Commvault Systems, Inc. (CVLT): BCG Matrix [Dec-2025 Updated]

You're looking for the hard truth on where Commvault Systems, Inc. (CVLT) is placing its bets as we close out 2025, so let's map their business units using the BCG lens. The picture is clear: the hyper-growth Metallic SaaS Platform is firing on all cylinders, driving a 63.2% ARR jump, while the core subscription engine hits $780 million. Still, we have to balance that against the massive, high-margin cash flow from legacy products-like those term licenses near 98% margin-and the big question marks like the Satori Cyber buy, which needs to prove its scale. Below, we break down exactly which segments are funding the future and which ones you should definitely start trimming.

Background of Commvault Systems, Inc. (CVLT)

You're looking at Commvault Systems, Inc. (CVLT) as of late 2025, and the story here is one of successful transformation toward a subscription-first model. Commvault positions itself as the 'gold standard in cyber resilience,' helping more than 100,000 organizations keep their data safe and their businesses moving forward. Honestly, their core pitch is that they offer the only cyber resilience platform that combines top-tier data security and rapid recovery across any workload, anywhere, all while aiming for the lowest Total Cost of Ownership (TCO).

The fiscal year ended March 31, 2025, was definitely a record-breaking period for the company under President and CEO Sanjay Mirchandani. For that full fiscal year 2025, total revenues hit $996 million, marking a 19% increase year over year. The real engine, though, was the subscription business; subscription revenue reached $590 million, which was up 37% from the prior year.

This shift is clearly reflected in their recurring revenue metrics. Total Annualized Recurring Revenue (ARR) finished fiscal 2025 at $930 million, growing 21% over the year. Even more telling, Subscription ARR grew 31% to $780 million, making up 84% of the total ARR base. Plus, they generated strong cash, with full-year operating cash flow at $207 million and free cash flow at $204 million.

The momentum carried right into the current fiscal year. By the second quarter of fiscal 2026, which ended September 30, 2025, Commvault announced it had achieved $1 billion in total ARR, hitting that milestone two quarters ahead of schedule. At the close of fiscal 2025, the company reported serving over 12,000 subscription customers.

Commvault Systems, Inc. (CVLT) - BCG Matrix: Stars

You're looking at the engine room of Commvault Systems, Inc. (CVLT)'s current growth story, the segment where high market share meets a rapidly expanding market. These are the products that demand significant investment to maintain their leading position, but they are the ones that will eventually fuel the future Cash Cow quadrant.

Metallic SaaS Platform is definitely showing hyper-growth characteristics. For the first quarter of fiscal year 2026 (Q1 FY2026), the Annualized Recurring Revenue (ARR) specifically for the SaaS offering soared by 63.2% year-over-year, reaching $306.9 million. This metric, which the CEO noted as 'hyper-growth,' is a clear indicator of capturing that cloud-first market share. The platform surpassed 8,000 customers in that same quarter.

The overall Subscription ARR remains the core growth engine for Commvault Systems, Inc. (CVLT). For the full fiscal year 2025, Subscription ARR hit $780 million, representing a year-over-year increase of 31%. This success is built on a foundation of a growing customer base; in Q3 of fiscal year 2025, the total customer count was up 31% year-over-year to 11,500. By Q1 FY2026, the total subscription customer count had climbed further to over 12,000.

The market demand for Cyber Resilience Offerings is what fuels this growth. Commvault Systems, Inc. (CVLT) continues to be recognized as a Leader in the Gartner Magic Quadrant for Backup and Data Protection Platforms for the 14th consecutive time. This market positioning helps drive net-new customer wins, as the overall environment for cyber resilience is booming, which is a key driver management emphasizes.

Furthermore, adoption in emerging channels is strong. In Q1 FY2026, Commvault Systems, Inc. (CVLT) reported achieving triple-digit growth in transactions through cloud marketplaces. This shows that the adoption curve for their solutions is steepening across different routes-to-market, not just direct enterprise sales.

Here's a quick look at the key financial markers underpinning the Star positioning as of the latest reported periods:

The investment thesis here is clear: these products are leading in high-growth segments, but they require capital to maintain that lead. The strategy is to invest heavily now to ensure these Stars mature into the Cash Cows when the overall market growth decelerates.

