EX-99.1 2 d62560dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO       LOGO
 

 

Amdocs Limited Reports Third Quarter Fiscal 2025 Results

Revenue of $1.14 Billion, down 8.4% YoY as Reported and up 3.5% YoY in Pro Forma(1)

Constant Currency(2)

12-Month Backlog of $4.15 Billion, up 3.0% YoY on a Pro Forma(1) Basis

Expects Fiscal 2025 Revenue Outlook of (10.0)%-(9.0)% YoY as Reported and

2.4%-3.4% YoY in Pro Forma(1) Constant Currency(2)

Reiterates Fiscal 2025 Target for Double-Digit Total Shareholder Returns(3)

Third Quarter Fiscal 2025 Highlights

(All comparisons are against the prior year)

 

  •  

Revenue of $1,144 million, down 8.4% as reported due to the phase out of certain business activities, and up 3.5% in pro forma(1) constant currency(2); revenue was above the midpoint of the $1,110-$1,150 million guidance range, even after adjusting for a positive impact from foreign currency movements of approximately $9 million compared to our guidance assumptions

 

  •  

Record revenue of $189 million in Europe, up 7.7% as compared to last year’s third quarter

 

  •  

Record managed services revenue of $771 million, equivalent to approximately 67% of total revenue and up 4.1% as compared to last year’s third quarter

 

  •  

GAAP diluted EPS of $1.39, above the guidance range of $1.30-$1.38

 

  •  

Non-GAAP diluted EPS of $1.72, above the midpoint of the guidance range of $1.68-$1.74

 

  •  

GAAP operating income of $202 million; GAAP operating margin of 17.7%, up 360 basis points as compared to last year’s third fiscal quarter, reflecting the phase out of certain non-core business activities, restructuring charges recorded in last year’s third quarter, and a continued focus on operational excellence; GAAP operating margin was up 20 basis points sequentially

 

(1)

For comparison purposes, pro forma adjusts third quarter fiscal year 2024 revenue by approximately $150 million and the full fiscal 2024 revenue by approximately $600 million to reflect the end of certain low margin, non-core business activities; these activities substantially already ceased in the first quarter fiscal 2025 and are not included in the full year fiscal 2025 revenue outlook

(2)

Revenue on a constant currency basis assumes exchange rates in the current period were unchanged from the prior period

(3)

Expected total shareholder return assumes midpoint of fiscal year 2025 non-GAAP EPS growth outlook, plus dividend yield

(4)

Please refer to the Selected Financial Metrics tables below (figures may not sum because of rounding)

  •  

Non-GAAP operating income of $245 million; non-GAAP operating margin of 21.4%, up 280 basis points as compared to last year’s third fiscal quarter, reflecting the phase out of certain non-core business activities and a continued focus on operational excellence, and up 10 basis points sequentially

 

  •  

Free cash flow of $212 million, comprised of cash flow from operations of $241 million, less $29 million in net capital expenditures(4), including $19 million of restructuring payments

 

  •  

Repurchased $135 million of ordinary shares during the third fiscal quarter

 

  •  

Twelve-month backlog of $4.15 billion, up 3.0%(1) as compared to last year’s third fiscal quarter adjusting for the phase out of certain business activities; twelve-month backlog was down by approximately $20 million sequentially

JERSEY CITY, NJ – August 6, 2025 – Amdocs Limited (NASDAQ: DOX), a leading provider of software and services to communications and media companies, today reported operating results for the three months ended June 30, 2025.

“Amdocs achieved solid financial results and important business milestones in Q3 as we continued to support the strategic business imperatives of our customers with our innovative cloud, digital and AI-based solutions. Revenue of $1.14 billion exceeded the midpoint of our guidance, led by sequential growth in all regions and a record quarter in Europe where we continue to strengthen our customer partnerships. In the UK, BT has recently awarded Amdocs a digital transformation project, starting date to be finalized, that will enhance their consumer customer experience as part of a multi-year managed services engagement. Amdocs has also been selected by Elisa in Finland for a digital B2B modernization on Google Cloud. Additionally, we are encouraged to have won several strategic GenAI-related deals, providing Amdocs with a foundation on which to showcase our value and to gradually scale in this emerging domain. These deals include a leading service provider in the US which has signed an expanded multi-year agreement to transform its billing, commerce, and order management through GenAI powered solutions,” said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited.

