NICE Ltd

Welcome to the NICE conference call discussing fourth quarter 2025 results, and thank you all for holding. All participants are at present in a listen-only mode. Following management's formal presentation, instructions will be given for the question and answer session. As a reminder, this conference is being recorded February 19, 2026. I would now like to turn this call over to Mr. Ryan Gilligan, VP, Investor Relations at NICE. Please go ahead.

Thank you, operator. With me on today's call are Scott Russell, Chief Executive Officer, and Beth Gaspich, Chief Financial Officer. Before we start, I would like to point out that some of the statements made on this call will constitute forward-looking statements. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, please be advised that the company's actual results could differ materially from these forward-looking statements. Additional information regarding the factors that could cause actual results or performance of the company to differ materially is contained in the section entitled Risk Factors in Item 3 of the company's 2024 Annual Report on Form 20F as filed with the Securities and Exchange Commission on March 19, 2025. During today's call, we will present a more detailed discussion of fourth quarter and full year 2025 results. and the company's guidance for first quarter and full year 2026. You can find our press release as well as PDFs of our financial results on NICE's investor relations website. Following our comments, there will be an opportunity for questions. Let me remind you that unless otherwise noted on this call, we will be commenting on our adjusted results of operations, which differ in certain respects from generally accepted accounting principles as reflected mainly in accounting for share-based compensation, amortization of acquired and tangible assets, acquisition-related expenses, amortization of discount on debt and loss from extinguishment of debt, and the tax effect of the non-GAAP adjustments. The differences between the non-GAAP adjusted results and the equivalent GAAP figures are detailed in today's press release. The information and some of our comments discussed on this call may contain forward-looking statements that are subject to risks, uncertainties, and assumptions. I will now turn the call over to Scott. Thank you, Ryan, and good morning, everyone.

