Commvault Announces Second Quarter Fiscal 2026 Financial Results
Total revenues of $276 million, up 18% year over year
Annualized recurring revenue (ARR) 1 surpassed $1 billion milestone, ahead of March 2026 target
Operating cash flow of $77 million, free cash flow 2 of $74 million
TINTON FALLS, N.J., Oct. 28, 2025 /PRNewswire/ -- Commvault (Nasdaq: CVLT) today announced its financial results for the fiscal second quarter ended September 30, 2025.
"Commvault delivered a strong quarter fueled by solid ARR and SaaS growth that accelerated a key milestone for the company – achieving $1 billion in total ARR – two quarters earlier than projected," said Sanjay Mirchandani, President and CEO, Commvault. "As enterprises globally rely on Commvault to be resilient, our cloud-first, AI-enabled cyber resilience platform is more relevant than ever."
Notes are contained at the end of this press release
Second Quarter Fiscal 2026 Highlights -
Recent Business Highlights -
Financial Outlook for Third Quarter and Full Year Fiscal 2026 3-
We are providing the following guidance for the third quarter of fiscal year 2026, based on current macroeconomic conditions:
We are providing the following updated guidance for the full fiscal year 2026, based on current macroeconomic conditions:
The above statements are based on the incorporation of actual second quarter results, current targets and the acquisition of Satori Cyber Ltd. which closed on August 28, 2025. These statements are forward-looking and made pursuant to the safe harbor provisions discussed in detail below. We do not undertake any obligation to update these forward-looking statements. Actual results may differ materially from anticipated results.
Conference Call Information
Commvault will host a conference call today, October 28, 2025 at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time) to discuss quarterly results. The live webcast and call dial-in numbers can be accessed by registering under the "News & Events" section of Commvault's website at ir.commvault.com under the "Investor Events" heading. An archived webcast of this conference call will also be available following the call.
About Commvault
Commvault (Nasdaq: CVLT) is the gold standard in cyber resilience, helping more than 100,000 organizations keep data safe and businesses resilient and moving forward. Today, Commvault offers the only cyber resilience platform that combines the best data security and rapid recovery at enterprise scale across any workload, anywhere—at the lowest TCO.
Safe Harbor Statement
This press release may contain forward-looking statements, including statements regarding financial projections, which are subject to risks and uncertainties, such as competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of software products and related services, general economic conditions, outcome of litigation and others. For a discussion of these and other risks and uncertainties affecting Commvault's business, see "Item 1A. Risk Factors" in our annual report on Form 10-K and "Item 1A. Risk Factors" in our most recent quarterly report on Form 10-Q. Statements regarding Commvault's beliefs, plans, expectations or intentions regarding the future are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from anticipated results. Commvault does not undertake to update its forward-looking statements.
Overview
($ in thousands)
Q2'25
Q3'25
Q4'25
Q1'26
Q2'26
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Subscription:
Term-based license
$ 84,427
22 %
$ 97,625
21 %
$ 107,954
33 %
$ 109,282
36 %
$ 92,647
10 %
SaaS
49,611
75 %
60,696
82 %
65,274
69 %
72,445
66 %
80,018
61 %
Total subscription
134,038
37 %
158,321
39 %
173,228
45 %
181,727
46 %
172,665
29 %
Perpetual license
10,522
(27) %
16,423
10 %
14,962
(2) %
7,335
(47) %
12,073
15 %
Customer support
77,688
1 %
77,078
— %
76,509
(1) %
79,021
4 %
80,229
3 %
Other services
11,030
(7) %
10,808
(1) %
10,340
(8) %
13,895
31 %
11,221
2 %
Total revenues
$ 233,278
16 %
$ 262,630
21 %
$ 275,039
23 %
$ 281,978
26 %
$ 276,188
18 %
Constant Currency - Revenue
($ in thousands)
The constant currency impact is calculated using the average foreign exchange rates from the prior year period and applying these rates to foreign-denominated revenues in the current corresponding period. Commvault analyzes revenue growth on a constant currency basis in order to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations. The non-GAAP financial measures presented in this press release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.