“With our unique delivery capabilities, we achieved a near record number of project milestones this quarter, including a successful cloud migration for Bell Canada and the go-live of a B2B platform deployment for Optus in Australia. We also achieved another record performance in managed services, which contributed $771 million, or roughly 67%, to total revenue in Q3. Demonstrating our proven ability to deliver consistent customer value, renewal rates in managed services remain high, evidenced by the expanded multi-year agreement we have signed, including modernization, with a leading US service provider, and the recent award with BT in the UK,” said Tamar Rapaport-Dagim, chief financial officer & chief operating officer of Amdocs Management Limited.

Sheffer concluded, “Entering Q4, we are encouraged by a rich pipeline of opportunities across our large, serviceable addressable market. Our 12-month backlog is healthy, and we expect to meet our double-digit growth target in cloud this year. That said, we are closely watching for any impacts of the uncertain macroeconomic environment on us and our customers’ spending behavior. Overall, for the full fiscal year 2025, we now expect slightly better revenue growth of roughly 2.9% in pro forma constant currency, assuming the midpoint of our improved range. We are also on track to deliver double-digit expected total shareholder returns(3) for the fifth consecutive year, supported by enhanced profitability and robust earnings to cash conversion.”

Revenue

(All comparisons are against the prior year period)

 

     In millions
Three months ended
June 30, 2025		  
     Actual     Guidance  

Revenue

    $ 1,144     $ 1,110 - $1,150  

Revenue Growth, as reported

      (8.4 )%   

Revenue Growth, Pro-forma (1) constant currency (2)

      3.5 %   

  •  

Revenue for the third fiscal quarter of 2025 was above the midpoint of Amdocs’ guidance, even after adjusting for a positive impact from foreign currency movements of approximately $9 million relative to our guidance assumptions

 

  •  

Revenue for the third fiscal quarter includes a positive impact from foreign currency movements of approximately $6 million relative to the third quarter of fiscal 2024 and a positive impact from foreign currency movements of approximately $13 million relative to the second quarter of fiscal 2025

Net Income and Earnings Per Share

 

     In thousands, except per share data
Three months ended
June 30,		  
     2025      2024  

GAAP Measures

      

Net Income

    $ 154,802      $ 140,998  

Net Income attributable to Amdocs Limited

    $ 154,001      $ 140,289  

Diluted earnings per share

    $ 1.39      $ 1.21  

Non-GAAP Measures

      

Non-GAAP Net Income

    $ 192,170      $ 187,807  

Non-GAAP Net Income attributable to Amdocs Limited

    $ 191,369      $ 187,098  

Non-GAAP Diluted earnings per share

    $ 1.72      $ 1.62  

 

  •  

Non-GAAP net income excludes amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisition related liabilities measured at fair value, equity-based compensation expenses, restructuring charges, and other, net of related tax effects. For further details of the reconciliation of selected financial metrics from GAAP to Non-GAAP, please refer to the tables below.

Capital Allocation

 

  •  

Quarterly Cash Dividend Program: On August 6, 2025, the Board approved the Company’s next quarterly cash dividend payment of $0.527 per share, and set September 30, 2025 as the record date for determining the shareholders entitled to receive the dividend, which will be payable on October 31, 2025

  •  

Share Repurchase Activity: Repurchased $135 million of ordinary shares during the third quarter of fiscal 2025

Twelve-month Backlog

Twelve-month backlog was $4.15 billion at the end of the third quarter of fiscal 2025. On a pro forma(1) basis, adjusting the comparable period for the phase out of certain business activities, twelve-month backlog was up approximately 3.0% as compared to last year’s third fiscal quarter. Twelve-month backlog includes anticipated revenue related to contracts, estimated revenue from managed services contracts, letters of intent, maintenance and estimated on-going support activities.

