Check Point Software Technologies reported strong Q1 2025 results, with significant revenue and operating income growth year-over-year.
Quiver AI Summary
Check Point Software Technologies Ltd. announced its financial results for the first quarter of 2025, reporting a 7% year-over-year increase in total revenues to $638 million, along with a 17% rise in cash flow from operations to $421 million. The company experienced strong growth across various segments, including a 14% increase in products and licenses revenues, driven by demand for its Quantum Force appliances and AI-driven Infinity Platform. Remaining Performance Obligation (RPO) reached $2.4 billion, an 11% increase year-over-year. CEO Nadav Zafrir highlighted the positive results as a solid foundation for the year ahead. The press release also noted the company's intentions to participate in several investor conferences throughout May and June 2025.
Potential Positives
- Cash flow from operations increased by 17% year over year, reaching $421 million, indicating strong financial health and operational efficiency.
- Total revenues rose by 7% year over year to $638 million, demonstrating continued demand for Check Point's products and services.
- Products and licenses revenues surged by 14% year over year, reaching $114 million, reflecting robust market performance and customer interest.
- Non-GAAP EPS increased by 9% year over year to $2.21, showcasing improved profitability and value for shareholders.
Potential Negatives
- Cash and cash equivalents decreased from $506.2 million to $450.2 million, indicating a potential liquidity concern.
- Trade receivables showed a significant drop from $728.8 million to $399.7 million, which could raise questions about sales and collection effectiveness.
- Total liabilities increased slightly from $2,965.1 million to $2,809.4 million, which may suggest a growing financial burden.
FAQ
What are the financial highlights for Check Point in Q1 2025?
The financial highlights include $638 million in total revenues, $421 million cash flow, and $2.4 billion in Remaining Performance Obligation.
How did Check Point's revenues change in Q1 2025?
Total revenues increased by 7 percent year over year, with products & licenses revenues up 14 percent and security subscriptions by 10 percent.
When will Check Point hold its Q1 2025 financial conference call?
The conference call is scheduled for April 23, 2025, at 8:30 AM ET/5:30 AM PT.
What is the significance of Check Point's AI-driven Infinity Platform?
The Infinity Platform's AI-driven capabilities contributed to double-digit year-over-year growth, resonating well with customers.
What are the expected upcoming investor events for Check Point?
Check Point will participate in several investor conferences, including Barclays and J.P. Morgan events in May 2025.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$CHKP Hedge Fund Activity
We have seen 306 institutional investors add shares of $CHKP stock to their portfolio, and 345 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- NORGES BANK added 2,185,633 shares (+1965.4%) to their portfolio in Q4 2024, for an estimated $408,057,681
- CLEARBRIDGE INVESTMENTS, LLC added 538,064 shares (+inf%) to their portfolio in Q4 2024, for an estimated $100,456,548
- CAUSEWAY CAPITAL MANAGEMENT LLC added 487,823 shares (+33.8%) to their portfolio in Q4 2024, for an estimated $91,076,554
- ACADIAN ASSET MANAGEMENT LLC removed 456,097 shares (-11.2%) from their portfolio in Q4 2024, for an estimated $85,153,309
- MORNINGSTAR INVESTMENT SERVICES LLC removed 429,246 shares (-90.6%) from their portfolio in Q4 2024, for an estimated $80,140,228
- ALTSHULER SHAHAM LTD added 392,000 shares (+inf%) to their portfolio in Q4 2024, for an estimated $73,186,400
- VOYA INVESTMENT MANAGEMENT LLC removed 340,564 shares (-42.9%) from their portfolio in Q4 2024, for an estimated $63,583,298
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$CHKP Analyst Ratings
Wall Street analysts have issued reports on $CHKP in the last several months. We have seen 3 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Scotiabank issued a "Outperform" rating on 01/31/2025
- Jefferies issued a "Buy" rating on 12/19/2024
- Barclays issued a "Overweight" rating on 10/29/2024
To track analyst ratings and price targets for $CHKP, check out Quiver Quantitative's $CHKP forecast page.
