Cognyte Software Ltd.

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Cognite Second Quarter Fiscal Year 2026 Earnings Conference Call. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. Please note that today's conference may be recorded. I will now hand the conference over to your speaker host, Dean Ridlon, Head of Investor Relations. Please go ahead.

Thank you, Operator. Hello, everyone. I'm Dean Ridland, Cognite's Head of Investor Relations. Thank you for joining us today. I'm here with Elad Sharong, Cognite's CEO, and David Abadi, Cognite's CFO. Before getting started, I would like to mention that accompanying our call today is a presentation. If you'd like to view these slides in real time during the call, please visit the investor section of our website at cognite.com. Click on Upcoming Events, then the webcast link for today's conference call. I would also like to draw your attention to the fact that certain matters discussed on this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other provisions of the federal securities laws. These forward-looking statements are based on management's current expectations and are not guarantees of future performance. Actual results could differ materially from those expressed in or implied by these forward-looking statements. The forward-looking statements are made as of the date of this call and, except as required by law, Cognite assumes no obligation to update or revise them. Investors are cautioned not to place undue reliance on these forward-looking statements. For a more detailed discussion of how these and other risks and uncertainties could cause Cognite's actual results to differ materially from those indicated in these forward-looking statements, please see our annual report on Form 20F for the fiscal year ended January 31, 2025, and other filings we make with the SEC. The financial measures discussed today include non-GAAP measures. We believe investors focus on non-GAAP financial measures in comparing results between periods and among our peer companies that publish similar non-GAAP measures. Please see today's presentation slides, our earnings release, and the investor section of our website at cognite.com for a reconciliation of non-GAAP financial measures to GAAP measures. Non-GAAP financial information should not be considered in isolation from, as a substitute for, or superior to GAAP financial information, but is included because management believes it provides meaningful information about the financial performance of our business and is useful to investors for informational and comparative purposes. The non-GAAP financial measures that the company uses have limitations and may differ from those used by other companies. Now, I would like to turn the call over to Allad.

