Education
About Us
Working with TipRanks
Follow Us
Cognyte Software (CGNT)
NASDAQ:CGNT
Top Page
Cognyte Software
(NASDAQ:CGNT)
64Neutral
Positive Factors
Customer Acquisition
The company cited traction in acquiring New Logos - adding over 60 during FY25, which nearly doubled yr-yr; in addition to follow-on orders from Existing Customers.
Revenue Growth
Cognyte guided FY26 Revenue to grow 12% yr-yr to $392.0 Million, which exceeded the consensus estimate of $373.5 Million.
Negative Factors
Policy Uncertainty
Cognyte is earlier in its US growth initiative where current policy uncertainty remains top of mind for investors.
Revenue Visibility
Cognyte's cRPO balance exiting FY25 provides 86% visibility into next 12 months' Revenue forecast - down from 89% last year and 94% the year before; and implying a larger 'go-get.'
Cognyte Software (CGNT) vs. S&P 500 (SPY)
Market Cap
$692.22M
Dividend YieldN/A
Average Volume (3M)369.73K
Price to Earnings (P/E)―
Beta (1Y)1.63
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,613
SectorTechnology
Sector Strength39
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.17
Shares Outstanding71,956,190
10 Day Avg. Volume610,208
30 Day Avg. Volume369,729
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.89
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.00Price Target Upside0.50% Upside
Rating ConsensusHold
Number of Analyst Covering2
Cognyte Software Business Overview & Revenue Model
Company DescriptionCognyte Software (CGNT) is a global leader in security analytics software that empowers governments and enterprises with actionable intelligence to address security threats. Operating primarily in the software and technology sector, Cognyte offers solutions that enable organizations to accelerate and improve the performance of investigations, identify new threats, and manage security operations efficiently. Its core products include software for threat intelligence, analytics, and investigation, designed to handle vast amounts of data from various sources.
How the Company Makes MoneyCognyte Software generates revenue primarily through the sale of its software solutions and related services. The company's revenue model includes licensing fees for its software products, which are often sold as part of multi-year contracts. Additionally, Cognyte earns money through maintenance and support services, providing ongoing updates and customer support to its clients. The company may also engage in strategic partnerships and collaborations with government agencies and corporations to expand its market reach and enhance its offerings. Revenue is further supplemented by professional services, which include consulting, training, and custom software development tailored to client-specific needs.
Cognyte Software Financial Statement Overview
Summary
Cognyte Software faces profitability challenges with negative net income and low net profit margins, despite a strong gross profit margin. The balance sheet is stable with low leverage, but negative returns to equity. Cash flow is a positive aspect, with robust operating and free cash flows.Income Statement
The income statement shows a declining trend in revenue with a negative net income for the TTM (Trailing-Twelve-Months). The gross profit margin stands at 68.8%, reflecting strong operational efficiency. However, the net profit margin is negative due to significant net losses, indicating profitability challenges. Revenue growth from the previous year is relatively flat, with only a slight increase.45
Neutral
Balance Sheet
The company's balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.15, indicating low reliance on debt. Return on equity is negative due to net losses, which affects shareholder returns. The equity ratio is 39.4%, showing a stable financial position with a reasonable proportion of equity financing.55
Neutral
Cash Flow
Cash flow analysis reveals positive operating cash flows and improving free cash flow, with a free cash flow growth rate of 6.3%. The operating cash flow to net income ratio is robust, suggesting strong cash generation relative to net losses. However, the free cash flow to net income ratio is constrained by negative net income.60
Neutral
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 339.82M | 313.40M | 312.06M | 474.04M | 443.46M | 457.11M | Gross Profit |
| 233.84M | 215.40M | 192.13M | 341.64M | 310.79M | 293.10M | EBIT |
| -8.89M | -18.05M | -103.32M | 8.46M | 24.91M | 27.31M | EBITDA |
| 481.00K | 573.00K | -77.35M | 29.73M | 47.43M | 47.74M | Net Income Common Stockholders |
| -13.44M | -15.57M | -109.95M | -10.26M | 20.31M | 27.37M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.99M | 74.48M | 52.09M | 163.02M | 83.28M | 207.69M | Total Assets |
| 11.50M | 472.08M | 443.08M | 664.61M | 628.82M | 805.11M | Total Debt |
| 2.95M | 33.36M | 16.97M | 117.18M | 24.14M | 40.04M | Net Debt |
| 407.00K | -41.11M | -17.61M | -35.41M | -54.44M | -161.05M | Total Liabilities |
| 5.57M | 257.35M | 233.30M | 365.52M | 358.45M | 349.94M | Stockholders Equity |
| 5.92M | 197.88M | 194.13M | 285.14M | 257.50M | 444.54M |
| Cash Flow | Free Cash Flow | ||||
| 27.10M | 25.49M | -48.67M | -15.16M | 51.98M | 45.86M | Operating Cash Flow |
| 38.77M | 34.56M | -36.99M | 2.63M | 71.31M | 67.19M | Investing Cash Flow |
| 15.78M | 9.36M | 20.13M | -17.85M | 16.42M | -29.54M | Financing Cash Flow |
| -2.44M | -2.45M | -102.93M | 58.74M | -205.62M | -85.97M |
Cognyte Software Technical Analysis
Positive
9.95
Price Trends
9.13
Positive
8.77
Positive
7.96
Positive
Market Momentum
-0.28
Negative
43.21
Neutral
32.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CGNT, the sentiment is Positive. The current price of 9.95 is above the 20-day moving average (MA) of 8.37, above the 50-day MA of 9.13, and above the 200-day MA of 7.96, indicating a bullish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 43.21 is Neutral, neither overbought nor oversold. The STOCH value of 32.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CGNT.
