# COMMVAULT SYSTEMS INC (CVLT)

Informational only - not investment advice.

CIK: 0001169561
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: 2026-05-11
SEC page: https://www.sec.gov/edgar/browse/?CIK=1169561
Filing source: https://www.sec.gov/Archives/edgar/data/1169561/000116956126000017/cvlt-20260331.htm

## At a glance

FY2026 · period end 2026-03-31 · filed 2026-05-11 · accession 0001169561-26-000017 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001169561.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 1,183,690,000 USD | 2026 | verified |
| Net income | 70,657,000 USD | 2026 | verified |
| Assets | 1,886,305,000 USD | 2026 | verified |
| Free cash flow | 237,151,000 USD | 2026 | computed |
| Net margin | 5.97% | 2026 | computed |
| Operating margin | 6.25% | 2026 | computed |
| Revenue YoY | +18.89% | 2026 | 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 = FY2026 revenue ÷ FY2025 revenue − 1 (consecutive fiscal years only).

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | CVLT | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 6.0% | 1.5% | 59 | 122 |
| Operating margin | 6.3% | 1.3% | 61 | 121 |
| Revenue growth | 18.9% | 13.5% | 71 | 124 |
| FCF margin | 20.0% | 19.3% | 53 | 120 |
| ROE | 23.4% | 2.0% | 85 | 112 |
| ROA | 3.7% | 0.9% | 63 | 124 |
| Liabilities / equity | 2.44 | 0.91 | 77 | 113 |
| Current ratio | 1.95 | 1.57 | 66 | 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 | 1183690000 | USD | 2026 | 2026-05-11 |
| Net income | 70657000 | USD | 2026 | 2026-05-11 |
| Assets | 1886305000 | USD | 2026 | 2026-05-11 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-11. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001169561.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 645,005,000 | 699,393,000 | 710,957,000 | 670,885,000 | 723,472,000 | 769,591,000 | 784,590,000 | 839,247,000 | 995,619,000 | 1,183,690,000 |
| Net income | -508,000 | -61,900,000 | 3,561,000 | -5,645,000 | -30,954,000 | 33,624,000 | -35,774,000 | 168,906,000 | 76,106,000 | 70,657,000 |
| Operating income | -1,242,000 | -946,000 | 4,908,000 | -17,508,000 | -22,263,000 | 41,566,000 | -15,885,000 | 75,355,000 | 73,738,000 | 73,990,000 |
| Gross profit | 559,813,000 | 601,241,000 | 593,951,000 | 553,807,000 | 614,099,000 | 655,732,000 | 649,188,000 | 687,637,000 | 816,584,000 | 960,570,000 |
| Diluted EPS | -0.01 | -1.37 | 0.07 | -0.12 | -0.66 | 0.71 | -0.80 | 3.75 | 1.68 | 1.58 |
| Operating cash flow | 100,039,000 | 84,169,000 | 110,180,000 | 88,464,000 | 123,955,000 | 177,180,000 | 170,288,000 | 203,798,000 | 207,382,000 | 244,680,000 |
| Capital expenditures | 6,424,000 | 7,047,000 | 6,560,000 | 3,203,000 | 8,176,000 | 3,911,000 | 3,241,000 | 4,086,000 | 3,756,000 | 7,529,000 |
| Share buybacks | 49,998,000 | 112,218,000 | 132,697,000 | 77,198,000 | 95,259,000 | 305,239,000 | 150,921,000 | 184,021,000 | 165,015,000 | 446,106,000 |
| Assets | 829,878,000 | 818,642,000 | 822,453,000 | 845,076,000 | 904,173,000 | 816,080,000 | 782,574,000 | 943,913,000 | 1,118,266,000 | 1,886,305,000 |
| Stockholders' equity | 466,932,000 | 404,064,000 | 391,303,000 | 411,904,000 | 394,034,000 | 255,829,000 | 186,098,000 | 278,085,000 | 325,122,000 | 7,494,000 |
| Cash and cash equivalents | 329,491,000 | 330,784,000 | 327,992,000 | 288,082,000 | 397,237,000 | 267,507,000 | 287,778,000 | 312,754,000 | 302,103,000 | 899,987,000 |
| Free cash flow | 93,615,000 | 77,122,000 | 103,620,000 | 85,261,000 | 115,779,000 | 173,269,000 | 167,047,000 | 199,712,000 | 203,626,000 | 237,151,000 |

