COMMVAULT SYSTEMS INC
For the period ended Dec 31, 2025. Filed Jan 28, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2025 · Filed Jan 28, 2026
CVLT$158.36+0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-29.
0001169561-25-000089
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-12-31; filed 2026-01-28.
0001169561-26-000006
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 106 previous paragraphs and 110 current paragraphs.
46 unchanged; 56 reworded; 8 added; 4 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
–Term-based license revenue increased $21.3 million, or 22% year over year, primarily due to a 25% increase in larger transactions (deals greater than $0.1 million). This increase was driven by a 13% increase in average deal size and a 10% increase in transaction volume, reflecting continued strength in new customer acquisition and existing customer expansion.
Current report
–General and administrative expenses increased $3.6 million, or 10%, reflecting a $4.0 million increase in professional services, including third-party consultants, accounting, and compliance activities. This increase was partially offset by a $2.4 million decrease in stock-based compensation. In addition, there was a $1.7 million net increase in employee compensation and related expenses reflecting the full period impact of headcount additions, primarily within our compliance and security teams.
Current report
Interest Income
Current report
Interest income was $8.4 million in the three months ended December 31, 2025 compared to $1.6 million in the three months ended December 31, 2024. The increase in interest income compared to the same period in the prior year is primarily due to investment of cash balances in money market funds.
Current report
Nine months ended December 31, 2025 compared to nine months ended December 31, 2024
Current report
Interest Income
Current report
Interest income was $13.5 million in the nine months ended December 31, 2025 compared to $5.1 million in the nine months ended December 31, 2024. The increase in interest income compared to the same period in the prior year is primarily due to investment of cash balances in money market funds.
Current report
–Net cash provided by operating activities was driven by net income adjusted for non-cash charges and an increase in deferred revenue, partially offset by an increase in accounts receivable. Cash from operating activities can fluctuate period‑to‑period, including when customer payments are received and when certain expenses are paid. These working capital impacts are primarily timing‑based and reflect the normal course of our business operations. Management considers operating cash flow trends over multiple periods, as quarterly results may reflect normal variability in billing and collection cycles.
Removed paragraphs (4)
Previous report
–Term-based license revenue increased $8.2 million, or 10% year over year, as a result of a 17% increase in transaction volume tempered by a shift in term duration which reduced average deal size period over period.
Previous report
Six months ended September 30, 2025 compared to six months ended September 30, 2024
Previous report
–General and administrative expenses increased $18.9 million, or 29%, driven by an increase of $14.4 million in employee compensation and related expenses, including an increase of $5.4 million in stock-based compensation. In addition, we incurred $1.8 million in legal and consulting expenses in the second quarter of fiscal 2026 as a result of our response to a non-routine security matter that did not occur in the same period in the prior year.
Previous report
–Net cash provided by operating activities was impacted by net income adjusted for the impact of non-cash charges, an increase in deferred revenue and a decrease in accounts receivable, partially offset by a decrease in accrued expenses.
Reworded paragraphs (56)
Previous wording
We sell to end-user customers both directly through our sales force and indirectly through our global network of value-added reseller partners, systems integrators, corporate resellers, original equipment manufacturers, and marketplaces. Revenue generated through indirect distribution channels accounted for approximately 90% of total revenues in both the six months ended September 30, 2025 and 2024. Revenue generated through direct distribution channels accounted for approximately 10% of total revenues in both the six months ended September 30, 2025 and 2024. Deals initiated by our direct sales force are sometimes transacted through indirect channels based on end-user customer requirements, which are not always in our control and can cause this overall percentage split to vary from period-to-period. As such, there may be fluctuations in the dollars and percentage of revenue generated through our distribution channels from time-to-time. We believe that the growth of our revenue, derived from both our indirect channel partners and direct sales force, are key attributes to our long-term growth strategy. We intend to continue to invest in both our channel relationships and direct sales force in the future, but we continue to expect more revenue to be generated through indirect distribution channels over the long term. The failure of our indirect distribution channels or our direct sales force to effectively sell our products and services could have a material adverse effect on our revenues and results of operations.
