Financial Data and Key Metrics Changes - The company reported revenues of $665 million, exceeding the midpoint of projections by $3 million, representing a 6% year-over-year growth [21][22] - Non-GAAP EPS was $2.37, reflecting a 9% growth year-over-year [21] - Calculated billings grew by 4% to $642 million, with RPO increasing by 6% to $2.4 billion [23] - Gross profit increased from $557 million to $585 million, resulting in a gross margin of 88% [24] - Operating cash flow reached $262 million, a 31% growth year-over-year [28] Business Line Data and Key Metrics Changes - Product revenues showed strong growth driven by customer demand for new appliances and higher volumes of product refreshes [22] - Subscription revenues experienced slight deceleration, while support revenues saw a slight decline due to bundling deals [22] - The QuantumForce AI-powered firewalls grew by 12% year-over-year, indicating strong demand for AI-powered inspection [8][22] Market Data and Key Metrics Changes - The Americas and EMEA regions grew by 5%, while APAC experienced a robust 15% growth year-over-year [24] - The company noted a significant back-end loaded quarter, with several large deals pushed into July, positively impacting future billing [23][72] Company Strategy and Development Direction - The company is focused on four guiding principles: securing connectivity, prevention-first ethos, open platform philosophy, and AI-first security [6][18] - The company is investing in SASE and has opened a new R&D center in India, doubling the size of its SASE R&D team [9][10] - The acquisition of Verity enhances the company's capabilities in automated threat intelligence and real-time remediation [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a healthy pipeline for the remainder of the year and reiterated guidance for 2025 [5][31] - The management acknowledged challenges in accelerating growth but emphasized the importance of a strong go-to-market strategy and investments in AI [44][48] - The company expects to see a headwind from foreign exchange impacts but remains optimistic about future performance [27][30] Other Important Information - The company completed the acquisition of Verity for approximately $90 million and purchased land for a new campus in Tel Aviv for $160 million [29][30] - Management indicated that the current foreign exchange rates could increase operating expenses by $50 million to $60 million in 2026 if rates remain stable [27] Q&A Session Summary Question: Impact of Palo Alto's acquisition of CyberArk - Management stated that the impact on the company is minimal as it does not operate in the identity space, focusing instead on connectivity and AI [34][37] Question: Challenges in accelerating growth - Management acknowledged that growth acceleration takes time and emphasized the need for a strong go-to-market approach and cultural changes [42][44] Question: Confidence in long-term growth despite discounting - Management expressed confidence in long-term growth due to strong demand for appliances and increasing ARR from existing customers [53][56] Question: Update on SASE acquisition and differentiation - Management reported solid growth in SASE and emphasized the unique hybrid approach that enhances user experience and controls costs [62][66] Question: Insights on slipped deals - Management noted that slipped deals were more than usual but have already been closed, leading to optimism for Q3 [71][72] Question: Quantum product cycle and customer architecture - Management indicated that there is significant potential for product refreshes and competitive replacements, with a strong funnel for the second half of the year [86][87]