Fourth Quarter Fiscal 2025 Outlook

 

     In millions, except
per share data		  
     Q4 - 2025  

Revenue

    $ 1,125-$1,165  

GAAP Diluted earnings per share

    $ 1.41-$1.49  

Non-GAAP Diluted earnings per share

    $ 1.79-$1.85  

 

  •  

Fourth quarter revenue guidance assumes a positive $4 million sequential impact from foreign currency fluctuations as compared to the third quarter of fiscal 2025

 

  •  

Fourth quarter non-GAAP diluted EPS guidance excludes primarily equity-based compensation expense of approximately $0.21-$0.23 per share, amortization of purchased intangible assets and other acquisition-related costs of approximately $0.12 per share, changes in certain acquisitions related liabilities measured at fair value, and other, net of related tax effects

 

  •  

GAAP diluted EPS guidance does not include the impact of future restructuring charges

Full Year Fiscal 2025 Outlook

 

     FY 2025 -Year-over -Year growth
     Current guidance    Previous guidance

Revenue Growth, as reported

    (10.0)%-(9.0)%    (10.9)%-(9.1)%

Revenue Growth, Pro-forma (1) constant currency (2)

    2.4%-3.4%    1.7%-3.7%

GAAP Diluted earnings per share

    31.5%-33.5%    28.0%-35.0%

Non-GAAP Diluted earnings per share

    8.0%-9.0%    6.5%-10.5%

 

     FY 2025, in millions
     Current guidance    Previous guidance

Free Cash Flow (4)

    $710-$730    $710-$730

 

  •  

Revenue growth on a pro forma(1), constant currency(2) basis adjusts fiscal 2024 revenue by approximately $600 million to reflect the end of several low-margin, non-core business activities, including certain low-margin software and hardware partner activities, Vubiquity’s transactional video on demand business and non-core subscription services; these activities substantially already ceased in the first quarter of fiscal 2025 and are not included in the full year fiscal 2025 revenue outlook

 

  •  

Full year fiscal 2025 revenue guidance incorporates an expected negative impact from foreign currency fluctuations of approximately 0.1% year-over-year, as compared with a negative impact of approximately 0.5% year-over-year previously, and includes some inorganic contribution

 

  •  

Non-GAAP diluted earnings per share growth excludes primarily equity-based compensation expense of approximately $0.84-$0.86 per share, amortization of purchased intangible assets and other acquisition-related costs of approximately $0.47 per share, changes in certain acquisitions related liabilities measured at fair value, and other, net of related tax effects

 

  •  

GAAP diluted EPS guidance does not include the impact of future restructuring charges

 

  •  

Non-GAAP operating margin is anticipated to be within a range of 21.1% to 21.7% for the full year fiscal 2025

 

  •  

Non-GAAP operating margin is comprised of GAAP operating margin, excluding amortization of purchased intangible assets and other, equity-based compensation expense, restructuring charges, and changes in certain acquisitions related liabilities measured at fair value

  •  

Non-GAAP effective tax rate is anticipated to be within a range of 15% to 17% for the full year fiscal 2025

 

  •  

Reiterates full year fiscal 2025 free cash flow(4) outlook of $710 million to $730 million; free cash flow(4) is comprised of cash flow from operations, less net capital expenditures, and excludes payments related to restructuring charges

The forward-looking statements regarding our fourth fiscal quarter 2025 and full year fiscal 2025 guidance take into consideration the Company’s current expectations regarding macro and industry specific risks and various uncertainties and certain assumptions that we will discuss on our earnings conference call. However, we note that market dynamics continue to shift rapidly and we cannot predict all possible outcomes, including those resulting from certain geopolitical events, the current inflationary environment, changes to trade policies including tariffs and trade restrictions and the resulting impact on economic activities (as our outlook assumes current economic conditions do not deteriorate significantly due to trade policy or other macro factors), global or regional events, and the prevailing level of macro-economic, business and operational uncertainty, which have created, and continue to create, a significant amount of uncertainty, or from current and potential customer consolidation or their other strategic corporate activities.

