Commvault Announces Fourth Quarter Fiscal 2026 Financial Results
Achieved all fourth quarter and fiscal 2026 guided metrics
Record $132 million free cash flow in fourth quarter
Total reported ARR grew +21% year over year, with $44 million in constant currency net new ARR
Tinton Falls, N.J., April 28, 2026 /PRNewswire/ -- Commvault [Nasdaq: CVLT] today announced its financial results for the fourth quarter and fiscal year ended March 31, 2026.
"Our results reinforce that we are delivering durable growth fueled through industry-leading innovation and our rapidly expanding SaaS business," said Sanjay Mirchandani, President and CEO, Commvault. "In fiscal 2027, the rise of AI will create more data and more risk – which in turn increases demand for our platform's trusted protection, governance, and recovery capabilities. We believe we are well positioned to deliver profitable growth through new and expanding customer relationships."
Notes are contained at the end of this press release
Fourth Quarter Fiscal 2026 Highlights -
Full Year Fiscal 2026 Highlights -
Recent Business Highlights -
Financial Outlook for First Quarter and Full Year Fiscal 2027 3 -
We are providing the following guidance for the first quarter of fiscal year 2027, based on the recast definitions set forth at the end of this earnings press release:
We are providing the following guidance for the full fiscal year 2027, based on the recast definitions set forth at the end of this earnings press release:
The above guidance metrics contemplate current exchange rates and current macroeconomic conditions. In addition, guidance for Subscription Revenue and Subscription ARR reflects the recast definitions set forth in the Recast Section at the end of this earnings press release.
These statements are forward-looking and made pursuant to the safe harbor provisions discussed in detail below. We do not undertake any obligation to update these forward-looking statements. Actual results may differ materially from anticipated results.
Conference Call Information
Commvault will host a conference call today, April 28, 2026 at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time) to discuss quarterly results. The live webcast and call dial-in numbers can be accessed by registering under the "News & Events" section of Commvault's website at ir.commvault.com under the "Investor Events" heading. An archived webcast of this conference call will also be available following the call.
About Commvault
Commvault (Nasdaq: CVLT) is a leader in unified resilience at enterprise scale. In a constantly evolving threat landscape, Commvault keeps customers ready by unifying data security, identity resilience, and cyber recovery, on one cloud-native, AI-enabled platform. Customers trust Commvault to conduct the fastest, most complete recoveries – not just their data, but their entire business. Purpose-built for the agentic enterprise, Commvault also enables organizations to safely embrace AI while protecting against AI-driven threats.
Safe Harbor Statement
This press release may contain forward-looking statements, including statements regarding financial projections, which are subject to risks and uncertainties, such as those related to our restructuring plans, competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of software products and related services, general economic conditions, outcome of litigation and others. For a discussion of these and other risks and uncertainties affecting Commvault's business, see "Item 1A. Risk Factors" in our annual report on Form 10-K and "Item 1A. Risk Factors" in our most recent quarterly report on Form 10-Q. Statements regarding Commvault's beliefs, plans, expectations or intentions regarding the future are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from anticipated results. Commvault does not undertake to update its forward-looking statements.
