CyberArk reported third‑quarter 2025 results that surpassed analyst expectations, with net new annual recurring revenue (ARR) of $68 million—an increase of 16% year‑over‑year—and total ARR rising 45% to $1.341 billion, of which the subscription portion grew 57% to $1.158 billion. Total revenue reached $342.8 million, up 43% from $200.5 million in Q3 2024, while subscription revenue climbed 60% to $280.1 million, reflecting a strong mix shift toward higher‑margin recurring contracts.
The revenue beat of $14.8 million was driven by robust demand in CyberArk’s core identity‑security segments, amplified by the recent integration of Venafi’s machine‑identity capabilities and Zilla Security’s AI‑powered identity‑governance tools. The company’s pricing power remained intact, with subscription revenue growth outpacing the modest decline in maintenance, professional services, and other revenue, which fell slightly from $64.5 million to $62.7 million.
GAAP operating loss widened to $50.1 million from $11.1 million in the same quarter last year, largely due to higher operating expenses associated with the Venafi and Zilla acquisitions and ongoing integration costs. In contrast, Non‑GAAP operating income improved to $64.8 million—an 19% margin—thanks to a higher mix of subscription revenue and disciplined cost management, which offset the GAAP loss and underscored the company’s operational leverage.
GAAP net loss of $50.4 million, compared with a $11.1 million net income in Q3 2024, was offset by a Non‑GAAP net income of $64.9 million, up from $45.1 million. The improvement reflects the stronger operating income and the company’s ability to control non‑recurring expenses, while the GAAP loss highlights the impact of integration‑related charges.
Cash, cash equivalents, and short‑term investments stood at $1.964 billion as of September 30, 2025. Net cash from operating activities was $50.7 million, and adjusted free cash flow reached $51.3 million, indicating healthy liquidity and the ability to fund ongoing investments and potential future acquisitions.
CyberArk’s management emphasized that the pending acquisition by Palo Alto Networks will create a “powerful growth engine” and that the company is well positioned to capture the expanding market for AI and machine‑identity security. CEO Matt Cohen noted that “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.” The company will not hold a conference call or provide forward guidance for the next quarter, a decision tied to the uncertainty surrounding the integration with Palo Alto Networks.
The results demonstrate that CyberArk’s strategic acquisitions and focus on AI‑enabled identity security are translating into tangible revenue growth and margin improvement, while the company remains committed to maintaining liquidity and investing in its platform to support the upcoming merger.
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