CyberArk Software Ltd.

Q1 2025 total revenue was $317.6 million, up from guidance and supported by 94% recurring revenue; subscription revenue was $250.6 million and maintenance/professional services/other was $67 million. Annual recurring revenue was $1.215 billion, net new ARR was $46 million versus $37 million a year ago, gross profit was $269 million with an 85% gross margin, operating income was $57.5 million with an 18% operating margin, net income was $50.3 million or $0.98 per diluted share, and free cash flow was $95.5 million. For Q2 2025, management guided to revenue of $312 million to $318 million, non-GAAP operating income of $41.5 million to $46.5 million, and EPS of $0.74 to $0.81. For full-year 2025, guidance was raised to revenue of $1.313 billion to $1.323 billion, operating income of $221 million to $229 million, EPS of $3.73 to $3.85, ARR of $1.410 billion to $1.420 billion, and adjusted free cash flow of $300 million to $310 million.

Matt Cohen’s message was that identity security is increasingly mission-critical and that CyberArk is positioned as the only unified platform spanning human, machine and AI identities. He emphasized strong customer demand, especially around platform consolidation, machine identities and AI agents, and said the company is seeing constructive C-suite-level conversations. His tone was confident and upbeat, but he also noted that the company is watching macro conditions closely and will stay disciplined if trends change.

Erica Smith highlighted that Q1 exceeded all guided metrics, with ARR of $1.215 billion, net new ARR of $46 million, revenue of $317.6 million, 85% gross margin, 18% operating margin, EPS of $0.98 and free cash flow of $95.5 million. She said Venafi integration is progressing ahead of expectations, Zilla contributed about $5 million of ARR at closing, and the company ended the quarter with about $776 million in cash after paying roughly $165 million for Zilla. On guidance, she raised full-year revenue, operating income, EPS, ARR and free cash flow, while also noting a $42 million estimated one-time tax payment tied to Venafi SaaS IP migration, ongoing BEAT tax of about $17 million to $20 million, and higher CapEx guidance of 2.5% to 3% of revenue due to leasehold improvements for a new US headquarters.

Analysts focused on multi-product selling, maintenance conversion, macro caution in guidance, Venafi and Zilla adoption, machine-identity pricing, and competitive dynamics. Management said customers increasingly want platform-wide conversations, about half of new logos land with two or more solutions, and the top 10 deals in Q1 were mostly multi-solution. On guidance, Erica said there were no actual macro headwinds in Q1; the company simply used a more conservative assumption because of tariff and macro volatility. Matt also said sales cycles have not lengthened, but displacement of legacy IGA can take longer, so the guide assumes a sit-alongside motion rather than aggressive disruption.