Profit drops while NICE Ltd. (NASDAQ: NICE) lifts 2026 EPS outlook
Rhea-AI Filing Summary
NICE Ltd. reported Q2 2026 revenue of $782.3 million, up 7.6% year over year, with cloud revenue of $609.0 million growing 12.6%. Management said revenue exceeded the high end of its guidance range and non-GAAP EPS reached the top of its range. AI annual recurring revenue was $362 million, representing 15% of cloud revenue, supported by record new cloud ACV and record AI bookings including NICE Cognigy.
Profitability weakened despite growth. GAAP operating income was $104.0 million versus $160.6 million a year earlier, with operating margin falling to 13.3% from 22.1%. GAAP net income was $83.2 million and diluted EPS $1.40, down from $187.4 million and $2.96; non-GAAP diluted EPS was $2.70 versus $3.01. Operating cash flow was $122.7 million and free cash flow $93.1 million; the company held $354.7 million in cash and short-term investments with no debt and repurchased $58.0 million of shares. For Q3 2026, non-GAAP revenue is guided to $780–$790 million and EPS to $2.73–$2.83, while full-year 2026 non-GAAP revenue of $3,170–$3,190 million is reiterated and EPS guidance raised to $11.06–$11.26, including 13%–15% cloud revenue growth.
Positive
- Revenue and cloud growth: Q2 2026 revenue reached $782.3 million, up 7.6% year over year, with cloud revenue of $609.0 million growing 12.6%.
- AI and guidance strength: AI annual recurring revenue hit $362 million (15% of cloud revenue), and full-year 2026 non-GAAP EPS guidance was raised to $11.06–$11.26.
Negative
- Sharp earnings decline: GAAP net income fell to $83.2 million in Q2 2026 from $187.4 million a year earlier, with diluted EPS dropping from $2.96 to $1.40.
- Margin compression: GAAP operating margin decreased to 13.3% from 22.1%, and non-GAAP operating margin fell to 25.3% from 30.2% year over year.
Filing Explained
As a Form 6-K, NICE's interim report, the
Key Figures
Q2 2026 Total Revenue: $782.3 million
Q2 2026 Cloud Revenue: $609.0 million
Q2 2026 GAAP Net Income: $83.2 million
+5 more
8 metrics
Q2 2026 Total Revenue
$782.3 million
GAAP and non-GAAP, up 7.6% year over year versus $726.7 million in Q2 2025
Q2 2026 Cloud Revenue
$609.0 million
Cloud revenue, up 12.6% year over year from $540.8 million in Q2 2025
Q2 2026 GAAP Net Income
$83.2 million
Down from $187.4 million and a 25.8% net margin in Q2 2025
Q2 2026 GAAP Diluted EPS
$1.40
Earnings per share decreased from $2.96 in the second quarter of 2025
Q2 2026 Non-GAAP Diluted EPS
$2.70
Non-GAAP diluted EPS versus $3.01 in the second quarter of 2025
Q2 2026 Operating Cash Flow
$122.7 million
Net cash provided by operating activities in the second quarter of 2026
AI Annual Recurring Revenue
$362 million
AI ARR in Q2 2026, representing 15% of cloud revenue
Cash and Short-Term Investments
$354.7 million
Cash, cash equivalents and short-term investments as of June 30, 2026; no outstanding debt
Key Terms
Annual Recurring Revenue, free cash flow, share-based compensation, non-GAAP, +2 more
6 terms
Annual Recurring Revenue financial
"AI ARR reaching $362 million and now representing 15% of our cloud revenue"
Annual recurring revenue is the predictable amount of money a company expects to earn each year from ongoing customer subscriptions or contracts. It helps businesses understand how much steady income they can count on, much like a subscription service that charges customers every month or year. This figure is important because it shows the company's stability and growth potential.
free cash flow financial
"Free Cash Flow (a) was $93,116 for the quarter ended June 30, 2026"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
non-GAAP financial
"Non-GAAP financial measures consist of GAAP measures adjusted to exclude certain items"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
AI-native CXone platform technical
"consolidate their customer engagement needs on our AI-native CXone platform"
agentic AI technical
"combining leading agentic AI with decades of CX expertise and data"
Agentic AI refers to computer systems that can make their own decisions and take actions without needing someone to tell them what to do each time. It's like giving a robot a degree of independence to solve problems or achieve goals on its own, which matters because it could change how we work and interact with technology in everyday life.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did NICE (NICE) perform on revenue in Q2 2026?
NICE reported Q2 2026 revenue of $782.3 million, a 7.6% year-over-year increase from $726.7 million in Q2 2025. Growth was driven mainly by cloud revenue, which reached $609.0 million, up 12.6% year over year.
What were NICE (NICE) earnings and margins in Q2 2026?
GAAP net income was $83.2 million with diluted EPS of $1.40, down from $2.96 a year earlier. GAAP operating margin fell to 13.3% from 22.1%, while non-GAAP operating margin declined to 25.3% from 30.2% year over year.
