Manhattan Associates, Inc. (MANH) Business Profile

What it does

Manhattan Associates develops software that helps organizations manage the movement and availability of goods. Its customers include retailers, wholesalers, manufacturers and logistics providers. Founded in 1990, the company is headquartered in Atlanta, Georgia.

Its supply chain execution products help customers run warehouses and distribution centers, manage transportation and coordinate workers and automation. For example, warehouse software tracks the flow of goods and information through a distribution center, while transportation software helps plan and manage freight movements.

Its commerce products help merchants manage orders and inventory across stores and online channels. They also provide point-of-sale and customer-service tools. A retailer can use these products to see inventory across its network and support services such as buying online and picking up in a store.

Manhattan also sells planning software that helps distributors forecast demand, replenish stock and decide how to allocate inventory across locations. Its planning applications connect with warehouse, transportation, order and store systems.

The company delivers its Manhattan Active applications as cloud-based subscriptions. Customers receive software updates on a quarterly basis and can configure or extend the applications. Manhattan also offers some products for installation on a customer’s own premises, along with implementation, training and support services.

How it makes money

Manhattan earns revenue from cloud subscriptions, software licenses, maintenance, professional services and hardware resale. Its business is organized into geographic segments: the Americas; Europe, Middle East and Africa; and Asia Pacific.

Total revenue was $1,081.4 million in 2025.

Cloud customers pay a periodic fee to use software in an environment that Manhattan provides and manages. Manhattan Active subscriptions are sold directly under multi-year agreements, typically for five years or more, and revenue is recognized over the agreement term. The subscription includes the developer toolkit customers can use to modify applications. Customers with older perpetual licenses can convert their maintenance contracts to cloud subscriptions.

Services include planning and implementing software, transferring customer data, consulting and training. Substantially all customers use some professional services to implement and support their software. These services are typically billed by the hour under time-and-materials contracts, although some are sold for a fixed fee tied to dates or milestones.

Maintenance applies to licensed software and provides support and upgrades when available. Customers prepay an annual fee based on the solutions and service level they have selected. Manhattan expects maintenance revenue to decline as it develops its cloud offerings, with additional cloud revenue offsetting the decline.

The company also sells some perpetual licenses and resells hardware made by other companies. In 2025, services accounted for 47% of revenue and cloud subscriptions for 38%. Manhattan’s technology deals often combine software and services, with total pricing in many cases exceeding $1.0 million.

Customers and how it sells

Manhattan serves suppliers, manufacturers, distributors, retailers and logistics providers across industries. Its solutions address markets including retail, consumer goods, food and grocery, industrial and wholesale, electronics, life sciences and government.

The company’s top five customers together accounted for 10% of total revenue in 2025. No single customer accounted for more than 10% of total revenue that year. Manhattan sells to new customers and also seeks to expand existing installations or sell customers additional products.

Direct sales generated the majority of cloud subscription and software license revenue. Sales teams work through product demonstrations, site visits, customer references and negotiations; sales cycles typically take nine to twelve months. Resellers and other partners help the company reach markets where it does not have a direct sales presence, while systems integrators can provide referrals and implementation personnel.

In 2025, approximately 65% of revenue came from the United States and 20% from Europe, the Middle East and Africa. Manhattan has offices across the Americas, Europe and Asia Pacific, as well as representatives and reseller partnerships in additional markets. It employed approximately 4,370 people worldwide at December 31, 2025.

Suppliers and costs

Manhattan’s cloud products depend on external infrastructure. The server-side stack for the Manhattan Active platform runs exclusively on Google Cloud Platform. Its cloud-based SCALE product runs on Microsoft Azure, and the company also uses third-party large language models in its AI work.

Manhattan resells hardware manufactured by other companies, including scanners, printers and radio-frequency equipment. It buys the hardware after receiving a customer order rather than maintaining hardware inventory. Manufacturers or distributors provide technical support under the company’s reseller arrangements.

