Commvault (NASDAQ: CVLT) boosts SaaS ARR to $400M and guides higher
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Commvault Systems reported strong growth for its fourth quarter and fiscal year ended March 31, 2026. Q4 revenue reached $311.7 million, up 13% year over year, with subscription revenue of $207.6 million, up 20%, and SaaS revenue of $93.1 million, up 43%.
For fiscal 2026, total revenue was $1.18 billion, up 19% year over year. Total ARR rose to $1.12 billion, up 21%, including subscription ARR of $989.3 million and SaaS ARR of $400.2 million. GAAP net income was $70.7 million, or $1.58 per diluted share.
Commvault generated $237.2 million in free cash flow and ended the year with $900.0 million in cash and cash equivalents. The company repurchased about 4 million shares for $446 million in fiscal 2026 and guided fiscal 2027 revenue to $1.30–$1.31 billion with a non-GAAP EBIT margin of about 20.5%.
Positive
- Strong recurring and SaaS growth: Fiscal 2026 total revenue rose 19% to $1.18 billion, with subscription revenue up 30% and SaaS revenue up 52%, while total ARR reached $1.12 billion and SaaS ARR $400.2 million, highlighting momentum in high-quality recurring streams.
- Robust profitability and cash generation: Non-GAAP EBIT reached $237.5 million with a 20.1% margin and free cash flow was $237.2 million, enabling significant capital returns including $446 million of share repurchases in fiscal 2026 and an additional $250 million authorized.
Negative
- None.
Insights
Commvault delivers broad-based growth, strong cash generation, and confident fiscal 2027 guidance.
Commvault showed healthy top-line momentum, with fiscal 2026 revenue of $1.18 billion, up 19% year over year. Subscription revenue grew 30% to $768.3 million, and SaaS revenue accelerated 52% to $333.0 million, underscoring a successful transition toward recurring, cloud-based offerings.
Profitability and cash generation were solid. Non-GAAP EBIT reached $237.5 million with a 20.1% margin, while non-GAAP free cash flow was $237.2 million. The SaaS net dollar retention rate of 122% as of March 31, 2026 indicates meaningful expansion within the existing customer base.
Management’s fiscal 2027 outlook calls for subscription revenue of $1.115–$1.125 billion, total revenue of $1.30–$1.31 billion, and a non-GAAP EBIT margin near 20.5%. Combined with $900.0 million of cash and continued share repurchases, these disclosures suggest confidence in sustained growth and margins, while restructuring and one-time items remain contained in non-GAAP metrics.
Strong cash, new convertible notes, and sizable buybacks reshape Commvault’s capital structure.
Commvault ended March 31, 2026 with cash and cash equivalents of $900.0 million, up from $302.1 million a year earlier. The balance sheet now includes $880.9 million of convertible notes, reflecting significant new financing activity alongside robust liquidity.
Operating cash flow of $244.7 million and free cash flow of $237.2 million in fiscal 2026 funded aggressive capital returns. The company repurchased roughly 4 million shares for $446 million, and the board recommitted the share repurchase program so that $250 million was available as of April 15, 2026.
Guidance for fiscal 2027 free cash flow of $250–$260 million indicates expectations for continued strong cash generation. Investors can compare this to the outstanding convertible notes and remaining repurchase capacity to assess how future cash flows may be allocated between debt, buybacks, and ongoing growth investments.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q4 2026 revenue: $311.7M
Fiscal 2026 total revenue: $1.18B
Fiscal 2026 SaaS revenue: $333.0M
+5 more
8 metrics
Q4 2026 revenue
$311.7M
Three months ended March 31, 2026; up 13% year over year
Fiscal 2026 total revenue
$1.18B
Year ended March 31, 2026; up 19% year over year
Fiscal 2026 SaaS revenue
$333.0M
Year ended March 31, 2026; up 52% year over year
Total ARR
$1.12B
As of March 31, 2026; up 21% year over year
Non-GAAP free cash flow
$237.2M
Year ended March 31, 2026
Cash and cash equivalents
$900.0M
Balance sheet as of March 31, 2026
Share repurchases FY 2026
$446.1M
Repurchase of ~4M shares year ended March 31, 2026
Fiscal 2027 revenue guidance
$1.30–$1.31B
Total revenue outlook for full fiscal year 2027
Key Terms
annualized recurring revenue (ARR), SaaS net dollar retention rate (NRR), non-GAAP free cash flow, convertible notes, +2 more
6 terms
annualized recurring revenue (ARR) financial
"Total ARR1 grew to $1,122 million, up 21% year over year"
Annualized recurring revenue (ARR) is the predictable amount of income a business expects to earn from ongoing customer subscriptions or contracts over a year. It provides a clear picture of the company's steady revenue stream, much like estimating the annual salary based on consistent monthly pay. Investors use ARR to gauge the company's growth and stability over time.
