Manhattan Associates Reports $272.4 Million Revenue in Q2 2025, Driven by Cloud Subscription Growth

Manhattan Associates, Inc. reported a total revenue of $272.4 million for the second quarter of 2025, reflecting a 3% increase from $265.3 million in the same period of the previous year. The company's cloud subscription revenue was a significant contributor, rising 22% year-over-year to $100.4 million, up from $82.4 million. This growth in cloud subscriptions, which now accounts for 37% of total revenue, underscores the company's strategic focus on cloud-based solutions. However, software license revenue saw a decline of 50%, totaling $1.5 million, while services revenue decreased by 6% to $128.9 million, attributed to customer budget constraints that shifted service work to future periods.

In terms of profitability, Manhattan Associates reported an operating income of $73.8 million for the second quarter, compared to $68.2 million in the prior year, resulting in an operating margin of 27.1%, up from 25.7%. Net income for the quarter was $56.8 million, or $0.93 per diluted share, compared to $52.8 million, or $0.85 per diluted share, in the same quarter of 2024. The increase in operating income and margin was primarily driven by the growth in cloud subscription revenue, which has become a critical component of the company's financial performance.

The company also noted a restructuring expense of approximately $2.9 million in the first half of 2025, related to the elimination of around 100 positions to align its services capacity with customer demand amid macroeconomic uncertainties. This restructuring is part of a broader strategy to optimize operational efficiency. As of June 30, 2025, Manhattan Associates employed approximately 4,480 people globally, a slight decrease from previous periods.

Geographically, the Americas segment generated the majority of revenue, with $206.6 million in the second quarter, while EMEA and APAC contributed $52.3 million and $13.5 million, respectively. The company reported that international revenue accounted for approximately 34% of total revenue, with significant contributions from cloud subscriptions across all regions. The remaining performance obligations (RPO) stood at approximately $2.0 billion, indicating a 26% increase year-over-year, reflecting strong demand for cloud-native subscriptions.

Looking ahead, Manhattan Associates remains cautious about the global economic environment but is optimistic about the continued demand for its cloud solutions. The company plans to invest in innovation and expand its cloud offerings, aiming to enhance its market position in supply chain management and omnichannel commerce solutions. The management emphasized its commitment to driving sustainable long-term growth while navigating the challenges posed by economic volatility.