Manhattan Associates Reports Fourth Quarter Results | MANH Stock News

RPO Bookings Increased 25% over Prior Year ATLANTA--(BUSINESS WIRE)--Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. (NASDAQ: MANH) today reported revenue of $270.4 million for the fourth quarter ended December 31, 2025, compared to $255.8 million in Q4 2024. GAAP diluted earnings per share for Q4 2025 was $0.86 compared to $0.77 in Q4 2024. Non-GAAP adjusted diluted earnings per share for Q4 2025 was $1.21 compared to $1.17 in Q4 2024.“Manhattan's business momentum continues to strengthen. We delivered record fourth quarter cloud bookings, and our industry leading solutions are gaining market share,” said Manhattan Associates president and CEO Eric Clark.“Manhattan enters 2026 with an expanded go-to-market footprint and numerous opportunities to drive growth from new and existing customers. Our global team is dedicated to our customers’ success, and we are excited for our newly released AI agents to help deliver optimal results for our entire Active customer community,” Mr. Clark concluded.FOURTH QUARTER 2025 FINANCIAL SUMMARY:Consolidated total revenue was $270.4 million for Q4 2025, compared to $255.8 million for Q4 2024.Cloud subscription revenue was $108.6 million for Q4 2025, compared to $90.3 million for Q4 2024.License revenue was $2.6 million for Q4 2025, compared to $5.5 million for Q4 2024.Services revenue was $120.0 million for Q4 2025, compared to $119.5 million for Q4 2024.GAAP diluted earnings per share was $0.86 for Q4 2025, compared to $0.77 for Q4 2024.Adjusted diluted earnings per share, a non-GAAP measure, was $1.21 for Q4 2025, compared to $1.17 for Q4 2024.GAAP operating income was $67.0 million for Q4 2025, compared to $60.7 million for Q4 2024.Adjusted operating income, a non-GAAP measure, was $91.4 million for Q4 2025, compared to $90.3 million for Q4 2024.Cash flow from operations was $147.0 million for Q4 2025, compared to $104.7 million for Q4 2024. Days Sales Outstanding was 73 days at both December 31, 2025 and at September 30, 2025.Cash totaled $328.7 million at December 31, 2025, compared to $263.6 million at September 30, 2025.During the three months ended December 31, 2025, the Company repurchased 415,925 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $75.0 million. In January 2026, our Board of Directors replenished the Company’s share repurchase authority to an aggregate of $100.0 million of our common stock.FULL YEAR 2025 FINANCIAL SUMMARY:Consolidated total revenue for the twelve months ended December 31, 2025, was $1,081.4 million, compared to $1,042.4 million for the twelve months ended December 31, 2024.Cloud subscription revenue was $408.1 million for the twelve months ended December 31, 2025, compared to $337.2 million for the twelve months ended December 31, 2024.License revenue was $14.8 million for the twelve months ended December 31, 2025, compared to $15.1 million for the twelve months ended December 31, 2024.Services revenue was $503.0 million for the twelve months ended December 31, 2025, compared to $525.5 million for the twelve months ended December 31, 2024.GAAP diluted earnings per share for the twelve months ended December 31, 2025, was $3.60, compared to $3.51 for the twelve months ended December 31, 2024.Adjusted diluted earnings per share, a non-GAAP measure, was $5.06 for the twelve months ended December 31, 2025, compared to $4.72 for the twelve months ended December 31, 2024.GAAP operating income was $279.8 million for the twelve months ended December 31, 2025, compared to $261.6 million for the twelve months ended December 31, 2024.Adjusted operating income, a non-GAAP measure, was $387.1 million for the twelve months ended December 31, 2025, compared to $361.8 million for the twelve months ended December 31, 2024.Cash flow from operations was $389.5 million for the twelve months ended December 31, 2025, compared to $295.0 million for the twelve months ended December 31, 2024.During the twelve months ended December 31, 2025, the Company repurchased 1,451,019 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of $274.5 million. In January 2026, our Board of Directors replenished the Company’s share repurchase authority to an aggregate of $100.0 million of our common stock.2026 GUIDANCEManhattan Associates provides the following revenue, operating margin, and diluted earnings per share guidance for the full year 2026:Guidance Range - 2026 Full Year($'s in millions, except operating margin and EPS)$ Range% Growth RangeTotal revenue$1,133$1,1535%7%Operating Margin:GAAP operating margin24.1%24.7%Equity-based compensation10.4%10.3%Adjusted operating margin(1)34.5%35.0%Diluted earnings per share (EPS):GAAP EPS$3.37$3.53-6%-2%Equity-based compensation1.691.69Excess tax benefit on stock vesting(2)(0.02)(0.02)Adjusted EPS(1)$5.04$5.200%3%(1) Adjusted operating margin and adjusted EPS are non-GAAP measures that exclude the impact of equity-based compensation and the related income tax effects, if applicable.