Q2'25
Revenue as
Reported
(GAAP)
Q2'26
Revenue as
Reported
(GAAP)
Constant
Currency
Impact
% Change Y/Y
(GAAP)
% Change Y/Y
Constant
Currency
Subscription:
Term-based license
$ 84,427
$ 92,647
$ (1,227)
10 %
8 %
SaaS
49,611
80,018
(1,142)
61 %
59 %
Total subscription
134,038
172,665
(2,369)
29 %
27 %
Perpetual license
10,522
12,073
(313)
15 %
12 %
Customer support
77,688
80,229
(1,512)
3 %
1 %
Other services
11,030
11,221
4
2 %
2 %
Total
$ 233,278
$ 276,188
$ (4,190)
18 %
17 %
Disaggregation of Revenues
($ in thousands)
Our Americas region includes the United States, Canada, and Latin America. Our International region primarily includes Europe, Middle East, Africa, Australia, India, Southeast Asia, and China.
Q2'25
Q3'25
Q4'25
Q1'26
Q2'26
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Americas
$ 144,408
20 %
$ 155,435
24 %
$ 169,384
29 %
$ 170,928
23 %
$ 168,125
16 %
International
88,870
10 %
107,195
17 %
105,655
15 %
111,050
29 %
108,063
22 %
Total revenues
$ 233,278
16 %
$ 262,630
21 %
$ 275,039
23 %
$ 281,978
26 %
$ 276,188
18 %
Total ARR, Subscription ARR and SaaS ARR 1
($ in thousands)
Q2'25
Q3'25
Q4'25
Q1'26
Q2'26
Total ARR 1
$ 853,265
$ 889,628
$ 930,051
$ 996,202
$ 1,043,295
Subscription ARR 1
$ 687,050
$ 734,212
$ 780,098
$ 843,873
$ 893,707
SaaS ARR 1
$ 214,832
$ 258,957
$ 281,045
$ 306,874
$ 335,669
Constant Currency - ARR 1
($ in thousands)
The constant currency impact on ARR 1 is calculated using the foreign exchange spot rates from March 31, 2025 and applying these rates to foreign-denominated results in the periods presented.
Q2'25
Q3'25
Q4'25
Q1'26
Q2'26
Total ARR 1 as Reported
$ 853,265
$ 889,628
$ 930,051
$ 996,202
$ 1,043,295
Total ARR 1 using March 31, 2025 rates
$ 838,074
$ 899,365
$ 930,051
$ 969,693
$ 1,016,697
Subscription ARR 1 as Reported
$ 687,050
$ 734,212
$ 780,098
$ 843,873
$ 893,707
Subscription ARR 1 using March 31, 2025 rates
$ 675,330
$ 741,526
$ 780,098
$ 822,695
$ 872,065
SaaS ARR 1 as Reported
$ 214,832
$ 258,957
$ 281,045
$ 306,874
$ 335,669
SaaS ARR 1 using March 31, 2025 rates
$ 210,585
$ 261,416
$ 281,045
$ 299,017
$ 327,781
Additional Financial Information
Commvault Systems, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended
September 30,
Six Months Ended
September 30,
2025
2024
2025
2024
Revenues:
Subscription:
Term-based license
$ 92,647
$ 84,427
$ 201,929
$ 164,832
Software-as-a-service
80,018
49,611
152,463
93,286
Total subscription
172,665
134,038
354,392
258,118
Perpetual license
12,073
10,522
19,408
24,258
Customer support
80,229
77,688
159,250
153,976
Other services
11,221
11,030
25,116
21,598
Total revenues
276,188
233,278
558,166
457,950
Cost of revenues:
Subscription:
Term-based license
2,414
2,371
4,656
4,149
Software-as-a-service
29,187
17,161
55,159
32,923
Total subscription
31,601
19,532
59,815
37,072
Perpetual license
194
441
439
778
Customer support
14,847
15,311
29,054
29,574
Other services
8,402
7,578
16,513
15,226
Total cost of revenues
55,044
42,862
105,821
82,650
Gross margin
221,144
190,416
452,345
375,300
Operating expenses:
Sales and marketing
122,240
101,947
244,719
197,897
Research and development
39,859
33,839
79,921
66,943
General and administrative
42,553
34,173
83,823
64,968
Depreciation and amortization
2,572
2,013
5,179
3,941
Restructuring
1,429
566
1,666
5,245
Change in contingent consideration
