Double-digit year-over-year EPS growth Cash from operations was a quarterly record of $285 million and increased 12% year over year Company announces new $500 million share repurchase program

HOBOKEN, N.J., May 15, 2025--(BUSINESS WIRE)--NICE (NASDAQ: NICE) today announced results for the first quarter ended March 31, 2025, as compared to the corresponding periods of the previous year.

First Quarter 2025 Financial Highlights

GAAP Non-GAAP Total revenue was $700.2 million and increased 6% Total revenue was $700.2 million and increased 6% Cloud revenue was $526.3 million and increased 12% Cloud revenue was $526.3 million and increased 12% Operating income was $148.2 million and increased 22% Operating income was $213.6 million and increased 7% Operating margin was 21.2% compared to 18.4% last year Operating margin was 30.5% compared to 30.3% last year Diluted EPS was $2.01 and increased 26% Diluted EPS was $2.87 and increased 11% Operating cash flow was $285.1 million and increased 12%

"We’re pleased to report another strong quarter. Cloud revenue grew 12% in the first quarter compared to the same period last year, powering continued profitability, including a further expansion in operating margin and a double-digit increase in earnings per share," said Scott Russell, CEO of NICE. "We also delivered record quarterly cash flow in Q1, with cash from operations rising to $285 million—a 12% year-over-year increase. Our industry-leading financial profile continues to differentiate us from competitors, giving us excellent financial flexibility to invest strategically to accelerate our long-term growth."

Mr. Russell added, "We’re operating in a rapidly evolving market, and AI is the catalyst driving this transformation. We’re leading the way with our industry-defining AI platform, CXone Mpower. As organizations increasingly seek to leverage AI in their customer service operations, they’re turning to our CX AI cloud platform. In fact, in the first quarter, our AI and self-service revenue increased 39% year over year — clear evidence of the value of our platform. We’ve moved beyond orchestrating interactions; we’re enabling end-to-end automation from intent to resolution, powered by agentic AI embedded throughout the customer service journey."

GAAP Financial Highlights for the First Quarter Ended March 31:

Revenues: First quarter 2025 total revenues increased 6% year over year to $700.2 million compared to $659.3 million for the first quarter of 2024.

Gross Profit: First quarter 2025 gross profit was $468.1 million compared to $436.6 million for the first quarter of 2024. First quarter 2025 gross margin was 66.9% compared to 66.2% for the first quarter of 2024.

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Operating Income: First quarter 2025 operating income increased 22% to $148.2 million compared to $121.4 million for the first quarter of 2024. First quarter 2025 operating margin was 21.2% compared to 18.4% for the first quarter of 2024.

Net Income: First quarter 2025 net income increased 22% to $129.3 million compared to $106.4 million for the first quarter of 2024. First quarter 2025 net income margin was 18.5% compared to 16.1% for the first quarter of 2024.

Fully Diluted Earnings Per Share: Fully diluted earnings per share for the first quarter of 2025 increased 26% to $2.01 compared to $1.60 in the first quarter of 2024.

Cash Flow and Cash Balance: First quarter 2025 operating cash flow was $285.1 million and $252.3 million was used for share repurchases. As of March 31, 2025, total cash and cash equivalents, and short-term investments were $1,610.7 million. Our debt, was $459.2 million, resulting in net cash and investments of $1,151.5 million.

Non-GAAP Financial Highlights for the First Quarter March 31:

Revenues: First quarter 2025 total revenues increased 6% year over year to $700.2 million compared to $659.3 million for the first quarter of 2024.

Gross Profit: First quarter 2025 non-GAAP gross profit increased to $489.2 million compared to $467.7 million for the first quarter of 2024. First quarter 2025 non-GAAP gross margin was 69.9% compared to 70.9% for the first quarter of 2024.

Operating Income: First quarter 2025 non-GAAP operating income increased 7% to $213.6 million compared to $199.8 million for the first quarter of 2024. First quarter 2025 non-GAAP operating margin was 30.5% compared to 30.3% for the first quarter of 2024.