(2) Excess tax benefit on stock vesting expected to occur primarily in the first quarter of 2026.Manhattan Associates currently intends to make public certain expectations with respect to future financial performance. Those statements, including the guidance provided above, are forward looking. Actual results may differ materially. See our cautionary note regarding “forward-looking statements” below.Manhattan Associates will make this earnings release and a recording of the conference call referenced below available on the investor relations section of the Manhattan Associates website at ir.manh.com. Following publication of this earnings release, any expectations with respect to future financial performance contained in this release or the conference call, including the guidance, should be considered historical only, and Manhattan Associates disclaims any obligation to update them.CONFERENCE CALLManhattan Associates’ conference call regarding its fourth quarter and twelve months ended December 31, 2025 financial results will be held today, January 27, 2026, at 4:30 p.m. Eastern Time. The Company will also discuss its business and expectations for the year and next quarter in additional detail during the call. We invite investors to a live webcast of the conference call through the Investor Relations section of the Manhattan Associates website at ir.manh.com. To listen to the live webcast, please go to the website at least 15 minutes before the call to download and install any necessary audio software. The Internet webcast will be available until Manhattan Associates’ first quarter 2026 earnings release.GAAP VERSUS NON-GAAP PRESENTATIONManhattan Associates provides adjusted operating income and margin, adjusted income tax provision, adjusted net income, and adjusted diluted earnings per share in this press release as additional information regarding the Company’s historical and projected operating results. These measures are not in accordance with, or alternatives to, GAAP, and may be different from similarly titled non-GAAP measures used by other companies. The Company believes the presentation of these non-GAAP financial measures facilitates investors’ ability to understand and compare the Company’s results and guidance, because the measures provide supplemental information in evaluating the operating results of its business, as distinct from results that include items not indicative of ongoing operating results, and because the Company believes its peers typically publish similar non-GAAP measures. This release should be read in conjunction with the Company’s Form 8-K earnings release filing for the three and twelve months ended December 31, 2025.Non-GAAP adjusted operating income and margin, adjusted income tax provision, adjusted net income, and adjusted diluted earnings per share exclude the impact of equity-based compensation, an expense – net of insurance recoveries, related to an unusual health insurance claim, and restructuring expense – net of income tax effects, collectively. They also exclude the tax benefits or deficiencies of vested stock awards caused by differences in the amount deductible for tax purposes from the compensation expense recorded for financial reporting purposes. We include reconciliations of the Company’s GAAP financial measures to non-GAAP adjustments in the supplemental information attached to this release.ABOUT MANHATTAN ASSOCIATESManhattan Associates is a global technology leader in supply chain and omnichannel commerce. We unite information across the enterprise, converging front-end sales with back-end supply chain execution. Our software, platform technology, and unmatched experience help drive both top-line growth and bottom-line profitability for our customers.Manhattan Associates designs, builds, and delivers leading edge cloud solutions so that across the store, through your network, or from your fulfillment center, you are ready to reap the rewards of the omnichannel marketplace. For more information, please visit www.manh.com.This press release contains “forward-looking statements” relating to Manhattan Associates, Inc. Forward-looking statements in this press release include, without limitation, the information set forth under “2026 Guidance” and statements identified by words such as “may,” “expect,” “forecast,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “project,” “estimate,” and similar expressions. Prospective investors are cautioned that any of those forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by those forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by those forward-looking statements are: economic