# EDGAR Filing Document

**Accession Number:** 0001598110
**File Stem:** 0001104659-25-071959
**Filing Date:** 2025-7
**Character Count:** 65150
**Document Hash:** 968661f24517ddd409f2d78fe7a56c29
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-071959.hdr.sgml**: 20250730

**ACCESSION NUMBER**: 0001104659-25-071959

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 5

**CONFORMED PERIOD OF REPORT**: 20250730

**FILED AS OF DATE**: 20250730

**DATE AS OF CHANGE**: 20250730

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CyberArk Software Ltd.
- **CENTRAL INDEX KEY:** 0001598110
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 000000000

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-36625
- **FILM NUMBER:** 251164070

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 9 HAPSAGOT ST.
- **STREET 2:** PARK OFER B, P.O. BOX 3143
- **CITY:** PETACH-TIKVA
- **PROVINCE COUNTRY:** L3
- **BUSINESS PHONE:** 97239180000

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 9 HAPSAGOT ST.
- **STREET 2:** PARK OFER B, P.O. BOX 3143
- **CITY:** PETACH-TIKVA
- **PROVINCE COUNTRY:** L3

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Cyber-Ark Software Ltd.
- **DATE OF NAME CHANGE:** 20140123

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER**

**Pursuant to Rule 13a-16 or 15d-16 under the**

**Securities Exchange Act of 1934**

**For the month of July 2025**

**Commission File Number: 001-36625**

**CyberArk Software Ltd.**

(Translation of registrant's name into English)

**CyberArk Software Ltd.**

**9 Hapsagot St.**

**Park Ofer B, P.O. Box 3143**

**Petach-Tikva, 4951040 Israel**

 **(Address of principal executive offices)**

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ⌧ Form 40-F ◻

**EXPLANATORY NOTE**

**Entry Into Agreement and Plan of Merger**

On July 30, 2025, CyberArk Software Ltd. (the "Company") and Palo Alto Networks, Inc. ("PANW") issued a joint press release announcing their entry into a definitive agreement for the Company to be acquired by PANW (the "Transaction"). A copy of the press release is furnished as Exhibit 99.1 to this Report on Form 6-K.

PANW will be hosting a webcast at 6:30 am (PT) on July 30, 2025 to discuss the Transaction, with the Company's participation. Further information on the webcast is available in the press release.

**Second Quarter 2025 Earnings Announcement**

On July 30, 2025, the Company issued a press release entitled "CyberArk Announces Strong Second Quarter 2025 Results." A copy of this press release is furnished as Exhibit 99.2 herewith.

Other than as indicated below, the information in this Form 6-K (including in Exhibit 99.1 and Exhibit 99.2) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.

The U.S. GAAP financial information contained in (i) the consolidated balance sheets, (ii) consolidated statements of operations and (iii) consolidated statement of cash flows included in the press release attached as Exhibit 99.2 to this Report on Form 6-K are hereby incorporated by reference into the Company's Registration Statements on Form S-8 (File Nos. 333-200367, 333- 202850, 333-216755, 333-223729, 333-230269, 333-236909, 333-254152, 333-254154, 333-263436, 333-270222, 333-270223, 333-277932, 333-280349, 333-285753 and 333-285751).

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| Exhibit | Description |
| [99.1](tm2522061d1_ex99-1.htm) | [Press release dated July 30, 2025 titled "Palo Alto Networks Announces Agreement to Acquire CyberArk, the Identity Security Leader"](tm2522061d1_ex99-1.htm) |
| [99.2](tm2522061d1_ex99-2.htm) | [Press release dated July 30, 2025 titled "CyberArk Announces Strong Second Quarter 2025 Results"](tm2522061d1_ex99-2.htm) |

---

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| Date: July 30, 2025 |  |  |
|  | CYBERARK SOFTWARE LTD. | CYBERARK SOFTWARE LTD. |
|  | By: | /s/ Erica Smith |
|  | Name: | Erica Smith |
|  | Title: | Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![](tm2522061d1_ex99-1img001.jpg)

**Palo Alto Networks Announces Agreement to Acquire CyberArk, the Identity Security Leader**

*Will Create the End-to-End Security Platform for the AI Era*

*NEWS SUMMARY:* 

● *Will accelerate Palo Alto Networks' platform strategy by establishing Identity Security as a new core platform.* 

● *CyberArk extends Identity Security to all users by advancing the vision that every identity, human, machine and AI requires deep security for access across the modern enterprise.* 

● *Will deliver Identity Security for agentic AI to secure the new wave of autonomous AI agents by providing foundational controls for this emerging class of privileged identities.* 

● *Will provide customers with the optimal combination of best of breed technology and integrated platforms to deliver near real-time security outcomes.* 

 

**SANTA CLARA, Calif., and NEWTON, Mass., July 30, 2025**—Palo Alto Networks<sup>®</sup> (NASDAQ: PANW), the global cybersecurity leader, and CyberArk (NASDAQ: CYBR), the global leader in Identity Security, today announced that they have entered into a definitive agreement under which Palo Alto Networks will acquire CyberArk. Under the terms of the agreement, CyberArk shareholders will receive $45.00 in cash and 2.2005 shares of Palo Alto Networks common stock for each CyberArk share. This represents an equity value of approximately $25 billion for CyberArk and a 26% premium to the unaffected 10-day average of the daily VWAPs of CyberArk as of Friday, July 25, 2025<sup>1</sup>.

This strategic combination will mark Palo Alto Networks' formal entry into Identity Security, establishing it as a core pillar of the company's multi-platform strategy. Combining CyberArk's long-standing leadership in Identity Security and Privileged Access Management (PAM) with Palo Alto Networks' comprehensive AI-powered security platforms will extend privileged identity protection to all identity types including human, machine, and the new wave of autonomous AI agents. CyberArk is already establishing itself as an Identity Security platform, and Palo Alto Networks will help accelerate this journey towards platformization to drive better combined security outcomes for customers.

**Nikesh Arora, Chairman and CEO of Palo Alto Networks, said:** 

"Our market entry strategy has always been to enter categories at their inflection point, and we believe that moment for Identity Security is now. This strategy has guided our evolution from a next-gen firewall company into a multi-platform cybersecurity leader. Today, the rise of AI and the explosion of machine identities have made it clear that the future of security must be built on the vision that every identity requires the right level of privilege controls, not the 'IAM fallacy'. CyberArk is the definitive leader in Identity Security with durable, foundational technology that is essential for securing the AI era. Together, we will define the next chapter of cybersecurity."

