CyberArk Announces Strong Third Quarter 2025 Results
Achieves Third Quarter Net New Annual Recurring Revenue (ARR) of
Total ARR Grows
Subscription Portion of ARR Grows
“CyberArk delivered outstanding results, highlighted by record third quarter net new ARR and continued strong execution,” said Matt Cohen, Chief Executive Officer of CyberArk. “We saw robust demand across our business, as customers turn to us to solve their most complex identity security challenges. The proliferation of privilege across human identities, the exponential rise of machine identities, and the emerging need to secure agentic AI create a tremendous opportunity — one that we are uniquely positioned to capture.”
Continued Cohen, “Looking ahead, the combination of CyberArk and Palo Alto Networks will create a powerful growth engine, enabling us to reach more customers and meet the rapidly expanding market. Our customers are very excited about this partnership and the creation of a modern identity security platform for the AI era.”
Financial Summary for the Third Quarter Ended September 30, 2025
The financial results for the third quarter of 2025 include the financial contributions from the acquisition of Venafi, which closed on October 1, 2024, and the financial contributions from the acquisition of Zilla Security, which closed on February 12, 2025. The financial results in the comparable period in 2024 did not include any financial contribution from these acquisitions.
-
Total revenue was
$342.8 million $240.1 million -
Subscription revenue was
$280.1 million $175.6 million -
Maintenance, professional services and other revenue was
$62.7 million $64.5 million -
GAAP operating loss was
$(50.1) million $(11.1) million -
Non-GAAP operating income was
$64.8 million $35.4 million -
GAAP net loss was
$(50.4) million $(1.00) $11.1 million $0.24 -
Non-GAAP net income was
$64.9 million $1.20 $45.1 million $0.94
Balance Sheet and Net Cash Provided by Operating Activities
-
As of September 30, 2025, cash, cash equivalents, short and long-term deposits, and marketable securities were
$1.96 4 billion -
During the three months ended September 30, 2025, the Company’s net cash provided by operating activities was
$50.7 million $54.2 million -
During the three months ended September 30, 2025, adjusted free cash flow was
$51.3 million $0.4 million U.S. headquarters and approximately$8.5 million
Key Business Highlights
-
Annual Recurring Revenue (ARR) was
$1.34 1 billion$926 million -
The Subscription portion of ARR was
$1.15 8 billion$735 million -
The Maintenance portion of ARR was
$183 million $191 million
-
The Subscription portion of ARR was
-
Recurring revenue in the third quarter of 2025 was
$326.3 million $224.2 million
Recent Developments
- CyberArk Introduces First Identity Security Solution Purpose-Built to Protect AI Agents with Privilege Controls.
- CyberArk Named a Leader in the 2025 Gartner® Magic Quadrant™ for Privileged Access Management.(1)
- CyberArk Recognized as a Leader in the Forrester Wave™ for Privileged Identity Management (PIM), Q3 2025.(2)
- CyberArk Named an Overall Leader in 2025 KuppingerCole Leadership Compass for Identity Fabrics.(3)
- CyberArk Named Leader and Outperformer in GigaOm Radar for Enterprise Password Management. (4)
(1) Gartner® Magic Quadrant™ for Privileged Access Management by Abhyuday Data, Paul Mezzera, Shubham Gera, Tarun Rohilla, Michael Kelley, 13 October 2025
(2) The Forrester Wave™: Privileged Identity Management Solutions, Q3 2025 by Geoff Cairns, August 5, 2025
(3) KuppingerCole Analysts “2025 Leadership Compass for Identity Fabrics,” by Martin Kuppinger, May 6, 2025
(4) GigaOm Radar for Enterprise Password Management, by Paul Stringfellow, June 10, 2025
Proposed Transaction with Palo Alto Networks
On July 30, 2025, CyberArk announced that it has entered into a definitive agreement under which Palo Alto Networks (“PANW”) intends to acquire CyberArk in a cash-and-stock transaction valued at approximately
Earnings Conference Call and Guidance
As a result of the proposed transaction with PANW, the Company will not be holding a conference call to discuss its third quarter 2025 results and will not be providing financial guidance.
New Presentation of Revenue Line Items
Beginning in the first quarter of 2025, CyberArk revised the presentation of its lines of revenue and cost of revenue by combining the revenues and cost of revenues previously reported under the “Perpetual license” line and “Maintenance and Professional Services” line under the “Maintenance, Professional Services and Other” line. The Company believes this presentation of revenue and cost of revenue on the consolidated statement of operations aligns with how management evaluates the business. Historical information by quarter for fiscal years 2023 and 2024, which has been retroactively reclassified to reflect the new lines of revenue and cost of revenue, can be found in the PowerPoint presentation posted to CyberArk’s investor relations website.
