Commvault Systems, Inc. (CVLT): Business Model Canvas [Dec-2025 Updated]

You're digging into Commvault Systems, Inc.'s business model to see if their pivot to the cloud is really paying off, and honestly, the numbers from fiscal year 2025 tell a compelling story. As someone who's watched this space for twenty years, I can tell you their canvas is now dominated by recurring revenue, pulling in $590 million from subscriptions on their way to $996 million total revenue. The real kicker is the SaaS engine: a 125% Net Dollar Retention Rate as of September 2025 proves customers are sticking around and spending more, backed by a strong balance sheet with over $1,064 million in cash. Let's break down the nine blocks to see exactly how they built this cyber resilience machine.

Commvault Systems, Inc. (CVLT) - Canvas Business Model: Key Partnerships

You're looking at how Commvault Systems, Inc. builds value through its network of collaborators, which is essential for its unified resilience strategy in the hybrid cloud era. The strength of the partner ecosystem is directly tied to the company's financial performance, especially in its shift to subscription and SaaS models.

Strategic alliances with hyperscalers like AWS form a critical pillar. Commvault Systems, Inc. solidified this relationship by being named the 2025 AWS Global Storage Partner of the Year, announced on December 2, 2025, at AWS re:Invent 2025. This recognition highlights joint customer success at scale, focusing on cloud-native data protection and enterprise-grade storage operations using AWS object, file, and block storage services. Further validating this deep integration, Commvault achieved the AWS Resilience Competency in the Recovery category on December 1, 2025, confirming proficiency across AWS native, hybrid, and multi-cloud environments.

The company's success in the subscription space is clearly linked to these hyperscaler and broader ecosystem plays. For instance, in the first quarter of fiscal year 2026, Commvault Systems, Inc.'s SaaS Annual Recurring Revenue (ARR) soared 63.2 percent to $306.9 million. The total subscription count reached 12,900, marking a 30 percent year-over-year increase. This momentum is also reflected in the high customer retention, with the SaaS Net Dollar Retention (NRR) rate sitting at 125% as of September 30, 2025.

Global hardware and cloud vendors provide the necessary infrastructure foundation. Commvault Systems, Inc. announced an expanded strategic partnership with HPE on June 24, 2025, deepening technology integration across HPE GreenLake and Commvault Cloud. This collaboration includes integrating and offering HPE Zerto Software to Commvault Cloud customers for managing virtualized workloads, aiming for near-zero Recovery Point Objectives (RPOs). On the cloud vendor side, Commvault delivered complete cyber resilience for the AI-Powered Enterprise at Microsoft Ignite 2025 in November 2025.

The integration with storage technology partners is equally important for high-performance needs. Commvault unveiled HyperScale Flex, which supports certified storage offerings from vendors like Pure Storage. The co-engineered solutions with Pure Storage were a focus at Pure//Accelerate 2025 in June 2025, demonstrating the ability to achieve data recovery in minutes.

The channel is a primary route to market, including the delivery of the Metallic SaaS offering through Managed Service Providers (MSPs). While specific 2025 revenue splits are not detailed, the focus on this route is long-standing, with a previous internal projection suggesting the business mix would shift to about 60 percent from managed services. The Metallic SaaS offering, now integrated into Commvault Cloud, surpassed 8,000 customers in the first quarter of fiscal year 2026. Furthermore, Commvault Systems, Inc. noted tremendous success in emerging routes-to-market, achieving triple-digit growth in marketplace transactions during Q1.

The overall success driven by this partner ecosystem contributed to Commvault Systems, Inc. surpassing guidance, with total revenues for the second quarter of fiscal year 2026 reaching $276 million, an 18% year-over-year increase. The updated guidance for the full fiscal year 2025 pointed toward total revenues between $980 million and $985 million.

