MANHATTAN ASSOCIATES INC
For the period ended Dec 31, 2025. Filed Feb 4, 2026.
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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Feb 4, 2026
MANH$252.78-0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-02-07.
0000950170-25-016295
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-12-31; filed 2026-02-04.
0001193125-26-037138
Item 7. 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 141 previous paragraphs and 134 current paragraphs.
79 unchanged; 47 reworded; 8 added; 14 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 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
This section of our Annual Report on Form 10-K discusses our financial condition, results of operations, and liquidity and capital resources for the fiscal years ended December 31, 2025 and 2024, and year-to-year comparisons between fiscal 2025 and fiscal 2024 in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). A discussion of our financial condition, results of operations, and liquidity and capital resources for the fiscal year ended December 31, 2024 and 2023 and year-to-year comparisons between fiscal 2024 and fiscal 2023 that is not included in this Annual Report on Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed on February 7, 2025.
Current report
Consolidated revenue: $1,081.4 million for 2025 compared to $1,042.4 million for 2024;
Current report
Cloud subscription revenue: $408.1 million for 2025 compared to $337.2 million for 2024;
Current report
License revenue: $14.8 million for 2025 compared to $15.1 million for 2024;
Current report
Services revenue: $503.0 million for 2025 compared to $525.5 million for 2024;
Current report
Operating income: $279.8 million for 2025 compared to $261.6 million for 2024;
Current report
Restructuring expense
Current report
In January 2025, the Company eliminated approximately 100 positions to align our services capacity with customer demand which has been impacted by short-term macro-economic uncertainty. The Company recorded restructuring expense of approximately $2.9 million for the year ended December 31, 2025 to the Americas segment. The expense primarily consists of employee severance and outplacement services. The expense is classified in “Restructuring expense” in the Company’s Consolidated Statements of Income for the year ended December 31, 2025.
Removed paragraphs (14)
Previous report
Consolidated revenue: $1,042.4 million for 2024 compared to $928.7 million for 2023;
Previous report
Cloud subscription revenue: $337.2 million for 2024 compared to $254.6 million for 2023;
Previous report
License revenue: $15.1 million for 2024 compared to $18.2 million for 2023;
Previous report
Operating income: $261.6 million for 2024 compared to $209.9 million for 2023;
Previous report
Cloud subscriptions revenue increased $78.2 million to $254.6 million in 2023 compared to 2022. Cloud subscriptions revenue for the Americas, EMEA and APAC segments increased $56.7 million, $19.2 million and $2.3 million, respectively. Revenue recognized from first time cloud customers (defined as customers with no prior cloud subscriptions) during the year in which their initial cloud subscription began was 3% and 7% of total cloud revenue in 2023 and 2022, respectively.
Previous report
Maintenance revenue increased $1.7 million in 2023 compared to 2022. Maintenance revenue for the Americas segment increased $1.7 million, while EMEA and APAC segments remained relatively flat in 2023 compared to 2022.
Previous report
Services revenue increased $93.8 million in 2023 compared to 2022. The Americas, EMEA, and APAC segments increased $67.0 million, $21.7 million and $5.1 million, respectively, compared to 2022. Services revenue was driven by adoption and implementation of our cloud solutions. The percentage of professional services revenue that relates to cloud subscriptions in 2023 and 2022 was approximately 70% and 55%, respectively. Professional services revenue recognized from first time cloud customers (defined as customers with no prior cloud subscriptions) during the year in which their initial cloud subscription began was approximately 8% and 12% of total services revenue in 2023 and 2022, respectively.
Previous report
The $73.2 million increase in 2023 compared to 2022 was principally due to a $52.0 million increase in compensation and other personnel-related expenses, a $6.3 million increase in travel expense, a $8.3 million increase in performance-based compensation expense, a $4.4 million increase in computer infrastructure cost and a $1.1 million increase in facilities expense.
Previous report
Research and development expenses in 2023 increased by $14.9 million compared to 2022. This increase is principally due to a $10.9 million increase in compensation and other personnel-related expenses, a $3.1 million increase in performance-based compensation expense, and a $0.6 million increase in computer infrastructure costs.
Previous report
Sales and marketing expenses increased $10.0 million in 2023 compared to 2022, primarily due to a $4.3 million increase in compensation and other personnel-related expenses, a $3.7 million increase in marketing and campaign programs, a $1.0 million increase in performance-based compensation expense, and a $0.8 million increase in travel expense.
Previous report
General and administrative expenses increased $8.1 million in 2023 primarily due to a $5.3 million increase in compensation and other personnel-related expenses, a $1.3 million increase in performance-based compensation expense, a $0.6 million increase in professional expenses, and a $0.6 million increase in computer infrastructure costs.
Previous report
Operating income in 2023 increased $57.2 million to $209.9 million, compared to $152.7 million for 2022. Operating margins were 22.6% for 2023 versus 19.9% for 2022. Operating income increased primarily due to increased cloud subscriptions and services revenues. In 2023, operating income increased by $35.9 million, $16.7 million, and $4.6 million in the Americas, EMEA and APAC segments.
