AvePoint Inc. (AVPT) saw its stock decline following a quarterly earnings report that fell short of analyst expectations, despite a 12% year-over-year revenue increase. The miss underscores challenges in margin execution amid rising cloud infrastructure costs.
- AVPT reported adjusted EPS of $0.38, below the $0.42 consensus.
- Q3 revenue rose 12% YoY to $187.2 million.
- Non-GAAP operating margin declined to 18.5% from 21.1% in Q3 2024.
- Stock fell 14.3% in after-hours trading.
- Higher cloud infrastructure costs cited as primary margin pressure.
- Peer stocks in data governance space saw modest declines.
AvePoint (AVPT) reported third-quarter 2025 results that disappointed investors, causing the stock to fall 14.3% in after-hours trading. The company recorded adjusted earnings per share of $0.38, below the consensus estimate of $0.42, while revenue reached $187.2 million, up 12% from the same period last year. The growth was driven by increased demand for its cloud data governance platform, particularly in regulated industries such as financial services and healthcare. The discrepancy between top-line expansion and bottom-line performance highlights ongoing pressure on operating margins. AvePoint’s non-GAAP operating margin contracted to 18.5% in Q3, down from 21.1% in the prior-year quarter, attributed to higher cloud infrastructure expenses and continued investment in product development. Management cited elevated compute costs tied to expanding data residency and compliance features as a key factor. Investors reacted negatively to the margin contraction despite the revenue gain, with analysts revising downward their full-year EPS forecasts. The stock’s performance has drawn attention in the software sector, particularly among peers focused on data governance and cloud security. Shares of similar companies such as Rubrik (RVKB) and Cohesity (COHS) also experienced modest declines, reflecting broader concerns about profitability in the data management space. The earnings miss underscores the growing difficulty for SaaS firms to balance rapid growth with sustainable margins, especially as cloud infrastructure costs continue rising. AvePoint’s management reiterated long-term confidence in its strategic roadmap, including AI-powered data classification tools, but acknowledged near-term headwinds.