NASDAQ$VRNT

Verint Systems Inc. · Q2 2025 earnings

Q2 2025 earnings · · Investor relations

Briefing

Verint announced Q2 FYE 2025 results, showcasing strong AI momentum and bundled SaaS revenue growth.

Verint's Q2 FYE 2025 showed flat revenue year-over-year, but a 3% increase adjusted for divestiture. The company reported a GAAP EPS of $0.02 and a non-GAAP EPS of $0.49, with bundled SaaS revenue growing by 15% and AI bookings increasing by over 40% year-over-year. They continue to expect 5% adjusted revenue growth and 10% adjusted EBITDA growth with strong free cash flow growth for the full year.

  • Revenue was flat year-over-year, but up 3% adjusted for divestiture.
  • Gross margin increased by over 150 bps year-over-year.
  • Bundled SaaS revenue grew by 15% year-over-year.
  • AI bookings increased by over 40% year-over-year.

Headline financials

Total Revenue

$210M

Previous: $210M-0.1%
EPS (adj)

$0.49

Previous: $0.48+2.1%
Subscription ARR

$685M

No prior period
AI ARR

$307M

No prior period
Free Cash Flow

-$3.58M

No prior period
Non-GAAP Net Income

$35.6M

No prior period
Capital Expenditures

-$7.44M

Previous: $3.63M-305.2%
Net Income

$5.72M

Previous: -$5.79M+198.9%
Operating Income

$13.9M

Previous: -$7.51M+284.6%
Gross Profit

$145M

Previous: $141M+2.9%
R&D Expense

$35.2M

No prior period
Stock-Based Comp

$23.8M

Previous: $19.3M+22.9%

Revenue & EPS history

Verint · Revenue · Quarterly

$210M

Q2 2025-0.1%vs Q2 2024
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Verint · $161M total across 1 segment · Q3 2024

  • Recurring Revenue
    $161M-7.5%

Forward guidance

Verint expects 5% adjusted revenue growth and $2.90 diluted EPS for the year ending January 31, 2025.

Tailwinds

  • Revenue: $933 million +/- 2%, reflecting 5% year-over-year growth (adjusted for the divestiture discussed above)
  • Diluted EPS: $2.90 at the midpoint of our revenue guidance, reflecting 6% year-over-year growth
  • Strong AI momentum in H1
  • Increasing market demand for tangible AI business outcomes
  • Advanced stage bundled SaaS pipeline for the remainder of the year was up around 20% from the same period last year

Headwinds

  • Excludes amortization of intangible assets of approximately $4 million for the three months ending October 31, 2024
  • Excludes amortization of intangible assets of approximately $18 million for the year ending January 31, 2025
  • Stock-based compensation expenses are expected to be between approximately $19 million and $21 million for the three months ending October 31, 2024
  • Stock-based compensation expenses are expected to be between approximately $78 million and $82 million for the year ending January 31, 2025
  • Our non-GAAP guidance does not include the potential impact of any in-process business acquisitions that may close after the date hereof

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 3 quarterly earnings reports

Historical avg

+1.2%

Avg return

Earnings day

-4.3%

Avg return

5 days after

+0.4%

Avg return

30 days after

59%

37 / 63 earnings

Positive

+31.6%

Q3 2025

Best reaction

-20.0%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026+0.3%-0.1%-0.4%
Q1 2026+2.5%+4.8%+17.1%
Q4 2025-13.4%-17.5%-15.6%
Q3 2025+31.6%
Q2 2025-12.1%
Q1 2025+21.8%
Q4 2024+7.1%
Q3 2024+17.9%
Q2 2024-20.0%
Q1 2024+0.3%
Q4 2023-3.0%
Q3 2023+0.6%
Q2 2023-7.5%
Q1 2023-4.5%
Q4 2022+1.3%
Q3 2022+2.5%
Q2 2022-2.9%
Q1 2022-2.2%
Q4 2021+1.4%
Q3 2021+5.2%
Q2 2021+7.6%
Q1 2021-11.8%
Q4 2020-14.6%
Q3 2020+7.4%
Q2 2020-12.3%
Q1 2020-1.1%
Q4 2019+13.9%
Q3 2019+3.9%
Q2 2019+7.4%
Q1 2019+0.2%
Q4 2018+13.1%
Q3 2018-6.6%
Q2 2018+2.4%
Q1 2018+1.9%
Q4 2017+8.8%
Q3 2017-9.8%
Q2 2017+8.4%
Q1 2017+7.4%
Q4 2016-3.9%
Q3 2016-14.7%
Q2 2016-6.3%
Q1 2016-2.1%
Q4 2015+5.0%
Q3 2015-1.7%
Q2 2015+7.5%
Q1 2015+10.4%
Q4 2014+8.1%
Q3 2014+0.6%
Q2 2014+8.9%
Q1 2014+2.1%
Q4 2013+4.3%
Q3 2013-1.0%
Q2 2013+2.7%
Q1 2012+1.7%
Q1 2013+1.7%
Q4 2010-3.3%
Q1 2011-3.3%
Q4 2012-3.3%
Q3 2011+3.5%
Q3 2012+3.5%
Q2 2012-0.0%
Q2 2011-0.0%
Q4 2011-0.0%

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