Overview
($ in thousands)
Q4'25
Q1'26
Q2'26
Q3'26
Q4'26
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Subscription:
Term-based license
$ 107,954
33 %
$ 109,282
36 %
$ 92,647
10 %
$ 118,950
22 %
$ 114,445
6 %
SaaS
65,274
69 %
72,445
66 %
80,018
61 %
87,379
44 %
93,139
43 %
Total subscription
173,228
45 %
181,727
46 %
172,665
29 %
206,329
30 %
207,584
20 %
Perpetual license
14,962
(2) %
7,335
(47) %
12,073
15 %
13,675
(17) %
10,129
(32) %
Customer support
76,509
(1) %
79,021
4 %
80,229
3 %
80,271
4 %
80,905
6 %
Other services
10,340
(8) %
13,895
31 %
11,221
2 %
13,557
25 %
13,074
26 %
Total revenues
$ 275,039
23 %
$ 281,978
26 %
$ 276,188
18 %
$ 313,832
19 %
$ 311,692
13 %
FY'25
FY'26
Revenue
Y/Y Growth
Revenue
Y/Y Growth
Subscription:
Term-based license
$ 370,411
22 %
$ 435,324
18 %
SaaS
219,256
74 %
332,981
52 %
Total subscription
589,667
37 %
768,305
30 %
Perpetual license
55,643
(3) %
43,212
(22) %
Customer support
307,563
— %
320,426
4 %
Other services
42,746
(4) %
51,747
21 %
Total revenues
$ 995,619
19 %
$ 1,183,690
19 %
Constant Currency - Revenue
($ in thousands)
The constant currency impact is calculated using the average foreign exchange rates from the prior year period and applying these rates to foreign-denominated revenues in the current corresponding period. Commvault analyzes revenue growth on a constant currency basis in order to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations. The non-GAAP financial measures presented in this press release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.
Q4'25
Revenue as
Reported
(GAAP)
Q4'26
Revenue as
Reported
(GAAP)
Constant
Currency
Impact
% Change Y/Y
(GAAP)
% Change Y/Y
Constant
Currency
Subscription:
Term-based license
$ 107,954
$ 114,445
$ (3,827)
6 %
2 %
SaaS
65,274
93,139
(3,113)
43 %
38 %
Total subscription
173,228
207,584
(6,940)
20 %
16 %
Perpetual license
14,962
10,129
(445)
(32) %
(35) %
Customer support
76,509
80,905
(3,284)
6 %
1 %
Other services
10,340
13,074
(162)
26 %
25 %
Total
$ 275,039
$ 311,692
$ (10,831)
13 %
9 %
FY'25
Revenue as
Reported
(GAAP)
FY'26
Revenue as
Reported
(GAAP)
Constant
Currency
Impact
% Change Y/Y
(GAAP)
% Change Y/Y
Constant
Currency
Subscription:
Term-based license
$ 370,411
$ 435,324
$ (11,694)
18 %
14 %
SaaS
219,256
332,981
(6,945)
52 %
49 %
Total subscription
589,667
768,305
(18,639)
30 %
27 %
Perpetual license
55,643
43,212
(1,448)
(22) %
(25) %
Customer support
307,563
320,426
(8,400)
4 %
1 %
Other services
42,746
51,747
(1,035)
21 %
19 %
Total
$ 995,619
$ 1,183,690
$ (29,522)
19 %
16 %
Disaggregation of Revenues
($ in thousands)
Our Americas region includes the United States, Canada, and Latin America. Our International region primarily includes Europe, Middle East, Africa, Australia, India, Southeast Asia, and China.
Q4'25
Q1'26
Q2'26
Q3'26
Q4'26
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Revenue
Y/Y
Growth
Americas
$ 169,384
29 %
$ 170,928
23 %
$ 168,125
16 %
$ 178,852
15 %
$ 184,977
9 %
International
105,655
15 %
111,050
29 %
108,063
22 %
134,980
26 %
126,715
20 %
Total revenues
$ 275,039
23 %
$ 281,978
26 %
$ 276,188
18 %
$ 313,832
19 %
$ 311,692
13 %
FY'25
FY'26
Revenue
Y/Y Growth
Revenue
Y/Y Growth
Americas
$ 607,952
22 %
$ 702,882
16 %
International
387,667
14 %
480,808
24 %
Total revenues
$ 995,619
19 %
$ 1,183,690
19 %
Total ARR, Subscription ARR and SaaS ARR 1
($ in thousands)
Q4'25
Q1'26
Q2'26
Q3'26
Q4'26
Total ARR 1
$ 930,051
$ 996,202
$ 1,043,295
$ 1,084,880
$ 1,121,571
Subscription ARR 1
780,098
843,873
893,707
940,859
989,294
SaaS ARR 1
281,045
306,874
335,669
363,732
400,157
Constant Currency - ARR 1
($ in thousands)
The constant currency impact on ARR 1 is calculated using the foreign exchange spot rates from March 31, 2025 and applying these rates to foreign-denominated results in the periods presented.
