Financial Data and Key Metrics Changes - In Q4 2025, the company reported revenues of $745 million, reflecting a 6% year-over-year growth, driven by an 11% increase in subscription revenues [13][14] - For the full year 2025, total revenues reached $2.725 billion, exceeding projections by $15 million, with a non-GAAP EPS of $11.89 per diluted share, which also surpassed guidance [14][19] - The gross profit for Q4 increased from $623 million to $660 million, resulting in a gross margin of 89% [18] - Non-GAAP net income rose by 21%, primarily due to a one-time tax benefit, while GAAP net income increased by 18% year-over-year [19] Business Line Data and Key Metrics Changes - The product revenue growth was moderated due to a subscription price increase, which shifted a portion of bundled annual deals towards subscription, resulting in a $6 million headwind in Q4 [15] - Emerging products, including Email Security, SASE, and ERM, saw over 40% growth in ARR [17] - The calculated billings totaled $1.039 billion, reflecting an 8% year-over-year growth, while recurring calculated billing grew by 10% [16] Market Data and Key Metrics Changes - Revenue distribution showed that 48% came from EMEA, growing by 5% year-over-year, while 40% came from the Americas with a 6% growth, and 12% from Asia Pacific, which grew by 9% [17] - For the full year 2025, 46% of revenues came from EMEA, 42% from the Americas, and 12% from Asia Pacific, with the latter growing by 11% year-over-year [17] Company Strategy and Development Direction - The company is focusing on leading the AI era of cybersecurity, with a clear mission to secure customers' AI transformation through four strategic pillars: Hybrid Mesh Network Security, Workspace Security, Exposure Management, and AI Security [5][11] - The company is enhancing its financial flexibility through a $2 billion zero coupon convertible notes offering, allowing for investments in high-priority areas [5][22] - Recent acquisitions, including Cyclops and Lakera, are aimed at strengthening capabilities in exposure management and AI security, positioning the company for long-term growth [11][10] Management's Comments on Operating Environment and Future Outlook - Management emphasized the need for organizations to revalidate their security foundations due to the evolving threat landscape driven by AI [5][39] - The company expects to see benefits from subscription revenue growth in 2026, with guidance for total revenues between $2.83 billion and $2.95 billion, reflecting a 4%-8% growth [27] - Management acknowledged potential headwinds from memory price increases impacting gross margins in 2026, estimating a 1-point reduction for the full year [20][23] Other Important Information - The company completed a $2 billion convertible notes offering in December 2025, which is expected to enhance financial income in 2026 [22][24] - The cash balance at the end of Q4 was $4.3 billion, with strong operating cash flow of $310 million, representing 42% of revenues in Q4 [25][24] Q&A Session Summary Question: Can you compare AI security to cloud security? - Management noted that AI transformation is more foundational and faster than cloud security, emphasizing the need for proactive prevention as attackers adapt quickly [35][39] Question: How should we think about ASP hikes? - Management indicated that ASP increases typically take effect in the following quarter, with expectations for significant impacts from Q2 2026 [41][43] Question: What is the outlook for product revenues in 2026? - Management provided a cautious outlook for product revenues, expecting flat to low single-digit growth due to market conditions and memory shortages [49][48] Question: How do acquisitions impact guidance for 2026? - Acquisitions are expected to contribute minimally to revenue growth, with a slight impact on gross margins due to associated costs [80][86] Question: What is the significance of exposure management in customer demand? - Management highlighted increasing demand for situational awareness and proactive remediation, indicating that exposure management is becoming a core pillar of their strategy [92][94]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported revenues of $745 million, reflecting a 6% growth year-over-year, driven by an 11% increase in subscription revenues [13][14] - The full year revenues reached $2.725 billion, exceeding projections by $15 million, with a non-GAAP EPS of $11.89 per diluted share, which also exceeded guidance [14][19] - The gross profit for Q4 increased from $623 million to $660 million, resulting in a gross margin of 89% [18] - Non-GAAP net income increased by 21%, primarily due to a one-time tax benefit, while GAAP net income reached $305 million, an 18% increase year-over-year [19][22] Business Line Data and Key Metrics Changes - The product revenue growth was moderated due to a subscription price increase, which shifted a larger portion of bundled annual deals towards subscription, resulting in a $6 million headwind in product revenues for Q4 [15] - Emerging products, including Email Security, SASE, and ERM, exceeded 40% growth in ARR [17] - The calculated billings totaled $1.039 billion, reflecting an 8% year-over-year growth, while recurring calculated billing grew by 10% year-over-year [16] Market Data and Key Metrics Changes - Revenue distribution showed that 48% came from EMEA, growing by 5% year-over-year, while 40% came from America with a 6% growth, and 12% from Asia Pacific, which grew by 9% [17] - For the full year, 46% of revenues came from EMEA, 42% from America, and 12% from Asia Pacific, with the latter growing by 11% year-over-year [18] Company Strategy and Development Direction - The company is focusing on leading the AI era of cybersecurity, with a clear mission to secure customers' AI transformation through four strategic pillars: Hybrid Mesh Network Security, Workspace Security, Exposure Management, and AI Security [5][11] - The company is enhancing its financial flexibility through a $2 billion zero coupon convertible notes offering, allowing for investments in high-priority areas [5][22] - Recent acquisitions, including Cyclops and Lakera, are aimed at strengthening capabilities in exposure management and AI security, which are seen as critical for future growth [9][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its strategy and emphasized the importance of revalidating security in light of evolving threats [39][71] - The anticipated impact of memory price increases on gross margin is estimated to be approximately 1 point for the full year 2026, with most effects expected in the second half of the year [20] - The company expects revenues for Q1 2026 to be between $655 million and $685 million, with full-year revenues projected between $2.83 billion and $2.95 billion, indicating a growth rate of 4% to 8% [27] Other Important Information - The company completed a $2 billion convertible notes offering in December 2025, which is expected to increase financial income in 2026 [22] - The cash balance at the end of Q4 was $4.3 billion, with strong operating cash flow of $310 million, representing 42% of revenues in Q4 [25][24] Q&A Session Summary Question: Can you compare AI security to cloud security? - Management noted that AI transformation is more foundational and faster than cloud security, emphasizing the need for organizations to revalidate their security [35][39] Question: How should we think about ASP hikes? - Management indicated that ASP increases typically take effect in the following quarter, with expectations for significant impacts from Q2 2026 [41][43] Question: What is the outlook for product growth in 2026? - Management acknowledged a more prudent approach to product growth due to market conditions, with expectations for flat to low single-digit growth [49] Question: What is the expected impact of acquisitions on guidance? - Acquisitions are expected to have minimal impact on top-line growth, contributing only a few million dollars [86] Question: How is the company addressing exposure management demand? - Management highlighted increasing customer demand for situational awareness and the importance of proactive prevention in exposure management [92][94]