Previous report
The effective income tax rate in 2023 increased from 2022 mainly due to a decrease of expense from a favorable tax law change allowing creditability of foreign tax offset by a decrease of net excess tax benefits on restricted stock vesting and adjustments for tax contingencies.
Previous report
Significant Judgments
Reworded paragraphs (47)
Previous wording
In 2024, we generated $1,042.4 million in total revenue, with a revenue mix of: cloud subscriptions 32%; software license 1%; maintenance 13%; services revenue 51%; and hardware 3%.
Current wording
In 2025, we generated $1,081.4 million in total revenue, with a revenue mix of: cloud subscriptions 38%; software license 1%; maintenance 12%; services revenue 47%; and hardware 2%.
Previous wording
We have three geographic reportable segments: the Americas, EMEA, and APAC. Geographic revenue is based on the location of the sale. Our international revenue was approximately $346.2 million, $301.4 million, and $238.4 million for the years ended December 31, 2024, 2023 and 2022, respectively, which represents approximately 33%, 32%, and 31% of our total revenue for the years ended December 31, 2024, 2023 and 2022, respectively. International revenue includes all revenue derived from sales to customers outside the United States. At December 31, 2024, we employed approximately 4,690 employees worldwide. We have offices in Australia, Chile, China, France, Germany, India, Italy, Japan, the Netherlands, Singapore, Spain, and the United Kingdom, as well as representatives in Mexico and reseller partnerships in Latin America, Eastern Europe, the Middle East, South Africa, and Asia.
Current wording
We have three geographic reportable segments: the Americas, EMEA, and APAC. Geographic revenue is based on the location of the sale. Our international revenue was approximately $373.5 million and $346.2 million for the years ended December 2025 and 2024, respectively, which represents approximately 35%, and 33% of our total revenue for the years ended December 2025 and 2024, respectively, respectively. International revenue includes all revenue derived from sales to customers outside the United States. At December 31, 2025, we employed approximately 4,370 employees worldwide. We have offices in Australia, Chile, China, France, Germany, India, Italy, Japan, the Netherlands, Singapore, Spain, and the United Kingdom, as well as representatives in Mexico and reseller partnerships in Latin America, Eastern Europe, the Middle East, South Africa, and Asia.
Previous wording
Under our Manhattan Active® Solutions cloud subscription offering, customers pay a periodic fee for the right to use our software within a cloud environment that we provide and manage over a specified period of time. Adoption of our Manhattan Active® cloud solutions continues to increase nicely, with cloud revenue up 32% over 2023. Cloud revenue now represents about 96% of our total software revenue.
Current wording
Under our Manhattan Active® Solutions cloud subscription offering, customers pay a periodic fee for the right to use our software within a cloud environment that we provide and manage over a specified period of time. Adoption of our Manhattan Active® cloud solutions continues to increase nicely, with cloud revenue up 21% over 2024. Cloud revenue now represents about 96% of our total software revenue.
Previous wording
Global macro-economic trends, technology spending, and supply chain management market growth are important barometers for our business. In 2024, we generated approximately 67% of our total revenue in the United States, 18% in EMEA, and the remaining balance in APAC, Canada, and Latin America. In addition, Gartner Inc. (“Gartner”), an information technology research and advisory company, estimates that over 75% of every supply chain software solutions dollar invested is spent in North America and Europe; consequently, the health of the U.S. and European economies have a meaningful impact on our financial results.
Current wording
Global macro-economic trends, technology spending, and supply chain management market growth are important barometers for our business. In 2025, we generated approximately 65% of our total revenue in the United States, 20% in EMEA, and the remaining balance in APAC, Canada, and Latin America. In addition, Gartner Inc. (“Gartner”), an information technology research and advisory company, estimates that over 80% of every supply chain software solutions dollar invested is spent in North America and Europe; consequently, the health of the U.S. and European economies have a meaningful impact on our financial results.
Previous wording
In January 2025, the International Monetary Fund (IMF) provided a World Economic Outlook (WEO) update. The WEO update noted, “Global growth is projected at 3.3 percent both in 2025 and 2026, below the historical (2000–19) average of 3.7 percent. Global headline inflation is expected to decline to 4.2 percent in 2025 and to 3.5 percent in 2026, converging back to target earlier in advanced economies than in emerging market and developing economies.”
Current wording
In January 2026, the International Monetary Fund (IMF) provided a World Economic Outlook (WEO) update. The WEO update noted, “Global growth is projected at 3.3 percent in 2026 and 3.2 percent in 2027: rates similar to the estimated 3.3 percent outturn in 2025. Global headline inflation is expected to decline from an estimated 4.1 percent in 2025 to 3.8 percent in 2026 and further to 3.4 percent in 2027. The inflation projections are also broadly unchanged from those in October and envisage inflation returning to target more gradually in the United States than in other large economies.”
