In an era where digital threats loom large, CyberArk Software Ltd. is not just securing data; it’s redefining how organizations protect their most critical assets. As a frontrunner in the Software – Infrastructure sector, CyberArk offers cutting-edge solutions like the Privileged Access Manager and Cloud Entitlements Manager, setting the standard for innovation and quality. With a reputation for excellence, I now turn my attention to whether CyberArk’s robust fundamentals can sustain its current market valuation and growth trajectory.
Table of contents
Company Description
CyberArk Software Ltd. is a prominent player in the software infrastructure sector, specializing in security solutions designed to protect against cyber threats, particularly those targeting privileged access. Founded in 1999 and headquartered in Petah Tikva, Israel, the company operates across major markets in the U.S., Europe, the Middle East, and Africa. CyberArk’s product offerings include Privileged Access Manager, Endpoint Privilege Manager, and Cloud Entitlements Manager, among others, which cater to various industries such as finance, healthcare, and telecommunications. With a strong focus on identity and access management, CyberArk is strategically positioned to shape the future of cybersecurity through innovation and comprehensive security frameworks, addressing the growing demand for robust protection against sophisticated attacks.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of CyberArk Software Ltd. covering its income statement, financial ratios, and dividend payout policy.
Income Statement
The following table presents the Income Statement for CyberArk Software Ltd. (CYBR) over the last five fiscal years, highlighting key financial metrics that are essential for analyzing the company’s performance.
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 464M | 503M | 592M | 752M | 1B |
| Cost of Revenue | 83M | 93M | 126M | 156M | 208M |
| Operating Expenses | 376M | 488M | 618M | 712M | 865M |
| Gross Profit | 382M | 409M | 466M | 596M | 792M |
| EBITDA | 32M | -59M | -118M | -44M | 29M |
| EBIT | 17M | -73M | -134M | -61M | -13M |
| Interest Expense | 17M | 18M | 3M | 1M | 4M |
| Net Income | -6M | -84M | -130M | -67M | -93M |
| EPS | -0.15 | -2.12 | -3.21 | -1.60 | -2.12 |
| Filing Date | 2021-03-11 | 2022-03-10 | 2023-03-02 | 2024-03-13 | 2025-03-12 |
Interpretation of Income Statement
Over the last five years, CyberArk has shown a significant upward trend in revenue, increasing from 464M in 2020 to 1B in 2024, indicating strong demand for its services. However, net income remains negative, reflecting ongoing challenges with operating expenses and profitability. Notably, operating expenses have escalated, leading to a negative EBITDA in the previous years, though a slight recovery to a positive EBITDA in 2024 suggests improved operational efficiency. In 2024, the company still reported a net loss of 93M, signaling that while growth is evident, careful management of expenses is crucial for future profitability.
Financial Ratios
The following table summarizes the financial ratios for CyberArk Software Ltd. (CYBR) over the years.
| Metrics | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | -1.24% | -16.69% | -22.03% | -8.84% | -9.34% |
| ROE | -0.81% | -11.55% | -19.22% | -8.39% | -3.94% |
| ROIC | 6.72% | -5.29% | -10.55% | -8.28% | -16.70% |
| P/E | -1084.06 | -81.84 | -40.36 | -137.21 | -157.49 |
| P/B | 8.83 | 9.46 | 7.76 | 11.52 | 6.21 |
| Current Ratio | 4.30 | 3.12 | 2.43 | 1.08 | 1.48 |
| Quick Ratio | 4.30 | 3.12 | 2.43 | 1.08 | 1.48 |
| D/E | 0.74 | 0.73 | 0.85 | 0.76 | 0.01 |
| Debt-to-Assets | 33.64% | 31.13% | 31.72% | 29.81% | 0.88% |
| Interest Coverage | 0.34 | 0.14 | 0.11 | -194.77 | -17.90 |
| Asset Turnover | 0.30 | 0.30 | 0.33 | 0.37 | 0.30 |
| Fixed Asset Turnover | 25.05 | 24.92 | 25.21 | 15.45 | 51.11 |
| Dividend Yield | 0% | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
The financial ratios of CyberArk Software Ltd. (CYBR) for FY 2024 present a mixed picture of its financial health. The liquidity ratios are relatively strong, with a current ratio of 1.48 and a quick ratio of 1.48, indicating the company can cover its short-term liabilities. However, the solvency ratio is concerning at -0.05, reflecting potential difficulties in meeting long-term obligations. Profitability ratios are notably weak; the net profit margin stands at -9.34%, and the EBIT margin is also negative at -0.013, suggesting ongoing operational challenges. The price-to-earnings ratio is significantly negative at -157.49, indicating investors are cautious about future earnings. Overall, while liquidity appears adequate, profitability and solvency raise alarms for potential investors.