Q4'25
Q1'26
Q2'26
Q3'26
Q4'26
Total ARR 1 as Reported
$ 930,051
$ 996,202
$ 1,043,295
$ 1,084,880
$ 1,121,571
As Reported NNARR
40,423
66,151
47,093
41,585
36,691
Total ARR 1 using March 31, 2025 rates
930,051
969,693
1,016,697
1,055,806
1,099,539
Constant currency NNARR
30,686
39,642
47,004
39,109
43,733
Subscription ARR 1 as Reported
$ 780,098
$ 843,873
$ 893,707
$ 940,859
$ 989,294
As Reported NNARR
45,886
63,775
49,834
47,152
48,435
Subscription ARR 1 using March 31, 2025 rates
780,098
822,695
872,065
916,722
970,133
Constant currency NNARR
38,572
42,597
49,370
44,657
53,411
SaaS ARR 1 as Reported
$ 281,045
$ 306,874
$ 335,669
$ 363,732
$ 400,157
As Reported NNARR
22,088
25,829
28,795
28,063
36,425
SaaS ARR 1 using March 31, 2025 rates
281,045
299,017
327,781
354,888
393,058
Constant currency NNARR
19,629
17,972
28,764
27,107
38,170
Additional Financial Information
For the three months ended March 31, 2026 -
For the year ended March 31, 2026 -
Commvault Systems, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
Year Ended
March 31,
2026
2025
2026
2025
Revenues:
Subscription:
Term-based license
$ 114,445
$ 107,954
$ 435,324
$ 370,411
Software-as-a-service
93,139
65,274
332,981
219,256
Total subscription
207,584
173,228
768,305
589,667
Perpetual license
10,129
14,962
43,212
55,643
Customer support
80,905
76,509
320,426
307,563
Other services
13,074
10,340
51,747
42,746
Total revenues
311,692
275,039
1,183,690
995,619
Cost of revenues:
Subscription:
Term-based license
3,007
2,756
10,662
9,558
Software-as-a-service
31,555
23,045
118,301
79,341
Total subscription
34,562
25,801
128,963
88,899
Perpetual license
32
312
531
1,500
Customer support
14,397
13,746
58,879
57,680
Other services
9,013
7,907
34,747
30,956
Total cost of revenues
58,004
47,766
223,120
179,035
Gross margin
253,688
227,273
960,570
816,584
Operating expenses:
Sales and marketing
135,655
120,152
519,688
434,117
Research and development
40,062
39,333
162,213
146,286
General and administrative
40,167
38,274
162,722
138,375
Depreciation and amortization
2,563
2,401
10,348
9,072
Restructuring
18,603
812
32,154
10,026
Change in contingent consideration
—
(426)
(545)
2,060
Impairment charges
—
—
—
2,910
Total operating expenses
237,050
200,546
886,580
742,846
Income from operations
16,638
26,727
73,990
73,738
Interest income
8,313
1,556
21,810
6,654
Interest expense
(1,431)
(103)
(3,795)
(416)
Other income (expense), net
(403)
453
119
1,077
Income before income taxes
23,117
28,633
92,124
81,053
Income tax expense (benefit)
8,468
(2,360)
21,467
4,947
Net income
$ 14,649
$ 30,993
$ 70,657
$ 76,106
Net income per common share:
Basic
$ 0.34
$ 0.70
$ 1.61
$ 1.74
Diluted
$ 0.34
$ 0.69
$ 1.58
$ 1.68
Weighted average common shares outstanding:
Basic
43,047
44,066
43,976
43,850
Diluted
43,263
45,158
44,654
45,187
Commvault Systems, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
March 31,
March 31,
2026
2025
ASSETS
Current assets:
Cash and cash equivalents
$ 899,987
$ 302,103
Trade accounts receivable, net
330,483
251,995
Assets held for sale
—
34,770
Other current assets
56,040
46,189
Total current assets
1,286,510
635,057
Deferred tax assets, net
153,766
133,378
Property and equipment, net
9,750
8,294
Operating lease assets
34,920
10,124
Deferred commissions cost
103,892
79,309
Intangible assets, net
19,715
20,737
Goodwill
209,322
185,255