Net Income: First quarter 2025 non-GAAP net income increased 8% to $185.0 million compared to $171.6 million for the first quarter of 2024. First quarter 2025 non-GAAP net income margin totaled 26.4% compared to 26.0% for the first quarter of 2024.

Fully Diluted Earnings Per Share: First quarter 2025 non-GAAP fully diluted earnings per share increased 11% to $2.87 compared to $2.58 for the first quarter of 2024.

Second Quarter and Full Year 2025 Guidance:

Second-Quarter 2025: Second-quarter 2025 non-GAAP total revenue is expected to be in a range of $709 million to $719 million, representing 7% year over year growth at the midpoint.

Second-quarter 2025 non-GAAP fully diluted earnings per share is expected to be in a range of $2.93 to $3.03, representing 13% year over year growth at the midpoint.

Full-Year 2025: The Company reiterated full-year 2025 non-GAAP total revenue which is expected to be in a range of $2,918 million to $2,938 million, representing 7% year over year growth at the midpoint.

The Company increased full-year 2025 non-GAAP fully diluted earnings per share which is expected to be in a range of $12.28 to $12.48, representing 11% year over year growth at the midpoint.

Quarterly Results Conference Call

NICE management will host its earnings conference call today, May 15, 2025, at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the results and the company's outlook. A live webcast and replay will be available on the Investor Relations page of the Company’s website. To access, please register by clicking here: https://www.nice.com/investor-relations/upcoming-event.

Explanation of Non-GAAP measures Non-GAAP financial measures are included in this press release. Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude share-based compensation, amortization of acquired intangible assets, acquisition related and other expenses, amortization of discount on debt and the tax effect of the Non-GAAP adjustments.

The Company believes that these Non-GAAP financial measures, used in conjunction with the corresponding GAAP measures, provide investors with useful supplemental information about the financial performance of our business. We believe Non-GAAP financial measures are useful to investors as a measure of the ongoing performance of our business. Our management regularly uses our supplemental Non-GAAP financial measures internally to understand, manage and evaluate our business and to make financial, strategic and operating decisions. These Non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Our Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. These Non-GAAP financial measures may differ materially from the Non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income. The Company provides guidance only on a Non-GAAP basis. A reconciliation of guidance from a GAAP to Non-GAAP basis is not available due to the unpredictability and uncertainty associated with future events that would be reported in GAAP results and would require adjustments between GAAP and Non-GAAP financial measures, including the impact of future possible business acquisitions. Accordingly, a reconciliation of the guidance based on Non-GAAP financial measures to corresponding GAAP financial measures for future periods is not available without unreasonable effort.

Company Announces New Share Buyback Program of $500 million:

The Board of Directors has authorized an additional new $500 million share repurchase program. Repurchases under the program may be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions or otherwise, all in accordance with U.S. securities laws and regulations, including Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company may also, from time to time, enter into plans that are compliant with Rule 10b5-1 of the Exchange Act to facilitate repurchases of its shares under this authorization. The timing and total amount of share repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing share prices and other considerations. This program does not obligate the Company to acquire any particular amount of ordinary shares and the program may be extended, modified, suspended or discontinued at any time at the Company’s discretion. The Company expects to fund repurchases with cash on hand and future cash generated from its operations.

About NICE With NICE (Nasdaq: NICE), it’s never been easier for organizations of all sizes around the globe to create extraordinary customer experiences while meeting key business metrics. Featuring the world’s #1 cloud native customer experience platform, CXone, NICE is a worldwide leader in AI-powered self-service and agent-assisted CX software for the contact center – and beyond. Over 25,000 organizations in more than 150 countries, including over 85 of the Fortune 100 companies, partner with NICE to transform - and elevate - every customer interaction. www.nice.com

Trademark Note: NICE and the NICE logo are trademarks or registered trademarks of NICE. All other marks are trademarks of their respective owners. For a full list of NICE trademarks, please see: http://www.nice.com/nice-trademarks

Forward-Looking Statements This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as "believe", "expect", "seek", "may", "will", "intend", "should", "project", "anticipate", "plan", and similar expressions. Forward-looking statements are based on the current beliefs, expectations and assumptions of the Company’s management regarding the future of the Company’s business, performance, future plans and strategies, projections, anticipated events and trends, the economic environment, and other future conditions. Examples of forward-looking statements include guidance regarding the Company’s revenue and earnings and the growth of our cloud, analytics and artificial intelligence business.