### 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 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | -0.08% | -8.85% | 0.50% | -0.84% | -4.28% | 4.37% | -4.56% | 20.13% | 7.64% | 5.97% |
| Operating margin | -0.19% | -0.14% | 0.69% | -2.61% | -3.08% | 5.40% | -2.02% | 8.98% | 7.41% | 6.25% |
| Return on equity | -0.11% | -15.32% | 0.91% | -1.37% | -7.86% | 13.14% | -19.22% | 60.74% | 23.41% |  |
| Return on assets | -0.06% | -7.56% | 0.43% | -0.67% | -3.42% | 4.12% | -4.57% | 17.89% | 6.81% | 3.75% |
| Liabilities / equity | 0.78 | 1.03 | 1.10 | 1.05 | 1.29 | 2.19 | 3.21 | 2.39 | 2.44 |  |
| Current ratio | 2.10 | 2.00 | 2.01 | 1.56 | 1.63 | 1.23 | 1.34 | 1.23 | 1.14 | 1.95 |

## As-reported value updates

4 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/CVLT/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-11. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001169561.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 |
| --- | --- | ---: | ---: | ---: | --- |
| 2017-Q1 | 2016-06-30 | 152,413,000 |  |  | reported discrete quarter |
| 2017-Q2 | 2016-09-30 | 159,333,000 |  |  | reported discrete quarter |
| 2017-Q3 | 2016-12-31 | 165,841,000 |  |  | reported discrete quarter |
| 2017-Q4 | 2017-03-31 | 172,931,000 |  |  | derived Q4 = FY annual - nine-month YTD |
| 2018-Q1 | 2017-06-30 | 165,972,000 |  |  | reported discrete quarter |
| 2018-Q2 | 2017-09-30 | 168,140,000 |  |  | reported discrete quarter |
| 2018-Q3 | 2017-12-31 | 180,366,000 |  |  | reported discrete quarter |
| 2018-Q4 | 2018-03-31 | 184,915,000 |  |  | derived Q4 = FY annual - nine-month YTD |
| 2023-Q1 | 2022-06-30 |  |  | 0.08 | reported discrete quarter |
| 2023-Q2 | 2022-09-30 |  |  | 0.10 | reported discrete quarter |
| 2023-Q3 | 2022-12-31 |  |  | -0.01 | reported discrete quarter |
| 2024-Q1 | 2023-06-30 |  | 12,629,000 | 0.28 | reported discrete quarter |
| 2024-Q2 | 2023-09-30 |  | 13,017,000 | 0.29 | reported discrete quarter |
| 2024-Q3 | 2023-12-31 |  | 17,140,000 | 0.38 | reported discrete quarter |
| 2024-Q4 | 2024-03-31 |  | 126,120,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-06-30 |  | 18,527,000 | 0.41 | reported discrete quarter |
| 2025-Q2 | 2024-09-30 |  | 15,565,000 | 0.35 | reported discrete quarter |
| 2025-Q3 | 2024-12-31 |  | 11,021,000 | 0.24 | reported discrete quarter |
| 2025-Q4 | 2025-03-31 |  | 30,993,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-06-30 | 281,978,000 | 23,496,000 | 0.52 | reported discrete quarter |
| 2026-Q2 | 2025-09-30 | 276,188,000 | 14,730,000 | 0.33 | reported discrete quarter |
| 2026-Q3 | 2025-12-31 | 313,832,000 | 17,782,000 | 0.40 | reported discrete quarter |
| 2026-Q4 | 2026-03-31 | 311,692,000 | 14,649,000 |  | derived Q4 = FY annual - nine-month YTD |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from CVLT's latest 10-K: [/company/CVLT/business/](/company/CVLT/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from CVLT's latest 10-K: [/company/CVLT/risk-factors/](/company/CVLT/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1169561/000116956126000024/cvlt-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-07-29
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis along with our consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q. The statements in this discussion regarding our expectations of our future performance, liquidity and capital resources, and other non-historical statements are forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the risks and uncertainties described under "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended March 31, 2026, as such risks and uncertainties may be updated from time to time in our periodic filings with the Securities and Exchange Commission. Our actual results may differ materially from those contained in or implied by any forward-looking statements.

Overview

Commvault Systems, Inc. ("Commvault") is a provider of cyber resiliency solutions designed to help the enterprise protect, secure, and recover their data, applications, and identity systems in a world of increasing cyber threats and attacks. Commvault’s offerings provide cyber resilience, including data protection, cyber recovery, data security, and governance, aiming to enable customers' continuous business.

