Operating margins have compressed significantly to 1.6% in 2026Q2, reflecting the high costs of legacy infrastructure alongside a 1.0% year-over-year revenue contraction.
| Metric | TTM | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 | Jan'13 | Jan'12 | Jan'11 | Jan'10 | Jan'09 | Jan'08 | Jan'07 | Jan'05 | Jan'04 | Jan'03 | Jan'02 |
|---|
| Sales/Revenue | 893.84M | 909.19M | 910.39M | 902.25M | 874.51M | 1.27B | 1.3B | 1.23B | 1.14B | 1.06B | 1.13B | 1.13B | 907.29M | 839.54M | 782.65M | 726.8M | 703.63M | 669.54M | 534.54M | 368.78M | 249.82M | 192.74M | 157.78M | 120.61M |
| Revenue Growth % | -2.32% | -0.13% | 0.9% | 3.17% | -31.34% | -2.3% | 6.01% | 8.33% | 6.88% | -6.03% | 0.16% | 24.37% | 8.07% | 7.27% | 7.68% | 3.29% | 5.09% | 25.26% | 44.95% | 47.62% | 29.61% | 22.16% | 30.81% | - |
| Cost of Goods Sold | 269.28M | 261.14M | 277.11M | 295.07M | 298.57M | 415.59M | 463.77M | 449.21M | 446.79M | 422.63M | 428.91M | 415.15M | 306.42M | 282M | 268.36M | 238.34M | 239.94M | 258.25M | 230.04M | 191.27M | 112.77M | 89.3M | 78.05M | 61.9M |
| COGS % of Revenue | - | 28.72% | 30.44% | 32.7% | 34.14% | 32.63% | 35.57% | 36.53% | 39.36% | 39.79% | 37.95% | 36.79% | 33.77% | 33.59% | 34.29% | 32.79% | 34.1% | 38.57% | 43.04% | 51.87% | 45.14% | 46.33% | 49.47% | 51.32% |
| Gross Profit | 624.56M | 648.05M | 633.27M | 607.18M | 575.94M | 858.11M | 839.87M | 780.53M | 688.44M | 639.48M | 701.36M | 713.29M | 600.87M | 557.54M | 514.29M | 488.45M | 463.7M | 411.29M | 304.5M | 177.51M | 137.05M | 103.44M | 79.72M | 58.71M |
| Gross Margin % | 69.87% | 71.28% | 69.56% | 67.3% | 65.86% | 67.37% | 64.43% | 63.47% | 60.64% | 60.21% | 62.05% | 63.21% | 66.23% | 66.41% | 65.71% | 67.21% | 65.9% | 61.43% | 56.96% | 48.13% | 54.86% | 53.67% | 50.53% | 48.68% |
| Gross Profit Growth % | - | 2.33% | 4.3% | 5.42% | -32.88% | 2.17% | 7.6% | 13.38% | 7.66% | -8.82% | -1.67% | 18.71% | 7.77% | 8.41% | 5.29% | 5.34% | 12.74% | 35.07% | 71.54% | 29.52% | 32.49% | 29.75% | 35.78% | - |
| Operating Expenses | 548.07M | 541.66M | 565.09M | 549.82M | 529.09M | 749.41M | 752.01M | 666.3M | 639.81M | 622.11M | 633.51M | 634.18M | 478.59M | 457.99M | 427.81M | 415.35M | 397.88M | 395.7M | 373.2M | 204.42M | 116.51M | 86.25M | 69.67M | 68.26M |
| OpEx % of Revenue | - | 59.58% | 62.07% | 60.94% | 60.5% | 58.84% | 57.69% | 54.18% | 56.36% | 58.57% | 56.05% | 56.2% | 52.75% | 54.55% | 54.66% | 57.15% | 56.55% | 59.1% | 69.82% | 55.43% | 46.64% | 44.75% | 44.16% | 56.6% |
| Selling, General & Admin | 367.22M | 379.58M | 405.92M | 392.94M | 376.81M | 478.24M | 488.87M | 426.18M | 414.96M | 406.95M | 412.73M | 415.27M | 327.38M | 317.64M | 293.91M | 297.37M | 291.81M | 282.15M | 259.18M | 148.23M | 83.07M | 63.02M | 52.31M | 46.95M |
| SG&A % of Revenue | - | 41.75% | 44.59% | 43.55% | 43.09% | 37.55% | 37.5% | 34.66% | 36.55% | 38.32% | 36.52% | 36.8% | 36.08% | 37.83% | 37.55% | 40.91% | 41.47% | 42.14% | 48.49% | 40.19% | 33.25% | 32.7% | 33.16% | 38.93% |
| Research & Development | 156.96M | 149.31M | 133.8M | 130.64M | 123.29M | 240.17M | 231.68M | 209.11M | 190.64M | 171.07M | 177.65M | 173.75M | 126.54M | 115.91M | 111M | 96.53M | 83.8M | 88.31M | 94.35M | 53.03M | 31.96M | 23.23M | 17.36M | 21.31M |
| R&D % of Revenue | - | 16.42% | 14.7% | 14.48% | 14.1% | 18.86% | 17.77% | 17% | 16.79% | 16.11% | 15.72% | 15.4% | 13.95% | 13.81% | 14.18% | 13.28% | 11.91% | 13.19% | 17.65% | 14.38% | 12.79% | 12.05% | 11% | 17.67% |