![](tm2522061d1_ex99-1img001.jpg)

**Udi Mokady, Founder and Executive Chairman of CyberArk, said:**

"This is a profound moment in CyberArk's journey. From the beginning, we set out to protect the world's most critical assets, with a relentless focus on innovation, trust, and security. Joining forces with Palo Alto Networks is a powerful next chapter, built on shared values and a deep commitment to solving the toughest identity challenges. Together, we'll bring unmatched expertise across human and machine identities, privileged access, and AI-driven innovation to secure what's next. This is more than a combination of technologies—it's an acceleration of the mission we began over two decades ago. I'm incredibly proud of what our team has built and deeply grateful to everyone who made this milestone possible."

Identity and security are converging, highlighting the need for a true Identity Security platform. Securing privileged credentials for both human and machine identities—including AI agents and workloads—is the most critical challenge for the modern enterprise. The integration of CyberArk's Identity Security Platform with Palo Alto Networks will provide many critical benefits:

● **Accelerates the Platform Strategy:** The combined platform will provide a single, unified solution designed to help eliminate dangerous security gaps and simplify operations. CyberArk's capabilities will be deeply integrated into Palo Alto Networks' Strata™ and Cortex® platforms, leveraging AI to deliver identity-aware security and real-time response across the entire enterprise.

● **Disrupts the Legacy IAM Market:** This will evolve the legacy IAM market by moving beyond basic hygiene and extending robust, security-first PAM principles to ensure the right level of privilege controls are applied to every identity across the enterprise, whether humans, machines, or agents.

● **Secures Agentic AI:** As organizations adopt autonomous Agentic AI, they are deploying the ultimate privileged users. Identity Security is positioned to become the essential framework for securing this new paradigm of the enterprise workforce. Enforcing just-in-time access and least privilege principles ensures that AI agents are granted only the permissions they need, for the exact moment they need them, providing the critical oversight necessary to secure AI-driven automation at scale.

Once closed, this acquisition will unite two security leaders with similar values, strong cultures, and talented teams. The combination of the two organizations will offer the industry's most comprehensive and integrated security portfolio, providing customers with a single, trusted vendor for their most critical security needs. The combined companies will become the cyber guardian of our customers, allowing customers to focus on their core business objectives and adopting AI, while we secure their digital future.

**Transaction Details**

Under the terms of the agreement, Palo Alto Networks intends to acquire CyberArk for $45.00 in cash and 2.2005 shares of Palo Alto Networks common stock for each CyberArk share, which represents a 26% premium to the unaffected 10-day average of the daily VWAPs of CyberArk as of Friday, July 25, 2025<sup>1</sup>. The transaction is expected to be immediately accretive to Palo Alto Networks revenue growth and gross margin. Palo Alto Networks also expects the transaction to be accretive to free cash flow per share in fiscal year 2028 following the first full year of realization of synergies.

![](tm2522061d1_ex99-1img001.jpg)

The transaction has been unanimously approved by the Boards of Directors of both Palo Alto Networks and CyberArk, and is expected to close during the second half of Palo Alto Networks' fiscal 2026, subject to the satisfaction of customary closing conditions, including the receipt of regulatory clearances and approval by CyberArk shareholders.

For further information regarding the terms and conditions contained in the definitive agreement, please see Palo Alto Networks' Current Report on Form 8-K and CyberArk's' Report on Form 6-K, which will be filed in connection with the transaction.

**Advisors**

J.P. Morgan Securities LLC is acting as financial advisor to Palo Alto Networks, and Wachtell, Lipton, Rosen & Katz is acting as legal counsel and Arnold & Porter Kaye Scholer LLP is acting as regulatory counsel. Qatalyst Partners is acting as financial advisor to CyberArk and Latham & Watkins LLP and Meitar Law Offices are acting as legal counsel.

**Shareholder letter and Investor Call Details**

Read the Palo Alto Networks <u>Shareholder Letter</u> from Chairman and CEO Nikesh Arora.

Both organizations look forward to providing additional information on the transaction during an investor presentation at 6:30 am (PT) on July 30, 2025. <u>Webcast link</u>.

**Earnings Call Detail**

● CyberArk will forgo its Q2 2025 Earnings Call on August 7, 2025 for the above stated investor call, and has issued a press release today with their Q2 2025 financial results.

● Palo Alto Networks will host its Q4 FY2025 Earnings Call via a live video webcast on August 18, 2025, at 1:30 pm (PT) accessible from the "Investors" section of the Palo Alto Networks website at investors.paloaltonetworks.com

Follow Palo Alto Networks on <u>Twitter</u>, <u>LinkedIn</u>, <u>Facebook</u> and <u>Instagram</u>.

*<sup>1</sup> Calculated based on the unaffected 10-day average of the daily VWAPs as of Friday, July 25, 2025: $196.66 per share for Palo Alto Networks, and $380.17 per share for CyberArk*

**About CyberArk**

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. Learn more at cyberark.com.

**About Palo Alto Networks**

As the global AI and cybersecurity leader, Palo Alto Networks (NASDAQ: PANW) is dedicated to protecting our digital way of life via continuous innovation. Trusted by more than 70,000 organizations worldwide, we provide comprehensive AI-powered security solutions across network, cloud, security operations and AI, enhanced by the expertise and threat intelligence of Unit 42. Our focus on platformization allows enterprises to streamline security at scale, ensuring protection fuels innovation. Explore more at **<u>www.paloaltonetworks.com</u>.**

*Palo Alto Networks, Cortex, Strata, and the Palo Alto Networks logo are trademarks of Palo Alto Networks, Inc. in the United States or in jurisdictions throughout the world. All other trademarks, trade names, or service marks used or mentioned herein belong to their respective owners. Any unreleased services or features (and any services or features not generally available to customers) referenced in this or other press releases or public statements are not currently available (or are not yet generally available to customers) and may not be delivered when expected or at all. Customers who purchase Palo Alto Networks applications should make their purchase decisions based on services and features currently generally available.*

**Forward-Looking Statements**

This press release relates to a proposed transaction between Palo Alto Networks, Inc. ("<u>PANW</u>") and CyberArk Software Ltd. ("<u>CyberArk</u>"). This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current facts, including, without limitation, statements regarding expected future business and financial performance, the expected future benefits to PANW, CyberArk, and their respective customers from completing the proposed transaction, the anticipated future integration of PANW's and CyberArk's capabilities and the benefits they will deliver, the expected completion of the proposed transaction, the expected timing for the completion of the proposed transaction, the expected accretion to free cash flow, revenue growth and gross margin and the timing thereof and the timing of the synergies from the proposed transaction, made in this press release are forward-looking. We use words such as "anticipates," "believes," "continue," "estimate," "expects," "future," "intends," "may," "plan," and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements reflect management's current expectations and are inherently uncertain. Actual results could differ materially for a variety of reasons.

