Jamf Holding Corp. (JAMF)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 delivered a broad-based beat: revenue rose 15% YoY to $183.5M and non-GAAP diluted EPS was $0.25, both above pre-announced guidance; Adjusted EBITDA surged 68% YoY to $49.6M and non-GAAP operating margin expanded to 26% .
• ARR grew 16% YoY to $728.6M; Security ARR hit $216M (+44% YoY) and now represents 30% of total ARR, supported by platform solutions and the Identity Automation acquisition .
• Company canceled the Q3 earnings call and suspended Q4 and FY25 guidance due to the pending take-private by Francisco Partners; management expects the deal to close in Q1 2026, subject to approvals .
• Catalyst: The $13.05/share all-cash acquisition by Francisco Partners (≈$2.2B) is the dominant stock narrative; pre-release indicated Q3 would exceed the high end of guidance, later confirmed by results .

What Went Well and What Went Wrong

What Went Well

• Significant operating leverage: Non-GAAP operating income more than doubled YoY to $47.2M (26% margin) as stock-based comp and transformation costs normalized; Adjusted EBITDA margin improved to 27% from 19% YoY .
• Security-led ARR mix shift: Security ARR increased to $216M (+44% YoY) and reached 30% of total ARR, demonstrating effective cross-sell/platform momentum post Identity Automation .
• Cash strength: Cash and cash equivalents rose to $547.2M at quarter-end, underpinned by term loan proceeds and improved collections; TTM operating cash flow grew to $117.1M and TTM unlevered FCF to $147.5M .

Management quotes:

• “Jamf… will be issuing Q3 2025 financial results… Due to the Company’s pending acquisition… there will not be a conference call… [and] the Company will not be providing financial guidance” — Jamf Q3 press release .
• “We believe transitioning to a private company will provide greater financial flexibility and strategic alignment to accelerate growth” — CEO John Strosahl, acquisition press release .

What Went Wrong

• No earnings call and suspended guidance reduced near-term transparency for public investors amid the M&A process .
• GAAP profitability remains negative (GAAP operating loss of $3.4M; GAAP diluted EPS -$0.03), reflecting continued amortization, restructuring, and transformation costs even as non-GAAP results strengthened .
• Macro and Apple ecosystem risks: Management reiterated exposure to tariff/FX volatility and potential Apple device demand shifts; forward-looking risk factors include tariffs and global trade uncertainty .

Financial Results

Segment revenue mix:

KPIs and cash:

Non-GAAP adjustments (illustrative):

• Adjustments include amortization, stock-based compensation, transaction-related costs, payroll taxes on SBC, system transformation costs, restructuring and optimization charges, FX, and debt issuance cost amortization .

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We believe transitioning to a private company will provide greater financial flexibility and strategic alignment to accelerate growth, expand through innovation and M&A, and strengthen our market leadership.” — John Strosahl, CEO, acquisition PR .
• “We are moving to a quarterly FX adjustment to ARR… The adjustment in Q2 for the first half was a less than 1% impact to total ARR balance.” — David Rudow, CFO, Q2 call .
• “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.” — John Strosahl, Q2 call .

Q&A Highlights

• Android enrollment adds cross-platform capability while keeping Apple-centric strategy; early traction with enterprise deployments (airline 10k iPads) .
• Identity Automation contribution and seasonality: Accretive to margins; strongest in Q3; leadership integrated into education business .
• Channel acceleration in U.S. leveraging new partner portal and incentives; goal to reach international channel penetration levels .
• Guidance prudence amid macro noise and FX; Q3 guide reflected revenue timing from Q2 and IA seasonality .

Estimates Context

Q3 2025 actuals vs Wall Street consensus (S&P Global):

Notes:

• Values marked with * retrieved from S&P Global.
• Jamf reports Adjusted EBITDA of $49.56M (27% margin), which differs from S&P Global’s “EBITDA” definition; the company’s Adjusted EBITDA exceeded typical expectations based on reported non-GAAP metrics .

Implications:

• Consensus likely needs upward revisions for revenue and EPS given beats; modelers should align EBITDA definitions to company-reported Adjusted EBITDA to avoid mismatches .

Key Takeaways for Investors

• Operational momentum: Strong non-GAAP margin expansion and security mix shift indicate durable operating leverage and platform cross-sell efficacy .
• Narrative dominated by take-private: Public guidance suspended; near-term trading will hinge on deal spread, regulatory/timing milestones, and shareholder vote dynamics .
• Watch ARR quality and mix: Security ARR growth (+44% YoY) and 30% mix underscore strategic repositioning toward higher-value solutions; DBNRR steady at 104% .
• Liquidity and balance sheet flexibility: Elevated cash and term loan facility support deal and capital structure actions; monitor convertible notes and term loan covenants through closing .
• FX/process normalization tailwinds: Local currency billing and DSO normalization boosted cash metrics; continue to track FX headwinds in international cost base .
• Modeling considerations: Use company-reported non-GAAP/Adjusted EBITDA for comparability; incorporate suspended guidance and M&A timeline into valuation framework .
• Sector/macro sensitivities: Maintain awareness of tariff/trade and Apple ecosystem risks embedded in forward-looking statements .