MANH Filings — Manhattan Associates, Inc. - FilingSpy
MANH
Manhattan Associates, Inc.
A maker of cloud-based supply chain and omnichannel commerce software, delivered as a subscription, that helps retailers, wholesalers, manufacturers, and logistics providers track everything from warehouse inventory to store checkout. The name comes not from New York but from Manhattan Beach, California, where five technology experts founded the company in 1990 after a project for clothing retailer Jockey revealed a big gap in how goods moved to store shelves.
Cloud subscriptions rose 26% to $126.7M, but an $8.3M restructuring charge and a 54% increase in sales spending cut operating income 10%.
Cloud subscription growth accelerated for a second straight quarter, but the company restructured its workforce. rose 9% to $297.8M and held at 56.5%, yet fell 10% to $66.2M as an $8.3M and a 54% increase in sales and marketing expense compressed to 22.2%. The company is spending to sustain cloud momentum while cutting costs elsewhere, leaving margin recovery as the open question.
Key takeaways
Cloud subscriptions rose 26% to $126.7M, accelerating from 24% growth last quarter and 22% a year ago, and now represents 42% of total revenue.
fell 10% to $66.2M and contracted 4.8 points to 22.2%, driven by an $8.3M for a 6% global headcount reduction and a 54% increase in sales and marketing expense.
Services rose 3% to $133.0M, a second consecutive quarter of growth after four quarters of decline, while maintenance revenue fell 13% to $30.5M as customers continued migrating from perpetual licenses.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 9% to $297.8M on 26% cloud growth, but operating income fell 10% to $66.2M due to restructuring and higher sales spending.
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Cloud subscriptions grew 26% to $126.7M, now 42% of total revenue, driven by new customer wins and existing customer migrations to Manhattan Active solutions.
Total increased 9% to $297.8M, while services revenue rose 3% to $133.0M and maintenance revenue declined 13% to $30.5M as customers shift from perpetual licenses.
The grew 23% to approximately $2.5 billion, signaling multi-year contracted cloud visibility.
The company repurchased $275.0M of common stock in the first half of 2026, including $125.0M this quarter, and held $186.1M in cash with no debt at quarter-end.
rose 23% to $90.7M and rose 28% to $89.7M, while fell 44% to $157.5M, reflecting the pace of share repurchases.
What changed
Cloud subscription growth accelerated to 26% from 24% last quarter, marking a second consecutive quarter of acceleration after the growth rate had decelerated steadily from 44% in FY2023 to 21% in Q3 2025.
The services recovery continued with 3% growth, following a return to growth of 4% last quarter after four consecutive quarters of decline through Q4 2025.
The 54% increase in sales and marketing expense follows a 32% increase last quarter, indicating a deliberate ramp in spending that management says is aimed at sustaining cloud subscription growth.
The $8.3M for a 6% global headcount reduction is a new action, distinct from the $2.9M Americas-only restructuring in Q1 2025, and signals a broader cost-alignment effort.
Share repurchases accelerated sharply: $275.0M in the first half of 2026 compares to $149.6M in the first half of 2025, and the Board approved a new $500M authorization in Q1 2026.
What to watch
Whether the 26% cloud subscription growth rate can be sustained as the annualized base approaches $500M and the remaining pool of perpetual license customers continues to shrink.
Whether the $8.3M delivers the intended cost savings and whether recovers from 22.2% toward the 25-27% range seen in prior periods.
Whether the 54% increase in sales and marketing expense translates into sustained cloud subscription growth and services demand, or whether it continues to pressure .
The pace of share repurchases under the new $500M authorization, given $275.0M already spent in H1 2026 and a cash balance of $186.1M.
fell 10% to $66.2M and contracted to 22.2% from 27.1%, primarily due to an $8.3M for a 6% global headcount reduction and a 54% increase in sales and marketing expense.
reached approximately $2.5 billion, up 23% , signaling strong contracted future cloud .
The company repurchased $275.0M of common stock in H1 2026 and held $186.1M in cash with no debt, while generating $174.7M in .
Management remains cautious on the global economy and expects to prioritize investments in cloud innovation, global team expansion, and share repurchases for the rest of 2026.
Quantitative and Qualitative Disclosures About Market Risk
There were no material changes to the Quantitative and Qualitative Disclosures about Market Risk previously disclosed in our annual report on Form 10-K for the year ended December 31, 2025.
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There were no material changes to the Quantitative and Qualitative Disclosures about Market Risk previously disclosed in our annual report on Form 10-K for the year ended December 31, 2025.
From time to time, we are involved in litigation relating to claims arising out of the ordinary course of business, and occasionally legal proceedings not in the ordinary course. Many of our installations involve products that are critical to the operations of our clients’ busin…
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From time to time, we are involved in litigation relating to claims arising out of the ordinary course of business, and occasionally legal proceedings not in the ordinary course.
Many of our installations involve products that are critical to the operations of our clients’ businesses. Any failure in one of our products could result in a claim for substantial damages against us, regardless of our responsibility for such failure. Although we attempt to limit contractually our liability for damages arising from product failures or negligent acts or omissions, there can be no assurance that the limitations of liability set forth in our contracts will be enforceable in all instances.
Although litigation and other legal proceeding outcomes are inherently difficult to predict, we do not currently believe we are a party to any legal proceeding the result of which is likely to have a material adverse impact on our business, financial position, results of operations, or cash flows. A description of a lawsuit to which we are currently a party is included in Note 7 to the condensed consolidated financial statements in Part I, Item 1 of this quarterly report on Form 10-Q and are incorporated by reference.
In addition to the information set forth in this report, you should carefully consider the risk factors disclosed in Item 1A, “Risk Factors,” of our annual report on Form 10-K for the year ended December 31, 2025, as supplemented by the risk factors disclosed in 1A, “Risk Factor…
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In addition to the information set forth in this report, you should carefully consider the risk factors disclosed in Item 1A, “Risk Factors,” of our annual report on Form 10-K for the year ended December 31, 2025, as supplemented by the risk factors disclosed in 1A, “Risk Factors,” of our quarterly report on Form 10-Q for the quarter ended March 31, 2026.