NiCE Reports 13% Year-Over-Year Cloud Revenue Growth for the Third Quarter 2025 and Raises Full-Year 2025 Revenue Guidance

HOBOKEN, N.J.--( BUSINESS WIRE)--NiCE (NASDAQ: NICE) today announced results for the third quarter ended September 30, 2025, as compared to the corresponding periods of the previous year.

Third Quarter 2025 Financial Highlights

GAAP

Non-GAAP

Total revenue was $732.0 million and increased 6%

Cloud revenue was $562.9 million and increased 13%

Operating income was $160.8 million and increased 14%

Operating income was $230.9 million and increased 5%

Operating margin was 22.0% compared to 20.5% last year

Operating margin was 31.5% compared to 32.0% last year

Diluted EPS was $2.29 and increased 23%

Diluted EPS was $3.18 and increased 10%

Net cash provided by operating activities was $190.5 million and increased 20%

“We’re pleased to report a strong third quarter, stemming from the continued execution of our AI-first strategy and our outstanding go-to-market performance” said Scott Russell, CEO of NiCE. “Total revenue was $732 million, at the high end of our guidance, with cloud revenue increasing 13% year over year to $563 million. Our cloud revenue growth was fueled by the strong momentum of our CX AI and Self-Service business, whose ARR growth accelerated to 49% year over year, and 43% year over year excluding Cognigy. Our AI capabilities were included in every new seven-figure CX deal, underscoring the expansion of our AI-powered, enterprise-grade solutions.

Mr. Russell continued, “Our AI momentum continues to accelerate, with sustained organic performance amplified by the integration of Cognigy. Together with CXone, we’re redefining what’s possible in customer experience — bringing AI, contextual engagement data, and automation together in a unified real-time platform that drives meaningful business outcomes. The strength of our strategy, combined with the pace of our innovation and execution, positions NiCE at the forefront of the industry’s AI transformation.”

GAAP Financial Highlights for the Third Quarter Ended September 30:

Revenues:

Third quarter 2025 total revenues increased 6% year over year to $732.0 million compared to $690.0 million for the third quarter of 2024.

Gross Profit:

Third quarter 2025 gross profit was $489.1 million compared to $460.3 million for the third quarter of 2024. Third quarter 2025 gross margin was 66.8% compared to 66.7% for the third quarter of 2024.

Operating Income:

Third quarter 2025 operating income increased 14% to $160.8 million compared to $141.4 million for the third quarter of 2024. Third quarter 2025 operating margin was 22.0% compared to 20.5% for the third quarter of 2024.

Net Income:

Third quarter 2025 net income increased 20% to $144.9 million compared to $120.9 million for the third quarter of 2024. Third quarter 2025 net income margin was 19.8% compared to 17.5% for the third quarter of 2024.

Fully Diluted Earnings Per Share:

Third quarter 2025 fully diluted earnings per share increased 23% to $2.29 compared to $1.86 in the third quarter of 2024.

Cash Flow and Cash Balance:

Third quarter 2025 operating cash flow was $190.5 million and $40.6 million was used for share repurchases. All outstanding debt was fully settled in cash during the quarter, resulting in net cash and investments of $455.9 million.

Non-GAAP Financial Highlights for the Third Quarter Ended September 30:

Revenues:

Third quarter 2025 non-GAAP total revenues increased 6% year over year to $732.0 million compared to $690.0 million for the third quarter of 2024.

Gross Profit:

Third quarter 2025 non-GAAP gross profit increased to $511.6 million compared to $490.3 million for the third quarter of 2024. Third quarter 2025 non-GAAP gross margin was 69.9% compared to 71.1% for the third quarter of 2024.

Operating Income:

Third quarter 2025 non-GAAP operating income increased 5% to $230.9 million compared to $220.8 million for the third quarter of 2024. Third quarter 2025 non-GAAP operating margin was 31.5% compared to 32.0% for the third quarter of 2024.

Net Income:

Third quarter 2025 non-GAAP net income increased 7% to $200.8 million compared to $186.9 million for the third quarter of 2024. Third quarter 2025 non-GAAP net income margin totaled 27.4% compared to 27.1% for the third quarter of 2024.

