Verint Systems: High Operating Costs Undercut AI Growth Momentum Amid Pending Acquisition

Verint Systems, a leader in AI-powered customer experience (CX) automation, faces a critical juncture as its high operating costs threaten to undermine its AI growth momentum. Despite a 21.2% year-over-year increase in AI Annual Recurring Revenue (ARR) to $372 million—accounting for 50% of total ARR—the company’s financial performance in Q2 2026 revealed significant margin pressures. Non-GAAP operating margins fell to 14.0%, down from 21.1% in the same period in 2024, driven by rising R&D expenses (17.3% of revenue) and SG&A costs ($59.7 million) [1]. This divergence between AI-driven revenue growth and profitability underscores the broader challenges SaaS companies face in scaling AI adoption while maintaining cost efficiency.

The pending $2 billion acquisition by Thoma Bravo, a private equity firm with a track record of optimizing SaaS businesses, is positioned as a strategic lifeline. By merging Verint with Calabrio, another Thoma Bravo portfolio company, the combined entity aims to create a unified AI-native CX platform, leveraging cross-portfolio synergies to streamline operations and accelerate cloud migration [2]. Thoma Bravo’s expertise in SaaS cost optimization could address Verint’s inefficiencies, particularly in reducing redundant R&D spending and consolidating legacy systems. However, the acquisition also raises questions about whether the integration of two complex AI-driven platforms can deliver the promised cost savings without disrupting customer retention or innovation pipelines.

Industry-wide data on SaaS AI adoption further contextualizes Verint’s challenges. The transition to AI-native models requires significant upfront investment in compute infrastructure, data integration, and talent, with 42% of business leaders citing insufficient proprietary data as a barrier to effective AI training [3]. For SaaS companies, the average cost of AI implementation includes not only infrastructure but also the operational overhead of managing fragmented SaaS portfolios—Verint’s own struggles with declining non-AI subscription ARR (-5.6% YoY) reflect the difficulty of phasing out legacy revenue streams while scaling AI-focused offerings [1].

The acquisition’s success hinges on Thoma Bravo’s ability to address these systemic inefficiencies. By consolidating Verint’s product lines and leveraging Calabrio’s cloud-native capabilities, the combined entity could reduce redundant costs and accelerate AI-driven automation. For example, AI-powered marketing optimization—already shown to reduce customer acquisition costs by 37% in other SaaS sectors [4]—could be deployed to enhance Verint’s go-to-market strategy, offsetting the high R&D expenses. However, the integration of AI into legacy systems remains a complex challenge, with 69% of SaaS companies reporting increased operational costs during AI implementation [5].

Investors must weigh the acquisition’s potential to unlock value against the risks of integration delays and regulatory scrutiny. While Thoma Bravo’s 18% premium on Verint’s share price signals confidence in its AI roadmap [2], the company’s recent financial guidance suspension highlights the uncertainty surrounding its post-acquisition strategy. For Verint to capitalize on its AI growth, the acquisition must deliver tangible cost efficiencies—particularly in R&D and operations—while maintaining the agility needed to compete with larger players like Salesforce and Genesys [6].

In the broader SaaS landscape, Verint’s case exemplifies the dual-edged nature of AI adoption: while AI-driven ARR growth is a powerful differentiator, the associated costs can erode profitability if not managed strategically. As private equity firms increasingly target AI-native SaaS platforms, the pressure to balance innovation with cost discipline will intensify. For Verint, the path forward depends on whether Thoma Bravo can transform its operating model to align with the realities of an AI-first world.

Source:
[1] Verint Announces Q2 Results [https://www.businesswire.com/news/home/20250902669493/en/Verint-Announces-Q2-Results]
[2] Thoma Bravo to Acquire Verint to Join Forces with Calabrio [https://www.thomabravo.com/press-releases/thoma-bravo-to-acquire-verint-to-join-forces-with-calabrio-to-create-an-ai-driven-customer-experience-powerhouse]
[3] The 7 Biggest AI Adoption Challenges for 2025 [https://www.stack-ai.com/blog/the-biggest-ai-adoption-challenges]
[4] How AI Marketing Optimization Reduces Customer Acquisition Costs [https://www.singlegrain.com/customer-acquisition/how-ai-marketing-optimization-reduces-customer-acquisition-costs-in-2025/]
[5] AI Adoption Among Private SaaS Companies [https://www.saas-capital.com/blog-posts/ai-adoption-among-private-saas-companies-and-its-impacts-on-spending-and-profitability/]
[6] Thoma Bravo, Verint, and the New Shape of AI-Driven CX [https://customerland.net/thoma-bravo-verint-and-the-new-shape-of-ai-driven-cx/]