Other assets
68,430
46,112
Total assets
$ 1,886,305
$ 1,118,266
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 651
$ 373
Accrued liabilities
165,583
147,133
Current portion of operating lease liabilities
6,963
4,614
Deferred revenue
484,973
402,930
Total current liabilities
658,170
555,050
Convertible notes, net
880,863
—
Deferred revenue, less current portion
293,725
223,282
Deferred tax liabilities
1,565
1,384
Long-term operating lease liabilities
29,675
6,338
Other liabilities
14,813
7,090
Total stockholders' equity
7,494
325,122
Total liabilities and stockholders' equity
$ 1,886,305
$ 1,118,266
Commvault Systems, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
March 31,
Year Ended
March 31,
2026
2025
2026
2025
Cash flows from operating activities
Net income
$ 14,649
$ 30,993
$ 70,657
$ 76,106
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
2,563
2,401
10,348
9,072
Amortization of debt issuance costs
1,138
28
2,808
115
Amortization of deferred commissions costs
13,394
9,658
47,741
33,414
Noncash stock-based compensation
31,964
28,992
123,425
113,262
Noncash operating lease expense
1,966
2,082
8,116
6,408
Noncash change in fair value of equity securities
474
(396)
68
(364)
Noncash change in fair value of contingent consideration
—
(426)
(545)
2,060
Noncash adjustment on headquarters sale leaseback
—
—
495
—
Noncash impairment charges
—
—
—
2,910
Noncash lease impairment
1,374
—
1,374
—
Deferred income taxes
(2,018)
(17,194)
7,700
(23,474)
Changes in operating assets and liabilities:
Trade accounts receivable, net
27,017
3,425
(73,964)
(62,012)
Operating lease liabilities
(2,078)
(1,963)
(8,012)
(7,136)
Other current assets and Other assets
(2,680)
(9,051)
(20,823)
(8,615)
Deferred commissions cost
(23,124)
(20,316)
(73,655)
(49,848)
Accounts payable
399
292
252
(948)
Accrued liabilities
13,339
15,140
11,562
25,235
Deferred revenue
52,939
29,749
136,410
87,659
Other liabilities
869
3,541
723
3,538
Net cash provided by operating activities
132,185
76,955
244,680
207,382
Cash flows from investing activities
Purchase of property and equipment
(344)
(783)
(7,529)
(3,756)
Purchase of equity securities
(169)
(545)
(6,951)
(1,333)
Proceeds from sale of headquarters, net
—
—
34,849
—
Business combination, net of cash acquired
200
598
(25,815)
(65,311)
Net cash used in investing activities
(313)
(730)
(5,446)
(70,400)
Cash flows from financing activities
Repurchase of common stock
(259,293)
(29,821)
(446,106)
(165,015)
Proceeds from stock-based compensation plans
7,529
6,437
14,503
17,537
Proceeds from issuance of convertible notes
—
—
900,000
—
Purchase of capped calls
—
—
(99,630)
—
Payment of contingent liability
—
(340)
—
(340)
Payment of debt issuance costs
—
—
(23,400)
—
Other
(18)
—
(66)
—
Net cash provided by (used in) financing activities
(251,782)
(23,724)
345,301
(147,818)
Effects of exchange rate — changes in cash
(6,449)
6,027
13,349
185
Net increase (decrease) in cash and cash equivalents
(126,359)
58,528
597,884
(10,651)
Cash and cash equivalents at beginning of period
1,026,346
243,575
302,103
312,754
Cash and cash equivalents at end of period
$ 899,987
$ 302,103
$ 899,987
$ 302,103
Supplemental disclosures of noncash activities
Issuance of common stock for business combination
$ —
$ —
$ —
$ 4,900
Operating lease liabilities arising from obtaining right-of-use assets
$ 523
$ 1,109
