Commvault Systems, Inc. has released its financial results for the fourth quarter and the fiscal year concluding on March 31, 2025, highlighting a record year of growth.
Fourth Quarter Financial Highlights
- Revenues totaled $275 million, representing a 23% increase year over year.
- Subscription revenue reached $173 million, marking a 45% rise year over year.
- Income from operations (EBIT) stood at $27 million, translating to an operating margin of 9.7%.
- Non-GAAP EBIT was $59 million, yielding an operating margin of 21.5%.
- Operating cash flow amounted to $77 million with free cash flow of $76 million.
- Share repurchases during the quarter totaled $30 million, equating to around 182,000 shares.
Fiscal Year 2025 Overview
- Total revenues for the year reached $996 million, up 19% compared to the previous year.
- Total annualized recurring revenue (ARR) grew to $930 million, a 21% increase year over year.
- Subscription revenue for the year was $590 million, reflecting a 37% increase.
- Subscription ARR climbed to $780 million, up 31% year over year, constituting 84% of the total ARR.
- Income from operations for the year was $74 million, with a 7.4% operating margin.
- Non-GAAP EBIT reached $210 million, with a 21.1% operating margin.
- Full year operating cash flow totaled $207 million, with free cash flow of $204 million.
- Commvault repurchased shares totaling $165 million, approximately 1,215,000 shares, for the year.
- On April 17, 2025, the Board of Directors authorized an increase in the share repurchase program to $250 million.
Financial Guidance for Fiscal Year 2026
Commvault’s guidance for the first quarter of fiscal year 2026 includes:
- Total revenues expected between $266 million and $270 million.
- Subscription revenue projected to be between $166 million and $170 million.
- Non-GAAP gross margin anticipated between 81% and 82%.
- Non-GAAP operating margin expected at approximately 21%.
For the full fiscal year 2026, guidance includes:
- Total revenues projected between $1,130 million and $1,140 million.
- Expected ARR growth between 16% and 17% year over year.
- Subscription revenue estimated between $727 million and $732 million.
- Subscription ARR growth projected between 22% and 23% year over year.
- Non-GAAP gross margin between 81% and 82% anticipated.
- Non-GAAP operating margin expected to be about 21%.
- Free cash flow expected between $210 million and $215 million.
Management Commentary
Sanjay Mirchandani, President and CEO of Commvault, stated, “It was a record-breaking year at Commvault. We surpassed all key metrics, ended the year with over 12,000 subscription customers, and are positioned as a growth company with subscription revenue up 45% in Q4. Our focus remains on delivering cloud-first innovations that enhance customer cyber resilience.“
Financial Tables and Detailed Data Analysis
Commvault provided a detailed breakdown of revenue categories, cash flow summaries, share repurchase activities, and comprehensive financial statements that reflect its operational performance during the reported periods. Additional analyses include GAAP vs. non-GAAP reconciliations and revenue assessments based on geographic segments. This thorough financial disclosure highlights the company’s strategic focus on subscription-based offerings and cloud services, which are pivotal in driving growth and establishing a competitive edge in the industry.