There are a significant number of factors that could cause actual results to differ materially from forward-looking statements made or implied in this press release, including: the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction between PANW and CyberArk; PANW's ability to successfully integrate CyberArk's businesses and technologies; the risk that the expected benefits and synergies of the proposed transaction may not be fully achieved in a timely manner, or at all; the risk that PANW or CyberArk will be unable to retain and hire key personnel; the risk associated with CyberArk's ability to obtain the approval of its shareholders required to consummate the proposed transaction; the risk that the conditions to the proposed transaction are not satisfied on a timely basis, or at all, or the failure of the proposed transaction to close for any other reason or to close on the anticipated terms; the risk that any regulatory approval, consent or authorization that may be required for the proposed transaction is not obtained or is obtained subject to conditions that are not anticipated or that could adversely affect the expected benefits of the transaction; significant and/or unanticipated difficulties, liabilities or expenditures relating to the transaction; the effect of the announcement, pendency or completion of the proposed transaction on the parties' business relationships and business operations generally; the effect of the announcement or pendency of the proposed transaction on the parties' common or ordinary share prices and uncertainty as to the long-term value of PANW's or CyberArk's common or ordinary share; risks related to disruption of management time from ongoing business operations due to the proposed transaction; the outcome of any legal proceedings that may be instituted against PANW, CyberArk or their respective directors; developments and changes in general or worldwide market, geopolitical, economic, and business conditions; failure of PANW's platformization product offerings; failure to achieve the expected benefits of PANW's strategic partnerships and acquisitions; changes in the fair value of PANW's contingent consideration liability associated with acquisitions; risks associated with managing PANW's growth; risks associated with new product, subscription and support offerings, including product offerings that leverage AI; shifts in priorities or delays in the development or release of new product or subscription or other offerings, or the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products, subscriptions and support offerings; failure of PANW's or CyberArk's business strategies; rapidly evolving technological developments in the market for security products, subscriptions and support offerings; defects, errors, or vulnerabilities in our products, subscriptions or support offerings; PANW's customers' purchasing decisions and the length of sales cycles; PANW's competition; PANW's ability to attract and retain new customers; PANW's ability to acquire and integrate other companies, products, or technologies in a successful manner; PANW's share repurchase program, which may not be fully consummated or enhance shareholder value, and any share repurchases which could affect the price of its common stock.

![](tm2522061d1_ex99-1img001.jpg)

For additional risks and uncertainties on these and other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to PANW's and CyberArk's respective periodic reports and other filings with the Securities and Exchange Commission (the "SEC"), including the risk factors contained in PANW's and CyberArk's annual report on Form 10-K or 20-F, as applicable, periodic quarterly reports on Form 10-Q or reports of foreign private issuer on Form 6-K, as applicable. All forward-looking statements in this press release are based on current beliefs and information available to management as of the date hereof, and neither PANW nor CyberArk assumes any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

**No Offer or Solicitation**

This press release is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.

**Additional Information about the Merger and Where to Find It**

In connection with the proposed transaction, PANW intends to file with the SEC a registration statement on Form S-4, which will include a proxy statement of CyberArk that also constitutes a prospectus of PANW common shares to be offered in the proposed transaction. Each of PANW and CyberArk may also file or furnish other relevant documents with the SEC regarding the proposed transaction. This press release is not a substitute for the proxy statement/prospectus or registration statement or any other document that PANW or CyberArk may file or furnish with the SEC or send to security holders in connection with the proposed transaction. The registration statement will include a definitive proxy statement/prospectus, which will be sent to shareholders of CyberArk seeking their approval of the proposed transaction. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT ON FORM S-4, THE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED OR FURNISHED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free copies of the registration statement and proxy statement/prospectus, when available, and other documents containing important information about PANW, CyberArk and the proposed transaction, once such documents are filed or furnished with the SEC through the website maintained by the SEC at *www.sec.gov*. Copies of the documents filed with the SEC by PANW will be available free of charge on PANW's website at *www.paloaltonetworks.com* or by contacting PANW's Investor Relations Department by email at ir@paloaltonetworks.com. Copies of the documents filed or furnished with the SEC by CyberArk will be available free of charge on CyberArk's website at *www.cyberark.com* or by contacting CyberArk's Investor Relations department by email at ir@cyberark.com.com or by phone at 617-558-2132.

**###**

**Media & Investor Contacts:** 

Nicole Hockin

VP, Global Communications<br> Palo Alto Networks

<u>nhockin@paloaltonetworks.com</u>

Hamza Fodderwala

SVP, Investor Relations & Strategic Finance

<u>hfodderwala@paloaltonetworks.com</u>

Anna Walsh

VP, Brand Experience

CyberArk

<u>press@cyberark.com</u>

Kelsey Turcotte

SVP, Investor Relations

CyberArk

<u>ir@cyberark.com</u>

## Exhibit 99.2

**Exhibit 99.2**

![](tm2522061d1_ex99-2img001.jpg)

**CyberArk Announces Strong Second Quarter 2025 Results**

*Total Annual Recurring Revenue (ARR) Reaches $1.274 billion*

*Subscription Portion of ARR Reaches $1.088 billion*

*Total Revenue of $328 million*

*Adjusted Free Cash Flow of $44 million, or a 13 percent Adjusted FCF margin*

**Newton, Mass. and Petach Tikva, Israel – July 30, 2025 –** CyberArk (NASDAQ: CYBR), the global leader in <u>identity security</u>, today announced strong financial results for the second quarter ended June 30, 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 Matt Cohen, Chief Executive Officer of CyberArk. "We operate in an environment where the pace of change is exponential, and identity is central to major breaches. To meet this challenge, organizations need an identity security platform that delivers both breadth and depth: comprehensive coverage of every identity type – human, machine and AI – delivered on a unified platform with best-in-class privilege controls that only CyberArk can provide. This is why we are very pleased with Palo Alto Networks' proposed acquisition of CyberArk that was announced earlier this morning. Together we can bring our vision for identity security to the world, much faster and at a scale only enabled by the combination of both companies."