Fully Diluted Earnings Per Share:

Third quarter 2025 non-GAAP fully diluted earnings per share increased 10% to $3.18 compared to $2.88 for the third quarter of 2024.

Full-Year 2025 Guidance*:

The Company is raising its full-year 2025 non-GAAP total revenues to be in an expected range of $2,932 million to $2,946 million, representing 7% year over year growth at the midpoint compared to full-year 2024.

The Company is updating full-year 2025 non-GAAP fully diluted earnings per share to be in a range of $12.18 to $12.32, representing 10% year over year growth at the midpoint compared to full-year 2024.

*The updated guidance includes the expected results of Cognigy from the date of acquisition through year end.

Quarterly Results Conference Call

NiCE management will host its earnings conference call today, November 13, 2025, at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the results and the company's outlook. A live webcast and replay will be available on the Investor Relations page of the Company’s website. To access, please register by clicking here: https://www.nice.com/investor-relations/upcoming-event.

Explanation of Non-GAAP measures

Non-GAAP financial measures are included in this press release. Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude share-based compensation, amortization of acquired intangible assets, acquisition related expenses, amortization of discount on debt and the tax effect of the Non-GAAP adjustments.

The Company believes that these Non-GAAP financial measures, used in conjunction with the corresponding GAAP measures, provide investors with useful supplemental information about the ongoing financial performance of our business. Our management regularly uses our supplemental Non-GAAP financial measures internally to understand, manage and evaluate our business and to make financial, strategic and operating decisions. These Non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Our Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. These Non-GAAP financial measures may differ materially from the Non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income. The Company provides guidance only on a Non-GAAP basis. A reconciliation of guidance from a GAAP to Non-GAAP basis is not available due to the unpredictability and uncertainty associated with future events that would be reported in GAAP results and would require adjustments between GAAP and Non-GAAP financial measures, including the impact of future possible business acquisitions. Accordingly, a reconciliation of the guidance based on Non-GAAP financial measures to corresponding GAAP financial measures for future periods is not available without unreasonable effort.

About NiCE

NiCE (NASDAQ: NICE) is transforming the world with AI that puts people first. Our purpose-built AI-powered platforms automate engagements into proactive, safe, intelligent actions, empowering individuals and organizations to innovate and act, from interaction to resolution. Trusted by organizations throughout 150+ countries worldwide, NiCE’s platforms are widely adopted across industries connecting people, systems, and workflows to work smarter at scale, elevating performance across the organization, delivering proven measurable outcomes.

Trademark Note: NiCE and the NiCE logo are trademarks or registered trademarks of NICE. All other marks are trademarks of their respective owners. For a full list of NiCE trademarks, please see: http://www.nice.com/nice-trademarks.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as “believe”, “expect”, “seek”, “may”, “will”, “intend”, “should”, “project”, “anticipate”, “plan”, and similar expressions. Forward-looking statements are based on the current beliefs, expectations and assumptions of the Company’s management regarding the future of the Company’s business, performance, future plans and strategies, projections, anticipated events and trends, the economic environment, and other future conditions. Examples of forward-looking statements include guidance regarding the Company’s revenue and earnings and the growth of our cloud, analytics and artificial intelligence business.

Forward looking statements are inherently subject to significant uncertainties, contingencies, and risks, including, economic, competitive and other factors, which are difficult to predict and many of which are beyond the control of management. The Company cautions that these statements are not guarantees of future performance, and investors should not place undue reliance on them. There are or will be important known and unknown factors and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These factors, include, but are not limited to, risks associated with changes in economic and business conditions, competition, successful execution of the Company’s growth strategy, success and growth of the Company’s cloud Software-as-a-Service business, difficulties in making additional acquisitions or effectively integrating acquired operations, products, technologies and personnel, the Company’s dependency on third-party cloud computing platform providers, hosting facilities and service partners, rapid changes in technology and market requirements, the implementation of AI capabilities in certain products and services; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications, loss of market share, cyber security attacks or other security incidents, privacy concerns and legislation impacting the Company’s business, changes in currency exchange rates and interest rates, the effects of additional tax liabilities resulting from our global operations, the effect of unexpected events or geo-political conditions, including those arising from political instability or armed conflict that may disrupt our business and the global economy, our ability to recruit and retain qualified personnel, the effect of newly enacted or modified laws, regulation or standards on the Company and our products, and various other factors and uncertainties discussed in our filings with the U.S. Securities and Exchange Commission (the “SEC”).