Previous wording
The WEO update projected advanced economies, which represent our primary revenue markets, would grow at about 1.9 and 1.8 percent in 2025 and 2026, while the emerging and developing economies would grow at about 4.2 percent in 2025 and 4.3 percent in 2026.
Current wording
The WEO update projected advanced economies, which represent our primary revenue markets, would grow at about 2.4 and 2.0 percent in 2026 and 2027, while the emerging and developing economies would grow at about 4.2 percent in 2026 and 4.1 percent in 2027.
Previous wording
Our cloud revenue growth provides insight into our ability to maintain and grow our cloud customer base. Total cloud revenue increased from $254.6 million in 2023 to $337.2 million in 2024, representing a 32% year-over-year increase. Total cloud revenue increased from $176.5 million in 2022 to $254.6 million in 2023, representing a 44% year-over-year increase. Cloud revenue growth is being driven by strong demand for our cloud offerings.
Current wording
Our cloud revenue growth provides insight into our ability to maintain and grow our cloud customer base. Total cloud revenue increased from $337.2 million in 2024 to $408.1 million in 2025, representing a 21% year-over-year increase. Cloud revenue growth is being driven by strong demand for our cloud offerings.
Previous wording
Transaction price allocated to RPO represents contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancelable amounts that we expect to invoice and recognize as revenue in future periods. Over 98% of our RPO represent cloud native subscriptions with a non-cancelable term greater than one year. Maintenance contracts typically are for one year and not included in RPO. RPO provides insight into our contracted backlog of future business. As of December 31, 2024, our RPO was approximately $1.8 billion, an increase of 25% over December 31, 2023 on strong demand.
Current wording
Transaction price allocated to RPO represents contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancelable amounts that we expect to invoice and recognize as revenue in future periods. Over 98% of our RPO represent cloud native subscriptions with a non-cancelable term greater than one year. Maintenance contracts typically are for one year and not included in RPO. RPO provides insight into our contracted backlog of future business. As of December 31, 2025, our RPO was approximately $2.2 billion, an increase of 25% over December 31, 2024 on strong demand.
Previous wording
Cloud Subscriptions and Software License revenue: In the full year ended 2024, cloud subscriptions revenue was 96% of total cloud and software license revenue. In 2024, cloud subscriptions revenue totaled $337.2 million, or 32% of total revenue. The Americas, EMEA, and APAC segments recognized $264.3 million, $62.8 million and $10.1 million in cloud subscriptions revenue, respectively, in 2024. Cloud subscriptions revenue is recognized over the term of the agreement, typically five years or more. Cloud subscription revenue growth is influenced by the strength of general economic and business conditions and the competitive position of our software products. These revenues generally have long sales cycles. Approximately 22% of the total value of new non-cancelable cloud subscriptions (excluding renewals) signed during 2024 was with new customers and 78% was with existing customers. We define new customers as entities from which we either have never earned revenue or have not recognized revenue in the last five years.
Current wording
Cloud Subscriptions and Software License revenue: In the full year ended December 31, 2025, cloud subscriptions revenue was 96% of total cloud and software license revenue. In 2025, cloud subscriptions revenue totaled $408.1 million, or 38% of total revenue. The Americas, EMEA, and APAC segments recognized $313.0 million, $80.1 million and $15.0 million in cloud subscriptions revenue, respectively, in 2025. Cloud subscriptions revenue is recognized over the term of the agreement, typically five years or more. Cloud subscription revenue growth is influenced by the strength of general economic and business conditions and the competitive position of our software products. These revenues generally have long sales cycles. Approximately 56% of the total value of new non-cancelable cloud subscriptions (excluding renewals) signed during 2025 was with new customers and 44% was with existing customers. We define new customers as entities from which we either have never earned revenue or have not recognized revenue in the last five years.
Previous wording
In 2024, license revenue totaled $15.1 million, or 1% of total revenue. The Americas, EMEA, and APAC segments totaled $12.3 million, $1.4 million, and $1.4 million in license revenue, respectively, in 2024.
Current wording
In 2025, license revenue totaled $14.8 million, or 1% of total revenue. The Americas, EMEA, and APAC segments totaled $5.6 million, $8.4 million, and $0.8 million in license revenue, respectively, in 2025.
Previous wording
Maintenance Revenue: Our maintenance revenue totaled $138.3 million, or 13% of total revenue. The Americas, EMEA and APAC segments recognized $110.8 million, $18.3 million, and $9.2 million, respectively, in maintenance revenue in 2024. For maintenance, we offer a comprehensive 24 hours per day, 365 days per year program that provides our customers with software upgrades, when and if available, which include additional or improved functionality and technological advances incorporating emerging supply chain and industry initiatives.