Here's a snapshot of the key partnership validation and financial scale:

Partner Category	Key Partner/Validation Event	Date/Metric	Associated Financial/Scale Data
Hyperscaler Alliance	2025 AWS Global Storage Partner of the Year	December 2, 2025	SaaS ARR: $306.9 million (Q1 FY2026)
Hyperscaler Alliance	AWS Resilience Competency (Recovery)	December 1, 2025	Total ARR: $1,043 million (as of Sep 30, 2025)
Hardware/Cloud Vendor	Expanded Strategic Partnership with HPE	June 24, 2025	FY2025 Total Revenue Guidance: $980 million to $985 million
Cloud Vendor Event	Microsoft Ignite Presence	November 13, 2025	SaaS ARR Growth: 63.2 percent (Q1 FY2026)
Technology Integration	Collaboration with Pure Storage Showcase	June 2025	Metallic SaaS Customers: Passed 8,000 (Q1 FY2026)
Channel/MSP Focus	Metallic for MSPs Platform	Historical Goal	SaaS NRR: 125% (as of Sep 30, 2025)

The focus on the channel and cloud marketplaces is driving tangible results, with Commvault reporting triple-digit growth in marketplace transactions in Q1.

Finance: review Q3 FY2026 guidance impact from these partnership wins by next Tuesday.

Commvault Systems, Inc. (CVLT) - Canvas Business Model: Key Activities

You're looking at the core engine driving Commvault Systems, Inc.'s performance as of late 2025. These are the things the company absolutely must execute well to meet its targets, especially given the market's focus on cyber resilience.

Developing and maintaining the Commvault Cloud cyber resilience platform

This activity centers on delivering a unified data security and recovery platform for the hybrid enterprise. The platform is described as enabling true data security and recovery in the cloud, allowing customers to back up, monitor, report, manage, and recover data from one central cloud-based platform. This approach claims a Total Cost of Ownership (TCO) advantage of 3-5x lower than less complete solutions. As of the second quarter of fiscal year 2026 (Q2'26), ending September 30, 2025, Commvault Systems, Inc. reported having 13,400 Subscription Customers, which is an increase of 28% year over year.

The platform's success is reflected in the recurring revenue metrics:

• Total Annualized Recurring Revenue (ARR) reached $1,043.3 million as of Q2'26, growing 22% year over year.
• Subscription ARR stood at $894 million, marking a 30% year-over-year growth.
• The Subscription ARR accounted for a significant portion of the total ARR.

Global sales execution and channel enablement programs

Effective execution across sales channels is critical for driving the adoption of the unified platform. The company emphasizes its partner ecosystem strength, which includes Global System Integrators, Solution Providers, and Managed Service Providers. For the full fiscal year 2025, sales executed through the distribution agreement with Arrow accounted for approximately 35% of total revenues. The focus on 'land and expand' was noted as a key driver, with Q1 of fiscal year 2026 seeing the best land and expand quarter ever across both software and SaaS offerings. Furthermore, the company achieved triple-digit growth in cloud marketplace transactions during that same quarter, including multiple deals in the six-figure and seven-figure range.

Here's a look at the growth in the key recurring revenue components as of late 2025:

Metric (As of Q2 FY2026, Sept 30, 2025)	Amount	Year-over-Year Growth
Total ARR	$1,043.3 million	+22%
Subscription ARR	$894 million	+30%
SaaS ARR	$336 million	+56%

Managing the Metallic SaaS cloud infrastructure and operations

The Metallic SaaS offering is a major growth vector, representing the Software as a Service delivery model for Commvault's capabilities. Managing this infrastructure involves ensuring scalability, security, and performance for cloud-native workloads. The growth in this segment is substantial. For the fiscal year ended March 31, 2025 (FY2025), SaaS ARR was $281 million at the end of Q4. By Q2'26 (September 30, 2025), this figure had accelerated to $336 million, representing 56% growth YoY. The SaaS Net Dollar Retention Rate (NRR) for the end of FY2025 was 127%, indicating strong expansion within the existing SaaS customer base.

Research and development (R&D) for AI-enabled data protection features

Commvault Systems, Inc. is actively integrating artificial intelligence into its platform to enhance cyber resilience capabilities. The platform is explicitly described as being AI-enabled. While specific R&D spending figures for the latest period aren't detailed in the same way as revenue, the focus on innovation is clear, with new products mentioned in Q4 FY2025, such as AirGap Protect, ThreatScan, Cleanroom, and Cloud Rewind. This R&D focus supports the goal of delivering the fastest, most complete recoveries.