Industry

Our industry continues to be reshaped by accelerating data growth, increasingly sophisticated cyberattacks, the rapid adoption of artificial intelligence ("AI"), and the expansion of hybrid, multi-cloud, cloud-native, and software-as-a-service ("SaaS") environments. Customers increasingly require a cyber resilience platform that brings together data security, identity resilience, real-time governance, threat detection, and verified clean recovery for structured and unstructured data, cloud-native applications, and AI workloads. Commvault Cloud is designed to help organizations secure, govern, and recover data and workloads anywhere to anywhere, while supporting compliance and operational resilience at scale.

Sources of Revenues

We generate revenues through subscription arrangements, which include term-based licenses, term-based support, and SaaS, as well as perpetual licenses, perpetual support, and other services. A significant portion of our revenues comes from subscription arrangements. These arrangements are economically and contractually similar, as customers generally receive access to our software for a specified term under binding agreements. We are focused on these types of recurring revenue arrangements.

We expect our subscription arrangements will continue to generate revenues from the renewals of term-based licenses, term-based support, and SaaS offerings sold in prior years. Any of our pricing models (capacity, instance-based, consumption, etc.) can be sold either through term-based licensing or cloud-based SaaS offerings. In term-based license arrangements, software revenue is generally recognized when the software is delivered or made available for download. Term-based support revenue and revenue related to our SaaS offerings are generally recognized ratably over the contract period or, in consumption arrangements, as the solutions are consumed.

Our term-based support and perpetual support revenues include support services for term‑based license customers and support contracts for perpetual license customers, respectively. These support offerings include software updates on a when-and-if-available basis, telephone support, integrated web-based support, and other premium support offerings. We sell our customer support contracts as a percentage of net software purchases. Support revenue is recognized ratably over the term of the support agreement, which is typically one to three years for term-based support and one year for perpetual support.

Our other services revenue consists primarily of professional service offerings, including consultation, assessment and design, installation services, and customer education. Revenues related to other services can vary period over period based on the timing services are delivered and are typically recognized as the services are performed.

20

Table of Contents

We sell to end-user customers both directly through our sales force and indirectly through our global network of value-added reseller partners, systems integrators, corporate resellers, original equipment manufacturers, and marketplaces. Revenues generated through indirect distribution channels accounted for approximately 90% of our total revenues in both the three months ended June 30, 2026 and 2025. Revenue generated through direct distribution channels accounted for approximately 10% of our total revenues in both the three months ended June 30, 2026 and 2025. Deals initiated by our direct sales force are sometimes transacted through indirect channels based on end-user customer requirements, which are not always in our control and can cause this overall percentage split to vary from period to period. As such, there may be fluctuations in the dollars and percentage of revenues generated through our distribution channels from time to time. We believe that the growth of our revenues, derived from both our indirect channel partners and direct sales force, are key attributes to our long-term growth strategy. We intend to continue to invest in both our channel relationships and direct sales force in the future, but we continue to expect more revenues to be generated through indirect distribution channels over the long term. The failure of our indirect distribution channels or our direct sales force to effectively sell our products and services could have a material adverse effect on our revenues and results of operations.

We have non-exclusive distribution agreements with certain partners who enable a more efficient and effective distribution channel for our solutions by managing our resellers and leveraging their own industry experience. For the three months ended June 30, 2026 and 2025, Partner A accounted for approximately 32% and 33% of our total revenues, respectively. Separately, Partner B accounted for approximately 11% of our total revenues for both the three months ended June 30, 2026 and 2025. If any of these partners were to discontinue or materially reduce their sales of our solutions, terminate their agreements with us, or experience operational or financial difficulties, and if we were unable to effectively replace them or assume management of the affected distribution activities, our business, revenues, and results of operations could be materially adversely affected.

We also sell our solutions through cloud-based marketplace offerings operated by third-party platform providers. Revenue from marketplace transactions are typically recorded on a gross basis, and amounts paid to the marketplace providers are capitalized as contract costs and amortized over the term of the related arrangement. Amortization of capitalized marketplace costs was $0.5 million and $0.4 million for the three months ended June 30, 2026 and 2025, respectively. Transactions through third‑party cloud marketplace providers represented approximately 10% of our total revenues for the three months ended June 30, 2026 and less than 10% of our total revenues for the three months ended June 30, 2025. These transactions include sales to both new and existing customers and may include new purchases, renewals, expansions for existing customers, and subscriptions for both on‑premise and SaaS offerings.