SaaS net dollar retention rate (NRR) financial
"SaaS net dollar retention rate (NRR)4 was 122% as of March 31, 2026"
non-GAAP free cash flow financial
"Non-GAAP free cash flow2 is expected to be between $250 million and $260 million"
Non-GAAP free cash flow is a company’s reported cash generated from operations after paying for routine investments in property and equipment, adjusted by management to exclude or include certain items that aren’t part of standard accounting rules. Investors watch it as a practical measure of the cash a business has available for dividends, stock buybacks, debt repayment or reinvestment — like a household’s usable savings after adjusting for one-time or unusual expenses — but calculations vary between firms, so comparisons require caution.
convertible notes financial
"Convertible notes, net | 880,863 | | —"
Convertible notes are a type of short-term loan that a company receives from investors, which can later be turned into company shares instead of being paid back in cash. They matter to investors because they offer a way to support a company early on while giving the potential to own a stake in its success if the company grows and later raises more funding.
restructuring financial
"Restructuring | 18,603 | | | 812 | | | 32,154 |"
Restructuring is a deliberate rearrangement of a company’s operations, finances, or ownership—like reorganizing a cluttered house to run more efficiently—often involving cost cuts, asset sales, debt changes, or staff moves. Investors pay attention because restructuring can improve profitability and free up cash, but it can also signal distress, incur one-time costs, or dilute shareholder value; its success affects future earnings and stock performance.
non-GAAP EBIT margin financial
"Non-GAAP EBIT2 was $238 million, an operating margin of 20.1%"
Earnings Snapshot
Q4 2026 revenue: $311.7M · Guidance included
Q4 and FY 2026
Q4 2026 revenue
$311.7M
+13% YoY
FY 2026 revenue
$1.18B
+19% YoY
FY 2026 non-GAAP EBIT
$237.5M
Total ARR
$1.12B
+21% YoY
SaaS ARR
$400.2M
Guidance
For fiscal 2027, Commvault expects subscription revenue of $1.115–$1.125B, total revenue of $1.30–$1.31B, a non-GAAP EBIT margin of about 20.5%, subscription ARR of $1.20–$1.21B, and free cash flow of $250–$260M.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 28, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission file number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including zip code)
(732 ) 870-4000
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On April 28, 2026, Commvault issued a press release announcing its results for its fourth fiscal quarter ended March 31, 2026. A copy of the press release is attached hereto as Exhibit 99.1.
This information is being furnished pursuant to Item 2.02 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities under that section and shall not be deemed to be incorporated by reference into filings under the Securities Act of 1933.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits:
| Exhibit No. | Description | ||||
99.1 | Press Release dated April 28, 2026 | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
COMMVAULT SYSTEMS, INC.