| Other Operating Expenses | 4M | 12.77M | 25.37M | 26.24M | 29M | 31M | 31.46M | -3.91M | 5.9M | -6.93M | -12.28M | -9.57M | -20.27M | -1.29M | -974K | 21.46M | 22.27M | 25.25M | 19.67M | 3.16M | 1.48M | 0 | 0 | 0 |
| Operating Income | 76.49M | 106.39M | 72.24M | 57.36M | 46.84M | 56.2M | 87.86M | 114.23M | 48.63M | 17.37M | 67.85M | 79.11M | 122.29M | 99.55M | 86.48M | 73.11M | 65.68M | -15.03M | -114.63M | -47.25M | 17.38M | 17.19M | 10.05M | -9.55M |
| Operating Margin % | 8.56% | 11.7% | 7.94% | 6.36% | 5.36% | 4.41% | 6.74% | 9.29% | 4.28% | 1.64% | 6% | 7.01% | 13.48% | 11.86% | 11.05% | 10.06% | 9.33% | -2.24% | -21.44% | -12.81% | 6.96% | 8.92% | 6.37% | -7.92% |
| Operating Income Growth % | - | 47.26% | 25.95% | 22.44% | -16.65% | -36.03% | -23.09% | 134.91% | 180.03% | -74.41% | -14.23% | -35.31% | 22.84% | 15.12% | 18.29% | 11.31% | 537.1% | 86.89% | -142.59% | -371.82% | 1.13% | 71.02% | 205.27% | - |
| EBITDA | 126.75M | 155.91M | 143.73M | 125.32M | 122.29M | 141.58M | 175.36M | 199.25M | 150.39M | 131.62M | 174.15M | 178.57M | 178.25M | 156.65M | 139.52M | 122.06M | 114.97M | 40.12M | -67.84M | -26.38M | 30.29M | 27.26M | 19.46M | -3.88M |
| EBITDA Margin % | 14.18% | 17.15% | 15.79% | 13.89% | 13.98% | 11.12% | 13.45% | 16.2% | 13.25% | 12.39% | 15.41% | 15.82% | 19.65% | 18.66% | 17.83% | 16.79% | 16.34% | 5.99% | -12.69% | -7.15% | 12.12% | 14.14% | 12.33% | -3.21% |
| EBITDA Growth % | -26.19% | 8.48% | 14.69% | 2.47% | -13.62% | -19.26% | -11.99% | 32.49% | 14.26% | -24.42% | -2.48% | 0.18% | 13.79% | 12.28% | 14.31% | 6.16% | 186.59% | 159.13% | -157.16% | -187.1% | 11.11% | 40.09% | 601.88% | - |
| D&A (Non-Cash Add-back) | 50.25M | 49.53M | 71.48M | 67.96M | 75.45M | 85.38M | 87.5M | 85.01M | 101.76M | 114.26M | 106.3M | 99.46M | 55.97M | 57.1M | 53.04M | 48.95M | 49.29M | 55.14M | 46.79M | 20.87M | 12.9M | 10.07M | 9.41M | 5.67M |
| EBIT | 80.64M | 108.48M | 71.61M | 62.64M | 49.83M | -6.23M | 747K | 115.11M | 54.6M | 11.49M | 57.06M | 58.06M | 93.09M | 98.8M | 78.52M | 68.42M | 49.17M | -21.7M | -132.95M | -39.01M | 20.54M | 17.19M | 10.05M | 221K |
| Net Interest Income | -4.12M | -3.53M | -3.39M | -4.58M | -10.09M | -38.34M | -38.2M | -32.57M | -33.48M | -33.91M | -32.4M | -35.59M | -28.82M | -30.5M | -31.7M | -29.44M | -24.35M | -35.34M | -31.42M | 8.39M | 0 | 0 | 0 | 0 |
| Interest Income | 5.67M | 6.6M | 6.94M | 3.3M | 233K | 1.46M | 2.11M | 4.78M | 2.48M | 1.05M | 1.49M | 1.07M | 963K | 531K | 661K | 454K | 616K | 1.87M | 5.44M | 8.84M | 0 | 0 | 0 | 0 |
| Interest Expense | 9.79M | 10.13M | 10.33M | 7.88M | 10.32M | 39.8M | 40.31M | 37.34M | 35.96M | 34.96M | 33.88M | 36.66M | 29.78M | 31.03M | 32.36M | 29.9M | 24.96M | 37.21M | 36.86M | 444K | 0 | 0 | 0 | 641K |
| Other Income/Expense | -5.63M | -8.04M | -10.97M | -2.59M | -7.34M | -99.22M | -34.55M | -36.47M | -29.73M | -40.84M | -44.67M | -57.71M | -58.97M | -31.79M | -40.32M | -34.58M | -41.47M | -43.88M | -55.19M | -12.54M | 3.62M | 2.67M | 2.27M | -564K |
| Pretax Income | 70.86M | 98.35M | 61.27M | 54.76M | 39.5M | 16.22M | 53.3M | 77.76M | 18.9M | -23.47M | 23.18M | 21.4M | 63.31M | 67.76M | 46.16M | 38.52M | 24.21M | -58.91M | -169.82M | -39.46M | 21M | 19.86M | 12.32M | -10.19M |
| Pretax Margin % | 7.93% | 10.82% | 6.73% | 6.07% | 4.52% | 1.27% | 4.09% | 6.32% | 1.66% | -2.21% | 2.05% | 1.9% | 6.98% | 8.07% | 5.9% | 5.3% | 3.44% | -8.8% | -31.77% | -10.7% | 8.41% | 10.3% | 7.81% | -8.45% |