For additional information on how we recognize revenue, see Note 3 of the Notes to Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Key Performance Indicators ($ in millions)

We monitor the following key performance indicators to help evaluate the state of our business. We believe the below metrics are material to investors to understand the growth and performance of our business, as they help normalize certain variable factors. Metrics such as Subscription Annualized Recurring Revenue ("Subscription ARR"), SaaS ARR, and Subscription Net Dollar Retention Rate ("Subscription NRR") provide a consistent view of our recurring revenue profile. Subscription ARR and SaaS ARR exclude non-recurring elements and reflect the annualized value of active contracts, while Subscription NRR measures net expansion within our existing Subscription customer base. Together, we believe these metrics offer meaningful insight into the health and trajectory of our recurring revenue streams. Total ARR, which also included the annualized maintenance contract on perpetual licenses, is no longer disclosed.

21

Table of Contents

Subscription ARR

Subscription ARR represents the annualized value of all active contracts as of the end of a reporting period attributable to term‑based licenses, maintenance and support services associated with term license arrangements, SaaS subscriptions, and consumption‑based arrangements, calculated by dividing the total active contract value by the number of days in the contract term and multiplying the result by 365. For consumption-based arrangements on a pay as you go model without a fixed commitment, the applicable ARR is calculated by annualizing the revenue contractually expected to be received in a given month based on actual monthly usage from a prior month. We believe Subscription ARR provides useful insight into the growth of our subscription-based offerings and reflects both new customer acquisition and expansion within our existing customer base. As our most strategically significant and rapidly expanding revenue streams, our subscription arrangements are central to our long-term growth strategy and operational focus.

[[GREPCENT_TABLE]]
[["","","June 30,"],["","","2026","","2025"],["Subscription ARR","","$","1,054.3","","","$","867.3"],["% Growth","","22","%","","32","%"]]
[[/GREPCENT_TABLE]]

SaaS ARR

SaaS ARR includes only the cloud-hosted portion of Subscription ARR and is calculated using the same methodology. We believe this metric provides insight into customer adoption trends and expansion within our cloud-based offerings. As SaaS continues to represent a growing share of our total revenue, we view this metric as a key indicator of our ability to meet the evolving needs of our customer base. Continued adoption and conversion to SaaS arrangements are critical to sustaining our long-term growth and aligning with customer preferences for cloud-delivered solutions.

[[GREPCENT_TABLE]]
[["","","June 30,"],["","","2026","","2025"],["SaaS ARR","","$","424.3","","","$","306.9"],["% Growth","","38","%","","63","%"]]
[[/GREPCENT_TABLE]]

Subscription NRR

Subscription NRR includes all contracts attributable to term-based licenses, maintenance and support services associated with term license arrangements, SaaS subscriptions, and consumption-based arrangements. Subscription NRR is calculated as the percentage of Subscription ARR retained from existing customers at the start of an annual period after accounting for expansion revenue, churn, and downgrades, measured on an annualized basis using the trailing four quarter average. Acquired Subscription ARR is excluded until the acquisition is fully integrated, which we generally expect to occur twelve months from the close date. We believe our Subscription NRR offers valuable insight into the year-over-year expansion of our existing customer base, reflecting both increased utilization of current products and services as well as the adoption of additional offerings.

[[GREPCENT_TABLE]]
[["","","June 30,"],["","","2026","","2025"],["Subscription NRR","","114","%","","114","%"]]
[[/GREPCENT_TABLE]]

These metrics are non-GAAP measures and do not have standardized definitions under GAAP. As such, they may not be comparable to similarly titled measures used by other companies and should be considered as a suppl

[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/1169561/000116956126000017/cvlt-20260331.htm
Complete FY 2026 MD&A: /company/CVLT/mda/fy2026/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-05-11
Report date: 2026-03-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis along with our consolidated financial statements and the related notes included elsewhere in this Annual Report on Form 10-K. The statements in this discussion regarding our expectations of our future performance, liquidity and capital resources, and other non-historical statements are forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the risks and uncertainties described under "Risk Factors" and elsewhere in this Annual Report on Form 10-K. Our actual results may differ materially from those contained in or implied by any forward-looking statements. For discussion comparing the period ended March 31, 2025 to March 31, 2024, please refer to our Annual Report on Form 10-K, filed with the SEC on May 05, 2025.

Overview

Commvault Systems, Inc. ("Commvault") is a provider of cyber resiliency solutions designed to help the enterprise protect, secure, and recover their data, applications, and identity systems in a world of increasing cyber threats and attacks. Commvault’s offerings provide cyber resilience, including data protection, cyber recovery, data security, and governance, aiming to enable customers continuous business.

