Forgent's First 10-K: FY26 Revenue Climbs 89% to $1.42B, Backlog Reaches $3B, and a $339M TRA Liability Emerges
FPS sits 25% above its 52-week low of $25.95.
Summary
Forgent's first 10-K confirms record FY2026 results with revenue up 89% to $1.42B and backlog at $3B, while disclosing a $339M Tax Receivable Agreement liability and FY2027 guidance of $2.4–$2.6B revenue.
Key Events · Earnings and Guidance · FPS
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Record FY2026 Results
Revenue of $1.42 billion, up 89% YoY; net income of $106 million, up 508%; adjusted EBITDA of $322.9 million, up 91%.
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Backlog Reaches $3.0 Billion
Backlog grew 256% YoY to $3.0 billion, with Q4 bookings of $1.5 billion representing a 3.3x book-to-bill ratio.
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FY2027 Guidance Initiated
Revenue guided to $2.4–$2.6 billion (76% growth at midpoint), adjusted EBITDA to $575–$625 million, and adjusted EPS to $1.26–$1.40.
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$339M Tax Receivable Agreement Liability
The 10-K discloses a $338.9 million TRA payable to Continuing Equity Owners, representing 85% of tax benefits from IPO and follow-on offering redemptions; no payments made yet.
Analysis · FPS · Manufacturing
The first annual report from Forgent as a public company confirms the blowout FY2026 results already previewed in today's 8-K, but adds critical audited detail. Revenue grew 89% to $1.42 billion with net income of $106 million, and backlog reached $3.0 billion — up 256% year-over-year. The 10-K also reveals a $338.9 million Tax Receivable Agreement liability that will require substantial future cash payments to the Continuing Equity Owners, a $598.5 million term loan, and the fact that Neos Partners still controls 37.2% of voting power despite losing controlled-company status. The company guided FY2027 revenue to $2.4–$2.6 billion, implying roughly 76% growth at the midpoint, and announced a $35 million capacity expansion at its Tijuana campus expected online in Q4 FY2027.
How filings like this one have moved
In the 30 days to Sep 30, 2026, 34.9% of the 1020 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.54%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, FPS was trading at $32.40 on NYSE in the Manufacturing sector, with a market capitalization of approximately $8.7B. The 52-week trading range was $25.95 to $66.00. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.