$CHKP Price Targets
Multiple analysts have issued price targets for $CHKP recently. We have seen 7 analysts offer price targets for $CHKP in the last 6 months, with a median target of $225.0.
Here are some recent targets:
- Todd Weller from Stephens set a target price of $255.0 on 03/31/2025
- Shyam Patil from Susquehanna set a target price of $255.0 on 01/31/2025
- Shrenik Kothari from Robert W. Baird set a target price of $235.0 on 01/31/2025
- Joseph Gallo from Jefferies set a target price of $225.0 on 12/19/2024
- Brad Zelnick from Deutsche Bank set a target price of $200.0 on 12/02/2024
- Tal Liani from Compass Point set a target price of $195.0 on 10/30/2024
- Saket Kalia from Barclays set a target price of $200.0 on 10/29/2024
Full Release
TEL AVIV, Israel, April 23, 2025 (GLOBE NEWSWIRE) --
Check Point® Software Technologies Ltd
. (NASDAQ: CHKP), today announced its financial results for the quarter ended March 31
st
, 2025.
First
Quarter 2025 Financial Highlights:
Cash Flow from Operations: $421 million, a 17 percent increase year over year
Calculated Billings* reached $553 million, a 7 percent increase year over year
Remaining Performance Obligation (RPO)**: $2.4 billion, an 11 percent increase year over year
Total Revenues: $638 million, a 7 percent increase year over year
Products & Licenses Revenues: $114 million, a 14 percent increase year over year
Security Subscriptions Revenues: $291 million, a 10 percent increase year over year
GAAP Operating Income: $196 million, representing 31 percent of total revenues
Non-GAAP Operating Income: $259 million, representing 41 percent of total revenues
GAAP EPS: $1.71, a 7 percent increase year over year
Non-GAAP EPS: $2.21, a 9 percent increase year over year
"The first quarter results have provided a solid foundation to expand upon as we progress through the year. Strong demand for our Quantum Force appliances, fueled by refresh cycles and new projects delivered double-digit year-over-year growth in products and licenses revenues," stated CEO Nadav Zafrir. "The AI-driven Infinity Platform, featuring a Hybrid Mesh Architecture, continues to resonate with customers and delivered another quarter of impressive double-digit year-over-year growth."
For information regarding the non-GAAP financial measures discussed in this release, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures, please see below “Use of Non-GAAP Financial Information” and “Reconciliation of GAAP to Non-GAAP Financial Information.”
Conference Call & Video Cast Information
Check Point will host a conference call with the investment community on April 23, 2025, at 8:30 AM ET/5:30 AM PT. To listen to the live videocast or replay, please visit the website
www.checkpoint.com/ir
.
Second Quarter 2025 Investor Conference Participation Schedule
Barclays Americas Select Franchise Conference 2025
May 6, 2025, London, UK – Fireside Chat & 1x1’s
J.P. Morgan 53
rd
Annual Technology, Media, and Telecom Conference
May 13-15, 2025, Boston, MA – Fireside Chat & 1x1’s
Oppenheimer 26
th
Annual Israeli Conference
May 18, 2025, Tel Aviv, Israel – Fireside Chat & 1x1’s
TD Cowen 53
rd
Annual TMT Conference
May 28, 2025, NY, NY – Fireside Chat & 1x1’s
Jefferies Software Summit
May 29, 2025, Newport Coast, CA – Fireside Chat &1x1’s
Stifel 2025 Cross Sector 1x1 Conference
June 3, 2025, Boston, MA – 1x1’s
Baird 2025 Global Consumer, Technology & Services Conference
June 4, 2025, SF, CA – 1x1’s
Bank of America Merrill Lynch 2025 Global Technology Conference
June 5, 2025, SF, CA – Fireside Chat & 1x1’s
TD Cowen 2
nd
Annual Corporate Access Day
June 17, 2025, Toronto, Canada – 1x1’s
Members of Check Point's management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Check Point’s conference presentations are expected to be available via webcast on the company's web site. To hear these presentations and access the most updated information please visit the company's web site at
www.checkpoint.com/ir
. The schedule is subject to change.