**Financial Summary for the Second Quarter Ended June 30, 2025**

The financial results for the second quarter of 2025 include the financial contributions from the acquisition of Venafi, which closed on October 1, 2024, and the financial contributions from the acquisition of Zilla Security, which closed on February 12, 2025. The financial results in the comparable period in 2024 did not include any financial contribution from these acquisitions.

&nbsp;&nbsp;&nbsp;&nbsp;· Total revenue was $328.0 million in the second
quarter of 2025, up 46 percent from $224.7 million in the second quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· Subscription revenue was $263.8 million in the
second quarter of 2025, an increase of 66 percent from $158.4 million in the second quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· Maintenance, professional services and other
revenue was $64.3 million in the second quarter of 2025, compared to $66.3 million in the second quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· GAAP operating loss was $(35.8) million compared
to GAAP operating loss of $(24.0) million in the same period last year.

&nbsp;&nbsp;&nbsp;&nbsp;· Non-GAAP operating income was $49.4 million,
or 15 percent margin, compared to non-GAAP operating income of $23.7 million, or 11 percent margin, in the same period last year.

&nbsp;&nbsp;&nbsp;&nbsp;· GAAP net loss was $(90.8) million, or $(1.81)
per basic and diluted share, compared to GAAP net loss of $(12.9) million, or $(0.30) per basic and diluted share, in the same period
last year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· GAAP net loss for the second quarter of 2025
reflects the impact from a $44.1 million one-time tax payment related to the capital gain associated with the intercompany migration of
intellectual property related to the Venafi acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;· Non-GAAP net income was $45.6 million, or $0.88
per diluted share, compared to non-GAAP net income of $26.1 million, or $0.54 per diluted share, in the same period last year.

**Balance Sheet and Net Cash Provided by Operating Activities**

&nbsp;&nbsp;&nbsp;&nbsp;· As of June 30, 2025, cash, cash equivalents,
short- and long-term deposits, and marketable securities were $1.919 billion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· This reflects the $1.219 billion in net proceeds
we received from the issuance of our Convertible Senior Notes due 2030, which closed on June 10, 2025, as well as the use of $110
million of the net proceeds from this offering to pay the cost of certain privately negotiated capped call transactions related to these
Convertible Senior Notes.

&nbsp;&nbsp;&nbsp;&nbsp;· During the three months ended June 30, 2025,
the Company's net cash provided by operating activities was $4.7 million, compared to $44.3 million in the three months ended June 30,
2024. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The net cash provided by operating activities
for the quarter includes the impact from the $44.1 million one-time tax payment discussed above.

**Key Business Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;· Annual Recurring Revenue (ARR) was $1.274 billion,
an increase of 47 percent from $868 million at June 30, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Subscription portion of ARR was $1.088 billion,
or 85 percent of total ARR at June 30, 2025. This represents an increase of 61 percent from $677 million, or 78 percent of total
ARR, at June 30, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Maintenance portion of ARR was $185 million
at June 30, 2025, compared to $191 million at June 30, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· Recurring revenue in the second quarter of 2025
was $309.9 million, an increase of 49 percent from $208.0 million for the second quarter of 2024.

**Transaction with Palo Alto Networks**

In a separate press release issued today, CyberArk ("the Company") announced that it has entered into a definitive agreement under which Palo Alto Networks ("PANW") intends to acquire the Company in a cash-and-stock transaction valued at approximately $25 billion in equity value, based on $45 in cash and 2.2005 of PANW common stock for each CyberArk share. The press release announcing the transaction is available on the Investor Relations section of the Company's website. The transaction has been unanimously approved by the boards of directors of both PANW and the Company and is expected to close during the second half of PANW's fiscal 2026, subject to the satisfaction of customary closing conditions, including the receipt of regulatory clearances and approval by the Company's shareholders.

**Cancellation of Earnings Conference Call and Guidance Update**

As a result of the announced transaction with PANW, the Company will not be holding its previously scheduled conference call to discuss its second quarter 2025 results and will not be providing or updating previously issued financial guidance.

**New Presentation of Revenue Line Items**

Beginning in the first quarter of 2025, CyberArk revised the presentation of its lines of revenue and cost of revenue by combining the revenues and cost of revenues previously reported under the "Perpetual license" line and "Maintenance and Professional Services" line under the "Maintenance, Professional Services and Other" line. The Company believes this presentation of revenue and cost of revenue on the consolidated statement of operations aligns with how management evaluates the business. Historical information by quarter for fiscal years 2023 and 2024, which has been retroactively reclassified to reflect the new lines of revenue and cost of revenue, can be found in the PowerPoint presentation posted to CyberArk's investor relations website.

**About CyberArk**

CyberArk (NASDAQ: <u>CYBR</u>) 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. Learn more at <u>cyberark.com</u>.

*Copyright© 2025 CyberArk Software. All Rights Reserved. All other brand names, product names, or trademarks belong to their respective holders.*

**Key Performance Indicators and Non-GAAP Financial Measures**

**Recurring Revenue**

&nbsp;&nbsp;&nbsp;&nbsp;· Recurring Revenue is defined as revenue derived
from SaaS and self-hosted subscription contracts, and maintenance contracts related to perpetual licenses during the reported period.

**Annual Recurring Revenue (ARR)**

&nbsp;&nbsp;&nbsp;&nbsp;· ARR is defined as the annualized value of
active SaaS, self-hosted subscriptions and their associated maintenance and support services, and maintenance contracts related to the
perpetual licenses in effect at the end of the reported period.

**Subscription Portion of Annual Recurring Revenue**

&nbsp;&nbsp;&nbsp;&nbsp;· Subscription portion of ARR is defined as the
annualized value of active SaaS and self-hosted subscription contracts in effect at the end of the reported period. The subscription portion
of ARR excludes maintenance contracts related to perpetual licenses.

