CyberArk Announces Strong Third Quarter 2025 Results

NEWTON, Mass. & PETACH TIKVA, Israel--( BUSINESS WIRE)-- CyberArk (NASDAQ: CYBR), the global leader in identity security, today announced strong financial results for the third quarter ended September 30, 2025.

“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.

Balance Sheet and Net Cash Provided by Operating Activities

Key Business Highlights

Recent Developments

(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 $25 billion in equity value, based on per-share consideration of $45.00 in cash and 2.2005 shares of PANW common stock. The press release announcing the transaction is available on the Investor Relations section of the Company’s website. The transaction has been unanimously approved by the boards of directors of both PANW and CyberArk and is expected to close during the second half of PANW’s fiscal 2026, subject to the satisfaction of customary closing conditions, including the receipt of regulatory clearances and approval by the Company’s shareholders.

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.

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Forrester Objectivity Statement

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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.

Key Performance Indicators and Non-GAAP Financial Measures

Recurring Revenue

Annual Recurring Revenue (ARR)

Subscription Portion of Annual Recurring Revenue

Maintenance Portion of Annual Recurring Revenue

Net New ARR

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 U.S. GAAP and should not be considered as alternatives to gross profit, operating loss, net income (loss) or net cash provided by operating activities or any other performance measures derived in accordance with GAAP.

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 U.S. headquarters allows for more meaningful comparisons of its period to period operating results. Share-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in the Company’s business and an important part of the compensation provided to its employees. Share-based compensation expense has varying available valuation methodologies, subjective assumptions and a variety of equity instruments that can impact a company’s non-cash expense. The Company believes that acquisition related expenses, amortization of intangible assets related to acquisitions, facility exit and transition costs, change in fair value of derivative assets, gain from investment in privately held companies, and amortization of debt discount and issuance costs do not reflect the performance of its core business and impact period-to-period comparability. The Company believes free cash flow and adjusted free cash flow are liquidity measures that, after the 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 for capital expenditures related to our new U.S. headquarters and payments related to the proposed transaction with PANW provide useful information about the amount of cash generated by the business.

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 U.S. GAAP. CyberArk urges investors to review the reconciliation of its non-GAAP financial measures to the comparable U.S. GAAP financial measures included below, and not to rely on any single financial measure to evaluate its business.

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 24%. We will provide updates to this rate on an annual basis, or more frequently, if significant events have a material impact on the rate. The rate could be subject to change for a variety of reasons, such as significant changes in the geographic earnings mix, relevant tax law changes in major jurisdictions where we operate, or significant acquisitions. The tax adjustments for the three and nine months ended September 30, 2024 include income tax adjustments related to non-GAAP items.

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 U.S. federal income tax purposes, as a “passive foreign investment company”; risks related to issuance of ordinary shares or securities convertible into ordinary shares and dilution, leading to a decline in the market value of the Company’s ordinary shares; changes in tax laws; the Company’s expectation to not pay dividends on its ordinary shares for the foreseeable future; risks related to the Company’s incorporation and location in Israel, including wars and other hostilities in the Middle East; and other factors discussed under the heading “Risk Factors” in the Company’s most recent annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the Company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

2024

2025

2024

2025

175,577

280,125

490,230

794,486

64,525

62,711

196,128

193,981

240,102

342,836

686,358

988,467

24,569

55,200

68,132

161,122

22,616

24,981

66,479

75,865

47,185

80,181

134,611

236,987

192,917

262,655

551,747

751,480

59,306

86,728

169,776

247,528

113,690

162,595

333,993

472,636

31,011

63,415

89,422

137,949

204,007

312,738

593,191

858,113

(11,090

)

(50,083

)

(41,444

)

(106,633

)

23,442

20,736

50,841

43,098

12,352

(29,347

)

9,397

(63,535

)

(1,242

)

(21,091

)

(5,740

)

(66,268

)

11,110

(50,438

)

3,657

(129,803

)

0.26

(1.00

)

0.09

(2.59

)

0.24

(1.00

)

0.08

(2.59

)

43,310,397

50,427,652

42,879,017

50,049,678

48,260,869

50,427,652

44,290,424

50,049,678

CYBERARK SOFTWARE LTD.

