Check Point Software Technologies .(CHKP) - 2025 Q4 - Annual Report

Revenue and Income - Total revenues for the company in 2025 were $2,725 million, representing a 6% increase from $2,565 million in 2024[266] - Security subscription revenues increased by $115 million, or 10%, from $1,104 million in 2024 to $1,219 million in 2025[267] - Net income increased by $211 million to $1,057 million in 2025 compared to $846 million in 2024[285] Expenses - Research and development expenses rose to $457 million in 2025, accounting for 17% of revenues, up from 15% in 2024[272] - Selling and marketing expenses were $947 million in 2025, representing 35% of revenues, compared to 34% in 2024[275] - General and administrative expenses increased to $129 million in 2025, which was 5% of revenues, up from 4% in 2024[277] - Total cost of revenues was $362 million in 2025, compared to $319 million in 2024[268] - Cost of security subscriptions increased to $91 million in 2025 from $73 million in 2024[270] - Amortization of technology was $33 million in 2025, up from $25 million in 2024, attributed to acquisitions[271] Operating Performance - Operating income for 2025 was $831 million, with an operating margin of 30%, down from 34% in 2024[264][279] Cash Flow and Investments - Total cash and cash equivalents, short-term investments, and long-term interest-bearing investments reached $4,342 million as of December 31, 2025, compared to $2,784 million in 2024[286] - Net cash from operations was $1,199 million in 2025, an increase from $1,052 million in 2024, influenced by a $51 million benefit from balance sheet hedging[288] - Net cash used in investing activities rose to $680 million in 2025 from $24 million in 2024, with $273 million allocated for acquisitions[289] - Net cash provided by financing activities was $752 million in 2025, primarily due to the issuance of $1,780 million in convertible senior notes[290] Tax and Financial Income - The effective tax rate was (12)% in 2025, compared to 13% in 2024, resulting in a tax benefit of $(112) million in 2025[283] - Net financial income was $114 million in 2025, up from $96 million in 2024, primarily due to higher reinvestment yield and additional interest income[281] Shareholder Activities - The company repurchased ordinary shares amounting to $1,400 million in 2025, up from $1,300 million in 2024[290] - The company completed a $2,000 million Convertible Senior Note issuance in December 2025, contributing to additional interest income[287] Sales Concentration - The company derived approximately 57% of its sales from its ten largest channel partners in 2025[249]