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JH

Jamf Holding Corp. (JAMF)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 exceeded the high end of outlook with revenue $176.5M (+15% YoY) and non‑GAAP operating margin 19%; ARR reached $710.0M (+14% YoY) with Security ARR $203M (+40% YoY) .
  • Against S&P Global consensus, Jamf delivered a revenue beat (actual $176.5M vs $169.0M*) and a slight non‑GAAP EPS beat (actual $0.18 vs $0.18*). Management raised FY 2025 revenue and non‑GAAP operating income guidance . Values retrieved from S&P Global.
  • FY 2025 outlook raised to revenue $701–$704M and non‑GAAP operating income $153.5–$155.5M; Q3 2025 guidance calls for revenue $176–$178M and non‑GAAP operating income $41.5–$42.5M, reflecting mix and typical seasonality .
  • Strategic reinvestment plan (workforce reduction ~6.4%) realigns go‑to‑market to enterprise and channel and accelerates AI investments; management flagged Q2 upside from timing and Identity Automation outperformance .

What Went Well and What Went Wrong

What Went Well

  • “Our second quarter results were strong, exceeding the high end of our outlook for both revenue and profitability” (CEO) . Non‑GAAP operating margin improved to 19% vs 15% in Q2’24 .
  • Security momentum: Security ARR hit $203M (+40% YoY) and now 29% of total ARR; international revenue grew 15% YoY .
  • Operational execution: Q2 revenue outperformed guidance due to revenue timing and stronger‑than‑expected Identity Automation; TTM unlevered FCF surpassed $100M (+24% YoY) to $102.9M .

What Went Wrong

  • GAAP profitability remains negative: Q2 GAAP operating loss $(15.0)M (−8% margin) and GAAP net loss $(20.9)M .
  • Stock‑based compensation remains elevated ($27.8M in Q2), with planned SBC ~$105.0M for FY 2025; system transformation and restructuring costs still impact P&L .
  • Seasonality and timing: Management noted Q2 included some one‑time revenue recognition effects, implying a more normal seasonal ramp in Q3; Identity Automation has heavier Q3 contribution and lighter Q4 .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$153.0 $167.6 $176.5
GAAP Gross Profit ($USD Millions)$118.0 $130.5 $132.7
GAAP Gross Margin (%)77% 78% 75%
Non‑GAAP Gross Profit ($USD Millions)$124.9 $137.2 $141.6
Non‑GAAP Gross Margin (%)82% 82% 80%
GAAP Operating Income (Loss) ($USD Millions)$(20.0) $(4.2) $(15.0)
GAAP Operating Margin (%)(13)% (2)% (8)%
Non‑GAAP Operating Income ($USD Millions)$23.5 $37.6 $33.5
Non‑GAAP Operating Margin (%)15% 22% 19%
Adjusted EBITDA ($USD Millions)$25.3 $39.4 $35.3
Adjusted EBITDA Margin (%)17% 24% 20%
GAAP Net Income (Loss) ($USD Millions)$(19.3) $0.5 $(20.9)
GAAP Diluted EPS ($USD)$(0.15) $0.00 $(0.16)
Non‑GAAP Diluted EPS ($USD)$0.14 $0.22 $0.18

Segment revenue breakdown:

Revenue Component ($USD Millions)Q2 2024Q1 2025Q2 2025
Subscription$149.4 $164.2 $172.8
Services$3.5 $3.4 $3.7
License$0.09 $0.06 $0.003
Total Revenue$153.0 $167.6 $176.5

KPIs:

KPIQ2 2024Q1 2025Q2 2025
ARR ($USD Millions)$621.7 $657.9 $710.0
Security ARR ($USD Millions)—$162.0 $203.0
Security ARR % of Total23% 25% 29%
Management ARR % of Total77% 75% 71%
Dollar‑based Net Retention (TTM)106% 104% 103%
Commercial ARR % of Total74% 76% 74%
Education ARR % of Total26% 24% 26%

Estimate comparison (S&P Global):

MetricQ2 2025 ConsensusQ2 2025 Actual
Revenue ($USD Millions)169.0*176.5
Primary EPS (Non‑GAAP) ($USD)0.18*0.18