How fast are NICE (NICE) cloud and AI businesses growing?
Cloud revenue reached $609.0 million in Q2 2026, growing 12.6% year over year. AI annual recurring revenue was $362 million, now representing 15% of cloud revenue, supported by record new cloud ACV and record AI bookings.
What guidance did NICE (NICE) give for Q3 2026?
For Q3 2026, NICE expects non-GAAP revenue of $780–$790 million, implying 7.2% growth at the midpoint. Non-GAAP diluted EPS is guided to a range of $2.73–$2.83, reflecting continued focus on profitability alongside growth.
What is NICE (NICE) full-year 2026 outlook?
Full-year 2026 non-GAAP revenue is reiterated at $3,170–$3,190 million, about 8.0% growth at the midpoint. Non-GAAP EPS guidance was raised to $11.06–$11.26, and the company continues to expect 13%–15% year-over-year growth in cloud revenue.
What is NICE (NICE) cash and debt position as of June 30, 2026?
As of June 30, 2026, NICE held $354.7 million in cash, cash equivalents, and short-term investments and reported no outstanding debt. In Q2 2026 it generated $122.7 million in operating cash flow and used $58.0 million for share repurchases.
How did NICE (NICE) free cash flow trend in Q2 2026?
NICE generated Q2 2026 free cash flow of $93.1 million, up from $38.6 million in Q2 2025. This reflects $122.7 million in operating cash flow, offset by $7.8 million of capital expenditures and $21.7 million of capitalized internal-use software costs.
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2026 (Report No. 1)
Commission File Number: 0-27466
NICE LTD.
|
(Translation of Registrant’s Name into English)
|
13 Zarchin Street, P.O. Box 690, Ra’anana 4310602, Israel
|
(Address of Principal Executive Offices)
|
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
THE GAAP FINANCIAL STATEMENTS ATTACHED TO THE PRESS RELEASE ATTACHED HERETO AS EXHIBIT 99.1 OF THIS REPORT ON FORM 6-K ARE HEREBY INCORPORATED BY REFERENCE INTO NICE LTD.`S (“NICE”) REGISTRATION
STATEMENTS ON FORM S-8 (REGISTRATION STATEMENT NOS. 333-166364, 333-168100, 333-171165, 333-162795, 333-162110, 333-06784, 333-08146, 333-11842, 333-09350, 333-11154, 333-111112, 333-111113, 333-134355, 333-144589, 333-145981, 333-153230, 333-177510,
333-179408, 333-181375, 333-191176, 333-199904, 333-210341, 333-210343, 333-210344, 333-214584, 333-226930, 333-228911, 333-249186, 333-270969, 333-290600, and 333-290601), AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS SUBMITTED, TO
THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
CONTENTS
This Report on Form 6-K of NICE consists of the following documents, which are attached hereto and incorporated by reference herein:
99.1 Press Release: NiCE Exceeds Revenue Guidance Range, Reporting 8% Year-Over-Year Revenue Growth in Second Quarter 2026, Dated August 5, 2026.
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, thereunto duly authorized.
|
|
NICE LTD.
By: /s/ Alon Levy
Name: Alon Levy
Title: Vice President, General Counsel and Corporate Secretary
Dated: August 5, 2026
|
EXHIBIT INDEX
99.1 Press Release: NiCE Exceeds Revenue Guidance Range, Reporting 8% Year-Over-Year Revenue Growth in Second Quarter 2026, Dated August 5, 2026.
Exhibit 99.1
NiCE Exceeds Revenue Guidance Range, Reporting 8% Year-Over-Year
Revenue Growth in Second Quarter 2026
| • |
Total revenue growth driven by 12.6% year over year cloud revenue growth
|
| • |
International revenue increased 22% year over year (21% in constant currency)
|
| • |
Company raises full-year 2026 EPS guidance
|
Hoboken, New Jersey, August 5, 2026 - NiCE (NASDAQ: NICE) today announced results for the second quarter ended June 30, 2026, as compared to the corresponding period of the
previous year.
Second Quarter 2026 Financial Highlights*
|
GAAP
|
Non-GAAP
|
|
Total revenue was $782.3 million and increased 7.6%
|
Total revenue was $782.3 million and increased 7.6%
|
|
Cloud revenue was $609.0 million and increased 12.6%
|
Cloud revenue was $609.0 million and increased 12.6%
|
|
Operating income was $104.0 million with operating margin of 13.3%
|
Operating income was $198.0 million with operating margin of 25.3%
|
|
Diluted EPS was $1.40
|
Diluted EPS was $2.70
|
|
Net cash provided by operating activities was $122.7 million
|
*For all periods presented, there were no adjustments to the GAAP revenue, and thus the non-GAAP revenue is equal to the GAAP revenue presented.
