Manhattan Associates, Inc. (MANH): BCG Matrix [Dec-2025 Updated]

You're looking for a clear, no-nonsense view of Manhattan Associates, Inc.'s current portfolio health, so let's cut straight to the chase: the Manhattan Active® Cloud Solutions platform is the undisputed Star, driving growth with a 21% year-over-year revenue increase and a massive $2.1 billion in contracted future revenue visibility. This powerhouse is funded by the steady Professional Services Cash Cow, while the company strategically harvests declining legacy maintenance (the Dogs) to free up resources for high-stakes bets on Agentic AI and Point of Sale-the key Question Marks that will define the next growth cycle. Dive in below to see exactly where your capital should be focused.

Background of Manhattan Associates, Inc. (MANH)

You're looking at Manhattan Associates, Inc. (MANH), a company that's been around since 1990, providing specialized software for managing supply chains, inventory, and omnichannel operations. Honestly, they're a big deal in this space, serving over 1,200 customers globally, including major retailers, manufacturers, and logistics firms. Their core focus now is driving adoption of their unified, cloud-based platform, which they call Manhattan Active solutions.

Let's look at the numbers coming out of late 2025. For the third quarter ended September 30, 2025, Manhattan Associates reported consolidated total revenue of $275.8 million. That quarter showed solid momentum in their shift to the cloud, with cloud subscription revenue hitting $104.9 million, marking a 21% year-over-year increase. To be fair, their services revenue was a bit softer at $133.0 million compared to the prior year's quarter.

Looking at the bigger picture for the year, the nine months ending September 30, 2025, brought in total revenue of $811.0 million, with cloud revenue driving a good chunk of that at $299.6 million. The company's operational efficiency is definitely a highlight; over the last five years, they've managed a revenue Compound Annual Growth Rate (CAGR) of 7.7% but an even stronger EBIT CAGR of 17.7%. Plus, their Return on Invested Capital (ROIC), stripping out things like cash and goodwill, was a remarkable 533.4%.

For the full fiscal year 2025, Manhattan Associates projected total revenue to land between $1.073 billion and $1.077 billion, and they set their adjusted Earnings Per Share (EPS) guidance in the $4.950 to $4.970 range. Financially, you can see their strength: they reported a Debt-to-Free Cash Flow ratio of 0.0, meaning they carry no debt, which is a huge plus for stability. As of late 2025, the market valued Manhattan Associates at roughly $10.64 billion.

Strategically, they continue to cement their leadership; they've been named a Leader in Gartner's Magic Quadrant for Warehouse Management Systems (WMS) for 17 times. This success is built on their cloud-native, microservices-based architecture, which they believe gives them a distinct advantage as customers modernize their supply chain technology. Finance: draft 13-week cash view by Friday.

Manhattan Associates, Inc. (MANH) - BCG Matrix: Stars

You're looking at the engine driving Manhattan Associates, Inc.'s current momentum, which is clearly the Manhattan Active® Cloud Solutions platform. This core offering is recognized as the market leader in both Warehouse Management Systems (WMS) and Order Management Systems (OMS) as of 2025. For instance, Manhattan Associates achieved its 17th consecutive placement as a Leader in the Gartner Magic Quadrant for WMS in 2025, and the Manhattan Active® Omni solution was recognized as a Leader in The Forrester Wave for Order Management Systems in Q1 2025. That kind of sustained, top-tier placement in independent analyst reports signals high market share in a critical, growing space.

The financial performance directly reflects this leadership position, showing the high-growth characteristic of a Star. The recurring revenue stream is robust, and management is clearly reinvesting to maintain this lead. Honestly, the numbers coming out of the latest reports show exactly why this segment is a Star; it's consuming cash for growth but delivering top-line acceleration.

The growth rate for the cloud component is what solidifies its Star status. Cloud Subscription Revenue for the third quarter of 2025 was $104.9 million, marking a 21% increase compared to the same period last year. Furthermore, the backlog of committed future revenue, the Remaining Performance Obligations (RPO), reached $2.1 billion, which is up 23% year-over-year. This massive, growing backlog shows customers are signing up for long-term cloud commitments, which is the path to future Cash Cow status once the market growth rate naturally slows.

The platform's architecture is designed to keep this lead. You see the commitment to investment in the operational metrics:

• The platform is 100% built on microservices for continuous innovation.
• New Agentic AI features are rolling out across the Active solutions.
• The company is making targeted investments in people to scale adoption.
• The WMS solution has been a Gartner Leader for 17 consecutive years.

The company is actively spending to capture this market, evidenced by the focus on operational frameworks and new product launches like Enterprise Promise & Fulfill (EPF). Finance: draft 13-week cash view by Friday.

Manhattan Associates, Inc. (MANH) - BCG Matrix: Cash Cows

You're looking at the established, reliable engine of Manhattan Associates, Inc. (MANH) financial performance. The Professional Services segment fits squarely into the Cash Cow quadrant. It's a large, mature revenue stream, providing the necessary stability while the company pushes its higher-growth cloud offerings.

Services revenue was reported at $133.0 million for the third quarter of 2025, a significant portion of the total revenue base of $275.8 million for that quarter. To be fair, this figure represented a year-over-year decline of 3% in Q3 2025, which clearly signals a mature or low-growth market for implementation and consulting services, exactly what you expect from a Cash Cow. Still, this segment is essential for high-margin cloud deployments, ensuring customers successfully adopt and maximize the value from Manhattan Active solutions.