The company conducts most research and development internally in the United States and India, while sometimes outsourcing separate projects or work requiring specialized skills. Its professional services organization employs consultants, analysts and technical personnel to implement and support customer systems; third-party consultants also assist with some implementations.

Other activities requiring investment include sales, marketing, customer support and cloud product development. Manhattan plans to continue investing in its cloud business, innovation and operating expenses that support its growth objectives. It has a worldwide workforce of approximately 4,370 employees at December 31, 2025.

Competitive position

Manhattan competes with enterprise resource planning vendors such as Oracle, SAP and Infor; supply chain execution and planning providers including Blue Yonder/Panasonic, E2Open, Infios and IBM’s Sterling Commerce division; and point-of-sale vendors including Aptos, Oracle, Jumpmind and Salesforce. Customers’ own technology departments and smaller independent software companies also compete with it.

Competition involves software features and architecture, industry expertise, integration, implementation speed, support, price and total cost of ownership. Some current or potential competitors have more resources, broader offerings or larger customer bases. Manhattan expects competition from vendors that develop, acquire or partner to add supply chain capabilities.

Manhattan’s applications connect planning with execution and can interoperate with other providers’ software and customers’ existing systems. Its professional services teams help customers configure, implement and integrate those applications. The company also provides quarterly updates to Manhattan Active customers on a shared codebase.

Our reading: integration with customers’ operations and the work needed to implement the software can support customer relationships, although the evidence does not establish how difficult customers would find switching. Our reading: the connected product suite and regular updates provide another competitive advantage, but rivals’ broader offerings and continued investment make its durability uncertain.

Growth opportunities

Manhattan is investing in its cloud business, product innovation and sales and marketing teams. Its goals include expanding the Manhattan Active suite and growing cloud subscription revenue. It also seeks additional business from existing customers through expanded installations and sales of new or add-on products.

Cloud subscription revenue increased from $337.2 million in 2024 to $408.1 million in 2025. Of the total value of new non-cancelable cloud subscriptions signed in 2025, excluding renewals, approximately 56% was with new customers and 44% with existing customers.

At December 31, 2025, remaining performance obligations were approximately $2.2 billion. These represent contracted revenue not yet recognized, including deferred revenue and non-cancelable amounts expected to be invoiced and recognized in future periods. Over 98% represented cloud-native subscriptions with a non-cancelable term greater than one year.

The company continues to develop its planning, supply chain and commerce products. It plans to expand generative AI investment and introduce Manhattan Active Agents, including a module that lets customers create their own agents. It also seeks international expansion through direct operations and partners, and evaluates acquisitions of complementary technologies and businesses. Manhattan believes increased solution sales will drive demand for its professional services.

Structural risks

• Cloud sales and customer spending: Future revenue depends on continuing cloud subscription sales, which also drive professional services. Economic and business conditions can affect demand, while customers may delay capital spending or seek extended payment terms.
• Competition: Larger vendors may offer broader solutions or develop comparable functionality. Increased competition could lead to price reductions, fewer orders, lower margins or lost market share. Manhattan may need further investment in development, sales and support to respond.
• Technology and AI: Software bugs could harm Manhattan’s reputation and results. The benefits, risks and liabilities of generative and agentic AI in business environments remain uncertain, including risks to proprietary rights.
• Intellectual property: Manhattan may not successfully prevent misuse or independent development of its technology. Infringement claims, even without merit, can be time-consuming and costly, and may require licensing arrangements or delay products.
• International operations: The business faces risks associated with operating internationally, including currency exchange rate fluctuations and geopolitical developments. Intellectual property protections may also be less effective in countries where laws are poorly developed or enforced.

Bottom line

Our reading

Manhattan combines multi-year software subscriptions with implementation and support services for customers managing physical goods and commerce operations. Its contracted cloud backlog and connected products support the business, while future performance depends on continued subscription sales and the ability to compete with vendors that can offer broader software suites. Its reliance on external cloud infrastructure and customers’ willingness to fund technology projects are additional exposures.