$ 35,604
$ 5,796
Commvault Systems, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
Year Ended
March 31,
2026
2025
2026
2025
Non-GAAP financial measures and reconciliation:
GAAP income from operations
$ 16,638
$ 26,727
$ 73,990
$ 73,738
Noncash stock-based compensation 5
29,247
28,840
118,886
108,615
FICA and payroll tax expense related to stock-based compensation 6
691
1,767
4,140
5,459
Restructuring 7
18,603
812
32,154
10,026
Amortization of intangible assets 8
1,256
1,176
4,722
3,705
Litigation settlement 9
—
—
—
675
Business combination costs 10
—
201
1,902
2,541
Change in contingent consideration 11
—
(426)
(545)
2,060
Adjustment on headquarters sale leaseback 12
—
—
495
—
Noncash impairment charges 13
—
—
—
2,910
Other nonrecurring charges 14
—
—
1,805
—
Non-GAAP income from operations
$ 66,435
$ 59,097
$ 237,549
$ 209,729
GAAP net income
$ 14,649
$ 30,993
$ 70,657
$ 76,106
Noncash stock-based compensation 5
29,247
28,840
118,886
108,615
FICA and payroll tax expense related to stock-based compensation 6
691
1,767
4,140
5,459
Restructuring 7
18,603
812
32,154
10,026
Amortization of intangible assets 8
1,256
1,176
4,722
3,705
Litigation settlement 9
—
—
—
675
Business combination costs 10
—
201
1,902
2,541
Change in contingent consideration 11
—
(426)
(545)
2,060
Adjustment on headquarters sale leaseback 12
—
—
495
—
Noncash impairment charges 13
—
—
—
2,910
Other nonrecurring charges 14
—
—
1,805
—
Non-GAAP provision for income taxes adjustment 15
(9,031)
(17,000)
(39,897)
(47,143)
Non-GAAP net income
$ 55,415
$ 46,363
$ 194,319
$ 164,954
GAAP diluted earnings per share
$ 0.34
$ 0.69
$ 1.58
$ 1.68
Noncash stock-based compensation 5
0.68
0.64
2.66
2.40
FICA and payroll tax expense related to stock-based compensation 6
0.02
0.04
0.09
0.12
Restructuring 7
0.43
0.02
0.72
0.22
Amortization of intangible assets 8
0.03
0.03
0.11
0.08
Litigation settlement 9
—
—
—
0.01
Business combination costs 10
—
—
0.04
0.06
Change in contingent consideration 11
—
(0.01)
(0.01)
0.05
Adjustment on headquarters sale leaseback 12
—
—
0.01
—
Noncash impairment charges 13
—
—
—
0.06
Other nonrecurring charges 14
—
—
0.04
—
Non-GAAP provision for income taxes adjustment 15
(0.22)
(0.38)
(0.89)
(1.03)
Non-GAAP diluted earnings per share
$ 1.28
$ 1.03
$ 4.35
$ 3.65
GAAP diluted weighted average shares outstanding
43,263
45,158
44,654
45,187
Three Months Ended
March 31,
Year Ended
March 31,
2026
2025
2026
2025
Non-GAAP gross margin reconciliation:
GAAP gross margin
81.4 %
82.6 %
81.2 %
82.0 %
Cost of revenues related to noncash stock-based compensation
0.4 %
0.5 %
0.4 %
0.6 %
Non-GAAP gross margin
81.8 %
83.1 %
81.6 %
82.6 %
Three Months Ended
March 31,
Year Ended
March 31,
2026
2025
2026
2025
Non-GAAP free cash flow reconciliation:
GAAP cash provided by operating activities
$ 132,185
$ 76,955
$ 244,680
$ 207,382
Purchase of property and equipment
(344)
(783)
(7,529)
(3,756)
Non-GAAP free cash flow
$ 131,841
$ 76,172
$ 237,151
$ 203,626
Use of Non-GAAP Financial Measures