Conference Call and Earnings Webcast Presentation Details

Amdocs will host a conference call and earnings webcast presentation on August 6, 2025 at 5:00 p.m. Eastern Time to discuss the Company’s third quarter of fiscal 2025 results. To participate in the call, please register here to receive the dial-in numbers and unique access PIN. The conference call and webcast will also be carried live on the Internet and may be accessed via the Amdocs website at https://investors.amdocs.com. Presentation slides will be available shortly before the webcast.

Non-GAAP Financial Measures

This release includes non-GAAP diluted earnings per share and other non-GAAP financial measures, including free cash flow, revenue on a constant currency(2) basis, non-GAAP cost of revenue, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP interest and other expenses, net, non-GAAP income taxes, non-GAAP effective tax rate, non-GAAP net income, non-GAAP net income attributable to Amdocs Limited and non-GAAP diluted earnings per share growth. These other non-GAAP measures exclude the following items:

 

  •  

amortization of purchased intangible assets and other acquisition-related costs;

 

  •  

changes in certain acquisition-related liabilities measured at fair value;

 

  •  

restructuring and unusual charges or benefits;

 

  •  

equity-based compensation expense;

 

  •  

other; and

 

  •  

tax effects related to the above.

Free cash flow equals cash generated by operating activities less net capital expenditures. These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Amdocs believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Amdocs’ results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Amdocs’ results of operations in conjunction with the corresponding GAAP measures.

Amdocs believes that the presentation of non-GAAP diluted earnings per share and other financial measures, including free cash flow(4), revenue on a constant currency(2) basis, non-GAAP cost of revenue, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP interest and other expenses, net, non-GAAP income taxes, non-GAAP effective tax rate, non-GAAP net income, non-GAAP net income attributable to Amdocs Limited and non-GAAP diluted earnings per share growth when shown in conjunction with the

corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and results of operations, as well as the net amount of cash generated by its business operations after taking into account capital spending required to maintain or expand the business.

For its internal budgeting process and in monitoring the results of the business, Amdocs’ management uses financial statements that do not include amortization of purchased intangible assets and other acquisition-related costs, changes in certain acquisition-related liabilities measured at fair value, restructuring and unusual charges or benefits, equity-based compensation expense, other and related tax effects. Amdocs’ management also uses the foregoing non-GAAP financial measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Amdocs. In addition, Amdocs believes that significant groups of investors exclude these items in reviewing its results and those of its competitors, because the amounts of the items between companies can vary greatly depending on the assumptions used by an individual company in determining the amounts of the items.

Amdocs further believes that, where the adjustments used in calculating non-GAAP diluted earnings per share are based on specific, identified amounts that impact different line items in the Consolidated Statements of Income (including cost of revenue, research and development, selling, general and administrative, operating income, interest and other expenses, net, income taxes and net income), it is useful to investors to understand how these specific line items in the Consolidated Statements of Income are affected by these adjustments. Please refer to the Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP tables below.

Supporting Resources

 

  •  

Keep up with Amdocs news by visiting the Company’s website

 

  •  

Subscribe to Amdocs’ RSS Feed and follow us on Twitter, Facebook, LinkedIn and YouTube

About Amdocs

Amdocs helps those who build the future to make it amazing. With our market-leading portfolio of software products and services, we unlock our customers’ innovative potential, empowering them to provide next-generation communication and media experiences for both the individual end user and large enterprise customers. Our employees around the globe are here to accelerate service providers’ migration to the cloud, enable them to differentiate in the 5G era, and digitalize and automate their operations. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $5.00 billion in fiscal 2024.

For more information, visit Amdocs at www.amdocs.com.