Acquiring and integrating strategic technologies, like Appranix in FY2025

Strategic acquisitions are a key activity for extending and enhancing product offerings in the cyber resiliency market. The acquisition of Appranix, Inc., a cloud cyber resilience company, was completed on April 15, 2024, falling within the reporting for fiscal year 2025. The total purchase price for Appranix was $26,272 thousand (or $26.272 million). This consideration consisted of $21,032 thousand in cash, plus the fair value of unregistered restricted stock units totaling $4,900 thousand. Commvault Systems, Inc. incurred costs related to this acquisition of approximately $683 thousand during fiscal year 2025, which were recorded in general and administrative expenses.

You should track the integration success by monitoring the overall growth in Subscription Customers, which hit 13,400 by September 30, 2025.

Finance: draft 13-week cash view by Friday.

Commvault Systems, Inc. (CVLT) - Canvas Business Model: Key Resources

The foundation of Commvault Systems, Inc.'s business model rests on several critical, tangible, and intangible assets as of late 2025. These resources are what enable the delivery of its unified cyber resilience platform across complex enterprise environments.

The core intellectual property is embodied in the Commvault Cloud platform, which, following the recent Cloud Unity platform release, unifies data security, cyber recovery, and identity resilience across cloud, SaaS, on-premises, and hybrid environments. This platform is AI-enabled, setting a new benchmark for cloud-native data protection, which is vital for enterprises in the AI era.

A key measure of the recurring value Commvault captures is its Annualized Recurring Revenue (ARR) base. This metric surpassed a major milestone, hitting $1,043 million in the second quarter of fiscal year 2026 (Q2 FY2026). This figure represents a 22% year-over-year growth. Furthermore, the subscription ARR component, which is the engine of the recurring model, reached $894 million, growing 30% year-over-year.

The human capital supporting this technology is substantial. Commvault Systems, Inc. reported a total number of employees reaching 3,300 in 2025, an increase from 2,882 in 2024. This workforce, which the company states is over 2,700 employees, is tasked with engineering and selling these complex solutions globally. The company maintains 29 offices globally.

The operational reach is supported by a global data center footprint that underpins the delivery of its SaaS offering, including the Metallic SaaS component. The Commvault Cloud Unity platform is specifically designed for multi-cloud and hybrid support, centralizing protection across all workloads, clouds, and locations. This infrastructure is recognized by industry analysts, with Commvault being named a Leader in the IDC MarketScape: Worldwide Cyber-Recovery 2025 Vendor Assessment.

Financially, Commvault maintains a strong balance sheet, which provides stability for ongoing investment and strategic moves, such as the recent acquisition of Satori Cyber Ltd. As of September 30, 2025, the company reported $1,064 million in cash and cash equivalents. This strong liquidity position is further evidenced by the operating cash flow of $77 million and free cash flow of $74 million reported for the same quarter.

Here's a quick look at the key financial metrics underpinning these resources as of the end of Q2 FY2026:

Financial Metric	Value (Q2 FY2026 or Sept 30, 2025)	Context/Growth
Total Annualized Recurring Revenue (ARR)	$1,043 million	Up 22% Year-over-Year
Subscription ARR	$894 million	Up 30% Year-over-Year
SaaS Revenue	$80 million	Up 61% Year-over-Year
Cash and Cash Equivalents	$1,064 million	As of September 30, 2025
Total Employees	3,300	As of 2025
Operating Cash Flow (Q2 FY26)	$77 million	For the three months ended September 30, 2025

The strategic focus on recurring revenue streams is clear when looking at the composition of the business:

• Subscription revenue for Q2 FY2026 was $173 million, marking a 29% increase year-over-year.
• Subscription ARR now represents 86% of total ARR.
• The company's subscription customer base expanded to 13,400, a 28% year-over-year growth.
• SaaS Net Dollar Retention Rate (NRR) stood at 125% as of September 30, 2025.

Also, Commvault Systems, Inc. reported total assets of $1.12 billion and total equity of $325 million in 2025. The company also executed a $900 million convertible debt offering with a 0% coupon during the quarter.

Finance: finalize the Q3 FY2026 cash flow projection by next Tuesday.

Commvault Systems, Inc. (CVLT) - Canvas Business Model: Value Propositions

You're looking at the core reasons why large enterprises are sticking with and expanding their Commvault Systems, Inc. footprint, especially as cyber threats keep evolving. The value proposition here isn't just about backup; it's about guaranteed business continuity at scale, which the numbers clearly back up.