Cognyte Software Risk Analysis
Cognyte Software disclosed 60 risk factors in its most recent earnings report. Cognyte Software reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cognyte Software Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.69B | 27.73 | 41.09% | ― | 10.40% | 14.78% | |
73 Outperform | $14.32B | 30.37 | 21.59% | ― | 19.81% | 139.58% | |
64 Neutral | $692.22M | ― | -6.76% | ― | ― | ― | |
57 Neutral | $20.94B | 10.43 | -13.41% | 2.52% | 4.53% | -23.34% | |
56 Neutral | $4.60B | ― | -20.26% | ― | 10.38% | 6.88% | |
54 Neutral | $2.69B | ― | -32.07% | ― | 23.79% | 4.10% | |
41 Neutral | $103.91M | ― | -365.12% | ― | -16.08% | 37.41% |
* Technology Sector Average
Performance Comparison
CGNT
Cognyte Software
9.62
1.48
18.18%
QLYS
Qualys
123.27
-41.57
-25.22%
VRNS
Varonis Systems
40.48
-7.33
-15.33%
VERI
Veritone
2.24
-4.30
-65.75%
DT
Dynatrace
45.66
-0.32
-0.70%
AI
C3ai
20.29
-4.87
-19.36%
Cognyte Software Earnings Call Summary
Earnings Call Date: Apr 2, 2025 | % Change Since: 21.05% | Next Earnings Date: Jun 24, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance for Cognyte, with significant growth in revenue, profitability, and cash flow. The company successfully expanded its customer base and secured large deals, particularly in the U.S. market. However, challenges such as a modest decline in revenue from the Americas, a decrease in RPO, and extended sales cycles in the U.S. federal market present areas of concern. Overall, the positive aspects outweigh the lowlights.Highlights
Double-Digit Revenue Growth
Cognyte achieved a 13% year-over-year revenue growth in Q4, reaching $94.5 million. For the full fiscal year, revenue grew by approximately 12% to $351 million.
Significant Profitability Increase
Non-GAAP gross profit increased by 17% year-over-year in Q4. Adjusted EBITDA for the quarter was more than $9 million, representing a 114% year-over-year growth.
Strong Cash Flow
Cash flow from operations was $19 million in Q4 and $47 million for the full fiscal year.
Expansion in Customer Base
Cognyte added over 60 new customers across multiple regions over the full year, about twice as many as the previous fiscal year.
Success in Securing Large Deals
In Q4, Cognyte secured multiple significant deals, including a $10 million deal with a law enforcement agency in EMEA and five deals worth $5 million or more.
U.S. Market Growth
Cognyte reported an increase in U.S. revenue and is actively pursuing opportunities in the U.S. federal law enforcement market.
Positive Fiscal 2026 Outlook
For fiscal 2026, Cognyte expects revenue to be approximately $392 million with a 12% year-over-year growth and adjusted EBITDA of about $43 million, representing 45% year-over-year growth.
Lowlights
Decline in Revenue from the Americas
Revenue from the Americas region declined modestly last year, although U.S. revenue increased.
RPO Decrease
Total remaining performance obligations (RPO) were down by about $45 million compared to last year.
Extended Sales Cycles in U.S. Federal Market
The sales cycle with U.S. federal law enforcement customers is longer than with state and local agencies.
Potential Challenges in Cash Flow
Although strong cash flow was reported, cash flow from operations is expected to decline slightly to $45 million in fiscal 2026.
Company Guidance
In the recent earnings call, Cognyte provided robust guidance for fiscal year 2026, projecting approximately $392 million in revenue, representing a 12% year-over-year growth at the midpoint. The company anticipates that gross profit will grow faster than revenue, with an expected adjusted EBITDA of about $43 million, indicating an approximate 45% increase year-over-year. This guidance is underpinned by strong market demand, especially in the U.S., where the company plans to deepen customer relationships and expand its footprint. Cognyte also highlighted the addition of over 60 new customers in the past year, reinforcing the significant market opportunity ahead. The company remains committed to leveraging its innovative solutions to drive long-term growth and profitability.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.