#USA #Cyber Security #Commvault #Tinton Falls #Fiscal 2026

Commvault Financial Results Overview

Commvault (Nasdaq: CVLT) has announced its financial results for the fiscal second quarter ending September 30, 2025, showcasing an impressive increase in revenue and annualized recurring revenue (ARR). The total revenues reached $276 million, marking an 18% increase year-over-year, underscoring the company's strong market position and performance amidst the evolving digital landscape.

Key Financial Highlights

1. Revenue Growth: The firm recorded total revenues of $276 million compared to the previous year's quarter, representing an 18% increase. This robust growth can be attributed to the increasing demand for cyber resilience and data management solutions offered by Commvault.

2. Annualized Recurring Revenue: Commvault's ARR surged to $1,043 million, up 22% from the previous year. Notably, the company achieved this milestone ahead of its target of March 2026, reflecting strong adoption of its subscription-based services.

3. Operating Cash Flow: The operating cash flow was reported at $77 million, with free cash flow reaching $74 million. These figures indicate a healthy cash generation capacity, allowing Commvault to reinvest in growth initiatives and enhance shareholder value.

4. SaaS Revenue Growth: Subscription revenues rose to $173 million, an increase of 29%. The Software-as-a-Service (SaaS) segment demonstrated particularly strong performance with revenues increasing by 61%, showcasing the effectiveness of Commvault's cloud-first approach.

5. Operating Income: The income from operations was noted at $12 million, resulting in an operating margin of 4.5%. Meanwhile, the non-GAAP EBIT margin was reported at 18.6%, reflecting the firm's strong operational efficiency.

Business Developments

Alongside financial successes, several strategic advancements were reported:

• - Acquisition of Satori Cyber Ltd.: Commvault completed the acquisition of Satori Cyber, which enhances its cyber-resiliency capabilities. This move positions Commvault strongly in the data protection sector by aiding enterprises in managing AI-related risks.
• - Launch of Clumio for Apache Iceberg: This product was introduced on AWS, designed to provide resilience for data lakehouses focused on AI and analytics, demonstrating Commvault's innovation in the sector.
• - Expansion of HyperScale Portfolio: The introduction of HyperScale Edge and HyperScale Flex offers enhanced data protection options for enterprises with varying needs, from remote locations to massive-scale operations.
• - New Integrations: Collaborations with BeyondTrust to improve credential security reflect Commvault's commitment to enhancing security posture for its customers, ultimately aiming to provide more comprehensive solutions.

Outlook for Upcoming Quarters

Looking ahead, Commvault has provided guidance for the third quarter of Fiscal Year 2026:

• - Total revenue projections range between $298 million and $300 million.
• - Subscription revenue estimates are set between $195 million and $197 million.
• - Non-GAAP gross margin is anticipated to be at 80% to 81%, while the EBIT margin is expected to be between 18% and 19%.

For the full fiscal year, total revenue is expected to fall between $1,161 million and $1,165 million, with continued growth in ARR and subscription-based revenues as a result of Commvault’s strategic investments and innovations in cybersecurity solutions.

In conclusion, Commvault's Q2 results indicate a positive trajectory, bolstered by effective operational strategies, significant ARR growth, and innovative product offerings that cater to an increasingly digital and security-conscious market environment. With strong guidance and strategic acquisitions, Commvault is well-poised for sustainable growth in the competitive technology landscape.