| Dated: | April 28, 2026 | /s/ Gary Merrill | ||||||
| Gary Merrill Chief Financial Officer (Principal Financial Officer) | ||||||||
3
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 – 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 -
•Total revenues were $312 million, up 13% year over year
•Subscription revenue was $208 million, up 20% year over year, inclusive of term-based license revenue of $114 million, up 6% year over year, and SaaS revenue of $93 million, up 43% year over year
•Income from operations (EBIT) was $17 million, an operating margin of 5.3%
•Non-GAAP EBIT2 was $66 million, an operating margin of 21.3%
•Generated $132 million in operating cash flow and free cash flow2
Full Year Fiscal 2026 Highlights -
•Total revenues were $1,184 million, up 19% year over year
•Total ARR1 grew to $1,122 million, up 21% year over year, or 18% on a constant currency basis using the March 31, 2025 spot rates
•Subscription revenue was $768 million, up 30% year over year, inclusive of term-based license revenue of $435 million, up 18% year over year, and SaaS revenue of $333 million, up 52% year over year
•Subscription ARR1 grew to $989 million, up 27% year over year, or 24% on a constant currency basis using the March 31, 2025 spot rates
•Income from operations (EBIT) was $74 million, an operating margin of 6.3%
•Non-GAAP EBIT2 was $238 million, an operating margin of 20.1%
•Operating cash flow was $245 million, with free cash flow2 of $237 million
1
Recent Business Highlights -
•Commvault announced an integration with Microsoft Security to better connect threat detection with trusted recovery, and expanded its integration with CrowdStrike, to deliver bi-directional visibility with CrowdStrike Falcon Next-Gen SIEM.
•Commvault and NetApp announced a strategic alliance to deliver a powerful, integrated solution for enterprise data protection and cyber resilience.
•Commvault extended identity resilience to Okta and joined forces with CloudSEK to address a growing threat: exposed credentials on the dark web.
•Commvault expanded enterprise resilience to structured and AI data, enabled via its recent acquisition of data and AI security company Satori.
•Commvault announced a partnership with STACKIT that is designed to support European customers’ sovereign cloud requirements while delivering cyber resilience to enterprise organizations.
Financial Outlook for First Quarter and Full Year Fiscal 20273 -
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:
•Subscription revenue is expected to be between $263 million and $265 million
•Non-GAAP EBIT margin2 is expected to be approximately 19%
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:
•Subscription revenue is expected to be between $1,115 million and $1,125 million
•Subscription ARR1 is expected to be between $1,200 million and $1,210 million
•Total revenues are expected to be between $1,300 million and $1,310 million
•Non-GAAP EBIT margin2 is expected to be approximately 20.5%
•Free cash flow2 is expected to be between $250 million and $260 million
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.
2
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.
Investor Relations Contact
Michael J. Melnyk, CFA
646-522-6160
mmelnyk@commvault.com
Media Contact
Andrea Duffy
646-295-5241
andreaduffy@commvault.com
3
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% | |||||||||||||||||||||
4
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 ARR1
($ in thousands)
| Q4'25 | Q1'26 | Q2'26 | Q3'26 | Q4'26 | |||||||||||||||||||||||||
Total ARR1 | $ | 930,051 | $ | 996,202 | $ | 1,043,295 | $ | 1,084,880 | $ | 1,121,571 | |||||||||||||||||||
Subscription ARR1 | 780,098 | 843,873 | 893,707 | 940,859 | 989,294 | ||||||||||||||||||||||||
SaaS ARR1 | 281,045 | 306,874 | 335,669 | 363,732 | 400,157 | ||||||||||||||||||||||||
5
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.