You are encouraged to carefully review the section entitled “Risk Factors” in our latest Annual Report on Form 20-F and our other filings with the SEC for additional information regarding these and other factors and uncertainties that could affect our future performance. The forward-looking statements contained in this press release speak only as of the date hereof, and the Company undertakes no obligation to update or revise them, whether as a result of new information, future developments or otherwise, except as required by law.

NICE LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

September 30,

December 31,

2025

2024

Unaudited

Audited

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

418,052

481,712

Short-term investments

37,840

1,139,996

Trade receivables

714,915

643,985

Prepaid expenses and other current assets

212,159

239,080

Total current assets

1,382,966

2,504,773

LONG-TERM ASSETS:

Property and equipment, net

188,373

185,292

Deferred tax assets

222,486

219,232

Other intangible assets, net

624,057

231,346

Operating lease right-of-use assets

76,611

93,083

Goodwill

2,438,371

1,849,668

Prepaid expenses and other long-term assets

218,658

212,512

Total long-term assets

3,768,556

2,791,133

TOTAL ASSETS

5,151,522

5,295,906

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Trade payables

92,114

110,603

Deferred revenues and advances from customers

345,315

299,367

Current maturities of operating leases

12,783

12,554

Debt

458,791

Accrued expenses and other liabilities

530,024

593,109

Total current liabilities

980,236

1,474,424

LONG-TERM LIABILITIES:

Deferred revenues and advances from customers

61,996

66,289

Operating leases

74,071

92,258

Deferred tax liabilities

114,136

1,965

Other long-term liabilities

60,337

57,807

Total long-term liabilities

310,540

218,319

SHAREHOLDERS' EQUITY

Nice Ltd's equity

3,860,746

3,589,742

Non-controlling interests

13,421

Total shareholders' equity

3,860,746

3,603,163

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

5,151,522

5,295,906

NICE LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

U.S. dollars in thousands (except per share amounts)

Quarter ended

Year to date

September 30,

2025

2024

2025

2024

Unaudited

Revenue:

Cloud

562,942

500,114

1,630,087

1,450,213

Services

138,706

149,857

419,389

446,381

Product

30,351

39,992

109,427

117,078

Total revenue

731,999

689,963

2,158,903

2,013,672

Cost of revenue:

Cloud

189,661

178,923

555,106

519,603

Services

47,218

44,652

141,715

137,401

Product

6,051

6,111

19,790

20,134

Total cost of revenue

242,930

229,686

716,611

677,138

Gross profit

489,069

460,277

1,442,292

1,336,534

Operating expenses:

Research and development, net

90,463

91,500

269,327

265,854

Selling and marketing

161,864

152,778

493,097

465,438

General and administrative

75,968

74,620

210,333

213,600

Total operating expenses

328,295

318,898

972,757

944,892

Operating income

160,774

141,379

469,535

391,642

Financial and other income, net

(21,136)

(12,280)

(51,806)

(41,934)

Income before tax

181,910

153,659

521,341

433,576

Taxes on income

37,057

32,738

59,794

90,497

Net income

144,853

120,921

461,547

343,079

Earnings per share:

Basic

2.33

1.91

7.38

5.41

Diluted

2.29

1.86

7.26

5.22

Weighted average shares outstanding:

Basic

62,036

63,397

62,512

63,403

Diluted

63,161

64,838

63,574

65,741

NICE LTD. AND SUBSIDIARIES

CONSOLIDATED CASH FLOW STATEMENTS

U.S. dollars in thousands

Quarter ended

Year to date

September 30,

2025

2024

2025

2024

Unaudited

Operating Activities

Net income

144,853

120,921

461,547

343,079

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

48,918

52,964

136,971

156,244

Share-based compensation

35,834

47,252

116,481

133,882

Amortization of premium and discount and accrued interest on marketable securities

