Cognyte Software Ltd. (NASDAQ: CGNT) shares were surging in value following the release of the company’s latest financial results. The stock’s 19.22% rise to $9.80 as of the most recent check showed that investors trusted CGNT’s performance.
Good Financial Progress in the Fiscal Year 2025
Cognyte Software (CGNT) presented the financial data for the fiscal year and three months ending January 31, 2025 (Q4 FYE25 and FYE25). In the fourth quarter of FYE25, the company recorded $94.5 million in revenue, which was 13% more than the previous year. On the other hand, FYE25’s $350.6 million in full-year revenue was 12% more than the prior fiscal year.
Additionally, the profitability rose dramatically as the GAAP net loss for Q4 FYE25 fell sharply to $0.2 million from the $1.9 million loss at the same time previous year. Similarly, the full-year GAAP net loss for FYE25 saw a decline from $11.6 million to $7.2 million.
A Stronger Financial Position
Cognyte Software demonstrated extreme financial leverage with a notable increase in Adjusted EBITDA. In FYE25, adjusted EBITDA increased 114% to $9.3 million in the fourth quarter. From $9.0 million for the previous fiscal year to $29.1 million for the whole fiscal year, adjusted EBITDA more than doubled.
Cognyte Software also provided impressive quarterly and annual cash flow data that also improved to $9.8 million and $34.6 million, respectively. Net cash created by operating operations for the fourth quarter of FYE25 was $18.7 million and $46.8 million for the entire year.
Strategic Development and Prospects
The company’s financial results demonstrate the worth of its inventions and the customer confidence it has earned. Cognyte Software is strengthening its relationships with existing clients while branching out into new markets. CGNT is committed to helping customers stay ahead of emerging security threats by leveraging cutting-edge technologies, including artificial intelligence.
Cognyte Software ended the 2025 fiscal year with a better bank sheet, increased profitability, and double-digit sales growth. With profitability predicted to greatly exceed sales growth, CGNT expects another year of double-digit revenue growth in fiscal 2026.