Current wording
Maintenance Revenue: Our maintenance revenue totaled $130.0 million, or 12% of total revenue. The Americas, EMEA and APAC segments recognized $102.4 million, $19.0 million, and $8.6 million, respectively, in maintenance revenue in 2025. For maintenance, we offer a comprehensive 24 hours per day, 365 days per year program that provides our customers with software upgrades, when and if available, which include additional or improved functionality and technological advances incorporating emerging supply chain and industry initiatives.
Previous wording
Services Revenue: In 2024, our services revenue totaled $525.5 million, or 51% of total revenue. The Americas, EMEA, and APAC segments recognized $389.5 million, $107.4 million, and $28.6 million, respectively.
Current wording
Services Revenue: In 2025, our services revenue totaled $503.0 million, or 47% of total revenue. The Americas, EMEA, and APAC segments recognized $364.7 million, $107.5 million, and $30.8 million, respectively.
Previous wording
Hardware Revenue: Our hardware revenue, which we recognize net of related costs, totaled $26.3 million in 2024 representing 3% of total revenue. As a convenience for our cloud and perpetual license customers, we resell a variety of hardware products developed and manufactured by third parties. These products include computer hardware, radio frequency terminal networks, RFID chip readers, bar code printers and scanners, and other peripherals. We resell all third-party hardware products and related maintenance pursuant to agreements with manufacturers or through distributor-authorized reseller agreements pursuant to which we are entitled to purchase hardware products and services at discount prices. We generally purchase hardware from our vendors only after receiving an order from a customer. As a result, we do not maintain hardware inventory.
Current wording
Hardware Revenue: Our hardware revenue, which we recognize net of related costs, totaled $25.4 million in 2025 representing 2% of total revenue. As a convenience for our cloud and perpetual license customers, we resell a variety of hardware products developed and manufactured by third parties. These products include computer hardware, radio frequency terminal networks, RFID chip readers, bar code printers and scanners, and other peripherals. We resell all third-party hardware products and related maintenance pursuant to agreements with manufacturers or through distributor-authorized reseller agreements pursuant to which we are entitled to purchase hardware products and services at discount prices. We purchase hardware from our vendors only after receiving an order from a customer. As a result, we do not maintain hardware inventory.
Previous wording
We continue to invest significantly in research and development (R&D) to provide leading Unified Omnichannel Commerce and Digital Supply Chain solutions to enable global retailers, manufacturers, wholesalers, distributors and logistics providers to successfully manage accelerating and fluctuating demands as well as the increasing complexity and volatility of their local and global supply chains, retail store operations and POS. Our R&D expenses for the years ended December 31, 2024, 2023 and 2022 were $137.7 million, $126.8 million, and $111.9 million, respectively.
Current wording
We continue to invest significantly in research and development (R&D) to provide leading Unified Omnichannel Commerce and Digital Supply Chain solutions to enable global retailers, manufacturers, wholesalers, distributors and logistics providers to successfully manage accelerating and fluctuating demands as well as the increasing complexity and volatility of their local and global supply chains, retail store operations and POS. Our R&D expenses for the years ended December 2025 and 2024 were $145.1 million and $137.7 million, respectively.
Previous wording
For 2024, we generated cash flow from operating activities of $295.0 million and have generated a cumulative total of $720.9 million for the three years ended December 31, 2024. Our cash at December 31, 2024 totaled $266.2 million, with no debt. We currently have no credit facilities. During the past three years, our primary uses of cash have been for funding investments in R&D in our Unified Omnichannel Commerce and Digital Supply Chain solutions to drive revenue and earnings growth. In addition, we repurchased $241.6 million of Manhattan Associates’ outstanding common stock under the share repurchase program approved by our Board of Directors. In January 2025, our Board of Directors raised the Company’s share repurchase authority to an aggregate of $100.0 million of our common stock.
Current wording
For 2025, we generated cash flow from operating activities of $389.5 million and have generated a cumulative total of $930.7 million for the three years ended December 31, 2025. Our cash at December 31, 2025 totaled $328.7 million, with no debt. We currently have no credit facilities. During the past three years, our primary uses of cash have been for funding investments in R&D in our Unified Omnichannel Commerce and Digital Supply Chain solutions to drive revenue and earnings growth. In addition for 2025, we repurchased $274.5 million of Manhattan Associates’ outstanding common stock under the share repurchase program approved by our Board of Directors. In January 2026, our Board of Directors replenished the Company’s share repurchase authority to an aggregate of $100.0 million of our common stock.