Forward looking statements are inherently subject to significant uncertainties, contingencies, and risks, including, economic, competitive and other factors, which are difficult to predict and many of which are beyond the control of management. The Company cautions that these statements are not guarantees of future performance, and investors should not place undue reliance on them. There are or will be important known and unknown factors and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These factors, include, but are not limited to, risks associated with changes in economic and business conditions, competition, successful execution of the Company’s growth strategy, success and growth of the Company’s cloud Software-as-a-Service business, difficulties in making additional acquisitions or effectively integrating acquired operations, products, technologies and personnel, the Company’s dependency on third-party cloud computing platform providers, hosting facilities and service partners, rapid changes in technology and market requirements, the implementation of AI capabilities in certain products and services; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications, loss of market share, cyber security attacks or other security incidents, privacy concerns and legislation impacting the Company’s business, changes in currency exchange rates and interest rates, the effects of additional tax liabilities resulting from our global operations, the effect of unexpected events or geo-political conditions, including those arising from political instability or armed conflict that may disrupt our business and the global economy, our ability to recruit and retain qualified personnel, the effect of newly enacted or modified laws, regulation or standards on the Company and our products, and various other factors and uncertainties discussed in our filings with the U.S. Securities and Exchange Commission (the "SEC").

You are encouraged to carefully review the section entitled "Risk Factors" in our latest Annual Report on Form 20-F and our other filings with the SEC for additional information regarding these and other factors and uncertainties that could affect our future performance. The forward-looking statements contained in this press release speak only as of the date hereof, and the Company undertakes no obligation to update or revise them, whether as a result of new information, future developments or otherwise, except as required by law.

NICE LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands  March 31,  December 31, 2025  2024 Unaudited  Audited  ASSETS   CURRENT ASSETS:  Cash and cash equivalents   469,532  $ 481,712 Short-term investments   1,141,145   1,139,996 Trade receivables   643,245   643,985 Prepaid expenses and other current assets   210,184   239,080  Total current assets   2,464,106   2,504,773  LONG-TERM ASSETS:  Property and equipment, net   184,274   185,292 Deferred tax assets   239,537   219,232 Other intangible assets, net   211,432   231,346 Operating lease right-of-use assets   71,108   93,083 Goodwill   1,854,973   1,849,668 Prepaid expenses and other long-term assets   206,497   212,512  Total long-term assets   2,767,821   2,791,133  TOTAL ASSETS  $ 5,231,927  $ 5,295,906  LIABILITIES AND SHAREHOLDERS' EQUITY   CURRENT LIABILITIES:  Trade payables  $ 59,414  $ 110,603 Deferred revenues and advances from customers   375,330   299,367 Current maturities of operating leases   12,200   12,554 Debt   459,212   458,791 Accrued expenses and other liabilities   637,388   593,109  Total current liabilities   1,543,544   1,474,424  LONG-TERM LIABILITIES:  Deferred revenues and advances from customers   62,123   66,289 Operating leases   67,250   92,258 Deferred tax liabilities   654   1,965 Other long-term liabilities   58,461   57,807  Total long-term liabilities   188,488   218,319  SHAREHOLDERS' EQUITY  Nice Ltd's equity   3,499,895   3,589,742 Non-controlling interests   -   13,421  Total shareholders' equity   3,499,895   3,603,163  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  $ 5,231,927  $ 5,295,906

