# AvePoint, Inc. (AVPT) Informational only - not investment advice. CIK: 0001777921 SIC: 7372 Services-Prepackaged Software SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7372 Services-Prepackaged Software](/industry/7372/) Latest 10-K filed: 2026-02-26 SEC page: https://www.sec.gov/edgar/browse/?CIK=1777921 Filing source: https://www.sec.gov/Archives/edgar/data/1777921/000143774926005907/avpt20251231_10k.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-26 · accession 0001437749-26-005907 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001777921.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 419,497,000 USD | 2025 | verified | | Net income | 34,799,000 USD | 2025 | verified | | Assets | 789,181,000 USD | 2025 | verified | | Free cash flow | 81,574,000 USD | 2025 | computed | | Net margin | 8.30% | 2025 | computed | | Operating margin | 7.87% | 2025 | computed | | Revenue YoY | +26.93% | 2025 | computed | | ROE | 7.27% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | AVPT | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 8.3% | 1.5% | 65 | 122 | | Operating margin | 7.9% | 1.3% | 66 | 121 | | Revenue growth | 26.9% | 13.5% | 85 | 124 | | FCF margin | 19.4% | 19.3% | 50 | 120 | | ROE | 7.3% | 2.0% | 60 | 112 | | ROA | 4.4% | 0.9% | 66 | 124 | | Liabilities / equity | 0.65 | 0.91 | 31 | 113 | | Current ratio | 2.28 | 1.57 | 76 | 124 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7372 Services-Prepackaged Software, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 419497000 | USD | 2025 | 2026-02-26 | | Net income | 34799000 | USD | 2025 | 2026-02-26 | | Assets | 789181000 | USD | 2025 | 2026-02-26 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001777921.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 116,099,000 | 151,533,000 | 191,909,000 | 232,339,000 | 271,825,000 | 330,482,000 | 419,497,000 | | Net income | -20,174,000 | -16,996,000 | -35,219,000 | -41,630,000 | -21,725,000 | -29,090,000 | 34,799,000 | | Operating income | -19,012,000 | -15,437,000 | -53,491,000 | -41,066,000 | -15,351,000 | 7,166,000 | 33,035,000 | | Gross profit | 79,700,000 | 111,243,000 | 138,908,000 | 166,063,000 | 194,365,000 | 247,956,000 | 310,696,000 | | Diluted EPS | -1.72 | -0.57 | -0.48 | | -0.12 | -0.16 | 0.15 | | Operating cash flow | -2,051,000 | 19,120,000 | 5,030,000 | -774,000 | 34,694,000 | 88,894,000 | 85,257,000 | | Capital expenditures | 1,083,000 | 1,023,000 | 2,461,000 | 3,853,000 | 2,087,000 | 3,044,000 | 3,683,000 | | Share buybacks | 0.00 | 0.00 | 1,628,000 | 19,927,000 | 39,036,000 | 33,053,000 | 49,750,000 | | Assets | 352,987,612 | 169,054,000 | 388,738,000 | 415,533,000 | 442,582,000 | 519,055,000 | 789,181,000 | | Liabilities | 34,715,394 | 148,867,000 | 133,173,000 | 172,379,000 | 217,738,000 | 248,107,000 | 310,482,000 | | Stockholders' equity | | | | 229,147,000 | 218,806,000 | 270,948,000 | 478,699,000 | | Cash and cash equivalents | 994,810 | 69,112,000 | 268,217,000 | 227,188,000 | 223,162,000 | 290,735,000 | 481,060,000 | | Free cash flow | -3,134,000 | 18,097,000 | 2,569,000 | -4,627,000 | 32,607,000 | 85,850,000 | 81,574,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | -17.38% | -11.22% | -18.35% | -17.92% | -7.99% | -8.80% | 8.30% | | Operating margin | -16.38% | -10.19% | -27.87% | -17.68% | -5.65% | 2.17% | 7.87% | | Return on equity | | | | -18.17% | -9.93% | -10.74% | 7.27% | | Return on assets | -5.72% | -10.05% | -9.06% | -10.02% | -4.91% | -5.60% | 4.41% | | Liabilities / equity | | | | 0.75 | 1.00 | 0.92 | 0.65 | | Current ratio | 1.91 | 1.31 | 3.01 | 2.15 | 1.84 | 1.77 | 2.28 | ## As-reported value updates 7 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/AVPT/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001777921.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2021-Q3 | 2021-09-30 | | | -0.05 | reported discrete quarter | | 2022-Q1 | 2022-03-31 | | -11,670,000 | -0.06 | reported discrete quarter | | 2022-Q2 | 2022-06-30 | | -9,829,000 | | reported discrete quarter | | 2022-Q3 | 2022-09-30 | | -7,412,000 | | reported discrete quarter | | 2022-Q4 | 2022-12-31 | | -12,719,000 | | derived Q4 = FY annual - nine-month YTD | | 2023-Q1 | 2023-03-31 | | -9,197,000 | | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | -12,585,000 | | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 72,760,000 | -4,212,000 | | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 74,624,000 | 4,269,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 74,534,000 | | | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 77,961,000 | | | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 88,804,000 | | 0.01 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 89,183,000 | | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 93,064,000 | | 0.02 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 102,018,000 | | 0.01 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 109,728,000 | 13,017,000 | 0.06 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 114,687,000 | 15,644,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 117,242,000 | 15,250,000 | 0.07 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 124,495,000 | 27,570,000 | 0.12 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from AVPT's latest 10-K: [/company/AVPT/business/](/company/AVPT/business/). ## Risk Factors Verbatim Item 1A Risk Factors from AVPT's latest 10-K: [/company/AVPT/risk-factors/](/company/AVPT/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1777921/000143774926026267/avpt20260630_10q.