Cognyte Reports 21% Growth in Total Software Revenue Amid Weak Billings
Cognyte (NASDAQ:CGNT) reported fiscal second-quarter revenue of $109.2 million, a 12% increase year-over-year, driven by strong performance from its software segment which rose 20.9% to $100.8 million. Non-GAAP adjusted EBITDA increased significantly by 35.7% to $14.9 million as the company continues transitioning toward higher-margin software offerings. Despite these gains, quarterly billings dropped sharply from $93 million to $76.3 million—a decline of about 18%. This has raised concerns over whether improved revenue mix can offset weaker top-line momentum and support long-term cash generation. Recurring revenue now accounts for nearly half (51.4%) of total sales, which could provide more predictable income streams. The company ended the quarter with $102.2 million in cash and no debt, offering financial flexibility to fund operations during contract cycles. However, weak operating cash flow—just $1.1 million compared to a prior-year outflow—remains a concern.
Topics: billings decline EBITDA improvement revenue growth software revenue mix