Current wording
We sell to end-user customers both directly through our sales force and indirectly through our global network of value-added reseller partners, systems integrators, corporate resellers, original equipment manufacturers, and marketplaces. Revenue generated through indirect distribution channels accounted for approximately 90% of total revenues in both the nine months ended December 31, 2025 and 2024. Revenue generated through direct distribution channels accounted for approximately 10% of total revenues in both the nine months ended December 31, 2025 and 2024. Deals initiated by our direct sales force are sometimes transacted through indirect channels based on end-user customer requirements, which are not always in our control and can cause this overall percentage split to vary from period-to-period. As such, there may be fluctuations in the dollars and percentage of revenue generated through our distribution channels from time-to-time. We believe that the growth of our revenue, derived from both our indirect channel partners and direct sales force, are key attributes to our long-term growth strategy. We intend to continue to invest in both our channel relationships and direct sales force in the future, but we continue to expect more revenue to be generated through indirect distribution channels over the long term. The failure of our indirect distribution channels or our direct sales force to effectively sell our products and services could have a material adverse effect on our revenues and results of operations.
Previous wording
We have non-exclusive distribution agreements with certain partners who enable a more efficient and effective distribution channel for our solutions by managing our resellers and leveraging their own industry experience. For the six months ended September 30, 2025 and 2024, Partner A accounted for approximately 32% and 36% of our total revenues, respectively. Separately, Partner B accounted for approximately 12% and 10% of our total revenues for the six months ended September 30, 2025 and 2024, respectively. If these partners discontinue or reduce the sales of our solutions or if our agreements with them were terminated, and if we were unable to take back the management of our reseller channel or find another distributor to replace them, there could be a material adverse effect on our future business.
Current wording
We have non-exclusive distribution agreements with certain partners who enable a more efficient and effective distribution channel for our solutions by managing our resellers and leveraging their own industry experience. For the nine months ended December 31, 2025 and 2024, Partner A accounted for approximately 32% and 35% of our total revenues, respectively. Separately, Partner B accounted for approximately 11% of our total revenues for the nine months ended December 31, 2025. Total revenues for the nine months ended December 31, 2024 for Partner B were less than 10%. If these partners discontinue or reduce the sales of our solutions or if our agreements with them were terminated, and if we were unable to take back the management of our reseller channel or find another distributor to replace them, there could be a material adverse effect on our future business.
Previous wording
ARR represents the annualized recurring value of all active contracts at the end of a reporting period. It includes recurring subscription offerings (including term licenses, SaaS, and utility software), maintenance related to perpetual and term licenses, extended maintenance contracts (enterprise support), and managed services. It excludes non-recurring elements such as perpetual licenses and professional services which are typically delivered at a point in time. ARR is calculated by dividing the total contract value by the number of days in the contract term and multiplying by 365. We believe ARR is a valuable metric for evaluating the growth of our business, as it provides a normalized view of recurring revenue by excluding the variability associated with contract term lengths and omitting contracts that are not expected to renew.
Current wording
ARR represents the annualized recurring value of all active contracts at the end of a reporting period. It includes recurring subscription offerings (including term licenses, SaaS, and utility software), maintenance related to perpetual and term licenses, extended maintenance contracts (enterprise support), and managed services. It excludes non-recurring elements such as perpetual licenses and professional services which are typically delivered at a point in time. ARR is calculated by dividing the total contract value by the number of days in the contract term and multiplying by 365. We believe ARR is a valuable metric for evaluating the growth of our business, as it provides a normalized view of recurring revenue by excluding the variability associated with contract term lengths and omitting contracts that are not expected to renew. Because ARR reflects the annualized value of recurring customer contracts at a particular point in time, quarter‑to‑quarter movements can vary depending on the timing of customer transactions, renewals and other normal purchasing patterns.
Previous wording
Sales outside the United States were 45% and 46% of our total revenues for the six months ended September 30, 2025 and 2024, respectively. The income statements of our non-U.S. operations are translated into U.S. dollars at the average exchange rates for each applicable month in a period. To the extent the U.S. dollar weakens against foreign currencies, the translation of these foreign currency denominated transactions generally results in increased revenues, operating expenses and income from operations for our non-U.S. operations. Similarly, our revenues, operating expenses and income from operations will generally decrease for our non-U.S. operations if the U.S. dollar strengthens against foreign currencies.
