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CGNT

Cognyte Software Ltd.

CGNT

Cognyte Software Ltd. • NASDAQ
$8.40 ▲ 1.08% (+0.09)
Market Cap $608.07 M
52w High $11.65
52w Low $7.64
Dividend Yield 0%
P/E -140
Volume 126.61K
Outstanding Shares 72.39M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2026 $97.513M ▲ $67.016M ▲ $1.469M ▲ 1.506% ▲ $0.02 ▲ $5.78M ▼
Q1-2026 $95.548M ▲ $65.993M ▼ $-981K ▲ -1.027% ▲ $-0.014 ▲ $7.119M ▲
Q4-2025 $94.505M ▲ $66.342M ▲ $-1.228M ▲ -1.299% ▲ $-0.017 ▲ $3.034M ▲
Q3-2025 $89M ▲ $64.028M ▲ $-3.772M ▼ -4.238% ▼ $-0.052 ▼ $1.457M ▼
Q2-2025 $84.413M $61.014M $-1.934M -2.291% $-0.027 $3.132M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2026 $84.485M ▼ $487.953M ▼ $262.885M ▼ $203.02M ▲
Q1-2026 $102.642M ▼ $491.498M ▼ $275.705M ▼ $195.135M ▼
Q4-2025 $112.719M ▲ $497.82M ▼ $280.717M ▼ $198.192M ▼
Q3-2025 $101.774M ▲ $504.058M ▲ $284.419M ▲ $198.74M ▲
Q2-2025 $91.741M $467.018M $250.763M $196.782M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2026 $1.469M ▲ $-6.319M ▼ $-6.308M ▼ $-5.832M ▲ $-18.25M ▼ $-8.37M ▼
Q1-2026 $142K ▲ $1.71M ▼ $-4.044M ▼ $-9.017M ▼ $-10.067M ▼ $-2.46M ▼
Q4-2025 $-216K ▲ $18.69M ▲ $-3.053M ▲ $-7.952M ▼ $7.012M ▼ $14.433M ▲
Q3-2025 $-2.562M ▼ $12.296M ▲ $-4.865M ▼ $0 $7.762M ▲ $7.611M ▲
Q2-2025 $-1.934M $-5.658M $-1.197M $0 $-6.481M $-8.019M

Revenue by Products

Product Q2-2013Q3-2013Q1-2014Q2-2014
Industrial
Industrial
 $0 ▲$0 ▲$0 ▲$0 ▲
Medical
Medical
 $0 ▲$0 ▲$0 ▲$0 ▲
Consolidated
Consolidated
 $0 ▲$0 ▲$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has been fairly steady over the past several years, with a recent return to modest growth after a period of softness. The company consistently generates healthy gross margins, meaning its core software business has solid economics. However, profitability has been fragile: operating results and net income have hovered around break-even or small losses for several years, with only a brief period of clear profitability early on. The encouraging sign is that losses have narrowed recently and operating performance is much closer to break-even than during the worst year, suggesting the cost base is becoming better aligned with revenue. Still, the track record shows that earnings are not yet firmly established or predictable.

Balance Sheet

Balance Sheet The balance sheet looks relatively conservative. Total assets have come down from earlier peaks but appear to have stabilized, indicating some slimming down of the business. Cash levels dipped to a low point a couple of years ago but have since been rebuilt, which improves financial flexibility. Debt is modest and has been reduced significantly from earlier years, easing financial risk. Shareholders’ equity has trended down from initial levels and then flattened, reflecting past losses but a more stable recent picture. Overall, Cognyte appears to be operating with a light debt load and a rebuilt cash cushion, but without a large equity buffer to absorb major shocks.

Cash Flow

Cash Flow Cash flow has improved meaningfully. A few years ago the company was burning cash from operations, but more recently it has been generating positive operating cash flow. After a stretch of negative free cash flow, the business is now producing positive free cash flow while keeping investment spending relatively modest. Capital expenditures are low and stable, consistent with a software model that does not require heavy physical investment. This shift from cash burn to cash generation is a key positive trend, although it will need to be sustained across different market conditions to be fully convincing.

Competitive Edge

Competitive Edge Cognyte operates in a specialized corner of security and investigative analytics, mainly serving governments, law enforcement, and intelligence agencies. Its long history in this niche gives it deep domain expertise that is difficult for new entrants to copy. Once installed, its systems are tightly woven into critical workflows, creating high switching costs and making customers “sticky.” The company positions its main platform as a more flexible and cost-effective alternative to larger, high-profile competitors, and recent wins against incumbent vendors support the idea that its technology is competitive. At the same time, the firm faces intense competition from well-funded players, depends heavily on government budgets and long procurement cycles, and must navigate complex regulatory and geopolitical environments. The moat is real but not unassailable.

Innovation and R&D

Innovation and R&D Cognyte is clearly leaning into innovation, especially around artificial intelligence. Its investigative analytics platform uses AI and machine learning to help customers sift through huge amounts of data, and the new AI “co-pilot” aims to make complex analysis accessible through natural language and visual tools. The open architecture of its systems makes integration with existing customer tools easier and reduces fears of vendor lock-in, which can be a strong selling point. The company invests heavily in research and development, which supports continual product upgrades but also keeps costs elevated and delays sustained profitability. New offerings like the NEXYTE decision intelligence platform, the LUMINAR cyber threat platform, tactical intelligence solutions, and the GroupSense acquisition all point to an aggressive innovation agenda. The big question is how quickly these innovations translate into broader adoption, higher recurring revenue, and stronger margins.

Summary

Cognyte is a niche software company focused on investigative and security analytics, with a strong technical foundation and deep ties to government and security customers. Financially, the business has moved from clear losses toward near break-even results, with improving cash flow and a leaner, less leveraged balance sheet, but it does not yet have a long history of stable profitability. Its competitive position rests on specialized expertise, sticky customer relationships, and differentiated AI-driven products, but it operates in a demanding market with powerful rivals and complex customer dynamics. The company’s heavy investment in AI and new platforms offers meaningful upside potential if adoption continues to grow, while the main risks center on execution, dependence on security spending, and the need to turn innovation into durable, recurring earnings.

NEWS

November 25, 2025 · 8:00 AM UTC

Cognyte to Announce Third Quarter FYE26 Financial Results on December 9, 2025

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November 19, 2025 · 8:00 AM UTC

Cognyte Secures ~$5M Deal with New Tier-1 Military Intelligence Agency in EMEA

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November 17, 2025 · 6:05 AM UTC

Cognyte to Feature Latest Homeland Security Innovations at Milipol Paris 2025

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November 13, 2025 · 8:00 AM UTC

Cognyte Wins ~$5M Deal with New Tier-1 Law Enforcement Customer in EMEA

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November 11, 2025 · 8:00 AM UTC

Cognyte Recognized as a Sample Vendor in the 2025 Gartner® Emerging Tech Impact Radar: Preemptive Cybersecurity

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