Verint Systems reported QQ2 2026 revenue of $208.0 million, essentially flat year-over-year (YoY) and down a hair quarter-over-quarter (QoQ) at -0.04%. Gross profit reached $140.6 million for a gross margin of 67.6%. Operating income was modest at $3.3 million (1.6% margin), while net income was negative at -$1.69 million and earnings per share (EPS) came in at -$0.094. The company generated operating cash flow of $19.1 million and free cash flow of $19.1 million, underpinning liquidity despite a negative quarterly net income. Verint ends the quarter with cash of about $174.97 million and total debt of roughly $443.99 million, resulting in net debt of approximately $269.02 million. The balance sheet remains solid in absolute terms, but leverage is a material consideration going forward. Overhang from a high goodwill balance and ongoing investments in R&D and go-to-market activities appear to be weighing on near-term profitability even as gross margins remain robust.
Management’s commentary on the QQ2 call (where available in the dataset) is not included in the provided materials. Inference suggests continued emphasis on cloud-native offerings and AI-enabled capabilities, along with disciplined cost management to support long-term profitability. The company’s free cash flow generation and cash position provide a cushion while it executes its strategic transition. Investors should monitor margin progression, working capital dynamics, and the pace of cloud-transition-related investments as catalysts for a potential improvement in profitability.