Nepsis Liquidates $14 Million CyberArk Software (NASDAQ: CYBR) Position: Did the Stock Soar Too High, Too Fast?

Core Insights - Nepsis Inc. has fully exited its position in CyberArk Software, selling 34,236 shares for an estimated $13.93 million in Q3 2025, reducing its exposure to zero [1][2][9] Company Overview - CyberArk Software has a market capitalization of $25.59 billion and reported a revenue of $1.20 billion for the trailing twelve months (TTM) [4] - The company has a net income of -$165.37 million for the TTM [4] - As of October 23, 2025, CyberArk's share price was $507.04, reflecting a 75.5% increase over the past year [3][4] Business Model - CyberArk specializes in privileged access management, identity and access management, endpoint security, and cloud entitlement solutions, focusing on software-based and SaaS offerings [5][6] - The company serves a diverse customer base across various sectors, including financial services, healthcare, technology, and government [5][6] Financial Performance - CyberArk's share price has tripled over the last two years, currently trading at 21 times sales, indicating a high valuation [9][10] - The management aims to grow free cash flow to $600 million by 2028, which would imply a valuation of 43 times future free cash flow [10] Market Context - The cybersecurity sector is experiencing significant demand, with 93% of businesses reporting security-related breaches in the past year, highlighting the essential nature of CyberArk's offerings [11] - CyberArk has achieved a 44% annual growth rate in its annual recurring revenue over the last five years, suggesting potential for continued growth [12]