Cognyte Software Ltd (NASDAQ:CGNT), a global leader in investigative analytics software, stock fell 3.25% (As on September 11, 11:31:31 AM UTC-4, Source: Google Finance) though the company reported a robust performance in the second quarter of 2025, with significant revenue growth and raised financial guidance for the fiscal year. Non-GAAP gross profit increased by 13% year-over-year, demonstrating effective margin expansion. The non-GAAP gross profit for the quarter was $60.2 million, an increase of $6.9 million or 12.9% year-over-year growth. The company generated $8 million of positive adjusted EBITDA in Q2, more than three times the amount generated in the same quarter last year. Cognyte Software Ltd (CGNT) has secured three substantial follow-on orders, each valued at over $10 million, from national security and law enforcement agencies. In Q2, the recurring revenue came at $46.6 million versus $41.2 million in Q2 last year, representing about a 40% increase and related to incremental subscription revenue. The cash position is strong with almost $100 million of cash, up over $16 million from year-end and no debt. The increase in the cash balance was primarily due to cash flow from operations the company generated during the first half of the year. The short- and long-term contract liabilities, also known as deferred revenue, are strong and were $111.4 million at the end of Q2.

CGNT in the second quarter of FY 25 has reported the adjusted earnings per share of 5 cents, beating the analysts’ estimates for the adjusted earnings per share of 2 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 10 percent to $84.41 million in the second quarter of FY 25, beating the analysts’ estimates for revenue by 0.02%. Software and software service revenue declined 5% sequentially, marking the first decrease since Q3 of fiscal ’23.

Meanwhile, recently, Cognyte was recognized for LUMINAR AI Insights, one of the AI-driven Threat Intelligence solutions, in an August 2024 Gartner report, Emerging Tech, The Future of Cyber Threat Intelligence Research. In this report, Gartner assesses trends impacting the threat intelligence domain, predicting that GenAI-based capabilities will become key as this technology will support faster mean time to respond by more quickly providing indicators about threats and the surrounding context.

For fiscal 2025, the company expects revenue to be of $347 million with a range of +/- 2%, which is approximately 11% year-over-year growth at midpoint, Diluted EPS of ($0.03) and Adjusted EBITDA of $25 million at the midpoint of the revenue range.