Unified cyber resilience and rapid recovery at enterprise scale

Commvault Systems, Inc. positions itself as the gold standard for cyber resilience, helping more than 100,000 organizations keep their data safe and businesses moving forward. This focus on enterprise-scale resilience is validated by external analysis. For instance, in the 2025 Gartner Critical Capabilities for Backup and Data Protection Platforms report, Commvault Systems was recognized as the only vendor to receive a score of 4.0 or higher out of 5 across all six Use Cases evaluated. This included the critical areas of Disaster Recovery and Ransomware Protection, Detection and Recovery. Furthermore, the company was named a Leader in the IDC MarketScape: Worldwide Cyber-Recovery 2025 Vendor Assessment, announced in September 2025. This recognition speaks directly to the platform's architecture and ability to handle complex recovery scenarios, such as the reported success of reducing data recovery time from weeks to hours for a major university client in late 2025.

Here's a snapshot of the external validation for their resilience platform:

Analyst Report / Metric	Key Finding / Score	Applicable Use Case
2025 Gartner Critical Capabilities	Highest Rank in 5 of 6 Use Cases	Hybrid, Multicloud, SaaS, Data Services, Disaster Recovery
2025 Gartner Critical Capabilities	Score of 4.0 or higher out of 5	All Six Use Cases (including Ransomware Recovery)
IDC MarketScape: Cyber-Recovery 2025	Named a Leader	Cyber Recovery Architecture and Workload Breadth
Customer Recovery Time Example	Reduced recovery from weeks to hours	Rapid Recovery Validation

Simplicity and flexibility through the Metallic SaaS delivery model

The Metallic Software as a Service (SaaS) offering is clearly a major growth engine, demonstrating strong customer adoption and revenue quality. You can see this in the recurring revenue metrics. For the full fiscal year 2025, Subscription ARR grew to $780 million, which represented 84% of the Total ARR of $930 million. The SaaS component of that is accelerating fast. In the most recently reported quarter (Q1 2026), SaaS ARR soared 63.2% year-over-year to reach $306.9 million, passing 8,000 customers for the Metallic offering alone. This indicates that the flexibility of the SaaS model is resonating strongly with the market, especially when paired with the platform's ability to land and expand within existing accounts, evidenced by a SaaS Net Dollar Retention Rate of 127% for fiscal year 2025.

The growth in the subscription business is a key part of the story:

• SaaS ARR growth (Q1 2026): 63.2%.
• Total Subscription ARR (FY 2025): $780 million.
• SaaS Net Dollar Retention Rate (FY 2025): 127%.
• Total Subscription Count (Q1 2026): Reached 12,900.
• Metallic Customer Count (Q1 2026): Surpassed 8,000.

Comprehensive data protection across hybrid, multi-cloud, and SaaS workloads

Commvault Systems, Inc.'s platform is designed to cover the entire modern data estate, which is why it scored highly across the board in analyst reports. The platform's ability to handle hybrid and multi-cloud environments is a core strength. This is reflected in the 2025 Gartner Critical Capabilities where they ranked highest in the Hybrid and Multicloud Use Cases. Furthermore, the company solidified its cloud integration value proposition by achieving the AWS Resilience Competency in the Recovery category in December 2025. This achievement is supported by a new multi-product listing in the AWS Marketplace, which includes Commvault Cloud, Cloud Rewind, and Clumio, making procurement easier for customers already invested in the AWS ecosystem. Overall, the business is showing strong top-line performance driven by this broad coverage, with total revenues for fiscal year 2025 reaching $996 million, a 19% increase year-over-year.

Lowest Total Cost of Ownership (TCO) for enterprise data management

The claim of lowest TCO is a direct appeal to the finance side of the house, suggesting consolidation and efficiency gains. Commvault Systems, Inc. explicitly states its platform delivers data security and rapid recovery at the lowest TCO across any workload. This isn't just talk; we see evidence of consolidation driving savings. For example, one of Europe's largest financial institutions used Commvault Hyperscale X to significantly reduce its hardware costs while simplifying operations and enhancing resilience. The company's overall financial health supports this value, as the Non-GAAP Operating Margin for the full fiscal year 2025 was 21.1%, showing they manage costs effectively while delivering value. To be fair, the current Price-to-Earnings ratio of 67.9x as of December 2025 suggests the market is pricing in significant future TCO-driven earnings expansion compared to the industry average of 31.8x.