Previous wording
Diluted earnings per share: $3.51 for 2024 compared to $2.82 for 2023;
Current wording
Diluted earnings per share: $3.60 for 2025 compared to $3.51 for 2024;
Previous wording
Operating margins: 25.1% for 2024 compared to operating margins of 22.6% for 2023;
Current wording
Operating margins: 25.9% for 2025 compared to operating margins of 25.1% for 2024;
Previous wording
Cash flow from operations: $295.0 million for 2024 compared to $246.2 million for 2023;
Current wording
Cash flow from operations: $389.5 million for 2025 compared to $295.0 million for 2024;
Previous wording
Cash paid for income taxes: $83.4 million for 2024 compared to $67.4 million for 2023;
Current wording
Cash paid for income taxes: $47.3 million for 2025 compared to $83.4 million for 2024;
Previous wording
Cash and investments: $266.2 million at December 31, 2024 compared to $270.7 million at December 31, 2023; and
Current wording
Cash and investments: $328.7 million at December 31, 2025 compared to $266.2 million at December 31, 2024; and
Previous wording
Share repurchases: In 2024, we repurchased 986,555 shares of Manhattan Associates’ outstanding common stock for $241.6 million under the share repurchase program approved by our Board of Directors. In January 2025, our Board of Directors raised the Company’s share repurchase authority to an aggregate of $100.0 million of our common stock.
Current wording
Share repurchases: In 2025, we repurchased 1,451,019 shares of Manhattan Associates’ outstanding common stock for $274.5 million under the share repurchase program approved by our Board of Directors. In January 2026, our Board of Directors replenished the Company’s share repurchase authority to an aggregate of $100.0 million of our common stock.
Previous wording
We have three reportable segments: the Americas, EMEA, and APAC. Revenue information is based on the location of sale. The revenues represented below are from external customers only. The geography-based expenses include costs of personnel, direct sales, marketing expenses, and general and administrative costs to support the business. There are certain corporate expenses included in the Americas segment that we do not charge to the other segments including research and development, certain marketing and general and administrative costs that support the global organization, and the amortization of acquired developed technology. Included in the Americas costs are all research and development costs, including the costs associated with our operations in India. During 2024, 2023, or 2022, we derived the majority of our revenues from sales to customers within our Americas segment. In the following table, we present a summary of revenue and operating profit by segment:
Current wording
We have three reportable segments: the Americas, EMEA, and APAC. Revenue information is based on the location of sale. The revenues represented below are from external customers only. The geography-based expenses include costs of personnel, direct sales, marketing expenses, and general and administrative costs to support the business. There are certain corporate expenses included in the Americas segment that we do not charge to the other segments including research and development, stock compensation, certain marketing and general and administrative costs that support the global organization, and the amortization of acquired developed technology. Included in the Americas costs are all research and development costs, including the costs associated with our operations in India. During 2025 and 2024, we derived the majority of our revenues from sales to customers within our Americas segment. In the following table, we present a summary of revenue and operating profit by segment:
Previous wording
Cloud subscriptions revenue increased $82.6 million to $337.2 million in 2024 compared to 2023. Our customers have demonstrated a clear preference for cloud-based solutions, including existing customers that are migrating from on-premise to cloud-based offerings. Cloud subscriptions revenue increased $58.7 million, $20.6 million and $3.3 million for the Americas, EMEA, and APAC segments, respectively. Cloud subscriptions revenue recognized from first time cloud customers (defined as customers with no prior cloud subscriptions) during the year in which their initial cloud subscription began was approximately 2% and 3% of total cloud revenue in 2024 and 2023, respectively. Our customers contract for multi-year subscriptions which typically increase in scope and price over the term, and thus revenue recognized during the year when the contract is signed tends to be small relative to the total contract value. Revenue recognized in the initial year excludes revenue from additional solutions sold to the customer in future years and could be impacted by the timing of the start date of the subscription during the year.
Current wording
Cloud subscriptions revenue increased $70.9 million to $408.1 million in 2025 compared to 2024. Our customers have demonstrated a clear preference for cloud-based solutions, including existing customers that are migrating from on-premise to cloud-based offerings. Cloud subscriptions revenue increased $48.7 million, $17.3 million and $4.9 million for the Americas, EMEA, and APAC segments, respectively. Cloud subscriptions revenue recognized from first time cloud customers (defined as customers with no prior cloud subscriptions) during the year in which their initial cloud subscription began was approximately 8% and 2% of total cloud revenue in 2025 and 2024, respectively. Our contracts with first time cloud customers for multi-year subscriptions typically increase in scope and price over the term, and thus revenue recognized during the year when the contract is signed tends to be small relative to the total contract value. Revenue recognized in the initial year excludes revenue from additional solutions sold to the customer in future years and could be impacted by the timing of the start date of the subscription during the year.
Previous wording
Software license revenue decreased $3.1 million to $15.1 million in 2024 compared to 2023 on strong market preference for our cloud-native solutions. License revenue for the Americas segment increased $0.2 million, while license revenue for the EMEA and APAC segments decreased $1.5 million and $1.8 million, respectively, in 2024 over 2023. The majority of our software license revenue relates to our warehouse management product group (approximately 85%) for the year ended December 31, 2024.
Current wording
Software license revenue decreased $0.3 million to $14.8 million in 2025 compared to 2024 on strong market preference for our cloud-native solutions. License revenue for the Americas and APAC segments decreased $6.6 million and $0.7 million, respectively, while license revenue for the EMEA segment increased $7.0 million in 2025 over 2024. The majority of our software license revenue relates to our warehouse management product group (approximately 80%) for the year ended December 31, 2025.