5,838

(3,398)

1,534

(6,726)

Deferred taxes, net

15,997

(27,542)

(9,297)

(38,949)

Changes in operating assets and liabilities:

Trade Receivables, net

(26,621)

(41,462)

(52,685)

(40,032)

Prepaid expenses and other current assets

19,681

17,164

33,390

27,665

Operating lease right-of-use assets

2,309

3,273

11,135

9,926

Trade payables

11,596

(2,293)

(19,811)

4,646

Accrued expenses and other current liabilities

(35,295)

22,149

(144,756)

(21,555)

Deferred revenue

(30,806)

(28,094)

19,049

22,187

Realized gain on marketable securities, net

(4,463)

Operating lease liabilities

(2,643)

(2,748)

(13,578)

(10,524)

Amortization of discount on long-term debt

361

430

1,210

1,404

Other

4,941

345

166

1,872

Net cash provided by operating activities

190,500

158,961

536,893

583,119

Investing Activities

Purchase of property and equipment

(7,258)

(10,419)

(15,504)

(27,395)

Purchase of Investments

(14,903)

(138,219)

(89,044)

(575,332)

Proceeds from sales of marketable investments

1,064,132

60,125

1,198,906

628,246

Capitalization of internal use software costs

(19,663)

(16,812)

(54,566)

(47,986)

Payments for business acquisitions, net of cash acquired

(826,583)

(44,507)

(863,049)

(44,507)

Net cash provided by (used in) investing activities

195,725

(149,832)

176,743

(66,974)

Financing Activities

Proceeds from issuance of shares upon exercise of options

1,023

2,340

Purchase of treasury shares

(40,551)

(86,437)

(323,719)

(274,040)

Dividends paid to noncontrolling interest

(2,681)

Repayment of debt

(460,000)

(87,435)

Net cash used in financing activities

(500,536)

(86,409)

(782,696)

(361,816)

Effect of exchange rates on cash and cash equivalents

(2,087)

4,508

4,199

1,260

Net change in cash, cash equivalents and restricted cash

(116,398)

(72,772)

(64,861)

155,589

Cash, cash equivalents and restricted cash, beginning of period

536,569

741,675

485,032

513,314

Cash, cash equivalents and restricted cash, end of period

420,171

668,903

420,171

668,903

Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet:

Cash and cash equivalents

418,052

666,734

418,052

666,734

Restricted cash included in other current assets

2,119

2,169

2,119

2,169

Total cash, cash equivalents and restricted cash shown in the statement of cash flows

420,171

668,903

420,171

668,903

NICE LTD. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

U.S. dollars in thousands (except per share amounts)

Quarter ended

Year to date

September 30,

2025

2024

2025

2024

GAAP revenues

731,999

689,963

2,158,903

2,013,672

Non-GAAP revenues

731,999

689,963

2,158,903

2,013,672

GAAP cost of revenue

242,930

229,686

716,611

677,138

Amortization of acquired intangible assets on cost of cloud

(17,177)

(24,278)

(45,782)

(73,778)

Amortization of acquired intangible assets on cost of product

(410)

Cost of cloud revenue adjustment (1,2)

(2,910)

(3,175)

(9,381)

(9,029)

Cost of services revenue adjustment (1)

(2,431)

(2,511)

(7,127)

(7,506)

Cost of product revenue adjustment (1)

(22)

(30)

(65)

(90)

Non-GAAP cost of revenue

220,390

199,692

654,256

586,325

GAAP gross profit

489,069

460,277

1,442,292

1,336,534

Gross profit adjustments

22,540

29,994

62,355

90,813

Non-GAAP gross profit

511,609

490,271

1,504,647

1,427,347

GAAP operating expenses

328,295

318,898

972,757

944,892

Research and development (1,2)

(4,762)

(6,734)

(12,633)

(22,361)

Sales and marketing (1,2)

(13,457)

(14,944)

(42,129)

(42,326)

