EPS of $0.69 decreased by 75.8% from previous year
Gross margin of 82.6%
Net income of 30.99M
""As customers' threats grow and become more sophisticated, we're supporting GDPR and DORA in the EU..." - Sanjay Mirchandani." - Sanjay Mirchandani
Commvault Systems Inc (CVLT) Q4 2025 Financial Results: Strong Growth Driven by Cyber Resilience and Cloud Strategy
Executive Summary
Commvault Systems Inc (CVLT) reported a strong quarter in Q4 2025, with total revenue increasing by 23% year-over-year (YoY) to $275 million. Subscription revenue significantly boosted growth, surging 45% to $173 million, while Total Annual Recurring Revenue (ARR) ascended to $930 million, representing a 21% improvement. Management highlighted a solid performance stemming from innovative solutions in data security and cyber resilience, such as the introduction of Clean Room and Active Directory recovery capabilities. CEO Sanjay Mirchandani emphasized Commvault's strategic positioning in a cloud-first environment, citing successful partnerships and customer acquisitions as pivotal for future growth.
Key Performance Indicators
Revenue
275.04M
QoQ: 4.72% | YoY:23.17%
Gross Profit
227.27M
82.63% margin
QoQ: 6.20% | YoY:23.42%
Operating Income
26.73M
QoQ: 96.31% | YoY:17.54%
Net Income
30.99M
QoQ: 181.22% | YoY:-75.43%
EPS
0.70
QoQ: 180.00% | YoY:-75.78%
Revenue Trend
Margin Analysis
Key Insights
**Revenue**: $275 million, up 23% YoY, reflecting continued momentum in subscription-based services.
**Gross Profit**: $227 million, gross profit margin at 82.6%.
**Net Income**: $30.9 million, with a stark YoY decline of 75.43% due to last year's unusually high taxation impacts.
**EPS**: $0.70, showing a drop of 75.78% YoY primarily due to tax expenses.
Financial Highlights
- Revenue: $275 million, up 23% YoY, reflecting continued momentum in subscription-based services.
- Gross Profit: $227 million, gross profit margin at 82.6%.
- Operating Income: $26.7 million, rising 17.5% YoY.
- Net Income: $30.9 million, with a stark YoY decline of 75.43% due to last year's unusually high taxation impacts.
- EPS: $0.70, showing a drop of 75.78% YoY primarily due to tax expenses.
- Cash Flow: Q4 free cash flow reached $76 million, with strong performance driven by fast-moving subscription services, yielding a significant cash position of $302 million and no debt.
- Current Ratio: 1.14, indicating short-term liquidity and stability.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
275.04M
23.17%
4.72%
Gross Profit
227.27M
23.42%
6.20%
Operating Income
26.73M
17.54%
96.31%
Net Income
30.99M
-75.43%
181.22%
EPS
0.70
-75.78%
180.00%
Key Financial Ratios
currentRatio
1.14
grossProfitMargin
82.6%
operatingProfitMargin
9.72%
netProfitMargin
11.3%
returnOnAssets
2.77%
returnOnEquity
9.53%
debtEquityRatio
0.03
operatingCashFlowPerShare
$1.75
freeCashFlowPerShare
$1.73
priceToBookRatio
21.38
priceEarningsRatio
56.08
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Management emphasized key growth drivers through detailed themes:
- Cyber Resilience: "Cyber resilience remains a top strategic priority for organizations. Ransomware and sophisticated cyberattacks are increasing in frequency." - Sanjay Mirchandani.
- Product Innovation and Expansion: The recent focus on cloud resilience and security capabilities has been integral to attracting new customers.
- Partner Ecosystem Growth: Notable integrations with security firms such as Splunk and Google Threat Intelligence are helping extend Commvault's marketplace presence, driving a 50% quarter-on-quarter increase in partner contributions.
"As customers' threats grow and become more sophisticated, we're supporting GDPR and DORA in the EU..." - Sanjay Mirchandani.
â Sanjay Mirchandani
"The investments we made in FY 2025 have positioned us well to capture a significant market opportunity in FY 2026 and beyond." - Jen DiRico.
â Jen DiRico
Forward Guidance
Commvault anticipates continued revenue growth, targeting $1.13 billion to $1.14 billion in total revenue for FY 2026, reflecting a 14% increase YoY. Subscription revenue is expected in the range of $727 to $732 million, suggesting a robust 24% growth due to a strong SaaS model and increased term licenses. Management remains cautiously optimistic about the macroeconomic environment but believes ongoing investments and market expansion efforts will ensure sustained growth.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
CVLT Focus
82.63%
9.72%
9.53%
56.08%
ENV
61.90%
-56.30%
-32.20%
-3.70%
MANH
55.80%
23.70%
16.10%
85.83%
AGYS
0.00%
0.00%
0.00%
0.00%
AZPN
50.40%
11.40%
0.35%
70.06%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
With revenue growing significantly, a robust cash position, and a solid strategic direction toward cyber resilience and cloud services, Commvault represents a compelling investment opportunity. While the volatility in EPS and net income merits cautious attention, the broader macro environment and management's drive to innovate position Commvault well for future growth. Enhanced subscription services, driven by new product offerings and increased partner engagement, should continue spurring momentum into 2026.
Key Investment Factors
Growth Potential
Commvault aims to leverage strong secular tailwinds tied to cyber resilience and cloud adoption, positioning itself as a critical player in the data management market.
Profitability Risk
Potential risks include dependency on subscription revenue which may fluctuate with market conditions and competition from entrenched players in the software space.
Financial Position
With $302 million in cash and no debt, Commvault possesses a solid balance sheet that allows for strategic investments and flexibility.
SWOT Analysis
Strengths
Strong subscription-based revenue growth (45% YoY increase in subscription revenue).
No debt with significant cash reserves ($302 million).
Innovative solutions in cyber resilience and data protection, enhancing customer loyalty and retention.
Established partnerships with major security and cloud providers.
Weaknesses
Significant YoY decline in net income reflects potential vulnerabilities to tax structures and costs.
High dependency on subscription revenue may pose risks if market conditions shift.
Declining EPS reflects operational cost structures and perhaps insufficient scaling of growth in comparison to expenses.
Opportunities
Expansion into adjacent markets, notably data security and compliance services, projected to grow total addressable market to $24 billion.
Potential to capitalize on increasing enterprise demand for cloud-first solutions and cyber resilience tools.
Continued innovation in AI data recovery and management could attract new enterprises.
Threats
Intensifying competition in the data protection and cloud management industry from peers like Rubrik and Cohesity.
Economic uncertainties that could affect IT spending across industries.
Regulatory changes that could impact operational processes and compliance costs.