Commvault announced its third quarter fiscal 2026 financial results, providing updated financial performance data and business commentary.

• Commvault announced third quarter fiscal 2026 financial results, reporting revenues of $276.2 million and net income of $14.7 million for the quarter ended September 30, 2025 [N1][S2].
• The company highlighted strong liquidity with cash and equivalents of approximately $1.06 billion and a current ratio of 2.53 as of September 30, 2025 [S2].
• Operating expenses increased, including a 20% rise in sales and marketing expenses driven by higher employee compensation, commissions, and marketing initiatives [S2].

Commvault’s broad product portfolio and multi-environment deployment options position it well to capture demand for cyber resiliency solutions amid rising cyber threats. The significant portion of revenue from subscription arrangements supports recurring revenue streams and customer stickiness. Strong liquidity and positive net income reported in recent quarters indicate financial stability. Increased investment in sales and marketing may drive further revenue growth and market penetration. The company’s ability to innovate and expand SaaS offerings could enhance its competitive positioning.

The company operates in a highly competitive software market with pricing pressures that may impact margins. Increased operating expenses, including sales and marketing costs, could pressure profitability if not matched by revenue growth. Dependence on subscription renewals and customer retention is critical; any slowdown in renewals or customer churn could affect revenues. The evolving cyber threat landscape requires continuous innovation and investment, which may strain resources. Economic or market downturns could reduce IT spending, impacting demand for Commvault’s solutions.

Commvault’s moat is based on its comprehensive cyber resiliency platform that integrates data protection and recovery across multiple environments, including on-premise and cloud. Its diversified delivery models (self-managed software, SaaS, appliances, and partner-managed services) provide flexibility to customers. The company’s subscription-based revenue model fosters recurring income and customer retention. Its focus on cyber threat protection, including ransomware defense, addresses a critical and growing market need, supporting customer reliance on its solutions. However, the software application market is competitive with ongoing pricing pressures and innovation demands.

• Competitive Pressure: The software application market is competitive with many players offering data protection and cyber resiliency solutions, which may lead to pricing pressure and margin compression.
• Customer Retention and Renewal Risk: A significant portion of revenue comes from subscription arrangements; failure to retain customers or renew contracts could adversely affect revenues.
• Technology and Innovation Risk: Rapid changes in cyber threats and technology require ongoing innovation; failure to keep pace could reduce market relevance.
• Economic and Market Conditions: Economic downturns or reduced IT budgets could negatively impact customer spending on data protection and cyber resiliency solutions.

• Commvault Systems, Inc. provides cyber resiliency solutions focused on protecting and recovering data and cloud-native applications across on-premise, hybrid, and multi-cloud environments.
• The company offers products and services delivered via self-managed software, software-as-a-service (SaaS), integrated appliances, or managed by partners.
• Revenue sources include subscription arrangements (term-based software licenses and SaaS), perpetual software licenses, customer support contracts, and other services.
• Subscription arrangements represent a significant portion of total revenues and are economically and contractually similar whether deployed on-premise or via hosted cloud SaaS solutions.
• As of September 30, 2025, Commvault reported cash and cash equivalents of approximately $1.06 billion and current assets of about $1.35 billion, with current liabilities of approximately $535 million, resulting in a current ratio of 2.53 and a cash ratio of 1.99, indicating strong liquidity.
• For the quarter ended September 30, 2025, the company reported revenues of $276.2 million, net income of $14.7 million, and basic and diluted earnings per share of $0.33.
• The company’s subscription arrangement terms and customer support arrangement terms are typically one year in duration.
• Commvault is listed on The Nasdaq Stock Market under the ticker CVLT.
• The company’s management evaluated and concluded that disclosure controls and procedures were effective as of September 30, 2025.
• Operating expenses have increased, including sales and marketing expenses driven by higher employee compensation, commissions, and marketing initiatives.
• The company faces a competitive environment with pricing pressures and differentiation challenges in the software application sector.