Follow Check Point via:
Twitter:
http://www.twitter.com/checkpointsw
Facebook:
https://www.facebook.com/checkpointsoftware
Blog:
http://blog.checkpoint.com
YouTube:
http://www.youtube.com/user/CPGlobal
LinkedIn:
https://www.linkedin.com/company/check-point-software-technologies
About Check Point Software Technologies Ltd.
Check Point Software Technologies Ltd. (
http://www.checkpoint.com
) is a leading AI-powered, cloud-delivered cyber security platform provider protecting over 100,000 organizations worldwide. Check Point leverages the power of AI everywhere to enhance cyber security efficiency and accuracy through its Infinity Platform, with industry-leading catch rates enabling proactive threat anticipation and smarter, faster response times. The comprehensive platform includes cloud-delivered technologies consisting of Check Point Harmony to secure the workspace, Check Point CloudGuard to secure the cloud, Check Point Quantum to secure the network, and Check Point Infinity Core Services for collaborative security operations and services.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, expectations regarding our products and solutions, and our participation in investor conferences and other events during the second quarter of 2025. Our expectations and beliefs regarding these matters may not materialize, and actual results or events in the future are subject to risks and uncertainties that could cause actual results or events to differ materially from those projected. These risks include our ability to continue to develop platform capabilities and solutions; customer acceptance and purchase of our existing solutions and new solutions; the market for IT security continuing to develop; competition from other products and services; appointments and departures of our executive officers; and general market, political, economic, and business conditions, including acts of terrorism or war. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the Securities and Exchange Commission on March 17, 2025. The forward-looking statements in this press release are based on information available to Check Point as of the date hereof, and Check Point disclaims any obligation to update any forward-looking statements, except as required by law.
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Check Point uses non-GAAP measures of operating income, net income and earnings per diluted share, which are adjustments from results based on GAAP to exclude, as applicable, stock-based compensation expenses, amortization of intangible assets and acquisition related expenses and the related tax affects. Check Point’s management believes the non-GAAP financial information provided in this release is useful to investors’ understanding and assessment of Check Point’s ongoing core operations and prospects for the future. Historically, Check Point has also publicly presented these supplemental non-GAAP financial measures to assist the investment community to see the company “through the eyes of management,” and thereby enhance understanding of its operating performance. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors.
* Calculated Billings is a measure that we defined as total revenues recognized in accordance with GAAP plus the change in Total Deferred Revenues during the period.
** Remaining Performance Obligation (RPO) is a measure that represents the total value of non-cancellable contracted products and/or services that are yet to be recognized as Revenue as of March 31, 2025.
CHECK POINT SOFTWARE TECHNOLOGIES LTD. CONSOLIDATED STATEMENT OF INCOME | |||||
(Unaudited, in millions, except per share amounts) | |||||
Three Months Ended | |||||
March 31, | |||||
2025 | 2024 | ||||
Revenues: | |||||
Products and licenses | $ | 114.1 | $ | 100.3 | |
Security subscriptions | 290.6 | 263.4 | |||
