Company: CVLT
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001169561-25-000089
Chunk: 73

Company: COMMVAULT SYSTEMS INC
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 8
Chunk 73
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 $0.2 million and represented 2% of our perpetual revenue for the three months ended September 30, 2025 compared to 4% for the three months ended September 30, 2024.

–Cost of customer support revenue decreased $0.5 million and represented 19% of our customer support revenue for the three months ended September 30, 2025 compared to 20% for the three months ended September 30, 2024.

–Cost of other services revenue increased $0.8 million and represented 75% of our other services revenue for the three months ended September 30, 2025 compared to 69% for the three months ended September 30, 2024.

29

Operating Expenses ($ in millions)

–Sales and marketing expenses increased $20.3 million, or 20%, primarily driven by a $12.5 million increase in employee compensation and sales commissions associated with increases in headcount and revenues relative to the same period in the prior year, including an increase of $1.1 million in stock-based compensation. In addition, there was an increase year over year of $3.5 million due to higher spending on marketing initiatives, which included in-person events and travel.

–Research and development expenses increased $6.0 million, or 18%, driven by an increase of $3.1 million in employee compensation and related expenses, including an increase of $2.2 million in stock-based compensation. The increase in employee compensation and related expenses is primarily driven by additional headcount, including headcount related to acquisitions. Investing in research and development remains a priority for Commvault and we anticipate continued responsible spending related to the development of our software applications and hosted services.

–General and administrative expenses increased $8.4 million, or 25%, driven by an increase of $6.1 million in employee compensation and related expenses, including an increase of $2.3 million in stock-based compensation. In addition, we incurred $1.8 million in legal and consulting expenses in the second quarter of fiscal 2026 as a result of our response to a non-routine security matter that did not occur in the same period in the prior year.

–Depreciation and amortization expense increased $0.6 million, driven by the acquisition of intangible assets.

–Restructuring: Our restructuring plan, initiated in the first quarter of fiscal 2026, is intended to optimize our Business Technology organization. Restructuring expenses were $1.4 million for