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-06 Report date: 2026-06-30 ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (Part I, Item 2 of this Quarterly Report) (“MD&A”) summarizes (and is intended to help the reader understand) the significant factors affecting the consolidated operating results, financial condition, liquidity and cash flows of our Company as of and for the periods presented below. The MD&A should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2025 (our “Annual Report”) and our condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report.  Second Quarter 2026 Business Highlights [[GREPCENT_TABLE]] [["","\u25a0","Total annual recurring revenue (\u201cARR\u201d) increased 27% year-over-year to $465.1 million as of June 30, 2026; adjusted for FX, total ARR increased 24% year-over-year;"],["","\u25a0","Total revenue increased 22% year-over-year to $124.5 million for the three months ended June 30, 2026, 21% on a constant currency basis;"],["","\u25a0","SaaS revenue increased 27% year-over-year to $98.5 million for the three months ended June 30, 2026, 26% on a constant currency basis;"],["","\u25a0","Released the third annual State of AI report, finding that organizations lack the trust layer required to scale AI safely, as governance gaps, deployment delays, and AI-generated data are compounding the challenge; and"],["","\u25a0","Announced new advancements to the AvePoint Confidence Platform that extend the connected layer of governance, security, recovery, and backup controls that sits across an organization\u2019s data to agentic AI, new enterprise applications, and new multicloud infrastructure."]] [[/GREPCENT_TABLE]] Overview AvePoint is a global provider of modern data protection, enabling organizations to secure, govern, and operationalize data at scale across major cloud ecosystems. Customers rely on the AvePoint Confidence Platform to reduce risk, improve operational efficiency, and accelerate digital transformation as they adopt cloud collaboration and artificial intelligence (“AI”)-driven advanced tools and workflows.  As organizations embed AI into core business processes, data becomes both a strategic asset and a growing source of risk. AI can amplify the impact of poor data hygiene, including sensitive data exposure, compliance failures, and operational disruption. Enterprises increasingly require a modern data foundation where data is discoverable, classified, governed, protected, and recoverable by design. Our solutions are designed to address four pervasive and interconnected enterprise data challenges: [[GREPCENT_TABLE]] [["","\u25a0","Legacy and fragmented data that limits visibility, governance, and AI readiness;"],["","\u25a0","Overexposed data that increases security, privacy, and regulatory risk;"],["","\u25a0","Digital sprawl that drives operational complexity and rising total cost of ownership; and"],["","\u25a0","Data loss and interruption, which threaten business continuity and organizational resilience."]] [[/GREPCENT_TABLE]] By addressing these challenges through an integrated platform, we enable organizations to reduce risk, lower complexity, and accelerate time-to-value from their data. 30 Table of Contents Part I Item 2 Key Business Metric Our management reviews the following key business metric to measure our performance, identify trends affecting our business, formulate business plans, make strategic decisions, and effectively allocate resources. We believe that both management and investors benefit from referring to this metric to evaluate progress against our growth strategies and gain additional transparency into performance trends. [[GREPCENT_TABLE]] [["","","June 30,"],["","","2026","","","2025"],["Total ARR ($ in mil)","","$","465.1","","","$","367.6"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["Annual Recurring Revenue","","We believe ARR further enables measurement of our business performance, is an important metric for financial forecasting, and better enables us to make strategic business decisions. We calculate ARR as the annualized sum of contractually obligated Annual Contract Value (\u201cACV\u201d) from SaaS and term license and support sources from all active customers at the end of a reporting period. As of June 30, 2026 and June 30, 2025, total ARR was $465.1 million and $367.6 million, respectively, representing growth of 27% year over year, and 24% when adjusted for FX. Growth in ARR is driven by both new customer acquisitions and the expansion of existing customer relationships. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or replace these items. ARR is not a forecast of future revenue, and the active contracts used in calculating ARR may or may not be extended or renewed by our customers."]] [[/GREPCENT_TABLE]] 31 Table of Contents Part I Item 2 Components of Results of Operations [[GREPCENT_TABLE]] [["Revenue","","We generate revenue from three primary sources: SaaS, term license and support, and services. We consider SaaS and term license and support revenues to be recurring. SaaS revenues are generated from our cloud-based solutions. Term license and support revenues are generated from the sales of on-premise or hybrid licenses, which include a distinct support component. Both SaaS and term license and support revenues are primarily billed annually. SaaS and term license and support are generally sold per user license or based upon the amount of data protected. SaaS revenue is recognized ratably over the term of the contract. For term license and support revenue, the license component is generally recognized upfront at the point in time when the software is made available to the customer to download and use, and the support component is recognized ratably over the term of the contract. Included in term license and support revenues are maintenance revenues tied to previously sold legacy perpetual licenses. Services revenue includes revenue generated from implementation, training, consulting, license customization and managed services. These revenues are recognized by applying a measure of progress, such as labor hours, to determine the percentage of completion of each contract. These offerings are not inherently recurring in nature and as such are subject to more period-to-period volatility than other elements of our business. Services revenue from managed services are recognized ratably or on a straight-line basis over the contract term."],["Cost of Revenue","","Cost of SaaS and cost of term license and support consists of all direct costs to deliver and support our SaaS and term license and support products, including salaries, benefits, stock-based compensation and related expenses, overhead, third-party hosting fees related to our cloud services, and depreciation and amortization. We recognize these expenses as they are incurred. We expect that these costs will increase in absolute dollars but may fluctuate as a percentage of SaaS and term license and support revenue from period to period. Cost of services consists of salaries, benefits, stock-based compensation and related expenses for our services organization, overhead, technology necessary to service our customers, and depreciation and amortization. We recognize these expenses as they are incurred."],["Gross Profit and Gross Margin","","Gross profit is revenue less cost of revenue, and gross margin is gross profit as a percentage of revenue. Gross profit has been and will continue to be affected by various factors, including the mix of our revenue, the costs associated with third-party cloud-based hosting services for our cloud-based subscriptions, and the extent to which we expand our customer support and services organizations. We expect that our gross margin will fluctuate from period to period depending on the interplay of these various factors but should increase in the long term as SaaS revenue continues to increase as a percentage of total revenue."],["Sales and Marketing","","Sales and marketing expenses consist primarily of personnel-related expenses for sales, marketing and customer success personnel, stock-based compensation expense, sales commissions, marketing programs, travel-related expenses, overhead costs, depreciation and amortization. We focus our sales and marketing efforts on creating sales leads and establishing and promoting our brand. Incremental sales commissions for new customer contracts are deferred and amortized ratably over the estimated period of our relationship with such customers. We plan to continue our investment in sales and marketing by hiring additional sales and marketing personnel, executing our go-to-market strategy globally, and building our brand awareness."]] [[/GREPCENT_TABLE]] 32 Table of Contents Part I Item 2 [[GREPCENT_TABLE]] [["General and Administrative","","General and administrative expenses consist primarily of personnel-related expenses for finance, legal and compliance, human resources, and IT personnel, as well as stock-based compensation expense, external professional services, overhead costs, other administrative functions, depreciation and amortization."],["Research and Development","","Research and development expenses consist primarily of personnel-related expenses incurred for our engineering and product and design teams, as well as stock-based compensation expense, overhead costs, depreciation and amortization. We have a geographically dispersed research and development presence in the United States, China, Singapore and Vietnam. We believe this provides a strategic advantage, allowing us to invest efficiently in both new product development and increasing our existing product capabilities. We believe delivering expanding product functionality is critical to enhancing the success of existing customers while new product development further reinforces our breadth of software solutions."],["Other Income (Expense), net","","Other income (expense), net, consists primarily of realized gains/losses for securities, foreign currency remeasurement gains/losses, and fair value adjustments on earn-out and warrant liabilities."],["Income Taxes","","We are subject to income taxes in the U.S. (federal and state) and numerous foreign jurisdictions. Tax laws, regulations, administrative practices, principles, and interpretations in various jurisdictions may be subject to significant change, with or without notice, due to economic, political, and other conditions. The foreign jurisdictions in which we operate have different statutory tax rates than those of the United States. Accordingly, our effective tax rate could be affected by the relative proportion of foreign to domestic