Total revenues from products and security subscriptions | 404.7 | 363.7 | |||
Software updates, maintenance and services | 233.1 | 235.1 | |||
Total revenues | 637.8 | 598.8 | |||
Operating expenses: | |||||
Cost of products and licenses | 23.0 | 19.9 | |||
Cost of security subscriptions | 21.4 | 16.5 | |||
Total cost of products and security subscriptions | 44.4 | 36.4 | |||
Cost of Software updates and maintenance | 32.1 | 28.7 | |||
Amortization of technology | 7.6 | 5.8 | |||
Total cost of revenues | 84.1 | 70.9 | |||
Research and development | 102.1 | 99.2 | |||
Selling and marketing | 225.4 | 206.2 | |||
General and administrative | 30.7 | 28.6 | |||
Total operating expenses | 442.3 | 404.9 | |||
Operating income | 195.5 | 193.9 | |||
Financial income, net | 27.3 | 22.6 | |||
Income before taxes on income | 222.8 | 216.5 | |||
Taxes on income | 31.9 | 32.6 | |||
Net income | $ | 190.9 | $ | 183.9 | |
Basic earnings per share | $ | 1.77 | $ | 1.64 | |
Number of shares used in computing basic earnings per share | 107.9 | 112.3 | |||
Diluted earnings per share | $ | 1.71 | $ | 1.60 | |
Number of shares used in computing diluted earnings per share | 111.4 | 115.2 | |||
CHECK POINT SOFTWARE TECHNOLOGIES LTD. SELECTED FINANCIAL METRICS | ||||||
(Unaudited, in millions, except per share amounts) | ||||||
Three Months Ended | ||||||
March 31, | ||||||
2025 | 2024 | |||||
Revenues | $ | 637.8 | $ | 598.8 | ||
Non-GAAP operating income | 258.6 | 252.0 | ||||
Non-GAAP net income | 246.2 | 234.5 | ||||
Non-GAAP diluted earnings per share | $ | 2.21 | $ | 2.04 | ||
Number of shares used in computing diluted Non-GAAP earnings per share | 111.4 | 115.2 | ||||
CHECK POINT SOFTWARE TECHNOLOGIES LTD. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION | ||||||||
(Unaudited, in millions, except per share amounts) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2025 | 2024 | |||||||
GAAP operating income | $ | 195.5 | $ | 193.9 | ||||
Stock-based compensation (1) | 41.2 | 41.6 | ||||||
Amortization of intangible assets and acquisition related expenses (2) (*) | 21.9 | 16.5 | ||||||
Non-GAAP operating income | $ | 258.6 | $ | 252.0 | ||||
GAAP net income | $ | 190.9 | $ | 183.9 | ||||
Stock-based compensation (1) | 41.2 | 41.6 | ||||||
Amortization of intangible assets and acquisition related expenses (2) (*) | 21.9 | 16.5 | ||||||
Taxes on the above items (3) | (7.8 | ) | (7.5 | ) | ||||
Non-GAAP net income | $ | 246.2 | $ | 234.5 | ||||
GAAP diluted earnings per share | $ | 1.71 | $ | 1.60 | ||||
Stock-based compensation (1) | 0.37 | 0.36 | ||||||
Amortization of intangible assets and acquisition related expenses (2) (*) | 0.2 | 0.15 | ||||||
Taxes on the above items (3) | (0.07 | ) | (0.07 | ) | ||||
Non-GAAP diluted earnings per share | $ | 2.21 | $ | 2.04 | ||||
Number of shares used in computing diluted Non-GAAP earnings per share | 111.4 | 115.2 | ||||||
(1) Stock-based compensation: | ||||||||
Cost of products and licenses | $ | 0.1 | $ | 0.1 | ||||
Cost of software updates and maintenance | 2.1 | 2.2 | ||||||
Research and development | 14.7 | 14.7 | ||||||
Selling and marketing | 14.6 | 15.9 | ||||||
General and administrative | 9.7 | 8.7 | ||||||
41.2 | 41.6 | |||||||
(2) Amortization of intangible assets and acquisition related expenses (*): | ||||||||
Amortization of technology-cost of revenues | 7.6 | 5.8 | ||||||
Research and development | 1.5 | 1.6 | ||||||
Selling and marketing | 12.8 | 9.1 | ||||||
21.9 | 16.5 | |||||||
(3) Taxes on the above items | (7.8 | ) | (7.5 | ) | ||||
Total, net | $ | 55.3 | $ | 50.6 | ||||
(*) While amortization of acquired intangible assets is excluded from the measures, the revenue of the acquired companies is reflected in the measures and the acquired assets contribute to revenue generation.