Consolidated Balance Sheets

U.S. dollars in thousands

(Unaudited)

2024

2025

526,467

523,559

256,953

418,359

36,356

525,697

328,465

275,715

45,292

88,793

1,193,533

1,832,123

2,400

53,000

21,345

443,645

19,581

31,296

534,726

495,792

1,317,374

1,444,680

256,131

297,915

3,305

3,556

2,154,862

2,769,884

3,348,395

4,602,007

23,671

22,784

133,400

123,105

53,486

94,458

596,874

615,492

807,431

855,839

1,220,870

95,190

81,120

75,970

108,841

171,160

1,410,831

978,591

2,266,670

130

133

2,494,158

2,569,922

2,173

21,742

(126,657

)

(256,460

)

2,369,804

2,335,337

3,348,395

4,602,007

CYBERARK SOFTWARE LTD.

Consolidated Statements of Cash Flows

U.S. dollars in thousands

(Unaudited)

2024

2025

3,657

(129,803

)

11,983

97,144

(3,591

)

(3,561

)

121,421

167,007

2,764

2,570

20,315

54,595

2,257

1,872

(2,591

)

(31,778

)

(60,315

)

5,947

10,796

(6,078

)

(2,819

)

45,177

(349

)

(6,195

)

(12,175

)

10,216

35,991

(6,353

)

(7,018

)

167,151

153,935

(221,898

)

(436,229

)

374,707

232,997

(129,481

)

(988,724

)

204,764

83,903

483,296

253

(5,515

)

(9,055

)

(1,575

)

(7,371

)

(164,383

)

704,298

(1,288,609

)

(7,661

)

(7,689

)

5,245

4,875

1,218,998

(110,000

)

14,867

20,725

12,451

1,126,909

883,900

(7,765

)

(1,361

)

4,857

355,933

526,467

1,238,472

523,559

2024

2025

2024

2025

54,173

50,676

167,151

153,935

(2,008

)

(4,571

)

(5,515

)

(9,055

)

(597

)

(3,755

)

(1,575

)

(7,371

)

51,568

42,350

160,061

137,509

44,112

8,491

418

51,568

51,259

160,061

190,530

534,926

(405,864

)

704,298

(1,288,609

)

6,196

(7,152

)

12,451

1,126,909

2024

2025

2024

2025

192,917

262,655

551,747

751,480

5,624

7,293

15,857

19,650

100

234

288

1,704

21,338

5,113

64,561

200,326

291,386

572,951

835,979

2024

2025

2024

2025

204,007

312,738

593,191

858,113

37,767

56,241

105,564

147,357

126

8,091

376

23,607

1,144

21,197

6,425

22,302

615

164,970

226,594

480,826

664,232

2024

2025

2024

2025

(11,090

)

(50,083

)

(41,444

)

(106,633

)

43,391

63,534

121,421

167,007

100

234

288

1,830

29,429

5,489

88,168

1,144

21,197

6,425

22,302

615

35,356

64,792

92,125

171,747

2024

2025

2024

2025

11,110

(50,438

)

3,657

(129,803

)

43,391

63,534

121,421

167,007

100

234

288

1,830

29,429

5,489

88,168

1,144

21,197

6,425

22,302

615

753

1,634

2,257

1,872

(2,591

)

(2,591

)

(1,754

)

(5,072

)

(10,578

)

593

(29,787

)

15,473

45,140

64,910

107,105

160,850

1.04

1.29

2.50

3.21

0.94

1.20

2.23

3.07

43,310,397

50,427,652

42,879,017

50,049,678

48,260,869

54,213,736

47,926,888

52,435,569

2024

2025

2024

2025

1,702

2,853

4,731

7,506

3,922

4,440

11,126

12,144

8,541

14,144

24,258

38,177

17,486

24,527

49,277

65,429

11,740

17,570

32,029

43,751

43,391

63,534

121,421

167,007

2024

2025

2024

2025

1,704

21,338

5,113

64,561

126

8,091

376

23,607

1,830

29,429

5,489

88,168