Here's a quick look at how Services revenue stacks up against the high-growth Cloud Subscription segment in Q3 2025:

The company's ability to generate substantial cash flow from this mature segment, even with flat or slightly negative growth, is what makes it a Cash Cow. This cash generation is what allows Manhattan Associates, Inc. (MANH) to fund its Stars-the high-growth cloud products-without stress.

The underlying financial strength confirms this ability to 'milk' the gains passively while maintaining flexibility. You see this in the balance sheet:

• Manhattan Associates maintains a flawless balance sheet with zero debt as of Q2 2025.
• The company reported cash flow from operations of $93.1 million in Q3 2025.
• Year-to-date operating cash flow reached $149 million as of Q2 2025.
• The full-year 2025 guidance midpoint for Services revenue was set at $497 million.

This financial foundation means investments into supporting infrastructure for this segment-like process improvements to increase efficiency-will directly translate into higher cash flow for the corporation, which is the primary goal for managing a Cash Cow. Finance: draft 13-week cash view by Friday.

Manhattan Associates, Inc. (MANH) - BCG Matrix: Dogs

You're looking at the segments of Manhattan Associates, Inc. (MANH) that are clearly in the sunset phase of their lifecycle, which we categorize as Dogs in the BCG Matrix. These are the areas where market share and growth are both low, and frankly, they require careful management to avoid becoming cash traps. The Legacy Maintenance Revenue stream is definitely one of these, with a projected 7% decline in FY 2025, as per internal planning assumptions. This decline is a natural result of the successful migration of customers from on-premise to the cloud platform, which is where the growth is happening.

License Revenue is now effectively negligible, totaling only $1.4 million in Q3 2025, reflecting the end of the on-premise sales model. To be fair, looking at the nine-month figures, License Revenue was $12.2 million year-to-date, but the quarterly snapshot shows how little it contributes now. These legacy revenue streams require minimal investment and are being strategically harvested as customers transition to the more profitable, recurring cloud subscription model.

The Services Revenue segment, while larger, also shows signs of contraction as the focus shifts, coming in at $133.0 million for Q3 2025, down from $137.0 million in Q3 2024. We need to watch this closely; while some of the Q3 services revenue was pulled forward from Q4, the overall trend for non-cloud-attached services is one of managed decline. These segments are prime candidates for divestiture or, more likely in this case, strategic harvesting to free up resources for the Stars and Question Marks.

Here's a quick look at the recent financial performance of these legacy components:

The core characteristics defining these Dog segments for Manhattan Associates, Inc. (MANH) are clear:

• Legacy Maintenance Revenue decline projected at 7% for FY 2025.
• License Revenue for Q3 2025 was $1.4 million.
• Services Revenue for Q3 2025 was $133.0 million.
• These units are being strategically harvested, not aggressively invested in.
• The strategy is to minimize cash consumption while maximizing the transition to cloud.

Finance: draft the projected cash flow impact of a full divestiture of the remaining perpetual license base by next Tuesday.

Manhattan Associates, Inc. (MANH) - BCG Matrix: Question Marks

Agentic AI capabilities within the Manhattan Active platform are positioned as a prime example of a Question Mark for Manhattan Associates, Inc. (MANH). This technology targets a nascent, high-growth market segment within supply chain and commerce technology. While the excitement is high, with purpose-built agents for various roles rolling out in the fall of 2025 and general availability targeted for early 2026, the market share capture is still in its early stages, meaning these units consume significant cash for development and go-to-market investment. The company is making targeted investments in its people and solutions to capitalize on this, including hiring new leaders for POS and TMS.

Manhattan Active Point of Sale (POS) represents another area fitting the Question Mark profile. It is a newer push to unify commerce, competing in the crowded, high-growth retail technology space. Success here requires quickly gaining share against established players. The company's win rates against its top 5 competitors remained consistent at over 70% in Q2 2025, and more than 70% of new cloud bookings in Q2 2025 came from net new logos, suggesting success in capturing new market segments, which is crucial for a Question Mark.

The Services Revenue segment provides context for the high-cash consumption of Question Marks, as it faces near-term headwinds in 2025. Services Revenue was reported at $121 million in Q1 2025, representing an 8% year-over-year decrease, aligning with the expectation that revenue would 'trough' in that quarter. By Q3 2025, Services Revenue was $133 million, which was better than expected, but the full-year guidance for the segment was set between $494 million and $500 million. This segment's temporary weakness necessitates that high-growth areas like Agentic AI receive investment to quickly become Stars and offset any drag.

To accelerate the transition of these high-growth areas to Star status, Manhattan Associates, Inc. (MANH) is investing in fixed-fee conversion pilots. This is a high-risk/high-reward strategy designed to speed up customer migration to the cloud platform. The company advanced this program with fixed-fee, fixed-timeline offers, aiming to improve execution predictability, especially as the Services segment navigates its temporary dip.

Here are key financial metrics for Manhattan Associates, Inc. (MANH) as of the latest reported periods in 2025:

The company maintains a strong balance sheet to fund these Question Mark investments, reporting $264 million in cash and zero debt as of Q3 2025.