income, use of foreign tax credits, changes in the valuation of our deferred tax assets and liabilities, applicability of any valuation allowances, and changes in tax laws in jurisdictions in which we operate. On July 4, 2025, the One Big Beautiful Bill Act (the \u201cOBBBA\u201d) was signed into law. The OBBBA includes various provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The OBBBA has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We evaluated the impact of the OBBBA in the current quarter and recorded the related income tax effects in the condensed consolidated financial statements."]] [[/GREPCENT_TABLE]] 33 Table of Contents Part I Item 2 Results of Operations The below period-to-period comparisons of operating results are not necessarily indicative of results for future periods. Comparison of Three Months Ended Ju [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1777921/000143774926005907/avpt20251231_10k.htm Complete FY 2025 MD&A: /company/AVPT/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-26 Report date: 2025-12-31 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) summarizes the significant factors affecting the consolidated operating results, financial condition, liquidity and cash flows of our Company as of and for the periods presented below. The MD&A should be read in conjunction with the other sections of this Annual Report on Form 10-K, including our audited, consolidated financial statements and related notes contained in Part II, Item 8. Financial Statements and Supplementary Data, and the discussion of risk factors that may affect future results in Part I, Item 1A. Risk Factors. This section generally discusses the results of our operations for the year ended December 31, 2025 compared to the year ended December 31, 2024. For a discussion of the year ended December 31, 2024 compared to the year ended December 31, 2023, please refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024, which discussion is incorporated herein by reference. 2025 Business Highlights [[GREPCENT_TABLE]] [["","\u25a0","As of December 31, 2025, total annual recurring revenue (\u201cARR\u201d) was $416.8 million, representing 27% year-over-year growth. On a foreign exchange (\u201cFX\u201d) adjusted basis, total ARR increased 26% year-over-year;"],["","\u25a0","Total revenue increased 27% year-over-year to $419.5 million. On a constant currency basis, total revenue increased 25% year-over-year;"],["","\u25a0","SaaS revenue increased 38% year-over-year to $319.2 million and represented 76% of total revenue, compared to 70% of revenue in 2024. On a constant currency basis, SaaS revenue increased 36% year-over-year;"],["","\u25a0","GAAP operating income was $33.0 million, compared to GAAP operating income of $7.2 million in 2024. Non-GAAP operating income was $79.2 million, compared to non-GAAP operating income of $47.6 million in 2024; and"],["","\u25a0","Net cash provided by operating activities was $85.3 million, representing 20% of revenue, compared to $88.9 million, representing 27% of revenue, for the year ended December 31, 2024."]] [[/GREPCENT_TABLE]] Overview AvePoint is the global leader in modern data protection, delivering a unified platform that enables organizations to secure, govern, and operationalize data at scale. Serving customers of all sizes across every major industry and geography, AvePoint addresses one of the most critical challenges facing enterprises today: how to safely unlock the value of data in a world increasingly driven by artificial intelligence (“AI”). As organizations rapidly embed AI into their core business processes, data has become both their most valuable asset and their greatest source of risk. AI systems amplify the consequences of poor data hygiene: overexposed sensitive information, accelerating compliance failures, and an increased blast radius from breaches and operational disruptions. As a result, enterprises require a modern data foundation that ensures data is discoverable, classified, governed, protected, and recoverable by design. The AvePoint Confidence Platform delivers this foundation. Purpose-built for today’s cloud-first environments, the platform addresses four pervasive and interconnected data challenges that directly impact enterprise risk, cost, and growth: 1. Legacy and fragmented data, which undermines visibility, governance, and AI readiness; 2. Overexposed data, which increases security, privacy, and regulatory risk; 3. Digital sprawl, which drives operational complexity and rising total cost of ownership; and 4. Data loss and interruption, which threaten business continuity and organizational resilience.  By solving these challenges through a single, integrated platform, AvePoint enables organizations to reduce risk, lower complexity, and accelerate time to value from their data. In an era where trusted data is a prerequisite for AI adoption, data protection is no longer a back-office IT function, it is a strategic business imperative.  