Financial Data and Key Metrics Changes - The company reported revenues of $665 million, exceeding the midpoint of projections by $3 million, representing a 6% year-over-year growth [20][21] - Non-GAAP EPS was $2.37, reflecting a 9% growth year-over-year [20] - Calculated billings grew by 4% to $642 million, while remaining performance obligations (RPO) increased by 6% to $2.4 billion [22] - Gross profit rose from $557 million to $585 million, resulting in a gross margin of 88% [23] - Operating cash flow reached $262 million, marking a 31% year-over-year growth [26] Business Line Data and Key Metrics Changes - Product revenues experienced strong growth driven by customer demand for new appliances and higher volumes of product refreshes [21] - Subscription revenues saw a slight deceleration, while support revenues experienced a slight decline due to bundling deals [21] - The QuantumForce AI-powered firewalls grew by 12% year-over-year, indicating strong demand for AI-powered inspection [7] Market Data and Key Metrics Changes - The Americas and EMEA regions grew by 5%, while APAC experienced a robust 15% growth year-over-year [23] - The company noted a healthy pipeline for the remainder of the year, with strong indicators for Q3 [4][30] Company Strategy and Development Direction - The company is focused on four guiding principles: securing the connectivity fabric, a prevention-first ethos, an open platform philosophy, and AI-first security [5][6] - The company is investing in SASE and has opened a new R&D center in India, doubling the size of its SASE R&D team [8] - The acquisition of Verity enhances the company's capabilities in automated threat intelligence and real-time remediation [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to Q3, with several deals closed in July that were pushed from Q2 [22][72] - The company is optimistic about the third quarter and the remainder of the year, citing a healthy demand for its products [30][72] - Management acknowledged the impact of foreign exchange rates on operating expenses, projecting a potential headwind of $50 million to $60 million in 2026 if current rates persist [25] Other Important Information - The company completed the acquisition of Verity for approximately $90 million and purchased land for a new campus in Tel Aviv for $160 million [27][28] - The company is willing to sacrifice some margin points to achieve faster growth and is actively assessing acquisition opportunities [121][122] Q&A Session Summary Question: Impact of Palo Alto's acquisition of CyberArk - Management indicated that the impact on Check Point is minimal as it does not operate in the identity space and will focus on its strengths in connectivity fabric and AI [33][36] Question: Challenges in accelerating growth - Management acknowledged that growth acceleration takes time and emphasized the need for a strong go-to-market approach and investment in AI [41][44] Question: Confidence in long-term growth despite discounting - Management expressed confidence in long-term growth driven by strong demand for appliances and the increasing annual recurring revenue (ARR) from existing customers [51][55] Question: Update on SASE acquisition and differentiation - Management reported solid growth in SASE and emphasized the unique hybrid architecture that enhances user experience and controls costs [62][66] Question: Insights on slipped deals - Management noted that slipped deals were more prevalent this quarter but were all closed in the first few weeks of Q3, indicating confidence in future performance [69][72] Question: Quantum product cycle and customer spending - Management highlighted ongoing investments in the Quantum product line and the potential for significant growth in the refresh cycle [76][84] Question: Growth in Harmony email and slipped deals - Management confirmed that Harmony email continues to grow at a healthy rate and that slipped deals were not geographically concentrated [88][90] Question: Subscription line growth and discounting impact - Management acknowledged the headwind from discounting but expects growth in subscription revenues driven by email and SASE products [95][100] Question: Importance of identity security in SASE - Management stated that identity security is part of the overall strategy but does not significantly impact the SASE solution [103][106] Question: Monetization of AI-powered prevention - Management outlined plans for monetizing AI capabilities through standalone products and integration into existing offerings [110][116] Question: Margin sacrifice for growth - Management reiterated that sacrificing some margin points is part of the strategy to achieve sustainable growth through investments and acquisitions [119][122] Question: Go-to-market changes and their impact - Management discussed leadership changes and cultural shifts aimed at enhancing the go-to-market strategy [126][129]

2025 Second Quarter Financial Results July 30 , 2025 Nadav Zafrir CEO Roei Golan CFO Kip E. Meintzer Global Head of IR ©2025 Check Point Software Technologies Ltd. 1 Forward Looking Statement This presentation may contain certain forward-looking statements. These forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this report include, but are not limited to: Our expectations regarding our products and solutions, expecta ...

Core Viewpoint - Check Point Software (CHKP) reported quarterly earnings of $2.37 per share, exceeding the Zacks Consensus Estimate of $2.36 per share, and showing an increase from $2.17 per share a year ago, indicating a positive earnings surprise of +0.42% [1][2] Financial Performance - The company achieved revenues of $665.2 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.66% and reflecting a year-over-year increase from $627.4 million [2] - Over the last four quarters, Check Point has exceeded consensus EPS estimates three times and has also topped consensus revenue estimates three times [2] Stock Performance - Check Point shares have increased approximately 16.9% since the beginning of the year, outperforming the S&P 500's gain of 8.3% [3] Future Outlook - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $2.44 for the coming quarter and $9.91 for the current fiscal year, alongside expected revenues of $670.82 million and $2.71 billion respectively [7] - The Zacks Industry Rank places the Security industry in the top 13% of over 250 Zacks industries, suggesting a favorable outlook for companies within this sector [8]

