Check Point Software Reports 2025 First Quarter Financial Results

Rhea-AI Summary

Check Point Software (NASDAQ: CHKP) has released its Q1 2025 financial results, showing strong growth across key metrics. The company reported total revenues of $638 million, up 7% year over year, with Products & Licenses revenues increasing 14% to $114 million. Security Subscriptions revenues grew 10% to $291 million.

Financial highlights include a 17% increase in Cash Flow from Operations to $421 million, and Calculated Billings reaching $553 million, up 7%. The company's Remaining Performance Obligation (RPO) grew 11% to $2.4 billion. GAAP EPS increased 7% to $1.71, while Non-GAAP EPS rose 9% to $2.21.

CEO Nadav Zafrir noted strong demand for Quantum Force appliances and highlighted the success of their AI-driven Infinity Platform with its Hybrid Mesh Architecture, which delivered double-digit growth year-over-year.

Positive

• Total revenues increased 7% YoY to $638 million
• Products & Licenses revenues grew 14% YoY to $114 million
• Security Subscriptions revenues up 10% YoY to $291 million
• Cash Flow from Operations increased 17% YoY to $421 million
• Non-GAAP EPS grew 9% YoY to $2.21
• RPO increased 11% YoY to $2.4 billion

Negative

• None.

Insights

Financial Analyst

Check Point delivers strong Q1 results with growth across all metrics, particularly impressive 14% increase in product revenues and 17% cash flow growth.

Check Point Software has delivered solid Q1 2025 results with growth across all key financial metrics. Total revenue reached $638 million, representing a 7% year-over-year increase. The standout performer was Products & Licenses revenue, which grew 14% to $114 million, demonstrating robust demand for the company's hardware solutions.

Security Subscriptions revenue increased 10% to $291 million, highlighting the company's successful execution in building recurring revenue streams. This subscription growth contributes to the 11% increase in Remaining Performance Obligation (RPO) to $2.4 billion, providing excellent visibility into future revenue.

Particularly impressive is the 17% growth in Cash Flow from Operations to $421 million, which significantly outpaces revenue growth and indicates strong operational efficiency. Profitability remains healthy with Non-GAAP Operating Income of $259 million, representing 41% of total revenues – an exceptional margin in the cybersecurity sector.

The company's EPS growth reflects successful bottom-line execution, with Non-GAAP EPS increasing 9% to $2.21 and GAAP EPS rising 7% to $1.71. The Calculated Billings figure of $553 million, growing at 7%, aligns with overall revenue growth.

These results demonstrate Check Point is effectively executing its dual strategy of selling security appliances while growing its subscription business, creating a balanced revenue model with strong cash generation capabilities.

Cybersecurity Expert

Strong demand for Quantum Force appliances and AI-driven Infinity Platform shows Check Point successfully balancing hardware and subscription revenue streams.

Check Point's Q1 results reveal important technical trends in enterprise security purchasing patterns. The 14% growth in Products & Licenses revenue indicates organizations are making significant investments in on-premises security infrastructure. CEO Nadav Zafrir specifically attributes this to "strong demand for Quantum Force appliances, fueled by refresh cycles and new projects" – suggesting organizations are upgrading their security gateway infrastructure.

The 10% growth in Security Subscriptions to $291 million demonstrates healthy adoption of the company's software services. This balanced growth across both hardware and subscription offerings is strategically important as it shows Check Point is successfully navigating the industry transition toward subscription models while maintaining strength in traditional appliance sales.

Particularly noteworthy is Zafrir's statement that the "AI-driven Infinity Platform, featuring a Hybrid Mesh Architecture, continues to resonate with customers and delivered another quarter of impressive double-digit year-over-year growth." This confirms Check Point's platform approach is gaining traction as organizations seek integrated security architectures that provide unified protection across environments.

The 17% growth in cash flow and 11% increase in RPO (Remaining Performance Obligation) to $2.4 billion indicates customers are entering longer-term commitments with Check Point, demonstrating confidence in their security architecture approach. These metrics reflect a healthy business trajectory as Check Point balances immediate hardware sales with building predictable recurring revenue streams – a crucial balance in today's cybersecurity landscape.

Fourteen Percent Products & Licenses Revenues Growth

TEL AVIV, Israel, April 23, 2025 (GLOBE NEWSWIRE) -- Check Point® Software Technologies Ltd. (NASDAQ: CHKP), today announced its financial results for the quarter ended March 31^st, 2025.