**Maintenance Portion of Annual Recurring Revenue**

&nbsp;&nbsp;&nbsp;&nbsp;· Maintenance portion of ARR is defined as the
annualized value of active maintenance contracts related to perpetual licenses. The Maintenance portion of ARR excludes SaaS and self-hosted
subscription contracts in effect at the end of the reported period.

**Net New ARR**

&nbsp;&nbsp;&nbsp;&nbsp;· Net new ARR refers to the difference between
ARR as of June 30, 2025 and ARR as of March 31, 2025.

Annual Recurring Revenue (ARR), Subscription portion of ARR and Maintenance portion of ARR are performance indicators that provide more visibility into the growth of our recurring business in the upcoming year. This visibility allows us to make informed decisions about our capital allocation and level of investment. Each of these measures should be viewed independently of revenues and total deferred revenue as each is an operating measure and is not intended to be combined with or to replace either of those measures. ARR, Subscription portion of ARR and Maintenance portion of ARR are not forecasts of future revenues and can be impacted by contract start and end dates and renewal rates.

**Non-GAAP Financial Measures**

CyberArk believes that the use of non-GAAP gross profit, non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, free cash flow and adjusted free cash flow is helpful to our investors. These financial measures are not measures of the Company's financial performance under U.S. GAAP and should not be considered as alternatives to gross profit, operating loss, net loss or net cash provided by operating activities or any other performance measures derived in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;· Non-GAAP gross profit is calculated as GAAP gross
profit excluding share-based compensation expense, and amortization of intangible assets related to acquisitions.

&nbsp;&nbsp;&nbsp;&nbsp;· Non-GAAP operating expense is calculated as GAAP
operating expenses excluding share-based compensation expense, acquisition related expenses, and amortization of intangible assets related
to acquisitions.

&nbsp;&nbsp;&nbsp;&nbsp;· Non-GAAP operating income is calculated as GAAP
operating loss excluding share-based compensation expense, acquisition related expenses, and amortization of intangible assets related
to acquisitions.

&nbsp;&nbsp;&nbsp;&nbsp;· Non-GAAP net income is calculated as GAAP net
loss excluding share-based compensation expense, acquisition related expenses, amortization of intangible assets related to acquisitions,
amortization of debt discount and issuance costs, gain from investment in privately held companies, and tax adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;· Free cash flow is calculated as net cash provided
by operating activities less purchase of property and equipment and other assets, and capitalized internal-use software.

&nbsp;&nbsp;&nbsp;&nbsp;· Adjusted free cash flow is calculated as free
cash flow plus one-time tax payment on the capital gain from the intercompany migration of intellectual property (IP) related to the Venafi
acquisition and capital expenditures related to our new U.S. headquarters.

The Company believes that providing non-GAAP financial measures that are adjusted by, as applicable, share-based compensation expense, acquisition related expenses, amortization of intangible assets related to acquisitions, amortization of debt discount and issuance costs, gain from investment in privately held companies, tax adjustments, purchase of property and equipment and other assets, capitalized internal-use software, one-time tax payment on the capital gain from the intercompany migration of intellectual property, and capital expenditures related to our new U.S. headquarters allows for more meaningful comparisons of its period to period operating results. Share-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in the Company's business and an important part of the compensation provided to its employees. Share-based compensation expense has varying available valuation methodologies, subjective assumptions and a variety of equity instruments that can impact a company's non-cash expense. The Company believes that expenses related to its acquisitions, amortization of intangible assets related to acquisitions, gain from investment in privately held companies, and amortization of debt discount and issuance costs do not reflect the performance of its core business and impact period-to-period comparability. The Company believes free cash flow and adjusted free cash flow are liquidity measures that, after the purchase of property and equipment and other assets, capitalized internal-use software, one-time tax payment on the capital gain from the intercompany migration of intellectual property, and capital expenditures related to our new U.S. headquarters provide useful information about the amount of cash generated by the business.

Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies in the industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures as they exclude expenses that may have a material impact on the Company's reported financial results. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP. CyberArk urges investors to review the reconciliation of its non-GAAP financial measures to the comparable U.S. GAAP financial measures included below, and not to rely on any single financial measure to evaluate its business.

Beginning in the first quarter of 2025, we will utilize a fixed projected non-GAAP tax rate when calculating non-GAAP financial measures to provide better consistency across interim reporting periods. In projecting this rate, we exclude the effects of certain non-recurring items, which do not necessarily reflect our normal operations, and the direct income tax effects of other non-GAAP adjustments. The fixed projected non-GAAP tax rate is based on annual financial projections and reflects our evaluation of historical and projected geographic earnings mix within our operating structure, recurring tax credits, existing tax positions in various jurisdictions and current impacts from key legislation. Based on these considerations, we applied a fixed projected non-GAAP tax rate for 2025 of 24%. We will provide updates to this rate on an annual basis, or more frequently, if significant events have a material impact on the rate. The rate could be subject to change for a variety of reasons, such as significant changes in the geographic earnings mix, relevant tax law changes in major jurisdictions where we operate, or significant acquisitions.