Revenue Performance - Total revenues for Q2 2025 were $665 million, representing a 6% increase year over year[14] - Products & licenses revenues reached $132 million, a 12% increase year over year[14] - Security subscriptions revenues were $298 million, reflecting a 10% increase year over year[14] - Calculated billings amounted to $642 million, a 4% increase year over year[14] - Remaining performance obligation (RPO) stood at $2.4 billion, a 6% increase year over year[14] Income and Profitability - GAAP operating income was $204 million, accounting for 31% of total revenues[14] - Non-GAAP operating income reached $271 million, representing 41% of total revenues[14] - GAAP operating income for Q2 2025 was $203.6 million, a decrease of 3.4% from $209.3 million in Q2 2024[27] - Non-GAAP operating income increased to $271.1 million in Q2 2025, compared to $265.1 million in Q2 2024, reflecting a growth of 1.9%[27] - GAAP net income for the first half of 2025 reached $393.7 million, up from $381.3 million in the same period of 2024, representing a 3.1% increase[27] - Non-GAAP net income for the first half of 2025 was $507.6 million, compared to $480.5 million in the first half of 2024, indicating a growth of 5.6%[27] - Diluted Non-GAAP earnings per share rose to $2.37 in Q2 2025, up from $2.17 in Q2 2024, marking an increase of 9.2%[27] Cash Flow and Investments - Cash flow from operations in Q2 2025 was $262 million, compared to $200 million in Q2 2024[11] - Cash flow from operating activities for the first half of 2025 was $683.2 million, an increase from $560.9 million in the first half of 2024[33] - The company reported a net cash used in investing activities of $97.2 million for the first half of 2025, compared to $12.9 million in the same period of 2024[33] Shareholder Returns - The company repurchased approximately 1.5 million shares at a total cost of approximately $325 million during Q2 2025[10] Balance Sheet - Cash balances as of June 30, 2025, were $2,913 million, down from $3,058 million a year earlier, primarily due to acquisitions[9] - Total current assets decreased to $2,097.0 million as of June 30, 2025, down from $2,193.4 million at the end of 2024[29] - Total liabilities decreased to $2,851.9 million as of June 30, 2025, compared to $2,965.1 million at the end of 2024[31] - Total cash and cash equivalents, marketable securities, and short-term deposits at the end of Q2 2025 were $2,913.4 million, up from $2,783.8 million at the end of 2024[31]

Core Insights - Check Point Software Technologies Ltd. reported solid second-quarter results for 2025, driven by growth in emerging technologies such as Email, SASE, and Enterprise Risk Management, with Quantum Force appliances showing double-digit growth [3][11] - The company has a healthy pipeline heading into the second half of the year, with strong indicators observed in July [3] Financial Highlights - Total revenues for the second quarter of 2025 reached $665 million, marking a 6% increase year over year [11] - Product and licenses revenues were $132 million, a 12% increase year over year [11] - Security subscriptions revenues amounted to $298 million, reflecting a 10% increase year over year [11] - Calculated billings were $642 million, a 4% increase year over year [11] - Remaining Performance Obligation (RPO) stood at $2.4 billion, a 6% increase year over year [11] - GAAP operating income was $204 million, representing 31% of total revenues, while non-GAAP operating income was $271 million, representing 41% of total revenues [11] - GAAP EPS was $1.84, a 6% increase year over year, and non-GAAP EPS was $2.37, a 9% increase year over year [11] Cash Flow and Balance Sheet - Cash flow from operations in the second quarter of 2025 was $262 million, which included a $50 million benefit from currency hedging transactions [6] - Cash balances, marketable securities, and short-term deposits totaled $2,913 million as of June 30, 2025, down from $3,058 million a year earlier, primarily due to cash used for acquisitions [4][30] - The company repurchased approximately 1.5 million shares at a total cost of approximately $325 million during the second quarter [5] Strategic Developments - The acquisition of Veriti was highlighted as a strategic move to strengthen the Infinity platform's open-garden architecture [3] - The company continues to advance its strategic roadmap, indicating a focus on innovation and customer trust [3]

With that in mind, let's delve into the average projections of some Check Point metrics that are commonly tracked and projected by analysts on Wall Street. The consensus among analysts is that 'Revenues- Total revenues from products and security subscriptions' will reach $423.58 million. The estimate suggests a change of +8.7% year over year. It is projected by analysts that the 'Revenues- Software updates and maintenance' will reach $237.06 million. The estimate points to a change of -0.2% from the year-ag ...

