# EDGAR Filing Document

**Accession Number:** 0001598110
**File Stem:** 0001104659-25-107364
**Filing Date:** 2025-11
**Character Count:** 46255
**Document Hash:** a5e640bae271d860280ad8884dc62403
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-107364.hdr.sgml**: 20251106

**ACCESSION NUMBER**: 0001104659-25-107364

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 3

**CONFORMED PERIOD OF REPORT**: 20251106

**FILED AS OF DATE**: 20251106

**DATE AS OF CHANGE**: 20251106

**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:** 251456123

**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

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER** 

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

**Securities Exchange Act of 1934**

**For the month of November 2025**

**Commission File Number: 001-36625**

**CyberArk Software Ltd.** 

**(Translation of registrant's name into English)**

**CyberArk Software Ltd.** 

**9 Hapsagot St.** 

**Park Ofer 2, POB 3143** 

**Petach-Tikva, 4951041 Israel**

**(Address of principal executive offices)**

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

Form 20-F ⌧ Form 40-F ◻

**EXPLANATORY NOTE** 

On November 6, 2025, CyberArk Software Ltd. (the "Company") issued a press release entitled "CyberArk Announces Strong Third Quarter 2025 Results." A copy of this press release is furnished as Exhibit 99.1 herewith.

Other than as indicated below, the information in this Form 6-K (including in Exhibit 99.1) 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 99.1 to this Report on Form 6-K is 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).

**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.

---

| | | |
|:---|:---|:---|
|  | CYBERARK SOFTWARE LTD. | CYBERARK SOFTWARE LTD. |
| Date: November 6, 2025 | By: | /s/ Erica Smith |
|  |  | Name: Erica Smith |
|  |  | Title: Chief Financial Officer |

---

**EXHIBIT INDEX** 

---

| | |
|:---|:---|
| Exhibit | Description |
| [99.1](tm2530374d1_ex99-1.htm) | [Press release entitled "CyberArk Announces Strong Third Quarter 2025 Results"](tm2530374d1_ex99-1.htm) |

---

## Exhibit 99.1

**Exhibit 99.1**

![](tm2530374d1_ex99-1img01.jpg)

**CyberArk Announces Strong Third Quarter 2025 Results**

*Achieves Third Quarter Net New Annual Recurring Revenue (ARR) of $68 Million, up 16% Year-Over-Year*

*Total ARR Grows 45% Year-Over-Year to Reach $1.341 Billion*

*Subscription Portion of ARR Grows 57% Year-Over-Year to Reach $1.158 Billion*

**Newton, Mass. and Petach Tikva, Israel – November 6, 2025 –** CyberArk (NASDAQ: CYBR), the global leader in <u>identity security</u>, today announced strong financial results for the third quarter ended September 30, 2025.

"CyberArk delivered outstanding results, highlighted by record third quarter net new ARR and continued strong execution," said Matt Cohen, Chief Executive Officer of CyberArk. "We saw robust demand across our business, as customers turn to us to solve their most complex identity security challenges. The proliferation of privilege across human identities, the exponential rise of machine identities, and the emerging need to secure agentic AI create a tremendous opportunity — one that we are uniquely positioned to capture."

Continued Cohen, "Looking ahead, the combination of CyberArk and Palo Alto Networks will create a powerful growth engine, enabling us to reach more customers and meet the rapidly expanding market. Our customers are very excited about this partnership and the creation of a modern identity security platform for the AI era."

**Financial Summary for the Third Quarter Ended September 30, 2025**

The financial results for the third 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 $342.8 million in the third
quarter of 2025, up 43 percent from $240.1 million in the third quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· Subscription revenue was $280.1 million in the
third quarter of 2025, an increase of 60 percent from $175.6 million in the third quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· Maintenance, professional services and other
revenue was $62.7 million in the third quarter of 2025, compared to $64.5 million in the third quarter of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· GAAP operating loss was $(50.1) million compared
to GAAP operating loss of $(11.1) million in the same period last year.

&nbsp;&nbsp;&nbsp;&nbsp;· Non-GAAP operating income was $64.8 million,
or 19 percent margin, compared to non-GAAP operating income of $35.4 million, or 15 percent margin, in the same period last year.

&nbsp;&nbsp;&nbsp;&nbsp;· GAAP net loss was $(50.4) million, or $(1.00)
per basic and diluted share, compared to GAAP net income of $11.1 million, or $0.24 per diluted share, in the same period last year.