Previous wording
Maintenance revenue decreased by $5.6 million in 2024 compared to 2023. The Americas and EMEA segments decreased $4.2 million and $1.4 million, respectively, compared to 2023, while the APAC segment remained relatively flat. Maintenance relates to our perpetual software licenses.
Current wording
Maintenance revenue decreased by $8.3 million in 2025 compared to 2024. The Americas and APAC segments decreased $8.3 million and $0.6 million, respectively, compared to 2024, while the EMEA segment increased $0.6 million. Maintenance relates to our perpetual software licenses. The decrease in maintenance revenue for the Americas segment is primarily driven by customer demand for cloud-based solutions over perpetual software licenses.
Previous wording
Services revenue increased $37.6 million in 2024 compared to 2023. Service revenue for the Americas, EMEA and APAC segments increased 26.6 million, $6.1 million, and $4.9 million, respectively, compared to 2023. Services revenue was driven by adoption and implementation of our cloud solutions. The percentage of professional services revenue that relates to cloud subscriptions in 2024 and 2023 was approximately 75% and 70%, respectively. Our customers experienced budgetary constraints during the second half of 2024 which negatively impacted our professional services revenue related to cloud subscriptions. The remainder of our professional services revenue relates to implementations, ongoing support, and upgrades of licensed software. Professional services revenue recognized from first time cloud customers (defined as customers with no prior cloud subscriptions) during the year in which their initial cloud subscription began was approximately 7% and 8% of total services revenue in 2024 and 2023, respectively. As with our cloud subscriptions, customers often continue to purchase our professional services beyond their initial implementation to roll out additional locations, implement additional features and functionality, and implement additional products, as well as for general support. Professional services revenue recognized from first time cloud customers excludes those services we provided after the year in which the initial cloud subscription began. Further, the professional services revenue attributable to first time cloud customers could be affected by the timing of the start date of the subscription during the year.
Current wording
Services revenue decreased $22.5 million in 2025 compared to 2024. Service revenue for the Americas segment decreased $24.8 million, while services revenue for the EMEA and APAC segments increased $2.2 million and $0.1 million, respectively, compared to 2024. The decrease in services revenue for the Americas segment is primarily driven by customer budgetary constraints that shifted services work to future periods which negatively impacted our professional services revenue related to cloud subscriptions. The percentage of professional services revenue that relates to cloud subscriptions in 2025 and 2024 was approximately 75%, respectively. The remainder of our professional services revenue relates to implementations, ongoing support, and upgrades of licensed software. Professional services revenue recognized from first time cloud customers (defined as customers with no prior cloud subscriptions) during the year in which their initial cloud subscription began was approximately 7% of total services revenue in 2025 and 2024, respectively. As with our cloud subscriptions, customers often continue to purchase our professional services beyond their initial implementation to roll out additional locations, implement additional features and functionality, and implement additional products, as well as for general support. Professional services revenue recognized from first time cloud customers excludes those services we provided after the year in which the initial cloud subscription began. Further, the professional services revenue attributable to first time cloud customers could be affected by the timing of the start date of the subscription during the year.
Previous wording
Hardware revenue, net increased $2.1 million in 2024 compared to 2023. Hardware revenue, net decreased $5.4 million in 2023 compared to 2022. The majority of hardware sales are derived from our Americas segment. Sales of hardware are largely dependent upon customer-specific desires, which fluctuate.
Current wording
Hardware revenue, net decreased $0.8 million in 2025 compared to 2024. The majority of hardware sales are derived from our Americas segment. Sales of hardware are largely dependent upon customer-specific desires, which fluctuate.
Previous wording
Cost of cloud subscriptions, maintenance and services consists primarily of salaries and other personnel-related expenses of employees dedicated to cloud subscriptions; maintenance services related to perpetual software licenses; and professional and technical services as well as hosting fees. The $40.4 million increase in 2024 compared to 2023 was principally due to a $40.3 million increase in compensation and other personnel-related expenses, a $5.0 million increase in computer infrastructure cost, and a $1.2 million increase in facilities expense, partially offset by a $6.3 million decrease in performance-based compensation expense.
Current wording
Cost of cloud subscriptions, maintenance and services consists primarily of salaries and other personnel-related expenses of employees dedicated to cloud subscriptions; maintenance services related to perpetual software licenses; and professional and technical services as well as hosting fees. The $1.7 million increase in 2025 compared to 2024 was principally due to a $10.6 million increase in computer infrastructure cost, partially offset by a $5.5 million decrease in compensation and other personnel-related expenses, a $2.5 million decrease in performance-based compensation expense, and a $0.8 million decrease in travel expense.
Previous wording
Cost of software license consists of the costs associated with software reproduction; media, packaging and delivery; documentation, and other related costs; and royalties on third-party software sold with or as part of our products. In 2024, cost of license remained relatively flat, compared to 2023. In 2023, cost of software license decreased by $0.7 million compared to 2022.