conditions, including disruption and transformation in the retail sector and our vertical markets; delays in product development; competitive and pricing pressures; software errors and information technology failures, disruption and security breaches; risks related to our products’ technology and customer implementations; risks associated with our use of generative and agentic artificial intelligence; global instability, including the wars in Ukraine and the Middle East; and the other risk factors set forth in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and in Item 1A of Part II in subsequent Quarterly Reports on Form 10-Q. Manhattan Associates undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results.MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIESCondensed Consolidated Statements of Income(in thousands, except per share amounts) Three Months Ended December 31,Year Ended December 31,2025202420252024(unaudited)(unaudited)Revenue:Cloud subscriptions$108,558$90,330$408,138$337,203Software license2,6435,45214,81915,085Maintenance32,27933,568129,972138,304Services120,011119,482503,044525,517Hardware6,8986,96925,41926,243Total revenue270,389255,8011,081,3921,042,352Costs and expenses:Cost of cloud subscriptions, maintenance and services121,522112,739471,405469,659Cost of software license2232539341,321Research and development38,53332,996145,062137,689Sales and marketing22,07820,30781,17575,976General and administrative19,48927,18793,76289,810Depreciation and amortization1,5321,6316,3176,301Restructuring expense--2,937-Total costs and expenses203,377195,113801,592780,756Operating income67,01260,688279,800261,596Other income, net1,4381,9966,0945,218Income before income taxes68,45062,684285,894266,814Income tax provision16,49714,66865,94648,450Net income$51,953$48,016$219,948$218,364Basic earnings per share$0.87$0.79$3.64$3.56Diluted earnings per share$0.86$0.77$3.60$3.51Weighted average number of shares:Basic60,03660,99960,47361,303Diluted60,64262,00961,05462,183Reconciliation of Selected GAAP to Non-GAAP Measures(in thousands, except per share amounts) Three Months Ended December 31,Year Ended December 31,2025202420252024Operating income$67,01260,688$279,800261,596Equity-based compensation (a)30,58522,592111,26393,206Unusual health insurance claim (c)(6,224)7,002(6,882)7,002Restructuring expense (d)--2,937Adjusted operating income (Non-GAAP)$91,373$90,282$387,118$361,804Income tax provision$16,49714,66865,94648,450Equity-based compensation (a)4,4983,16015,24714,127Tax benefit of stock awards vested (b)4573,9289,120Unusual health insurance claim (c)(1,501)1,690(1,660)1,690Restructuring expense (d)--708-Adjusted income tax provision (Non-GAAP)$19,49819,57584,16973,387Net income$51,95348,016219,948218,364Equity-based compensation (a)26,08719,43296,01679,079Tax benefit of stock awards vested (b)(4)(57)(3,928)(9,120)Unusual health insurance claim (c)(4,723)5,312(5,222)5,312Restructuring expense (d)--2,229-Adjusted net income (Non-GAAP)$73,31372,703309,043293,635Diluted EPS$0.86$0.77$3.60$3.51Equity-based compensation (a)0.430.311.571.27Tax benefit of stock awards vested (b)--(0.06)(0.15)Unusual health insurance claim (c)(0.08)0.09(0.09)0.09Restructuring expense (d)--0.04-Adjusted diluted EPS (Non-GAAP)$1.21$1.17$5.06$4.72Fully diluted shares60,64262,00961,05462,183a)Adjusted results exclude all equity-based compensation, as detailed below, to facilitate comparison with our peers and for the other reasons explained in our Current Report on Form 8-K filed with the SEC. We do not receive a GAAP tax benefit for a portion of our equity-based compensation, mainly because of Section 162(m) of the Internal Revenue Code, which limits tax deductions for compensation granted to certain executives.Three Months Ended December 31,Year Ended December 31,2025202420252024Cost of services$12,275$10,049$45,630$41,531Research and development6,7444,94824,59220,760Sales and marketing3,4002,1499,0948,444General and administrative8,1665,44631,94722,471Total equity-based compensation$30,585$22,592$111,263$93,206(b)Adjustments represent the excess tax benefits and tax deficiencies of the equity awards vested during the period. Excess tax benefits (deficiencies) occur when the amount deductible on our tax return for an equity award is more (less) than the cumulative compensation cost recognized for financial reporting purposes. As discussed above, we exclude equity-based compensation from adjusted non-GAAP results to be consistent with other companies in the software industry and for the other reasons explained in our Current Report on Form 8-K filed with the SEC. Therefore, we also exclude the related tax benefit (expense) generated upon their vesting.