AI-enabled platform for threat detection and automated recovery

The integration of Artificial Intelligence is a newer, but critical, value driver for threat management. Commvault Systems, Inc. is actively showcasing its AI-enabled recovery innovations, such as Synthetic Recovery and Identity Resilience, at key industry events like the Gartner IOCS Conference in 2025. This AI focus is recognized as a strength, highlighting the platform's AI-driven protection and recovery capabilities across complex hybrid and multi-cloud setups, especially for workloads on platforms like AWS. The company achieved a Rule of 40 metric of 41 for the full fiscal year 2025, which is a strong indicator of balancing growth and profitability-a feat made easier when automation and AI streamline operations and recovery processes.

Key AI/Automation Indicators:

• AI-enabled innovations showcased: Synthetic Recovery and Identity Resilience.
• Recognition for AI-driven protection and recovery capabilities.
• FY 2025 performance metric: Achieved a Rule of 40 of 41.

Finance: draft 13-week cash view by Friday.

Commvault Systems, Inc. (CVLT) - Canvas Business Model: Customer Relationships

You're looking at how Commvault Systems, Inc. keeps its customers engaged and growing their spend, which is key since their Subscription ARR hit $894 million as of September 30, 2025, up 30% year-over-year.

For your largest, most complex deployments, Commvault Systems, Inc. definitely leans on dedicated enterprise account management. This high-touch approach is necessary when dealing with the core of their business, which historically focused on large global enterprises. They use this direct relationship to manage complex, multi-cloud environments and drive platform adoption across the organization.

For the mid-market and regional customers, the relationship is heavily partner-led. Commvault Systems, Inc. relies on an extensive partner ecosystem that includes Global Systems Integrators, Cloud Partners, and Alliance Partners who deliver tailored solutions and expert support. This structure lets them scale support efficiently, especially since the partner base has indicated a strategic shift toward managed services, aiming for about 60 percent of the business mix from that channel.

The Metallic SaaS offering, which is a division of Commvault Systems, Inc., is designed for a different kind of relationship, emphasizing self-service and automated support. This model is perfect for customers, including those in the SMB space, who want next-generation Software as a Service data protection without the overhead of traditional management. The SaaS revenue itself was $80 million for the quarter ending September 30, 2025, showing significant traction.

The success of this multi-faceted approach is clearly visible in the retention metrics. When customers expand their use of the SaaS platform, it shows the relationship is sticky and valuable. Here's a quick look at the key customer value indicators as of the end of Q2 Fiscal 2026:

Metric	Value as of September 30, 2025	Context
SaaS Net Dollar Retention Rate (NRR)	125%	Indicates strong expansion from existing SaaS customers.
Total Annual Recurring Revenue (ARR)	$1,043 million	Represents the recurring revenue base from all customer contracts.
Subscription ARR	$894 million	The core recurring revenue stream, making up 86% of Total ARR.
SaaS ARR	$336 million	Represents the fastest-growing portion of the recurring base.

To ensure customers maximize their investment, Commvault Systems, Inc. also provides professional services and consulting. This is critical for smooth implementation and ongoing optimization of their unified hybrid cloud platform, especially as enterprises adopt new offerings like HyperScale Edge or integrate security services like those from the Satori Cyber Ltd. acquisition.

Finance: draft 13-week cash view by Friday.

Commvault Systems, Inc. (CVLT) - Canvas Business Model: Channels

You're looking at how Commvault Systems, Inc. gets its software and services into the hands of customers as of late 2025. The strategy is clearly multi-pronged, leaning heavily on the channel and the growth of its SaaS offering, Metallic.

Direct enterprise sales force for major accounts and strategic deals

The direct sales team focuses on the big targets, the enterprise accounts where complex, strategic deals close. The success here is visible in the size of the deals moving through the pipeline.

For the third fiscal 2025 quarter, revenue from term software transactions over $100,000 increased by 18% year-over-year. This acceleration included more than a dozen wins over $1 million in that same quarter.

