Company: CVLT
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001169561-25-000089
Chunk: 74

Company: COMMVAULT SYSTEMS INC
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 8
Chunk 74
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 the three months ended September 30, 2025. These charges relate primarily to severance and associated costs from headcount reductions and include $0.4 million of stock-based compensation resulting from modifications to existing awards granted to certain employees impacted by the plan. We anticipate the workforce realignment and identification of planned technology changes will be completed in fiscal 2026, and the remaining activities under the restructuring plan, including the technology transitions, are expected to be completed in fiscal 2027. Restructuring expenses were $0.6 million for the three months ended September 30, 2024 related to a prior restructuring plan that was completed in fiscal 2025.

Risks associated with our restructuring plan include additional unexpected costs, adverse effects on employee morale and the failure to meet operational and growth targets due to the loss of key employees, any of which may impair our ability to achieve anticipated results of operations or otherwise harm our business.

30

Income Tax Expense

Income tax expense was $0.4 million in the three months ended September 30, 2025 compared to expense of $1.1 million in the three months ended September 30, 2024. The decrease in income tax expense compared to the same period in the prior year relates primarily to estimated current federal taxes. The One Big Beautiful Bill Act (the “OBBBA”), enacted on July 4, 2025, includes several corporate tax provisions relevant to U.S. businesses. Included in this legislation are provisions that allow for the immediate expensing of domestic research and development expenses, extensions of bonus depreciation, and modifications to the international tax regimes. The provisions in the legislation are generally effective beginning in our fiscal 2026. The Company is continuing to evaluate the impact of these provisions on its financial statements, but an estimate of the financial impact has been included in our operating results for the three months ended September 30, 2025. The OBBBA did not have a material impact to our income tax provision for the three months ended September 30, 2025.

Six months ended September 30, 2025 compared to six months ended September 30, 2024

Revenues ($ in millions)

Six Months Ended September 30,20252024% ChangeSubscription:Term-based license$201.9 $164.8 23 %SaaS152.5 93.3 63 %Total subscription354.4 258.1 37 %Perpetual license19.4 24.3 (