39 Table of Contents PART II Item 7 Key Business Metric Our management reviews the following key business metric to measure our performance, identify trends affecting our business, formulate business plans, make strategic decisions, and effectively allocate resources. We believe that both management and investors benefit from referring to this metric to evaluate progress against our growth strategies and gain additional transparency into performance trends. Annual Recurring Revenue [[GREPCENT_TABLE]] [["","","December 31,"],["","","2025","","","2024"],["Total ARR ($ in mil)","","$","416.8","","","$","327.0"]] [[/GREPCENT_TABLE]] We believe ARR enables measurement of our business performance, is an important metric for financial forecasting, and better enables us to make strategic business decisions. We calculate ARR as the annualized sum of contractually obligated Annual Contract Value (“ACV”) from SaaS, term license and support, and maintenance revenue sources from all active customers at the end of a reporting period. As of December 31, 2025 and 2024, total ARR was $416.8 million and $327.0 million, respectively, representing growth of 27%. Adjusted for FX, total ARR increased 26% year-over-year. Growth in ARR is driven by both new customer acquisition and the expansion of existing customer relationships. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or replace these items. ARR is not a forecast of future revenue, and the active contracts used in calculating ARR may or may not be extended or renewed by our customers. 40 Table of Contents PART II Item 7 Components of Results of Operations [[GREPCENT_TABLE]] [["Revenue","We generate revenue from four primary sources: SaaS, term license and support, services, and maintenance. We consider SaaS, term license and support, and maintenance revenues to be recurring. SaaS revenues are generated from our cloud-based solutions. Term license and support revenues are generated from the sales of on-premise or hybrid licenses which include a distinct support component. Both SaaS and term license and support revenues are primarily billed annually. SaaS and term license and support are generally sold per user license or based upon the amount of data protected. SaaS revenue is recognized ratably over the term of the contract. For term license and support revenue, the license component is generally recognized upfront at the point in time when the software is made available to the customer to download and use, and the support component is recognized ratably over the term of the contract. Services revenue includes revenue generated from implementation, training, consulting, license customization and managed services. These revenues are recognized by applying a measure of progress, such as labor hours, to determine the percentage of completion of each contract. These offerings are not inherently recurring in nature and as such are subject to more period-to-period volatility than other elements of our business. Services revenue from managed services are recognized ratably or on a straight-line basis over the contract term. Maintenance revenue is a result of selling on-going support for legacy perpetual licenses. Maintenance revenue is recognized ratably over the term of the maintenance agreement, which is typically one year."],["Cost of Revenue","Cost of SaaS and cost of term license and support consists of all direct costs to deliver and support our SaaS and term license and support products, including salaries, benefits, stock-based compensation and related expenses, overhead, third-party hosting fees related to our cloud services, and depreciation and amortization. We recognize these expenses as they are incurred. We expect that these costs will increase in absolute dollars but may fluctuate as a percentage of SaaS and term license and support revenue from period to period. Cost of maintenance consists of all direct costs to support our legacy perpetual license products, including salaries, benefits, stock-based compensation and related expenses, overhead, and depreciation and amortization. We recognize these expenses as they are incurred. We expect that cost of maintenance revenue will decrease in absolute dollars as maintenance revenue declines but may fluctuate as a percentage of maintenance revenue. Cost of services consists of salaries, benefits, stock-based compensation and related expenses for our services organization, overhead, technology necessary to service our customers, and depreciation and amortization. We recognize these expenses as they are incurred."]] [[/GREPCENT_TABLE]] 41 Table of Contents PART II Item 7 [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/AVPT/mda/fy2025/ All MD&A years: /company/AVPT/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/AVPT/mda/fy2024/): filed 2025-02-28; accession 0001437749-25-005526 (https://www.sec.gov/Archives/edgar/data/1777921/000143774925005526/avpt20241231_10k.htm) - [FY 2023 MD&A](/company/AVPT/mda/fy2023/): filed 2024-02-29; accession 0001437749-24-006145 (https://www.sec.gov/Archives/edgar/data/1777921/000143774924006145/avpt20231231_10k.htm) - [FY 2022 MD&A](/company/AVPT/mda/fy2022/): filed 2023-03-31; accession 0001437749-23-008808 (https://www.sec.gov/Archives/edgar/data/1777921/000143774923008808/avpt20221231_10k.htm) - [FY 2021 MD&A](/company/AVPT/mda/fy2021/): filed 2022-03-31; accession 0001437749-22-007895 (https://www.sec.gov/Archives/edgar/data/1777921/000143774922007895/avpt20211231_10k.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 7372 Services-Prepackaged Software) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/AVPT.md · JSON record: /company/AVPT.json · verified financials: /company/AVPT/financials.json / /company/AVPT/financials.csv · machine TOC for the whole site: /llms.txt