Manhattan Associates, Inc. reported a total revenue of $275.8 million for the third quarter of 2025, marking a 3% increase from $266.7 million in the same period last year. For the nine months ended September 30, 2025, the company generated $811.0 million in revenue, up from $786.6 million in the prior year. The growth was primarily driven by a 21% increase in cloud subscription revenue, which reached $104.9 million for the quarter and $299.6 million for the nine-month period. However, software license revenue saw a significant decline, dropping to $1.4 million in Q3 2025 from $3.8 million in Q3 2024, and maintenance revenue also decreased by 12% year-over-year.
In terms of profitability, Manhattan Associates reported an operating income of $75.8 million for the third quarter, slightly up from $75.1 million in the previous year. The operating margin decreased to 27.5% from 28.2%, attributed to increased equity-based compensation expenses. Net income for the quarter was $58.6 million, down from $63.8 million in Q3 2024, resulting in diluted earnings per share of $0.96 compared to $1.03 a year earlier. For the nine-month period, net income totaled $168.0 million, a slight decrease from $170.3 million in the same timeframe last year.
The company has made strategic investments in its cloud business, with a focus on expanding its Manhattan Active Suite of Cloud Solutions. The adoption of these cloud solutions has been strong, with cloud revenue now representing approximately 96% of total software revenue. The company also reported a significant increase in remaining performance obligations (RPO), which rose to approximately $2.1 billion, reflecting a 23% increase year-over-year, indicating a solid backlog of future business.
Operationally, Manhattan Associates employed around 4,400 individuals globally as of September 30, 2025, with a notable restructuring expense of $2.9 million recorded in the nine months ended September 30, 2025, due to the elimination of approximately 100 positions to align services capacity with customer demand. The company continues to focus on enhancing its research and development efforts, with R&D expenses totaling $36.4 million for the third quarter, up from $34.3 million in the prior year.
Looking ahead, Manhattan Associates remains cautious about the global economic environment, which may impact customer spending and decision-making. The company plans to continue investing in innovation and expanding its cloud offerings while prioritizing employee and customer success. Despite the challenges, the firm is optimistic about its growth trajectory, driven by the ongoing digital transformation in supply chain management and the increasing demand for its cloud solutions.
About MANHATTAN ASSOCIATES INC
Manhattan Associates provides supply chain, omnichannel commerce, and inventory management software solutions. Its cloud-based applications optimize distribution, transportation, order fulfillment, and customer engagement for retailers, manufacturers, and logistics providers. The company’s platform offers innovative, scalable, and integrated technology designed to enhance operational efficiency, customer experience, and supply chain agility across global markets. It supports enterprise digital transformation through continuous innovation and industry expertise.
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