Earnings release
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NiCE Reports 13% Year-Over-Year Cloud Revenue Growth for the Third Quarter 2025 and Raises Full-Year 2025 Revenue Guidance • AI ARR increased 49% year over year, 43% excluding Cognigy • Completes acquisition of Cognigy, a market leader in conversational and agentic AI • Double-digit year-over-year EPS growth Hoboken, New Jersey, November 13, 2025 - NiCE (NASDAQ: NICE) today announced results for the third quarter ended September 30, 2025, as compared to the corresponding periods of the previous year. Third Quarter 2025 Financial Highlights GAAP Non-GAAP Total revenue was $732.0 million and increased 6% Total revenue was $732.0 million and increased 6% Cloud revenue was $562.9 million and increased 13% Cloud revenue was $562.9 million and increased 13% Operating income was $160.8 million and increased 14% Operating income was $230.9 million and increased 5% Operating margin was 22.0% compared to 20.5% last year Operating margin was 31.5% compared to 32.0% last year Diluted EPS was $2.29 and increased 23% Diluted EPS was $3.18 and increased 10% Net cash provided by operating activities was $190.5 million and increased 20% “We’re pleased to report a strong third quarter, stemming from the continued execution of our AI-first strategy and our outstanding go-to-market performance” said Scott Russell, CEO of NiCE. “Total revenue was $732 million, at the high end of our guidance, with cloud revenue increasing 13% year over year to $563 million. Our cloud revenue growth was fueled by the strong momentum of our CX AI and Self-Service business, whose ARR growth accelerated to 49% year over year, and 43% year over year excluding Cognigy. Our AI capabilities were included in every new seven-figure CX deal, underscoring the expansion of our AI-powered, enterprise-grade solutions. Mr. Russell continued, “Our AI momentum continues to accelerate, with sustained organic performance amplified by the integration of Cognigy. Together with CXone, we’re redefining what’s possible in customer experience — bringing AI, contextual engagement data, and automation together in a unified real-time platform that drives meaningful business outcomes. The strength of our strategy, combined with the pace of our innovation and execution, positions N iCE at the forefront of the industry’s AI transformation.”
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GAAP Financial Highlights for the Third Quarter Ended September 30: Revenues: Third quarter 2025 total revenues increased 6% year over year to $732.0 million compared to $690.0 million for the third quarter of 2024. Gross Profit: Third quarter 2025 gross profit was $489.1 million compared to $460.3 million for the third quarter of 2024. Third quarter 2025 gross margin was 66.8% compared to 66.7% for the third quarter of 2024. Operating Income: Third quarter 2025 operating income increased 14% to $160.8 million compared to $141.4 million for the third quarter of 2024. Third quarter 2025 operating margin was 22.0% compared to 20.5% for the third quarter of 2024. Net Income: Third quarter 2025 net income increased 20% to $144.9 million compared to $120.9 million for the third quarter of 2024. Third quarter 2025 net income margin was 19.8% compared to 17.5% for the third quarter of 2024. Fully Diluted Earnings Per Share: Third quarter 2025 fully diluted earnings per share increased 23% to $2.29 compared to $1.86 in the third quarter of 2024. Cash Flow and Cash Balance: Third quarter 2025 operating cash flow was $190.5 million and $40.6 million was used for share repurchases. All outstanding debt was fully settled in cash during the quarter, resulting in net cash and investments of $455.9 million. Non-GAAP Financial Highlights for the Third Quarter Ended September 30: Revenues: Third quarter 2025 non-GAAP total revenues increased 6% year over year to $732.0 million compared to $690.0 million for the third quarter of 2024. Gross Profit: Third quarter 2025 non-GAAP gross profit increased to $511.6 million compared to $490.3 million for the third quarter of 2024. Third quarter 2025 non-GAAP gross margin was 69.9% compared to 71.1% for the third quarter of 2024. Operating Income: Third quarter 2025 non-GAAP operating income increased 5% to $230.9 million compared to $220.8 million for the third quarter of 2024. Third quarter 2025 non-GAAP operating margin was 31.5% compared to 32.0% for the third quarter of 2024. Net Income: Third quarter 2025 non-GAAP net income increased 7% to $200.8 million compared to $186.9 million for the third quarter of 2024. Third quarter 2025 non-GAAP net income margin totaled 27.4% compared to 27.1% for the third quarter of 2024. Fully Diluted Earnings Per Share: Third quarter 2025 non-GAAP fully diluted earnings per share increased 10% to $3.18 compared to $2.88 for the third quarter of 2024. Full-Year 2025 Guidance*: The Company is raising its full-year 2025 non-GAAP total revenues to be in an expected range of $2,932 million to $2,946 million, representing 7% year over year growth at the midpoint compared to full-year 2024. The Company is updating full-year 2025 non-GAAP fully diluted earnings per share to be in a range of $12.18 to $12.32, representing 10% year over year growth at the midpoint compared to full-year 2024. *The updated guidance includes the expected results of Cognigy from the date of acquisition through year end.