First Quarter 2025 Financial Highlights:

• Cash Flow from Operations: $421 million, a 17 percent increase year over year

• Calculated Billings* reached $553 million, a 7 percent increase year over year

• Remaining Performance Obligation (RPO)**: $2.4 billion, an 11 percent increase year over year

• Total Revenues: $638 million, a 7 percent increase year over year

• Products & Licenses Revenues: $114 million, a 14 percent increase year over year

• Security Subscriptions Revenues: $291 million, a 10 percent increase year over year

• GAAP Operating Income: $196 million, representing 31 percent of total revenues

• Non-GAAP Operating Income: $259 million, representing 41 percent of total revenues

• GAAP EPS: $1.71, a 7 percent increase year over year

• Non-GAAP EPS: $2.21, a 9 percent increase year over year

"The first quarter results have provided a solid foundation to expand upon as we progress through the year.  Strong demand for our Quantum Force appliances, fueled by refresh cycles and new projects delivered double-digit year-over-year growth in products and licenses revenues," stated CEO Nadav Zafrir. "The AI-driven Infinity Platform, featuring a Hybrid Mesh Architecture, continues to resonate with customers and delivered another quarter of impressive double-digit year-over-year growth."

For information regarding the non-GAAP financial measures discussed in this release, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures, please see below “Use of Non-GAAP Financial Information” and “Reconciliation of GAAP to Non-GAAP Financial Information.”

Conference Call & Video Cast Information
Check Point will host a conference call with the investment community on April 23, 2025, at 8:30 AM ET/5:30 AM PT. To listen to the live videocast or replay, please visit the website www.checkpoint.com/ir.

Second Quarter 2025 Investor Conference Participation Schedule

• Barclays Americas Select Franchise Conference 2025
  May 6, 2025, London, UK – Fireside Chat & 1x1’s

• J.P. Morgan 53^rd Annual Technology, Media, and Telecom Conference
  May 13-15, 2025, Boston, MA – Fireside Chat & 1x1’s

• Oppenheimer 26^th Annual Israeli Conference
  May 18, 2025, Tel Aviv, Israel – Fireside Chat & 1x1’s

• TD Cowen 53^rd Annual TMT Conference
  May 28, 2025, NY, NY – Fireside Chat & 1x1’s

• Jefferies Software Summit
  May 29, 2025, Newport Coast, CA – Fireside Chat &1x1’s

• Stifel 2025 Cross Sector 1x1 Conference
  June 3, 2025, Boston, MA – 1x1’s

• Baird 2025 Global Consumer, Technology & Services Conference
  June 4, 2025, SF, CA – 1x1’s

• Bank of America Merrill Lynch 2025 Global Technology Conference
  June 5, 2025, SF, CA – Fireside Chat & 1x1’s

• TD Cowen 2^nd Annual Corporate Access Day
  June 17, 2025, Toronto, Canada – 1x1’s

Members of Check Point's management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Check Point’s conference presentations are expected to be available via webcast on the company's web site. To hear these presentations and access the most updated information please visit the company's web site at www.checkpoint.com/ir. The schedule is subject to change.

Follow Check Point via:
Twitter: http://www.twitter.com/checkpointsw
Facebook: https://www.facebook.com/checkpointsoftware
Blog: http://blog.checkpoint.com
YouTube: http://www.youtube.com/user/CPGlobal
LinkedIn: https://www.linkedin.com/company/check-point-software-technologies

About Check Point Software Technologies Ltd.
Check Point Software Technologies Ltd. (http://www.checkpoint.com) is a leading AI-powered, cloud-delivered cyber security platform provider protecting over 100,000 organizations worldwide. Check Point leverages the power of AI everywhere to enhance cyber security efficiency and accuracy through its Infinity Platform, with industry-leading catch rates enabling proactive threat anticipation and smarter, faster response times. The comprehensive platform includes cloud-delivered technologies consisting of Check Point Harmony to secure the workspace, Check Point CloudGuard to secure the cloud, Check Point Quantum to secure the network, and Check Point Infinity Core Services for collaborative security operations and services.

Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, expectations regarding our products and solutions, and our participation in investor conferences and other events during the second quarter of 2025. Our expectations and beliefs regarding these matters may not materialize, and actual results or events in the future are subject to risks and uncertainties that could cause actual results or events to differ materially from those projected. These risks include our ability to continue to develop platform capabilities and solutions; customer acceptance and purchase of our existing solutions and new solutions; the market for IT security continuing to develop; competition from other products and services; appointments and departures of our executive officers; and general market, political, economic, and business conditions, including acts of terrorism or war. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the Securities and Exchange Commission on March 17, 2025. The forward-looking statements in this press release are based on information available to Check Point as of the date hereof, and Check Point disclaims any obligation to update any forward-looking statements, except as required by law.

Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Check Point uses non-GAAP measures of operating income, net income and earnings per diluted share, which are adjustments from results based on GAAP to exclude, as applicable, stock-based compensation expenses, amortization of intangible assets and acquisition related expenses and the related tax affects. Check Point’s management believes the non-GAAP financial information provided in this release is useful to investors’ understanding and assessment of Check Point’s ongoing core operations and prospects for the future. Historically, Check Point has also publicly presented these supplemental non-GAAP financial measures to assist the investment community to see the company “through the eyes of management,” and thereby enhance understanding of its operating performance. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors.

* Calculated Billings is a measure that we defined as total revenues recognized in accordance with GAAP plus the change in Total Deferred Revenues during the period.

** Remaining Performance Obligation (RPO) is a measure that represents the total value of non-cancellable contracted products and/or services that are yet to be recognized as Revenue as of March 31, 2025.

CHECK POINT SOFTWARE TECHNOLOGIES LTD. CONSOLIDATED STATEMENT OF INCOME
(Unaudited, in millions, except per share amounts)
	Three Months Ended
	March 31,
	2025			2024
Revenues:
Products and licenses	$	114.1		$	100.3
Security subscriptions		290.6			263.4
Total revenues from products and security subscriptions		404.7			363.7
Software updates, maintenance and services		233.1			235.1
Total revenues		637.8			598.8
Operating expenses:
Cost of products and licenses		23.0			19.9
Cost of security subscriptions		21.4			16.5
Total cost of products and security subscriptions		44.4			36.4
Cost of Software updates and maintenance		32.1			28.7
Amortization of technology		7.6			5.8
Total cost of revenues		84.1			70.9
Research and development		102.1			99.2
Selling and marketing		225.4			206.2
General and administrative		30.7			28.6
Total operating expenses		442.3			404.9
Operating income		195.5			193.9
Financial income, net		27.3			22.6
Income before taxes on income		222.8			216.5
Taxes on income		31.9			32.6
Net income	$	190.9		$	183.9
Basic earnings per share	$	1.77		$	1.64
Number of shares used in computing basic earnings per share		107.9			112.3
Diluted earnings per share	$	1.71		$	1.60
Number of shares used in computing diluted earnings per share		111.4			115.2

CHECK POINT SOFTWARE TECHNOLOGIES LTD. SELECTED FINANCIAL METRICS
(Unaudited, in millions, except per share amounts)
		Three Months Ended
		March 31,
		2025			2024
Revenues		$	637.8		$	598.8
Non-GAAP operating income			258.6			252.0
Non-GAAP net income			246.2			234.5
Non-GAAP diluted earnings per share		$	2.21		$	2.04
Number of shares used in computing diluted Non-GAAP earnings per share			111.4			115.2

CHECK POINT SOFTWARE TECHNOLOGIES LTD. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(Unaudited, in millions, except per share amounts)
		Three Months Ended
		March 31,
			2025				2024
GAAP operating income		$	195.5			$	193.9
Stock-based compensation (1)			41.2				41.6
Amortization of intangible assets and acquisition related expenses (2) (*)			21.9				16.5
Non-GAAP operating income		$	258.6			$	252.0
GAAP net income		$	190.9			$	183.9
Stock-based compensation (1)			41.2				41.6
Amortization of intangible assets and acquisition related expenses (2) (*)			21.9				16.5
Taxes on the above items (3)			(7.8	)			(7.5	)
Non-GAAP net income		$	246.2			$	234.5
GAAP diluted earnings per share		$	1.71			$	1.60
Stock-based compensation (1)			0.37				0.36
Amortization of intangible assets and acquisition related expenses (2) (*)			0.2				0.15
Taxes on the above items (3)			(0.07	)			(0.07	)
Non-GAAP diluted earnings per share		$	2.21			$	2.04
Number of shares used in computing diluted Non-GAAP earnings per share			111.4				115.2
(1) Stock-based compensation:
Cost of products and licenses		$	0.1			$	0.1
Cost of software updates and maintenance			2.1				2.2
Research and development			14.7				14.7
Selling and marketing			14.6				15.9
General and administrative			9.7				8.7
			41.2				41.6
(2) Amortization of intangible assets and acquisition related expenses (*):
Amortization of technology-cost of revenues			7.6				5.8
Research and development			1.5				1.6
Selling and marketing			12.8				9.1
			21.9				16.5
(3) Taxes on the above items			(7.8	)			(7.5	)
Total, net		$	55.3			$	50.6

(*) While amortization of acquired intangible assets is excluded from the measures, the revenue of the acquired companies is reflected in the measures and the acquired assets contribute to revenue generation.