• Market Share Leadership: Sustained recognition as a Gartner Magic Quadrant Leader.
• High Growth Rate: SaaS ARR growth of 63.2% in Q1 FY2026.
• Revenue Contribution: Subscription ARR reached $780 million in FY2025.
• Adoption Momentum: New customer wins fueled by demand for cyber resilience.
• Channel Strength: Triple-digit growth in cloud marketplace transactions.

Commvault Systems, Inc. (CVLT) - BCG Matrix: Cash Cows

You're looking at the bedrock of Commvault Systems, Inc.'s financial stability here; these are the established businesses that print money. Cash Cows, by definition, have a high market share in mature segments, and they fund all the riskier bets in the portfolio. They don't need massive marketing spend because everyone already knows the product.

The core of this stability comes from the licensing structure that Commvault Systems, Inc. has successfully shifted toward. The Core Term-Based Licenses are the gold standard for predictable, high-margin revenue. We're talking about gross margins that analysts peg near 98% for this segment, which is defintely what funds the R&D you see elsewhere in the company. For Q2 FY2026, the term-based license revenue alone hit $93 million, showing a 10% year-over-year increase.

This segment feeds directly into the overall recurring revenue strength. The Total Annual Recurring Revenue (ARR) for the full fiscal year 2025 closed strong at $930 million, up 21% year-over-year. By Q2 FY2026, that base had already grown to $1,043 million, illustrating the high stickiness of these contracts. The Subscription ARR, which includes these licenses, was $894 million in Q2 FY2026, representing 86% of the total ARR.

Here's a quick look at how the key recurring revenue components stacked up in Q2 FY2026:

The support side of the house also contributes reliably. The Customer Support Services revenue stream, which is tied to the large, sticky installed base, generated $76.5 million in Q4 FY2025. To put that in context, total revenue for that quarter was $275 million, so support is a significant, steady component of the top line.

The profitability from these mature lines is clear in the overall financial health. The Free Cash Flow (FCF) generation was robust for the full fiscal year 2025, landing at $204 million. This cash is what the company uses to execute its capital allocation strategy, including share buybacks. For instance, in Q4 FY2025 alone, Commvault Systems, Inc. repurchased $30 million of common stock.

You can see the high-margin nature reflected in the broader company profitability metrics, even as they invest in growth areas:

• Full Fiscal Year 2025 Non-GAAP EBIT Margin: 21.1%.
• Q2 Fiscal 2026 Non-GAAP EBIT Margin: 18.6%.
• FY2026 Non-GAAP Gross Margin Guidance Range: 80.5% to 81.5%.

These are the units you want to keep running smoothly. They provide the fuel for the entire operation, meaning you want to invest just enough to maintain efficiency, not to chase growth where the market has already matured.

Commvault Systems, Inc. (CVLT) - BCG Matrix: Dogs

You're looking at the parts of Commvault Systems, Inc. that aren't driving the high-growth subscription narrative. These are the legacy revenue streams, the ones with low market share in markets that aren't expanding much anymore. They tie up capital without offering much return, which is why management focuses on streamlining them.

Perpetual Licenses fit squarely here. This is the old way of selling software, and you see the numbers reflect that shift. For the fourth quarter of fiscal year 2025, this legacy revenue type showed a slight decline, landing at only $14.96 million. For the full fiscal year 2025, perpetual license revenue decreased by 3% year over year, contributing just 6% of total revenues, down from 7% in fiscal 2024. The company's preferred path is clearly term-based licenses, making this segment a candidate for minimization. Here's the quick math: Subscription revenue was $173 million in Q4 FY2025, making the legacy perpetual license revenue less than 9% of that quarter's total revenue.

The Older On-Premises Software business is intrinsically linked to these perpetual sales. These products are tied to traditional data center architectures where market growth has slowed considerably compared to cloud adoption. The minimal new sales focus here means these units are consuming resources primarily for maintenance rather than innovation. The data shows the company is actively moving customers away from this model.