—
—
(545)
—
Impairment charges
—
2,910
—
2,910
Total operating expenses
208,653
175,448
414,763
341,904
Income from operations
12,491
14,968
37,582
33,396
Interest income
3,087
1,732
5,096
3,534
Interest expense
(637)
(105)
(915)
(209)
Other income, net
159
65
220
593
Income before income taxes
15,100
16,660
41,983
37,314
Income tax expense
370
1,095
3,757
3,222
Net income
$ 14,730
$ 15,565
$ 38,226
$ 34,092
Net income per common share:
Basic
$ 0.33
$ 0.36
$ 0.86
$ 0.78
Diluted
$ 0.33
$ 0.35
$ 0.84
$ 0.76
Weighted average common shares outstanding:
Basic
44,406
43,770
44,366
43,724
Diluted
45,195
45,114
45,264
45,095
Commvault Systems, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
September 30,
2025
March 31,
2025
ASSETS
Current assets:
Cash and cash equivalents
$ 1,063,555
$ 302,103
Trade accounts receivable, net
234,806
251,995
Assets held for sale
—
34,770
Other current assets
54,602
46,189
Total current assets
1,352,963
635,057
Deferred tax assets, net
151,936
133,378
Property and equipment, net
9,740
8,294
Operating lease assets
28,952
10,124
Deferred commissions cost
85,156
79,309
Intangible assets, net
22,226
20,737
Goodwill
210,316
185,255
Other assets
55,639
46,112
Total assets
$ 1,916,928
$ 1,118,266
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 359
$ 373
Accrued liabilities
106,486
147,133
Current portion of operating lease liabilities
5,523
4,614
Deferred revenue
422,947
402,930
Total current liabilities
535,315
555,050
Convertible notes, net
878,927
—
Deferred revenue, less current portion
252,608
223,282
Deferred tax liabilities
1,504
1,384
Long-term operating lease liabilities
24,038
6,338
Other liabilities
14,076
7,090
Total stockholders' equity
210,460
325,122
Total liabilities and stockholders' equity
$ 1,916,928
$ 1,118,266
Commvault Systems, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
September 30,
Six Months Ended
September 30,
2025
2024
2025
2024
Cash flows from operating activities
Net income
$ 14,730
$ 15,565
$ 38,226
$ 34,092
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
2,981
2,042
5,673
3,999
Noncash stock-based compensation
32,224
26,403
62,404
52,807
Noncash operating lease expense
1,774
1,369
3,410
2,948
Noncash change in fair value of equity securities
(138)
(65)
(199)
(135)
Noncash change in fair value of contingent consideration
—
—
(545)
—
Noncash adjustment on headquarters sale leaseback
—
—
495
—
Noncash impairment charges
—
2,910
—
2,910
Deferred income taxes
5,668
(3,689)
9,576
(8,483)
Amortization of deferred commissions cost
11,221
8,019
22,210
15,477
Changes in operating assets and liabilities:
Trade accounts receivable, net
20,258
3,432
24,006
23,113
Operating lease liabilities
(1,739)
(1,671)
(3,647)
(3,973)
Other current assets and Other assets
(8,281)
(2,139)
(5,903)
(4,342)
Deferred commissions cost
(13,712)
(9,151)
(28,784)
(17,420)
Accounts payable
232
(334)
(88)
(205)
Accrued liabilities
2,030
11,179
(45,230)
(11,832)
Deferred revenue
10,513
2,392
27,953
11,830
Other liabilities
(992)
(673)
(1,107)
(505)
Net cash provided by operating activities
76,769
55,589
108,450
100,281
Cash flows from investing activities
Purchase of property and equipment
(3,187)
(1,848)
(5,066)
(2,711)
Purchase of equity securities
(482)
(108)
(6,626)
(581)
Proceeds from sale of headquarters, net
—
—
34,849
—