Current wording
Sales outside the United States were 47% of our total revenues for both the nine months ended December 31, 2025 and 2024. The income statements of our non-U.S. operations are translated into U.S. dollars at the average exchange rates for each applicable month in a period. To the extent the U.S. dollar weakens against foreign currencies, the translation of these foreign currency denominated transactions generally results in increased revenues, operating expenses and income from operations for our non-U.S. operations. Similarly, our revenues, operating expenses and income from operations will generally decrease for our non-U.S. operations if the U.S. dollar strengthens against foreign currencies.
Previous wording
Using the average foreign currency exchange rates from the three months ended September 30, 2024, our total revenues would have been lower by $4.2 million, our cost of revenues would have been lower by $0.1 million and our operating expenses would have been lower by $0.8 million from non-U.S. operations for the three months ended September 30, 2025. Using the average foreign currency exchange rates from the six months ended September 30, 2024, our total revenues would have been lower by $9.2 million, our cost of revenues would have been lower by $0.3 million and our operating expenses would have been lower by $2.3 million from non-U.S. operations for the six months ended September 30, 2025.
Current wording
Using the average foreign currency exchange rates from the three months ended December 31, 2024, our total revenues would have been lower by $9.5 million, our cost of revenues would have been lower by $0.3 million and our operating expenses would have been lower by $2.3 million from non-U.S. operations for the three months ended December 31, 2025. Using the average foreign currency exchange rates from the nine months ended December 31, 2024, our total revenues would have been lower by $18.7 million, our cost of revenues would have been lower by $0.7 million and our operating expenses would have been lower by $4.6 million from non-U.S. operations for the nine months ended December 31, 2025.
Previous wording
In addition, we are exposed to risks of foreign currency fluctuation primarily from cash balances, accounts receivables and intercompany accounts denominated in foreign currencies and are subject to the resulting transaction gains and losses, which are recorded as a component of general and administrative expenses. We recognized net foreign currency transaction losses of approximately $0.9 million and $2.1 million for the three and six months ended September 30, 2025, respectively. We recognized net foreign currency transaction losses of approximately $0.3 million for the three and six months ended September 30, 2024.
Current wording
In addition, we are exposed to risks of foreign currency fluctuation primarily from cash balances, accounts receivables and intercompany accounts denominated in foreign currencies and are subject to the resulting transaction gains and losses, which are recorded as a component of general and administrative expenses. We recognized net foreign currency transaction gains of approximately $0.2 million and losses of approximately $1.8 million for the three and nine months ended December 31, 2025, respectively. We recognized net foreign currency transaction gains of approximately $0.3 million and insignificant losses for the three and nine months ended December 31, 2024, respectively.
Previous wording
There have been no significant changes in our critical accounting policies during the six months ended September 30, 2025 as compared to the critical accounting policies and estimates disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies” included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025.
Current wording
There have been no significant changes in our critical accounting policies during the nine months ended December 31, 2025 as compared to the critical accounting policies and estimates disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies” included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025.
Previous wording
–Total revenues increased $42.9 million, or 18% year over year, drivenby increases in both term-based license revenue and SaaS revenue. We remain focused on selling subscription arrangements through both term-based software licenses and SaaS offerings.
Current wording
–Total revenues increased $51.2 million, or 19% year over year, drivenby increases in both term-based license revenue and SaaS revenue. We remain focused on selling subscription arrangements through both term-based software licenses and SaaS offerings.
Previous wording
–SaaS revenue increased $30.4 million, or 61% year over year, as a result of growth in SaaS ARR driven by both new customer acquisitions and expansion of our existing customer base.
Current wording
–SaaS revenue increased $26.7 million, or 44% year over year, reflecting higher SaaS bookings, driven by both new customer acquisitions and expansion of our existing customer base.
