NICE Ltd.

NICE Ltd. is a global enterprise software leader delivering mission-critical AI-powered cloud platforms that serve two main markets: Customer Engagement and Financial Crime and Compliance. The company's platforms are designed to automate complex, high-volume, and highly regulated workflows where reliability, security, and measurable outcomes are essential. The markets in which NICE operates are highly competitive, with competitors including large, established software development vendors, infrastructure and enterprise software vendors such as major cloud hyperscalers, large-language-model providers, CRM vendors, and UCaaS providers. In the Customer Engagement space, competitors include Amazon Connect, Avaya, Cisco, Five9, Genesys, and TalkDesk, while in the Financial Crime and Compliance space, competitors include SAS, FICO, Feedzai, Oracle, and Quantexa. The industry is characterized by rapid technological changes, frequent introduction of new offerings, and evolving industry standards, with AI-driven automation and Agentic AI solutions transforming customer service.

NICE holds a leading market position in both the Customer Engagement and Financial Crime and Compliance markets. The company possesses a loyal customer base of more than 25,000 organizations in over 150 countries, across many industries, including 85 of the Fortune 100 companies. NICE is categorically recognized as one of the top leaders by every market research firm that evaluates the markets it operates in. The company's competitive advantages include its AI leadership with purpose-built AI models, domain-specific Agentic AI, comprehensive cloud platforms that are scalable and secure, a broad array of proprietary technologies and algorithms, access to vast amounts of CX data derived from billions of domain-specific interactions, advanced data security and compliance capabilities including FedRAMP authorization with more than 30 authorized applications, and a large and broad partner ecosystem with strategic alliances.

NICE generates revenue from sales of cloud, service, and software products, which include software license, SaaS, network connectivity, hosting, support and maintenance, implementation, configuration, project management, consulting and training. The company sells its offerings directly through its sales-force and indirectly through a global network of distributors, system integrators and strategic partners. Cloud revenue accounted for 76.0% of total revenue in 2025, as part of the company's strategy of increasing cloud revenue as a percentage of total revenue. The cloud offerings are generally purchased by customers on a subscription basis, including those that include consumption-based pricing, and the company plans to continue to promote consumption and utilization pricing models for its cloud offerings.

In the Customer Engagement market, NICE's CXone platform is an enterprise-grade AI platform designed to automate and manage customer engagement at scale, enabling organizations to orchestrate customer interactions across channels and systems, deploy Agentic and human-assisted experiences, and augment the workforce with real-time intelligence. The platform's core capabilities include Agentic Experience Automation, an AI Platform, Engagement Orchestration, and Workforce Empowerment. The company's Evidencentral platform is a digital evidence management and investigation platform for the criminal justice system that transforms how digital evidence and data are managed. In the Financial Crime and Compliance market, NICE Actimize provides purpose-built cloud platforms embedded with AI capabilities for real-time and cross-channel fraud prevention, know-your-customer, anti-money laundering and capital markets compliance. The platforms include X-Sight for the high-end of the market and Xceed for the mid-market, both powered by embedded AI including Machine Learning, Agentic AI, and generative AI.

In the Financial Crime and Compliance market, NICE Actimize provides market-leading purpose-built cloud platforms embedded with AI capabilities for real-time and cross-channel fraud prevention, know-your-customer, anti-money laundering and capital markets compliance. The platforms include X-Sight, an open and flexible AI-cloud platform for the high-end of the market, and Xceed, an AI cloud platform for the mid-market that brings together powerful AI, data intelligence, machine learning, and insights for comprehensive AML and fraud prevention. All Financial Crime and Compliance solutions are infused with Always on AI, a multi-layered approach that injects AI, machine learning, automation, natural language processing, and other advanced technologies throughout the financial crime and compliance value chain. The solutions include hundreds of out-of-the-box engineered models for current risk topologies across global regulatory regimes as well as emerging risk types including cryptocurrencies and cannabis-related risks.

