10-K · May 11, 2026
Commvault reported a strong fiscal year with a total revenue of $1,183.7 million, up 19% YoY, driven by subscription growth in SaaS and term licenses. The company has successfully transitioned to a subscription-based…
Earnings analysis · 10-Q
CVLT earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
Commvault delivered $314.1 million of revenue, up 11% year over year, with subscription revenue up 16% and SaaS revenue up 39%; subscription ARR reached $1.0543 billion. Gross margin was broadly stable at 81.7% and…
Read full summary
Commvault delivered $314.1 million of revenue, up 11% year over year, with subscription revenue up 16% and SaaS revenue up 39%; subscription ARR reached $1.0543 billion. Gross margin was broadly stable at 81.7% and operating margin recovered to 8.9% from 5.2% in the prior quarter, while operating cash flow rose to $51.7 million. The balance sheet is liquid with $929.8 million of cash, but investors should weigh elevated operating expenses, $900.0 million of convertible notes, and substantial channel concentration. GAAP diluted EPS was not included in the supplied 10-Q text, so it is reported as null.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Revenue growth was led by subscriptions
Revenue was $314.1 million, up $32.2 million or 11% from $282.0 million a year earlier and approximately $2.1 million above the immediately preceding quarter's $312 million. Subscription revenue rose 16% to $267.0 million and reached 85% of total revenue, versus 81% a year ago.
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Recurring cloud metrics remain strong
SaaS revenue increased 39% to $100.6 million, while SaaS ARR grew 38% to $424.3 million. Total subscription ARR increased 22% to $1.0543 billion, with subscription NRR holding at 114%.
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SaaS economics improved despite flat gross margin
Gross margin was 81.7%, about 30 basis points above the prior quarter's 81.4% but about 30 basis points below the prior-year 82.0%. SaaS gross margin improved to 70.5% from 64.1%, aided by infrastructure/product optimization and better hyperscaler economics.
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Operating margin and cash conversion improved
Operating margin was 8.9%, up 370 basis points from the prior quarter's 5.2% and level with the prior-year 8.9%. Operating cash flow increased 63% to $51.7 million from $31.7 million.
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Liquidity remains ample
Cash and cash equivalents ended at $929.8 million, up $29.8 million during the quarter. The company had no revolver borrowings and repurchased $10.1 million of stock, leaving $239.9 million under its authorization.
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Low capex supports free-cash-flow conversion
Estimated free cash flow was $51.1 million, calculated as $51.7 million of operating cash flow less $0.6 million of capital expenditures. Capex represented roughly 0.2% of $314.1 million revenue.
What to watch
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Expense growth and restructuring pressure margins
Operating-cost investment and restructuring remain a profitability risk: sales and marketing expense rose $17.3 million (14%), general and administrative expense increased $5.5 million (13%), and restructuring expense was $2.4 million. The restructuring plan's remaining activities are anticipated to be completed in fiscal 2027.
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High dependence on distribution partners
Channel concentration is material: Partner A represented approximately 32% of revenue and Partner B represented approximately 11%, while indirect channels represented approximately 90% of total revenue. A reduction in either partner's sales activity could affect results.
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Convertible-note conversion creates cash-call risk
The company had $900.0 million of zero-coupon convertible notes outstanding, maturing September 15, 2030. Although cash was $929.8 million, conversion consideration up to note principal must be paid in cash and its timing depends partly on conversion activity and the share price.
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No formal risk updates; foreign exchange remains relevant
No material risk-factor changes were reported versus the fiscal 2026 10-K. However, 45% of quarterly sales were outside the U.S.; using prior-year average exchange rates, current-quarter revenue would have been $2.4 million lower, underscoring ongoing FX sensitivity.
Management's outlook
The 10-Q MD&A provides no new quantitative revenue, EPS, or margin outlook. Management states that existing cash and cash flows from operations are sufficient to meet cash requirements for at least the next 12 months; quantitative guidance was deferred to the separately issued earnings release/call.
Earlier filings 4
10-Q · January 28, 2026
Commvault reported quarterly revenue of $313,832,000 and GAAP diluted EPS of $0.40 for the three months ended December 31, 2025, with revenue up versus the prior year and operating income improving. Gross margin…
10-Q · October 29, 2025
Commvault delivered stronger-than-expected performance in Q2 FY2026 with revenue of $276M, surpassing estimates by 1.03%. Diluted EPS came in at $0.91, outperforming expectations of $0.73, marking a significant 15%…
10-K · May 5, 2025
Commvault positions itself as a cyber-resilience platform serving on‑premises, hybrid and multi‑cloud environments via Commvault Cloud (Operational Recovery, Autonomous Recovery and Cyber Recovery) and complementary…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.