**Cautionary Language Concerning Forward-Looking Statements**

This release contains forward-looking statements, which express the current beliefs and expectations of CyberArk's (the "Company") management. These forward-looking statements generally include statements regarding the Company's financial and operational performance, industry trends, and the transaction with PANW, including the anticipated timing thereof. In some cases, forward-looking statements may be identified by terminology such as "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "expect," "predict," "potential" or the negative of these terms or other similar expressions. Such statements involve a number of known and unknown risks and uncertainties that could cause the Company's future results, levels of activity, performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include, but are not limited to: the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction between PANW and the Company; PANW's ability to successfully integrate the Company's businesses and technologies; the risk that the expected benefits and synergies of the proposed transaction may not be fully achieved in a timely manner, or at all; the risk that PANW or the Company will be unable to retain and hire key personnel; the risk associated with the Company's ability to obtain the approval of its shareholders required to consummate the proposed transaction; the risk that the conditions to the proposed transaction are not satisfied on a timely basis, or at all, or the failure of the proposed transaction to close for any other reason or to close on the anticipated terms; the risk that any regulatory approval, consent or authorization that may be required for the proposed transaction is not obtained or is obtained subject to conditions that are not anticipated or that could adversely affect the expected benefits of the transaction; significant and/or unanticipated difficulties, liabilities or expenditures relating to the transaction; the effect of the announcement, pendency or completion of the proposed transaction on the parties' business relationships and business operations generally; the effect of the announcement or pendency of the proposed transaction on the parties' common or ordinary share prices and uncertainty as to the long-term value of PANW's or the Company's common or ordinary share; risks related to disruption of management time from ongoing business operations due to the proposed transaction; the outcome of any legal proceedings that may be instituted against PANW, the Company or their respective directors; developments and changes in general or worldwide market, geopolitical, economic, and business conditions; failure of PANW's platformization product offerings; failure to achieve the expected benefits of PANW's strategic partnerships and acquisitions; changes in the fair value of PANW's contingent consideration liability associated with acquisitions; risks associated with managing PANW's growth; risks associated with new product, subscription and support offerings, including product offerings that leverage AI; shifts in priorities or delays in the development or release of new product or subscription or other offerings, or the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products, subscriptions and support offerings; failure of PANW's or the Company's business strategies; rapidly evolving technological developments in the market for security products, subscriptions and support offerings; defects, errors, or vulnerabilities in products, subscriptions or support offerings; PANW's customers' purchasing decisions and the length of sales cycles; PANW's competition; PANW's ability to attract and retain new customers; PANW's ability to acquire and integrate other companies, products, or technologies in a successful manner; PANW's share repurchase program, which may not be fully consummated or enhance shareholder value, and any share repurchases which could affect the price of its common stock; risks related to the Company's acquisitions of Venafi Holdings, Inc. ("Venafi") and Zilla Security Inc. ("Zilla"), including potential impacts on operating results; challenges in retaining and hiring key personnel and maintaining the Venafi and Zilla businesses; risks related to the successful integration of the operations of Venafi or Zilla and the ability to realize anticipated benefits of the combined operations; the rapidly evolving security market, increasingly changing cyber threat landscape and the Company's ability to adapt its solutions to the information security market changes and demands; the Company's ability to acquire new customers and maintain and expand its revenues from existing customers; real or perceived security vulnerabilities and gaps in the Company's solutions or services or the failure of customers or third parties to correctly implement, manage and maintain solutions; the Company's IT network systems, or those of third-party providers, may be compromised by cyberattacks or other security incidents, or by a critical system disruption or failure; intense competition within the information security market; failure to fully execute, integrate, or realize the benefits expected from strategic alliances, partnerships, and acquisitions; the Company's ability to effectively execute its sales and marketing strategies, and expand, train and retain its sales personnel; risks related to the Company's compliance with privacy, data protection and AI laws and regulations; the Company's ability to hire, upskill, retain and motivate qualified personnel; risks related to the integration of AI technology into our operations and solutions; reliance on third-party cloud providers for the Company's operations and software-as-a-service (SaaS) solutions; the Company's ability to maintain successful relationships with channel partners, or if channel partners fail to perform; fluctuation in the Company's quarterly results of operations; risks related to sales made to government entities; economic uncertainties or downturns; the Company's history of incurring net losses, its ability to generate sufficient revenue to achieve and sustain profitability and its ability to generate cash flow from operating activities; regulatory and geopolitical risks associated with the Company's global sales and operations; risks related to intellectual property; fluctuations in currency exchange rates; the ability of the Company's solutions to help customers achieve and maintain compliance with government regulations or industry standards; the Company's ability to protect its proprietary technology and intellectual property rights; risks related to using third-party software, such as open-source software and other intellectual property; risks related to share price volatility or activist shareholders; any failure to retain the Company's "foreign private issuer" status or the risk that the Company may be classified, for U.S. federal income tax purposes, as a "passive foreign investment company"; risks related to issuance of ordinary shares or securities convertible into ordinary shares and dilution, leading to a decline in the market value of the Company's ordinary shares; changes in tax laws; the Company's expectation to not pay dividends on its ordinary shares for the foreseeable future; risks related to the Company's incorporation and location in Israel, including wars and other hostilities in the Middle East; and other factors discussed under the heading "Risk Factors" in the Company's most recent annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the Company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

**Additional Information about the Merger and Where to Find It**

In connection with the proposed transaction, PANW intends to file with the SEC a registration statement on Form S-4, which will include a proxy statement of CyberArk that also constitutes a prospectus of PANW common shares to be offered in the proposed transaction. Each of PANW and CyberArk may also file or furnish other relevant documents with the SEC regarding the proposed transaction. This communication is not a substitute for the proxy statement/prospectus or registration statement or any other document that PANW or CyberArk may file or furnish with the SEC or send to security holders in connection with the proposed transaction. The registration statement will include a definitive proxy statement/prospectus, which will be sent to shareholders of CyberArk seeking their approval of the proposed transaction. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT ON FORM S-4, THE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED OR FURNISHED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free copies of the registration statement and proxy statement/prospectus, when available, and other documents containing important information about PANW, CyberArk and the proposed transaction, once such documents are filed or furnished with the SEC through the website maintained by the SEC at *www.sec.gov*. Copies of the documents filed with the SEC by PANW will be available free of charge on PANW's website at *www.paloaltonetworks.com* or by contacting PANW's Investor Relations Department by email at ir@paloaltonetworks.com. Copies of the documents filed or furnished with the SEC by CyberArk will be available free of charge on CyberArk's website at *www.cyberark.com* or by contacting CyberArk's Investor Relations department by email at ir@cyberark.com.com or by phone at 617-558-2132.