Thank you, Dean. Welcome everyone to our conference call for the second quarter of the fiscal year ending January 31st, 2026. Before I get started, On behalf of the board and management team, I want to thank our shareholders for their trust and support at last week's annual general meeting. Turning now to our Q2 results. Our Q2 performance reflects solid execution against our strategy and constant demand for our solutions. In the second quarter, we grew revenue by approximately 16% year-over-year to about $98 million. Non-GAAP gross profit increased by about 17% year-over-year. We generated approximately $11 million of adjusted EBITDA for the quarter, growth of about 33% compared to what we generated in Q2 last year. And cash flow from operating activities was a negative $6 million, primarily due to expected seasonal expenses. These results reflect how technology is not only mission critical, but increasingly indispensable as global threats grow more complex. We probably serve four agency types. law enforcement, military intelligence, national intelligence, and national security agencies, each facing rising data volumes, more sophisticated adversaries, and a constantly evolving technology landscape. Our solutions help them stay ahead of these challenges, enabling them to protect people, secure borders, disrupt criminal and terror networks, defend against cyber threats, and ensure public safety every single day. This quarter, the commitment was reflected in two significant wins for military intelligence customers. In Asia Pacific, we signed a $10 million full-on deal with a longstanding customer. They operate in a complex border environment and use our border intelligence solutions to stop infiltration attempts by hostile actors, clear proof of the ongoing trust they place in us, and the tangible operational results we deliver. In EMEA, we won a competitive deal worth about $10 million with a new tier one military intelligence organization, beating several global vendors, including the regional incumbent. They chose Cognite for proven tactical intelligence capabilities to modernize operations and address emerging threats. The anticipated impact of our solutions has already led to the customer to place a follow-on order, demonstrating confidence in our technology and the potential for a broader and long-term partnership. Taken together, these rings reflect a broader reality we see every day. Around the world, governments and agencies are confronting rising levels of complexity and uncertainty. The global environment is marked by heightened security challenges from digital to physical domains, creating an urgent and sustained demand for advanced intelligent solutions. This growing demand not only underscores our commercial momentum, but also the effectiveness of our differentiated technology. As we shared at Invest Today, our technology stack is built on three layers, signal processing, insight mining, and investigative analytics. Within this framework, this quarter, I want to highlight our operational intelligence suite of solutions, also known as tactical intelligence, which is where our technology meets the field. TITIC is a foundational layer of signal processing. It transforms chaotic signal feeds into clean, usable data and so helps field units operate in real time. Whether in complexity environments or remote terrain, our best-in-class suite of tactical intelligence solutions enable missions from early threat detection to planning and operational response. And when you combine that offering with our top players, insert mining and investigative analytics, Culminating in our decision intelligence solution, Nexcite, you get the full power of the Cognite technology platform. What sets us apart is how these layers and solutions work together as one integrated platform creating a complete and differentiated intelligence capability powered by advanced AI. That's why intelligence and security agencies continue to choose Cognite to detect threats faster, act with precision, protect communities, and respond decisively to the full spectrum of criminal, terror, and national security challenges. We regularly hear from both current and prospective customers about the real impact our solutions are having. Just last month, during a week-long proof of concept in the field in a large US city, a prospective customer used one of our solutions to work more efficiently. The customer noted that the solution performed better than what they had relied on for years from incumbent providers. That pilot led directly to the arrest of several fugitives, individuals wanted for murder and armed robbery, clear proof of how quickly our solutions make an impact. Beyond customer feedback, our innovation is recognized across the industry. In Gartner's 2025 hype cycle for public safety and law enforcement, Cognite was named a sample vendor for our AI-powered predictive analytics. Gartner called the benefit of predictive analytics transformational as broader data sharing and richer data sets unlock new insights. Across all regions, agencies are being asked to do more with fewer resources while facing adversaries who are more agile and technology-sophisticated. This dynamic is driving increased investment in modern AI-enabled intelligence platforms reinforcing the strategic importance of our offering. The U.S. remains the cornerstone of our growth strategy, and further penetration into this market is a key priority. We continue to strengthen our reach through expanded presence and strategic partnerships. To that end, we entered into an alliance with LexisNexis Risk Solutions, a T1 partner with deep specialization in the federal market. This partnership expands our footprint and sells power in the region, providing access to a highly connected team with strong relationships across U.S. agencies. This is particularly strategic for our tactical intelligence portfolio, where federal customers represent an important growth opportunity. At the same time, we continue to operate against the backdrop of atypical U.S. agency procurement delays that limit NITM visibility into budget timing. While this environment presents what we believe are temporary challenges, we are confident that as state and local and federal spend normalizes, Cognite will be well positioned to accelerate customer acquisition and reinforce our competitive position in this region. Direct engagement with customers and prospects is also central to advancing our strategy. Recently, we participated in ATIA, a leading U.S. event for federal and state and local law enforcement, where we had an opportunity to showcase our capabilities and connect with key decision makers. Looking ahead, we are actively preparing for key upcoming conferences, including Millipool Paris, the leading global event for homeland security and safety, Asian Defense and Security in Bangkok, a premier exhibition for defense, security, and disaster response in the Asia-Pacific region, and IACP in Denver, Colorado, the premier gathering for US police chiefs and public safety leaders, as well as other important forums. These events give us the opportunity to showcase our latest capabilities, strengthen relationships, and create new opportunities. In today's environment, where threats are becoming more diverse and harder to predict, our technology provides agencies with the speed, accuracy, and insights they require to stay ahead. Looking ahead, we are encouraged by how current and prospective customers continue to respond to our technology. Our ongoing execution, combined with a clear focus on innovation, position as well to drive long-term growth and continue to meaningfully expand profitability. We have a clear path to our financial targets for the fiscal year ending January 31st, 2028. $500 million in revenue, gross margins of about 73%, and adjusted EBITDA margins above 20%. These goals are grounded in our strategy, deepening relationships with our existing customers, winning new customers, and expanding our footprint in the U.S. market. We remain confident in achieving these targets because the market need is growing, our technology leadership is proven, and our execution is delivering results quarter after quarter. For our current fiscal year, ending January 31, 2026, we are updating our guidance and now expect revenue of approximately $397 million, plus or minus 2%, representing about 13% EOV growth at the midpoint of the range, and adjusted EBITDA of approximately $45 million at the midpoint of the revenue range, representing approximately 55% EOV growth. Before I hand it over to David, I want to share why we do what we do. A core challenge our customers face is the imbalance between bad actors and those working to stop them. Bad actors, whether criminals or terrorists, move fast, adapt quickly, and exploit a single weakness with devastating impact. By contrast, law enforcement and security organizations must track and respond to a wide range of evolving threats in real time and with absolute precision. That means the bad guys only need to succeed once, while agencies need to succeed every single time. This asymmetry put immense pressure on investigative teams to work faster, smarter, and more accurately than ever. Every day, our customers stand on the front lines, protecting citizens, safeguarding borders, and preventing harm. Our purpose is clear, to give them the technology to generate the insights and the confidence they need to stay ahead of those who would do harm. This is the mission that drives every innovation, every partnership, and every decision we make at Cognite. Now, let me turn the call over to David to provide more details about our Q2 results.