(c)In the fourth quarter of 2024, we recorded $7.0 million of expense for an unusual health insurance claim. During the first quarter of 2025, we received an insurance recovery of $4.7 million for this claim, partially offset by $1.0 million of ongoing expense for the claim. During the second quarter of 2025, we recorded an additional $3.0 million of expense for this unusual health insurance claim. During the fourth quarter of 2025, we settled the remaining balance of the claim and recorded $6.2 million of benefit as the final payment was much lower than the cost estimates previously provided by our health insurance provider. Based on the uncommonly large magnitude and nature of the claim and timing of related insurance recoveries, we do not believe that this expense reflects our normal operating activities, and we have excluded the amount from adjusted non-GAAP results. (d)In January 2025, the Company eliminated about 100 positions to align our services capacity with customer demand, which has been impacted by macro-economic uncertainty. We recorded pre-tax restructuring expense in the first quarter of 2025 of approximately $2.9 million. The expense primarily consists of employee severance and outplacement services. We do not believe that the expense is a common cost that resulted from normal operating activities, and thus we have excluded the amount from adjusted non-GAAP results.MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIESCondensed Consolidated Balance Sheets(in thousands, except share and per share data) December 31, 2025December 31, 2024ASSETSCurrent Assets:Cash and cash equivalents$328,747$266,230Accounts receivable, net214,679205,475Prepaid expenses and other current assets39,91231,559Total current assets583,338503,264Property and equipment, net23,12013,971Operating lease right-of-use assets50,44347,923Goodwill62,24462,226Deferred income taxes75,90094,505Other assets44,34335,662Total assets$839,388$757,551LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities:Accounts payable$22,182$26,615Accrued compensation and benefits69,30972,180Accrued and other liabilities26,57022,275Deferred revenue337,049277,970Income taxes payable8031,264Total current liabilities455,913400,304Operating lease liabilities, long-term56,18047,794Other non-current liabilities12,53010,327Shareholders' equity:Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding at December 31, 2025 and December 31, 2024--Common stock, $.01 par value; 200,000,000 shares authorized; 59,845,291 and 60,921,191 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively598609Retained earnings345,097329,439Accumulated other comprehensive loss(30,930)(30,922)Total shareholders' equity314,765299,126Total liabilities and shareholders' equity$839,388$757,551MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIESCondensed Consolidated Statements of Cash Flows(in thousands) Year Ended December 31,20252024Operating activities:Net income$219,948$218,364Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization6,3176,301Equity-based compensation111,26393,206(Gain) Loss on disposal of equipment(21)(133)Deferred income taxes18,342(28,689)Unrealized foreign currency loss (gain)(253)(380)Changes in operating assets and liabilities:Accounts receivable, net(3,583)(26,702)Other assets(14,729)(4,157)Accounts payable, accrued and other liabilities(229)1,248Income taxes319(6,242)Deferred revenue52,09642,187Net cash provided by operating activities389,470295,003Investing activities:Purchases of property and equipment(15,457)(8,675)Net cash used in investing activities(15,457)(8,675)Financing activities:Purchase of common stock(315,162)(286,366)Net cash used in financing activities(315,162)(286,366)Foreign currency impact on cash3,666(4,473)Net change in cash and cash equivalents62,517(4,511)Cash and cash equivalents at beginning of period266,230270,741Cash and cash equivalents at end of period$328,747$266,230MANHATTAN ASSOCIATES, INC.SUPPLEMENTAL INFORMATION 1. GAAP and adjusted earnings per share by quarter are as follows:202420251st Qtr2nd Qtr3rd Qtr4th QtrFull Year1st Qtr2nd Qtr3rd Qtr4th QtrFull YearGAAP Diluted EPS$0.86$0.85$1.03$0.77$3.51$0.85$0.93$0.96$0.86$3.60Adjustments to GAAP:Equity-based compensation0.300.340.330.311.270.400.350.400.431.57Tax benefit of stock awards vested(0.13)(0.01)(0.01)-(0.15)(0.06)-(0.01)-(0.06)Unusual health insurance claim---0.090.09(0.05)0.04-(0.08)(0.09)Restructuring expense-----0.04---0.04Adjusted Diluted EPS$1.03$1.18$1.35$1.17$4.72$1.19$1.31$1.36$1.21$5.06Fully Diluted Shares62,49362,11861,94862,00962,18361,52761,07460,95460,64261,0542. Revenues and operating income by reportable segment are as follows (in thousands): 202420251st Qtr2nd Qtr3rd Qtr4th QtrFull Year1st Qtr2nd Qtr3rd Qtr4th QtrFull YearRevenue:Americas$196,312$205,955$205,852$194,367$802,486$194,615$206,606$206,659$202,546$810,426EMEA46,62046,91848,08248,903190,52355,54252,30153,97553,978215,796APAC11,62012,44512,74712,53149,34312,63013,51415,16113,86555,170$254,552$265,318$266,681$255,801$1,042,352$262,787$272,421$275,795$270,389$1,081,392GAAP