CHECK POINT SOFTWARE TECHNOLOGIES LTD. CONDENSED CONSOLIDATED BALANCE SHEET DATA (In millions) ASSETS | |||||||
March 31, | December 31, | ||||||
2025 (Unaudited) | 2024 (Audited) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 450.2 | $ | 506.2 | |||
Marketable securities and short-term deposits | 1,012.0 | 865.7 | |||||
Trade receivables, net | 399.7 | 728.8 | |||||
Prepaid expenses and other current assets | 94.5 | 92.7 | |||||
Total current assets | 1,956.4 | 2,193.4 | |||||
Long-term assets: | |||||||
Marketable securities | 1,469.8 | 1,411.9 | |||||
Property and equipment, net | 83.0 | 80.8 | |||||
Deferred tax asset, net | 80.6 | 74.7 | |||||
Goodwill and other intangible assets, net | 1,877.9 | 1,897.1 | |||||
Other assets | 90.2 | 96.6 | |||||
Total long-term assets | 3,601.5 | 3,561.1 | |||||
Total assets | $ | 5,557.9 | $ | 5,754.5 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||
Current liabilities: | |||||||||
Deferred revenues | $ | 1,389.8 | $ | 1,471.3 | |||||
Trade payables and other accrued liabilities | 394.8 | 472.9 | |||||||
Total current liabilities | 1,784.6 | 1,944.2 | |||||||
Long-term liabilities: | |||||||||
Long-term deferred revenues | 525.6 | 529.0 | |||||||
Income tax accrual | 467.4 | 459.6 | |||||||
Other long-term liabilities | 31.8 | 32.3 | |||||||
Total long-term liabilities | 1,024.8 | 1,020.9 | |||||||
Total liabilities | 2,809.4 | 2,965.1 | |||||||
Shareholders’ equity: | |||||||||
Share capital | 0.8 | 0.8 | |||||||
Additional paid-in capital | 3,125.5 | 3,049.5 | |||||||
Treasury shares at cost | (14,579.6 | ) | (14,264.4 | ) | |||||
Accumulated other comprehensive gain | (2.9 | ) | (10.3 | ) | |||||
Retained earnings | 14,204.7 | 14,013.8 | |||||||
Total shareholders’ equity | 2,748.5 | 2,789.4 | |||||||
Total liabilities and shareholders’ equity | $ | 5,557.9 | $ | 5,754.5 | |||||
Total cash and cash equivalents, marketable securities, and short-term deposits | $ | 2,932.0 | $ | 2,783.8 | |||||
CHECK POINT SOFTWARE TECHNOLOGIES LTD. SELECTED CONSOLIDATED CASH FLOW DATA | |||||||
(Unaudited, in millions) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2025 | 2024 | ||||||
Cash flow from operating activities: | |||||||
Net income | $ | 190.9 | $ | 183.9 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation of property and equipment | 5.2 | 7.3 | |||||
Amortization of intangible assets | 19.2 | 13.5 | |||||
Stock-based compensation | 41.2 | 41.6 | |||||
Realized loss on marketable securities | 0.1 | - | |||||
Decrease in trade and other receivables, net | 329.4 | 265.4 | |||||
Decrease in deferred revenues, trade payables and other accrued liabilities | (142.1 | ) | (140.6 | ) | |||
Deferred income taxes, net | (22.8 | ) | (10.1 | ) | |||
Net cash provided by operating activities | 421.1 | 361.0 | |||||
Cash flow from investing activities: | |||||||
Investment in property and equipment | (7.4 | ) | (6.5 | ) | |||
Net cash used in investing activities | (7.4 | ) | (6.5 | ) | |||
Cash flow from financing activities: | |||||||
Proceeds from issuance of shares upon exercise of options | 46.0 | 45.6 | |||||
Purchase of treasury shares | (325.0 | ) | (325.0 | ) | |||
Payments related to shares withheld for taxes | (1.5 | ) | (1.1 | ) | |||
Net cash used in financing activities | (280.5 | ) | (280.5 | ) | |||
Unrealized gain on marketable securities, net | 15.0 | 1.6 | |||||
Increase in cash and cash equivalents, marketable securities, and short-term deposits | 148.2 | 75.6 | |||||
Cash and cash equivalents, marketable securities, and short-term deposits at the beginning of the period | 2,783.8 | 2,959.7 | |||||
Cash and cash equivalents, marketable securities, and short-term deposits at the end of the period | $ | 2,932.0 | $ | 3,035.3 | |||
INVESTOR CONTACT: Kip E. Meintzer Check Point Software +1.650.628.2040 ir@checkpoint.com | MEDIA CONTACT: Gil Messing Check Point Software +1.650.628.2260 press@checkpoint.com |
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
