Commvault Systems (CVLT) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 and FY2025 results, with total revenue up 23% in Q4 to $275 million and full-year revenue up 19% to $996 million; subscription revenue up 45% in Q4 and 37% for the year, with over 12,200 subscription customers.

• Total ARR reached $930 million, up 21% year-over-year; subscription ARR was $780 million, up 31%, and SaaS ARR was $281 million, up 68% year-over-year.

• Subscription and SaaS now represent 84% of total ARR, reflecting a successful shift to recurring revenue.

• Integrated two acquisitions (Clumio and Appranix), expanded cloud and security offerings, and added nearly 3,000 subscription customers.

• Positioned as a growth company with a focus on cyber resilience, cloud-first solutions, and partner ecosystem expansion.

Financial highlights

• Q4 non-GAAP EBIT was $59 million (21.5% margin); full-year non-GAAP EBIT was $210 million (21.1% margin).

• Q4 gross margin was 83.1%, with full-year non-GAAP gross margin at 82.6%.

• Q4 free cash flow was $76 million; full-year free cash flow reached $204 million.

• Ended the year with $302 million in cash and no debt.

• Repurchased $165 million of stock in FY2025, including $30 million in Q4.

Outlook and guidance

• FY2026 revenue expected between $1.13–$1.14 billion (14% YoY growth at midpoint); ARR to grow 16–17% year-over-year.

• FY2026 subscription revenue expected between $727–$732 million; subscription ARR to grow 22–23%.

• Q1 FY2026 revenue guidance: $266–$270 million; subscription revenue $166–$170 million.

• FY2026 free cash flow expected at $210–$215 million; non-GAAP EBIT margin projected at ~21%.

• FY2026 non-GAAP gross margin expected at 81–82%.