How did Cognyte Software's revenue and expenses trend in Q3 2025?

**Cognyte Software's Revenue and Expenses Trends in Q3 2025**: 1. **Revenue Growth**: Cognyte Software experienced a notable increase in revenue during Q3 2025, with a 12% year-over-year growth, reaching $89.0 million. This growth was primarily driven by software revenue, which saw a 7.6% increase year-over-year, totaling $30 million. Software services revenue also contributed significantly, growing by 10% year-over-year, amounting to $45.3 million. The company's total software revenue, including software and software services, reached $75.3 million, an increase of $3.7 million compared to the previous year. Approximately 40% of this total growth came from incremental subscription revenue, highlighting the strength of the company's recurring revenue model. 2. **Adjusted EBITDA and Net Income**: The company's adjusted EBITDA increased by approximately 42% year-over-year, reaching $6.6 million. Non-GAAP operating income also improved significantly, with a 180% increase year-over-year, totaling $3.4 million. This improvement in profitability was driven by the company's strategic focus on cost management, as evidenced by the fact that non-GAAP operating expenses remained stable at $59 million. 3. **Cash Flow and Balance Sheet**: Cognyte Software maintained a strong balance sheet with $107.3 million in cash, cash equivalents, and short-term investments as of October 31, 2024. The company's operating cash flow was positive, providing net cash of $12.3 million during the three months ended October 31, 2024, and $28.1 million over the nine months ended the same date. This robust cash flow and positive net income position the company well for continued investment in growth initiatives and returning value to shareholders. In conclusion, Cognyte Software demonstrated robust growth in revenue and profitability during Q3 2025, driven by strategic investments in product development and customer expansion. The company's focus on leveraging its financial model and cost management initiatives contributed to significant improvements in adjusted EBITDA and net income, underscoring its ability to scale efficiently while maintaining strong financial performance.