General and administrative (1,2)

(22,469)

(22,154)

(58,951)

(59,414)

Amortization of acquired intangible assets

(6,859)

(5,613)

(18,508)

(15,824)

Valuation adjustment on acquired deferred commission

Non-GAAP operating expenses

280,748

269,454

840,536

804,991

GAAP financial and other income, net

(21,136)

(12,280)

(51,806)

(41,934)

Amortization of discount on debt

(361)

(430)

(1,210)

(1,404)

Change in fair value of contingent consideration

(36)

(115)

Realized gain on marketable securities, net

4,463

Non-GAAP financial and other income, net

(17,034)

(12,746)

(48,553)

(43,453)

GAAP taxes on income

37,057

32,738

59,794

90,497

Tax adjustments re non-GAAP adjustments

10,043

13,886

76,763

42,665

Non-GAAP taxes on income

47,100

46,624

136,557

133,162

GAAP net income

144,853

120,921

461,547

343,079

Amortization of acquired intangible assets

24,036

29,891

64,290

90,012

Valuation adjustment on acquired deferred commission

(1)

(24)

Share-based compensation (1)

37,380

48,731

121,220

137,997

Acquisition related expenses (2)

8,671

817

9,066

2,729

Amortization of discount on debt

361

430

1,210

1,404

Realized gain on marketable securities, net

(4,463)

Change in fair value of contingent consideration

115

Tax adjustments re non-GAAP adjustments

(10,043)

(13,886)

(76,763)

(42,665)

Non-GAAP net income

200,795

186,939

576,107

532,647

GAAP diluted earnings per share

2.29

1.86

7.26

5.22

Non-GAAP diluted earnings per share

3.18

2.88

9.06

8.10

Shares used in computing GAAP diluted earnings per share

63,161

64,838

63,574

65,741

Shares used in computing non-GAAP diluted earnings per share

63,161

64,838

63,574

65,741

NICE LTD. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)

U.S. dollars in thousands

(1)

Share-based compensation

Quarter ended

Year to date

September 30,

2025

2024

2025

2024

Cost of cloud revenue

2,910

3,175

9,381

8,967

Cost of services revenue

2,431

2,511

7,127

7,506

Cost of product revenue

Research and development

4,762

6,734

12,633

22,031

Sales and marketing

13,447

14,937

42,119

41,676

General and administrative

13,808

21,344

49,895

57,727

37,380

48,731

121,220

137,997

(2)

Acquisition related expenses

Quarter ended

Year to date

September 30,

2025

2024

2025

2024

Cost of cloud revenue

Research and development

330

Sales and marketing

650

General and administrative

8,661

810

9,056

1,687

8,671

817

9,066

2,729

NICE LTD. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP EBITDA

U.S. dollars in thousands

Quarter ended

Year to date

September 30,

2025

2024

2025

2024

Unaudited

GAAP net income

144,853

120,921

461,547

343,079

Non-GAAP adjustments:

Depreciation and amortization

48,918

52,964

136,971

156,244

Share-based compensation

35,834

47,252

116,481

133,882

Financial and other income, net

(21,136)

(12,280)

(51,806)

(41,934)

Acquisition related expenses

8,671

817

9,066

2,729

Valuation adjustment on acquired deferred commission

(1)

(24)

Taxes on income

37,057

32,738

59,794

90,497

Non-GAAP EBITDA

254,197

242,411

732,053

684,473

NICE LTD. AND SUBSIDIARIES

NON-GAAP RECONCILIATION - FREE CASH FLOW FROM CONTINUING OPERATIONS

U.S. dollars in thousands

Quarter ended

Year to date

September 30,

2025

2024

2025

2024

Unaudited

Net cash provided by operating activities

190,500

158,961

536,893

583,119

(7,258)

(10,419)

(15,504)

(27,395)

(19,663)

(16,812)

(54,566)

(47,986)

Free Cash Flow (a)

163,579

131,730

466,823

507,738

(a) Free cash flow from continuing operations is defined as operating cash flows from continuing operations less capital expenditures of the continuing operations and less capitalization of internal use software costs.