During 2025, NICE completed the acquisition of Cognigy GmbH, a global market leader in conversational and agentic AI, for total final consideration of $887.3 million ¹. The company also completed an additional acquisition for total consideration of $36.5 million ². On January 16, 2025, the company acquired an additional 29.9% in the 2020 Subsidiary for a total consideration of $36,466 ³, making it a wholly-owned subsidiary. During 2025, the company repurchased 3,636,837 ⁴ ordinary shares at an average price of $134.43 ⁵ per share. On May 15, 2025, the Board of Directors authorized an additional new $500 million ⁶ share repurchase program. The 2020 Notes fully matured on September 15, 2025 and were settled in cash in the amount of $460 million ⁷. On February 18, 2026, the company entered into a secured Credit Agreement providing for a senior secured revolving facility in an aggregate amount of $300 million ⁸.

Total revenue increased by 7.7% ⁹ to $2,945.4 million ¹⁰ in 2025 from $2,735.3 million ¹¹ in 2024. Cloud revenue increased by 12.8% ¹² to $2,238.4 million ¹³ from $1,984.2 million ¹⁴ in 2024, and accounted for 76.0% ¹⁵ of total revenue. Gross profit was $1,956.1 million ¹⁶ compared to $1,825.7 million ¹⁷ in 2024, representing a gross margin of 66.4% ¹⁸. Operating income was $645.8 million ¹⁹ compared to $545.9 million ²⁰ in 2024, representing an operating margin of 21.9% ²¹. Net income increased by $169.5 million ²² to $612.1 million ²³ in 2025 compared to $442.6 million ²⁴ in 2024. Diluted earnings per share was $9.67 ²⁵ compared to $6.76 ²⁶ in the prior year. Net cash provided by operating activities was $716.5 million ²⁷ in 2025 compared to $832.6 million ²⁸ in 2024.

AI is an overarching catalyst for NICE's five vectors of growth. AI fuels the company's cloud win rate, as the company is witnessing an enterprise cloud inflection point where the majority of large-scale cloud transitions is about to take place, with AI enhancing differentiation and substantially expanding cloud win rates and displacements. AI is the bedrock of rapid expansion into digital, as NICE's digital solutions encompass the range of digital interactions and AI is a strong contributing factor for migration from legacy digital vendors to NICE. AI fusion powers platform adoption as enterprises are pivoting from multiple point solutions to building and simplifying their tech stack by standardizing on a single platform, a trend gaining significant momentum because it is one of the most viable ways to implement AI. AI automation extends the company's opportunity beyond the contact center, as enterprises look to harness CX specific AI capabilities to replace current manual customer service processes that traverse the traditional contact center and touch additional organizational functions such as back-office operations, marketing, and sales. AI serves as an endless source for lucrative new use-cases, as organizations realize that generic generative AI and LLM solutions are not providing expected results, and NICE's specialized AI, with its thousands of constantly evolving and expanding models based on billions of interactions, is becoming a viable option for addressing complex use-cases.

The continued migration from on-premises infrastructure to cloud-based customer engagement platforms remains a significant driver of industry demand, with many enterprises remaining in early stages of cloud transformation, creating sustained opportunities for cloud platform adoption, recurring revenue expansion, and long-term customer relationships. In the Customer Engagement business, NICE intends to further expand its leadership through strategic AI-powered product launches fueled by organic developments and selective acquisitions, including the acquisition of Cognigy which enables organizations to accelerate AI adoption across front and back-office operations by deploying autonomous AI agents capable of real-time reasoning, adaptation, and decision-making. In the Financial Crime and Compliance business, the company intends to expand to be the largest and leading AI cloud platform provider of fraud, financial crime and compliance solutions in all segments and across all major markets, further embedding AI across its portfolio while leveraging the X-Sight platform to cloudify the high end of the market and enhancing Xceed to be the cloud platform of choice in the mid-market.The company went live with the core financials portion of its new enterprise resource planning system during the first quarter of 2025. The implementation of the ERP system is a complex and time-consuming project and requires transformations of business and finance processes. The scope and timeline for any subsequent phases is still to be determined. The company conducts its research and development activities primarily in Israel, India and the U.S., and intends to continue to devote substantial resources to research and new product and service development. As of December 31, 2025, the company had 9,626 ²⁹ employees worldwide, which represented an increase of approximately 10.3% ³⁰ from December 31, 2024.