| Q4'25 | Q1'26 | Q2'26 | Q3'26 | Q4'26 | |||||||||||||||||||||||||
Total ARR1 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 ARR1 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 ARR1 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 ARR1 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 ARR1 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 ARR1 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 -
•GAAP net income was $15 million, or $0.34 per diluted share for the three months ended March 31, 2026
•GAAP gross margin was 81.4% and non-GAAP gross margin2 was 81.8% for the three months ended March 31, 2026
•We repurchased approximately 3 million shares of common stock for $259 million during the three months ended March 31, 2026
•Weighted average diluted shares outstanding were approximately 43 million for the three months ended March 31, 2026
For the year ended March 31, 2026 -
•GAAP net income was $71 million, or $1.58 per diluted share for the year ended March 31, 2026
•GAAP gross margin was 81.2% and non-GAAP gross margin2 was 81.6% for the year ended March 31, 2026
•We repurchased approximately 4 million shares of common stock for $446 million during the year ended March 31, 2026
•Weighted average diluted shares outstanding were approximately 45 million for the year ended March 31, 2026
•Cash and cash equivalents totaled $900 million as of March 31, 2026
•SaaS net dollar retention rate (NRR)4 was 122% as of March 31, 2026
•On April 15, 2026, Commvault's Board of Directors approved recommitting our share repurchase program so that $250 million was made available
6
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 | |||||||||||||||||||
7
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 | ||||||||||
8
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 | |||||||||||||||
9
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 compensation5 | 29,247 | 28,840 | 118,886 | 108,615 | |||||||||||||||||||
FICA and payroll tax expense related to stock-based compensation6 | 691 | 1,767 | 4,140 | 5,459 | |||||||||||||||||||
Restructuring7 | 18,603 | 812 | 32,154 | 10,026 | |||||||||||||||||||
Amortization of intangible assets8 | 1,256 | 1,176 | 4,722 | 3,705 | |||||||||||||||||||
Litigation settlement9 | — | — | — | 675 | |||||||||||||||||||
Business combination costs10 | — | 201 | 1,902 | 2,541 | |||||||||||||||||||
Change in contingent consideration11 | — | (426) | (545) | 2,060 | |||||||||||||||||||
Adjustment on headquarters sale leaseback12 | — | — | 495 | — | |||||||||||||||||||
Noncash impairment charges13 | — | — | — | 2,910 | |||||||||||||||||||
Other nonrecurring charges14 | — | — | 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 compensation5 | 29,247 | 28,840 | 118,886 | 108,615 | |||||||||||||||||||
FICA and payroll tax expense related to stock-based compensation6 | 691 | 1,767 | 4,140 | 5,459 | |||||||||||||||||||
Restructuring7 | 18,603 | 812 | 32,154 | 10,026 | |||||||||||||||||||
Amortization of intangible assets8 | 1,256 | 1,176 | 4,722 | 3,705 | |||||||||||||||||||
Litigation settlement9 | — | — | — | 675 | |||||||||||||||||||
Business combination costs10 | — | 201 | 1,902 | 2,541 | |||||||||||||||||||
Change in contingent consideration11 | — | (426) | (545) | 2,060 | |||||||||||||||||||
Adjustment on headquarters sale leaseback12 | — | — | 495 | — | |||||||||||||||||||
Noncash impairment charges13 | — | — | — | 2,910 | |||||||||||||||||||
Other nonrecurring charges14 | — | — | 1,805 | — | |||||||||||||||||||
Non-GAAP provision for income taxes adjustment15 | (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 compensation5 | 0.68 | 0.64 | 2.66 | 2.40 | |||||||||||||||||||
FICA and payroll tax expense related to stock-based compensation6 | 0.02 | 0.04 | 0.09 | 0.12 | |||||||||||||||||||
Restructuring7 | 0.43 | 0.02 | 0.72 | 0.22 | |||||||||||||||||||
Amortization of intangible assets8 | 0.03 | 0.03 | 0.11 | 0.08 | |||||||||||||||||||
Litigation settlement9 | — | — | — | 0.01 | |||||||||||||||||||
Business combination costs10 | — | — | 0.04 | 0.06 | |||||||||||||||||||
Change in contingent consideration11 | — | (0.01) | (0.01) | 0.05 | |||||||||||||||||||
Adjustment on headquarters sale leaseback12 | — | — | 0.01 | — | |||||||||||||||||||
Noncash impairment charges13 | — | — | — | 0.06 | |||||||||||||||||||
Other nonrecurring charges14 | — | — | 0.04 | — | |||||||||||||||||||
Non-GAAP provision for income taxes adjustment15 | (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 | |||||||||||||||||||
10
| 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 | |||||||||||||||
11
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.
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 $10 million. Commvault intends to exclude these costs from its non-GAAP results as they are episodic in nature, directly tied to a discrete strategic initiative, and not reflective of ongoing operating performance.
Although noncash stock-based compensation and the additional FICA and related payroll tax expenses are necessary to attract and retain employees, Commvault places its primary emphasis on stockholder dilution as
12
compared to the accounting charges related to such equity compensation plans. Commvault believes that providing non-GAAP financial measures that exclude noncash stock-based compensation expense and the additional FICA and related payroll tax expenses incurred on vesting of restricted stock awards allow investors to make meaningful comparisons between Commvault’s operating results and those of other companies.