Business combination, net of cash acquired
(26,015)
—
(26,015)
(21,000)
Net cash used in investing activities
(29,684)
(1,956)
(2,858)
(24,292)
Cash flows from financing activities
Repurchase of common stock
(131,023)
(51,903)
(146,073)
(103,295)
Proceeds from stock-based compensation plans
6,974
5,760
6,974
11,100
Proceeds from issuance of convertible notes
900,000
—
900,000
—
Purchase of capped calls
(99,630)
—
(99,630)
—
Payment of debt issuance costs
(20,396)
—
(22,242)
—
Other
(18)
—
(30)
—
Net cash provided by (used in) financing activities
655,907
(46,143)
638,999
(92,195)
Effects of exchange rate — changes in cash
(2,671)
7,710
16,861
6,523
Net increase (decrease) in cash and cash equivalents
700,321
15,200
761,452
(9,683)
Cash and cash equivalents at beginning of period
363,234
287,871
302,103
312,754
Cash and cash equivalents at end of period
$ 1,063,555
$ 303,071
$ 1,063,555
$ 303,071
Supplemental disclosures of noncash activities
Issuance of common stock for business combination
$ —
$ —
$ —
$ 4,900
Operating lease liabilities arising from obtaining right-of-use assets
$ 1,913
$ 2,499
$ 22,165
$ 4,467
Debt issuance costs accrued but not paid, included in accrued liabilities
$ 984
$ —
$ 984
$ —
Commvault Systems, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
(Unaudited)
Three Months Ended
September 30,
Six Months Ended
September 30,
2025
2024
2025
2024
Non-GAAP financial measures and reconciliation:
GAAP income from operations
$ 12,491
$ 14,968
$ 37,582
$ 33,396
Noncash stock-based compensation 5
31,813
26,223
61,918
48,619
FICA and payroll tax expense related to stock-based compensation 6
838
772
2,637
2,135
Restructuring 7
1,429
566
1,666
5,245
Amortization of intangible assets 8
1,140
573
2,211
1,146
Litigation settlement 9
—
—
—
675
Business combination costs 10
1,890
1,736
1,890
1,925
Change in contingent consideration 11
—
—
(545)
—
Adjustment on headquarters sale leaseback 12
—
—
495
—
Noncash impairment charges 13
—
2,910
—
2,910
Other nonrecurring charges 14
1,805
—
1,805
—
Non-GAAP income from operations
$ 51,406
$ 47,748
$ 109,659
$ 96,051
GAAP net income
$ 14,730
$ 15,565
$ 38,226
$ 34,092
Noncash stock-based compensation 5
31,813
26,223
61,918
48,619
FICA and payroll tax expense related to stock-based compensation 6
838
772
2,637
2,135
Restructuring 7
1,429
566
1,666
5,245
Amortization of intangible assets 8
1,140
573
2,211
1,146
Litigation settlement 9
—
—
—
675
Business combination costs 10
1,890
1,736
1,890
1,925
Change in contingent consideration 11
—
—
(545)
—
Adjustment on headquarters sale leaseback 12
—
—
495
—
Noncash impairment charges 13
—
2,910
—
2,910
Other nonrecurring charges 14
1,805
—
1,805
—
Non-GAAP provision for income taxes adjustment 15
(12,593)
(10,770)
(23,617)
(20,770)
Non-GAAP net income
$ 41,052
$ 37,575
$ 86,686
$ 75,977
GAAP diluted earnings per share
$ 0.33
$ 0.35
$ 0.84
$ 0.76
Noncash stock-based compensation 5
0.70
0.58
1.37
1.08
FICA and payroll tax expense related to stock-based compensation 6
0.02
0.02
0.06
0.05
Restructuring 7
0.03
0.01
0.04
0.12
Amortization of intangible assets 8
0.03
0.01
0.05
0.03
Litigation settlement 9
—
—
—
0.01
Business combination costs 10
0.04
0.04
0.04
0.04
Change in contingent consideration 11
—
—
(0.01)
—
Adjustment on headquarters sale leaseback 12
—
—
0.01
—
Noncash impairment charges 13
—
0.06
—
0.06
