AvePoint, Inc. Q3 FY2025 earnings

AVPT's FY2025 Q3 revenue rose 23.6% to $109.7 million. Gross profit was $81.6 million, up 20.7%, while gross margin was 74.4%, down from the prior-year quarter. Operating income reached $8.1 million, up 6.2%, and operating margin was 7.4%, down from the prior-year quarter. Net income was $13.0 million, up 396.8%, and diluted EPS was $0.06. On a non-GAAP basis, operating income was $24.1 million, compared with $17.8 million in the prior-year quarter, and non-GAAP operating margin was 22.0%, compared with 20.1%.

For the nine months ended September 30, 2025, revenue was $304.8 million, up 26.3%. Gross profit rose 25.2% to $226.3 million. Operating income was $18.5 million, up 700.3%, and operating margin was 6.1%, up from the prior-year period. Net income was $19.2 million, and diluted EPS was $0.08. Operating cash flow for the nine months was $55.6 million, down 1.0%. Capital expenditures were $3.0 million, up 29.7%. Deferred revenue at quarter end was $174.2 million, up 22.4%, and remaining performance obligations were $475.2 million, up 30.7%.

Operational momentum came from total ARR of $390.0 million, up 26% year over year. Dollar-based gross retention was 88%, and net retention was 110%. Management described the quarter as delivering record quarterly net new ARR, non-GAAP operating profitability, and operating cash flow generation. The company introduced new data protection solutions for Monday.com, Docusign, Smartsheet, Okta, Confluence, and Google Virtual Machines. It added deeper visibility into the lifecycle and compliance of Copilot Studio Agents and launched an Operational Efficiency Command Center. AvePoint also started an enhanced points-based Global Partner Program and listed on the Main Board of the SGX-ST under the symbol AVP, adding a listing alongside its Nasdaq presence. The company says more than 25,000 customers use its platform, and its channel program includes approximately 5,000 managed service providers and value-added resellers, with solutions in more than 100 cloud marketplaces.

Management raised full-year 2025 guidance for revenue and non-GAAP operating income. For the fourth quarter of 2025, the company expects year-over-year revenue growth of 23% to 26%, and constant-currency growth of 20% to 23%. It also expects non-GAAP operating income of $21.0 million to $22.0 million. For the full year 2025, AvePoint now expects total ARR of $412.8 million to $418.8 million, or year-over-year growth of 26% to 28%, and 24% to 26% adjusted for FX. Full-year revenue growth guidance is 25.5% to 26.1%, and 23.5% to 24.1% on a constant-currency basis. Non-GAAP operating income guidance is $77.3 million to $78.3 million, with a non-GAAP operating margin of 18.6% to 18.8%, representing year-over-year margin expansion of nearly 430 basis points.

Risks include a dynamic and highly competitive software and cloud market, rapid shifts in customer preferences, and macroeconomic and geopolitical uncertainty that could affect global trade, currency exchange rates, and regional economies. International operations generate significant revenue and expenses in non-U.S. currencies, so foreign exchange changes can influence results. Management also points to rising operating costs from infrastructure, research and development, marketing, and geographic expansion, which could pressure margins. Maintenance revenue is expected to keep declining as perpetual licenses fade, and services revenue can fluctuate because it is not recurring. Seasonality remains a factor, and quarterly revenue does not necessarily grow sequentially. Tax risks include changes in valuation allowances and the assessment of the OBBBA tax law. AvePoint had no outstanding debt and no borrowings under its $30.0 million revolving credit line, which has a $20.0 million accordion feature and matures on November 3, 2026. The company also committed $50.0 million to a growth equity fund and has letters of credit of $1.1 million for operating leases and $5.8 million for customer contingency agreements.