Evolution of Financial Ratios
Over the past five years, CyberArk’s financial ratios have shown a downward trend, particularly in profitability, with net profit margins consistently negative. Liquidity ratios have improved slightly, but overall financial health remains a significant concern.
Distribution Policy
CyberArk Software Ltd. (CYBR) does not currently pay dividends, reflecting its focus on reinvesting for growth and innovation in a competitive market. The company is in a high-growth phase, prioritizing R&D and strategic acquisitions to enhance its offerings. Despite the lack of dividends, CyberArk engages in share buybacks, indicating a commitment to returning value to shareholders. This approach aligns with long-term value creation, although investors should monitor financial performance to mitigate risks associated with sustained losses.
Sector Analysis
CyberArk Software Ltd. specializes in software-based security solutions within the Infrastructure Software sector, competing with major players while leveraging its innovative offerings and strong market presence.
Strategic Positioning
CyberArk Software Ltd. (CYBR) occupies a strong position in the cybersecurity market, particularly in privileged access management. With a market cap of approximately $24.2B, CyberArk is a key player, leveraging its comprehensive suite of security solutions to fend off competitive pressure from both established firms and emerging startups. The company effectively addresses technological disruptions by continuously innovating its offerings, such as the Cloud Entitlements Manager and Endpoint Privilege Manager. As organizations increasingly prioritize security in a digital-first environment, CyberArk’s market share is poised for growth, albeit with vigilant risk management to navigate potential volatility.
Revenue by Segment
The following chart illustrates CyberArk Software Ltd.’s revenue distribution by segment for the fiscal year 2024, highlighting key contributors and changes compared to previous years.
In FY 2024, CyberArk’s revenue segments show significant growth, particularly in SaaS, which surged to 469M, and Self Hosted Subscription at 265M. Maintenance and support declined slightly to 197M, while Professional services and Perpetual License remained modest contributors at 56M and 14M, respectively. The most notable shift is the robust expansion of the SaaS segment, indicating a strategic pivot toward cloud-based solutions. However, the decline in Maintenance and support raises potential margin risks that investors should monitor closely moving forward.
Key Products
Below is a table summarizing the key products offered by CyberArk Software Ltd., which provide essential security solutions for various industries.
| Product | Description |
|---|---|
| Privileged Access Manager | A solution that offers risk-based credential security and session management to protect against attacks involving privileged access. |
| Vendor Privileged Access Manager | Combines Privileged Access Manager and Remote Access to provide fast, easy, and secure privileged access to third-party vendors. |
| Endpoint Privilege Manager | A SaaS solution designed to secure privileges on endpoints, enhancing overall endpoint security. |
| Cloud Entitlements Manager | A SaaS solution that reduces risks from excessive privileges by implementing least privilege across cloud environments. |
| Identity and Access Management Services | Provides adaptive multi-factor authentication (MFA), single sign-on, and identity lifecycle management for workforce and customer identity services. |
| Secrets Manager Credential Providers | Manages credentials used by third-party solutions, ensuring secure access to sensitive data. |
| Secrets Manager Conjur | Specifically designed for cloud-native applications, this product helps manage secrets in dynamic environments. |
These products are integral to CyberArk’s mission of safeguarding organizations against advanced security threats, particularly in sectors such as finance, healthcare, and technology.
Main Competitors
The competitive landscape in the software infrastructure sector is characterized by a mix of established companies and emerging players. Below is a table of the main competitors, including CyberArk Software Ltd., sorted by descending market cap:
| Company | Market Cap |
|---|---|
| MongoDB, Inc. | 33.34B |
| Zoom Communications, Inc. | 26.56B |
| Samsara Inc. | 25.57B |
| VeriSign, Inc. | 23.13B |
| CyberArk Software Ltd. | 24.16B |
| Affirm Holdings, Inc. | 22.15B |
| Toast, Inc. | 20.98B |
| Check Point Software Technologies Ltd. | 20.79B |
| PTC Inc. | 20.79B |
| The Trade Desk, Inc. | 19.70B |
| F5, Inc. | 14.37B |
The primary competitors in the software infrastructure market are notable for their diverse offerings in security and cloud solutions, primarily operating in North America and globally. Each company brings a unique set of technologies and services that cater to various industry needs, which intensifies the competition in this rapidly evolving sector.
