Annualized recurring revenue (ARR)1 surpassed $1 billion milestone, ahead of March 2026 target
Operating cash flow of $77 million, free cash flow2 of $74 million
TINTON FALLS, N.J., Oct. 28, 2025 /PRNewswire/ -- Commvault (NASDAQ:CVLT) today announced its financial results for the fiscal second quarter ended September 30, 2025.
"Commvault delivered a strong quarter fueled by solid ARR and SaaS growth that accelerated a key milestone for the company, achieving $1 billion in total ARR, two quarters earlier than projected," said Sanjay Mirchandani, President and CEO, Commvault. "As enterprises globally rely on Commvault to be resilient, our cloud-first, AI-enabled cyber resilience platform is more relevant than ever."
Notes are contained at the end of this press release
Second Quarter Fiscal 2026 Highlights -
Total revenues were $276 million, up 18% year over year
Total ARR1 grew to $1,043 million, up 22% year over year, or 21% on a constant currency basis using March 31, 2025 spot rates
Subscription revenue was $173 million, up 29% year over year, inclusive of term-based license revenue of $93 million, up 10% year over year, and SaaS revenue of $80 million, up 61% year over year
Subscription ARR1 grew to $894 million, up 30% year over year, or 29% on a constant currency basis using March 31, 2025 spot rates
Income from operations (EBIT) was $12 million, an operating margin of 4.5%
Non-GAAP EBIT2 was $51 million, an operating margin of 18.6%
Operating cash flow was $77 million, with free cash flow2 of $74 million
Recent Business Highlights -
Commvault completed its acquisition of Satori Cyber Ltd., a data and AI security company, expanding its cyber-resiliency platform to help enterprises protect sensitive data and manage AI-driven risks across hybrid and multi-cloud environments.
Commvault launched Clumio for Apache Iceberg on AWS, designed to deliver Iceberg-aware, air-gapped resilience for AI and analytics data lakehouses.
Commvault introduced HyperScale Edge (for remote/edge locations) and HyperScale Flex (for high-performance, large-scale workloads) to its HyperScale portfolio, extending enterprise-grade data protection and cyber resilience and providing customers more choice for on-premise cyber resilience.
Commvault and BeyondTrust announced a new integration between the Commvault Cloud platform and BeyondTrust Password Safe, enabling customers to further mitigate credential risk, improve security posture, and enhance data recovery efficiency.
Financial Outlook for Third Quarter and Full Year Fiscal 20263 -
We are providing the following guidance for the third quarter of fiscal year 2026, based on current macroeconomic conditions:
Total revenues are expected to be between $298 million and $300 million
Subscription revenue is expected to be between $195 million and $197 million
Non-GAAP gross margin2 is expected to be between 80% and 81%
Non-GAAP EBIT margin2 is expected to be between 18% and 19%
We are providing the following updated guidance for the full fiscal year 2026, based on current macroeconomic conditions:
Total revenues are expected to be between $1,161 million and $1,165 million
Total ARR1 is expected to grow between 18% and 19% year over year
Subscription revenue is expected to be between $753 million and $757 million
Subscription ARR1 is expected to grow between 24% and 25% year over year
Non-GAAP gross margin2 is expected to be between 80.5% and 81.5%
Non-GAAP EBIT margin2 is expected to be between 18.5% and 19.5%
Free cash flow2 is expected to be between $225 million and $230 million
The above statements are based on the incorporation of actual second quarter results, current targets and the acquisition of Satori Cyber Ltd. which closed on August 28, 2025. 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, October 28, 2025 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 the gold standard in cyber resilience, helping more than 100,000 organizations keep data safe and businesses resilient and moving forward. Today, Commvault offers the only cyber resilience platform that combines the best data security and rapid recovery at enterprise scale across any workload, anywhere—at the lowest TCO.
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 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)
Q2'25
Q3'25
Q4'25
Q1'26
Q2'26
Revenue
Y/YGrowth
Revenue
Y/YGrowth
Revenue
Y/YGrowth
Revenue
Y/YGrowth
Revenue
Y/YGrowth
Subscription:
Term-based license
$ 84,427
22 %
$ 97,625
21 %
$ 107,954
33 %
$ 109,282
36 %
$ 92,647
10 %
SaaS
49,611
75 %
60,696
82 %
65,274
69 %
72,445
66 %
80,018
61 %
Total subscription
134,038
37 %
158,321
39 %
173,228
45 %
181,727
46 %
172,665
29 %
Perpetual license
10,522
(27) %
16,423
10 %
14,962
(2) %
7,335
(47) %
12,073
15 %
Customer support
77,688
1 %
77,078
— %
76,509
(1) %
79,021
4 %
80,229
3 %
Other services
11,030
(7) %
10,808
(1) %
10,340
(8) %
13,895
31 %
11,221
2 %
Total revenues
$ 233,278
16 %
$ 262,630
21 %
$ 275,039
23 %
$ 281,978
26 %
$ 276,188
18 %
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.