Commvault has provided in this press release the following non-GAAP financial measures: non-GAAP income from operations (EBIT), non-GAAP income from operations margin, non-GAAP gross margin, non-GAAP net income, non-GAAP diluted earnings per share, non-GAAP free cash flow, annualized recurring revenue (ARR), subscription ARR, SaaS ARR and SaaS net dollar retention rate (NRR). This financial information has not been prepared in accordance with GAAP. Commvault uses these non-GAAP financial measures internally to understand, manage and evaluate its business and make operating decisions. Commvault believes that the use of these non-GAAP financial measures, when used as a supplement to GAAP financial measures, provides an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing its financial results with other companies in Commvault's industry, many of which present similar non-GAAP financial measures to the investment community. Commvault has also provided its revenues, ARR, subscription ARR and SaaS ARR on a constant currency basis. Commvault analyzes revenue growth, ARR, subscription ARR and SaaS ARR on a constant currency basis in order to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations.
All of these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, where applicable, which are included in this press release. Certain non-GAAP measures discussed in this press release do not have a directly comparable GAAP financial measure and therefore are not reconciled.
Non-GAAP income from operations and non-GAAP income from operations margin. These non-GAAP financial measures exclude noncash stock-based compensation charges and additional Federal Insurance Contribution Act (FICA) and related payroll tax expense incurred by Commvault when employees vest in restricted stock awards. Commvault has also excluded restructuring costs, noncash amortization of intangible assets, business combination costs, the change in the estimated fair value of contingent consideration, adjustments from the sale and leaseback of headquarters and other nonrecurring charges from its non-GAAP results. These adjustments are further discussed in the reconciliation of GAAP to non-GAAP financial measures. Commvault believes that these non-GAAP financial measures are useful metrics for management and investors because they compare Commvault's core operating results over multiple periods. When evaluating the performance of Commvault's operating results and developing short- and long-term plans, Commvault does not consider such expenses.
In addition, Commvault expects to incur a non-routine business expense in the first half of fiscal 2027 related to contingent performance-based fees associated with strategic pricing and packaging initiatives. These fees are expected to be incurred upon the achievement of defined outcomes and are estimated to range between $5 million and $10 million. Commvault intends to exclude these costs from its non-GAAP results as they are episodic in nature, directly tied to a discrete strategic initiative, and not reflective of ongoing operating performance.
Although noncash stock-based compensation and the additional FICA and related payroll tax expenses are necessary to attract and retain employees, Commvault places its primary emphasis on stockholder dilution as compared to the accounting charges related to such equity compensation plans. Commvault believes that providing non-GAAP financial measures that exclude noncash stock-based compensation expense and the additional FICA and related payroll tax expenses incurred on vesting of restricted stock awards allow investors to make meaningful comparisons between Commvault's operating results and those of other companies.