Current wording
Cost of software license consists of the costs associated with software reproduction; media, packaging and delivery; documentation, and other related costs; and royalties on third-party software sold with or as part of our products. In 2025, cost of license decreased $0.4 million, compared to 2024.
Previous wording
R&D expenses primarily consist of salaries and other personnel-related costs for personnel involved in our research and development activities. Research and development expenses in 2024 increased by $10.9 million compared to 2023. This increase is principally due to a $13.3 million increase in compensation and other personnel-related expenses, partially offset by a $2.2 million decrease in performance-based compensation expense.
Current wording
R&D expenses primarily consist of salaries and other personnel-related costs for personnel involved in our research and development activities. Research and development expenses in 2025 increased by $7.4 million compared to 2024. This increase is principally due to a $7.4 million increase in compensation and other personnel-related expenses.
Previous wording
Sales and marketing expenses include salaries, commissions, travel and other personnel-related costs and the costs of our marketing and alliance programs and related activities. Sales and marketing expenses increased by $1.5 million in 2024 compared to 2023, primarily due to a $2.7 million increase in compensation and other personnel-related expense, and a $0.6 million increase in marketing and campaign expenses, partially offset by a $2.1 million decrease in performance-based compensation expense.
Current wording
Sales and marketing expenses include salaries, commissions, travel and other personnel-related costs and the costs of our marketing and alliance programs and related activities. Sales and marketing expenses increased by $5.2 million in 2025 compared to 2024, primarily due to a $2.6 million increase in compensation and other personnel-related expense, a $1.1 million increase in marketing and campaign expenses, a $0.9 million increase in performance-based compensation expense, and a $0.3 million increase in travel expense.
Previous wording
General and administrative expenses consist primarily of salaries and other personnel-related costs of executive, financial, human resources, information technology, and administrative personnel, as well as facilities, legal, insurance, accounting, and other administrative expenses. General and administrative expenses increased $8.6 million in 2024 primarily due to $7.0 million of expense related to an unusual health insurance claim and a $4.3 million increase in compensation and other personnel-related expenses, partially offset by a $0.9 million decrease in performance-based compensation expense, a $1.2 million decrease in other taxes, and a $0.6 million decrease in computer infrastructure costs.
Current wording
General and administrative expenses consist primarily of salaries and other personnel-related costs of executive, financial, human resources, information technology, and administrative personnel, as well as facilities, legal, insurance, accounting, and other administrative expenses. General and administrative expenses increased $4.0 million in 2025 due to a $3.0 million signing bonus, $0.8 million in recruiting fees, and $6.5 million of stock compensation expense related to the hiring of our new chief executive officer; a $5.4 million increase in compensation and other personnel-related expenses, a $1.5 million increase in professional expense, and a $0.8 million increase in office expense, partially offset by a $13.8 million decrease in expense related to an unusual health insurance claim as the final payment was much lower than the cost estimates previously provided by our health insurance provider.
Previous wording
Depreciation and amortization of intangibles and software expense amounted to $6.3 million, $5.8 million, and $6.7 million in 2024, 2023 and 2022, respectively. Amortization of intangibles was immaterial in 2024, 2023 and 2022. We have recorded acquisition-related intangible assets as part of the purchase accounting associated with various acquisitions.
Current wording
Depreciation and amortization of intangibles and software expense amounted to $6.3 million in 2025 and 2024, respectively. Amortization of intangibles was immaterial in 2025 and 2024. We have recorded acquisition-related intangible assets as part of the purchase accounting associated with various acquisitions.
Previous wording
Operating income in 2024 increased $51.7 million to $261.6 million, compared to $209.9 million for 2023. Operating margins were 25.1% for 2024 versus 22.6% for 2023. Operating income and margin increased primarily due to increased cloud subscriptions and services revenues. In 2024, operating income increased by $32.2 million, $15.8 million, and $3.7 million in the Americas, EMEA and APAC segment, respectively.
Current wording
Operating income in 2025 increased $18.2 million to $279.8 million, compared to $261.6 million for 2024. Operating margins were 25.9% for 2025 versus 25.1% for 2024. Operating income and margin increased primarily due to increased cloud subscriptions. In 2025, operating income increased by $0.2 million, $15.6 million, and $2.4 million in the Americas, EMEA and APAC segment, respectively.
Previous wording
Other (loss) income, net primarily includes interest income, foreign currency gains and losses, and other non-operating expenses. Interest income was $6.0 million, $5.3 million and $0.6 million for 2024, 2023 and 2022, respectively. The weighted-average interest rate earned on cash and investments was approximately 2% in 2024, approximately 2% in 2023, and immaterial in 2022. We recorded net foreign currency losses of $1.0 million in 2024, losses of $1.5 million in 2023, and gains of $4.7 million in 2022. The foreign currency gains and losses mainly resulted from gains or losses on intercompany transactions denominated in foreign currencies with subsidiaries due to the fluctuation of the U.S. dollar relative to other foreign currencies, primarily the British Pound Sterling, Euro, and Indian Rupee.