*###*

**Investor Relations Contact:**

Kelsey Turcotte

CyberArk

617-558-2132

<u>ir@cyberark.com</u>

**Media Contact:**

Rachel Gardner

CyberArk

603-531-7229

<u>press@cyberark.com</u>

**CYBERARK SOFTWARE LTD.** 

**Consolidated Statements of Operations** 

**U.S. dollars in thousands (except per share data)** 

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2024** | **2025** | **2024** | **2025** |
| Revenues: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Subscription | $158414 | $263750 | $314653 | $514361 |
| &nbsp;&nbsp;&nbsp;Maintenance, Professional Services and Other | 66292 | 64280 | 131603 | 131270 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 224706 | 328030 | 446256 | 645631 |
| &nbsp;&nbsp;&nbsp;Cost of revenues: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Subscription | 22601 | 54844 | 43563 | 105922 |
| &nbsp;&nbsp;&nbsp;Maintenance, Professional Services and Other | 22417 | 25701 | 43863 | 50884 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenues | 45018 | 80545 | 87426 | 156806 |
| &nbsp;&nbsp;&nbsp;Gross profit | 179688 | 247485 | 358830 | 488825 |
| &nbsp;&nbsp;&nbsp;Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development | 56556 | 82235 | 110470 | 160800 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 115339 | 164401 | 220303 | 310041 |
| &nbsp;&nbsp;&nbsp;General and administrative | 31769 | 36666 | 58411 | 74534 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 203664 | 283302 | 389184 | 545375 |
| &nbsp;&nbsp;&nbsp;Operating loss | (23976) | (35817) | (30354) | (56550) |
| &nbsp;&nbsp;&nbsp;Financial income, net | 13347 | 13721 | 27399 | 22362 |
| &nbsp;&nbsp;&nbsp;Loss before taxes on income | (10629) | (22096) | (2955) | (34188) |
| &nbsp;&nbsp;&nbsp;Taxes on income | (2294) | (68732) | (4498) | (45177) |
| &nbsp;&nbsp;&nbsp;Net loss | $(12923) | $(90828) | $(7453) | $(79365) |
| &nbsp;&nbsp;&nbsp;Basic loss per ordinary share | $(0.30) | $(1.81) | $(0.17) | $(1.59) |
| &nbsp;&nbsp;&nbsp;Diluted loss per ordinary share | $(0.30) | $(1.81) | $(0.17) | $(1.59) |
| &nbsp;&nbsp;&nbsp;Shares used in computing net loss per ordinary shares, basic | 42948191 | 50122220 | 42689375 | 49857448 |
| &nbsp;&nbsp;&nbsp;Shares used in computing net loss per ordinary shares, diluted | 42948191 | 50122220 | 42689375 | 49857448 |

---

**CYBERARK SOFTWARE LTD.** 

**Consolidated Balance Sheets** 

**U.S. dollars in thousands** 

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2024** | **June 30,**<br>**2025** |
| **ASSETS** |  |  |
| CURRENT ASSETS: |  |  |
| Cash and cash equivalents | $526467 | $886384 |
| Short-term bank deposits | 256953 | 351562 |
| Marketable securities | 36356 | 300829 |
| Trade receivables | 328465 | 247893 |
| Prepaid expenses and other current assets | 45292 | 85490 |
| Total current assets | 1193533 | 1872158 |
| LONG-TERM ASSETS: |  |  |
| Long-term bank deposits | 2400 | 84657 |
| Marketable securities | 21345 | 295711 |
| Property and equipment, net | 19581 | 24804 |
| Intangible assets, net | 534726 | 525678 |
| Goodwill | 1317374 | 1444680 |
| Other long-term assets | 256131 | 280565 |
| Deferred tax asset | 3305 | 2944 |
| Total long-term assets | 2154862 | 2659039 |
| **TOTAL ASSETS** | $3348395 | $4531197 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| CURRENT LIABILITIES: |  |  |
| Trade payables | $23671 | $24723 |
| Employees and payroll accruals | 133400 | 115443 |
| Accrued expenses and other current liabilities | 53486 | 71000 |
| Deferred revenues | 596874 | 598016 |
| Total current liabilities | 807431 | 809182 |
| LONG-TERM LIABILITIES: |  |  |
| Convertible senior notes, net |  | 1219236 |
| Deferred revenues | 95190 | 85773 |
| Other long-term liabilities | 75970 | 98268 |
| Total long-term liabilities | 171160 | 1403277 |
| **TOTAL LIABILITIES** | 978591 | 2212459 |
| SHAREHOLDERS' EQUITY: |  |  |
| Ordinary shares of NIS 0.01 par value | 130 | 133 |
| Additional paid-in capital | 2494158 | 2504068 |
| Accumulated other comprehensive income | 2173 | 20559 |
| Accumulated deficit | (126657) | (206022) |
| Total shareholders' equity | 2369804 | 2318738 |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $3348395 | $4531197 |

---

**CYBERARK SOFTWARE LTD.** 

**Consolidated Statements of Cash Flows** 

**U.S. dollars in thousands** 

**(Unaudited)** 

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** |
|  | **2024** | **2025** |
| **Cash flows from operating activities:** |  |  |
| Net loss | $(7453) | $(79365) |
| Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |
| Depreciation and amortization | 8046 | 64359 |
| Amortization of premium and accretion of discount on marketable securities, net | (3632) | (653) |
| Impairment of available for sale marketable securities | 2674 |  |
| Share-based compensation | 78030 | 103473 |
| Deferred income taxes, net | (314) | 2313 |
| Decrease in trade receivables | 30423 | 82417 |
| Amortization of debt discount and issuance costs | 1504 | 238 |
| Increase in prepaid expenses, other current and long-term assets and others | (16629) | (43040) |
| Changes in operating lease right-of-use assets | 3346 | 6411 |
| Increase (decrease) in trade payables | (4619) | 39 |
| Increase (decrease) in short-term and long-term deferred revenues | 37478 | (13172) |
| Decrease in employees and payroll accruals | (12394) | (28173) |
| Increase in accrued expenses and other current and long-term liabilities | 671 | 12399 |
| Changes in operating lease liabilities | (4153) | (3987) |
| Net cash provided by operating activities | 112978 | 103259 |
| **Cash flows from investing activities:** |  |  |
| Investment in short and long term deposits | (170820) | (336790) |
| Proceeds from short and long term deposits | 292675 | 164045 |
| Investment in marketable securities and other | (129480) | (562063) |
| Proceeds from maturities of marketable securities and other | 181482 | 24546 |
| Purchase of property and equipment and other assets | (3507) | (4484) |
| Capitalized internal-use software | (978) | (3616) |
| Payments for business acquisitions, net of cash acquired | - | (164383) |
| Net cash provided by (used in) investing activities | 169372 | (882745) |
| **Cash flows from financing activities:** |  |  |
| Proceeds from (payment of) withholding tax related to employee stock plans | (7361) | 8992 |
| Proceeds from exercise of stock options | 3845 | 3319 |
| Proceeds from issuance of convertible senior notes, net of issuance costs |  | 1218998 |
| Purchase of capped calls |  | (110000) |
| Proceeds in connection with employees stock purchase plan | 9771 | 12752 |
| Net cash provided by financing activities | 6255 | 1134061 |
| Increase in cash and cash equivalents | 288605 | 354575 |
| Effect of exchange rate differences on cash and cash equivalents | (3524) | 5342 |
| Cash and cash equivalents at the beginning of the period | 355933 | 526467 |
| Cash and cash equivalents at the end of the period | $641014 | $886384 |