Financial Data and Key Metrics Changes - In Q4 2025, revenues reached $745 million, reflecting a 6% growth year-over-year, driven by an 11% increase in subscription revenues [13][14] - Non-GAAP EPS was $3.40 per diluted share, exceeding guidance, while full-year revenues totaled $2.725 billion, also above projections [14][19] - Deferred revenues grew by 9% to $2.18 billion, indicating strong future revenue visibility [14][16] Business Line Data and Key Metrics Changes - Product revenue growth was moderated due to a subscription price increase, impacting product revenues by approximately $6 million in Q4 [15] - Emerging product portfolio, including Email Security, SASE, and ERM, saw over 40% growth in ARR [17] - The company expects product revenue growth to be flat to low single digits in 2026, influenced by market conditions and memory price increases [49][80] Market Data and Key Metrics Changes - Revenue distribution showed 48% from EMEA (5% growth), 40% from America (6% growth), and 12% from Asia Pacific (9% growth) in Q4 [17] - For the full year, EMEA contributed 46% of revenues (5% growth), America 42% (7% growth), and Asia Pacific 12% (11% growth) [18] Company Strategy and Development Direction - The company is focusing on four strategic pillars: Hybrid Mesh Network Security, Workspace Security, Exposure Management, and AI Security, to address the evolving threat landscape [4][11] - Recent acquisitions, including Cyclops and Lakera, are aimed at enhancing capabilities in exposure management and AI security [9][11] - The company aims to lead the AI era of cybersecurity, emphasizing proactive prevention and the integration of AI into security solutions [4][5] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need for organizations to revalidate their security foundations due to changing attack surfaces driven by AI adoption [4][39] - The company anticipates a challenging operating environment in 2026 due to memory price increases, which may impact gross margins [20][24] - The outlook for 2026 includes revenue guidance of $2.83 billion to $2.95 billion, with a focus on accelerating subscription revenue growth [28] Other Important Information - The company completed a $2 billion zero coupon convertible notes offering to enhance financial flexibility [4][23] - Operating cash flow for Q4 was $310 million, representing 42% of revenues, with a strong annual growth of 17% [26] - The company expects a tax rate of 16%-17% for 2026, influenced by new tax regulations and R&D incentive programs [24] Q&A Session Summary Question: Comparison of AI security and cloud security - Management noted that AI transformation is more foundational than cloud migration, with attackers adapting faster than defenders [36][38] Question: ASP hikes and their timing - ASP increases are expected to show effects primarily in Q2 2026, following prior bookings [42][44] Question: Product demand and guidance for 2026 - Management acknowledged a more prudent approach to product revenue guidance due to market conditions, with expectations for hardware demand to improve in the second half of 2026 [49][80] Question: Financial flexibility and acquisition strategy - The company is focused on disciplined acquisitions that enhance its position in each strategic pillar, avoiding a supermarket approach [76][77] Question: Customer demand for exposure management - There is increasing demand for situational awareness and proactive remediation in exposure management, which is becoming a core pillar of the company's strategy [92][94]

