Private software companies release earnings early to calm AI nerves

[NEW YORK] A handful of software firms, including McAfee, have released their earnings ahead of schedule in a bid to convince lenders of their resilience to disruption from artificial intelligence (AI).

Cybersecurity firm McAfee told its debt investors that preliminary fourth-quarter revenue was US$626 million, little changed from the prior year, according to sources familiar with the matter. The firm, backed by Advent International and Permira Advisers, advanced its earnings to provide clarity during market volatility, said the sources, asking not to be identified discussing private information.

Rocket Software, the Bain Capital-backed IT modernisation firm, disclosed that 2025 revenue rose 5.2 per cent to about US$1.4 billion compared with the year earlier, the sources said. Meanwhile, Clearlake Capital and Francisco Partners-backed Perforce Software reported a slight decline in annual revenue to US$644 million from US$654 million in 2024. On a recent call, Perforce management detailed its efforts to drive sales by embedding AI into products, the sources said.

The software industry has faced a seismic shift as the rapid advance of AI threatens to turn swaths of corporate debt into a burden. “SaaSpocalypse”, as it’s been dubbed, triggered a major sell-off in the industry’s debt over fears the disruption will crush revenue growth of tech companies that relied heavily on borrowing. Many private lenders came out in spirited defence of the sector, arguing there are plenty of borrowers that will benefit from AI.

Representatives for McAfee, Advent, Permira, Clearlake and Bain declined to comment, while representatives for Francisco Partners, Perforce and Rocket Software did not immediately respond to requests for comment.

McAfee, whose business relies on consumer cybersecurity subscriptions, also told lenders that an adjusted measure of earnings fell by 1 per cent to US$292 million in the fourth quarter compared with the year before. The firm, which uses AI to detect scams, had reported a 9 per cent year-over-year decline in third-quarter adjusted earnings, driven by a one-time marketing investment and higher PC shipments, the sources said.

The company’s roughly US$2 billion of unsecured bonds due in 2030 rose to 85 US cents on the US dollar on Feb 9, up from 79.5 US cents in the prior week, according to pricing firm Trace. The debt has since dropped to hover around lows for this year, swept up by the continued software sell-off.

Rocket Software’s adjusted earnings for the year rose to US$850 million, up from US$801 million the year before, while annual recurring revenue jumped 6.3 per cent to about US$1.1 billion, the sources said. The firm released financial results in connection with its recent acquisition of the Vertica analytics database from OpenText, which provides secure information management for AI, according to the sources.

Rocket Software’s roughly US$2.7 billion term loan due in 2028 was quoted at around 97 US cents on Tuesday, according to data compiled by Bloomberg.

Data analytics company Cloudera, backed by Clayton, Dubilier & Rice and KKR, is usually private about its financials but decided to highlight its recent momentum in a statement on its website, according to a source familiar with the matter. The firm closed the fiscal year 2026 with a strong fourth-quarter, fuelled by “over 50 per cent year-over-year growth in new and expansion business, robust annual recurring revenue growth,” it said in the statement.

The company’s US$2.2 billion term loan due in 2028 was quoted at about 94 US cents, up from 86.5 US cents on Jan 30, according to data compiled by Bloomberg. Its US$500 million second-lien loan due in 2029 was quoted at nearly 78 cents, up from 74 US cents last week. BLOOMBERG