This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs’ growth and business results in future quarters and years. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general macroeconomic conditions, prevailing level of macroeconomic, business and operational uncertainty, including as a result of geopolitical events or other regional events or pandemics, changes to trade policies including tariffs and trade restrictions, as well as the current inflationary environment, and the effects of these conditions on the Company’s customers’ businesses and levels of business activity, including the effect of the current economic uncertainty and industry pressure on the spending decisions of the Company’s customers. Amdocs’ ability to grow in the business markets that it serves, Amdocs’ ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company’s products and services obsolete, security incidents, including breaches and cyberattacks to our systems and networks and those of our partners or customers, potential loss of a major customer, our ability to develop long-term relationships with our customers, our ability to successfully and effectively implement artificial

intelligence and Generative AI in the Company’s offerings and operations, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, Amdocs specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs’ filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2024, filed on December 17, 2024, and our Form 6-K furnished for the first quarter of fiscal 2025 on February 18, 2025, and for the second quarter of fiscal 2025 on May 19, 2025.

Contact:

Matthew Smith

Head of Investor Relations

Amdocs

314-212-8328

E-mail: dox_info@amdocs.com

AMDOCS LIMITED

Consolidated Statements of Income

(In thousands, except per share data)

 

     Three months ended
June 30,		     Nine months ended
June 30,		  
     2025(a)     2024     2025(a)     2024  

Revenue

    $ 1,144,437     $ 1,250,059     $ 3,382,695     $ 3,741,107  

Operating expenses:

         

Cost of revenue

      711,147       809,970       2,091,455       2,424,710  

Research and development

      86,851       90,368       252,980       270,729  

Selling, general and administrative

      127,589       144,027       384,301       434,140  

Amortization of purchased intangible assets and other

      16,380       15,111       48,137       47,719  

Restructuring charges

      —        14,715       6,783       47,875  
  

 

 

    

 

 

    

 

 

    

 

 

  
     941,967       1,074,191       2,783,656       3,225,173  
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

      202,470       175,868       599,039       515,934  

Interest and other expense, net

      (11,705 )      (6,872 )      (26,579 )      (28,300 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

      190,765       168,996       572,460       487,634  

Income taxes

      35,963       27,998       101,805       78,489  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

    $ 154,802     $ 140,998     $ 470,655     $ 409,145  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to noncontrolling interests

      801       709       2,278       2,389  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to Amdocs Limited

    $ 154,001     $ 140,289     $ 468,377     $ 406,756  
  

 

 

    

 

 

    

 

 

    

 

 

  

Basic earnings per share attributable to Amdocs Limited

    $ 1.39     $ 1.22     $ 4.19     $ 3.50  
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted earnings per share attributable to Amdocs Limited

    $ 1.39     $ 1.21     $ 4.17     $ 3.48  
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash dividends declared per ordinary share

    $ 0.527     $ 0.479     $ 1.533     $ 1.393  
  

 

 

    

 

 

    

 

 

    

 

 

  

Basic weighted average number of shares outstanding

      110,614       114,973       111,776       116,075  
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted weighted average number of shares outstanding

      111,188       115,548       112,384       116,738  
  

 

 

    

 

 

    

 

 

    

 

 

  

AMDOCS LIMITED

Selected Financial Metrics

(In thousands, except per share data)

 

     Three months ended
June 30,		      Nine months ended
June 30,		  
     2025(a)      2024      2025(a)      2024  

Revenue

    $ 1,144,437      $ 1,250,059      $ 3,382,695      $ 3,741,107  

Non-GAAP operating income

      244,708        232,390        720,212        687,065  

Non-GAAP net income

      192,170        187,807        582,064        555,260  

Non-GAAP net income attributable to Amdocs Limited

      191,369        187,098        579,786        552,871  

Non-GAAP diluted earnings per share

    $ 1.72      $ 1.62      $ 5.16      $ 4.74  

Diluted weighted average number of shares outstanding

      111,188        115,548        112,384        116,738  

Free Cash Flows

(In thousands)

 

     Three months ended
June 30,		     Nine months ended
June 30,		  
     2025     2024     2025     2024  

Net Cash Provided by Operating Activities

    $ 241,243     $ 191,462     $ 519,256     $ 506,506  

Purchases of property and equipment, net (b)

      (29,421 )      (16,337 )      (72,740 )      (79,683 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Free Cash Flow

    $ 211,822     $ 175,125     $ 446,516     $ 426,823  
 
(a)

During the three months ended December 31, 2024, we phased out several low-margin, non-core business activities, which were included in the prior periods numbers.