“We executed well in the second quarter, delivering revenue above the high-end of our guidance range and reaching the high-end of our non-GAAP EPS range,” said Scott Russell, CEO of NiCE. “Underlying demand trends
across our business continued to gain momentum during the second quarter as organizations increasingly consolidate their customer engagement needs on our AI-native CXone platform. This drove a record second quarter for new cloud ACV bookings,
including an all-time record quarter for AI bookings with strong momentum at NiCE Cognigy. AI continues to become a more meaningful contributor to our business, with AI ARR reaching $362 million and now representing 15% of our cloud revenue. We are
still in the early stages of a much broader AI adoption cycle across our customer base.”
Mr. Russell continued, “Enterprises are moving beyond AI experimentation and increasingly focusing on platforms that quickly deliver measurable outcomes in production environments. By embedding Cognigy natively into
CXone, we're combining leading agentic AI with decades of CX expertise and data to deliver better enterprise outcomes. Through this native integration, we are accelerating innovation across our platform, growing partner engagement, and increasing
adoption among large enterprises globally. NiCE remains strongly positioned to extend our leadership in CX AI and capture the significant opportunity ahead.”
GAAP Financial Highlights for the Second Quarter Ended June 30:
Revenues:
Second quarter 2026 total revenues increased 7.6% year over year to $782.3 million compared to $726.7 million for the second quarter of 2025.
Gross Profit:
Second quarter 2026 gross profit was $501.0 million compared to $485.1 million for the second quarter of 2025. Second quarter 2026 gross margin was 64.0% compared to 66.8% for the second quarter of 2025.
Operating Income:
Second quarter 2026 operating income was $104.0 million compared to $160.6 million for the second quarter of 2025. Second quarter 2026 operating margin was 13.3% compared to 22.1% for the second quarter of 2025.
Net Income:
Second quarter 2026 net income was $83.2 million compared to $187.4 million for the second quarter of 2025.
Second quarter 2026 net income margin was 10.6% compared to 25.8% for the second quarter of 2025.
Fully Diluted Earnings Per Share:
Fully diluted earnings per share for the second quarter of 2026 was $1.40 compared to $2.96 in the second quarter of 2025.
Cash Flow and Cash Balance:
Second quarter 2026 operating cash flow was $122.7 million. In the second quarter of 2026, $58.0 million was used for share repurchases. As of June 30, 2026, total cash and cash equivalents, and short-term investments
were $354.7 million, with no outstanding debt.
Non-GAAP Financial Highlights for the Second Quarter Ended June 30:
Revenues:
Second quarter 2026 non-GAAP total revenues increased 7.6% year over year to $782.3 million compared to $726.7 million for the second quarter of 2025.
Gross Profit:
Second quarter 2026 non-GAAP gross profit was $535.4 million compared to $503.9 million for the second quarter of 2025. Second quarter 2026 non-GAAP gross margin was 68.4% compared to 69.3% for the second quarter of
2025.
Operating Income:
Second quarter 2026 non-GAAP operating income was $198.0 million compared to $219.7 million for the second quarter of 2025. Second quarter 2026 non-GAAP operating margin was 25.3% compared to 30.2% for the second
quarter of 2025.
Net Income:
Second quarter 2026 non-GAAP net income was $160.5 million compared to $190.3 million for the second quarter of 2025. Second quarter 2026 non-GAAP net income margin totaled 20.5% compared to 26.2% for the second
quarter of 2025.
Fully Diluted Earnings Per Share:
Second quarter 2026 non-GAAP fully diluted earnings per share was $2.70 compared to $3.01 for the second quarter of 2025.
Third Quarter and Full Year 2026 Guidance:
Third-Quarter 2026:
Third-quarter 2026 non-GAAP total revenues are expected to be in a range of $780 million to $790 million, representing 7.2% year over year growth at the midpoint.
Third-quarter 2026 non-GAAP fully diluted earnings per share are expected to be in a range of $2.73 to $2.83.
Full-Year 2026:
Full-year 2026 non-GAAP total revenues are reiterated and expected to be in a range of $3,170 million to $3,190 million, representing 8.0% year over year growth at the midpoint.
We are raising full-year 2026 non-GAAP fully diluted earnings per share which is now expected to be in a range of $11.06 to $11.26.
The above full year 2026 guidance continues to include the expectation of 13%-15% year over year growth in cloud revenue.
Quarterly Results Conference Call
NiCE management will host its earnings conference call today, August 5, 2026, at 8:30 AM ET, 13:30 GMT,
15:30 Israel, to discuss the results and the company's outlook. A live webcast and replay will be available on the Investor Relations page of the Company’s website. To access, please register by clicking here: https://www.nice.com/company/investors/ir-events.
Explanation of Non-GAAP measures
Non-GAAP financial measures are included in this press release. Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude share-based compensation, amortization of acquired intangible assets,
acquisition and divestiture related expenses, gains on intercompany foreign currency transactions, amortization of deferred financing costs, amortization of discount on debt, the tax effect of the Non-GAAP adjustments, and the tax rate impact
resulting from the non-U.S. intercompany transaction.
