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Check Point Software Reports 2025 First Quarter Financial Results

1. CHKP reported Q1 2025 revenues of $638 million, up 7%. 2. Products & licenses revenues grew 14% year-over-year. 3. GAAP EPS was $1.71, marking a 7% increase. 4. Strong demand for Quantum Force appliances drove growth. 5. AI-driven Infinity Platform continues to resonate with customers.

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$212.3104/23 05:06 AM EDTEvent Start
$20904/24 11:41 AM EDTLatest Updated
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FAQ

Why Bullish?

The above-average growth in products and licenses reflects strong market demand, which typically drives stock prices higher, similar to historical growth periods for CHKP.

How important is it?

The significant year-over-year growth in critical revenue streams greatly enhances CHKP's financial outlook, making this news relevant for investors.

Why Short Term?

The immediate positive earnings report can stimulate short-term investor interest, leading to potential stock price appreciation.

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Fourteen Percent Products & Licenses Revenues Growth April 23, 2025 05:00 ET  | Source: Check Point Software Technologies INC TEL AVIV, Israel, April 23, 2025 (GLOBE NEWSWIRE) -- Check Point® Software Technologies Ltd. (NASDAQ: CHKP), today announced its financial results for the quarter ended March 31st, 2025. First Quarter 2025 Financial Highlights: Cash Flow from Operations: $421 million, a 17 percent increase year over year Calculated Billings* reached $553 million, a 7 percent increase year over year Remaining Performance Obligation (RPO)**: $2.4 billion, an 11 percent increase year over year Total Revenues: $638 million, a 7 percent increase year over year Products & Licenses Revenues: $114 million, a 14 percent increase year over year Security Subscriptions Revenues: $291 million, a 10 percent increase year over year GAAP Operating Income: $196 million, representing 31 percent of total revenues Non-GAAP Operating Income: $259 million, representing 41 percent of total revenues GAAP EPS: $1.71, a 7 percent increase year over year Non-GAAP EPS: $2.21, a 9 percent increase year over year "The first quarter results have provided a solid foundation to expand upon as we progress through the year.  Strong demand for our Quantum Force appliances, fueled by refresh cycles and new projects delivered double-digit year-over-year growth in products and licenses revenues," stated CEO Nadav Zafrir. "The AI-driven Infinity Platform, featuring a Hybrid Mesh Architecture, continues to resonate with customers and delivered another quarter of impressive double-digit year-over-year growth." For information regarding the non-GAAP financial measures discussed in this release, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures, please see below “Use of Non-GAAP Financial Information” and “Reconciliation of GAAP to Non-GAAP Financial Information.” Conference Call & Video Cast Information Check Point will host a conference call with the investment community on April 23, 2025, at 8:30 AM ET/5:30 AM PT. To listen to the live videocast or replay, please visit the website www.checkpoint.com/ir. Second Quarter 2025 Investor Conference Participation Schedule Barclays Americas Select Franchise Conference 2025May 6, 2025, London, UK – Fireside Chat & 1x1’s J.P. Morgan 53rd Annual Technology, Media, and Telecom ConferenceMay 13-15, 2025, Boston, MA – Fireside Chat & 1x1’s Oppenheimer 26th Annual Israeli ConferenceMay 18, 2025, Tel Aviv, Israel – Fireside Chat & 1x1’s TD Cowen 53rd Annual TMT ConferenceMay 28, 2025, NY, NY – Fireside Chat & 1x1’s Jefferies Software SummitMay 29, 2025, Newport Coast, CA – Fireside Chat &1x1’s Stifel 2025 Cross Sector 1x1 ConferenceJune 3, 2025, Boston, MA – 1x1’s Baird 2025 Global Consumer, Technology & Services ConferenceJune 4, 2025, SF, CA – 1x1’s Bank of America Merrill Lynch 2025 Global Technology ConferenceJune 5, 2025, SF, CA – Fireside Chat & 1x1’s TD Cowen 2nd Annual Corporate Access DayJune 17, 2025, Toronto, Canada – 1x1’s Members of Check Point's management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Check Point’s conference presentations are expected to be available via webcast on the company's web site. To hear these presentations and access the most updated information please visit the company's web site at www.checkpoint.com/ir. The schedule is subject to change. Follow Check Point via:Twitter: http://www.twitter.com/checkpointswFacebook: https://www.facebook.com/checkpointsoftwareBlog: http://blog.checkpoint.comYouTube: http://www.youtube.com/user/CPGlobalLinkedIn: https://www.linkedin.com/company/check-point-software-technologies About Check Point Software Technologies Ltd.Check Point Software Technologies Ltd. (http://www.checkpoint.com) is a leading