Gartner Disclaimers
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The Gartner content described herein, (the “Gartner Content”) represent(s) research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. (“Gartner”), and are not representations of fact. Gartner Content speaks as of its original publication date (and not as of the date of this press release) and the opinions expressed in the Gartner Content are subject to change without notice.
Forrester Objectivity Statement
Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. For more information, read about Forrester’s objectivity here.
About CyberArk
CyberArk (NASDAQ: CYBR) is the global leader in identity security, trusted by organizations around the world to secure human and machine identities in the modern enterprise. CyberArk’s AI-powered Identity Security Platform applies intelligent privilege controls to every identity with continuous threat prevention, detection and response across the identity lifecycle. With CyberArk, organizations can reduce operational and security risks by enabling zero trust and least privilege with complete visibility, empowering all users and identities, including workforce, IT, developers and machines, to securely access any resource, located anywhere, from everywhere. Learn more at cyberark.com.
Copyright © 2025 CyberArk Software. All Rights Reserved. All other brand names, product names, or trademarks belong to their respective holders.
Key Performance Indicators and Non-GAAP Financial Measures
Recurring Revenue
- Recurring Revenue is defined as revenue derived from SaaS and self-hosted subscription contracts, and maintenance contracts related to perpetual licenses during the reported period.
Annual Recurring Revenue (ARR)
- ARR is defined as the annualized value of active SaaS, self-hosted subscriptions and their associated maintenance and support services, and maintenance contracts related to the perpetual licenses in effect at the end of the reported period.
Subscription Portion of Annual Recurring Revenue
- Subscription portion of ARR is defined as the annualized value of active SaaS and self-hosted subscription contracts in effect at the end of the reported period. The subscription portion of ARR excludes maintenance contracts related to perpetual licenses.
Maintenance Portion of Annual Recurring Revenue
- Maintenance portion of ARR is defined as the annualized value of active maintenance contracts related to perpetual licenses. The Maintenance portion of ARR excludes SaaS and self-hosted subscription contracts in effect at the end of the reported period.
Net New ARR
- Net new ARR refers to the difference between ARR as of September 30, 2025 and ARR as of June 30, 2025.
Annual Recurring Revenue (ARR), Subscription portion of ARR and Maintenance portion of ARR are performance indicators that provide more visibility into the growth of our recurring business in the upcoming year. This visibility allows us to make informed decisions about our capital allocation and level of investment. Each of these measures should be viewed independently of revenues and total deferred revenue as each is an operating measure and is not intended to be combined with or to replace either of those measures. ARR, Subscription portion of ARR and Maintenance portion of ARR are not forecasts of future revenues and can be impacted by contract start and end dates and renewal rates.
Non-GAAP Financial Measures
CyberArk believes that the use of non-GAAP gross profit, non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, free cash flow and adjusted free cash flow is helpful to our investors. These financial measures are not measures of the Company’s financial performance under
-
Non-GAAP gross profit is calculated as GAAP gross profit excluding share-based compensation expense, and amortization of intangible assets related to acquisitions.
-
Non-GAAP operating expense is calculated as GAAP operating expenses excluding share-based compensation expense, acquisition related expenses, facility exit and transition costs, and amortization of intangible assets related to acquisitions.
-
Non-GAAP operating income is calculated as GAAP operating loss excluding share-based compensation expense, acquisition related expenses, facility exit and transition costs, and amortization of intangible assets related to acquisitions.
-
Non-GAAP net income is calculated as GAAP net income (loss) excluding share-based compensation expense, acquisition related expenses, facility exit and transition costs, amortization of intangible assets related to acquisitions, change in fair value of derivative assets, amortization of debt discount and issuance costs, gain from investment in privately held companies, and tax adjustments.
-
Free cash flow is calculated as net cash provided by operating activities less purchase of property and equipment and other assets, and capitalized internal-use software.
-
Adjusted free cash flow is calculated as free cash flow plus one-time tax payment on the capital gain from the intercompany migration of intellectual property (IP) related to the Venafi acquisition, payments for capital expenditures related to our new
U.S. headquarters and the payments related to the proposed transaction with PANW.