NICE LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME U.S. dollars in thousands (except per share amounts)  Quarter ended March 31, 2025  2024 Unaudited  Unaudited  Revenue:  Cloud  $ 526,323   $ 468,406  Services   140,203    148,913  Product   33,666    41,990  Total revenue   700,192    659,309   Cost of revenue:  Cloud   179,474    169,978  Services   46,243    46,086  Product   6,363    6,605  Total cost of revenue   232,080    222,669   Gross profit   468,112    436,640   Operating expenses:  Research and development, net   89,102    87,832  Selling and marketing   161,434    155,015  General and administrative   69,407    72,354  Total operating expenses   319,943    315,201   Operating income   148,169    121,439   Financial and other income, net   (15,850 )   (14,009 )  Income before tax   164,019    135,448  Taxes on income   34,729    29,075  Net income  $ 129,290   $ 106,373    Earnings per share:  Basic  $ 2.04   $ 1.68  Diluted  $ 2.01   $ 1.60   Weighted average shares outstanding:  Basic   63,354    63,278  Diluted   64,368    66,528

NICE LTD. AND SUBSIDIARIES CONSOLIDATED CASH FLOW STATEMENTS U.S. dollars in thousands Quarter ended March 31, 2025  2024 Unaudited  Unaudited  Operating Activities   Net income  $ 129,290   $ 106,373  Adjustments to reconcile net income to net cash provided by operating activities:  Depreciation and amortization   43,441    51,760  Share-based compensation   43,337    44,404  Amortization of premium and discount and accrued interest on marketable securities   (2,275 )   (1,232 ) Deferred taxes, net   (21,537 )   4,366  Changes in operating assets and liabilities:  Trade Receivables, net   4,678    8,137  Prepaid expenses and other current assets   28,555    8,761  Operating lease right-of-use assets   5,897    3,281  Trade payables   (53,291 )   (10,763 ) Accrued expenses and other current liabilities   49,518    (2,868 ) Deferred revenue   69,574    45,539  Operating lease liabilities   (10,189 )   (3,800 ) Amortization of discount on long-term debt   421    549  Other   (2,348 )   (17 ) Net cash provided by operating activities   285,071    254,490   Investing Activities   Purchase of property and equipment   (3,667 )   (10,521 ) Purchase of Investments   (49,454 )   (331,122 ) Proceeds from sales of marketable investments   58,358    516,150  Capitalization of internal use software costs   (16,766 )   (15,936 ) Payments for business acquisitions, net of cash acquired   (36,466 )   -  Net cash provided by (used in) investing activities   (47,995 )   158,571   Financing Activities   Proceeds from issuance of shares upon exercise of options   675    1,792  Purchase of treasury shares   (252,329 )   (41,515 ) Dividends paid to noncontrolling interest   -    (2,681 ) Repayment of debt   -    (87,435 ) Net cash used in financing activities   (251,654 )   (129,839 )  Effect of exchange rates on cash and cash equivalents   1,147    (1,939 )  Net change in cash, cash equivalents and restricted cash   (13,431 )   281,283  Cash, cash equivalents and restricted cash, beginning of period  $ 485,032   $ 513,314   Cash, cash equivalents and restricted cash, end of period  $ 471,601   $ 794,597   Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet: Cash and cash equivalents  $ 469,532   $ 793,078  Restricted cash included in other current assets  $ 2,069   $ 1,519  Total cash, cash equivalents and restricted cash shown in the statement of cash flows  $ 471,601   $ 794,597