Previous wording
–Perpetual license revenue decreased $4.9 million, or 20% year over year. Perpetual licenses are generally only sold in certain verticals and geographies.
Current wording
–Perpetual license revenue decreased $2.7 million, or 17% year over year. Perpetual licenses are generally only sold in certain verticals and geographies.
Previous wording
–Customer support revenue increased $2.5 million, or 3% year over year, driven by a $7.9 million increase in customer support revenue related to term-based license arrangements, partially offset by a $5.4 million decrease in customer support revenue attached to perpetual license support renewals.
Current wording
–Customer support revenue increased $3.2 million, or 4% year over year, driven by a $7.9 million increase in customer support revenue related to term-based license arrangements, partially offset by a $4.7 million decrease in customer support revenue attached to perpetual license support renewals.
Previous wording
–Other services revenue increased $0.2 million, or 2% year over year. Changes in other services revenue can vary period over period, primarily due to the timing professional services are delivered.
Current wording
–Other services revenue increased $2.7 million, or 25% year over year. Changes in other services revenue can vary period over period, primarily due to the timing professional services are delivered.
Previous wording
We track total revenues on a geographic basis. 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. Americas and International represented 61% and 39% of total revenues, respectively, for the three months ended September 30, 2025. Total revenues increased 16% and 22% year over year in the Americas and International, respectively.
Current wording
We track total revenues on a geographic basis. 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. Americas and International represented 57% and 43% of total revenues, respectively, for the three months ended December 31, 2025. Total revenues increased 15% and 26% year over year in the Americas and International, respectively.
Previous wording
▪The increase in Americas total revenues was primarily due to increases of 10% and 79% in term-based license and SaaS revenues, respectively, partially offset by a 32% decrease in perpetual license revenue, driven by the shift from selling perpetual licenses to subscription software arrangements. Customer support remained flat compared to the same period of the prior year. Other services revenues increased 18% primarily due to the timing professional services were delivered compared to the same period of the prior year.
Current wording
▪The increase in Americas total revenues was primarily due to increases of 10% and 43% in term-based license and SaaS revenues, respectively, partially offset by a 42% decrease in perpetual license revenue, driven by the shift from selling perpetual licenses to subscription software arrangements. Customer support revenue remained flat compared to the same period of the prior year. Other services revenue increased 18% primarily due to the timing professional services were delivered compared to the same period of the prior year.
Previous wording
▪The increase in International total revenues was due to increases of 54%, 40%, 8% and 13% in term-based license, SaaS, customer support and other services revenues, respectively, partially offset by a decrease of 13% in perpetual license revenue, as compared to the same period of the prior year.
Current wording
▪The increase in International total revenues was due to increases of 42%, 45%, 10% and 40% in term-based license, SaaS, customer support and other services revenues, respectively, partially offset by a 10% decrease in perpetual license revenue, as compared to the same period of the prior year.
Previous wording
–Total cost of revenues increased $12.2 million and represented 20% of our total revenues for the three months ended September 30, 2025 compared to 18% for the three months ended September 30, 2024.
Current wording
–Total cost of revenues increased $10.7 million and represented 19% of our total revenues for the three months ended December 31, 2025 and 2024.
Previous wording
–Cost of term-based license revenue remained flat compared to the same period of the prior year, representing 3% of our term-based license revenue for the three months ended September 30, 2025 and 2024.
Current wording
–Cost of term-based license revenue increased $0.3 million and represented 3% of our term-based license revenue for the three months ended December 31, 2025 and 2024.
Previous wording
–Cost of SaaS revenue increased $22.2 million and represented 36% of our SaaS revenue for the six months ended September 30, 2025 compared to 35% for the six months ended September 30, 2024. The year over year increase is primarily the result of incremental hosting costs associated with acquisitions and an increase in the cost of infrastructure related to growth in our SaaS offerings.
Current wording
–Cost of SaaS revenue increased $8.2 million and represented 36% of our SaaS revenue for the three months ended December 31, 2025 compared to 39% for the three months ended December 31, 2024. The year over year increase is primarily the result of an increase in the cost of infrastructure related to growth in our SaaS offerings.