The Company believes that providing non-GAAP financial measures that are adjusted by, as applicable, share-based compensation expense, acquisition related expenses, amortization of intangible assets related to acquisitions, amortization of debt discount and issuance costs, facility exit and transition costs, gain from investment in privately held companies, change in fair value of derivative assets, tax adjustments, purchase of property and equipment and other assets, capitalized internal-use software, one-time tax payment on the capital gain from the intercompany migration of intellectual property, payments related to the proposed transaction with PANW, and payments for capital expenditures related to our new
Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company’s industry, as other companies in the industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures as they exclude expenses that may have a material impact on the Company’s reported financial results. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with
Beginning in the first quarter of 2025, we will utilize a fixed projected non-GAAP tax rate when calculating non-GAAP financial measures to provide better consistency across interim reporting periods. In projecting this rate, we exclude the effects of certain non-recurring items, which do not necessarily reflect our normal operations, and the direct income tax effects of other non-GAAP adjustments. The fixed projected non-GAAP tax rate is based on annual financial projections and reflects our evaluation of historical and projected geographic earnings mix within our operating structure, recurring tax credits, existing tax positions in various jurisdictions and current impacts from key legislation. Based on these considerations, we applied a fixed projected non-GAAP tax rate for 2025 of
Cautionary Language Concerning Forward-Looking Statements
This release contains forward-looking statements, which express the current beliefs and expectations of CyberArk’s (the “Company”) management. These forward-looking statements generally include statements regarding the Company’s financial and operational performance, industry trends, and the proposed transaction with PANW, including the anticipated timing of closing, the anticipated benefits of the transaction, and the combined company’s total addressable market. In some cases, forward-looking statements may be identified by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential” or the negative of these terms or other similar expressions. Such statements involve a number of known and unknown risks and uncertainties that could cause the Company’s future results, levels of activity, performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include, but are not limited to: the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction between PANW and the Company; PANW’s ability to successfully integrate the Company’s businesses and technologies; the risk that the expected benefits and synergies of the proposed transaction may not be fully achieved in a timely manner, or at all; the risk that PANW or the Company will be unable to retain and hire key personnel; the risk associated with the Company’s ability to obtain the approval of its shareholders required to consummate the proposed transaction; the risk that the conditions to the proposed transaction are not satisfied on a timely basis, or at all, or the failure of the proposed transaction to close for any other reason or to close on the anticipated terms; the risk that any regulatory approval, consent or authorization that may be required for the proposed transaction is not obtained or is obtained subject to conditions that are not anticipated or that could adversely affect the expected benefits of the transaction; significant and/or unanticipated difficulties, liabilities or expenditures relating to the transaction; the effect of the announcement, pendency or completion of the proposed transaction on the parties’ business relationships