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Quarterly Results Conference Call NiCE management will host its earnings conference call today, November 13, 2025, at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the results and the company's outlook. A live webcast and replay will be available on the Investor Relations page of the Company’s website. To access, please register by clicking here: https://www.nice.com/investor-relations/upcoming-event. Explanation of Non-GAAP measures Non-GAAP financial measures are included in this press release. Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude share-based compensation, amortization of acquired intangible assets, acquisition related expenses, amortization of discount on debt and the tax effect of the Non-GAAP adjustments. The Company believes that these Non-GAAP financial measures, used in conjunction with the corresponding GAAP measures, provide investors with useful supplemental information about the ongoing financial performance of our business. Our management regularly uses our supplemental Non-GAAP financial measures internally to understand, manage and evaluate our business and to make financial, strategic and operating decisions. These Non -GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Our Non- GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordanc e with GAAP. These Non-GAAP financial measures may differ materially from the Non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income. The Company provides guidance only on a Non-GAAP basis. A reconciliation of guidance from a GAAP to Non-GAAP basis is not available due to the unpredictability and uncertainty associated with future events that would be reported in GAAP results and would require adjustments between GAAP and Non-GAAP financial measures, including the impact of future possible business acquisitions. Accordingly, a reconciliation of the guidance based on Non-GAAP financial measures to corresponding GAAP financial measures for future periods is not available without unreasonable effort. About NiCE NiCE (NASDAQ: NICE) is transforming the world with AI that puts people first. Our purpose -built AI-powered platforms automate engagements into proactive, safe, intelligent actions, empowering individuals and organizations to innovate and act, from interaction to resolution. Trusted by organizations throughout 150+ countries worldwide, NiCE’s platforms are widely adopted across industries connecting people, systems, and workflows to work smarter at scale, elevating performance across the organization, delivering proven measurable outcomes. Investor Relations Contact Ryan Gilligan, +1-551-417-2531, ir@nice.com, ET Omri Arens, +972 3 763-0127, ir@nice.com, CET Corporate Media Contact Christopher Irwin-Dudek, +1 201 561 4442, media@nice.com, ET Trademark Note: NiCE and the NiCE logo are trademarks or registered trademarks of NICE. All other marks are trademarks of their respective owners. For a full list of NiCE trademarks, please see: http://www.nice.com/nice-trademarks. Forward-Looking Statements This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as “believe”, “expect”, “seek”, “may”, “will”, “intend”, “should”, “project”, “anticipate”, “plan”, and similar expressions. Forward-looking statements are based on the current beliefs, expectations and assumptions of the Company’s management regarding the future of the Company’s business, performance, future plans and strategies, projections, anticipated events and trends, the economic environment, and other future conditions. Examples of forward-looking statements include guidance regarding the Company’s revenue and earnings and the growth of our cloud, analytics and artificial intelligence business. Forward looking statements are inherently subject to significant uncertainties, contingencies, and risks, including, economic, competitive and other factors, which are difficult to predict and many of which are beyond the control of management. The Company cautions that these statements are not guarantees of future performance, and investors should not place undue reliance on them. There are or will be important known and unknown factors and unc ertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These factors, include, but are not limited to, risks associated with changes in economic and business conditions,
