Verint Systems (VRNT) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 bookings and ARR, both ahead of guidance, driven by strong AI momentum and SaaS adoption, with ARR growth accelerating every quarter and finishing Q4 at 5% year-over-year.

• Raised ARR outlook for Q4/FYE 2026 to $768 million (8% growth), supported by expanding AI deployments and customer wins in insurance and telecom.

• Record SaaS ACV bookings in Q4, up 30% year-over-year, with full-year SaaS ACV bookings from new deals up 33%.

• Bundled SaaS revenue grew 23% in Q4 and 17% for the year, indicating rapid AI adoption at scale.

• Over 90 Fortune 500 companies now use AI-powered bots, with expanding deployments and strong business outcomes.

Financial highlights

• Q4/FYE25 subscription ARR reached $712 million, up 5.2% year-over-year, surpassing guidance.

• Q4 revenue was $254 million, below guidance due to delayed unbundled SaaS deals, but all other streams met expectations.

• Cash generation for FYE25 was $913 million, exceeding guidance; cash contribution was $228 million, with free cash flow for the year at $130 million.

• Adjusted EBITDA for FYE25 was $249.5 million (27.4% margin); non-GAAP diluted EPS was $2.62.

• Bundled SaaS ARR grew 17% year-over-year to $328 million; bundled SaaS revenue for FYE25 was $283 million, up 17%.

Outlook and guidance

• FYE26 subscription ARR guidance raised to $768 million ±1% (8% growth); revenue guidance set at $960 million ±3%.

• Non-GAAP diluted EPS targeted at $2.93; cash generation guidance at $960 million ±1%, with cash contribution expected around $245–246 million.

• Q1 FYE26 ARR growth expected to accelerate to 6% year-over-year; Q1 revenue guidance between $190–200 million.