&nbsp;&nbsp;&nbsp;&nbsp;· Non-GAAP net income was $64.9 million, or $1.20
per diluted share, compared to non-GAAP net income of $45.1 million, or $0.94 per diluted share, in the same period last year.

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

&nbsp;&nbsp;&nbsp;&nbsp;· As of September 30, 2025, cash, cash equivalents,
short and long-term deposits, and marketable securities were $1.964 billion.

&nbsp;&nbsp;&nbsp;&nbsp;· During the three months ended September 30,
2025, the Company's net cash provided by operating activities was $50.7 million, compared to $54.2 million in the three months ended
September 30, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· During the three months ended September 30,
2025, adjusted free cash flow was $51.3 million. This includes adjustments for approximately $0.4 million in payments for capital expenditures
related to our new U.S. headquarters and approximately $8.5 million in payments related to the proposed transaction with PANW incurred
in the third quarter of 2025.

**Key Business Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;· Annual Recurring Revenue (ARR) was $1.341 billion,
an increase of 45 percent from $926 million at September 30, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Subscription portion of ARR was $1.158 billion,
or 86 percent of total ARR at September 30, 2025. This represents an increase of 57 percent from $735 million, or 79 percent of total
ARR, at September 30, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Maintenance portion of ARR was $183 million
at September 30, 2025, compared to $191 million at September 30, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;· Recurring revenue in the third quarter of 2025
was $326.3 million, an increase of 46 percent from $224.2 million for the third quarter of 2024.

**Recent Developments**

&nbsp;&nbsp;&nbsp;&nbsp;· CyberArk
 Introduces <u>First Identity Security Solution Purpose-Built to Protect AI Agents with Privilege Controls</u>.

&nbsp;&nbsp;&nbsp;&nbsp;· CyberArk <u>Named a Leader in the 2025 Gartner<sup>®</sup> Magic Quadrant<sup>™</sup> for Privileged Access Management</u>.<sup>(1)</sup>

&nbsp;&nbsp;&nbsp;&nbsp;· CyberArk
 Recognized as a <u>Leader in the Forrester Wave<sup>™</sup> for Privileged Identity Management</u> (PIM), Q3 2025.<sup>(2)</sup>

&nbsp;&nbsp;&nbsp;&nbsp;· CyberArk <u>Named an Overall Leader in 2025 KuppingerCole Leadership Compass for Identity Fabrics</u>.<sup>(3)</sup>

&nbsp;&nbsp;&nbsp;&nbsp;· CyberArk <u>Named Leader and Outperformer in GigaOm Radar for Enterprise Password Management</u>.
 <sup>(4)</sup>

<sup>(1)</sup> Gartner® Magic Quadrant<sup>™</sup> for Privileged Access Management by Abhyuday Data, Paul Mezzera, Shubham Gera, Tarun Rohilla, Michael Kelley, 13 October 2025

<sup>(2)</sup> The Forrester Wave™: Privileged Identity Management Solutions, Q3 2025 by Geoff Cairns, August 5, 2025

<sup>(3)</sup> KuppingerCole Analysts "2025 Leadership Compass for Identity Fabrics," by Martin Kuppinger, May 6, 2025

<sup>(4)</sup> GigaOm Radar for Enterprise Password Management, by Paul Stringfellow, June 10, 2025

**Proposed Transaction with Palo Alto Networks**

On July 30, 2025, CyberArk announced that it has entered into a definitive agreement under which Palo Alto Networks ("PANW") intends to acquire CyberArk in a cash-and-stock transaction valued at approximately $25 billion in equity value, based on per-share consideration of $45.00 in cash and 2.2005 shares of PANW common stock. 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 CyberArk 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.

**Earnings Conference Call and Guidance**

As a result of the proposed transaction with PANW, the Company will not be holding a conference call to discuss its third quarter 2025 results and will not be providing 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.

**Gartner Disclaimers**

GARTNER is a registered trademarks and service mark, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

The Gartner content described herein, (the "Gartner Content") represent(s) research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and are not representations of fact. Gartner Content speaks as of its original publication date (and not as of the date of this press release) and the opinions expressed in the Gartner Content are subject to change without notice.

**Forrester Objectivity Statement**

Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. For more information, read about Forrester's objectivity <u>here</u>.