Previous wording
–Cost of perpetual license revenue decreased $0.2 million and represented 2% of our perpetual revenue for the three months ended September 30, 2025 compared to 4% for the three months ended September 30, 2024.
Current wording
–Cost of perpetual license revenue decreased $0.4 million and represented less than 1% of our perpetual revenue for the three months ended December 31, 2025 compared to 2% for the three months ended December 31, 2024.
Previous wording
–Cost of customer support revenue decreased $0.5 million and represented 19% of our customer support revenue for the three months ended September 30, 2025 compared to 20% for the three months ended September 30, 2024.
Current wording
–Cost of customer support revenue increased $1.1 million and represented 19% of our customer support revenue for both the three months ended December 31, 2025 and 2024.
Previous wording
–Cost of other services revenue increased $0.8 million and represented 75% of our other services revenue for the three months ended September 30, 2025 compared to 69% for the three months ended September 30, 2024.
Current wording
–Cost of other services revenue increased $1.4 million and represented 68% of our other services revenue for the three months ended December 31, 2025 compared to 72% for the three months ended December 31, 2024.
Previous wording
–Sales and marketing expenses increased $20.3 million, or 20%, primarily driven by a $12.5 million increase in employee compensation and sales commissions associated with increases in headcount and revenues relative to the same period in the prior year, including an increase of $1.1 million in stock-based compensation. In addition, there was an increase year over year of $3.5 million due to higher spending on marketing initiatives, which included in-person events and travel.
Current wording
–Sales and marketing expenses increased $23.2 million, or 20%, primarily driven by a $17.5 million increase in employee compensation. This net increase reflects higher sales commissions, bonuses, and payroll taxes associated with increased headcount and higher revenue levels compared to the same period in the prior year. These increases were partially offset by a $0.6 million decrease in stock-based compensation. In addition, sales and marketing expenses increased $3.5 million year over year due to higher spending on marketing initiatives, including in‑person events and travel.
Previous wording
–Research and development expenses increased $13.0 million, or 19%, driven by an increase of $8.5 million in employee compensation and related expenses, including an increase of $4.1 million in stock-based compensation. The increase in employee compensation and related expenses is primarily driven by additional headcount, including headcount related to acquisitions. Investing in research and development remains a priority for Commvault and we anticipate continued responsible spending related to the development of our software applications and hosted services.
Current wording
–Research and development expenses increased $2.2 million, or 6%, reflecting a $1.9 million increase in employee compensation and related expenses. This increase was partially offset by a $0.3 million decrease in stock-based compensation. Investing in research and development remains a priority for Commvault, and we anticipate continued responsible spending related to the development of our software applications and hosted services.
Previous wording
–Depreciation and amortization expense increased $0.6 million, driven by the acquisition of intangible assets.
Current wording
–Depreciation and amortization expense decreased $0.1 million.
Previous wording
–Restructuring: Our restructuring plan, initiated in the first quarter of fiscal 2026, is intended to optimize our Business Technology organization. Restructuring expenses were $1.4 million for the three months ended September 30, 2025. These charges relate primarily to severance and associated costs from headcount reductions and include $0.4 million of stock-based compensation resulting from modifications to existing awards granted to certain employees impacted by the plan. We anticipate the workforce realignment and identification of planned technology changes will be completed in fiscal 2026, and the remaining activities under the restructuring plan, including the technology transitions, are expected to be completed in fiscal 2027. Restructuring expenses were $0.6 million for the three months ended September 30, 2024 related to a prior restructuring plan that was completed in fiscal 2025.
Current wording
–Restructuring expenses were $11.9 million for the three months ended December 31, 2025. These charges relate to two restructuring plans initiated during fiscal 2026 and consist primarily of severance and associated costs from headcount reductions. These charges also include $1.3 million of stock-based compensation resulting from modifications to existing awards granted to certain employees. We anticipate both plans will be completed in fiscal 2027, with approximately $20 million of additional costs expected to be incurred. Restructuring expenses were $4.0 million for the three months ended December 31, 2024 and related to a prior restructuring plan that was completed in fiscal 2025.