I am incredibly proud of what our team accomplished in 2025. We achieved our financial guidance each quarter and for the full year delivered total revenue growth of 8%, cloud revenue growth of 13%, and non-GAAP EPS of $12.30, all at the high end of our guidance range. Since I joined, we sharpened our focus on execution and speed. We leaned in to the AI-first platform-led strategy and doubled down on international expansion and strategic partnerships. Our 2025 results reflect strong execution against that strategy. In 2025, we extended our CX AI market leadership with AI ARR increasing 66% to $328 million, representing 13% of cloud revenue. We set records for acquiring new AI logos, growing 300% year over year, and closed a record number of seven-figure ACV deals for CX1, with 100% including AI. We further strengthened our competitive position with the acquisition of Cognigy, the enterprise leader in agentic AI, making Nice the only player in the CX market with a fully AI-native CX platform. In our international markets, 2025 was a breakthrough year. We landed our largest international deal ever and ultimately grew international revenue by 16%, with growth accelerating to 29% in the fourth quarter. We also expanded our strategic partner ecosystem through deals with ServiceNow, AWS, Snowflake, Salesforce, Deloitte Digital, PwC and RingCentral, as well as several other international SI partners. Our partners continue to be an incredibly valuable and exciting part of our growing contribution, and we expect these partnerships to bring even more in the coming years. Coming out of Q4 with a strong booking momentum and retention, we are entering 2026 on track to re-accelerate cloud revenue growth, which Beth will, of course, cover in more detail shortly. None of this would be possible without a healthy core CCaaS business. We have the leading platform in a growing and healthy market. Seats and interactions on CX1 continued to grow in 2025, and importantly, Only about 40% of contact centers have migrated to CCaaS today, leaving a large and durable on-premise to cloud migration opportunity ahead. We are delivering real transformative value to our customers, and this is translating into strong performance in our core CCaaS business. In Q4, cloud revenue grew 14% year-over-year, and excluding nice Cognigy, grew 12%. Q4 was a record quarter, for new cloud ACV bookings, including and excluding Cognigy, driving cloud backlog growth to 25% including Cognigy and 22% excluding it. Our win rates continue to improve against key CX competitors as customers increasingly favor holistic end-to-end CX platforms over fragmented point solutions. This is reflected in several key deals during the quarter, including a large enterprise win with a leading North American financial services firm. They selected NICE in a competitive displacement of a legacy on-prem environment and will adopt NICE's AI-powered CX1 platform, including NICE Cognigy, to increase service automation, reduce low-value interactions, and deliver more personalized client experiences. Additionally, we won a seven-figure ACV deal with a leading financial services group in EMEA, which selected Nice CX1 to replace a legacy on-premise ACD and consolidate multiple platforms into a unified AI-ready CX foundation. With a strong core, we are positioned to capitalize on the significant CX AI opportunity in front of us. AI is expanding Nice's CX market opportunity beyond the contact center. creating new use cases that are still early in adoption and driving faster expansion as customers scale AI across their organizations. Nice Cognigy strengthens that position. Nice Cognigy is ranked number one by industry analysts and was recently recognized as the only conversational AI platform to receive the customer choice distinction in the latest Gartner Peer Insights Voice of the Customer Report. That customer validation extends across our core platform as well, with CX1 also now recognized as the only CCaaS platform to receive the customer choice distinction. Combining the market leaders in CCaaS and agentic AI for CX into the only AI native CX platform that can operate seamlessly across voice, digital, and AI at enterprise scale allows NICE, to be uniquely positioned to seize the significant CX AI opportunity ahead. Our platform owns the point of engagement and is built on the industry's largest CX data foundation. With decades of CX experience and a platform that supports 20 billion interactions annually, NICE understands customer experience better than anyone. And this leadership is showing in the results. 2026 is the year that NICE Cognigy begins to act as a force multiplier. We recently launched Cognigy Simulator, an AI performance lab that allows for faster, scalable, and more reliable testing of AI agents. And soon we will expand NICE Copilot capabilities with Task Assist for Agents powered by NICE Cognigy. Later this year, we will complete the integration of NiceCognigy into a single, fully native CX1 platform, delivering a seamless AI-native experience at enterprise scale. As we enter 2026, I am very excited about the significant pipeline growth from our Nice install base, and we expect that pipeline to grow as we further integrate NiceCognigy into CX1. While we're incredibly excited about what the future holds for our seamlessly integrated capabilities, NiceCode Energy is seeing strong momentum today. More broadly, we continue to see strong AI-driven enterprise software demand with customers prioritizing investments that deliver clear ROI and measurable outcomes. In Q4, Seven-digit ACV wins included a leading North American consumer services company that expanded its relationship with NICE by adding Cognigy for self-service to its existing CX1 platform. This expansion will replace an AI solution from a CRM provider, delivering a compounding benefits of a unified platform with improved orchestration, deeper insights, and more seamless experiences across channels. In another large enterprise win, a leading North American energy company and an existing CX1 customer expanded its relationship with NICE to accelerate AI-driven customer engagement. By adopting Cognigy for self-service and Copilot to support agents on more complex interactions, the customer aims to improve containment and call handle times while scaling efficiently during periods of elevated demand. The market is still in the early stages of AI adoption, yet it's already driving our growth. But as you heard me say in the Capital Markets Day, we need to make strategic, targeted and time-bound investments in 2026 to seize this opportunity. These investments will focus on innovation, including integrating nice Cognigy and advancing our agentic AI capabilities, while also expanding our go-to-market and delivery capabilities so we're able to execute on the significant growth catalysts we see in 2026 and beyond. These catalysts, including driving AI-first growth across every customer touchpoint, automating end-to-end customer journeys with AI, agentic AI on our platform, capitalizing on the CCaaS cloud migration, accelerating our international expansion and partner ecosystem, and expanding beyond the contact center. Before handing it over to Beth, I want to emphasize two points. First, 2026 is all about speed, and we're moving quickly to seize the opportunity in front of us. And secondly, my conviction today is stronger than when I joined, that AI is a clear tailwind for NICE. Let me be really clear here. NICE is an AI company. Enterprise CXAI requires deep domain expertise, unified data, orchestration and governance at scale, and that is what we do. We have the technology, the data, the domain expertise, and the customer base to win, and we will seize this opportunity. With that, I'll now hand the call over to Beth.