**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 September 30, 2025 and ARR as of June 30, 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 income (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, facility exit and transition costs, 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, facility exit and transition costs, and amortization
of intangible assets related to acquisitions.

&nbsp;&nbsp;&nbsp;&nbsp;· Non-GAAP net income is calculated as GAAP net
income (loss) excluding share-based compensation expense, acquisition related expenses, facility exit and transition costs, amortization
of intangible assets related to acquisitions, change in fair value of derivative assets, 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, payments for capital expenditures related to our new U.S. headquarters and the payments related to the proposed transaction
with PANW.

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, facility exit and transition costs, gain from investment in privately held companies, change in fair value of derivative assets, 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, payments related to the proposed transaction with PANW, and payments for 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 acquisition related expenses, amortization of intangible assets related to acquisitions, facility exit and transition costs, change in fair value of derivative assets, 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, payments for capital expenditures related to our new U.S. headquarters and payments related to the proposed transaction with PANW 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. The tax adjustments for the three and nine months ended September 30, 2024 include income tax adjustments related to non-GAAP items.

**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 proposed transaction with PANW, including the anticipated timing of closing, the anticipated benefits of the transaction, and the combined company's total addressable market. 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.

*###*

**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** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2024** | **2025** | **2024** | **2025** |
| Revenues: |  |  |  |  |
| Subscription | $175577 | $280125 | $490230 | $794486 |
| Maintenance, Professional Services and other | 64525 | 62711 | 196128 | 193981 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 240102 | 342836 | 686358 | 988467 |
| Cost of revenues: |  |  |  |  |
| Subscription | 24569 | 55200 | 68132 | 161122 |
| Maintenance, Professional Services and other | 22616 | 24981 | 66479 | 75865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenues | 47185 | 80181 | 134611 | 236987 |
| Gross profit | 192917 | 262655 | 551747 | 751480 |
| Operating expenses: |  |  |  |  |
| Research and development | 59306 | 86728 | 169776 | 247528 |
| Sales and marketing | 113690 | 162595 | 333993 | 472636 |
| General and administrative | 31011 | 63415 | 89422 | 137949 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 204007 | 312738 | 593191 | 858113 |
| Operating loss | (11090) | (50083) | (41444) | (106633) |
| Financial income, net | 23442 | 20736 | 50841 | 43098 |
| Income (loss) before taxes on income | 12352 | (29347) | 9397 | (63535) |
| Taxes on income | (1242) | (21091) | (5740) | (66268) |
| Net income (loss) | $11110 | $(50438) | $3657 | $(129803) |
| Basic income (loss) per ordinary share | $0.26 | $(1.00) | $0.09 | $(2.59) |
| Diluted income (loss) per ordinary share | $0.24 | $(1.00) | $0.08 | $(2.59) |
| Shares used in computing net income (loss) |  |  |  |  |
| per ordinary shares, basic | 43310397 | 50427652 | 42879017 | 50049678 |
| Shares used in computing net income (loss) |  |  |  |  |
| per ordinary shares, diluted | 48260869 | 50427652 | 44290424 | 50049678 |

---

**CYBERARK SOFTWARE LTD.** 

**Consolidated Balance Sheets** 

**U.S. dollars in thousands** 

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2024** | **September 30,**<br>**2025** |
| **ASSETS** |  |  |
| CURRENT ASSETS: |  |  |
| Cash and cash equivalents | $526467 | $523559 |
| Short-term bank deposits | 256953 | 418359 |
| Marketable securities | 36356 | 525697 |
| Trade receivables | 328465 | 275715 |
| Prepaid expenses and other current assets | 45292 | 88793 |
| Total current assets | 1193533 | 1832123 |
| LONG-TERM ASSETS: |  |  |
| Long-term deposits | 2400 | 53000 |
| Marketable securities | 21345 | 443645 |
| Property and equipment, net | 19581 | 31296 |
| Intangible assets, net | 534726 | 495792 |
| Goodwill | 1317374 | 1444680 |
| Other long-term assets | 256131 | 297915 |
| Deferred tax asset | 3305 | 3556 |
| Total long-term assets | 2154862 | 2769884 |
| **TOTAL ASSETS** | $3348395 | $4602007 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| CURRENT LIABILITIES: |  |  |
| Trade payables | $23671 | $22784 |
| Employees and payroll accruals | 133400 | 123105 |
| Accrued expenses and other current liabilities | 53486 | 94458 |
| Deferred revenues | 596874 | 615492 |
| Total current liabilities | 807431 | 855839 |
| LONG-TERM LIABILITIES: |  |  |
| Convertible senior notes, net |  | 1220870 |
| Deferred revenues | 95190 | 81120 |
| Other long-term liabilities | 75970 | 108841 |
| Total long-term liabilities | 171160 | 1410831 |
| **TOTAL LIABILITIES** | 978591 | 2266670 |
| SHAREHOLDERS' EQUITY: |  |  |
| Ordinary shares of NIS 0.01 par value | 130 | 133 |
| Additional paid-in capital | 2494158 | 2569922 |
| Accumulated other comprehensive income | 2173 | 21742 |
| Accumulated deficit | (126657) | (256460) |
| Total shareholders' equity | 2369804 | 2335337 |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $3348395 | $4602007 |