Other nonrecurring charges 14
0.04
—
0.04
—
Non-GAAP provision for income taxes adjustment 15
(0.28)
(0.24)
(0.52)
(0.47)
Non-GAAP diluted earnings per share
$ 0.91
$ 0.83
$ 1.92
$ 1.68
GAAP diluted weighted average shares outstanding
45,195
45,114
45,264
45,095
Three Months Ended
September 30,
Six Months Ended
September 30,
2025
2024
2025
2024
Non-GAAP gross margin reconciliation:
GAAP gross margin
80.1 %
81.6 %
81.0 %
82.0 %
Cost of revenues related to noncash stock-based compensation
0.4 %
0.6 %
0.5 %
0.6 %
Non-GAAP gross margin
80.5 %
82.2 %
81.5 %
82.6 %
Three Months Ended
September 30,
Six Months Ended
September 30,
2025
2024
2025
2024
Non-GAAP free cash flow reconciliation:
GAAP cash provided by operating activities
$ 76,769
$ 55,589
$ 108,450
$ 100,281
Purchase of property and equipment
(3,187)
(1,848)
(5,066)
(2,711)
Non-GAAP free cash flow
$ 73,582
$ 53,741
$ 103,384
$ 97,570
Use of Non-GAAP Financial Measures
Commvault has provided in this press release the following non-GAAP financial measures: non-GAAP income from operations (EBIT), non-GAAP income from operations margin, non-GAAP gross margin, non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP free cash flow, annualized recurring revenue (ARR), subscription ARR, SaaS ARR and SaaS net dollar retention rate (NRR). This financial information has not been prepared in accordance with GAAP. Commvault uses these non-GAAP financial measures internally to understand, manage and evaluate its business and make operating decisions. Commvault believes that the use of these non-GAAP financial measures, when used as a supplement to GAAP financial measures, provides an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing its financial results with other companies in Commvault's industry, many of which present similar non-GAAP financial measures to the investment community. Commvault has also provided its revenues, ARR, subscription ARR and SaaS ARR on a constant currency basis. Commvault analyzes revenue growth, ARR, subscription ARR and SaaS ARR on a constant currency basis in order to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations.
All of these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which are included in this press release.
Non-GAAP income from operations and non-GAAP income from operations margin. These non-GAAP financial measures exclude noncash stock-based compensation charges and additional Federal Insurance Contribution Act (FICA) and related payroll tax expense incurred by Commvault when employees exercise in-the-money stock options or vest in restricted stock awards. Commvault has also excluded restructuring costs, noncash amortization of intangible assets, business combination costs, the change in the estimated fair value of contingent consideration, adjustments from the sale and leaseback of headquarters and other nonrecurring charges from its non-GAAP results. These adjustments are further discussed in the reconciliation of GAAP to non-GAAP financial measures. Commvault believes that these non-GAAP financial measures are useful metrics for management and investors because they compare Commvault's core operating results over multiple periods. When evaluating the performance of Commvault's operating results and developing short- and long-term plans, Commvault does not consider such expenses.