CHECK POINT SOFTWARE TECHNOLOGIES LTD. CONDENSED CONSOLIDATED BALANCE SHEET DATA (In millions) ASSETS
			March 31,			December 31,
			2025 (Unaudited)			2024 (Audited)
Current assets:
Cash and cash equivalents			$	450.2		$	506.2
Marketable securities and short-term deposits				1,012.0			865.7
Trade receivables, net				399.7			728.8
Prepaid expenses and other current assets				94.5			92.7
Total current assets				1,956.4			2,193.4
Long-term assets:
Marketable securities				1,469.8			1,411.9
Property and equipment, net				83.0			80.8
Deferred tax asset, net				80.6			74.7
Goodwill and other intangible assets, net				1,877.9			1,897.1
Other assets				90.2			96.6
Total long-term assets				3,601.5			3,561.1
Total assets			$	5,557.9		$	5,754.5

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Deferred revenues			$	1,389.8			$	1,471.3
Trade payables and other accrued liabilities				394.8				472.9
Total current liabilities				1,784.6				1,944.2
Long-term liabilities:
Long-term deferred revenues				525.6				529.0
Income tax accrual				467.4				459.6
Other long-term liabilities				31.8				32.3
Total long-term liabilities				1,024.8				1,020.9
Total liabilities				2,809.4				2,965.1
Shareholders’ equity:
Share capital				0.8				0.8
Additional paid-in capital				3,125.5				3,049.5
Treasury shares at cost				(14,579.6	)			(14,264.4	)
Accumulated other comprehensive gain				(2.9	)			(10.3	)
Retained earnings				14,204.7				14,013.8
Total shareholders’ equity				2,748.5				2,789.4
Total liabilities and shareholders’ equity			$	5,557.9			$	5,754.5
Total cash and cash equivalents, marketable securities, and short-term deposits			$	2,932.0			$	2,783.8

CHECK POINT SOFTWARE TECHNOLOGIES LTD. SELECTED CONSOLIDATED CASH FLOW DATA
(Unaudited, in millions)
	Three Months Ended
	March 31,
		2025				2024
Cash flow from operating activities:
Net income	$	190.9			$	183.9
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment		5.2				7.3
Amortization of intangible assets		19.2				13.5
Stock-based compensation		41.2				41.6
Realized loss on marketable securities		0.1				-
Decrease in trade and other receivables, net		329.4				265.4
Decrease in deferred revenues, trade payables and other accrued liabilities		(142.1	)			(140.6	)
Deferred income taxes, net		(22.8	)			(10.1	)
Net cash provided by operating activities		421.1				361.0
Cash flow from investing activities:
Investment in property and equipment		(7.4	)			(6.5	)
Net cash used in investing activities		(7.4	)			(6.5	)
Cash flow from financing activities:
Proceeds from issuance of shares upon exercise of options		46.0				45.6
Purchase of treasury shares		(325.0	)			(325.0	)
Payments related to shares withheld for taxes		(1.5	)			(1.1	)
Net cash used in financing activities		(280.5	)			(280.5	)
Unrealized gain on marketable securities, net		15.0				1.6
Increase in cash and cash equivalents, marketable securities, and short-term deposits		148.2				75.6
Cash and cash equivalents, marketable securities, and short-term deposits at the beginning of the period		2,783.8				2,959.7
Cash and cash equivalents, marketable securities, and short-term deposits at the end of the period	$	2,932.0			$	3,035.3

INVESTOR CONTACT: Kip E. Meintzer Check Point Software  +1.650.628.2040  ir@checkpoint.com

MEDIA CONTACT: Gil Messing Check Point Software +1.650.628.2260 press@checkpoint.com

FAQ

What were Check Point Software's (CHKP) Q1 2025 revenue and growth figures?

CHKP reported Q1 2025 total revenues of $638 million, up 7% YoY, with Products & Licenses revenues at $114 million (+14% YoY) and Security Subscriptions at $291 million (+10% YoY).

How did Check Point's (CHKP) earnings per share perform in Q1 2025?

CHKP's GAAP EPS increased 7% YoY to $1.71, while Non-GAAP EPS grew 9% YoY to $2.21.

What is Check Point's (CHKP) current Remaining Performance Obligation (RPO)?

Check Point's RPO reached $2.4 billion in Q1 2025, representing an 11% increase year over year.

How much did Check Point's (CHKP) Cash Flow from Operations grow in Q1 2025?

Cash Flow from Operations reached $421 million, showing a 17% increase compared to the same period last year.

What were the key drivers of Check Point's (CHKP) growth in Q1 2025?

Growth was driven by strong demand for Quantum Force appliances, refresh cycles, new projects, and the AI-driven Infinity Platform with Hybrid Mesh Architecture.