---

**CYBERARK SOFTWARE LTD.** 

**Consolidated Statements of Cash Flows** 

**U.S. dollars in thousands** 

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** |
|  | **2024** | **2025** |
| **Cash flows from operating activities:** |  |  |
| Net income (loss) | $3657 | $(129803) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |
| Depreciation and amortization | 11983 | 97144 |
| Amortization of premium and accretion of discount on marketable securities, net and other | (3591) | (3561) |
| Share-based compensation | 121421 | 167007 |
| Deferred income taxes, net | 2764 | 2570 |
| Decrease in trade receivables | 20315 | 54595 |
| Amortization of debt discount and issuance costs | 2257 | 1872 |
| Change in fair value of derivative assets | (2591) |  |
| Increase in prepaid expenses, other current and long-term assets and others | (31778) | (60315) |
| Changes in operating lease right-of-use assets | 5947 | 10796 |
| Decrease in trade payables | (6078) | (2819) |
| Increase (decrease) in short-term and long-term deferred revenues | 45177 | (349) |
| Decrease in employees and payroll accruals | (6195) | (12175) |
| Increase in accrued expenses and other current and long-term liabilities | 10216 | 35991 |
| Changes in operating lease liabilities | (6353) | (7018) |
| Net cash provided by operating activities | 167151 | 153935 |
| **Cash flows from investing activities:** |  |  |
| Investment in short and long term deposits | (221898) | (436229) |
| Proceeds from short and long term deposits | 374707 | 232997 |
| Investment in marketable securities and other | (129481) | (988724) |
| Proceeds from maturities of marketable securities | 204764 | 83903 |
| Proceeds from sales of marketable securities and other | 483296 | 253 |
| Purchase of property and equipment and other assets | (5515) | (9055) |
| Capitalized internal-use software | (1575) | (7371) |
| Payments for business acquisitions, net of cash acquired | - | (164383) |
| Net cash provided by (used in) investing activities | 704298 | (1288609) |
| **Cash flows from financing activities:** |  |  |
| Payment of withholding tax related to employee stock plans | (7661) | (7689) |
| Proceeds from exercise of stock options | 5245 | 4875 |
| 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 | 14867 | 20725 |
| Net cash provided by financing activities | 12451 | 1126909 |
| Increase (decrease) in cash and cash equivalents | 883900 | (7765) |
| Effect of exchange rate differences on cash and cash equivalents | (1361) | 4857 |
| Cash and cash equivalents at the beginning of the period | 355933 | 526467 |
| Cash and cash equivalents at the end of the period | $1238472 | $523559 |