(b)

The amounts under “Purchase of property and equipment, net”, include immaterial proceeds from sale of property and equipment for the three and nine months ended June 30, 2025 and 2024, respectively.

AMDOCS LIMITED

Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

(In thousands)

 

     Three Months Ended June 30, 2025(a)  
     GAAP     Amortization
of purchased
intangible
assets and
other		     Equity based
compensation
expense		     Changes in
certain
acquisitions
related
liabilities
measured at
fair value		     Other     Tax
effect		     Non-
GAAP		  

Operating expenses:

               

Cost of revenue

    $ 711,147     $ —      $ (12,652 )    $ (361 )    $ —      $ —      $ 698,134  

Research and development

      86,851         (2,449 )            84,402  

Selling, general and administrative

      127,589         (10,860 )      464           117,193  

Amortization of purchased intangible assets and other

      16,380       (16,380 )              —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      941,967       (16,380 )      (25,961 )      103           899,729  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

      202,470       16,380       25,961       (103 )          244,708  

Interest and other expense, net

      (11,705 )                (11,705 ) 

Income taxes

      35,963               4,870       40,833  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      154,802       16,380       25,961       (103 )        (4,870 )      192,170  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to noncontrolling interests

      801                 801  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to Amdocs Limited

    $ 154,001     $ 16,380     $ 25,961     $ (103 )    $ —      $ (4,870 )    $ 191,369  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     Three Months Ended June 30, 2024  
     GAAP     Amortization
of purchased
intangible
assets and
other		     Equity based
compensation
expense		     Changes in
certain
acquisitions
related
liabilities
measured at
fair value		     Restructuring
charges		     Tax
effect		     Non-
GAAP		  

Operating expenses:

               

Cost of revenue

    $ 809,970     $ —      $ (13,351 )    $ (584 )    $ —      $ —      $ 796,035  

Research and development

      90,368         (2,166 )            88,202  

Selling, general and administrative

      144,027         (10,595 )            133,432  

Amortization of purchased intangible assets and other

      15,111       (15,111 )              —   

Restructuring charges

      14,715             (14,715 )        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      1,074,191       (15,111 )      (26,112 )      (584 )      (14,715 )        1,017,669  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

      175,868       15,111       26,112       584       14,715         232,390  

Interest and other expense, net

      (6,872 )                (6,872 ) 

Income taxes

      27,998               9,713       37,711  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      140,998       15,111       26,112       584       14,715       (9,713 )      187,807  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to noncontrolling interests

      709                 709  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to Amdocs Limited

    $ 140,289     $ 15,111     $ 26,112     $ 584     $ 14,715     $ (9,713 )    $ 187,098  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

AMDOCS LIMITED

Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP

(In thousands)

 

     Nine Months Ended June 30, 2025(a)  
     GAAP     Amortization
of purchased
intangible
assets and
other		     Equity based
compensation
expense		     Changes in
certain
acquisitions
related
liabilities
measured at
fair value		     Restructuring
charges		     Other      Tax
effect		     Non-
GAAP		  

Operating expenses:

                  

Cost of revenue

    $  2,091,455     $ —      $ (38,258 )    $ (721 )    $ —      $ —       $ —      $ 2,052,476  

Research and development

      252,980         (7,003 )               245,977  

Selling, general and administrative

      384,301         (32,873 )      12,602              364,030  

Amortization of purchased intangible assets and other

      48,137       (48,137 )                 —   

Restructuring charges

      6,783             (6,783 )           —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total operating expenses

