Cognyte Software Ltd. Q4 FY2026 earnings call

• Delivered strong results in Q4 and FY26 with revenue growth, improved margins, and profitability. • Operate in growing mission-critical market with high barrier. • Expanding with new and existing customers through install-based expansion, new logos, and North America market scaling. • AI is a structural tailwind. • Secured significant deals in Q4, including with a longstanding national security customer in EMEA and a large state law enforcement agency in US. • Intelligence Summit reinforced leadership position and showed customer priorities of connecting data, reducing time to decision, and enabling collaboration. • Focus on execution and long-term value creation

Q4 FY26 revenue was $106.2 million, up 12.4% YOY. Software revenue was $45.9 million (+22.6% YOY), software services revenue was $49.3 million (+7.4% YOY), total software revenue +14.2% YOY. Recurring revenue $50 million, 47.1% of total revenue. Non-GAAP gross margin 74.7%, up 320bps YOY. Non-GAAP operating income $12.1 million, doubling YOY. Adjusted EBITDA $15 million, up 62.5% YOY. Full-year FY26 revenue $400 million, up 14.1% YOY. Non-GAAP gross margin 73%, up 200bps YOY. GAAP operating income $13.3 million. Cash from operating activities in Q4 $20 million, full-year $40.3 million. Total RPO at end of Q4 $567.2 million, short-term RPO $369.5 million. Due-for-billings grew 15.6% YOY to $109.9 million

• FY27 revenue expected ~$448 million midpoint of range, ~12% YOY growth. • Q1 revenue slightly below Q4, sequential growth each quarter. • Non-GAAP gross margin expected ~73.5% YOY increase. • Non-GAAP operating expenses expected to grow slower than revenue, reaching ~$273 million. • Non-GAAP operating income expected ~$56 million, +50% YOY. • Adjusted EBITDA expected ~$68 million, +40% YOY. • FY28 revenue target ~$500 million, adjusted EBITDA margin over 20%. • Authorized $40 million share repurchase program, with $33 million remaining capacity

Q: Taz Kaljauji with Roth Capital asked about bookings growth, duration, large contracts.

A: Elad Sharon said demand drivers are significant, had large deals like $10+ million with national security customer, $5 million with top NATO member.

Q: Matthew Caltree with Needham & Company asked about U.S. mix, cohort of customers renewing/expanding.

A: Elad Sharon said U.S. is important, 25% of $100 million incremental from FY26-FY28 expected from U.S.

Q: Eric Martinuzzi with Lake Street Capital Markets asked about Q1 revenue seasonality, subscription vs perpetual, pipeline impact of Iran war.

A: Elad Sharon said Q1 usually slightly below Q4, subscription can impact revenue but CRPO gives confidence, security concerns create demand in certain areas.

Q: Charlie Zhu with Evercore ISI asked about buyback cadence, growth and operating margins drivers.

A: David Abadi said balanced approach to buybacks, growth margin improvement due to value perceived by customers and scale