Previous wording
Risks associated with our restructuring plan include additional unexpected costs, adverse effects on employee morale and the failure to meet operational and growth targets due to the loss of key employees, any of which may impair our ability to achieve anticipated results of operations or otherwise harm our business.
Current wording
Risks associated with our restructuring plans include additional unexpected costs, adverse effects on employee morale and the failure to meet operational and growth targets due to the loss of key employees, any of which may impair our ability to achieve anticipated results of operations or otherwise harm our business.
Previous wording
Income tax expense was $0.4 million in the three months ended September 30, 2025 compared to expense of $1.1 million in the three months ended September 30, 2024. The decrease in income tax expense compared to the same period in the prior year relates primarily to estimated current federal taxes. The One Big Beautiful Bill Act (the “OBBBA”), enacted on July 4, 2025, includes several corporate tax provisions relevant to U.S. businesses. Included in this legislation are provisions that allow for the immediate expensing of domestic research and development expenses, extensions of bonus depreciation, and modifications to the international tax regimes. The provisions in the legislation are generally effective beginning in our fiscal 2026. The Company is continuing to evaluate the impact of these provisions on its financial statements, but an estimate of the financial impact has been included in our operating results for the three months ended September 30, 2025. The OBBBA did not have a material impact to our income tax provision for the three months ended September 30, 2025.
Current wording
Income tax expense was $9.2 million in the three months ended December 31, 2025 compared to expense of $4.1 million in the three months ended December 31, 2024. The increase in income tax expense compared to the same period in the prior year relates primarily to current federal taxes driven by an increase in pre-tax income projections. The One Big Beautiful Bill Act (the “OBBBA”), enacted on July 4, 2025, includes several corporate tax provisions relevant to U.S. businesses. Included in this legislation are provisions that allow for the immediate expensing of domestic research and development expenses, extensions of bonus depreciation, and modifications to the international tax regimes. The provisions in the legislation are generally effective beginning in our fiscal 2026. The Company is continuing to evaluate the impact of these provisions on its financial statements, but an estimate of the financial impact has been included in our operating results for the three months ended December 31, 2025. The OBBBA did not have a material impact to our income tax provision for the three months ended December 31, 2025.
Previous wording
–Total revenues increased $100.2 million, or 22% year over year, driven prim arily by increases in both term-based license revenue and SaaS revenue, partially offset by a decrease in perpetual license revenue. We remain focused on selling subscription arrangements through both term-based software licenses and SaaS offerings.
Current wording
–Total revenues increased $151.4 million, or 21% year over year, driven primarily by increases in both term-based license revenue and SaaS revenue, partially offsetby a decrease in perpetual license revenue. We remain focused on selling subscription arrangements through both term-based software licenses and SaaS offerings.
Previous wording
–Term-based license revenue increased $37.1 million, or 23% year over year, primarily due to a 22% increase in larger transactions (deals greater than $0.1 million) period over period. This increase was driven by a 20% increase in transaction volume.
Current wording
–Term-based license revenue increased $58.4 million, or 22% year over year, primarily due to a 23% increase in larger transactions (deals greater than $0.1 million) period over period. This increase was driven by a 16% increase in transaction volume.
Previous wording
–SaaS revenue increased $59.2 million, or 63% year over year, as a result of growth in SaaS ARR driven by both new customer acquisitions and expansion of our existing customer base.
Current wording
–SaaS revenue increased $85.9 million, or 56% year over year, reflecting higher SaaS bookings, driven by both new customer acquisitions and expansion of our existing customer base.
Previous wording
–Perpetual license revenue increased $1.6 million, or 15% year over year. Perpetual licenses are generally only sold in certain verticals and geographies.
Current wording
–Perpetual license revenue decreased $7.6 million, or 19% year over year. Perpetual licenses are generally only sold in certain verticals and geographies.
Previous wording
–Customer support revenue increased $5.3 million, or 3% year over year, driven by a $15.7 million increase in customer support revenue related to term-based license arrangements, partially offset by a $10.4 million decrease in support attached to perpetual license support renewals.