      2,783,656       (48,137 )      (78,134 )      11,881       (6,783 )           2,662,483  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Operating income

      599,039       48,137       78,134       (11,881 )      6,783            720,212  

Interest and other expense, net

      (26,579 )              5,979          (20,600 ) 

Income taxes

      101,805                  15,743       117,548  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      470,655       48,137       78,134       (11,881 )      6,783       5,979        (15,743 )      582,064  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net income attributable to noncontrolling interests

      2,278                    2,278  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net income attributable to Amdocs Limited

    $ 468,377     $ 48,137     $ 78,134     $ (11,881 )    $ 6,783     $ 5,979      $ (15,743 )    $ 579,786  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

     Nine Months Ended June 30, 2024  
     GAAP     Amortization
of purchased
intangible
assets and
other		     Equity based
compensation
expense		     Changes in
certain
acquisitions
related
liabilities
measured at
fair value		     Restructuring
charges		     Other      Tax
effect		     Non-
GAAP		  

Operating expenses:

                  

Cost of revenue

    $ 2,424,710     $ —      $ (40,126 )    $ 3,000     $ —      $ —       $ —      $ 2,387,584  

Research and development

      270,729         (6,289 )               264,440  

Selling, general and administrative

      434,140         (32,122 )               402,018  

Amortization of purchased intangible assets and other

      47,719       (47,719 )                 —   

Restructuring charges

      47,875             (47,875 )           —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total operating expenses

      3,225,173       (47,719 )      (78,537 )      3,000       (47,875 )           3,054,042  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Operating income

      515,934       47,719       78,537       (3,000 )      47,875            687,065  

Interest and other expense, net

      (28,300 )              5,538          (22,762 ) 

Income taxes

      78,489                  30,554       109,043  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net income

      409,145       47,719       78,537       (3,000 )      47,875       5,538        (30,554 )      555,260  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net income attributable to noncontrolling interests

      2,389                    2,389  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net income attributable to Amdocs Limited

    $ 406,756     $ 47,719     $ 78,537     $ (3,000 )    $ 47,875     $ 5,538      $ (30,554 )    $ 552,871  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

AMDOCS LIMITED

Condensed Consolidated Balance Sheets

(In thousands)

 

     As of  
     June 30,
2025		      September 30,
2024		  

ASSETS

      

Current assets:

      

Cash and cash equivalents

    $ 267,312      $ 346,085  

Short-term interest-bearing investments

      75,154        168,242  

Accounts receivable, net, including unbilled

      956,558        1,028,357  

Prepaid expenses and other current assets

      352,821        228,498  
  

 

 

     

 

 

  

Total current assets

      1,651,845        1,771,182  

Property and equipment, net

      767,083        755,601  

Lease assets

      194,216        149,254  

Goodwill and other intangible assets, net

      3,043,588        3,005,637  

Other noncurrent assets

      675,496        704,468  
  

 

 

     

 

 

  

Total assets

    $ 6,332,228      $ 6,386,142  
  

 

 

     

 

 

  

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

Current liabilities

      

Accounts payable, accruals and other

    $ 1,183,002      $ 1,315,679  

Lease liabilities

      39,772        39,983  

Deferred revenue

      128,378        115,247  
  

 

 

     

 

 

  

Total current liabilities

      1,351,152        1,470,909  

Lease liabilities

      152,118        103,462  

Long-term debt, net of unamortized debt issuance costs

      646,746        646,291  

Other noncurrent liabilities

      636,783        666,303  

Total Amdocs Limited Shareholders’ equity

      3,503,473        3,456,976  

Noncontrolling interests

      41,956        42,201  
  

 

 

     

 

 

  

Total equity

      3,545,429        3,499,177  
  

 

 

     

 

 

  

Total liabilities and equity

    $ 6,332,228      $ 6,386,142  
  

 

 

     

 

 

  

AMDOCS LIMITED

Consolidated Statements of Cash Flows

(In thousands)