and business operations generally; the effect of the announcement or pendency of the proposed transaction on the parties’ common or ordinary share prices and uncertainty as to the long-term value of PANW’s or the Company’s common or ordinary share; risks related to disruption of management time from ongoing business operations due to the proposed transaction; the outcome of any legal proceedings that may be instituted against PANW, the Company or their respective directors; developments and changes in general or worldwide market, geopolitical, economic, and business conditions; failure of PANW’s platformization product offerings; failure to achieve the expected benefits of PANW’s strategic partnerships and acquisitions; changes in the fair value of PANW’s contingent consideration liability associated with acquisitions; risks associated with managing PANW’s growth; risks associated with new product, subscription and support offerings, including product offerings that leverage AI; shifts in priorities or delays in the development or release of new product or subscription or other offerings, or the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products, subscriptions and support offerings; failure of PANW’s or the Company’s business strategies; rapidly evolving technological developments in the market for security products, subscriptions and support offerings; defects, errors, or vulnerabilities in products, subscriptions or support offerings; PANW’s customers’ purchasing decisions and the length of sales cycles; PANW’s competition; PANW’s ability to attract and retain new customers; PANW’s ability to acquire and integrate other companies, products, or technologies in a successful manner; PANW’s share repurchase program, which may not be fully consummated or enhance shareholder value, and any share repurchases which could affect the price of its common stock; risks related to the Company’s acquisitions of Venafi Holdings, Inc. (“Venafi”) and Zilla Security Inc. (“Zilla”), including potential impacts on operating results; challenges in retaining and hiring key personnel and maintaining the Venafi and Zilla businesses; risks related to the successful integration of the operations of Venafi or Zilla and the ability to realize anticipated benefits of the combined operations; the rapidly evolving security market, increasingly changing cyber threat landscape and the Company’s ability to adapt its solutions to the information security market changes and demands; the Company’s ability to acquire new customers and maintain and expand its revenues from existing customers; real or perceived security vulnerabilities and gaps in the Company’s solutions or services or the failure of customers or third parties to correctly implement, manage and maintain solutions; the Company’s IT network systems, or those of third-party providers, may be compromised by cyberattacks or other security incidents, or by a critical system disruption or failure; intense competition within the information security market; failure to fully execute, integrate, or realize the benefits expected from strategic alliances, partnerships, and acquisitions; the Company’s ability to effectively execute its sales and marketing strategies, and expand, train and retain its sales personnel; risks related to the Company’s compliance with privacy, data protection and AI laws and regulations; the Company’s ability to hire, upskill, retain and motivate qualified personnel; risks related to the integration of AI technology into our operations and solutions; reliance on third-party cloud providers for the Company’s operations and software-as-a-service (SaaS) solutions; the Company’s ability to maintain successful relationships with channel partners, or if channel partners fail to perform; fluctuation in the Company’s quarterly results of operations; risks related to sales made to government entities; economic uncertainties or downturns; the Company’s history of incurring net losses, its ability to