| Income Tax | 8.32M | 15.25M | 21.64M | 39.1M | 23.85M | 16.33M | 17.62M | 7.54M | 22.35M | 2.77M | 952K | -15M | 4.54M | 8.96M | 5.53M | 9.94M | 7.11M | 19.67M | 27.73M | 141K | 1.93M | 1.92M | 2.17M | 355K |
| Effective Tax Rate % | 11.74% | 15.51% | 35.31% | 71.41% | 60.38% | 100.66% | 33.06% | 9.7% | 118.28% | -11.81% | 4.11% | -70.08% | 7.17% | 13.22% | 11.99% | 25.8% | 29.36% | -33.39% | -16.33% | -0.36% | 9.19% | 9.67% | 17.62% | -3.48% |
| Net Income | 61.43M | 82.27M | 38.61M | 14.9M | 14.41M | -107K | 28.68M | 65.99M | -6.63M | -29.38M | 17.64M | 30.93M | 53.76M | 54M | 36.99M | 25.58M | 15.62M | -80.39M | -198.61M | -40.52M | 19.07M | 17.94M | 10.15M | -10.54M |
| Net Margin % | 6.87% | 9.05% | 4.24% | 1.65% | 1.65% | -0.01% | 2.2% | 5.37% | -0.58% | -2.77% | 1.56% | 2.74% | 5.92% | 6.43% | 4.73% | 3.52% | 2.22% | -12.01% | -37.15% | -10.99% | 7.63% | 9.31% | 6.43% | -8.74% |
| Net Income Growth % | -1.06% | 113.07% | 159.16% | 3.36% | 13570.09% | -100.37% | -56.53% | 1095.79% | 77.44% | -266.57% | -42.98% | -42.46% | -0.45% | 45.98% | 44.61% | 63.8% | 119.43% | 59.52% | -390.16% | -312.45% | 6.32% | 76.78% | 196.23% | - |
| Net Income (Continuing) | 62.54M | 83.1M | 39.63M | 15.66M | 15.65M | -48.6M | 35.68M | 70.22M | -3.45M | -26.25M | 22.23M | 36.4M | 58.78M | 58.8M | 40.63M | 28.59M | 17.1M | -78.58M | -197.54M | -39.6M | 19.07M | 17.94M | 10.15M | -4.65M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 2.78M | 2.42M | 2.62M | 2.36M | 2.38M | 15.13M | 13.07M | 11.57M | 11.74M | 8.46M | 8.03M | 7.05M | 6.14M | 4.87M | 2.87M | 1.28M | 199K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.02 | 1.04 | 0.28 | 0.23 | 0.22 | -0.00 | 0.43 | 1.00 | -0.10 | -0.47 | 0.28 | 0.52 | 0.99 | 0.96 | 0.56 | 0.31 | 0.06 | -2.48 | -6.16 | -1.26 | 0.58 | 0.61 | 0.43 | -0.57 |
| EPS Growth % | -12.73% | 271.43% | 21.74% | 4.55% | - | -100.37% | -57% | 1100% | 78.72% | -267.86% | -46.15% | -47.47% | 3.13% | 71.43% | 80.65% | 416.67% | 102.42% | 59.74% | -388.89% | -317.24% | -4.92% | 41.86% | 175.44% | - |
| EPS (Basic) | - | 1.05 | 0.28 | 0.23 | 0.22 | -0.00 | 0.43 | 1.02 | -0.10 | -0.47 | 0.29 | 0.53 | 1.01 | 0.97 | 0.58 | 0.33 | 0.06 | -2.48 | -6.16 | -1.26 | 0.62 | 0.65 | 0.46 | -0.57 |
| Diluted Shares Outstanding | 60.31M | 62.76M | 64.32M | 65.33M | 65.59M | 65.17M | 67.36M | 66.25M | 63.31M | 62.59M | 62.92M | 59.37M | 53.88M | 40.31M | 39.5M | 37.18M | 33.13M | 32.39M | 32.22M | 32.16M | 32.63M | 29.41M | 23.6M | 18.6M |
| Basic Shares Outstanding | 60.31M | 62.15M | 63.99M | 65.33M | 65.59M | 65.17M | 66.13M | 64.91M | 63.31M | 62.51M | 61.81M | 58.1M | 52.97M | 39.75M | 38.42M | 34.54M | 32.48M | 32.39M | 32.22M | 32.16M | 30.89M | 27.6M | 22.06M | 18.6M |
| Dividend Payout Ratio | - | 24.41% | - | - | - | - | 19.13% | - | - | - | - | - | - | - | 5.22% | 8.57% | 26.54% | - | - | - | - | - | - | - |
Stagnant Cloud Transition Momentum
As reported in recent financial filings, Verint's revenue growth has stalled, with the most recent quarter showing a 1.0% year-over-year decline, suggesting that the company's transition to a cloud-based model is currently failing to generate net new expansion beyond replacing legacy maintenance revenue streams.
