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CyberArk, a global leader in identity security, announced robust financial results for Q2 2025, ending June 30, 2025, alongside a definitive agreement for its acquisition by Palo Alto Networks (NASDAQ: PANW) for approximately $25 billion in a cash-and-stock transaction. The announcement, made on July 30, 2025, underscores CyberArk’s strong performance and strategic importance in the cybersecurity landscape. As shown in the finance card above, CyberArk’s stock price is $438.055, with a year-to-date high of $452.00 and a market cap of $21.85B, reflecting investor confidence.
Total Revenue: $328.0M, up 46% from $224.7M in Q2 2024.
Annual Recurring Revenue (ARR): $1.274B, up 47% from $868M in Q2 2024.
Subscription ARR: $1.088B (85% of total ARR), up 61% from $677M.
Recurring Revenue: $309.9M, up 49% from $208.0M in Q2 2024.
Non-GAAP Net Income: $45.6M ($0.88 per diluted share), up from $26.1M ($0.54 per share).
Palo Alto Networks Acquisition: $25B deal, offering $45 cash and 2.2005 PANW shares per CYBR share, a 26% premium.
Acquisitions Impact: Includes contributions from Venafi ($1.5B, closed Oct 2024) and Zilla Security ($165M, closed Feb 2025).
CyberArk’s Q2 2025 results reflect strong demand for its AI-powered Identity Security Platform, bolstered by acquisitions of Venafi and Zilla Security. Key metrics include:
Total Revenue: $328.0M, a 46% increase from $224.7M in Q2 2024, surpassing guidance by $12M.
Subscription Revenue: $263.8M, up 66% from $158.4M, driven by SaaS and self-hosted subscriptions, now 77% of total revenue.
Recurring Revenue: $309.9M, a 49% increase from $208.0M, reflecting a shift to high-margin recurring models.
ARR: Reached $1.274B, up 47% from $868M, with subscription ARR at $1.088B (up 61%) and maintenance ARR at $185M (down from $191M).
Non-GAAP Operating Income: $49.4M (15% margin), up from $23.7M (11% margin) in Q2 2024.
Non-GAAP Net Income: $45.6M ($0.88 per diluted share), compared to $26.1M ($0.54 per share) in Q2 2024.
GAAP Net Loss: $(90.8)M ($(1.81) per share), impacted by a $44.1M one-time tax payment related to Venafi’s intellectual property migration.
Cash Flow: Adjusted free cash flow of $44M (13% margin), with operating cash flow at $4.7M, affected by the tax payment. Cash and equivalents stood at $1.919B, including $1.219B from Convertible Senior Notes issued June 2025.
“CyberArk delivered second quarter results that highlight the demand for identity security and the success of our land and expand platform selling motion,” said CEO Matt Cohen.
On July 30, 2025, CyberArk announced a $25B cash-and-stock acquisition by Palo Alto Networks, offering $45 cash and 2.2005 PANW shares per CyberArk share, a 26% premium over the 10-day average VWAP as of July 25, 2025 ($380.17). The deal, unanimously approved by both boards, is expected to close in the second half of Palo Alto’s fiscal 2026, pending regulatory and shareholder approvals. It aims to establish identity security as a core pillar of Palo Alto’s platform, addressing human, machine, and AI identities in the AI-driven enterprise. Wedbush analyst Dan Ives called it a “strategic home run” for combating AI-driven threats.
The acquisition follows Palo Alto’s acquisition spree under CEO Nikesh Arora, who has spent over $7B since 2018, though CyberArk is its largest deal to date. It’s expected to be accretive to Palo Alto’s revenue growth and gross margin immediately, with free cash flow accretion by fiscal 2028. CyberArk’s 10,000+ customers and Palo Alto’s 45,000+ customer base offer significant cross-selling opportunities, potentially generating $100–150M in annual cost synergies by 2027.
CyberArk’s Q2 performance reflects its leadership in the $20B identity security market, projected to grow to $41.52B by 2030 at a 12.6% CAGR. The Venafi and Zilla acquisitions added $47M and $5M in revenue, respectively, strengthening CyberArk’s platform for cloud and AI security. The Palo Alto deal positions the combined entity to address rising AI-driven threats, competing with recent mega-deals like Google’s $32B acquisition of Wiz. Despite a quarterly net loss due to the tax payment, CyberArk’s 66% subscription revenue growth and 19% operating margin highlight its financial resilience.
CyberArk (NASDAQ: CYBR) is the global leader in identity security, trusted by organizations around the world to secure human and machine identities in the modern enterprise. CyberArk’s AI-powered Identity Security Platform applies intelligent privilege controls to every identity with continuous threat prevention, detection and response across the identity lifecycle. With CyberArk, organizations can reduce operational and security risks by enabling zero trust and least privilege with complete visibility, empowering all users and identities, including workforce, IT, developers and machines, to securely access any resource, located anywhere, from everywhere.
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