There are a number of limitations related to the use of non-GAAP income from operations and non-GAAP income from operations margin. The most significant limitation is that these non-GAAP financial measures exclude certain operating costs, primarily related to noncash stock-based compensation, which is of a recurring nature. Noncash stock-based compensation has been, and will continue to be for the foreseeable future, a significant recurring expense in Commvault’s operating results. In addition, noncash stock-based compensation is an important part of Commvault’s employees’ compensation and can have a significant impact on their performance. The following table presents the stock-based compensation expense included in cost of revenues, sales and marketing, research and development and general and administrative ($ 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.
13
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.
14
Notes
1.Annualized recurring revenue (ARR) represents the annualized value of all active contracts as of the end of a reporting period. ARR includes recurring subscription offerings, customer support associated with perpetual and term licenses, enhanced customer support contracts, and managed service offerings. ARR excludes non-recurring elements, such as perpetual licenses and professional services, which are typically delivered at a point in time. For all term-based arrangements, ARR is calculated by dividing the total active contract value by the number of days in the contract term and multiplying the result by 365. For consumption-based arrangements on a pay as you go model without a fixed commitment, ARR is calculated by annualizing the revenue contractually expected to be received in a given month based on actual monthly usage from a prior month. Because ARR includes only contracts that are active at the end of the reporting period, it does not reflect assumptions or estimates regarding future contract renewals or non-renewals. Subscription ARR represents the portion of annual recurring revenue attributable to term‑based licenses, maintenance and support services associated with term license arrangements, SaaS subscriptions, and consumption‑based arrangements, calculated using the same ARR methodology. SaaS ARR represents the cloud‑hosted portion of Subscription ARR and excludes revenue attributable to term license arrangements and related maintenance and support services.
These metrics should be viewed independently of GAAP revenue, deferred revenue and unbilled revenue and are not intended to be combined with or to replace those items. These metrics are not a forecast of future revenues. Management believes that reviewing these metrics, in addition to GAAP results, helps investors and financial analysts understand the value of Commvault's recurring revenue streams presented on an annualized basis. There is no direct GAAP comparative to ARR. See “Use of Non-GAAP Financial Measures" for additional explanation.
2.A reconciliation of GAAP to non-GAAP results has been provided in the reconciliation of GAAP to non-GAAP financial measures included in this press release. An explanation of these measures is also included under the heading “Use of Non-GAAP Financial Measures.”
3.Commvault does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. See “Forward-looking non-GAAP measures” for additional explanation.
4.SaaS net dollar retention rate (NRR) is the percentage of SaaS ARR retained from existing customers at the start of an annual period after accounting for expansion revenue, churn, and downsell. It is presented on a constant currency basis using exchange rates as of March 31, 2025. Acquired SaaS ARR is excluded until the acquisition is fully integrated, which we generally expect to occur twelve months from the close date. We believe our SaaS NRR offers valuable insight into the year-over-year expansion of our existing customer base, reflecting both increased utilization of current products and services as well as the adoption of additional offerings. There is no direct GAAP comparative to NRR. See “Use of Non-GAAP Financial Measures" for additional explanation.
15
5.Represents noncash stock-based compensation charges associated with restricted stock units granted and our Employee Stock Purchase Plan, exclusive of stock-based compensation expense related to Commvault's restructuring activities described below in Note 7.
6.Represents additional FICA and related payroll tax expenses incurred by Commvault when employees vest in restricted stock awards.
7.During fiscal 2026, we initiated two restructuring plans designed to optimize our cost structure, enhance organizational agility, align resources with strategic priorities, and reorganize our business technology function. These initiatives include workforce reductions, technology transitions, office lease closures, and the exit of operations in certain jurisdictions. The related charges primarily consist of severance and associated employee termination costs, stock‑based compensation expense resulting from modification events, and office closure and exit charges. We expect both restructuring plans to be substantially completed during fiscal 2027.
