CyberArk Q1 Earnings and Revenues Surpass Estimates, Stock Up

CyberArk Software Ltd. CYBR posted first-quarter 2025 non-GAAP earnings of 98 cents per share, which surpassed the Zacks Consensus Estimate by 24%. The figure improved 30.7% year over year.

CyberArk’s first-quarter 2025 revenues of $317.6 million exceeded the consensus mark by 3.9%. The top line jumped 43.4% year over year, primarily driven by the company’s robust dominance in identity security and world-class execution levels at every step.

The better-than-expected revenues led CyberArk to increase its 2025 projections, instilling confidence in investors and pushing the stock up by 2.96% in the pre-market trading hours of Wednesday. In the past year, CYBR has returned 51.6%, outperforming the Zacks security industry’s growth of 35.7%.

CyberArk’s Q1 Details

CYBR’s strong top-line performance can be attributed to the immense year-over-year rise in its Subscription revenues.

CyberArk Software Ltd. Price, Consensus and EPS Surprise

CyberArk Software Ltd. price-consensus-eps-surprise-chart | CyberArk Software Ltd. Quote

Segment-wise, Subscription revenues (78.9% of the total revenues) were $250.6 million, up 60% from the year-ago quarter. Our estimate for Subscription revenues was pegged at $240.7 million.

Maintenance, professional services and other revenues (21.1% of the total revenues) were $67 million, slightly higher than the year-ago quarter’s $65.3 million. Our estimate for Maintenance and professional services revenues was pegged at $62.2 million.

CyberArk no longer reports perpetual license revenues separately. These are now included in the Maintenance, Professional Services, and Other line item.

CYBR’s non-GAAP gross profit increased 44.6% year over year to $268.6 million. Moreover, the non-GAAP gross margin increased 80 basis points on a year-over-year basis to 84.6%. The non-GAAP operating income increased 74.2% year over year to $57.5 million, while the operating margin expanded 300 bps to 18%.

CyberArk’s Key Business Metrics

As of March 31, 2025, Annual Recurring Revenues (ARR) were $1.22 billion, up 49.8% year over year. The Subscription portion of ARR was $1.03 billion, or 84.6% of total ARR, as of March 31, 2025, up 65% year over year.

The Maintenance portion of ARR was $188 million as of March 31, 2025, down from $190 million on a year-over-year basis. Recurring revenues in the first quarter were $298.2 million, up 44.9% from the first quarter of 2024.

CyberArk’s Balance Sheet & Cash Flow

CyberArk had cash and cash equivalents, marketable securities and short-term deposits of $776.1 million as of March 31, 2025, compared with $841.1 million as of Dec. 31, 2024. The decline in cash balance reflects consideration paid for the acquisition of Zilla.

Long-term debt was $171.2 million as of March 31, significantly higher than $76 million as of Dec. 31. During the first quarter, CyberArk generated operating cash flow and free cash flow of $98.5 million and $95.5 million, respectively.

CyberArk’s Q2 and 2025 Guidance

CyberArk initiated guidance for the second quarter and revised full-year 2025 guidance. For the second quarter, it expects revenues in the band of $312-$318 million. The Zacks Consensus Estimate for revenues is pegged at $311 million, suggesting a year-over-year rise of 38.4%.

Non-GAAP operating income is expected to be in the range of $41.5 million to $46.5 million. Non-GAAP earnings per share are anticipated between 74 cents and 81 cents. The Zacks Consensus Estimate for earnings is pegged at 78 cents per share, indicating a year-over-year increase of 44.4%.

For 2025, CyberArk now expects revenues in the band of $1.313-$1.323 billion, up from the previously guided range of $1.308-$1.318 billion. The Zacks Consensus Estimate for revenues is pegged at $1.31 billion, suggesting a year-over-year rise of 31.33%.

It now expects non-GAAP operating income between $221 million to $229 million, up from the previous guidance of $215-$225 million for 2025. The company now estimates its non-GAAP earnings in the range of $3.73 to $3.85 from the previously guided range of $3.55-$3.70 per share. The Zacks Consensus Estimate for earnings is pegged at $3.66 per share, indicating a year-over-year rise of 20.8%.

CYBR’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 82.8%.

ARR, as of Dec. 31, 2025, is expected to be in the range of $1.410-$1.420 billion, indicating an increase of 21% year over year. The company continues to expect adjusted free cash flow between $300 million and $310 million.

Zacks Rank and Stocks to Consider

Currently, CYBR carries a Zacks Rank #3 (Hold).

Amphenol APH, Juniper Networks JNPR and Upwork UPWK are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. APH, JNPR and UPWK sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

APH shares have gained 26.4% for the past year. The Zacks Consensus Estimate for APH’s full-year 2025 earnings is pegged at $2.62 per share, up by 4 cents over the past seven days, suggesting a growth of 38.6% from the year-ago quarter’s reported figure.

JNPR shares have gained 4.8% in the past year. The Zacks Consensus Estimate for JNPR’s full-year fiscal 2025 earnings has been revised upward to $2.09 in the past 30 days, suggesting year-over-year growth of 21.5%.

UPWK shares have gained 38% over the past year. The Zacks Consensus Estimate for UPWK’s full-year 2025 earnings is pegged at $1.14 per share, implying a rise of 9.62% from the year-ago quarter’s levels.

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This article originally published on Zacks Investment Research (zacks.com).

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