Competitive Advantages
CyberArk Software Ltd. (CYBR) boasts a strong competitive edge in the cybersecurity landscape, particularly through its comprehensive suite of solutions designed to manage and secure privileged access. Its innovative products like the Privileged Access Manager and Endpoint Privilege Manager position the company favorably as enterprises increasingly prioritize security in their digital transformations. Looking ahead, CyberArk is poised to explore new markets and expand its offerings, including enhanced cloud security solutions and identity management services, which could significantly boost its growth trajectory and market share in the rapidly evolving cybersecurity sector.
SWOT Analysis
The following SWOT analysis provides a comprehensive overview of CyberArk Software Ltd.’s current strategic position.
Strengths
- Strong market position
- Innovative security solutions
- Diverse client base
Weaknesses
- Dependence on a few key clients
- High competition in the sector
- Limited brand recognition compared to larger players
Opportunities
- Growing demand for cybersecurity
- Expansion into emerging markets
- Increasing regulatory requirements
Threats
- Rapid technological changes
- Cybersecurity breaches
- Market saturation
The overall SWOT assessment indicates that while CyberArk has a robust market presence and innovative offerings, it must address its weaknesses and threats proactively. Leveraging opportunities in cybersecurity demand and regulatory requirements will be crucial for the company’s strategic growth.
Stock Analysis
Over the past year, CyberArk Software Ltd. (CYBR) has experienced significant price movements, highlighted by a bullish trend that has seen its stock rise substantially.
Trend Analysis
Analyzing the overall trend, CYBR has demonstrated a price change of +113.62% over the past year. This substantial increase clearly indicates a bullish trend. Notably, the stock has reached a high of 520.78 and a low of 224.09. However, the trend is currently showing signs of deceleration, suggesting that while the stock has performed well, the rate of growth may be moderating. The standard deviation of 81.58 indicates considerable volatility in its price movements.
In the recent period from September 21, 2025, to December 7, 2025, the stock has shown a slight price change of -2.43%, indicating a neutral trend during this timeframe based on the strict criteria for trend direction.
Volume Analysis
Over the last three months, trading volumes for CYBR have indicated a buyer-driven activity, with total volume reaching approximately 365.64M, of which 63.71% was attributed to buyers. The volume trend is increasing, suggesting a growing interest from investors, which is consistent with the current bullish sentiment in the stock. In the recent period analyzed, buyer volume accounted for 65.38% of the activity, reinforcing the notion of strong buyer dominance in the market.
Analyst Opinions
Recent analyst recommendations for CyberArk Software Ltd. (CYBR) indicate a cautious stance, with a consensus rating of “hold.” Analysts are particularly concerned about the company’s current financial metrics, reflected in a C- rating from industry experts. Notably, the discounted cash flow score is decent at 3; however, concerns around return on equity and return on assets, both rated at 1, suggest potential profitability challenges. Given these insights, I advise investors to carefully monitor CyberArk’s performance before making any significant investment decisions.
Stock Grades
CyberArk Software Ltd. (CYBR) has received consistent ratings from multiple reputable grading companies, indicating a stable outlook for the stock.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Oppenheimer | maintain | Outperform | 2024-10-22 |
| Keybanc | maintain | Overweight | 2024-10-18 |
| Mizuho | maintain | Outperform | 2024-10-17 |
| BTIG | maintain | Buy | 2024-10-09 |
| Barclays | maintain | Overweight | 2024-10-07 |
| Wedbush | maintain | Outperform | 2024-10-01 |
| Jefferies | maintain | Buy | 2024-09-24 |
| DA Davidson | maintain | Buy | 2024-08-09 |
| Rosenblatt | maintain | Buy | 2024-08-09 |
| Susquehanna | maintain | Positive | 2024-08-09 |
Overall, the trend in grades for CYBR shows a strong consensus among analysts to maintain their positions, with numerous “Outperform” and “Buy” ratings. This stability suggests confidence in the company’s performance potential moving forward.