The Company believes that these Non-GAAP financial measures, used in conjunction with the corresponding GAAP measures, provide investors with useful supplemental information about the ongoing financial performance of
our business. Our management regularly uses our supplemental Non-GAAP financial measures internally to understand, manage and evaluate our business and to make financial, strategic and operating decisions. These Non-GAAP measures are among the
primary factors management uses in planning for and forecasting future periods. Our Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with
our consolidated financial statements prepared in accordance with GAAP. These Non-GAAP financial measures may differ materially from the Non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and Non-GAAP
basis is provided in a table immediately following the Consolidated Statements of Income. The Company provides guidance only on a Non-GAAP basis. A reconciliation of guidance from a GAAP to Non-GAAP basis is not available due to the
unpredictability and uncertainty associated with future events that would be reported in GAAP results and would require adjustments between GAAP and Non-GAAP financial measures, including the impact of future possible business acquisitions.
Accordingly, a reconciliation of the guidance based on Non-GAAP financial measures to corresponding GAAP financial measures for future periods is not available without unreasonable effort.
About NiCE
NiCE (NASDAQ: NICE) is transforming the world with AI that puts people first. Our purpose-built AI-powered platforms automate engagements into proactive, safe, intelligent
actions, empowering individuals and organizations to innovate and act, from interaction to resolution. Trusted by organizations throughout 150+ countries worldwide, NiCE’s platforms are widely adopted across industries connecting people, systems,
and workflows to work smarter at scale, elevating performance across the organization, delivering proven measurable outcomes.
Investor Relations Contact
Ryan Gilligan, +1-551-417-2531, ir@nice.com, ET
Omri Arens, +972 3 763-0127, ir@nice.com, CET
Corporate Media Contact
Christopher Irwin-Dudek, +1 201 561 4442, media@nice.com, ET
Trademark Note: NiCE and the NiCE logo are trademarks or registered trademarks of NICE. All other marks are trademarks of their respective owners. For a full list of NiCE
trademarks, please see: http://www.nice.com/nice-trademarks.
Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as “believe”, “expect”, “seek”, “may”, “will”, “intend”, “should”, “project”, “anticipate”, “plan”, and similar expressions. Forward-looking statements are based on the current beliefs, expectations and assumptions of the Company’s management regarding the future of the Company’s business, performance, future plans and strategies, projections, anticipated events and trends, the economic environment, and other future conditions. Examples of forward-looking statements include guidance regarding the Company’s revenue and earnings and the growth of our cloud, analytics and artificial intelligence business.
Forward looking statements are inherently subject to significant uncertainties, contingencies, and risks, including, economic, competitive and other factors, which are difficult to predict and many of which are beyond
the control of management. The Company cautions that these statements are not guarantees of future performance, and investors should not place undue reliance on them. There are or will be important known and unknown factors and uncertainties that
could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These factors, include, but are not limited to, risks associated with changes in economic and business conditions, competition,
successful execution of the Company’s growth strategy, success and growth of the Company’s cloud Software-as-a-Service business, difficulties in making additional acquisitions or effectively integrating acquired operations, products, technologies
and personnel, the Company’s dependency on third-party cloud computing platform providers, hosting facilities and service partners, rapid changes in technology and market requirements, the implementation of AI capabilities in certain products and
services; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications, loss of market share, cyber security attacks or other security incidents, privacy concerns and
legislation impacting the Company’s business, changes in currency exchange rates and interest rates, the effects of additional tax liabilities resulting from our global operations, the effect of unexpected events or geo-political conditions,
including those arising from political instability or armed conflict that may disrupt our business and the global economy, our ability to recruit and retain qualified personnel, the effect of newly enacted or modified laws, regulation or standards
on the Company and our products, and various other factors and uncertainties discussed in our filings with the U.S. Securities and Exchange Commission (the “SEC”).
You are encouraged to carefully review the section entitled “Risk Factors” in our latest Annual Report on Form 20-F and our other filings with the SEC for additional information regarding these and other factors and
uncertainties that could affect our future performance. The forward-looking statements contained in this press release speak only as of the date hereof, and the Company undertakes no obligation to update or revise them, whether as a result of new
information, future developments or otherwise, except as required by law.