generate sufficient revenue to achieve and sustain profitability and its ability to generate cash flow from operating activities; regulatory and geopolitical risks associated with the Company’s global sales and operations; risks related to intellectual property; fluctuations in currency exchange rates; the ability of the Company’s solutions to help customers achieve and maintain compliance with government regulations or industry standards; the Company’s ability to protect its proprietary technology and intellectual property rights; risks related to using third-party software, such as open-source software and other intellectual property; risks related to share price volatility or activist shareholders; any failure to retain the Company’s “foreign private issuer” status or the risk that the Company may be classified, for
| Consolidated Statements of Operations | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| September 30, | September 30, | ||||||||||||||||
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|||
| Revenues: | |||||||||||||||||
| Subscription | $ |
175,577 |
|
$ |
280,125 |
|
$ |
490,230 |
|
$ |
794,486 |
|
|||||
| Maintenance, Professional Services and other |
|
64,525 |
|
|
62,711 |
|
|
196,128 |
|
|
193,981 |
|
|||||
| Total revenues |
|
240,102 |
|
|
342,836 |
|
|
686,358 |
|
|
988,467 |
|
|||||
| Cost of revenues: | |||||||||||||||||
| Subscription |
|
24,569 |
|
|
55,200 |
|
|
68,132 |
|
|
161,122 |
|
|||||
| Maintenance, Professional Services and other |
|
22,616 |
|
|
24,981 |
|
|
66,479 |
|
|
75,865 |
|
|||||
| Total cost of revenues |
|
47,185 |
|
|
80,181 |
|
|
134,611 |
|
|
236,987 |
|
|||||
| Gross profit |
|
192,917 |
|
|
262,655 |
|
|
551,747 |
|
|
751,480 |
|
|||||
| Operating expenses: | |||||||||||||||||
| Research and development |
|
59,306 |
|
|
86,728 |
|
|
169,776 |
|
|
247,528 |
|
|||||
| Sales and marketing |
|
113,690 |
|
|
162,595 |
|
|
333,993 |
|
|
472,636 |
|
|||||
| General and administrative |
|
31,011 |
|
|
63,415 |
|
|
89,422 |
|
|
137,949 |
|
|||||
| Total operating expenses |
|
204,007 |
|
|
312,738 |
|
|
593,191 |
|
|
858,113 |
|
|||||
| Operating loss |
|
(11,090 |
) |
|
(50,083 |
) |
|
(41,444 |
) |
|
(106,633 |
) |
|||||
| Financial income, net |
|
23,442 |
|
|
20,736 |
|
|
50,841 |
|
|
43,098 |
|
|||||
| Income (loss) before taxes on income |
|
12,352 |
|
|
(29,347 |
) |
|
9,397 |
|
|
(63,535 |
) |
|||||
| Taxes on income |
|
(1,242 |
) |
|
(21,091 |
) |
|
(5,740 |
) |
|
(66,268 |
) |
|||||
| Net income (loss) | $ |
11,110 |
|
$ |
(50,438 |
) |
$ |
3,657 |
|
$ |
(129,803 |
) |
|||||
| Basic income (loss) per ordinary share | $ |
0.26 |
|
$ |
(1.00 |
) |
$ |
0.09 |
|
$ |
(2.59 |
) |
|||||
| Diluted income (loss) per ordinary share | $ |
0.24 |
|
$ |
(1.00 |
) |
$ |
0.08 |
|
$ |
(2.59 |
) |
|||||
| Shares used in computing net income (loss) | |||||||||||||||||
| per ordinary shares, basic |
|
43,310,397 |
|
|
50,427,652 |
|
|
42,879,017 |
|
|
50,049,678 |
|
|||||
| Shares used in computing net income (loss) | |||||||||||||||||
| per ordinary shares, diluted |
|
48,260,869 |
|
|
50,427,652 |
|
|
44,290,424 |
|
|
50,049,678 |
|
|||||
CYBERARK SOFTWARE LTD. |
|||||||||
Consolidated Balance Sheets |
|||||||||
|
|||||||||
(Unaudited) |
|||||||||
| December 31, | September 30, | ||||||||
|
2024 |
|
|
2025 |
|
||||
| ASSETS | |||||||||
| CURRENT ASSETS: | |||||||||
| Cash and cash equivalents | $ |
526,467 |
|
$ |
523,559 |
|
|||
| Short-term bank deposits |
|
256,953 |
|
|
418,359 |
|
|||
| Marketable securities |
|
36,356 |
|
|
525,697 |
|
|||
| Trade receivables |
|
328,465 |
|
|
275,715 |
|
|||
| Prepaid expenses and other current assets |
|
45,292 |
|
|
88,793 |
|
|||
| Total current assets |
|
1,193,533 |
|
|
1,832,123 |
|
|||
| LONG-TERM ASSETS: | |||||||||
| Long-term deposits |
|
2,400 |
|
|
53,000 |
|
|||
| Marketable securities |
|
21,345 |
|
|
443,645 |
|
|||
| Property and equipment, net |
|
19,581 |
|
|
31,296 |
|
|||
| Intangible assets, net |
|
534,726 |
|
|
495,792 |
|
|||
| Goodwill |