Target Prices
The consensus among analysts for CyberArk Software Ltd. (CYBR) indicates a positive outlook.
| Target High | Target Low | Consensus |
|---|---|---|
| 520 | 440 | 475.2 |
Overall, analysts expect CyberArk’s stock to trade around 475.2, reflecting a solid potential for growth within the set range.
Consumer Opinions
Consumer sentiment about CyberArk Software Ltd. (CYBR) reveals a mixed bag of experiences, reflecting both strong enthusiasm and notable concerns.
| Positive Reviews | Negative Reviews |
|---|---|
| “Excellent security features and usability.” | “Customer support can be slow to respond.” |
| “Highly effective in preventing breaches.” | “Pricing is on the higher side for small firms.” |
| “Intuitive interface and great integration.” | “Some functionalities are complex to implement.” |
| “Consistent updates and improvements.” | “Documentation could be more comprehensive.” |
Overall, consumer feedback on CyberArk highlights strong security capabilities and user-friendly design as significant strengths, while slow customer support and high pricing are recurring weaknesses in user experiences.
Risk Analysis
In evaluating CyberArk Software Ltd. (CYBR), it’s essential to consider various risks that could impact its performance and investment potential.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in the cybersecurity market can affect sales. | High | High |
| Regulatory Risk | Increased regulations on data security may impose additional costs. | Medium | High |
| Competitive Risk | Intense competition from established players and startups. | High | Medium |
| Technological Risk | Rapid technological changes can render current solutions obsolete. | Medium | High |
| Operational Risk | Potential disruptions in operations due to cyber threats. | Medium | High |
In recent months, heightened cyber threats have increased the demand for cybersecurity services, while regulatory scrutiny is intensifying. Thus, market and regulatory risks appear most significant for CYBR investors to monitor closely.
Should You Buy CyberArk Software Ltd.?
CyberArk Software Ltd. (Ticker: CYBR) currently exhibits negative profitability with a net income of -93.46M, reflecting ongoing challenges in value creation. The company’s debt levels are low, with a debt-to-equity ratio of 0.0124, suggesting manageable leverage. However, the fundamentals have not shown significant improvement, as evidenced by a rating of C- and a WACC of 8.35% exceeding a return on invested capital (ROIC) of -16.70%, indicating value destruction.
Favorable signals
CyberArk Software Ltd. has demonstrated several favorable elements in its income statement evaluation. The company has achieved a revenue growth of 33.1%, a gross margin of 79.18%, and a gross profit growth of 33.0%. Additionally, the operating expenses compared to revenue growth are also favorable at 33.1%. The ebit growth is particularly strong, recorded at 78.17%, and the interest expense percentage is a manageable 0.41%.
Unfavorable signals
Despite some favorable elements, CyberArk also presents several unfavorable signals. The ebit margin stands at -1.33%, indicating challenges in profitability, and the net margin is notably negative at -9.34%. Furthermore, the net margin growth is down by 5.59%, and the earnings per share (EPS) growth is significantly negative at -32.5%. In terms of financial ratios, the return on equity (ROE) is at -3.94%, and the return on invested capital (ROIC) is -16.7%, which suggests value destruction. The price-to-book ratio is high at 6.21, and the interest coverage is unfavorable at -3.27.
Conclusion
While the income statement presents a favorable global opinion, the overall ratios evaluation is unfavorable, indicating potential challenges for long-term investors. Additionally, the recent seller volume exceeds the buyer volume, suggesting that it might be prudent to wait for buyers to return before making any investment decisions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- CyberArk Stock Up 43% in a Year — So Why Did a Major Investor Just Exit a $42 Million Position? – The Motley Fool (Dec 03, 2025)
- CyberArk (CYBR) Exceeds Market Returns: Some Facts to Consider – Yahoo Finance (Oct 20, 2025)
- Assessing CyberArk Software (CYBR) Valuation as Investor Momentum Pauses – Sahm (Nov 20, 2025)
- CyberArk/Palo Alto Networks deal spread narrows amid Austrian filing (CYBR:NASDAQ) – Seeking Alpha (Nov 28, 2025)
- CyberArk (NASDAQ: CYBR) approves Palo Alto Networks deal: $45 cash + 2.2005 shares – Stock Titan (Nov 13, 2025)
For more information about CyberArk Software Ltd., please visit the official website: cyberark.com