Global network of value-added resellers (VARs) and distributors

Commvault Systems, Inc. emphasizes a broad partner ecosystem, which the CEO noted has the strongest relationship they've had with the channel as of late 2025. This network is critical for market reach beyond the direct sales force.

• The fiscal year 2025 saw record contributions from partners driving growth.
• Key additions to the partner alliance ecosystem in the run-up to late 2025 included CrowdStrike, Deloitte, HPE, and Kyndryl.
• The company categorizes partners into types including Reseller Partners, Managed Service Providers, Technology Partners, Cloud, Security & AI, Global System Integrators, and Aggregators.

Cloud marketplaces (e.g., AWS Marketplace) for streamlined procurement

The use of cloud marketplaces is a significant growth vector, showing high transaction velocity. Commvault Systems, Inc. was recognized as the AWS Global Storage Partner of the Year in December 2025, validating this route-to-market.

Here's the quick math on marketplace momentum:

Metric	Data Point (Latest Reported Period)
Marketplace Transaction Growth (QoQ, Q4 FY2025)	45% increase
Marketplace Transaction Growth (YoY, Q4 FY2025)	Over 250% increase
Marketplace Transaction Growth (One Quarter, Q1 FY2026)	Triple-digit growth
Deal Size (One Quarter, Q1 FY2026)	Multiple six-figure and seven-figure deals

This success is tied to joint customer success at scale using AWS object, file, and block storage services.

Managed Service Providers (MSPs) offering Commvault as a service

The Managed Service Provider Program is designed to accelerate time to market and grow the customer base for partners delivering consumption-based solutions. This channel directly supports the shift toward as-a-service consumption models, which is heavily reflected in the subscription metrics.

Online presence and digital marketing for Metallic SaaS acquisition

The Metallic SaaS offering is a primary driver of new customer acquisition, often bringing in logos new to the Commvault Systems, Inc. installed base. The focus is clearly on growing this recurring revenue stream.

The subscription and SaaS metrics as of late 2025 show this channel's impact:

Metric	Value (As of Q2 FY2026, ended Sep 30, 2025)	Growth Rate (YoY)
Total Subscription ARR	$894 million	30%
SaaS ARR	$335.7 million	56%
Total Subscription Customers	Over 13,000	N/A
Metallic Customers (Reported Earlier)	Surpassed 8,000	N/A
SaaS Net Dollar Retention Rate (NRR)	125%	N/A

For the full fiscal year 2025, total subscription revenue reached $590 million, up 37% year-over-year. Security-focused offerings, which are part of the broader platform including SaaS, represented nearly 40% of net new ARR in the second quarter of fiscal 2026.

If the SaaS NRR dips below 120%, the land-and-expand motion needs a review.

Finance: review the Q3 FY2026 forecast for any channel conflict indicators between direct and partner sales of term licenses.

Commvault Systems, Inc. (CVLT) - Canvas Business Model: Customer Segments

You're looking at the core of Commvault Systems, Inc.'s market strategy, which clearly splits its focus to serve different needs with tailored offerings. The customer base is broad, helping more than 100,000 organizations keep data safe globally.

The company serves a spectrum of clients, from large global enterprise companies needing complex, multi-cloud data protection to small or mid-sized businesses and government agencies. This dual focus allows Commvault Systems, Inc. to capture market share across the board, which is reflected in their strong subscription growth across all segments.

The simpler, Software as a Service (SaaS) offering, Metallic, is specifically targeting the mid-market companies looking to adopt modern, simpler data protection. By the end of fiscal year 2025, the Metallic SaaS backup offering had already passed 8,000 customers. This platform is key for organizations modernizing their environments as they look to SaaS for the future.

A significant segment includes organizations in highly regulated industries, such as financial services, where data security and compliance are non-negotiable. Commvault Systems, Inc. has seen strong growth in these areas, specifically highlighting success in the financial services and healthcare sectors. These customers often require the robust capabilities that support hybrid and multi-cloud environments needing unified data management, which Commvault Cloud is designed to deliver.

The foundation of this segment strategy is the existing, loyal customer base. As of March 31, 2025, Commvault Systems, Inc. ended the fiscal year with over 12,000 subscription customers. This base is expanding well, with the Americas region showing a year-over-year revenue growth of 29% in Q4 of fiscal 2025, while the International region grew by 15%. The land and expand business has been exceptionally strong, with the company reporting its best quarter ever for land and expand across both software and SaaS in Q1 of fiscal 2026.