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competition, successful execution of the Company’s growth strategy, success and growth of the Company’s cloud Software-as-a-Service business, difficulties in making additional acquisitions or effectively integrating acquired operations, products, technologies and personnel, the Company’s dependency on third-party cloud computing platform providers, hosting facilities and service partners, rapid changes in technology and market requirements, the implementation of AI capabilities in certain products and services; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications, loss of market share , cyber security attacks or other security incidents, privacy concerns and legislation impacting the Company’s business, changes in currency exchange rates and interest rates, the effects of additional tax liabilities resulting from our global operations, the effect of unexpected events or geo-political conditions, including those arising from political instability or armed conflict that may disrupt our business and the global economy, our ability to recruit and retain qualified personnel, the effect of newly enacted or modified laws, regulation or standards on the Company and our products , and various other factors and uncertainties discussed in our filings with the U.S. Securities and Exchange Commission (the “SEC”). You are encouraged to carefully review the section entitled “Risk Factors” in our latest Annual Report on Form 20 -F and our other filings with the SEC for additional information regarding these and other factors and uncertainties that could affect our future performance. The forward-looking statements contained in this press release speak only as of the date hereof, and the Company undertakes no obligation to update or revise them, whether as a result of new information, future developments or otherwise, except as required by law. ###
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NICE LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands September 30, December 31, 2025 2024 Unaudited Audited ASSETS CURRENT ASSETS: Cash and cash equivalents $ 418,052 $ 481,712 Short-term investments 37,840 1,139,996 Trade receivables 714,915 643,985 Prepaid expenses and other current assets 212,159 239,080 Total current assets 1,382,966 2,504,773 LONG-TERM ASSETS: Property and equipment, net 188,373 185,292 Deferred tax assets 222,486 219,232 Other intangible assets, net 624,057 231,346 Operating lease right-of-use assets 76,611 93,083 Goodwill 2,438,371 1,849,668 Prepaid expenses and other long-term assets 218,658 212,512 Total long-term assets 3,768,556 2,791,133 TOTAL ASSETS $ 5,151,522 $ 5,295,906 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 92,114 $ 110,603 Deferred revenues and advances from customers 345,315 299,367 Current maturities of operating leases 12,783 12,554 Debt - 458,791 Accrued expenses and other liabilities 530,024 593,109 Total current liabilities 980,236 1,474,424 LONG-TERM LIABILITIES: Deferred revenues and advances from customers 61,996 66,289 Operating leases 74,071 92,258 Deferred tax liabilities 114,136 1,965 Other long-term liabilities 60,337 57,807 Total long-term liabilities 310,540 218,319 SHAREHOLDERS' EQUITY Nice Ltd's equity 3,860,746 3,589,742 Non-controlling interests - 13,421 Total shareholders' equity 3,860,746 3,603,163 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 5,151,522 $ 5,295,906
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NICE LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME U.S. dollars in thousands (except per share amounts) Quarter ended Year to date September 30, September 30, 2025 2024 2025 2024 Unaudited Unaudited Unaudited Unaudited Revenue: Cloud $ 562,942 $ 500,114 $1,630,087 $ 1,450,213 Services 138,706 149,857 419,389 446,381 Product 30,351 39,992 109,427 117,078 Total revenue 731,999 689,963 2,158,903 2,013,672 Cost of revenue: Cloud 189,661 178,923 555,106 519,603 Services 47,218 44,652 141,715 137,401 Product 6,051 6,111 19,790 20,134 Total cost of revenue 242,930 229,686 716,611 677,138 Gross profit 489,069 460,277 1,442,292 1,336,534 Operating expenses: Research and development, net 90,463 91,500 269,327 265,854 Selling and marketing 161,864 152,778 493,097 465,438 General and administrative 75,968 74,620 210,333 213,600 Total operating expenses 328,295 318,898 972,757 944,892 Operating income 160,774 141,379 469,535 391,642 Financial and other income, net (21,136) (12,280) (51,806) (41,934) Income before tax 181,910 153,659 521,341 433,576 Taxes on income 37,057 32,738 59,794 90,497 Net income $ 144,853 $ 120,921 $ 461,547 $ 343,079 Earnings per share: Basic $ 2.33 $ 1.91 $ 7.38 $ 5.41 Diluted $ 2.29 $ 1.86 $ 7.26 $ 5.22 Weighted average shares outstanding: Basic 62,036 63,397 62,512 63,403 Diluted 63,161 64,838 63,574 65,741