AI-powered, cloud-delivered cyber security platform provider protecting over 100,000 organizations worldwide. Check Point leverages the power of AI everywhere to enhance cyber security efficiency and accuracy through its Infinity Platform, with industry-leading catch rates enabling proactive threat anticipation and smarter, faster response times. The comprehensive platform includes cloud-delivered technologies consisting of Check Point Harmony to secure the workspace, Check Point CloudGuard to secure the cloud, Check Point Quantum to secure the network, and Check Point Infinity Core Services for collaborative security operations and services. Legal Notice Regarding Forward-Looking StatementsThis press release contains forward-looking statements. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, expectations regarding our products and solutions, and our participation in investor conferences and other events during the second quarter of 2025. Our expectations and beliefs regarding these matters may not materialize, and actual results or events in the future are subject to risks and uncertainties that could cause actual results or events to differ materially from those projected. These risks include our ability to continue to develop platform capabilities and solutions; customer acceptance and purchase of our existing solutions and new solutions; the market for IT security continuing to develop; competition from other products and services; appointments and departures of our executive officers; and general market, political, economic, and business conditions, including acts of terrorism or war. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the Securities and Exchange Commission on March 17, 2025. The forward-looking statements in this press release are based on information available to Check Point as of the date hereof, and Check Point disclaims any obligation to update any forward-looking statements, except as required by law. Use of Non-GAAP Financial Information In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Check Point uses non-GAAP measures of operating income, net income and earnings per diluted share, which are adjustments from results based on GAAP to exclude, as applicable, stock-based compensation expenses, amortization of intangible assets and acquisition related expenses and the related tax affects. Check Point’s management believes the non-GAAP financial information provided in this release is useful to investors’ understanding and assessment of Check Point’s ongoing core operations and prospects for the future. Historically, Check Point has also publicly presented these supplemental non-GAAP financial measures to assist the investment community to see the company “through the eyes of management,” and thereby enhance understanding of its operating performance. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors. * Calculated Billings is a measure that we defined as total revenues recognized in accordance with GAAP plus the change in Total Deferred Revenues during the period. ** Remaining Performance Obligation (RPO) is a measure that represents the total value of non-cancellable contracted products and/or services that are yet to be recognized as Revenue as of March 31, 2025. CHECK POINT SOFTWARE TECHNOLOGIES LTD. CONSOLIDATED STATEMENT OF INCOME (Unaudited, in millions, except per share amounts)  Three Months Ended March 31, 2025 2024Revenues:   Products and licenses$114.1 $100.3Security subscriptions 290.6  263.4Total revenues from products and security subscriptions 404.7  363.7Software updates, maintenance and services 233.1  235.1Total revenues 637.8  598.8    Operating expenses:   Cost of products and licenses 23.0  19.9Cost of security subscriptions 21.4  16.5Total cost of products and security subscriptions 44.4  36.4Cost of Software updates and maintenance 32.1  28.7Amortization of technology 7.6  5.8Total cost of revenues 84.1  70.9    Research and development 102.1  99.2Selling and marketing 225.4  206.2General and administrative 30.7  28.6Total operating expenses 442.3  404.9    Operating income 195.5  193.9Financial income, net 27.3  22.6Income before taxes on income 222.8  216.5Taxes on income 31.9  32.6Net income$190.9 $183.9Basic earnings per share$1.77 $1.64Number of shares used in computing basic earnings per share 107.9  112.3Diluted earnings per share$1.71 $1.60Number of shares used in computing diluted earnings per share 111.4  115.2 CHECK POINT SOFTWARE TECHNOLOGIES LTD. SELECTED FINANCIAL METRICS (Unaudited, in millions, except per share amounts)   Three Months Ended  March 31,  2025 2024     Revenues $637.8 $598.8Non-GAAP operating income  258.6  252.0Non-GAAP net income  246.2  234.5Non-GAAP diluted earnings per share $2.21 $2.04Number of shares used in computing diluted Non-GAAP earnings per share  111.4  115.2 CHECK POINT SOFTWARE TECHNOLOGIES