There are a number of limitations related to the use of non-GAAP income from operations and non-GAAP income from operations margin. The most significant limitation is that these non-GAAP financial measures exclude certain operating costs, primarily related to noncash stock-based compensation, which is of a recurring nature. Noncash stock-based compensation has been, and will continue to be for the foreseeable future, a significant recurring expense in Commvault's operating results. In addition, noncash stock-based compensation is an important part of Commvault's employees' compensation and can have a significant impact on their performance. The following table presents the stock-based compensation expense included in cost of revenues, sales and marketing, research and development and general and administrative ($ in thousands):
Three Months Ended March 31,
Year Ended March 31,
2026
2025
2026
2025
Cost of revenues
$ 1,344
$ 1,324
$ 5,239
$ 5,744
Sales and marketing
12,469
12,599
51,173
47,627
Research and development
6,977
6,225
28,538
24,028
General and administrative
8,457
8,692
33,936
31,216
Stock-based compensation expense
$ 29,247
$ 28,840
$ 118,886
$ 108,615
The table above excludes stock-based compensation expense related to the Company's restructuring activities described below in Note 7.
The components that Commvault excludes in its non-GAAP financial measures may differ from the components that its peer companies exclude when they report their non-GAAP financial measures. Due to the limitations related to the use of non-GAAP measures, Commvault's management assists investors by providing a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure. Commvault's management uses non-GAAP financial measures only in addition to, and in conjunction with, results presented in accordance with GAAP.
Non-GAAP net income and non-GAAP diluted earnings per share (EPS). In addition to the adjustments discussed in non-GAAP income from operations, non-GAAP net income and non-GAAP diluted EPS incorporates a non-GAAP effective tax rate of 24%.
Commvault anticipates that in any given period its non-GAAP tax rate may be either higher or lower than the GAAP tax rate as evidenced by historical fluctuations. The GAAP tax rates in recent fiscal years were not meaningful percentages due to the dollar amount of GAAP pre-tax income. For the same reason as the GAAP tax rates, the estimated cash tax rates in recent fiscal years are not meaningful percentages. Commvault defines its cash tax rate as the total amount of cash income taxes payable for the fiscal year divided by consolidated GAAP pre-tax income. Over time, Commvault believes its GAAP and cash tax rates will align.
Commvault considers non-GAAP net income and non-GAAP diluted EPS useful metrics for Commvault management and its investors for the same basic reasons that Commvault uses non-GAAP income from operations and non-GAAP income from operations margin. In addition, the same limitations as well as management actions to compensate for such limitations described above also apply to Commvault's use of non-GAAP net income and non-GAAP diluted EPS.
Non-GAAP gross margin. Commvault defines this non-GAAP financial measure as GAAP gross margin adjusted to exclude cost of revenues related to noncash stock-based compensation.
Non-GAAP free cash flow. Commvault defines this non-GAAP financial measure as net cash provided by operating activities less purchases of property and equipment. Commvault considers non-GAAP free cash flow a useful metric for Commvault management and its investors in evaluating Commvault's ability to generate cash from its business operations. In addition, the same limitations as well as management actions to compensate for such limitations described above also apply to Commvault's use of non-GAAP free cash flow.
Forward-looking non-GAAP measures. In this press release, Commvault presents non-GAAP EBIT margin and free cash flow on a forward-looking basis. The most directly comparable GAAP measures are not accessible on a forward-looking basis without unreasonable efforts, because certain items that impact these GAAP measures, cannot be reasonably predicted or quantified. The probable significance of these items may be material, and as a result, the corresponding GAAP measures and a quantitative reconciliation to those GAAP measures are not available on a forward-looking basis.
Notes
Commvault Systems, Inc.
Recast Historical Financial Results
(In thousands)
(Unaudited)
Beginning in fiscal 2027, Commvault will disaggregate customer support revenue on the Consolidated Statements of Operations between support associated with term-based and perpetual software license arrangements. Customer support includes support contracts associated with our software products, including software updates on a when-and-if-available basis, telephone support, integrated web-based support, and other premium support offerings. There is no change to total revenues, customer support cost of revenue or total cost of revenues for any quarter in fiscal 2025 or fiscal 2026. The recast results for fiscal years 2025 and 2026 have been prepared on the same basis as the fiscal first‑quarter and full‑year fiscal 2027 guidance presented earlier in this earnings press release.