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NICE LTD. AND SUBSIDIARIES CONSOLIDATED CASH FLOW STATEMENTS U.S. dollars in thousands Quarter ended Year to date September 30, September 30, 2025 2024 2025 2024 Unaudited Unaudited Unaudited Unaudited Operating Activities Net income $ 144,853 $ 120,921 $ 461,547 $ 343,079 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 48,918 52,964 136,971 156,244 Share-based compensation 35,834 47,252 116,481 133,882 Amortization of premium and discount and accrued interest on marketable securities 5,838 (3,398) 1,534 (6,726) Deferred taxes, net 15,997 (27,542) (9,297) (38,949) Changes in operating assets and liabilities: Trade Receivables, net (26,621) (41,462) (52,685) (40,032) Prepaid expenses and other current assets 19,681 17,164 33,390 27,665 Operating lease right-of-use assets 2,309 3,273 11,135 9,926 Trade payables 11,596 (2,293) (19,811) 4,646 Accrued expenses and other current liabilities (35,295) 22,149 (144,756) (21,555) Deferred revenue (30,806) (28,094) 19,049 22,187 Realized gain on marketable securities, net (4,463) - (4,463) - Operating lease liabilities (2,643) (2,748) (13,578) (10,524) Amortization of discount on long-term debt 361 430 1,210 1,404 Other 4,941 345 166 1,872 Net cash provided by operating activities 190,500 # 158,961 536,893 # 583,119 Investing Activities Purchase of property and equipment (7,258) (10,419) (15,504) (27,395) Purchase of Investments (14,903) (138,219) (89,044) (575,332) Proceeds from sales of marketable investments 1,064,132 60,125 1,198,906 628,246 Capitalization of internal use software costs (19,663) (16,812) (54,566) (47,986) Payments for business acquisitions, net of cash acquired (826,583) (44,507) (863,049) (44,507) Net cash provided by (used in) investing activities 195,725 (149,832) 176,743 (66,974) Financing Activities Proceeds from issuance of shares upon exercise of options 15 28 1,023 2,340 Purchase of treasury shares (40,551) (86,437) (323,719) (274,040) Dividends paid to noncontrolling interest - - - (2,681) Repayment of debt (460,000) - (460,000) (87,435) Net cash used in financing activities (500,536) # (86,409) (782,696) # (361,816) Effect of exchange rates on cash and cash equivalents (2,087) 4,508 4,199 1,260 Net change in cash, cash equivalents and restricted cash (116,398) (72,772) (64,861) 155,589 Cash, cash equivalents and restricted cash, beginning of period $ 536,569 $ 741,675 $ 485,032 $ 513,314 Cash, cash equivalents and restricted cash, end of period $ 420,171 $ 668,903 $ 420,171 $ 668,903 Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet: Cash and cash equivalents $ 418,052 $ 666,734 $ 418,052 $ 666,734 Restricted cash included in other current assets $ 2,119 $ 2,169 $ 2,119 $ 2,169 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 420,171 $ 668,903 $ 420,171 $ 668,903
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NICE LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP RESULTS U.S. dollars in thousands (except per share amounts) Quarter ended Year to date September 30, September 30, 2025 2024 2025 2024 GAAP revenues $ 731,999 $ 689,963 $ 2,158,903 $ 2,013,672 Non-GAAP revenues $ 731,999 $ 689,963 $ 2,158,903 $ 2,013,672 GAAP cost of revenue $ 242,930 $ 229,686 $ 716,611 $ 677,138 Amortization of acquired intangible assets on cost of cloud (17,177) (24,278) (45,782) (73,778) Amortization of acquired intangible assets on cost of product - - - (410) Cost of cloud revenue adjustment (1,2) (2,910) (3,175) (9,381) (9,029) Cost of services revenue adjustment (1) (2,431) (2,511) (7,127) (7,506) Cost of product revenue adjustment (1) (22) (30) (65) (90) Non-GAAP cost of revenue $ 220,390 $ 199,692 $ 654,256 $ 586,325 GAAP gross profit $ 489,069 $ 460,277 $ 1,442,292 $ 1,336,534 Gross profit adjustments 22,540 29,994 62,355 90,813 Non-GAAP gross profit $ 511,609 $ 490,271 $ 1,504,647 $ 1,427,347 GAAP operating expenses $ 328,295 $ 318,898 $ 972,757 $ 944,892 Research and development (1,2) (4,762) (6,734) (12,633) (22,361) Sales and marketing (1,2) (13,457) (14,944) (42,129) (42,326) General and administrative (1,2) (22,469) (22,154) (58,951) (59,414) Amortization of acquired intangible assets (6,859) (5,613) (18,508) (15,824) Valuation adjustment on acquired deferred commission - 1 - 24 Non-GAAP operating expenses $ 280,748 $ 269,454 $ 840,536 $ 804,991 GAAP financial and other income, net $ (21,136) $ (12,280) $ (51,806) $ (41,934) Amortization of discount on debt (361) (430) (1,210) (1,404) Change in fair value of contingent consideration - (36) - (115) Realized gain on marketable securities, net 4,463 - 4,463 - Non-GAAP financial and other income, net $ (17,034) $ (12,746) $ (48,553) $ (43,453) GAAP taxes on income $ 37,057 $ 32,738 $ 59,794 $ 90,497 Tax adjustments re non-GAAP adjustments 10,043 13,886 76,763 42,665 Non-GAAP taxes on income $ 47,100 $ 46,624 $ 136,557 $ 133,162 GAAP net income $ 144,853 $ 120,921 $ 461,547 $ 343,079 Amortization of acquired intangible assets 24,036 29,891 64,290 90,012 Valuation adjustment on acquired deferred commission - (1) - (24) Share-based compensation (1) 37,380 48,731 121,220 137,997 Acquisition related expenses (2) 8,671 817 9,066 2,729 Amortization of discount on debt 361 430 1,210 1,404 Realized gain on marketable securities, net (4,463) - (4,463) - Change in fair value of contingent consideration - 36 - 115 Tax adjustments re non-GAAP adjustments (10,043) (13,886) (76,763) (42,665) Non-GAAP net income $ 200,795 $ 186,939 $ 576,107 $ 532,647 GAAP diluted earnings per share $ 2.29 $ 1.86 $ 7.26 $ 5.22 Non-GAAP diluted earnings per share $ 3.18 $ 2.88 $ 9.06 $ 8.10 Shares used in computing GAAP diluted earnings per share 63,161 64,838 63,574 65,741 Shares used in computing non-GAAP diluted earnings per share 63,161 64,838 63,574 65,741
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NICE LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued) U.S. dollars in thousands (1) Share-based compensation Quarter ended Year to date September 30, September 30, 2025 2024 2025 2024 Cost of cloud revenue $ 2,910 $ 3,175 $ 9,381 $ 8,967 Cost of services revenue 2,431 2,511 7,127 7,506 Cost of product revenue 22 30 65 90 Research and development 4,762 6,734 12,633 22,031 Sales and marketing 13,447 14,937 42,119 41,676 General and administrative 13,808 21,344 49,895 57,727 $ 37,380 $ 48,731 $ 121,220 $ 137,997 (2) Acquisition related expenses Quarter ended Year to date September 30, September 30, 2025 2024 2025 2024 Cost of cloud revenue $ - $ - $ - $ 62 Research and development - - - 330 Sales and marketing 10 7 10 650 General and administrative 8,661 810 9,056 1,687 $ 8,671 $ 817 $ 9,066 $ 2,729
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NICE LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME TO NON-GAAP EBITDA U.S. dollars in thousands Quarter ended Year to date September 30, September 30, 2025 2024 2025 2024 Unaudited Unaudited Unaudited Unaudited GAAP net income $ 144,853 $ 120,921 $ 461,547 $ 343,079 Non-GAAP adjustments: Depreciation and amortization 48,918 52,964 136,971 156,244 Share-based compensation 35,834 47,252 116,481 133,882 Financial and other income, net (21,136) (12,280) (51,806) (41,934) Acquisition related expenses 8,671 817 9,066 2,729 Valuation adjustment on acquired deferred commission - (1) - (24) Taxes on income 37,057 32,738 59,794 90,497 Non-GAAP EBITDA $ 254,197 $ 242,411 $ 732,053 $ 684,473
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NICE LTD. AND SUBSIDIARIES NON-GAAP RECONCILIATION - FREE CASH FLOW FROM CONTINUING OPERATIONS U.S. dollars in thousands Quarter ended Year to date September 30, September 30, 2025 2024 2025 2024 Unaudited Unaudited Unaudited Unaudited Net cash provided by operating activities $ 190,500 $ 158,961 $ 536,893 $ 583,119 Purchase of property and equipment (7,258) (10,419) (15,504) (27,395) Capitalization of internal use software costs (19,663) (16,812) (54,566) (47,986) Free Cash Flow (a) $ 163,579 $ 131,730 $ 466,823 $ 507,738 (a) Free cash flow from continuing operations is defined as operating cash flows from continuing operations less capital expenditures of the continuing operations and less capitalization of internal use software costs.