Cognyte Software Ltd (NASDAQ:CGNT) stock fell 2.11% (As on April 3, 12:20:16 AM UTC-4, Source: Google Finance) after the company reported better-than-expected fourth quarter results and issued upbeat guidance for fiscal 2026. As of January 31, 2025, cash, cash equivalents and restricted cash were $113.1 million, compared to $83.1 million at January 31, 2024. During the three and twelve months ended January 31, 2025, net cash provided by operating activities was $18.7 million and $46.8 million, respectively, compared to net cash provided by operating activities of $9.8 million and $34.6 million, respectively, in the same periods last fiscal year.

Moreover, Q4 FYE25 and FYE25 Software revenue increased by $6.0 million and by $12.3 million, respectively, compared to the same periods last year. The increase was driven by increased sales of appliance software, perpetual licenses and, to a lesser degree, subscriptions. Q4 FYE25 and FYE25 Software services revenue increased by $3.6 million and $15.8 million, respectively, compared to the same periods last year. Q4 FYE25 and FYE25 Professional services and other revenue increased by $1.2 million and $9.1 million, respectively, compared to the same period last year. The increase during FYE25 was primarily related to the timing and scale of deployments. Q4 FYE25 Recurring Revenue increased by 10.3% to $47.3 million, compared to the same period last year. Q4 FYE25 Non-GAAP Gross profit and margin were $67.6 million and 71.5%, respectively, an increase of $9.8 million and 250 bps improvement compared to the same period last year. Q4 FYE25 Billings were $95.0 million, consistent with last year. Total Backlog at the end of Q4 FYE25 was $415.5 million and short-term Backlog was $227.9 million. Total RPO $545.8 million at the end of Q4 FYE25.

CGNT in the fourth quarter of FY25 has reported the adjusted earnings per share of 3 cents, beating the analysts’ estimates for the adjusted earnings per share of 1 cents. The company had reported the adjusted revenue growth of 13 percent to $94.5 million in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $93.15 billion. Q4 FYE25 Adjusted EBITDA increased by approximately 114% to $9.3 million, compared to $4.3 million in the same period last year.

For fiscal 2026, Cognyte expects revenue of approximately $392 million, well above analyst projections of $373.5 million. The company anticipates adjusted EBITDA of around $43 million and non-GAAP diluted EPS of $0.16 at the midpoint of its revenue outlook.