Customer support revenue related to term-based software license arrangements ("Term-based support") will be included in total subscription revenue and recognized ratably over contractual terms that typically range from one to three years. Customer support revenue related to perpetual software license arrangements ("Perpetual support") will be recognized ratably over contractual terms, typically one year. There is no change to the underlying revenue recognition treatment for these line items.
The table below recasts the results for fiscal 2025 and 2026 using the Consolidated Statements of Operations lines that will be effective beginning fiscal 2027.
Fiscal 2026
Q1'26
Q2'26
Q3'26
Q4'26
FY'26
Revenues:
Subscription:
Term-based license
$ 109,282
$ 92,647
$ 118,950
$ 114,445
$ 435,324
Term-based support
47,582
49,686
50,962
53,933
202,163
Software-as-a-service
72,445
80,018
87,379
93,139
332,981
Total subscription
229,309
222,351
257,291
261,517
970,468
Perpetual license
7,335
12,073
13,675
10,129
43,212
Perpetual support
31,439
30,543
29,309
26,972
118,263
Other services
13,895
11,221
13,557
13,074
51,747
Total revenues
$ 281,978
$ 276,188
$ 313,832
$ 311,692
$ 1,183,690
Cost of revenues:
Term-based license
$ 2,242
$ 2,414
$ 2,999
$ 3,007
$ 10,662
Software-as-a-service
25,972
29,187
31,587
31,555
118,301
Perpetual license
245
194
60
32
531
Customer support
14,207
14,847
15,428
14,397
58,879
Other services
8,111
8,402
9,221
9,013
34,747
Total cost of revenues
$ 50,777
$ 55,044
$ 59,295
$ 58,004
$ 223,120
Fiscal 2025
Q1'25
Q2'25
Q3'25
Q4'25
FY'25
Revenues:
Subscription:
Term-based license
$ 80,405
$ 84,427
$ 97,625
$ 107,954
$ 370,411
Term-based support
39,727
41,829
43,047
44,605
169,208
Software-as-a-service
43,675
49,611
60,696
65,274
219,256
Total subscription
163,807
175,867
201,368
217,833
758,875
Perpetual license
13,736
10,522
16,423
14,962
55,643
Perpetual support
36,561
35,859
34,031
31,904
138,355
Other services
10,568
11,030
10,808
10,340
42,746
Total revenues
$ 224,672
$ 233,278
$ 262,630
$ 275,039
$ 995,619
Cost of revenues:
Term-based license
$ 1,778
$ 2,371
$ 2,653
$ 2,756
$ 9,558
Software-as-a-service
15,762
17,161
23,373
23,045
79,341
Perpetual license
337
441
410
312
1,500
Customer support
14,263
15,311
14,360
13,746
57,680
Other services
7,648
7,578
7,823
7,907
30,956
Total cost of revenues
$ 39,788
$ 42,862
$ 48,619
$ 47,766
$ 179,035
In addition, beginning in fiscal 2027, Commvault will recast Subscription ARR to include enterprise support, further aligning Subscription ARR with subscription revenue. Prior to fiscal 2027, enterprise support was included only in Total ARR. This change does not impact Total ARR. The table below recasts annualized revenue results for fiscal 2025 and fiscal 2026 to reflect this change, which will be effective beginning in fiscal 2027.
Fiscal 2026
Q1'26
Q2'26
Q3'26
Q4'26
Total ARR
$ 996,202
$ 1,043,295
$ 1,084,880
$ 1,121,571
Subscription ARR
867,306
918,130
966,260
1,014,729
Fiscal 2025
Q1'25
Q2'25
Q3'25
Q4'25
Total ARR
$ 802,709
$ 853,265
$ 889,628
$ 930,051
Subscription ARR
657,330
708,993
755,358
802,390
SOURCE COMMVAULT