CyberArk Software (CYBR)·Q4 2025 Earnings Summary
CyberArk Delivers Record Q4 as Palo Alto Networks Acquisition Looms
February 4, 2026 · by Fintool AI Agent
CyberArk (NASDAQ: CYBR) reported record Q4 2025 results, delivering its 8th consecutive earnings beat with revenue of $372.7M (+19% YoY) and non-GAAP EPS of $1.33 (+66% YoY). The identity security leader hit an ARR milestone of $1.44B, driven by accelerating demand for identity security across human, machine, and AI identities. However, the stock fell ~5% as the company declined to provide 2026 guidance due to the pending acquisition by Palo Alto Networks.
Did CyberArk Beat Earnings?
Yes — CyberArk beat on both revenue and EPS:
The Q4 beat extended CyberArk's streak to 8 consecutive quarterly beats on EPS. Non-GAAP net income surged 79% YoY to $72.6M, driven by strong subscription revenue growth and operating leverage.
Ask Fintool AI AgentWhat Drove the Beat?
Record ARR and Subscription Momentum
CyberArk's transition to a subscription-first model continued to accelerate:
Subscription ARR now represents 88% of total ARR, up from 84% a year ago. The declining Maintenance ARR reflects the successful conversion of legacy perpetual license customers to subscription contracts.
Revenue Composition Shift
Recurring revenue reached 96% of total revenue in Q4, up from 93% in Q4 2024:
SaaS revenue grew 40% YoY, while self-hosted subscription revenue grew 12% YoY. SaaS deferred revenue increased 39% YoY to $563M, indicating strong visibility into future revenue.
What Changed From Last Quarter?
Profitability Expansion
CyberArk achieved its strongest profitability metrics in company history:
The company achieved Rule of 40 status in FY 2025, combining 19% revenue growth with 20% non-GAAP operating margin.
Cash Generation Surge
Adjusted free cash flow reached $127.5M in Q4, up 110% from $60.8M in Q4 2024. Full-year adjusted FCF was $318M, representing a 34% margin. Cash and investments stood at $2.1B at quarter-end.
Ask Fintool AI AgentFull-Year 2025 Highlights
FY 2025 was a milestone year for CyberArk, including the acquisitions of Venafi (Q4 2024) and Zilla Security (February 2025):
What Did Management Say?
CEO Matt Cohen emphasized the strength of identity security demand:
"CyberArk delivered an outstanding fourth quarter, driven by broad-based strength across the business. We achieved record net new ARR of $99 million, growing 20% year-over-year, as customers prioritize identity security and the need to apply privilege controls across human, machine, and agentic AI identities."
On the pending Palo Alto Networks acquisition:
"2025 marked another milestone year for CyberArk, and our strong finish positions us exceptionally well as we move toward the planned combination with Palo Alto Networks. Together, we will deliver an unparalleled platform capable of addressing the rapidly evolving and increasingly complex security requirements of the AI era."
What Did Management Avoid?
No 2026 guidance provided. Due to the pending acquisition by Palo Alto Networks, CyberArk declined to hold an earnings call or provide financial guidance for 2026. This leaves investors without visibility into management's near-term expectations.
No comments on deal timing risks. Management did not address potential regulatory hurdles or timeline risks for the PANW acquisition, which is expected to close in Q3 of PANW's fiscal 2026 (January-April 2026).
The Palo Alto Networks Acquisition
On July 30, 2025, Palo Alto Networks announced its intent to acquire CyberArk. Key details:
- Expected close: Q3 of PANW's fiscal 2026 (calendar Q1-Q2 2026)
- Conditions: Regulatory approvals pending
- Strategic rationale: Combined platform to address identity security in the AI era
The acquisition creates a comprehensive security platform combining PANW's network and cloud security with CyberArk's identity security leadership, addressing an $80B total addressable market.
How Did the Stock React?
CYBR shares fell 4.8% on earnings day, closing at $406.67 versus a previous close of $427.27.
The selloff likely reflects:
- No forward guidance due to pending acquisition
- No earnings call to address investor questions
- Deal uncertainty as investors await regulatory approvals
Despite the post-earnings decline, CYBR shares remain up significantly from the pre-acquisition announcement level. The stock has traded in a range bounded by acquisition economics since July 2025.
Geographic and Vertical Diversification
CyberArk's business remains well-diversified:
ARR by Geography:
- Americas: 60%
- EMEA: 30%
- APJ: 10%
ARR by Vertical:
- Banking & Financial Services: 25%
- Government: 12%
- Manufacturing: 11%
- Healthcare: 8%
- IT Services & Software: 8%
- Insurance: 8%
- All Others: 28%
Ask Fintool AI AgentKey Takeaways
- Record quarter: $99M net new ARR, $372.7M revenue, $1.33 non-GAAP EPS — all records
- Subscription momentum: 30% growth in subscription ARR, now 88% of total
- Profitability inflection: Rule of 40 achieved with 20% non-GAAP operating margin
- Strong cash generation: 34% adjusted FCF margin, $2.1B cash position
- No guidance: PANW acquisition prevents forward visibility
- Deal pending: Expected close Q3 FY26 PANW (early 2026), regulatory approvals outstanding
CyberArk's Q4 2025 results demonstrate a business firing on all cylinders, but the investment story now centers on the Palo Alto Networks acquisition. With no 2026 guidance and no earnings call, investors are left to wait for deal closure while the company continues executing against its identity security platform vision.
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