Key Highlights

  • Revenue increased USD 22.0 million, or 6%, to USD 415.3 million.
  • Recurring Revenue was USD 290.6 million, against USD 276.1 million.
  • EMIA revenue grew 11%, driven by strong growth in subscriptions.
  • Cash and cash equivalents were USD 297.0 million at September 30, 2026.

Octave Intelligence (NASDAQ:OCTV) reported third-quarter 2026 revenue of USD 415.32 million, against an estimate of USD 403.58 million. Earnings Per Share were USD 0.32, against an estimate of USD 0.31. Revenue increased USD 22.0 million, or 6%, from USD 393.3 million, and by 6% on an organic constant currency basis.

Revenue by Region and Type

Revenue in EMIA grew 11%, driven by strong growth in subscriptions. Revenue in the Americas grew 5%, driven by higher subscription revenues, offset by declines in license sales. Revenue in APAC declined 6%, driven by lower license sales and headwinds on maintenance subscriptions due to the timing of renewals in the prior year.

Recurring revenue, which includes monthly subscription licenses, SaaS-based subscriptions and maintenance subscriptions, was USD 290.6 million, against USD 276.1 million. Non-recurring revenue, which includes perpetual software licenses, services and other revenue, was USD 124.7 million, against USD 117.2 million.

For the nine months ended September 30, 2026, total revenue was USD 1,200.2 million, against USD 1,189.5 million. Recurring Revenue was USD 852.6 million, against USD 802.2 million, and non-recurring revenue was USD 347.7 million, against USD 387.2 million.

Nine-Month Results, Impairment and Costs

The filing reports nine-month revenue up USD 10.8 million, or 1%, and 2% on an organic constant currency basis. Divestitures of non-core businesses in the prior year had a negative impact of 3% on growth, and currency had a positive impact of 1%. Gross Profit increased USD 18.0 million, or 6%, with gross Margin flat. Cost of revenue decreased USD 20.9 million, or 7%, mainly from reduced services and other labor and delivery costs that supported the divested non-core businesses.

Other operating expense, net, increased by USD 2,127.6 million for the nine months. The filing attributes this mainly to impairment charges of USD 1,671.0 million on Goodwill and USD 463.7 million on indefinite-life intangible assets, and a USD 20.9 million decrease in contingent consideration Fair Value remeasurement gains. Management did not identify any triggering events during the three months ended September 30, 2026, and no additional impairment assessment was performed.

Interest expense, net, was USD 5.1 million for the quarter and USD 6.8 million for the nine months, with none in the prior-year periods.

Cash Flow, Capitalized Development and the Distribution

Cash and cash equivalents were USD 297.0 million at the end of September 2026, against USD 156.1 million at the beginning of the year. Net cash used in financing activities was USD 121.1 million for the nine months, against USD 273.9 million. Net cash used in investing activities decreased by USD 2.0 million, mainly from proceeds of USD 57.3 million from the sale of buildings, lower Capitalization of software development costs of USD 13.5 million and lower cash paid for acquisitions of USD 5.6 million. Income taxes paid, net of refunds, were USD 23.7 million, and interest paid was USD 7.0 million.

Total costs capitalized for development were USD 28.0 million in the quarter, against USD 35.4 million, and USD 88.3 million for the nine months, against USD 101.8 million.

The Equity statement shows a cash payment of USD 625.0 million to Hexagon in connection with the Distribution, and the issuance of ordinary shares in connection with the Distribution as of June 2026.

The reported items are revenue of USD 415.3 million, recurring revenue of USD 290.6 million, regional growth of 11% in EMIA and 5% in the Americas, the nine-month impairment charges and cash of USD 297.0 million. The company is listed on the Nasdaq Stock Market.