|
1,317,374 |
|
|
1,444,680 |
|
|||
| Other long-term assets |
|
256,131 |
|
|
297,915 |
|
|||
| Deferred tax asset |
|
3,305 |
|
|
3,556 |
|
|||
| Total long-term assets |
|
2,154,862 |
|
|
2,769,884 |
|
|||
| TOTAL ASSETS | $ |
3,348,395 |
|
$ |
4,602,007 |
|
|||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
| CURRENT LIABILITIES: | |||||||||
| Trade payables | $ |
23,671 |
|
$ |
22,784 |
|
|||
| Employees and payroll accruals |
|
133,400 |
|
|
123,105 |
|
|||
| Accrued expenses and other current liabilities |
|
53,486 |
|
|
94,458 |
|
|||
| Deferred revenues |
|
596,874 |
|
|
615,492 |
|
|||
| Total current liabilities |
|
807,431 |
|
|
855,839 |
|
|||
| LONG-TERM LIABILITIES: | |||||||||
| Convertible senior notes, net |
|
- |
|
|
1,220,870 |
|
|||
| Deferred revenues |
|
95,190 |
|
|
81,120 |
|
|||
| Other long-term liabilities |
|
75,970 |
|
|
108,841 |
|
|||
| Total long-term liabilities |
|
171,160 |
|
|
1,410,831 |
|
|||
| TOTAL LIABILITIES |
|
978,591 |
|
|
2,266,670 |
|
|||
| SHAREHOLDERS' EQUITY: | |||||||||
| Ordinary shares of |
|
130 |
|
|
133 |
|
|||
| Additional paid-in capital |
|
2,494,158 |
|
|
2,569,922 |
|
|||
| Accumulated other comprehensive income |
|
2,173 |
|
|
21,742 |
|
|||
| Accumulated deficit |
|
(126,657 |
) |
|
(256,460 |
) |
|||
| Total shareholders' equity |
|
2,369,804 |
|
|
2,335,337 |
|
|||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ |
3,348,395 |
|
$ |
4,602,007 |
|
|||
CYBERARK SOFTWARE LTD. |
|||||||
Consolidated Statements of Cash Flows |
|||||||
|
|||||||
(Unaudited) |
|||||||
| Nine Months Ended | |||||||
| September 30, | |||||||
|
2024 |
|
|
2025 |
|
||
| Cash flows from operating activities: | |||||||
| Net income (loss) | $ |
3,657 |
|
$ |
(129,803 |
) |
|
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
| Depreciation and amortization |
|
11,983 |
|
|
97,144 |
|
|
| Amortization of premium and accretion of discount on marketable securities, net and other |
|
(3,591 |
) |
|
(3,561 |
) |
|
| Share-based compensation |
|
121,421 |
|
|
167,007 |
|
|
| Deferred income taxes, net |
|
2,764 |
|
|
2,570 |
|
|
| Decrease in trade receivables |
|
20,315 |
|
|
54,595 |
|
|
| Amortization of debt discount and issuance costs |
|
2,257 |
|
|
1,872 |
|
|
| Change in fair value of derivative assets |
|
(2,591 |
) |
|
- |
|
|
| Increase in prepaid expenses, other current and long-term assets and others |
|
(31,778 |
) |
|
(60,315 |
) |
|
| Changes in operating lease right-of-use assets |
|
5,947 |
|
|
10,796 |
|
|
| Decrease in trade payables |
|
(6,078 |
) |
|
(2,819 |
) |
|
| Increase (decrease) in short-term and long-term deferred revenues |
|
45,177 |
|
|
(349 |
) |
|
| Decrease in employees and payroll accruals |
|
(6,195 |
) |
|
(12,175 |
) |
|
| Increase in accrued expenses and other current and long-term liabilities |
|
10,216 |
|
|
35,991 |
|
|
| Changes in operating lease liabilities |
|
(6,353 |
) |
|
(7,018 |
) |
|
| Net cash provided by operating activities |
|
167,151 |
|
|
153,935 |
|
|
| Cash flows from investing activities: | |||||||
| Investment in short and long term deposits |
|
(221,898 |
) |
|
(436,229 |
) |
|
| Proceeds from short and long term deposits |
|
374,707 |
|
|
232,997 |
|
|
| Investment in marketable securities and other |
|
(129,481 |
) |
|
(988,724 |
) |
|
| Proceeds from maturities of marketable securities |
|
204,764 |
|
|
83,903 |
|
|
| Proceeds from sales of marketable securities and other |
|
483,296 |
|
|
253 |
|
|
| Purchase of property and equipment and other assets |
|
(5,515 |
) |
|
(9,055 |
) |
|
| Capitalized internal-use software |
|
(1,575 |
) |
|
(7,371 |
) |
|
| Payments for business acquisitions, net of cash acquired |
|
- |
|
|
(164,383 |
) |
|
| Net cash provided by (used in) investing activities |
|
704,298 |
|
|
(1,288,609 |
) |
|
| Cash flows from financing activities: | |||||||
| Payment of withholding tax related to employee stock plans |
|
(7,661 |
) |
|
(7,689 |
) |
|
| Proceeds from exercise of stock options |
|
5,245 |
|
|
4,875 |
