $0.06.\n\nSoftware revenue grew 20.9% to $100.8 million, now more than 92% of total revenue, while recurring revenue rose 18.4% to $56.2 million; management said it has visibility into approximately 85% of the next 12 months' revenue.\n\nThe company narrowed its FYE27 revenue guidance around an unchanged $448 million midpoint, representing roughly 12% growth, and reaffirmed profitability targets of about $68 million adjusted EBITDA and $0.47 non-GAAP diluted EPS, while staying on track for FYE28 goals.\n\nThe balance sheet ended the quarter with $102.2 million in cash and no debt; Cognyte repurchased roughly $13.5 million of stock in the first half, bringing cumulative buybacks to $40.2 million of the $60 million authorized.","key_figures":{"eps":0.15,"revenue":109200000,"guidance":"FYE27 revenue $448M with a range of +/- 2% (~12% YoY growth at midpoint); adjusted EBITDA ~$68M midpoint (~40% YoY growth); non-GAAP diluted EPS $0.47 at midpoint; FYE28 targets reaffirmed","revenueYoy":"12%","customDimensions":{"cash":102200000,"debt":0,"h1_revenue":214700000,"billings_q2":76300000,"h1_buyback_usd":13500000,"h1_revenue_yoy":"11.2%","adjusted_ebitda":14900000,"gaap_net_income":4100000,"gaap_diluted_eps":0.06,"new_customers_h1":40,"software_revenue":100800000,"recurring_revenue":56200000,"revenue_visibility":"approximately 85% of next 12 months' revenue","adjusted_ebitda_yoy":"35.7%","buyback_to_date_usd":40200000,"non_gaap_gross_margin":"73.7%","billings_prior_year_q2":93000000,"buyback_authorized_usd":60000000,"operating_cash_flow_q2":1100000,"non_gaap_operating_income":12200000,"software_revenue_growth_yoy":"20.9%","recurring_revenue_growth_yoy":"18.4%"}},"named_entities":{"people":[{"name":"Elad Sharon","role":"CEO"},{"name":"David Abadi","role":"CFO"}],"products":[],"companies":[{"name":"Cognyte Software Ltd.","ticker":"CGNT","relationship":"filer"},{"name":"Verint","relationship":"former parent company (spin-off), referenced in risk factors"}],"dollarAmounts":[{"amount":"$109.2 million","context":"Q2 FYE27 revenue"},{"amount":"$100.8 million","context":"Q2 FYE27 total software revenue"},{"amount":"$56.2 million","context":"Q2 FYE27 recurring revenue"},{"amount":"$14.9 million","context":"Q2 FYE27 adjusted EBITDA"},{"amount":"$12.2 million","context":"Q2 FYE27 non-GAAP operating income"},{"amount":"$76.3 million","context":"Q2 FYE27 billings"},{"amount":"$93.0 million","context":"prior-year Q2 billings"},{"amount":"$448 million","context":"FYE27 revenue guidance midpoint"},{"amount":"$68 million","context":"FYE27 adjusted EBITDA guidance midpoint"},{"amount":"$102.2 million","context":"cash at quarter end, with no debt"},{"amount":"$13.5 million","context":"H1 FYE27 share repurchases (~1.5 million shares)"},{"amount":"$40.2 million","context":"shares repurchased since November 2024 out of authorized programs"},{"amount":"$60 million","context":"total share repurchase authorization across programs"}]},"model_name":"glm-5.3-flash","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-09-09T11:33:01.239Z","global_importance":35,"audience_relevance":22,"importance_components":{"tickerTier":"small/mid-cap","eventGravity":"quarterly earnings with strong profitability expansion, guidance maintained","sectorWeight":"defense and intelligence software niche","householdBrandBoost":false,"retailFavoriteBoost":false}},"durationMs":87813,"modelName":"glm-5.3-flash"}}