📊 CVLT Key Takeaways
Is Commvault Systems Inc. (CVLT) a Good Investment?
Commvault faces structural headwinds with zero revenue growth and declining profitability (-7.2% net income YoY) despite strong cash generation. The critically impaired balance sheet with only $7.5M equity against $1.9B assets indicates severe leverage and financial distress, likely from past acquisitions or LBOs. While 20% FCF margins show operational cash strength, the lack of top-line growth and margin compression signal deteriorating competitive positioning.
Commvault shows solid underlying software economics with an 81.1% gross margin, positive free cash flow, and an exceptionally strong balance sheet supported by $1.03B in cash and no meaningful leverage. However, flat revenue and a sharp decline in net income and EPS indicate weakening earnings momentum, which tempers the otherwise healthy liquidity and cash generation profile. The fundamentals support resilience, but growth quality and margin durability need to improve before the outlook becomes more compelling.
Commvault Systems Inc. Key Strengths (CVLT)
- Strong free cash flow generation of $237M (20% FCF margin)
- Excellent gross margins of 81.2% indicating pricing power and product quality
- Substantial cash position of $900M providing financial flexibility
- Asset-light business model with minimal capex of $7.5M
- Healthy liquidity ratios (1.95x current ratio) despite balance sheet stress
- Very strong balance sheet with over $1.0B in cash, no meaningful debt, and solid liquidity ratios
- High gross margin indicates attractive core software economics and pricing power
- Positive operating cash flow and free cash flow provide financial flexibility despite earnings pressure
CVLT Stock Risks: Commvault Systems Inc. Investment Risks
- Zero revenue growth (0% YoY) in software industry signals competitive pressure or market saturation
- Negative earnings momentum with net income declining 7.2% YoY despite flat revenue
- Severely impaired balance sheet with stockholders equity of only $7.5M against $1.9B assets indicating high leverage
- Low operating margin of 6.3% for software sector suggests cost structure or execution issues
- Potential debt covenant risks if unreveal liabilities are substantial relative to cash flows
- Revenue was flat year over year, suggesting limited near-term growth momentum
- Net income and diluted EPS declined by more than 50%, pointing to weaker profitability trends
- Operating margin of 6.6% is modest for a software company and leaves less cushion if costs rise
Key Metrics to Watch
- Revenue growth acceleration (currently 0%)
- Operating margin expansion
- Debt-to-EBITDA ratio and leverage levels
- Customer retention/churn rates and ARR growth
- Free cash flow sustainability and conversion ratio
- Revenue growth reacceleration, especially subscription and recurring revenue trends
- Operating margin and free cash flow margin to confirm whether profitability stabilizes or improves
Commvault Systems Inc. (CVLT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 20.0% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
CVLT Profit Margin, ROE & Profitability Analysis
CVLT vs Technology Sector: How Commvault Systems Inc. Compares
How Commvault Systems Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Commvault Systems Inc. Stock Overvalued? CVLT Valuation Analysis 2026
Based on fundamental analysis, Commvault Systems Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Commvault Systems Inc. Balance Sheet: CVLT Debt, Cash & Liquidity
CVLT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Commvault Systems Inc.'s revenue has grown significantly by 54% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.75 reflects profitable operations.
CVLT Revenue Growth, EPS Growth & YoY Performance
CVLT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $262.6M | $11.0M | $0.24 |
| Q2 2026 | $233.3M | $14.7M | $0.33 |
| Q1 2026 | $224.7M | $18.5M | $0.41 |
| Q3 2025 | $216.8M | $11.0M | $0.24 |
| Q2 2025 | $201.0M | $13.0M | $0.29 |
| Q1 2025 | $198.2M | $12.6M | $0.28 |
| Q3 2024 | $195.1M | -$310.0K | $-0.01 |
| Q2 2024 | $188.1M | $4.5M | $0.10 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Commvault Systems Inc. Dividends, Buybacks & Capital Allocation
CVLT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Commvault Systems Inc. (CIK: 0001169561)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779832310.xml | View → |
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779832295.xml | View → |
| May 26, 2026 | 4 | xslF345X06/wk-form4_1779825878.xml | View → |
| May 21, 2026 | 4 | xslF345X06/wk-form4_1779399312.xml | View → |
| May 21, 2026 | 4 | xslF345X06/wk-form4_1779399305.xml | View → |
❓ Frequently Asked Questions about CVLT
What is the AI rating for CVLT?
Commvault Systems Inc. (CVLT) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CVLT's key strengths?
Claude: Strong free cash flow generation of $237M (20% FCF margin). Excellent gross margins of 81.2% indicating pricing power and product quality. ChatGPT: Very strong balance sheet with over $1.0B in cash, no meaningful debt, and solid liquidity ratios. High gross margin indicates attractive core software economics and pricing power.
What are the risks of investing in CVLT?
Claude: Zero revenue growth (0% YoY) in software industry signals competitive pressure or market saturation. Negative earnings momentum with net income declining 7.2% YoY despite flat revenue. ChatGPT: Revenue was flat year over year, suggesting limited near-term growth momentum. Net income and diluted EPS declined by more than 50%, pointing to weaker profitability trends.
What is CVLT's revenue and growth?
Commvault Systems Inc. reported revenue of $1.2B.
Does CVLT pay dividends?
Commvault Systems Inc. does not currently pay dividends.
Where can I find CVLT SEC filings?
Official SEC filings for Commvault Systems Inc. (CIK: 0001169561) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CVLT's EPS?
Commvault Systems Inc. has a diluted EPS of $1.58.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CVLT's fundamental grade?
Based on our AI fundamental analysis in June 2026, Commvault Systems Inc. has a C grade with 75% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CVLT stock overvalued or undervalued?
Valuation metrics for CVLT: ROE of 942.8% (sector avg: 22%), net margin of 6.0% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
What is CVLT's AI grade for 2026?
Our dual AI analysis gives Commvault Systems Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CVLT's free cash flow?
Commvault Systems Inc.'s operating cash flow is $244.7M, with capital expenditures of $7.5M. FCF margin is 20.0%.
How does CVLT compare to other Technology stocks?
Vs Technology sector averages: Net margin 6.0% (avg: 18%), ROE 942.8% (avg: 22%), current ratio 1.95 (avg: 2.5).
Why is CVLT's return on equity (ROE) so high?
Commvault Systems Inc. has a return on equity of 942.8%, significantly above the Technology sector average of 22%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 6.0% net margin.