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Mar 31

Nice Q1 2025 Earnings Report

NICE reported solid financial results in Q1 2025, driven by strong cloud and AI-driven revenue growth.

Key Takeaways

NICE delivered robust Q1 2025 results with 12% growth in cloud revenue and a 26% increase in GAAP EPS, supported by record operating cash flow and rising AI-driven adoption.

Cloud revenue grew 12% YoY to $526.3M, making up 75% of total revenue

GAAP EPS rose 26% YoY to $2.01, while non-GAAP EPS reached $2.87

Operating cash flow hit a quarterly record of $285.1M

AI and self-service revenue increased 39% YoY, highlighting strong CXone platform demand

Total Revenue
$700M
Previous year: $659M
+6.2%
EPS
$2.87
Previous year: $2.58
+11.2%
Operating Margin
21.2%
Previous year: 18.4%
+15.2%
Net Income Margin
18.5%
Previous year: 16.1%
+14.9%
Cash Flow from Operations
$285M
Previous year: $254M
+12.0%
Gross Profit
$468M
Previous year: $437M
+7.2%
Cash and Equivalents
$1.61B
Previous year: $1.5B
+7.2%
Free Cash Flow
$281M
Previous year: $244M
+15.3%
Total Assets
$5.23B
Previous year: $5.05B
+3.7%

Nice

Nice

Nice Revenue by Segment

Forward Guidance

NICE raised its full-year 2025 EPS guidance and reiterated revenue targets, supported by accelerating AI-driven demand and continued cloud momentum.

Positive Outlook

  • Full-year 2025 EPS guidance raised to $12.28–$12.48
  • Second-quarter EPS expected to grow 13% YoY at midpoint
  • Q2 revenue expected to reach up to $719 million
  • Full-year revenue guided at $2.918–$2.938 billion
  • Strong cash position and share repurchase flexibility

Challenges Ahead

  • Services and product revenue declined YoY
  • Slight decline in non-GAAP gross margin from 70.9% to 69.9%
  • Increase in deferred revenues indicating potential delayed recognitions
  • Higher tax expense impacting net income margin
  • No geographic revenue breakdown provided

Revenue & Expenses

Visualization of income flow from segment revenue to net income