Ivanti Inc., a cybersecurity software firm backed by Clearlake Capital Group, reported that second-quarter revenue and earnings declined, casting doubt on its efforts to boost sales after transitioning to a subscription-based business model.

According to people familiar with the matter, revenue at the company fell to $189 million in the second quarter, marking an 11% decrease from a year earlier. The firm informed its lenders of this downturn, highlighting the challenges faced during its strategic shift.

Additionally, Ivanti generated adjusted earnings before interest, taxes, depreciation and amortization of $72 million on a pro-forma basis. This figure represents a significant 21% drop compared to previous periods. These individuals requested anonymity due to the private nature of the information shared with lenders.

The results underscore the difficulties Ivanti is encountering as it navigates the complexities of moving away from traditional licensing models toward recurring revenue streams in the competitive cybersecurity sector.