Although noncash stock-based compensation and the additional FICA and related payroll tax expenses are necessary to attract and retain employees, Commvault places its primary emphasis on stockholder dilution as compared to the accounting charges related to such equity compensation plans. Commvault believes that providing non-GAAP financial measures that exclude noncash stock-based compensation expense and the additional FICA and related payroll tax expenses incurred on stock option exercises and vesting of restricted stock awards allow investors to make meaningful comparisons between Commvault's operating results and those of other companies.
There are a number of limitations related to the use of non-GAAP income from operations and non-GAAP income from operations margin. The most significant limitation is that these non-GAAP financial measures exclude certain operating costs, primarily related to noncash stock-based compensation, which is of a recurring nature. Noncash stock-based compensation has been, and will continue to be for the foreseeable future, a significant recurring expense in Commvault's operating results. In addition, noncash stock-based compensation is an important part of Commvault's employees' compensation and can have a significant impact on their performance. The following table presents the stock-based compensation expense included in cost of revenues, sales and marketing, research and development and general and administrative ($ in thousands):
Three Months Ended
September 30,
Six Months Ended
September 30,
2025
2024
2025
2024
Cost of revenues
$ 1,323
$ 1,374
$ 2,572
$ 2,955
Sales and marketing
12,757
11,631
25,343
21,117
Research and development
7,752
5,555
14,822
10,719
General and administrative
9,981
7,663
19,181
13,828
Stock-based compensation expense
$ 31,813
$ 26,223
$ 61,918
$ 48,619
The table above excludes stock-based compensation expense related to the Company's restructuring activities described below in Note 7.
The components that Commvault excludes in its non-GAAP financial measures may differ from the components that its peer companies exclude when they report their non-GAAP financial measures. Due to the limitations related to the use of non-GAAP measures, Commvault's management assists investors by providing a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure. Commvault's management uses non-GAAP financial measures only in addition to, and in conjunction with, results presented in accordance with GAAP.
Non-GAAP net income and non-GAAP diluted earnings per share (EPS). In addition to the adjustments discussed in non-GAAP income from operations, non-GAAP net income and non-GAAP diluted EPS incorporates a non-GAAP effective tax rate of 24%.
Commvault anticipates that in any given period its non-GAAP tax rate may be either higher or lower than the GAAP tax rate as evidenced by historical fluctuations. The GAAP tax rates in recent fiscal years were not meaningful percentages due to the dollar amount of GAAP pre-tax income. For the same reason as the GAAP tax rates, the estimated cash tax rates in recent fiscal years are not meaningful percentages. Commvault defines its cash tax rate as the total amount of cash income taxes payable for the fiscal year divided by consolidated GAAP pre-tax income. Over time, Commvault believes its GAAP and cash tax rates will align.
Commvault considers non-GAAP net income and non-GAAP diluted EPS useful metrics for Commvault management and its investors for the same basic reasons that Commvault uses non-GAAP income from operations and non-GAAP income from operations margin. In addition, the same limitations as well as management actions to compensate for such limitations described above also apply to Commvault's use of non-GAAP net income and non-GAAP diluted EPS.
Non-GAAP gross margin. Commvault defines this non-GAAP financial measure as GAAP gross margin adjusted to exclude cost of revenues related to noncash stock-based compensation.
Non-GAAP free cash flow. Commvault defines this non-GAAP financial measure as net cash provided by operating activities less purchases of property and equipment. Commvault considers non-GAAP free cash flow a useful metric for Commvault management and its investors in evaluating Commvault's ability to generate cash from its business operations. In addition, the same limitations as well as management actions to compensate for such limitations described above also apply to Commvault's use of non-GAAP free cash flow.
Forward-looking non-GAAP measures. In this press release, Commvault presents certain forward-looking non-GAAP metrics. Commvault cannot provide a reconciliation to the comparable GAAP metric without unreasonable efforts, as certain financial information, the probable significance of which may be material, is not available and cannot be reasonably estimated.
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SOURCE COMMVAULT