###
|
NICE LTD. AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
U.S. dollars in thousands
|
|
June 30,
|
December 31,
|
|||||||
|
2026
|
2025
|
|||||||
|
Unaudited
|
Audited
|
|||||||
|
ASSETS
|
||||||||
|
CURRENT ASSETS:
|
||||||||
|
Cash and cash equivalents
|
$
|
315,384
|
$
|
379,388
|
||||
|
Short-term investments
|
39,306
|
38,010
|
||||||
|
Trade receivables
|
836,588
|
737,954
|
||||||
|
Prepaid expenses and other current assets
|
277,168
|
223,780
|
||||||
|
Total current assets
|
1,468,446
|
1,379,132
|
||||||
|
LONG-TERM ASSETS:
|
||||||||
|
Property and equipment, net
|
197,616
|
189,395
|
||||||
|
Deferred tax assets
|
173,258
|
198,213
|
||||||
|
Other intangible assets, net
|
515,880
|
587,599
|
||||||
|
Operating lease right-of-use assets
|
81,084
|
78,064
|
||||||
|
Goodwill
|
2,438,776
|
2,440,532
|
||||||
|
Prepaid expenses and other long-term assets
|
246,378
|
233,095
|
||||||
|
Total long-term assets
|
3,652,992
|
3,726,898
|
||||||
|
TOTAL ASSETS
|
$
|
5,121,438
|
$
|
5,106,030
|
||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
|
CURRENT LIABILITIES:
|
||||||||
|
Trade payables
|
$
|
104,095
|
$
|
100,782
|
||||
|
Deferred revenues and advances from customers
|
351,756
|
303,911
|
||||||
|
Current maturities of operating leases
|
14,032
|
13,742
|
||||||
|
Accrued expenses and other liabilities
|
635,019
|
469,192
|
||||||
|
Total current liabilities
|
1,104,902
|
887,627
|
||||||
|
LONG-TERM LIABILITIES:
|
||||||||
|
Deferred revenues and advances from customers
|
48,547
|
61,392
|
||||||
|
Operating leases
|
74,187
|
75,059
|
||||||
|
Deferred tax liabilities
|
17,595
|
109,993
|
||||||
|
Other long-term liabilities
|
98,202
|
95,431
|
||||||
|
Total long-term liabilities
|
238,531
|
341,875
|
||||||
|
SHAREHOLDERS' EQUITY
|
||||||||
|
Nice Ltd's equity
|
3,778,005
|
3,876,528
|
||||||
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
5,121,438
|
$
|
5,106,030
|
||||
|
NICE LTD. AND SUBSIDIARIES
|
|||
|
CONSOLIDATED STATEMENTS OF INCOME
|
|||
|
U.S. dollars in thousands (except per share amounts)
|
|||
|
Quarter ended
|
Year to date
|
|||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
2026
|
2025
|
2026
|
2025
|
|||||||||||||
|
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
|
Revenue:
|
||||||||||||||||
|
Cloud
|
$
|
609,049
|
$
|
540,822
|
$
|
1,212,414
|
$
|
1,067,145
|
||||||||
|
Services
|
124,640
|
140,480
|
248,608
|
280,683
|
||||||||||||
|
Product
|
48,604
|
45,410
|
89,888
|
79,076
|
||||||||||||
|
Total revenue
|
782,293
|
726,712
|
1,550,910
|
1,426,904
|
||||||||||||
|
Cost of revenue:
|
||||||||||||||||
|
Cloud
|
219,629
|
185,971
|
439,039
|
365,445
|
||||||||||||
|
Services
|
55,129
|
48,254
|
103,399
|
94,497
|
||||||||||||
|
Product
|
6,526
|
7,376
|
12,664
|
13,739
|
||||||||||||
|
Total cost of revenue
|
281,284
|
241,601
|
555,102
|
473,681
|
||||||||||||
|
Gross profit
|
501,009
|
485,111
|
995,808
|
953,223
|
||||||||||||
|
Operating expenses:
|
||||||||||||||||
|
Research and development, net
|
102,825
|
89,762
|
200,301
|
178,864
|
||||||||||||
|
Selling and marketing
|
200,436
|
169,799
|
385,542
|
331,233
|
||||||||||||
|
General and administrative
|
93,748
|
64,958
|
179,215
|
134,365
|
||||||||||||
|
Total operating expenses
|
397,009
|
324,519
|
765,058
|
644,462
|
||||||||||||
|
Operating income
|
104,000
|
160,592
|
230,750
|
308,761
|
||||||||||||
|
Financial and other income, net
|
(3,606
|
)
|
(14,820
|
)
|
(22,924
|
)
|
(30,670
|
)
|
||||||||
|
Income before tax
|
107,606
|
175,412
|
253,674
|
339,431
|
||||||||||||
|
Taxes on income
|
24,379
|
(11,992
|
)
|
123,633
|
22,737
|
|||||||||||
|
Net income
|
$
|
83,227
|
$
|
187,404
|
$
|
130,041
|
$
|
316,694
|
||||||||
|
Earnings per share:
|
||||||||||||||||
|
Basic
|
$
|
1.41
|
$
|
3.01
|
$
|
2.19
|
$
|
5.05
|
||||||||
|
Diluted
|
$
|
1.40
|
$
|
2.96
|
$
|
2.17
|
$
|
4.97
|
||||||||
|
Weighted average shares outstanding:
|
||||||||||||||||
|
Basic
|
58,818
|
62,160
|
59,366
|
62,754
|
||||||||||||
|
Diluted
|
59,394
|
63,210
|
59,996
|
63,785
|
||||||||||||
|
NICE LTD. AND SUBSIDIARIES
|
|
|
CONSOLIDATED CASH FLOW STATEMENTS
|
|
|
U.S. dollars in thousands
|
|
Quarter ended
|
Year to date
|
|||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
2026
|
2025
|
2026
|
2025
|
|||||||||||||
|
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
|
Operating Activities
|
||||||||||||||||
|
Net income
|
$
|
83,227
|
$
|
187,404
|
$
|
130,041
|
$
|
316,694
|
||||||||
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
|
Depreciation and amortization
|
62,374
|
44,612
|
124,216
|
88,053
|
||||||||||||
|
Share-based compensation
|
52,668
|
37,310
|
88,060
|
80,647
|
||||||||||||
|
Amortization of premium and discount and accrued interest on marketable securities
|
(90
|
)
|
(2,029
|
)
|
(199
|
)
|
(4,304
|
)
|
||||||||
|
Deferred taxes, net
|
6,456
|
(3,757
|
)
|
(67,605
|
)
|
(25,294
|
)
|
|||||||||
|
Changes in operating assets and liabilities:
|
||||||||||||||||
|
Trade Receivables, net
|
(69,242
|
)
|
(30,742
|
)
|
(99,383
|
)
|
(26,064
|
)
|
||||||||
|
Prepaid expenses and other current assets
|
3,659
|
(14,846
|
)
|
12,849
|
13,709
|
|||||||||||
|
Operating lease right-of-use assets
|
3,295
|
2,929
|
6,255
|
8,826
|
||||||||||||
|
Trade payables
|
2,581
|
21,884
|
4,872
|
(31,407
|
)
|
|||||||||||
|
Accrued expenses and other current liabilities
|
(3,351
|
)
|
(158,979
|
)
|
92,746
|
(109,461
|
)
|
|||||||||
|
Deferred revenue
|
(13,144
|
)
|
(19,719
|
)
|
36,282
|
49,855
|
||||||||||
|
Operating lease liabilities
|
(6,398
|
)
|
(746
|
)
|
(9,841
|
)
|
(10,935
|
)
|
||||||||
|
Amortization of discount on debt
|
-
|
428
|
-
|
849
|
||||||||||||
|
Gains on intercompany foreign currency transactions
|
-
|
-
|
(17,835
|
)
|
-
|
|||||||||||
|
Other
|
622
|
(2,427
|
)
|
1,445
|
(4,775
|
)
|
||||||||||
|
Net cash provided by operating activities
|
122,657
|
61,322
|
301,903
|
346,393
|
||||||||||||
|
Investing Activities
|
||||||||||||||||
|
Purchase of property and equipment
|
(7,838
|
)
|
(4,579
|
)
|
(17,214
|
)
|
(8,246
|
)
|
||||||||
|
Purchase of Investments
|
(5,399
|
)
|
(24,687
|
)
|
(21,147
|
)
|
(74,141
|
)
|
||||||||
|
Proceeds from sales of marketable investments
|
12,691
|
76,416
|
19,883
|
134,774
|
||||||||||||
|
Capitalization of internal use software costs
|
(21,703
|
)
|
(18,137
|
)
|
(42,783
|
)
|
(34,903
|
)
|
||||||||
|
Payments for business acquisitions, net of cash acquired
|
-
|
-
|
-
|
(36,466
|
)
|
|||||||||||
|
Net cash used in investing activities
|
(22,249
|
)
|
29,013
|
(61,261
|
)
|
(18,982
|
)
|
|||||||||
|
Financing Activities
|
||||||||||||||||
|
Proceeds from employee stock plans
|
11,533
|
333
|
11,590
|
1,008
|
||||||||||||
|
Purchase of treasury shares
|
(57,954
|
)
|
(30,839
|
)
|
(311,204
|
)
|
(283,168
|
)
|
||||||||
|
Payment of deferred financing costs
|
(833
|
)
|
-
|
(3,303
|
)
|
-
|
||||||||||
|
Net cash used in financing activities
|
(47,254
|
)
|
(30,506
|
)
|
(302,917
|
)
|
(282,160
|
)
|
||||||||
|
Effect of exchange rates on cash and cash equivalents
|
2,308
|
5,139
|
(562
|
)
|
6,286
|
|||||||||||
|
Net change in cash, cash equivalents and restricted cash
|
55,462
|
64,968
|
(62,837
|
)
|
51,537
|
|||||||||||
|
Cash, cash equivalents and restricted cash, beginning of period
|
$
|
263,708
|
$
|
471,601
|
$
|
382,007
|
$
|
485,032
|
||||||||
|
Cash, cash equivalents and restricted cash, end of period
|
$
|
319,170
|
$
|
536,569
|
$
|
319,170
|
$
|
536,569
|
||||||||
