Manhattan Associates Reports Second-Quarter 2026 Financial Results and Details Non-GAAP Performance Adjustments

Adjusted Performance Metrics Exclude Equity Compensation and Restructuring Costs

Manhattan Associates disclosed that its adjusted financial results exclude the impact of equity-based compensation, an unusual health insurance claim net of insurance recoveries, restructuring expenses, and related income tax effects. The company presented adjusted operating income and margin, adjusted income tax provision, adjusted net income, and adjusted diluted earnings per share as supplemental measures to GAAP results. The filing states that these non-GAAP measures are not alternatives to or substitutes for GAAP financial measures and may differ from similarly titled measures used by other companies.

The company provided rationale for excluding equity-based compensation, noting that such expenses typically do not require cash settlement and that tax benefits or deficiencies from vested stock awards can differ materially from the compensation expense recorded for financial reporting purposes. This exclusion allows management and investors to assess underlying operational cash generation separate from equity incentive structures.

Unusual Health Insurance Claim Treated as Non-Recurring Item

Manhattan Associates identified an unusual health insurance claim, net of insurance recoveries, as a discrete adjustment to its adjusted results. The company's disclosure indicates that due to the uncommonly large magnitude and nature of this claim and the timing of related insurance recoveries, management does not characterize this expense as a typical cost resulting from normal operating activities. By excluding this item from adjusted results, the company provides investors with a view of recurring operational performance.

The filing does not disclose the specific dollar amount of the health insurance claim or the amount of insurance recoveries received. The company did not disclose this figure in the filing. The treatment of this item as non-recurring suggests that management views the claim as a one-time event rather than representative of ongoing operational costs.

Restructuring Expenses Related to Workforce and Strategic Priorities

Manhattan Associates reported restructuring expenses in both 2026 and 2025, which the company excludes from its adjusted results. The 2026 restructuring event related to strategic decisions to leverage increased operational efficiencies and focus investments on key strategic priorities. The filing indicates that management does not consider these restructuring costs to be results of normal operating activities, instead viewing them as strategic organizational changes.

The company's 2025 restructuring event involved aligning services capacity with customer demand that had been impacted by macro-economic uncertainty. By excluding restructuring costs from period-to-period comparisons, the filing suggests that the company aims to facilitate comparison of underlying operational performance independent of workforce reduction decisions. The specific dollar amounts of restructuring expenses were not disclosed in this disclosure.

Rationale for Non-GAAP Reporting Methodology

Manhattan Associates explained that it assesses operating performance using adjusted measures and relies on adjusted results as primary metrics to review management team operating performance in connection with executive compensation and bonus plans. The company states that its peers typically present non-GAAP results similarly adjusted, suggesting that adjusted metrics have become industry standard for comparability purposes. Management references adjusted results in making operating decisions because it believes these measures provide meaningful information regarding operational performance and the company's ability to invest in research and development and fund capital expenditures and acquisitions.

The filing indicates that adjusted results facilitate management's internal comparisons to historical operating results and comparisons to competitors' results. By providing this supplemental measurement framework, the company enables internal decision-making and external investor evaluation on a consistent basis that the company believes better reflects underlying business trends.

Investor Information and Internal Performance Evaluation

The company disclosed that it believes reporting adjusted results facilitates investors' understanding of historical operating trends by providing supplemental measurement information in evaluating business results. Manhattan Associates states that adjusted results provide a basis for comparisons to other companies in the industry and enable investors to evaluate operating performance in a manner consistent with the company's internal basis of measurement. This alignment between internal and external reporting frameworks is designed to enhance transparency regarding the metrics management actually uses in operational decision-making.

The filing emphasizes that management believes adjusted results provide meaningful information regarding operational performance and investment capacity. By excluding non-recurring and equity-related items, the company presents a view of results that it contends better reflects the underlying trajectory and sustainability of business operations independent of discrete events or non-cash charges.

Press Release and Complete Financial Data Availability

Manhattan Associates issued a press release on July 28, 2026, providing its financial results for the three and six months ended June 30, 2026. The complete press release is attached as Exhibit 99.1 to the company's disclosure. Pursuant to General Instruction B.2 of the applicable reporting form, this exhibit is furnished and not filed for purposes of Section 18 of the Securities Exchange Act of 1934, which has specific implications regarding liability for forward-looking statements and other disclosure matters.

Investors seeking detailed financial data, comparative period results, and management commentary should consult the full press release attached to this disclosure. The document contains the specific dollar amounts and percentage changes that are not included in the current filing's explanatory sections.

Non-GAAP Measures Require Careful Interpretation

The disclosure emphasizes that non-GAAP financial measures should not be used as a substitute for or considered superior to measures of financial performance prepared in accordance with GAAP. Manhattan Associates cautions investors that adjusted results exclude items that do have financial impact, even if management characterizes them as non-recurring or non-operational in nature. Equity-based compensation, while non-cash, remains a real economic dilution to existing shareholders; restructuring costs, while strategic, represent actual cash outflows; and the health insurance claim, while unusual, reflects actual financial obligations.

Investors evaluating Manhattan Associates' financial performance should consider both GAAP and non-GAAP results in their analysis. While the company provides adjusted measures to illustrate underlying operational trends, the full economic impact of all items excluded from adjusted results should factor into investment decisions. The filing's detailed explanation of adjustment rationale allows investors to make informed judgments about the materiality and recurrence of each excluded item.

Regulatory Filing Details and Corporate Governance

Manhattan Associates, Inc. is a Georgia-incorporated company with its principal executive offices located at 2300 Windy Ridge Parkway, Tenth Floor, Atlanta, Georgia 30339. The company's common stock trades on the NASDAQ Global Select Market under the ticker symbol MANH. The disclosure was signed by Linda Pinne, Senior Vice President and Chief Financial Officer, on July 28, 2026. The company's Commission File Number is 0-23999, and its Internal Revenue Service Employer Identification Number is 58-2373424.

This disclosure represents the company's current report filing obligations under Section 13 or 15(d) of the Securities Exchange Act of 1934. Manhattan Associates indicated that it is not an emerging growth company as defined in applicable SEC rules, and therefore does not utilize extended transition periods for compliance with new or revised financial accounting standards.

Regulatory Filing Structure and Information Framework

The company's disclosure was structured as an Item 2.02 filing covering results of operations and financial condition. The disclosure itemizes exhibits and provides the cover page interactive data file embedded within the Inline XBRL document. The filing includes detailed explanations of non-GAAP adjustment categories, the business rationale for each category, and how these measures relate to internal management evaluation and investor analysis.

Investors and financial analysts should note that the press release itself, referenced in this disclosure, contains the actual financial results figures. The current filing serves primarily to formally disclose that the company has released earnings results and to explain the company's non-GAAP reporting methodology. Detailed revenue, net income, earnings per share, and other specific financial metrics appear in the attached press release rather than in the filing text itself.