Industry

Our industry continues to be reshaped by accelerating data growth, increasingly sophisticated cyberattacks, the rapid adoption of AI, and the expansion of hybrid, multi-cloud, cloud-native and SaaS environments. Customers increasingly require a cyber resilience platform that brings together data security, identity resilience, real-time governance, threat detection, and verified clean recovery for structured and unstructured data, cloud-native applications, and AI workloads. Commvault Cloud is designed to help organizations secure, govern, and recover data and workloads anywhere to anywhere, while supporting compliance and operational resilience at scale.

Sources of Revenues

We generate revenues through subscription arrangements, which includes both term-based software licenses and SaaS, perpetual software licenses, customer support contracts and other services. A significant portion of our revenues comes from subscription arrangements, delivered on-premise through term-based licensing, or through cloud-based SaaS offerings. These arrangements are economically and contractually similar, as customers generally receive access to our software for a specified term under binding agreements. We are focused on these types of recurring revenue arrangements.

We expect our subscription arrangements will continue to generate revenues from the renewals of term-based licenses and SaaS offerings sold in prior years. Any of our pricing models (capacity, instance-based, consumption, etc.) can be sold either through term-based licensing or via cloud-based SaaS offerings. In term-based license arrangements, software revenue is generally recognized when the software is delivered or made available for download. Revenue related to our SaaS offerings is generally recognized ratably over the contract period or, in consumption arrangements, as the solutions are consumed.

Our customer support revenue includes support services for term‑based subscription customers and support contracts for perpetual license customers. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support, and other premium support offerings. We sell our customer support contracts as a percentage of net software purchases. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year on our perpetual licenses and over the term on our term-based licenses, which typically range from one to three years.

Our other services revenue consists primarily of professional service offerings, including consultation, assessment and design, installation services, and customer education. Revenue from other services can vary period over period based on the timing services are delivered and are typically recognized as the services are performed.

31

We sell to end-user customers both directly through our sales force and indirectly through our global network of value-added reseller partners, systems integrators, corporate resellers, OEMs, and marketplaces. Revenues generated through indirect distribution channels accounted for approximately 90% of our total revenues in the fiscal years ended March 31, 2026, 2025, and 2024. Revenues generated through direct distribution channels accounted for approximately 10% of our total revenues in the fiscal years ended March 31, 2026, 2025, and 2024. Deals initiated by our direct sales force are sometimes transacted through indirect channels based on end-user customer requirements, which are not always in our control and can cause this overall percentage split to vary from period to period. As such, there may be fluctuations in the dollars and percentage of revenues generated through our distribution channels from time to time. We believe that the growth of our revenues, derived from both our indirect channel partners and direct sales force, are key attributes to our long-term growth strategy. We intend to continue to invest in both our channel relationships and direct sales force in the future, but we continue to expect more revenues to be generated through indirect distribution channels over the long term. The failure of our indirect distribution channels or our direct sales force to effectively sell our products and services could have a material adverse effect on our revenues and results of operations.

We have non-exclusive distribution agreements with certain partners who enable a more efficient and effective distribution channel for our solutions by managing our resellers and leveraging their own industry experience. For the fiscal years ended March 31, 2026, 2025, and 2024, Partner A accounted for approximately 32%, 35%, and 36% of our total revenues, respectively. Separately, Partner B accounted for approximately 11% of our total revenues for the fiscal year ended March 31, 2026. Total revenues for the fiscal years ended March 31, 2025 and 2024 for Partner B were less than 10%. If any of these partners were to discontinue or materially reduce their sales of our solutions, terminate their agreements with us, or experience operational or financial difficulties, and if we were unable to effectively replace them or assume management of the affected distribution activities, our business, revenues, and results of operations could be materially adversely affected.

We also sell our solutions through cloud-based marketplace offerings operated by third-party platform providers. Revenue from marketplace transactions are typically recorded on a gross basis, and amounts paid to the marketplace providers are capitalized as contract costs and amortized over the term of the related arrangement. Amortization of capitalized marketplace costs was $2.0 million, $1.7 million, and $0.3 million for the fiscal years ended March 31, 2026, 2025, and 2024, respectively. Transactions through third‑party cloud marketplace providers represented less than 10% of our total revenues for the fiscal years ended March 31, 2026, 2025, and 2024, respectively. These transactions include sales to both new and existing customers and may include new purchases, renewals, expansions for existing customers, and subscriptions for both on‑premise and SaaS offerings.