|
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet:
|
||||||||||||||||
|
Cash and cash equivalents
|
$
|
315,384
|
$
|
535,050
|
$
|
315,384
|
$
|
535,050
|
||||||||
|
Restricted cash included in other current assets
|
$
|
3,786
|
$
|
1,519
|
$
|
3,786
|
$
|
1,519
|
||||||||
|
Total cash, cash equivalents and restricted cash shown in the statement of cash flows
|
$
|
319,170
|
$
|
536,569
|
$
|
319,170
|
$
|
536,569
|
||||||||
|
NICE LTD. AND SUBSIDIARIES
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
|
|
|
U.S. dollars in thousands (except per share amounts)
|
|
Quarter ended
|
Year to date
|
|||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
2026
|
2025
|
2026
|
2025
|
|||||||||||||
|
GAAP revenues
|
$
|
782,293
|
$
|
726,712
|
$
|
1,550,910
|
$
|
1,426,904
|
||||||||
|
Non-GAAP revenues
|
$
|
782,293
|
$
|
726,712
|
$
|
1,550,910
|
$
|
1,426,904
|
||||||||
|
GAAP cost of revenue
|
$
|
281,284
|
$
|
241,601
|
$
|
555,102
|
$
|
473,681
|
||||||||
|
Amortization of acquired intangible assets on cost of cloud
|
(26,468
|
)
|
(13,202
|
)
|
(53,410
|
)
|
(28,605
|
)
|
||||||||
|
Cost of cloud revenue adjustment (1)
|
(4,618
|
)
|
(3,293
|
)
|
(7,009
|
)
|
(6,471
|
)
|
||||||||
|
Cost of services revenue adjustment (1)
|
(3,249
|
)
|
(2,241
|
)
|
(4,569
|
)
|
(4,696
|
)
|
||||||||
|
Cost of product revenue adjustment (1)
|
(7
|
)
|
(21
|
)
|
(16
|
)
|
(43
|
)
|
||||||||
|
Non-GAAP cost of revenue
|
$
|
246,942
|
$
|
222,844
|
$
|
490,098
|
$
|
433,866
|
||||||||
|
GAAP gross profit
|
$
|
501,009
|
$
|
485,111
|
$
|
995,808
|
$
|
953,223
|
||||||||
|
Gross profit adjustments
|
34,342
|
18,757
|
65,004
|
39,815
|
||||||||||||
|
Non-GAAP gross profit
|
$
|
535,351
|
$
|
503,868
|
$
|
1,060,812
|
$
|
993,038
|
||||||||
|
GAAP operating expenses
|
$
|
397,009
|
$
|
324,519
|
$
|
765,058
|
$
|
644,462
|
||||||||
|
Research and development (1)
|
(7,852
|
)
|
(3,178
|
)
|
(11,134
|
)
|
(7,871
|
)
|
||||||||
|
Sales and marketing (1)
|
(12,928
|
)
|
(13,258
|
)
|
(23,216
|
)
|
(28,672
|
)
|
||||||||
|
General and administrative (1,2)
|
(29,681
|
)
|
(16,924
|
)
|
(49,266
|
)
|
(36,482
|
)
|
||||||||
|
Amortization of acquired intangible assets
|
(9,153
|
)
|
(6,956
|
)
|
(18,308
|
)
|
(11,649
|
)
|
||||||||
|
Non-GAAP operating expenses
|
$
|
337,395
|
$
|
284,203
|
$
|
663,134
|
$
|
559,788
|
||||||||
|
GAAP financial and other income, net
|
$
|
(3,606
|
)
|
$
|
(14,820
|
)
|
$
|
(22,924
|
)
|
$
|
(30,670
|
)
|
||||
|
Amortization of discount on debt
|
-
|
(428
|
)
|
-
|
(849
|
)
|
||||||||||
|
Amortization of deferred financing costs
|
(275
|
)
|
-
|
(403
|
)
|
-
|
||||||||||
|
Gains on intercompany foreign currency transactions
|
-
|
-
|
17,835
|
-
|
||||||||||||
|
Non-GAAP financial and other income, net
|
$
|
(3,881
|
)
|
$
|
(15,248
|
)
|
$
|
(5,492
|
)
|
$
|
(31,519
|
)
|
||||
|
GAAP taxes on income
|
$
|
24,379
|
$
|
(11,992
|
)
|
$
|
123,633
|
$
|
22,737
|
|||||||
|
Tax adjustments re non-GAAP adjustments
|
16,997
|
56,627
|
(40,984
|
)
|
66,720
|
|||||||||||
|
Non-GAAP taxes on income
|
$
|
41,376
|
$
|
44,635
|
$
|
82,649
|
$
|
89,457
|
||||||||
|
GAAP net income
|
$
|
83,227
|
$
|
187,404
|
$
|
130,041
|
$
|
316,694
|
||||||||
|
Amortization of acquired intangible assets
|
35,621
|
20,158
|
71,718
|
40,254
|
||||||||||||
|
Share-based compensation (1)
|
54,127
|
38,915
|
91,002
|
83,840
|
||||||||||||
|
Acquisition and divestiture related expenses (2)
|
4,208
|
-
|
4,208
|
395
|
||||||||||||
|
Amortization of discount on debt
|
-
|
428
|
-
|
849
|
||||||||||||
|
Amortization of deferred financing costs
|
275
|
-
|
403
|
-
|
||||||||||||
|
Gains on intercompany foreign currency transactions
|
-
|
-
|
(17,835
|
)
|
-
|
|||||||||||
|
Tax adjustments re non-GAAP adjustments