Here's a quick look at the key customer metrics as of the end of fiscal year 2025 (March 31, 2025):

Metric	Value	Context
Total Organizations Served	Over 100,000	Worldwide customer base.
Total Subscription Customers	Over 12,000	End of Fiscal Year 2025.
Metallic SaaS Customers	Surpassed 8,000	As of Q1 Fiscal 2026.
Subscription Revenue (FY2025)	$590 million	Up 37% year-over-year.
Subscription ARR (FY2025)	$780 million	Up 31% year-over-year.

The types of environments these customers operate in dictate the platform requirements:

• Hybrid cloud environments needing unified data management.
• Complex deployments requiring protection across multi-cloud infrastructure.
• Customers prioritizing resilience across SaaS, Data Services, and Disaster Recovery use cases.

The focus on subscription and SaaS ARR growth, which was up 31% year-over-year for Subscription ARR in FY2025, shows where the customer value is increasingly concentrated. Finance: draft 13-week cash view by Friday.

Commvault Systems, Inc. (CVLT) - Canvas Business Model: Cost Structure

You're looking at the core expenses Commvault Systems, Inc. incurs to run its cyber resilience business as of late 2025. The shift to subscription and SaaS means a heavy upfront investment in sales and development, which you see reflected in the margins.

Significant investment in Research and Development (R&D) for platform innovation is a constant. While specific R&D spend isn't broken out in the latest summaries, the focus on cloud-first, AI-enabled platforms drives this cost. The company achieved $1,043 million in Total ARR as of September 30, 2025, which requires continuous platform evolution. The drive to maintain a comprehensive portfolio, including Metallic, necessitates substantial engineering resources.

High Sales and Marketing (S&M) costs to drive subscription and SaaS growth are baked into the operating expenses. The growth story is clear: Subscription revenue was $590 million for the full fiscal year ended March 31, 2025, up 37% year over year. By Q2 of fiscal 2026 (ending September 30, 2025), SaaS revenue alone hit $80 million, up 61% year over year. This aggressive growth in subscription and SaaS revenue implies significant S&M investment to acquire the over 12,000 subscription customers mentioned at the end of fiscal 2025.

Costs of Revenue (COGS) for cloud infrastructure supporting Metallic directly impact the gross margin. Commvault Systems, Inc. guides its Non-GAAP gross margin for the full fiscal year 2026 to be between 80.5% and 81.5%. This high gross margin is typical for software, but the Metallic SaaS component carries variable cloud infrastructure costs that are accounted for here. For context, the GAAP gross margin for Q4 of fiscal 2025 was 80.1%.

Personnel costs, including stock-based compensation, form a major part of the operating expenses. The company explicitly excludes noncash stock-based compensation expense and related payroll taxes when calculating non-GAAP operating income, signaling its material size. This exclusion helps management compare core operating results over time. Furthermore, restructuring charges, which include severance costs, were noted in the Q2 fiscal 2026 results, indicating ongoing adjustments to the workforce structure.

General and administrative (G&A) expenses, including legal and restructuring costs, are captured within the difference between gross profit and operating income. For the full fiscal year ended March 31, 2025, GAAP Income from Operations (EBIT) was $74 million on total revenues of $996 million, an operating margin of 7.4%. By Q2 fiscal 2026, the GAAP EBIT was only $12 million on revenues of $276 million, an operating margin of 4.5%. The reduction in operating margin suggests that R&D, S&M, and G&A expenses, relative to revenue, were higher in the recent period, or that COGS increased. The company reaffirmed its full fiscal year 2026 Non-GAAP EBIT margin guidance to be between 18.5% and 19.5%.