Restructuring charges incurred in the prior year relate to a plan initiated in the fourth quarter of fiscal 2024 and completed in fiscal 2025. These charges consisted of severance and associated employee termination costs and stock‑based compensation expense resulting from modification events.
Restructuring charges incurred in the prior year relate to a plan initiated in the fourth quarter of fiscal 2024 and completed in fiscal 2025. These charges consisted of severance and associated employee termination costs and stock‑based compensation expense resulting from modification events.
8.Represents noncash amortization of intangible assets.
9.During the first quarter of fiscal 2025, we entered into a settlement agreement resulting in a payment of approximately $1.5 million which resolved certain legal matters. For the three months ended June 30, 2024, approximately $0.7 million was recorded in general and administrative expenses and the remaining $0.8 million was incurred in a prior period that is not presented in the Consolidated Statements of Operations.
10.These charges relate to acquisition and business development activities, including legal, accounting and advisory services. Management believes, when used as a supplement to GAAP results, that the exclusion of these costs will help investors and financial analysts understand Commvault's operating results and underlying operational trends as compared to other periods.
11.Represents the change in the estimated fair value of the contingent consideration arrangement related to the acquisition of Appranix, Inc.
12.During the first quarter of fiscal 2026, we finalized the sale of our corporate headquarters and entered into a lease for a portion of the premises. These noncash charges represent accounting adjustments for a $1.3 million loss associated with the related lease terms and a $0.8 million adjustment to reflect the final sale price of the assets resulting in a net charge of $0.5 million recorded in general and administrative expense on the Consolidated Statements of Operations.
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13.Represents noncash impairment charges related to our corporate headquarters.
14.These primarily legal and consulting expenses are related to our response in the second quarter of fiscal 2026 to a one-time security matter from the first quarter. Given the non-recurring nature of the matter, these costs have been excluded from non-GAAP results to provide a clearer view of ongoing operating performance.
15.The provision for income taxes is adjusted to reflect Commvault’s estimated non-GAAP effective tax rate of 24%.
17
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 | |||||||||||||||||||
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| 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 | |||||||||||||||||||
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FAQ
How did Commvault (CVLT) perform financially in fiscal 2026?
Commvault delivered solid growth in fiscal 2026, with total revenue of $1.18 billion, up 19% year over year. Subscription revenue reached $768.3 million, up 30%, and GAAP net income was $70.7 million, or $1.58 per diluted share, supported by strong recurring business.
What were Commvault (CVLT)’s key fourth quarter 2026 results?
In Q4 fiscal 2026, Commvault generated $311.7 million in revenue, up 13% year over year. Subscription revenue was $207.6 million, up 20%, while SaaS revenue grew 43% to $93.1 million. GAAP net income for the quarter was $14.6 million, or $0.34 per diluted share.
How fast are Commvault (CVLT)’s ARR and SaaS businesses growing?
Commvault’s recurring metrics showed strong gains. Total ARR reached $1.12 billion, up 21% year over year, with subscription ARR at $989.3 million, up 27%. SaaS ARR climbed to $400.2 million. The SaaS net dollar retention rate was 122% as of March 31, 2026, indicating healthy expansion revenue.
What is Commvault (CVLT)’s profitability and cash flow profile?
Commvault reported fiscal 2026 non-GAAP EBIT of $237.5 million with a 20.1% margin and GAAP net income of $70.7 million. Operating cash flow was $244.7 million, and non-GAAP free cash flow reached $237.2 million, reflecting efficient conversion of earnings into cash.
How strong is Commvault (CVLT)’s balance sheet and capital return activity?
As of March 31, 2026, Commvault held $900.0 million in cash and cash equivalents and had $880.9 million of convertible notes. In fiscal 2026, it repurchased about 4 million shares for $446 million. The board later recommitted the share repurchase program with $250 million available.
What guidance did Commvault (CVLT) give for fiscal 2027?
For fiscal 2027, Commvault expects subscription revenue of $1.115–$1.125 billion and total revenue of $1.30–$1.31 billion. Management targets a non-GAAP EBIT margin of about 20.5%, free cash flow of $250–$260 million, and subscription ARR of $1.20–$1.21 billion.