|
(16,997
|
)
|
(56,627
|
)
|
40,984
|
(66,720
|
)
|
|||||||||
|
Non-GAAP net income
|
$
|
160,461
|
$
|
190,278
|
$
|
320,521
|
$
|
375,312
|
||||||||
|
GAAP diluted earnings per share
|
$
|
1.40
|
$
|
2.96
|
$
|
2.17
|
$
|
4.97
|
||||||||
|
Non-GAAP diluted earnings per share
|
$
|
2.70
|
$
|
3.01
|
$
|
5.34
|
$
|
5.88
|
||||||||
|
Shares used in computing GAAP diluted earnings per share
|
59,394
|
63,210
|
59,996
|
63,785
|
||||||||||||
|
Shares used in computing non-GAAP diluted earnings per share
|
59,394
|
63,210
|
59,996
|
63,785
|
||||||||||||
|
NICE LTD. AND SUBSIDIARIES
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)
|
|
|
U.S. dollars in thousands
|
|
(1
|
)
|
Share-based compensation
|
||||||||||||||||
|
Quarter ended
|
Year to date
|
|||||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||||
|
2026
|
2025
|
2026
|
2025
|
|||||||||||||||
|
Cost of cloud revenue
|
$
|
4,618
|
$
|
3,293
|
$
|
7,009
|
$
|
6,471
|
||||||||||
|
Cost of services revenue
|
3,249
|
2,241
|
4,569
|
4,696
|
||||||||||||||
|
Cost of product revenue
|
7
|
21
|
16
|
43
|
||||||||||||||
|
Research and development
|
7,852
|
3,178
|
11,134
|
7,871
|
||||||||||||||
|
Sales and marketing
|
12,928
|
13,258
|
23,216
|
28,672
|
||||||||||||||
|
General and administrative
|
25,473
|
16,924
|
45,058
|
36,087
|
||||||||||||||
|
$
|
54,127
|
$
|
38,915
|
$
|
91,002
|
$
|
83,840
|
|||||||||||
|
(2
|
)
|
Acquisition and divestiture related expenses
|
||||||||||||||||
|
Quarter ended
|
Year to date
|
|||||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||||
|
2026
|
2025
|
2026
|
2025
|
|||||||||||||||
|
General and administrative
|
$
|
4,208
|
$
|
-
|
$
|
4,208
|
$
|
395
|
||||||||||
|
$
|
4,208
|
$
|
-
|
$
|
4,208
|
$
|
395
|
|||||||||||
|
NICE LTD. AND SUBSIDIARIES
|
||
|
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP EBITDA
|
||
|
U.S. dollars in thousands
|
||
|
Quarter ended
|
Year to date
|
|||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
2026
|
2025
|
2026
|
2025
|
|||||||||||||
|
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
|
GAAP net income
|
$
|
83,227
|
$
|
187,404
|
$
|
130,041
|
$
|
316,694
|
||||||||
|
Non-GAAP adjustments:
|
||||||||||||||||
|
Depreciation and amortization
|
62,374
|
44,612
|
124,216
|
88,053
|
||||||||||||
|
Share-based compensation
|
52,668
|
37,310
|
88,060
|
80,647
|
||||||||||||
|
Financial and other income, net
|
(3,606
|
)
|
(14,820
|
)
|
(22,924
|
)
|
(30,670
|
)
|
||||||||
|
Acquisition and divestiture related expenses
|
4,208
|
-
|
4,208
|
395
|
||||||||||||
|
Taxes on income
|
24,379
|
(11,992
|
)
|
123,633
|
22,737
|
|||||||||||
|
Non-GAAP EBITDA
|
$
|
223,250
|
$
|
242,514
|
$
|
447,234
|
$
|
477,856
|
||||||||
|
NICE LTD. AND SUBSIDIARIES
|
|||
|
NON-GAAP RECONCILIATION - FREE CASH FLOW FROM CONTINUING OPERATIONS
|
|||
|
U.S. dollars in thousands
|
|||
|
Quarter ended
|
Year to date
|
|||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
2026
|
2025
|
2026
|
2025
|
|||||||||||||
|
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
|
Net cash provided by operating activities
|
$
|
122,657
|
$
|
61,322
|
$
|
301,903
|
$
|
346,393
|
||||||||
|
Purchase of property and equipment
|
(7,838
|
)
|
(4,579
|
)
|
(17,214
|
)
|
(8,246
|
)
|
||||||||
|
Capitalization of internal use software costs
|
(21,703
|
)
|
(18,137
|
)
|
(42,783
|
)
|
(34,903
|
)
|
||||||||
|
Free Cash Flow (a)
|
$
|
93,116
|
$
|
38,606
|
$
|
241,906
|
$
|
303,244
|
||||||||
| (a) |
Free cash flow from continuing operations is defined as operating cash flows from continuing operations less capital expenditures of the continuing operations and less capitalization of internal use software
costs.
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