Here's a look at the key financial metrics that frame the cost structure for the most recent periods:

Metric	Period Ending September 30, 2025 (Q2 FY2026)	Fiscal Year Ended March 31, 2025 (FY2025)	FY2026 Guidance (As of Oct 2025)
Total Revenue	$276 million	$996 million	$1,161 million to $1,165 million
Subscription Revenue	$173 million	$590 million	$753 million to $757 million (Subscription Revenue)
GAAP Operating Income (EBIT)	$12 million	$74 million	N/A (GAAP not provided)
GAAP Operating Margin	4.5%	7.4%	N/A (GAAP not provided)
Non-GAAP Gross Margin	80.5%	N/A (GAAP Gross Margin Q4 FY25 was 80.1%)	80.5% to 81.5%
Non-GAAP EBIT Margin	N/A (Not explicitly stated for Q2 FY26)	21.1%	18.5% to 19.5%

The operating expenses (R&D, S&M, G&A) are what bridge the gap between the high gross margin and the reported operating margin. Here's how the operating expenses relate to the margins based on the latest full-year data (FY2025):

• Total Revenue (FY2025): $996 million
• Non-GAAP Gross Profit (Implied at 21.1% Non-GAAP EBIT Margin and 78.9% implied COGS): Approximately $789 million (if using 78.9% COGS based on 21.1% EBIT margin, this is an estimate of Gross Profit based on Non-GAAP EBIT, not direct calculation).
• Non-GAAP EBIT (FY2025): $210 million
• Implied Operating Expenses (Non-GAAP R&D + S&M + G&A): Non-GAAP Gross Profit minus Non-GAAP EBIT. Since the exact GAAP Gross Profit is not provided, we look at the difference between GAAP EBIT and Non-GAAP EBIT: $210 million (Non-GAAP EBIT) minus $74 million (GAAP EBIT) equals $136 million in adjustments, primarily stock-based compensation and restructuring.

The structure clearly shows that the cost to deliver the service (COGS) is relatively low, leaving a large gross profit pool, but the costs to develop and sell the product (R&D, S&M, G&A) consume a significant portion of that, as seen by the 21.1% Non-GAAP operating margin in FY2025.

Commvault Systems, Inc. (CVLT) - Canvas Business Model: Revenue Streams

You're looking at how Commvault Systems, Inc. actually brings in the money, and honestly, it's all about the shift to recurring revenue. The composition of their top line is changing fast, moving away from one-time sales to predictable, subscription-based income. This transition is the core story of their current financial structure.

Subscription revenue remains the bedrock, the primary driver you need to watch. For the full fiscal year 2025, this stream totaled $590 million. That's a big chunk of their overall business, showing customers are committing to the platform long-term.

The cloud offering, Metallic, is where the real acceleration is happening. SaaS revenue, which is Metallic, saw a massive 61% year-over-year growth in the second quarter of fiscal year 2026. Here's the quick math: in that quarter (Q2 FY2026), SaaS revenue hit $80 million, which is a huge indicator of adoption velocity.

For customers still deploying on-premises software, you see the term-based license revenue. In that same Q2 FY2026 period, this component brought in $93 million. It's still a significant part of the subscription bucket, but it's growing slower, up just 10% year-over-year in that quarter, which is expected as the mix favors pure SaaS.

Don't forget the necessary services that keep the big deployments running smoothly. Professional services and support revenue, covering implementation and maintenance, is the final piece of the puzzle. Based on the latest figures from Q2 FY2026, this non-subscription service revenue was approximately $103 million, calculated as Total Revenue ($276 million) minus Subscription Revenue ($173 million) for that period. If onboarding takes 14+ days, churn risk rises, but good support keeps the renewals coming.

To give you a clear snapshot of the latest reported numbers, look at this breakdown:

Revenue Component	FY2025 Total (Annual)	Q2 FY2026 Amount (Quarterly)
Subscription Revenue (Total)	$590 million	$173 million
Term-based License Revenue (Component of Subscription)	Not specified	$93 million
SaaS Revenue (Metallic) (Component of Subscription)	Not specified	$80 million
Professional Services and Support Revenue	Not specified	$103 million
Total Revenue	$996 million	$276 million

The momentum is clearly tied to the recurring model, as evidenced by these key metrics:

• Total revenue for FY2025 was $996 million.
• Total Annualized Recurring Revenue (ARR) surpassed $1 billion in Q2 FY2026.
• Subscription ARR grew to $894 million in Q2 FY2026.
• Subscription revenue grew 29% year-over-year in Q2 FY2026.
• The company ended FY2025 with over 12,000 subscription customers.

Finance: draft 13-week cash view by Friday.