---

**CYBERARK SOFTWARE LTD.** 

**Reconciliation of GAAP Measures to Non-GAAP Measures** 

**U.S. dollars in thousands (except per share data)** 

**(Unaudited)**

**Reconciliation of Net cash provided by operating activities to Adjusted Free Cash Flow:** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2024** | **2025** | **2024** | **2025** |
| Net cash provided by operating activities | $44343 | $4731 | $112978 | $103259 |
| Less: |  |  |  |  |
| Purchase of property and equipment and other assets | (2151) | (2785) | (3507) | (4484) |
| Capitalized internal-use software | (469) | (2309) | (978) | (3616) |
| Free cash flow | 41723 | (363) | 108493 | 95159 |
| Plus: |  |  |  |  |
| Tax payment related to transfer of Venafi IP | - | 44112 | - | 44112 |
| Adjusted free cash flow | $41723 | $43749 | $108493 | $139271 |
| GAAP net cash provided by (used in) investing activities | 152476 | (668788) | 169372 | (882745) |
| GAAP net cash provided by financing activities | 4376 | 1133432 | 6255 | 1134061 |

---

**Reconciliation of Gross Profit to Non-GAAP Gross Profit:**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2024** | **2025** | **2024** | **2025** |
| Gross profit | $179688 | $247485 | $358830 | $488825 |
| Plus: |  |  |  |  |
| Share-based compensation (1) | 5413 | 6665 | 10233 | 12357 |
| Amortization of share-based compensation capitalized in software development costs (3) | 81 | 94 | 153 | 188 |
| Amortization of intangible assets (2) | 1705 | 21776 | 3409 | 43223 |
| Non-GAAP gross profit | $186887 | $276020 | $372625 | $544593 |

---

**Reconciliation of Operating Expenses to Non-GAAP Operating Expenses:**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2024** | **2025** | **2024** | **2025** |
| Operating expenses | $203664 | $283302 | $389184 | $545375 |
| Less: |  |  |  |  |
| Share-based compensation (1) | 35118 | 48606 | 67797 | 91116 |
| Amortization of intangible assets (2) | 125 | 8091 | 250 | 15516 |
| Acquisition related expenses | 5281 | - | 5281 | 1105 |
| Non-GAAP operating expenses | $163140 | $226605 | $315856 | $437638 |

---

**Reconciliation of Operating Loss to Non-GAAP Operating Income:**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2024** | **2025** | **2024** | **2025** |
| Operating loss | $(23976) | $(35817) | $(30354) | $(56550) |
| Plus: |  |  |  |  |
| Share-based compensation (1) | 40531 | 55271 | 78030 | 103473 |
| Amortization of share-based compensation capitalized in software development costs (3) | 81 | 94 | 153 | 188 |
| Amortization of intangible assets (2) | 1830 | 29867 | 3659 | 58739 |
| Acquisition related expenses | 5281 | - | 5281 | 1105 |
| Non-GAAP operating income | $23747 | $49415 | $56769 | $106955 |

---

**Reconciliation of Net Loss to Non-GAAP Net Income:**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2024** | **2025** | **2024** | **2025** |
| Net loss | $(12923) | $(90828) | $(7453) | $(79365) |
| Plus: |  |  |  |  |
| Share-based compensation (1) | 40531 | 55271 | 78030 | 103473 |
| Amortization of share-based compensation capitalized in software development costs (3) | 81 | 94 | 153 | 188 |
| Amortization of intangible assets (2) | 1830 | 29867 | 3659 | 58739 |
| Acquisition related expenses | 5281 |  | 5281 | 1105 |
| Amortization of debt discount and issuance costs | 752 | 238 | 1504 | 238 |
| Gain from investment in privately held companies |  | (3318) |  | (3318) |
| Tax adjustments (4) | (9457) | 54319 | (19209) | 14880 |
| Non-GAAP net income | $26095 | $45643 | $61965 | $95940 |
| Non-GAAP net income per share |  |  |  |  |
| Basic | $0.61 | $0.91 | $1.45 | $1.92 |
| Diluted | $0.54 | $0.88 | $1.30 | $1.86 |
| Weighted average number of shares |  |  |  |  |
| Basic | 42948191 | 50122220 | 42689375 | 49857448 |
| Diluted | 47900949 | 51902595 | 47804286 | 51545146 |

---

**(1) Share-based Compensation :**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2024** | **2025** | **2024** | **2025** |
| Cost of revenues - Subscription | $1617 | $2647 | $3029 | $4653 |
| Cost of revenues - Maintenance, Professional Services and Other | 3796 | 4018 | 7204 | 7704 |
| Research and development | 8157 | 13007 | 15717 | 24033 |
| Sales and marketing | 16912 | 22309 | 31791 | 40902 |
| General and administrative | 10049 | 13290 | 20289 | 26181 |
| Total share-based compensation | $40531 | 55271 | $78030 | 103473 |

---

**(2) Amortization of intangible assets :**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2024** | **2025** | **2024** | **2025** |
| Cost of revenues - Subscription | $1705 | $21776 | $3409 | $43223 |
| Sales and marketing | 125 | 8091 | 250 | 15516 |
| Total amortization of intangible assets | $1830 | $29867 | $3659 | $58739 |

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**(3)** Classified as Cost of revenues - Subscription.

**(4)** Beginning in the first quarter of 2025, we will utilize a fixed projected non-GAAP tax rate in calculating non-GAAP financial measures to provide better consistency across interim reporting periods. In projecting this rate, we exclude the effects of certain non-recurring items, which do not necessarily reflect our normal operations, and the direct income tax effects of other non-GAAP adjustments. The fixed projected non-GAAP tax rate is based on annual financial projections and reflects our evaluation of historic and projected geographic earnings mix within our operating structure, recurring tax credits, existing tax positions in various jurisdictions and current impacts from key legislation. Based on these considerations, we applied a fixed projected non-GAAP tax rate for 2025 of 24%. The tax adjustments for the first and second quarters of 2024 include income tax adjustments related to non-GAAP items.