Core Insights - Cisco Systems (CSCO) shares fell 7% in after-hours trading despite beating analysts' expectations for Q2 fiscal 2026, primarily due to revenue guidance that did not meet Wall Street's forecast of $62.1 billion [1][11] Financial Performance - Cisco's earnings exceeded the Zacks Consensus Estimate by 2%, with revenues surpassing expectations by 1.5%, showing a double-digit year-over-year revenue increase and high single-digit growth in earnings [7] - Total product orders increased by 18% year-over-year, with networking product orders growing over 20%, marking the sixth consecutive quarter of double-digit growth in this category [8] - The company reported $2.1 billion in AI infrastructure orders from hyperscalers in Q2, indicating significant growth acceleration [8] Future Outlook - Cisco anticipates revenues between $61.2 billion and $61.7 billion for fiscal 2026, with AI revenues from hyperscalers expected to exceed $3 billion [11][12] - For Q3 fiscal 2026, Cisco expects revenues in the range of $15.4 billion to $15.6 billion, slightly above the consensus estimate of $15.18 billion [12] Strategic Initiatives - Following the acquisition of Splunk, Cisco has seen an increase in cloud subscriptions and a decrease in on-premise deals, with a goal of reaching 1,000 new customers by the end of fiscal 2026 [9] - Cisco aims to deliver up to 1 gigawatt of AI infrastructure by 2030 in collaboration with AMD and HUMAIN, starting with a 100-megawatt project in Saudi Arabia [13] Investment Opportunities - Investors may consider Exchange-Traded Funds (ETFs) to gain exposure to Cisco while mitigating risks associated with single-stock volatility [5][6] - Notable ETFs include: - iShares U.S. Telecommunications ETF (IYZ) with Cisco holding 20.71% [14] - First Trust NASDAQ Cybersecurity ETF (CIBR) with Cisco holding 9.51% [15] - Amplify Cybersecurity ETF (HACK) with Cisco holding 7.27% [17] - First Trust Dow Jones Internet ETF (FDN) with Cisco holding 7.90% [18] - Pacer Data and Digital Revolution ETF (TRFK) with Cisco holding 7.34% [19]

Company Leadership Changes - Andrew McKenna has been promoted to the roles of Chief Operating Officer and Chief Financial Officer at ZeroFox, overseeing finance, operations, and corporate strategy to drive execution and long-term growth [1][2] - McKenna joined ZeroFox in 2024 and has significantly contributed to the company's financial stability and growth trajectory, including the successful divestment of IDX [2] Company Strategy and Innovation - ZeroFox emphasizes the need for alignment between strategy and execution to achieve growth, with McKenna expressing eagerness to enhance core priorities and empower teams [3] - The company is recognized for its relentless innovation and sustained growth in the external cybersecurity landscape, positioning itself as a leader in protecting organizations from threats beyond traditional perimeters [3] Competitive Advantage - ZeroFox differentiates itself through a combination of AI-driven technology, comprehensive threat intelligence, and expert-led response capabilities, addressing risks such as phishing and brand abuse [4] - The platform is designed for mature enterprises seeking a best-in-class security posture, providing rapid exposure and remediation of external threats while fostering long-term resilience [4] Company Overview - ZeroFox is a trusted solution for defending organizations against daily cyber threats, unifying various cybersecurity services into one platform [5] - The company has over a decade of SaaS expertise and serves thousands of customers across multiple sectors, including finance, media, and government, delivering actionable intelligence to reduce risk and enhance response [5]

Core Insights - Tenable Holdings, Inc. has been recognized as a leader in AI-powered exposure assessment by Gartner in its 2025 AI Vendor Race, highlighting its strong position in the cybersecurity market [1][2]. Company Overview - Tenable is identified as an exposure management company that focuses on closing cybersecurity gaps that can undermine business value, reputation, and trust [6]. - The company serves over 40,000 customers globally, providing a platform that unifies security visibility, insight, and action across various attack surfaces [6]. AI and Exposure Management - Tenable's recognition is attributed to its effective use of AI in enhancing vulnerability assessment, asset discovery, and attack surface analysis [2]. - The company employs AI to aggregate and normalize data related to assets, exposures, and threats, which aids in proactive defense strategies [2][3]. - Tenable One, the company's exposure management platform, integrates discovery, protection, and governance for AI across enterprises, including SaaS platforms and cloud services [3]. Strategic Positioning - Gartner notes that Tenable is positioning its platform as a comprehensive source for all exposure data, which will improve risk assessment and remediation workflows [3]. - The company emphasizes the importance of mastering both defensive AI capabilities and securing AI from threats, positioning itself as a leader in both areas [3].