---

---

| |
|:---|
| **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** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2024** | **2025** | **2024** | **2025** |
| Net cash provided by operating activities | $54173 | $50676 | $167151 | $153935 |
| Less: |  |  |  |  |
| Purchase of property and equipment and other assets | (2008) | (4571) | (5515) | (9055) |
| Capitalized internal-use software | (597) | (3755) | (1575) | (7371) |
| Free cash flow | $51568 | $42350 | $160061 | $137509 |
| Plus: |  |  |  |  |
| Tax payment related to transfer of Venafi IP |  |  |  | 44112 |
| Payments related to the proposed transaction with PANW |  | 8491 |  | 8491 |
| Payment for capital expenditures related to new U.S. Headquarters |  | 418 |  | 418 |
| Adjusted free cash flow | $51568 | $51259 | $160061 | $190530 |
| GAAP net cash provided by (used in) investing activities | 534926 | (405864) | 704298 | (1288609) |
| GAAP net cash provided by (used in) financing activities | 6196 | (7152) | 12451 | 1126909 |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2024** | **2025** | **2024** | **2025** |
| Gross profit | $192917 | $262655 | $551747 | $751480 |
| Plus: |  |  |  |  |
| Share-based compensation (1) | 5624 | 7293 | 15857 | 19650 |
| Amortization of share-based compensation capitalized in software development costs (3) | 81 | 100 | 234 | 288 |
| Amortization of intangible assets (2) | 1704 | 21338 | 5113 | 64561 |
| Non-GAAP gross profit | $200326 | $291386 | $572951 | $835979 |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2024** | **2025** | **2024** | **2025** |
| Operating expenses | $204007 | $312738 | $593191 | $858113 |
| Less: |  |  |  |  |
| Share-based compensation (1) | 37767 | 56241 | 105564 | 147357 |
| Amortization of intangible assets (2) | 126 | 8091 | 376 | 23607 |
| Acquisition related expenses | 1144 | 21197 | 6425 | 22302 |
| Facility exit and transition costs | - | 615 | - | 615 |
| Non-GAAP operating expenses | $164970 | $226594 | $480826 | $664232 |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2024** | **2025** | **2024** | **2025** |
| Operating loss | $(11090) | $(50083) | $(41444) | $(106633) |
| Plus: |  |  |  |  |
| Share-based compensation (1) | 43391 | 63534 | 121421 | 167007 |
| Amortization of share-based compensation capitalized in software development costs (3) | 81 | 100 | 234 | 288 |
| Amortization of intangible assets (2) | 1830 | 29429 | 5489 | 88168 |
| Acquisition related expenses | 1144 | 21197 | 6425 | 22302 |
| Facility exit and transition costs | - | 615 | - | 615 |
| Non-GAAP operating income | $35356 | $64792 | $92125 | $171747 |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2024** | **2025** | **2024** | **2025** |
| Net income (loss) | $11110 | $(50438) | $3657 | $(129803) |
| Plus: |  |  |  |  |
| Share-based compensation (1) | 43391 | 63534 | 121421 | 167007 |
| Amortization of share-based compensation capitalized in software development costs (3) | 81 | 100 | 234 | 288 |
| Amortization of intangible assets (2) | 1830 | 29429 | 5489 | 88168 |
| Acquisition related expenses | 1144 | 21197 | 6425 | 22302 |
| Facility exit and transition costs |  | 615 |  | 615 |
| Amortization of debt discount and issuance costs | 753 | 1634 | 2257 | 1872 |
| Change in fair value of derivative assets | (2591) |  | (2591) |  |
| Gain from investment in privately held companies |  | (1754) |  | (5072) |
| Tax adjustments (4) | (10578) | 593 | (29787) | 15473 |
| Non-GAAP net income | $45140 | $64910 | $107105 | $160850 |
| Non-GAAP net income per share |  |  |  |  |
| Basic | $1.04 | $1.29 | $2.50 | $3.21 |
| Diluted | $0.94 | $1.20 | $2.23 | $3.07 |
| Weighted average number of shares |  |  |  |  |
| Basic | 43310397 | 50427652 | 42879017 | 50049678 |
| Diluted | 48260869 | 54213736 | 47926888 | 52435569 |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2024** | **2025** | **2024** | **2025** |
| Cost of revenues - Subscription | $1702 | $2853 | $4731 | $7506 |
| Cost of revenues - Maintenance, Professional Services and Other | 3922 | 4440 | 11126 | 12144 |
| Research and development | 8541 | 14144 | 24258 | 38177 |
| Sales and marketing | 17486 | 24527 | 49277 | 65429 |
| General and administrative | 11740 | 17570 | 32029 | 43751 |
| Total share-based compensation | $43391 | $63534 | $121421 | $167007 |

---

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
|  | **2024** | **2025** | **2024** | **2025** |
| Cost of revenues - Subscription | $1704 | $21338 | $5113 | $64561 |
| Sales and marketing | 126 | 8091 | 376 | 23607 |
| Total amortization of intangible assets | $1830 | $29429 | $5489 | $88168 |

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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 three and nine months ended September 30, 2024 include income tax adjustments related to non-GAAP items.