Verint Systems Reports $208M Revenue, Announces $2B Merger with Thoma Bravo

Verint Systems Inc. reported a total revenue of $208.0 million for the three months ended July 31, 2025, a slight decrease from $210.2 million in the same period last year. The company's recurring revenue, which includes software as a service (SaaS) offerings, accounted for $165.5 million, reflecting a marginal increase of 1% year-over-year. However, nonrecurring revenue categories, including perpetual licenses and professional services, saw declines, contributing to an overall revenue drop. For the six months ended July 31, 2025, total revenue was $416.1 million, down from $431.4 million in the prior year, primarily due to decreases in nonrecurring revenue streams.

The company's operating income also experienced a significant decline, falling to $3.3 million in the latest quarter from $13.9 million a year earlier. This decrease was attributed to a $4.9 million drop in gross profit and a $5.7 million increase in operating expenses. Net loss attributable to Verint Systems Inc. common shares was reported at $5.7 million, compared to a net income of $1.5 million in the prior year, resulting in a diluted net loss per share of $0.09.

In terms of strategic developments, Verint announced a merger agreement on August 24, 2025, with Thoma Bravo, a private equity firm, for an all-cash transaction valued at approximately $2 billion. If completed, shareholders will receive $20.50 per share. The merger is expected to close before the end of the current fiscal year, pending stockholder and regulatory approvals. This acquisition aligns with Verint's ongoing strategy to enhance its customer experience automation capabilities.

Operationally, Verint's customer base includes over 80 of the Fortune 100 companies, and the company employed approximately 3,700 employees as of July 31, 2025. The firm continues to focus on expanding its SaaS offerings, which represented about 80% of its revenue. The company also reported a Subscription Annual Recurring Revenue (ARR) of $728.5 million, a 6% increase from the previous year, indicating a positive trend in subscription-based revenue despite the overall revenue decline.

Looking ahead, Verint's management expressed cautious optimism regarding future performance, emphasizing the importance of adapting to macroeconomic conditions and customer spending behaviors. The company remains focused on leveraging its AI-powered solutions to meet rising customer expectations and navigate the challenges posed by a changing workforce and economic landscape.