|
|
| Proceeds from issuance of convertible senior notes, net of issuance costs |
|
- |
|
|
1,218,998 |
|
|
| Purchase of capped calls |
|
- |
|
|
(110,000 |
) |
|
| Proceeds in connection with employees stock purchase plan |
|
14,867 |
|
|
20,725 |
|
|
| Net cash provided by financing activities |
|
12,451 |
|
|
1,126,909 |
|
|
| Increase (decrease) in cash and cash equivalents |
|
883,900 |
|
|
(7,765 |
) |
|
| Effect of exchange rate differences on cash and cash equivalents |
|
(1,361 |
) |
|
4,857 |
|
|
| Cash and cash equivalents at the beginning of the period |
|
355,933 |
|
|
526,467 |
|
|
| Cash and cash equivalents at the end of the period | $ |
1,238,472 |
|
$ |
523,559 |
|
|
| CYBERARK SOFTWARE LTD. | ||||||||||||||||
| Reconciliation of GAAP Measures to Non-GAAP Measures | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Reconciliation of Net cash provided by operating activities to Adjusted Free Cash Flow: | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
||
| Net cash provided by operating activities | $ |
54,173 |
|
$ |
50,676 |
|
$ |
167,151 |
|
$ |
153,935 |
|
||||
| Less: | ||||||||||||||||
| Purchase of property and equipment and other assets |
|
(2,008 |
) |
|
(4,571 |
) |
|
(5,515 |
) |
|
(9,055 |
) |
||||
| Capitalized internal-use software |
|
(597 |
) |
|
(3,755 |
) |
|
(1,575 |
) |
|
(7,371 |
) |
||||
| Free cash flow | $ |
51,568 |
|
$ |
42,350 |
|
$ |
160,061 |
|
$ |
137,509 |
|
||||
| Plus: | ||||||||||||||||
| Tax payment related to transfer of Venafi IP |
|
- |
|
|
- |
|
|
- |
|
|
44,112 |
|
||||
| Payments related to the proposed transaction with PANW |
|
- |
|
|
8,491 |
|
|
- |
|
|
8,491 |
|
||||
| Payment for capital expenditures related to new |
|
- |
|
|
418 |
|
|
- |
|
|
418 |
|
||||
| Adjusted free cash flow | $ |
51,568 |
|
$ |
51,259 |
|
$ |
160,061 |
|
$ |
190,530 |
|
||||
| GAAP net cash provided by (used in) investing activities |
|
534,926 |
|
|
(405,864 |
) |
|
704,298 |
|
|
(1,288,609 |
) |
||||
| GAAP net cash provided by (used in) financing activities |
|
6,196 |
|
|
(7,152 |
) |
|
12,451 |
|
|
1,126,909 |
|
||||
| Reconciliation of Gross Profit to Non-GAAP Gross Profit: | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
||
| Gross profit | $ |
192,917 |
|
$ |
262,655 |
|
$ |
551,747 |
|
$ |
751,480 |
|
||||
| Plus: | ||||||||||||||||
| Share-based compensation (1) |
|
5,624 |
|
|
7,293 |
|
|
15,857 |
|
|
19,650 |
|
||||
| Amortization of share-based compensation capitalized in software development costs (3) |
|
81 |
|
|
100 |
|
|
234 |
|
|
288 |
|
||||
| Amortization of intangible assets (2) |
|
1,704 |
|
|
21,338 |
|
|
5,113 |
|
|
64,561 |
|
||||
| Non-GAAP gross profit | $ |
200,326 |
|
$ |
291,386 |
|
$ |
572,951 |
|
$ |
835,979 |
|
||||
| Reconciliation of Operating Expenses to Non-GAAP Operating Expenses: | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
||
| Operating expenses | $ |
204,007 |
|
$ |
312,738 |
|
$ |
593,191 |
|
$ |
858,113 |
|
||||
| Less: | ||||||||||||||||
| Share-based compensation (1) |
|
37,767 |
|
|
56,241 |
|
|
105,564 |
|
|
147,357 |
|
||||
| Amortization of intangible assets (2) |
|
126 |
|
|
8,091 |
|
|
376 |
|
|
23,607 |
|
||||
| Acquisition related expenses |
|
1,144 |
|
|
21,197 |
|
|
6,425 |
|
|
22,302 |
|
||||
| Facility exit and transition costs |
|
- |
|
|
615 |
|
|
- |
|
|
615 |
|
||||
| Non-GAAP operating expenses | $ |
164,970 |
|
$ |
226,594 |
|
$ |
480,826 |
|
$ |
664,232 |
|
||||
| Reconciliation of Operating Loss to Non-GAAP Operating Income: | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
||
| Operating loss | $ |
(11,090 |
) |
$ |
(50,083 |
) |
$ |
(41,444 |
) |
$ |
(106,633 |
) |
||||
| Plus: | ||||||||||||||||
| Share-based compensation (1) |
|
43,391 |
|
|
63,534 |
|
|
121,421 |
|
|
167,007 |
|
||||
| Amortization of share-based compensation capitalized in software development costs (3) |
|
81 |
|
|
100 |
|
|
234 |
|
|
288 |
|
||||
| Amortization of intangible assets (2) |
|
1,830 |
|
|
29,429 |
|
|
5,489 |
|
|
88,168 |
|
||||