NICE LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP RESULTS U.S. dollars in thousands (except per share amounts)  Quarter ended March 31, 2025  2024 GAAP revenues  $ 700,192   $ 659,309  Non-GAAP revenues  $ 700,192   $ 659,309    GAAP cost of revenue  $ 232,080   $ 222,669  Amortization of acquired intangible assets on cost of cloud   (15,403 )   (25,367 ) Amortization of acquired intangible assets on cost of product   -    (260 ) Cost of cloud revenue adjustment (1,2)   (3,178 )   (3,002 ) Cost of services revenue adjustment (1)   (2,455 )   (2,378 ) Cost of product revenue adjustment (1)   (22 )   (30 ) Non-GAAP cost of revenue  $ 211,022   $ 191,632    GAAP gross profit  $ 468,112   $ 436,640  Gross profit adjustments   21,058    31,037  Non-GAAP gross profit  $ 489,170   $ 467,677    GAAP operating expenses  $ 319,943   $ 315,201  Research and development (1,2)   (4,693 )   (8,143 ) Sales and marketing (1,2)   (15,414 )   (14,172 ) General and administrative (1,2)   (19,558 )   (19,831 ) Amortization of acquired intangible assets   (4,693 )   (5,239 ) Valuation adjustment on acquired deferred commission   -    15  Non-GAAP operating expenses  $ 275,585   $ 267,831    GAAP financial and other income, net  $ (15,850 )  $ (14,009 ) Amortization of discount on debt   (421 )   (549 ) Change in fair value of contingent consideration   -    (44 ) Non-GAAP financial and other income, net  $ (16,271 )  $ (14,602 )   GAAP taxes on income  $ 34,729   $ 29,075  Tax adjustments re non-GAAP adjustments   10,093    13,816  Non-GAAP taxes on income  $ 44,822   $ 42,891    GAAP net income  $ 129,290   $ 106,373  Amortization of acquired intangible assets   20,096    30,866  Valuation adjustment on acquired deferred commission   -    (15 ) Share-based compensation (1)   44,925    45,644  Acquisition related and other expenses (2)   395    1,912  Amortization of discount on debt   421    549  Change in fair value of contingent consideration   -    44  Tax adjustments re non-GAAP adjustments   (10,093 )   (13,816 ) Non-GAAP net income  $ 185,034   $ 171,557    GAAP diluted earnings per share  $ 2.01   $ 1.60   Non-GAAP diluted earnings per share  $ 2.87   $ 2.58   Shares used in computing GAAP diluted earnings per share   64,368    66,528   Shares used in computing non-GAAP diluted earnings per share   64,368    66,528

NICE LTD. AND SUBSIDIARIES  RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)  U.S. dollars in thousands    (1) Share-based compensation  Quarter ended March 31, 2025  2024  Cost of cloud revenue  $ 3,178  $ 2,940 Cost of services revenue   2,455   2,378 Cost of product revenue   22   30 Research and development   4,693   7,813 Sales and marketing   15,414   13,529 General and administrative   19,163   18,954 $ 44,925  $ 45,644    (2) Acquisition related and other expenses  Quarter ended March 31, 2025  2024  Cost of cloud revenue  $ -  $ 62 Research and development   -   330 Sales and marketing   -   643 General and administrative   395   877 $ 395  $ 1,912

NICE LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME TO NON-GAAP EBITDA U.S. dollars in thousands   Quarter ended March 31, 2025  2024 Unaudited  Unaudited  GAAP net income  $ 129,290   $ 106,373  Non-GAAP adjustments:  Depreciation and amortization   43,441    51,760  Share-based compensation   43,337    44,404  Financial and other income, net   (15,850 )   (14,009 ) Acquisition related and other expenses   395    1,912  Valuation adjustment on acquired deferred commission   -    (15 ) Taxes on income   34,729    29,075  Non-GAAP EBITDA  $ 235,342   $ 219,500

NICE LTD. AND SUBSIDIARIES NON-GAAP RECONCILIATION - FREE CASH FLOW FROM CONTINUING OPERATIONS U.S. dollars in thousands   Quarter ended March 31, 2025  2024 Unaudited  Unaudited Free cash flow (a)  Net cash provided by operating activities  $ 285,071   $ 254,490   Purchase of property and equipment   (3,667 )   (10,521 ) Capitalization of internal use software costs   (16,766 )   (15,936 )  Free Cash Flow  $ 264,638   $ 228,033

(a) Free cash flow from continuing operations is defined as operating cash flows from continuing operations less capital expenditures of the continuing operations and less capitalization of internal use software costs.

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Contacts

Investor Relations Contact 
Marty Cohen, +1 551 256 5354, [email protected], ET
Omri Arens, +972 3 763-0127, [email protected], CET

Corporate Media Contact Christopher Irwin-Dudek, +1 201 561 4442, [email protected], ET

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