The persistent inability to achieve positive top-line growth indicates that the company's core offerings may be facing significant competitive pressure or market saturation. Investors should monitor whether the shift toward consumption-based AI pricing can eventually offset the ongoing erosion of the legacy perpetual license base.
Based on the provided income statement data, Verint's operating margin has compressed to 1.6% in 2026Q2, a sharp decline from the 21.2% peak observed in 2024Q4, reflecting the high costs associated with maintaining legacy infrastructure while simultaneously attempting to scale modern cloud-native solutions.
The volatility in operating margins suggests that the company lacks the operating leverage typically associated with pure-play SaaS models. This margin instability warrants further investigation into whether the current cost structure is permanently burdened by the need to support disparate, older software architectures.
According to quarterly income statements, Verint continues to carry a heavy SG&A burden, which reached $94.5 million in 2026Q2, consistently consuming a large portion of gross profit and leaving minimal room for bottom-line expansion during periods of stagnant revenue growth.
The company's expense discipline appears insufficient to protect profitability during the transition phase, as SG&A costs remain stubbornly high relative to revenue. This cost structure implies that management may be struggling to achieve the necessary efficiencies to offset the revenue headwinds inherent in their business model shift.
As evidenced by the income statement, Verint consistently records significant stock-based compensation expenses, averaging approximately $18 million per quarter, which frequently exceeds the reported operating income and significantly obscures the true economic profitability of the underlying business operations for shareholders.
The reliance on equity-based incentives appears to be a structural feature that masks the company's limited ability to generate GAAP-positive earnings. Analysts should be wary of the impact these recurring non-cash charges have on the quality of reported EPS, as they represent a persistent drag on shareholder value.
While management emphasizes the stickiness of their open platform, the recent financial data suggests that Verint is losing ground to cloud-native competitors, as evidenced by the 1.0% revenue contraction and the inability to maintain consistent operating margins above the low single-digit range.
Short-term performance metrics suggest that the 'open platform' strategy may be a defensive posture rather than a growth catalyst. Investors should consider the risk that Verint's specialized integrations are becoming less relevant as enterprise customers increasingly favor unified, all-in-one cloud contact center platforms.
Quick answers to the most common questions about buying VRNT stock.
For fiscal year 2025, Verint Systems Inc. (VRNT) reported total revenue of $909.2M. This represents a 653.8% increase compared to $120.6M in 2002.
Verint Systems Inc. (VRNT) is profitable, generating $82.3M in net income for the fiscal year ending 2025 with a net profit margin of 9.0%.
Verint Systems Inc. (VRNT) reported an operating income of $106.4M, resulting in an operating profit margin of 11.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Verint Systems Inc. (VRNT) generated $648.0M in gross profit for the year, representing a gross profit margin of 71.3%. This demonstrates the company's core pricing power and production efficiency.