Core Insights - Check Point Software Technologies has appointed Jonathan Zanger as Chief Technology Officer to lead its global cyber security and AI strategy [1][3] - Zanger brings over 15 years of experience in cyber security and AI, previously serving as CTO at Trigo [2][4] - The company aims to enhance its AI capabilities across its Infinity Platform, focusing on a prevention-first approach to cyber security [3][4] Company Strategy - The appointment of Zanger is part of Check Point's strategy to embed AI across all layers of its architecture, enhancing its ability to counter evolving cyber threats [3][4] - Check Point has been recognized as a Leader in the Forrester Wave™: Zero Trust Platform, highlighting its commitment to AI-driven network security automation [3] - The company is expanding its AI investments and talent base to reinforce its leadership in intelligent cyber defense [4] Industry Position - Check Point is recognized as one of the top-performing AI-powered security platforms, reinforcing its leadership in the cyber security industry [3] - The company protects over 100,000 organizations globally, utilizing AI-powered solutions to deliver industry-leading security efficacy [5] - Check Point's Infinity Platform integrates management of on-premises, cloud, and workspace environments, providing flexibility and scale for enterprises [5]

Core Insights - Check Point Software Technologies Ltd. released its 2024 Environmental, Social, and Governance (ESG) Report titled "Sustainability in Security," highlighting the company's commitment to a secure and sustainable digital future [1][2] Environmental Progress and Innovation - The company achieved significant environmental milestones in 2024, including the use of 100% renewable energy at its International Headquarters and Tel Aviv offices [5] - Introduction of new power-efficient security appliances aimed at reducing power consumption while enhancing protection [5] Social Impact - Check Point is making progress towards its goal of training 1 million people in cyber security by 2028, addressing the global talent shortage [5] - Ongoing investments in cyber security education and workforce development are part of the company's social responsibility initiatives [5] Governance - Strong governance is central to Check Point's ESG approach, with a focus on board independence, comprehensive compliance training, and responsible AI practices [5] - The company emphasizes data privacy, supply chain ethics, and transparent business operations as part of its governance framework [5] Vision for the Future - The 2024 ESG report articulates that security, sustainability, and ethical leadership are interconnected imperatives for future success [3] - Organizations that integrate robust cyber security with responsible business practices are positioned to lead in an accelerating innovation landscape [3]

Core Insights - Check Point Software Technologies has been recognized as a Leader in The Forrester Wave™: Zero Trust Platforms, Q3 2025, highlighting its unified, prevention-first security platform that encompasses network, cloud, and endpoint controls across hybrid environments [1][5] Group 1: Recognition and Evaluation - Check Point received the highest possible scores (5 out of 5) in four critical criteria: centralized management and usability, least-privileged-access enforcement, segmentation and control, and deployment [2] - The company also achieved 5/5 scores in the roadmap and supporting services and offerings criteria, reinforcing its strong vision and customer-centric approach [2] Group 2: Strategic Vision - The recognition by Forrester affirms Check Point's leadership in delivering comprehensive Zero Trust security, which is intuitive and designed for an AI-driven, hyperconnected world [3] - Check Point's AI-powered Infinity Platform is designed to secure users, assets, and data through centralized management, intelligent policy enforcement, and flexible deployment across various environments [3] Group 3: Market Positioning - Forrester noted that organizations seeking a centralized, easy-to-manage, and holistic network security platform should consider Check Point [5] - This leadership position reinforces Check Point's commitment to a prevention-first strategy, aiding enterprises in proactively securing their infrastructure against modern threats while accelerating Zero Trust adoption [5]