Values retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD Millions)FY 2025$691.0–$695.0 $701.0–$704.0 Raised
Non‑GAAP Operating Income ($USD Millions)FY 2025$144.5–$147.5 $153.5–$155.5 Raised
Unlevered Free Cash Flow Growth (YoY)FY 2025At least 75% At least 75% Maintained
Total Revenue ($USD Millions)Q3 2025—$176.0–$178.0 New
Non‑GAAP Operating Income ($USD Millions)Q3 2025—$41.5–$42.5 New
Amortization ($USD Millions)Q3 / FY 2025Q2: $9.8; FY: $38.3 Q3: ~$13.0; FY: ~$48.0 Increased
SBC + Payroll Taxes ($USD Millions)Q3 / FY 2025Q2: $30.1; FY: $111.3 Q3: ~$26.3; FY: ~$105.0 Lowered (FY)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
AI/automation initiativesLaunched partner hub and systems update; operating efficiency focus . Early AI benefits across sales/support; product roadmap for security; Identity Automation acquisition completed .Strategic reinvestment to accelerate AI; AI Assistant “search” and “explain” skills in beta; governance and efficiency gains in forecasting and CS .Accelerating
Go‑to‑market realignmentChannel expansion; AWS/Azure marketplaces building pipeline .Enterprise focus; SMB via channel; channel partner portal efficiencies; increasing U.S. channel mix .Improving
Mobile/deskless workflowAirlines, transportation, retail use cases; mobile security launched in Q3’24 .Large airline 10k iPads win; Android enrollment support to unify fleet mgmt; strong mobile bookings .Accelerating
Security adoptionSecurity ARR +17% to $156M in FY’24; requirement in public sector programs .Security ARR +40% YoY to $203M; platform solutions driving security uptake .Accelerating
InternationalFY’24 international +17%; APAC education momentum (GIGA, Singapore MoE) .International revenue +15% YoY; continued events and customer outreach (Jamf Nation Live) .Stable to improving
Tariffs/macroCaution noted; potential Apple device pull‑forward uncertain .Q2 upside included timing; Q3 guide reflects normal seasonality; macro prudence maintained .Mixed
RPO/contractingQ1 noted collections normalization over coming quarters .Total RPO >+20%; long‑term RPO nearly +40%; ex‑IA total ~+15%, long‑term ~+28% .Improving
Regulatory/complianceStateRAMP Authorized; compliance benchmarks emphasized .Compliance Benchmarks GA; expanded App Installers malware detection; SIEM integrations .Improving

Management Commentary

  • CEO: “Our second quarter results were strong, exceeding the high end of our outlook for both revenue and profitability” .
  • CEO on strategy: Strategic reinvestment “to align with our platform strategy and expanding our AI capabilities… drive long‑term growth, improve operational efficiency and enhance shareholder value” .
  • CFO: “Year over year total revenue growth was 15%… primarily due to the timing of certain revenues… and solid results from Identity Automation… total ARR grew 14%… Security ARR +40% YoY” .
  • CEO on mobile: “With Android enrollment, Jamf for mobile will enable organizations to manage their full mobile fleet through one solution while keeping Apple at the center of their mobile strategy” .
  • CFO outlook: “For the full year 2025, we’re raising our outlook… non‑GAAP operating margin of 22% at the midpoint… and expect unlevered free cash flow growth of at least 75%” .

Q&A Highlights

  • Android enrollment unlocks cross‑platform fleet deals while maintaining Apple‑first experience; early customer interest and uptake cited .
  • Identity Automation outperformed expectations; integrated into education with CEO of IA leading the segment; ~half of Q2 upside tied to IA and partner revenue timing .
  • Go‑to‑market shifts: Enterprise investment and SMB scale via channel; partner portal/tools enabling deal registration and quoting efficiency; aim to match international channel penetration in the U.S. .
  • Seasonality: Q2 included timing benefits; Q3 expected to reflect normal seasonality with stronger IA in Q3 and lighter Q4 .
  • RPO acceleration and margin expansion: Total RPO >+20% and long‑term nearly +40%; Q3 non‑GAAP margin guided ~24%; long‑term “Rule of 40” target reiterated for exit 2026 .

Estimates Context

  • Q2 2025 versus consensus: Revenue $176.5M vs $169.0M* (beat); Primary EPS $0.18 vs $0.18* (in‑line to slight beat). Values retrieved from S&P Global. Actuals: revenue , non‑GAAP diluted EPS .
  • Q3 2025 Street at ~$177.4M revenue* and ~$0.23 EPS* aligns with guidance midpoint ($176–$178M; non‑GAAP operating margin ~24%) . Values retrieved from S&P Global.
  • Implication: Expect upward revision pressure in Security ARR‑linked metrics and potentially in FY non‑GAAP operating income, with revenue already raised; caution on EBITDA comparability given Jamf reports adjusted EBITDA while consensus often refers to standard EBITDA . Values retrieved from S&P Global.

Key Takeaways for Investors

  • Beat‑and‑raise quarter driven by platform solutions, security mix shift, and IA; focus on enterprise and channel should sustain margin expansion and ARR growth .
  • Security is scaling rapidly (29% of ARR, +40% YoY), a narrative likely to support multiple expansion as Jamf deepens Apple‑first security differentiation .
  • Q3 guide is consistent with historical seasonality; watch IA contribution timing and any normalization after Q2 timing benefits .
  • RPO acceleration (>20% total; ~40% long‑term) suggests strong forward demand and contract lengthening—supportive of revenue visibility .
  • Strategic reinvestment (including ~6.4% workforce reduction) should improve go‑to‑market efficiency and accelerate AI deployment; expect near‑term restructuring charges but long‑term leverage .
  • Cash/liquidity strengthened via $400M Term Loan A; plan to finance deferred IA payment and repurchase a portion of 2026 converts, reducing refinancing risk .
  • Monitor FX, SBC trajectory, and system transformation costs; FY modeling aids: amortization ~$48M and SBC+taxes ~$105M guide P&L non‑GAAP adjustments .
Note: Values marked with * are retrieved from S&P Global consensus data.