The company expects to continue to make significant expenditures on research and development, particularly with respect to new software applications and investments in AI Technologies. Capitalized internal use software costs were $74.8 million ³¹ in 2025. The company's Board authorized a $500 million ³² share repurchase program on May 15, 2025, and on February 18, 2026, the Board further approved an additional new $600 million ³³ share repurchase program. The company does not have any plans at this time to make any future dividend payments. On February 18, 2026, the company entered into a secured Credit Agreement providing for a senior secured revolving facility in an aggregate amount of $300 million ³⁴.

The company faces foreign exchange currency risks as a significant portion of the expenses associated with its Israeli, Indian and Philippines operations, including personnel and facilities related expenses, are incurred in NIS, INR, EUR, and PHP, respectively, whereas most of its business and revenues are generated in dollars, and to a certain extent, in GBP, EUR and other currencies. The company currently benefits from local government programs as well as international programs and local tax benefits that may be discontinued or reduced, or may result in liabilities if underlying conditions are not met. The company is subject to income, non-income and transactional tax regimes in the United States, Israel, India and various other jurisdictions, which are unsettled and may be subject to significant change, and the Organization for Economic Co-operation and Development has proposed changes to numerous long-standing tax principles, namely its Pillar Two framework, which imposes a global minimum corporate tax rate of 15% ³⁵.

The markets in which NICE operates are highly competitive and the company may be unable to compete successfully. The company may not be able to maintain and further expand the growth or profitability of its cloud-based SaaS business. The company may not be able to compensate for loss of on-premises business with the continued shift to cloud-based offerings. The company may not be able to successfully execute its growth strategy. Customers' move to communication channels other than voice channel could materially and adversely affect the success of the company's voice solutions. The company's business could be materially adversely affected as a result of the risks associated with acquisitions and investments.

The markets in which NICE operates are highly competitive, and the company may be unable to compete successfully against larger, established vendors with greater resources, broader product portfolios, and greater brand recognition. The company's cloud-based SaaS business has grown significantly, and if it is not able to compete effectively, generate significant revenues, or maintain the profitability of its cloud business, revenues could decline. The company relies on cloud computing platforms provided by third parties, including PaaS provided by strategic partners such as Amazon and Microsoft, and the inability to use these platforms could have a material adverse impact on the business. The company's IT Systems and those of its third-party providers are vulnerable to ongoing cybersecurity risks and threats, and the company is regularly subject to cyberattacks. The company currently holds 598 ³⁶ U.S. patents and 30 ³⁷ patents issued in additional countries, and faces risks relating to inadequate intellectual property protection and liability resulting from infringement by its products of third-party proprietary rights. The company benefits from Israeli tax benefits relating to its Special Preferred Technology Enterprise and Preferred Technology Enterprise programs, and if these programs are eliminated or the company fails to meet the conditions, its business could be adversely affected.

Management's message emphasizes that NICE is uniquely positioned for ongoing success to enable faster, safer, more personalized and cost efficient interactions occurring in real-time, with offerings that provide constant problem solving that typically transcends economic fluctuations, address complex challenges that require feature-rich solutions preventing commoditization, create an abundance of opportunities fueled by the distinctive lag of technology adoption, and operate in markets burdened by soaring labor-driven costs often exceeding 90% of total expenditures, ripe for the massive shift of spend from labor to automation. The company's long-term strategy is to further broaden its industry leadership in both the Customer Engagement and Financial Crime and Compliance market segments using its unique domain-specific AI capabilities and its foundational platforms, applications and data assets. In January 2025, the company completed a leadership transition with Scott Russell assuming the role of CEO, bringing deep enterprise software and cloud experience to accelerate the AI-first platform strategy. The company continues to lead the industry in both its business segments where the total addressable market is fast-growing due to the opportunities driven by the evolution of AI.