 

     Nine months ended
June 30,		  
     2025     2024  

Cash Flow from Operating Activities:

     

Net income

    $ 470,655     $ 409,145  

Reconciliation of net income to net cash provided by operating activities:

     

Depreciation, amortization and impairment

      142,457       143,738  

Amortization of debt issuance cost

      453       445  

Equity-based compensation expense

      78,134       78,537  

Deferred income taxes

      10,898       (12,347 ) 

Loss from short-term interest-bearing investments

      1,869       5,212  

Net changes in operating assets and liabilities, net of amounts acquired:

     

Accounts receivable, net

      57,499       (88,805 ) 

Prepaid expenses and other current assets

      (71,825 )      (9,276 ) 

Other noncurrent assets

      (21,659 )      (21,207 ) 

Lease assets and liabilities, net

      3,483       (10,440 ) 

Accounts payable, accrued expenses and accrued personnel

      (85,590 )      125,063  

Deferred revenue

      13,813       (41,927 ) 

Income taxes payable, net

      (17,781 )      (62,328 ) 

Other noncurrent liabilities

      (63,150 )      (9,304 ) 
  

 

 

    

 

 

  

Net cash provided by operating activities

    $ 519,256     $ 506,506  
  

 

 

    

 

 

  

Cash Flow from Investing Activities:

     

Purchase of property and equipment, net (b)

      (72,740 )      (79,683 ) 

Proceeds from sale of short-term interest-bearing investments

      94,718       49,516  

Purchase of short-term interest-bearing investments

      —        (9,061 ) 

Net cash paid for business and intangible assets acquisitions

      (61,406 )      (86,824 ) 

Net cash from equity investments and other

      16,773       4,182  
  

 

 

    

 

 

  

Net cash used in investing activities

    $ (22,655 )    $ (121,870 ) 
  

 

 

    

 

 

  

Cash Flow from Financing Activities:

     

Repurchase of shares

      (414,924 )      (443,316 ) 

Proceeds from employee stock option exercises

      18,097       19,120  

Payments of dividends

      (166,425 )      (157,264 ) 

Distribution to noncontrolling interests

      (2,523 )      (3,204 ) 

Payment of contingent consideration and deferred payment of business acquisitions

      (9,599 )      (2,063 ) 
  

 

 

    

 

 

  

Net cash used in financing activities

    $ (575,374 )    $ (586,727 ) 
  

 

 

    

 

 

  

Net decrease in cash and cash equivalents

      (78,773 )      (202,091 ) 

Cash and cash equivalents at beginning of period

      346,085       520,080  
  

 

 

    

 

 

  

Cash and cash equivalents at end of period

    $ 267,312     $ 317,989  
  

 

 

    

 

 

  

AMDOCS LIMITED

Supplementary Information

(In millions)

 

     Three months ended  
     June 30,
2025(a)		      March 31,
2025(a)		      December 31,
2024(a)		      September 30,
2024		      June 30,
2024		  

North America

    $ 745.4      $ 738.3      $ 737.4      $ 835.8      $ 828.8  

Europe

      189.4        180.7        155.2        184.1        175.9  

Rest of the World

      209.6        209.2        217.4        244.0        245.3  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Revenue

    $ 1,144.4      $ 1,128.2      $ 1,110.1      $ 1,263.9      $ 1,250.1  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     Three months ended  
     June 30,
2025		      March 31,
2025		      December 31,
2024		      September 30,
2024		      June 30,
2024		  

Managed Services Revenue

    $ 771.5      $ 747.1      $ 728.9      $ 721.4      $ 740.8  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     as of  
     June 30,
2025(a)		      March 31,
2025(a)		      December 31,
2024(a)		      September 30,
2024(c)		      June 30,
2024		  

12-Month Backlog

    $ 4,150      $ 4,170      $ 4,140      $ 4,060      $ 4,250  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(c)

Excluding the phase out of certain business activities in the fourth fiscal quarter of 2024 only.

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