Secureworks Announces Third Quarter Fiscal 2025 Results

Core Insights - Secureworks reported a 6% year-over-year revenue growth for its Taegis platform, reaching $71.4 million in Q3 fiscal 2025 [2][4] - The total annual recurring revenue (ARR) increased by 4% year-over-year to $288.8 million [2] - The company is committed to enhancing its cybersecurity offerings amid a 30% rise in active ransomware groups [3] Financial Highlights - Taegis revenue for Q3 was $71.4 million, up from $67.3 million in Q3 fiscal 2024 [4] - Total revenue for Q3 was $82.7 million, down from $89.4 million in Q3 fiscal 2024, attributed to the strategic wind-down of the legacy Other MSS business [4] - GAAP gross profit for Taegis was $51.5 million, compared to $47.4 million in the same quarter last year [4] - Non-GAAP Taegis gross profit was $53.5 million, up from $48.9 million year-over-year [4] - GAAP net loss for the quarter was $27.5 million, or $0.31 per share, compared to a loss of $14.4 million, or $0.17 per share, in the prior year [4] - Adjusted EBITDA for the quarter was $1.4 million, compared to an adjusted EBITDA loss of $1.2 million in Q3 fiscal 2024 [4] Business and Operational Highlights - The company hosted its 9th annual Global Threat Intelligence Summit and published the Secureworks State of the Threat Report for 2024 [5] - New products, Taegis ManagedXDR Plus and Taegis ManagedXDR Elite, were launched in Japan to enhance global cybersecurity maturity [5] - Secureworks Taegis NDR was recognized as the Best Network Security Solution in the 2024 Tech Ascension Awards [5] Recent Developments - On October 21, 2024, Secureworks announced a definitive agreement for Sophos to acquire the company, pending customary closing conditions [6] - As a result of the proposed transaction, Secureworks is suspending financial guidance for Q4 and fiscal year 2025 [7]