Current wording
–Customer support revenue increased $8.5 million, or 4% year over year, driven by a $23.6 million increase in customer support revenue related to term-based license arrangements, partially offset by a $15.1 million decrease in support attached to perpetual license support renewals.
Previous wording
–Other services revenue increased $3.5 million, or 16% year over year. Changes in other services revenue can vary period over period, primarily due to the timing professional services are delivered.
Current wording
–Other services revenue increased $6.3 million, or 19% year over year. Changes in other services revenue can vary period over period, primarily due to the timing professional services are delivered.
Previous wording
We track total revenues on a geographic basis. 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. Americas and International represented 61% and 39% of total revenues, respectively, for the six months ended September 30, 2025. Total revenues increased 20% and 25% year over year in the Americas and International, respectively.
Current wording
We track total revenues on a geographic basis. 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. Americas and International represented 59% and 41% of total revenues, respectively, for the nine months ended December 31, 2025. Total revenues increased 18% and 26% year over year in the Americas and International, respectively.
Previous wording
▪The increase in Americas total revenues was primarily due to increases of 5% and 76% in term-based license and SaaS revenues, respectively, partially offset by a 26% decrease in perpetual license revenue, driven by the shift from selling perpetual licenses to subscription software arrangements. Customer support revenue decreased 1% year over year. Other services revenue decreased 7% year over year primarily due to the timing professional services were delivered compared to the same period of the prior year.
Current wording
▪The increase in Americas total revenues was primarily due to increases of 10% and 64% in term-based license and SaaS revenues, respectively, partially offset by a 35% decrease in perpetual license revenue, driven by the shift from selling perpetual licenses to subscription software arrangements. Customer support revenue remained flat compared to the same period of the prior year. Other services revenue increased 18% primarily due to the timing professional services were delivered compared to the same period of the prior year.
Previous wording
▪The increase in International total revenues was due to increases of 22%, 39%, 41%, 9% and 16% in term-based license, SaaS, perpetual license, customer support and other services revenues, respectively, as compared to the same period of the prior year.
Current wording
▪The increase in International total revenues was due to increases of 48%, 42%, 9% and 22% in term-based license, SaaS, customer support and other services revenues, respectively, partially offset by a decrease of 12% in perpetual license revenue, as compared to the same period of the prior year.
Previous wording
–Total cost of revenues increased $23.2 million and represented 19% of our total revenues for the six months ended September 30, 2025 compared to 18% for the six months ended September 30, 2024.
Current wording
–Total cost of revenues increased $33.8 million and represented 19% of our total revenues for the nine months ended December 31, 2025 compared to 18% for the nine months ended December 31, 2024.
Previous wording
–Cost of term-based license revenue increased $0.5 million and represented 2% of our term-based license revenue for the six months ended September 30, 2025 compared to 3% for the six months ended September 30, 2024.
Current wording
–Cost of term-based license revenue increased $0.9 million and represented 2% of our term-based license revenue for the nine months ended December 31, 2025 compared to 3% for the nine months ended December 31, 2024.
Previous wording
–Cost of SaaS revenue increased $12.0 million and represented 36% of our SaaS revenue for the three months ended September 30, 2025 compared to 35% for the three months ended September 30, 2024. The year over year increase is primarily the result of incremental hosting costs associated with acquisitions and an increase in the cost of infrastructure related to growth in our SaaS offerings.
Current wording
–Cost of SaaS revenue increased $30.5 million and represented 36% of our SaaS revenue for the nine months ended December 31, 2025 compared to 37% for the nine months ended December 31, 2024. The year over year increase is primarily the result of incremental hosting costs associated with acquisitions and an increase in the cost of infrastructure related to growth in our SaaS offerings.
Previous wording
–Cost of perpetual license revenue decreased $0.3 million and represented 2% of our total perpetual revenue for the six months ended September 30, 2025 compared to 3% for the six months ended September 30, 2024.
Current wording
–Cost of perpetual license revenue decreased $0.7 million and represented 2% of our total perpetual revenue for the nine months ended December 31, 2025 compared to 3% for the nine months ended December 31, 2024.
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