Non-Strategic Professional Services also fall into this low-share, low-growth bucket that needs streamlining. While total revenue for Q4 FY2025 was $275 million, the 'Other services' component, which includes many professional services, brought in just $10.34 million. This segment experienced a more notable drop in performance. For the full fiscal year 2025, other services revenue declined by 6% year over year due to less delivery compared to the prior period. These services are not the focus, and their declining revenue share suggests they are being phased out or minimized.

You can see the composition of the non-subscription revenue in the fourth quarter of fiscal year 2025:

The core issue with these segments is the cash trap potential, even if they are currently breaking even. The capital tied up in supporting legacy perpetual contracts and associated support renewals could be better deployed. For instance, customer support revenue attached to perpetual license support renewals saw a decrease of $25.7 million in FY2025, though this was partially offset by growth in support for term-based licenses.

The units that define the Dogs quadrant for Commvault Systems, Inc. based on the Q4 FY2025 data are:

• Perpetual Licenses revenue at $14.96 million in Q4 FY2025.
• Other Services revenue at $10.34 million in Q4 FY2025.
• Customer Support revenue at $76.5 million in Q4 FY2025, with a portion tied to declining perpetuals.
• The overall trend shows legacy revenue streams shrinking as a percentage of the total, falling from 49% of total revenue in FY2024 to 41% in FY2025 (Total Revenue $996M, Subscription $590M).

Expensive turn-around plans for these units are generally ill-advised when the market itself is low-growth. Finance: draft 13-week cash view by Friday.

Commvault Systems, Inc. (CVLT) - BCG Matrix: Question Marks

Question Marks for Commvault Systems, Inc. (CVLT) are those business areas or product lines operating in high-growth markets but currently holding a relatively low market share, thus consuming cash for investment while awaiting a clear path to Star status.

Satori Cyber Acquisition: New data security and governance product in a high-growth space, but small and initially dilutive to margins.

The planned acquisition of Satori Cyber Ltd, announced in July 2025, is a clear investment into the high-growth data and AI security sector. This move aims to integrate capabilities for securing structured data and AI training data across cloud-native platforms. The financial terms of this deal have not been publicly disclosed, which is typical for an initial investment that is expected to be dilutive as Commvault Systems, Inc. integrates and scales the new technology. This represents a significant cash outlay for future market positioning rather than current high returns.

ThreatWise: Deception technology for cyber-resilience, a new offering with high market potential but an unproven revenue scale.

Offerings like ThreatWise are part of the new product suite that contributed to the strong performance in the fourth quarter of fiscal year 2025. While the cyber-resilience market is booming, new, specialized technologies like deception technology are still in the process of gaining significant, measurable revenue scale relative to the core business. These products require heavy marketing and sales investment to drive adoption, fitting the Question Mark profile perfectly.

International Expansion (APAC/EMEA): Regions with high potential growth but lower current revenue contribution compared to the Americas.

The geographic split in the fourth quarter of fiscal 2025 clearly illustrates a disparity in market penetration. The Americas region showed a year-over-year revenue growth of 29%, whereas the International region grew by 15%. This lower growth rate in the International segment suggests a lower current market share, even if the underlying market growth potential is high, requiring focused investment to catch up.

Multi-Product Adoption: Strategy to increase customer lifetime value, but its full revenue impact is still being measured.

The strategy to sell multiple products is showing traction, evidenced by reigniting growth in the land business, adding nearly 3,000 new subscription customers in fiscal year 2025. The success of the SaaS component, which is a key part of this cross-sell effort, is strong, with the SaaS Net Dollar Retention Rate hitting 127% in Q4 FY2025. However, the overall revenue contribution from these newer, often bundled, offerings is still being scaled up to transform them into Stars.

Here's a quick look at the growth metrics supporting the high-growth, lower-share assessment for these areas, using the latest reported figures from Q1 FY2026 (quarter ending June 30, 2025) and Q4 FY2025:

These units are consuming capital to fuel market penetration, which is the defining characteristic of a Question Mark. If the investment in Satori Cyber and the multi-product push successfully translate into market share gains, these could become the next Stars. If not, they risk becoming Dogs as market growth slows or investment stalls.