Operating Income:Americas$36,687$45,300$49,033$36,323$167,343$33,862$48,051$45,783$39,875$167,571EMEA15,88417,19520,52118,89672,49623,70319,80722,87721,68688,073APAC5,0595,6935,5365,46921,7575,6075,9307,1685,45124,156$57,630$68,188$75,090$60,688$261,596$63,172$73,788$75,828$67,012$279,800Adjustments (pre-tax):Americas:Equity-based compensation$22,095$24,666$23,853$22,592$93,206$28,826$24,275$27,577$30,585$111,263Unusual health insurance claim---7,0027,002(3,658)3,000-(6,224)(6,882)Restructuring expense-----2,9298--2,937$22,095$24,666$23,853$29,594$100,208$28,097$27,283$27,577$24,361$107,318Adjusted non-GAAP Operating Income:Americas$58,782$69,966$72,886$65,917$267,551$61,959$75,334$73,360$64,236$274,889EMEA15,88417,19520,52118,89672,49623,70319,80722,87721,68688,073APAC5,0595,6935,5365,46921,7575,6075,9307,1685,45124,156$79,725$92,854$98,943$90,282$361,804$91,269$101,071$103,405$91,373$387,1183. Impact of Currency FluctuationThe following table reflects the increases (decreases) in the results of operations for each period attributable to the change in foreign currency exchange rates from the prior period as well as foreign currency gains (losses) included in other income, net for each period (in thousands):202420251st Qtr2nd Qtr3rd Qtr4th QtrFull Year1st Qtr2nd Qtr3rd Qtr4th QtrFull YearRevenue$648$(531)$936$316$1,369$(1,591)$2,724$2,652$3,833$7,618Costs and expenses176(673)211(227)(513)(1,966)1,180738906858Operating income4721427255431,8823751,5441,9142,9276,760Foreign currency gains (losses) in other income(564)(577)(331)519(953)131(65)1,59691,671$(92)$(435)$394$1,062$929$506$1,479$3,510$2,936$8,431Manhattan Associates has a large research and development center in Bangalore, India. The following table reflects the increases (decreases) in the financial results for each period attributable to changes in the Indian Rupee exchange rate (in thousands): 202420251st Qtr2nd Qtr3rd Qtr4th QtrFull Year1st Qtr2nd Qtr3rd Qtr4th QtrFull YearOperating income$185$307$261$302$1,055$785$514$832$1,409$3,540Foreign currency gains (losses) in other income164412841,2831,772151401,9787422,875Total impact of changes in the Indian Rupee$349$348$545$1,585$2,827$800$654$2,810$2,151$6,4154. Other income includes the following components (in thousands): 202420251st Qtr2nd Qtr3rd Qtr4th QtrFull Year1st Qtr2nd Qtr3rd Qtr4th QtrFull YearInterest income$1,414$1,503$1,636$1,476$6,029$1,101$852$1,007$1,429$4,389Foreign currency gains (losses)(564)(577)(331)519(953)130(65)1,59791,671Other non-operating income (expense)146(12)71142106(72)-(1)33Total other income$996$914$1,312$1,996$5,218$1,337$715$2,604$1,438$6,0945. Capital expenditures are as follows (in thousands): 202420251st Qtr2nd Qtr3rd Qtr4th QtrFull Year1st Qtr2nd Qtr3rd Qtr4th QtrFull YearCapital expenditures$2,321$2,217$1,009$3,128$8,675$891$3,980$5,928$4,658$15,4576. Stock Repurchase Activity (in thousands): 202420251st Qtr2nd Qtr3rd Qtr4th QtrFull Year1st Qtr2nd Qtr3rd Qtr4th QtrFull YearShares purchased under publicly-announced buy-back program2943431941569875392632334161,451Shares withheld for taxes due upon vesting of restricted stock165382178179382192Total shares purchased4593462021581,1657182662414181,643Total cash paid for shares purchased under publicly-announced buy-back program$73,411$74,999$49,687$43,539$241,636$100,000$49,596$49,947$74,996$274,539Total cash paid for shares withheld for taxes due upon vesting of restricted stock40,4237131,91756943,62236,4475951,60239839,042Total cash paid for excise tax---1,1081,108---1,5811,581Total cash paid for shares repurchased$113,834$75,712$51,604$45,216$286,366$136,447$50,191$51,549$76,975$315,1627. Remaining Performance ObligationsWe disclose revenue that we expect to recognize from our remaining performance obligations ("RPO"). Over 98% of our RPO represents cloud native subscriptions with non-cancelable terms greater than one year (including cloud-deferred revenue as well as amounts we will invoice and recognize as revenue from our performance of cloud services in future periods). Maintenance contracts are typically one year and not included in the RPO. Our RPO as of the end of each period appears below (in thousands): March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 2025June 30, 2025September 30, 2025December 31, 2025Remaining Performance Obligations$1,516,430$1,601,531$1,686,421$1,780,400$1,891,384$2,013,495$2,076,628$2,232,234View source version on businesswire.com: https://www.businesswire.com/news/home/20260127602098/en/Michael BauerSenior Director,Investor RelationsManhattan Associates, Inc.678-597-7538mbauer@manh.comDevika GoelSenior Manager,Public RelationsManhattan Associates, Inc.678-597-6754dgoel@manh.comSource: Manhattan Associates Inc.