| Acquisition related expenses |
|
1,144 |
|
|
21,197 |
|
|
6,425 |
|
|
22,302 |
|
||||
| Facility exit and transition costs |
|
- |
|
|
615 |
|
|
- |
|
|
615 |
|
||||
| Non-GAAP operating income | $ |
35,356 |
|
$ |
64,792 |
|
$ |
92,125 |
|
$ |
171,747 |
|
||||
| Reconciliation of Net Income (Loss) to Non-GAAP Net Income: | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
||
| Net income (loss) | $ |
11,110 |
|
$ |
(50,438 |
) |
$ |
3,657 |
|
$ |
(129,803 |
) |
||||
| Plus: | ||||||||||||||||
| Share-based compensation (1) |
|
43,391 |
|
|
63,534 |
|
|
121,421 |
|
|
167,007 |
|
||||
| Amortization of share-based compensation capitalized in software development costs (3) |
|
81 |
|
|
100 |
|
|
234 |
|
|
288 |
|
||||
| Amortization of intangible assets (2) |
|
1,830 |
|
|
29,429 |
|
|
5,489 |
|
|
88,168 |
|
||||
| Acquisition related expenses |
|
1,144 |
|
|
21,197 |
|
|
6,425 |
|
|
22,302 |
|
||||
| Facility exit and transition costs |
|
- |
|
|
615 |
|
|
- |
|
|
615 |
|
||||
| Amortization of debt discount and issuance costs |
|
753 |
|
|
1,634 |
|
|
2,257 |
|
|
1,872 |
|
||||
| Change in fair value of derivative assets |
|
(2,591 |
) |
|
- |
|
|
(2,591 |
) |
|
- |
|
||||
| Gain from investment in privately held companies |
|
- |
|
|
(1,754 |
) |
|
- |
|
|
(5,072 |
) |
||||
| Tax adjustments (4) |
|
(10,578 |
) |
|
593 |
|
|
(29,787 |
) |
|
15,473 |
|
||||
| Non-GAAP net income | $ |
45,140 |
|
$ |
64,910 |
|
$ |
107,105 |
|
$ |
160,850 |
|
||||
| Non-GAAP net income per share | ||||||||||||||||
| Basic | $ |
1.04 |
|
$ |
1.29 |
|
$ |
2.50 |
|
$ |
3.21 |
|
||||
| Diluted | $ |
0.94 |
|
$ |
1.20 |
|
$ |
2.23 |
|
$ |
3.07 |
|
||||
| Weighted average number of shares | ||||||||||||||||
| Basic |
|
43,310,397 |
|
|
50,427,652 |
|
|
42,879,017 |
|
|
50,049,678 |
|
||||
| Diluted |
|
48,260,869 |
|
|
54,213,736 |
|
|
47,926,888 |
|
|
52,435,569 |
|
||||
| (1) Share-based Compensation : | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
||
| Cost of revenues - Subscription | $ |
1,702 |
|
$ |
2,853 |
|
$ |
4,731 |
|
$ |
7,506 |
|
||||
| Cost of revenues - Maintenance, Professional Services and Other |
|
3,922 |
|
|
4,440 |
|
|
11,126 |
|
|
12,144 |
|
||||
| Research and development |
|
8,541 |
|
|
14,144 |
|
|
24,258 |
|
|
38,177 |
|
||||
| Sales and marketing |
|
17,486 |
|
|
24,527 |
|
|
49,277 |
|
|
65,429 |
|
||||
| General and administrative |
|
11,740 |
|
|
17,570 |
|
|
32,029 |
|
|
43,751 |
|
||||
| Total share-based compensation | $ |
43,391 |
|
$ |
63,534 |
|
$ |
121,421 |
|
$ |
167,007 |
|
||||
| (2) Amortization of intangible assets : | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
||
| Cost of revenues - Subscription | $ |
1,704 |
|
$ |
21,338 |
|
$ |
5,113 |
|
$ |
64,561 |
|
||||
| Sales and marketing |
|
126 |
|
|
8,091 |
|
|
376 |
|
|
23,607 |
|
||||
| Total amortization of intangible assets | $ |
1,830 |
|
$ |
29,429 |
|
$ |
5,489 |
|
$ |
88,168 |
|
||||
| (3) Classified as Cost of revenues - Subscription. | ||||||||||||||||
| (4) Beginning in the first quarter of 2025, we will utilize a fixed projected non-GAAP tax rate in calculating non-GAAP financial measures to provide better consistency across interim reporting periods. In projecting this rate, we exclude the effects of certain non-recurring items, which do not necessarily reflect our normal operations, and the direct income tax effects of other non-GAAP adjustments. The fixed projected non-GAAP tax rate is based on annual financial projections and reflects our evaluation of historic and projected geographic earnings mix within our operating structure, recurring tax credits, existing tax positions in various jurisdictions and current impacts from key legislation. Based on these considerations, we applied a fixed projected non-GAAP tax rate for 2025 of |
||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20251106796809/en/
Investor Relations:
Kelsey Turcotte
CyberArk
617-558-2132
ir@cyberark.com
Media:
Rachel
CyberArk
603-531-7229
press@cyberark.com
Source: CyberArk