For additional information on how we recognize revenue, see Note 3 of the Notes to Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K.

Description of Costs and Expenses

Our cost of revenues consist of the following:

•Cost of Subscription Revenue, consists primarily of third-party hosting fees related to our SaaS offerings, third-party royalty costs on certain offerings, and other costs such as media, manuals, translation and distribution costs;

•Cost of Perpetual License Revenue, consists primarily of third-party royalty costs on certain offerings;

•Cost of Customer Support Revenue, consists primarily of salary and other employee compensation costs in providing customer support services; and

•Cost of Other Services Revenue, consists primarily of salary and other employee compensation costs in providing professional services.

Our operating expenses consist of the following:

•Sales and Marketing, consists primarily of salaries, commissions and bonuses, employee benefits, stock-based compensation and other direct and indirect business expenses, including travel and related expenses, sales promotion expenses, public relations expenses and costs for marketing materials and other marketing events (such as trade shows and advertising);

32

•Research and Development, consists primarily of salaries, bonuses, stock-based compensation, benefits and related expenses for research and development personnel associated with the development of new, or the modification of existing, offerings and applications; further, costs related to certain contract labor and consulting fees and expenses associated with the design, certification and testing of our offerings are included; as well as legal costs associated with the patent registration of such offerings and applications;

•General and Administrative, consists primarily of salaries, bonuses, stock-based compensation and benefits for our executives, finance, human resources, legal and compliance, business technology and other administrative personnel. Also included in this category are other general corporate expenses, such as outside legal, consulting and accounting services, compliance costs and insurance; and

•Depreciation and Amortization, consists of depreciation expense for fixed assets, computer equipment we use for information services and in our development and test labs, and amortization of intangible assets.

Key Performance Indicators ($ in millions)

We monitor the following key performance indicators to help evaluate the state of our business. We believe the below metrics are material to investors to understand the growth and performance of our business, as they help normalize certain variable factors. Metrics such as Annualized Recurring Revenue ("ARR"), Subscription ARR, SaaS ARR and SaaS Net Dollar Retention Rate ("SaaS NRR") provide a consistent view of our recurring revenue profile. ARR, Subscription ARR, and SaaS ARR exclude non-recurring elements and reflect the annualized value of active contracts, while SaaS NRR measures net expansion within our existing SaaS customer base. Together, we believe these metrics offer meaningful insight into the health and trajectory of our recurring revenue streams.

Total Annualized Recurring Revenue ("ARR")

Total ARR represents the annualized value of all active contracts as of the end of a reporting period. ARR includes recurring subscription offerings, customer support associated with perpetual and term licenses, premium support offerings for subscription-based customers, and managed service offerings. ARR excludes non-recurring elements, such as perpetual licenses and professional services, which are typically delivered at a point in time. For all term-based arrangements, ARR is calculated by dividing the total active contract value by the number of days in the contract term and multiplying the result by 365. For consumption-based arrangements on a pay as you go model without a fixed commitment, ARR is calculated by annualizing the revenue contractually expected to be received in a given month based on actual monthly usage from a prior month. Because ARR includes only contracts that are active at the end of the reporting period, it does not reflect assumptions or estimates regarding future contract renewals or non-renewals.

We believe ARR is

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2026 MD&A: /company/CVLT/mda/fy2026/
All MD&A years: /company/CVLT/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 2025 MD&A](/company/CVLT/mda/fy2025/): filed 2025-05-05; accession 0001169561-25-000034 (https://www.sec.gov/Archives/edgar/data/1169561/000116956125000034/cvlt-20250331.htm)
- [FY 2024 MD&A](/company/CVLT/mda/fy2024/): filed 2024-05-13; accession 0001169561-24-000039 (https://www.sec.gov/Archives/edgar/data/1169561/000116956124000039/cvlt-20240331.htm)
- [FY 2023 MD&A](/company/CVLT/mda/fy2023/): filed 2023-05-05; accession 0001169561-23-000044 (https://www.sec.gov/Archives/edgar/data/1169561/000116956123000044/cvlt-20230331.htm)
- [FY 2022 MD&A](/company/CVLT/mda/fy2022/): filed 2022-05-06; accession 0001169561-22-000018 (https://www.sec.gov/Archives/edgar/data/1169561/000116956122000018/cvlt-20220331.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/CVLT.md · JSON record: /company/CVLT.json · verified financials: /company/CVLT/financials.json / /company/CVLT/financials.csv · machine TOC for the whole site: /llms.txt