Current wording
Other (loss) income, net primarily includes interest income, foreign currency gains and losses, and other non-operating expenses. Interest income was $4.4 million and $6.0 million for 2025 and 2024, respectively. The weighted-average interest rate earned on cash and investments was approximately 1% in 2025 and approximately 2% in 2024. We recorded net foreign currency gains of $1.7 million in 2025 and losses of $1.0 million in 2024. The foreign currency gains and losses mainly resulted from gains or losses on intercompany transactions denominated in foreign currencies with subsidiaries due to the fluctuation of the U.S. dollar relative to other foreign currencies, primarily the British Pound Sterling, Euro, and Indian Rupee.
Previous wording
Our effective income tax rates were 18.2%, 17.4%, and 18.4% in 2024, 2023 and 2022, respectively. Our effective income tax rate takes into account the source of taxable income, domestically by state and internationally by country, and available income tax credits.
Current wording
Our effective income tax rates were 23.1% and 18.2% in 2025 and 2024, respectively. Our effective income tax rate takes into account the source of taxable income, domestically by state and internationally by country, and available income tax credits.
Previous wording
The effective tax rate in 2024 increased from 2023 mainly due to a decrease of benefit from a 2023 favorable tax law change allowing creditability of foreign tax, partially offset by an increase of net excess tax benefits on restricted stock vesting in 2024.
Current wording
The effective tax rate in 2025 increased from 2024 mainly due to a decrease of excess tax benefits on restricted stock vesting in 2025, an increase in executive compensation limitations, and an increase in tax contingency reserves.
Previous wording
The income tax provision for 2024, 2023 and 2022 included excess tax benefits of $13.1 million, $6.8 million, and $7.6 million on vesting of restricted stock.
Current wording
The income tax provision for 2025 and 2024 included excess tax benefits of $6.1 million and $13.1 million on vesting of restricted stock.
Previous wording
During 2024, 2023 and 2022, we funded our business through cash generated from operations. Our cash and cash equivalents as of December 31, 2024 included $194.8 million held in the U.S. and $71.4 million held by our foreign subsidiaries. We believe that our cash balances in the U.S. are sufficient to fund our U.S. operations. In the future, if we elect to repatriate the unremitted earnings of our foreign subsidiaries, we would no longer be subject to additional U.S. income taxes on such earnings due to the enactment of the Tax Cuts and Jobs Act in December 2017, but we could be subject to additional local withholding taxes.
Current wording
During 2025 and 2024, we funded our business through cash generated from operations. Our cash and cash equivalents as of December 31, 2025 included $226.6 million held in the U.S. and $102.1 million held by our foreign subsidiaries. We believe that our cash balances in the U.S. are sufficient to fund our U.S. operations. In the future, if we elect to repatriate the unremitted earnings of our foreign subsidiaries, we would no longer be subject to additional U.S. income taxes on such earnings due to the enactment of the Tax Cuts and Jobs Act in December 2017, but we could be subject to additional local withholding taxes.
Previous wording
Cash flow from operating activities totaled $295.0 million, $246.2 million, and $179.6 million in 2024, 2023 and 2022, respectively. Typical factors affecting our cash provided by operating activities include our level of revenue and earnings for the period, the timing and amount of employee bonus and income tax payments, and the timing of cash collections from our customers which is our primary source of operating cash flow. Cash flow from operating activities for 2024 increased $48.8 million compared to 2023 on higher earnings. Cash flow from operating activities for 2023 increased $66.6 million compared to 2022 on higher earnings. Days sales outstanding was 74, 70, and 77 for quarter ending December 31, 2024, 2023 and 2022, respectively, reflecting solid cash collections.
Current wording
Cash flow from operating activities totaled $389.5 million and $295.0 million in 2025 and 2024, respectively. Typical factors affecting our cash provided by operating activities include our level of revenue and earnings for the period, the timing and amount of employee bonus and income tax payments, and the timing of cash collections from our customers which is our primary source of operating cash flow. Cash flow from operating activities for 2025 increased $94.5 million compared to 2024 due to the timing of cash collections from our customers and decrease in cash taxes owed from the acceleration of the deduction for domestic research and development expenditures. Days sales outstanding was 73 and 74 for quarter ending December 2025 and 2024, respectively, reflecting solid cash collections.
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Previous report — wording carried elsewhere
Software license revenue decreased $6.6 million to $18.2 million in 2023 compared to 2022. License revenue for the Americas and EMEA segments decreased $4.3 million and $3.5 million, respectively, while license revenue from the APAC segment increased $1.1 million in 2023 over 2022. The majority of our software license revenue relates to our warehouse management product group (approximately 85%) for the year ended December 31,2023.