LTD.RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (Unaudited, in millions, except per share amounts)   Three Months Ended  March 31,   2025   2024      GAAP operating income $195.5  $193.9 Stock-based compensation (1)  41.2   41.6 Amortization of intangible assets and acquisition related expenses (2) (*)  21.9   16.5 Non-GAAP operating income $258.6  $252.0      GAAP net income $190.9  $183.9 Stock-based compensation (1)  41.2   41.6 Amortization of intangible assets and acquisition related expenses (2) (*)  21.9   16.5 Taxes on the above items (3)  (7.8)  (7.5)Non-GAAP net income $246.2  $234.5      GAAP diluted earnings per share $1.71  $1.60 Stock-based compensation (1)  0.37   0.36 Amortization of intangible assets and acquisition related expenses (2) (*)  0.2   0.15 Taxes on the above items (3)  (0.07)  (0.07)Non-GAAP diluted earnings per share $2.21  $2.04      Number of shares used in computing diluted Non-GAAP earnings per share  111.4   115.2      (1) Stock-based compensation:    Cost of products and licenses $0.1  $0.1 Cost of software updates and maintenance  2.1   2.2 Research and development  14.7   14.7 Selling and marketing  14.6   15.9 General and administrative  9.7   8.7    41.2   41.6      (2) Amortization of intangible assets and acquisition related expenses (*):    Amortization of technology-cost of revenues  7.6   5.8 Research and development  1.5   1.6 Selling and marketing  12.8   9.1    21.9   16.5  (3) Taxes on the above items  (7.8)  (7.5)Total, net $55.3  $50.6   (*) While amortization of acquired intangible assets is excluded from the measures, the revenue of the acquired companies is reflected in the measures and the acquired assets contribute to revenue generation. CHECK POINT SOFTWARE TECHNOLOGIES LTD.CONDENSED CONSOLIDATED BALANCE SHEET DATA(In millions)ASSETS    March 31, December 31,   2025(Unaudited) 2024(Audited)Current assets:     Cash and cash equivalents  $450.2 $506.2Marketable securities and short-term deposits   1,012.0  865.7Trade receivables, net   399.7  728.8Prepaid expenses and other current assets   94.5  92.7Total current assets   1,956.4  2,193.4      Long-term assets:     Marketable securities   1,469.8  1,411.9Property and equipment, net   83.0  80.8Deferred tax asset, net   80.6  74.7Goodwill and other intangible assets, net   1,877.9  1,897.1Other assets   90.2  96.6Total long-term assets   3,601.5  3,561.1      Total assets  $5,557.9 $5,754.5 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities:     Deferred revenues  $1,389.8  $1,471.3 Trade payables and other accrued liabilities   394.8   472.9 Total current liabilities   1,784.6   1,944.2       Long-term liabilities:     Long-term deferred revenues   525.6   529.0 Income tax accrual   467.4   459.6 Other long-term liabilities   31.8   32.3 Total long-term liabilities   1,024.8   1,020.9       Total liabilities   2,809.4   2,965.1       Shareholders’ equity:     Share capital   0.8   0.8 Additional paid-in capital   3,125.5   3,049.5 Treasury shares at cost   (14,579.6)  (14,264.4)Accumulated other comprehensive gain   (2.9)  (10.3)Retained earnings   14,204.7   14,013.8 Total shareholders’ equity   2,748.5   2,789.4 Total liabilities and shareholders’ equity  $5,557.9  $5,754.5 Total cash and cash equivalents, marketable securities, and short-term deposits  $2,932.0  $2,783.8  CHECK POINT SOFTWARE TECHNOLOGIES LTD.SELECTED CONSOLIDATED CASH FLOW DATA (Unaudited, in millions)  Three Months Ended March 31,  2025   2024 Cash flow from operating activities:   Net income$190.9  $183.9 Adjustments to reconcile net income to net cash provided by operating activities:   Depreciation of property and equipment 5.2   7.3 Amortization of intangible assets 19.2   13.5 Stock-based compensation 41.2   41.6 Realized loss on marketable securities 0.1   - Decrease in trade and other receivables, net 329.4   265.4 Decrease in deferred revenues, trade payables and other accrued liabilities (142.1)  (140.6)Deferred income taxes, net (22.8)  (10.1)Net cash provided by operating activities 421.1   361.0     Cash flow from investing activities:   Investment in property and equipment (7.4)  (6.5)Net cash used in investing activities (7.4)  (6.5)    Cash flow from financing activities:   Proceeds from issuance of shares upon exercise of options 46.0   45.6 Purchase of treasury shares (325.0)  (325.0)Payments related to shares withheld for taxes (1.5)  (1.1)Net cash used in financing activities (280.5)  (280.5)    Unrealized gain on marketable securities, net 15.0   1.6     Increase in cash and cash equivalents, marketable securities, and short-term deposits 148.2   75.6     Cash and cash equivalents, marketable securities, and short-term deposits at the beginning of the period 2,783.8   2,959.7     Cash and cash equivalents, marketable securities, and short-term deposits at the end of the period$2,932.0  $3,035.3 

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