Core Insights - CrowdStrike has been recognized as the Customers' Choice in the 2026 Gartner Peer Insights™ 'Voice of the Customer' for User Authentication report [1] - The company received the most 5-star reviews and the highest product capability rating of 4.7, tied with other vendors [1] - CrowdStrike achieved a 96% Willingness to Recommend score based on 179 overall responses as of January 2026 [1] Company Performance - CrowdStrike is noted for having the most verified reviews among vendors in the report [1] - The platform is highlighted as the only one that secures user authentication effectively [1]

Group 1: Company Updates - Palo Alto Networks has completed its acquisition of CyberArk for $45 per share in cash and 2.2005 shares of Palo Alto stock [1] - Millrose Properties is set to release its fourth-quarter financial results on February 26 [2] - Visa reported quarterly earnings of $3.17 per share, exceeding the consensus estimate of $3.14, with quarterly revenue of $10.9 billion, surpassing the Street estimate of $10.69 billion [3] - Apple reported fiscal first-quarter revenue of $143.76 billion, beating analyst estimates of $138.42 billion, and earnings of $2.84 per share, exceeding estimates of $2.66 per share [4] Group 2: Stock Performance - Palo Alto shares fell 0.1% to close at $165.30 [5] - Millrose Properties shares gained 1.1% to close at $31.84 [5] - Visa shares gained 0.3% to settle at $329.24 [5] - Apple shares gained 0.7% to settle at $275.50 [5]

Core Insights - Tenable is a cybersecurity company focused on exposure management, providing tools to help enterprises patch vulnerabilities before exploitation [1] - With a market capitalization of $2.5 billion, Tenable is significantly smaller than competitors like CrowdStrike and Palo Alto Networks, which are valued around $100 billion [2] - Analysts are optimistic about Tenable, with a consensus rating of "buy" and a price target indicating potential upside [3] Company Overview - Tenable owns Nessus, a widely adopted vulnerability management solution that scans for vulnerabilities in operating systems, networks, and devices [4] - In 2022, Tenable launched Tenable One, a comprehensive exposure management solution that integrates AI to enhance vulnerability identification [5] Financial Performance - In Q4 2025, Tenable One contributed to 46% of new business, indicating strong demand for AI-powered cybersecurity solutions [6] - Tenable achieved a record revenue of $999.4 million in 2025, an 11% increase from the previous year, surpassing management's guidance [7]

Core Viewpoint - authID has launched a biometric security solution aligned with the Personal Identity Verification (PIV) framework, aimed at enhancing the security of critical utility infrastructures such as electrical, water, and gas systems [1][10]. Industry Context - Energy companies and utilities are increasingly targeted by state-sponsored and cybercriminal attacks, making the security of these infrastructures a matter of national security [2]. - There has been a significant rise in cyberattacks on US utilities, with 1,162 documented incidents from January to August 2024, representing a 70% increase compared to the previous year [3]. - The FBI reported a serious breach in 2025 where Chinese hackers gained control over a water utility's chemical inputs, highlighting the vulnerabilities in utility systems [4]. - Experts express concerns that many existing security measures are outdated and insufficient against sophisticated cyber threats, including those powered by AI [5]. Technological Advancements - The adoption of AI in utilities is expected to grow, with Gartner predicting that by 2027, 40% of utilities will implement AI-driven operators, a number projected to more than double by 2028 [6]. - The PIV framework provides a high level of identity security, requiring definitive identity verification before granting access, which is crucial for safeguarding critical infrastructure [8][9]. authID's Solutions - authID's biometric platform offers a significant upgrade to existing security measures by providing military-grade authentication for energy infrastructure, eliminating the need for passwords and physical tokens [10]. - The platform includes three additional solutions: IDX for identity management, PrivacyKey for user privacy and compliance, and authID Mandate for controlling AI agent access [12]. - The company claims its biometric identity verification solution can effectively prevent unauthorized access and protect against various cyber threats, including deepfakes and impersonation [11]. Market Position - authID aims to lead in securing the energy sector, which is currently experiencing aggressive investment, with the top US energy suppliers being natural gas (40%), nuclear (18%), coal (17%), and renewables (24%) [13].