Q2'25 Revenue asReported(GAAP)
Q2'26 Revenue asReported(GAAP)
ConstantCurrencyImpact
% Change Y/Y(GAAP)
% Change Y/YConstantCurrency
Subscription:
Term-based license
$ 84,427
$ 92,647
$ (1,227)
10 %
8 %
SaaS
49,611
80,018
(1,142)
61 %
59 %
Total subscription
134,038
172,665
(2,369)
29 %
27 %
Perpetual license
10,522
12,073
(313)
15 %
12 %
Customer support
77,688
80,229
(1,512)
3 %
1 %
Other services
11,030
11,221
4
2 %
2 %
Total
$ 233,278
$ 276,188
$ (4,190)
18 %
17 %
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.
Q2'25
Q3'25
Q4'25
Q1'26
Q2'26
Revenue
Y/YGrowth
Revenue
Y/YGrowth
Revenue
Y/YGrowth
Revenue
Y/YGrowth
Revenue
Y/YGrowth
Americas
$ 144,408
20 %
$ 155,435
24 %
$ 169,384
29 %
$ 170,928
23 %
$ 168,125
16 %
International
88,870
10 %
107,195
17 %
105,655
15 %
111,050
29 %
108,063
22 %
Total revenues
$ 233,278
16 %
$ 262,630
21 %
$ 275,039
23 %
$ 281,978
26 %
$ 276,188
18 %
Total ARR, Subscription ARR and SaaS ARR1($ in thousands)
Q2'25
Q3'25
Q4'25
Q1'26
Q2'26
Total ARR1
$ 853,265
$ 889,628
$ 930,051
$ 996,202
$ 1,043,295
Subscription ARR1
$ 687,050
$ 734,212
$ 780,098
$ 843,873
$ 893,707
SaaS ARR1
$ 214,832
$ 258,957
$ 281,045
$ 306,874
$ 335,669
Constant Currency - ARR1($ in thousands)
The constant currency impact on ARR1 is calculated using the foreign exchange spot rates from March 31, 2025 and applying these rates to foreign-denominated results in the periods presented.
Q2'25
Q3'25
Q4'25
Q1'26
Q2'26
Total ARR1 as Reported
$ 853,265
$ 889,628
$ 930,051
$ 996,202
$ 1,043,295
Total ARR1 using March 31, 2025 rates
$ 838,074
$ 899,365
$ 930,051
$ 969,693
$ 1,016,697
Subscription ARR1 as Reported
$ 687,050
$ 734,212
$ 780,098
$ 843,873
$ 893,707
Subscription ARR1 using March 31, 2025 rates
$ 675,330
$ 741,526
$ 780,098
$ 822,695
$ 872,065
SaaS ARR1 as Reported
$ 214,832
$ 258,957
$ 281,045
$ 306,874
$ 335,669
SaaS ARR1 using March 31, 2025 rates
$ 210,585
$ 261,416
$ 281,045
$ 299,017
$ 327,781
Additional Financial Information
GAAP net income was $15 million, or $0.33 per diluted share for the three months ended September 30, 2025
GAAP gross margin was 80.1% and non-GAAP gross margin2 was 80.5% for the three months ended September 30, 2025
We repurchased approximately 737,000 shares of common stock for $131 million during the three months ended September 30, 2025
Weighted average diluted shares outstanding were approximately 45 million for the period ended September 30, 2025
Cash and cash equivalents totaled $1,064 million as of September 30, 2025
SaaS net dollar retention rate (NRR)4 was 125% as of September 30, 2025
During the three months ended September 30, 2025, we completed a $900 million convertible debt offering with a 0% coupon. A portion of the proceeds was used to purchase $100 million of capped calls, designed to mitigate the potential dilutive impact of the convertible notes upon conversion.
Commvault Systems, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months EndedSeptember 30,
Six Months EndedSeptember 30,
2025
2024
2025
2024
Revenues:
Subscription:
Term-based license
$ 92,647
$ 84,427
$ 201,929
