CyberArk Software (CYBR) AI Stock Analysis

• Market Cap: $22.21B
• Dividend Yield: N/A
• Average Volume (3M): 469.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: 43.26%
• EPS Growth: -1651.82%
• Country: US
• Employees: 3,793
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 1.20
• Shares Outstanding: 50,476,950
• 10 Day Avg. Volume: 406,721
• 30 Day Avg. Volume: 469,354
• PEG Ratio: -4.85
• Price to Book (P/B): 6.21
• Price to Sales (P/S): 14.71
• P/FCF Ratio: 66.65
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 20.10
• Enterprise Value/Gross Profit: 26.38
• Enterprise Value/Ebitda: 332.58
• 1Y Price Target: $507.71
• Price Target Upside: 15.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): 4.06
• Revenue Forecast (FY): $1.34B

• Rating: 52 Neutral
• Price Target: $450.00 ▲(2.26% Upside)

CyberArk Software's overall stock score is primarily influenced by its strong revenue growth and cash flow management, which are offset by negative profitability and bearish technical indicators. The lack of earnings call insights and corporate events further limits the stock's attractiveness.

Positive Factors

Revenue Growth

CyberArk's robust revenue growth indicates strong market demand and successful product adoption, supporting long-term business expansion.

Strategic Merger

The merger with Palo Alto Networks is expected to enhance CyberArk's market position and expand its cybersecurity offerings, benefiting long-term growth.

Cash Flow Management

Strong cash flow management ensures CyberArk can fund operations and growth initiatives, providing financial stability and flexibility.

Negative Factors

Profitability Challenges

Ongoing profitability challenges due to negative margins could hinder CyberArk's ability to reinvest in growth and maintain competitive positioning.

Increased Leverage

Higher leverage increases financial risk, potentially impacting CyberArk's ability to invest in strategic initiatives and manage economic downturns.

Negative ROE

Negative ROE indicates inefficiency in generating returns on equity, which may affect investor confidence and long-term capital growth.

CyberArk Software Business Overview & Revenue Model

Company Description

CyberArk Software Ltd., together with its subsidiaries, develops, markets, and sales software-based security solutions and services in the United States, Europe, the Middle East, Africa, and internationally. Its solutions include Privileged Access Manager 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 that secures privileges on the endpoint; and Cloud Entitlements Manager, a SaaS solution, which reduces risk that arises from excessive privileges by implementing least privilege across cloud environments. The company also offers robust Identity and Access Management as a Services, such as workforce identity, which offers adaptive multi-factor authentication (MFA), single sign-on, secure Web sessions, application gateway, identity lifecycle management, and directory services; and customer identity services that provides authentication and authorization services, MFA, directory, and user management to enable organizations to provide their customers with easy and secure access to websites and applications. In addition, it offers Secrets Manager Credential Providers to provide and manage the credentials used by third-party solutions; and Secrets Manager Conjur for cloud-native applications. The company provides its products to financial services, manufacturing, insurance, healthcare, energy and utilities, transportation, retail, technology, and telecommunications industries; and government agencies through direct sales force, as well as distributors, systems integrators, value-added resellers, and managed security service providers. CyberArk Software Ltd. was founded in 1999 and is headquartered in Petah Tikva, Israel.

How the Company Makes Money

CyberArk generates revenue primarily through the sale of its software products and subscription services. The company's revenue model includes both one-time license fees for on-premises software and recurring subscription fees for its cloud-based solutions. Major revenue streams consist of sales from privileged access management solutions, which are essential for organizations to manage and secure privileged accounts effectively. Additionally, CyberArk earns revenue from maintenance and support services, as well as professional services related to implementation and consulting. The company has established significant partnerships with other technology providers and integrates its solutions with various platforms, enhancing its market reach and contributing to its earnings.

CyberArk Software Financial Statement Overview

Summary

CyberArk Software shows strong revenue growth and effective cash flow management, crucial for expansion. However, profitability is under pressure due to negative net income, and increased leverage poses risks. High liquidity and a strategic shift to subscription models support a positive outlook.

Income Statement

Revenue has shown a strong growth trajectory from $464M in 2020 to $1.2B TTM, indicating robust business expansion. However, margins remain a concern, with a negative EBIT and net income reflecting operating challenges. The gross profit margin is solid at 76.2% TTM, but the net profit margin is negative due to consistent losses.

Balance Sheet

The balance sheet is strong with a high equity ratio of 51.2% TTM and substantial cash reserves. However, the debt-to-equity ratio increased significantly, reflecting higher leverage which could pose risks if not managed properly. ROE remains negative due to ongoing net losses, although equity growth is positive.

Cash Flow

Operating cash flow is robust and exceeds net income, indicating good cash generation from operations. The free cash flow is positive and growing, signaling effective capital management. However, the significant increase in financing cash flow suggests reliance on external funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.20B	1.00B	751.89M	591.71M	502.92M	464.43M
Gross Profit	914.27M	792.37M	595.76M	465.66M	409.61M	381.86M
EBITDA	72.52M	28.68M	-43.77M	-117.57M	-59.06M	32.27M
Net Income	-165.37M	-93.46M	-66.50M	-130.37M	-83.95M	-5.76M
Balance Sheet
Total Assets	4.53B	3.35B	2.02B	1.82B	1.69B	1.56B
Cash, Cash Equivalents and Short-Term Investments	1.54B	819.78M	993.42M	954.28M	926.43M	952.99M
Total Debt	1.22B	29.32M	602.87M	577.20M	527.07M	525.53M
Total Liabilities	2.21B	978.59M	1.23B	1.14B	966.69M	855.06M
Stockholders Equity	2.32B	2.37B	792.33M	678.14M	726.51M	707.29M
Cash Flow
Free Cash Flow	207.49M	220.83M	51.26M	37.19M	65.81M	99.59M
Operating Cash Flow	222.17M	231.89M	56.20M	49.71M	74.74M	106.77M
Investing Cash Flow	-1.40B	-346.26M	-85.83M	-68.39M	-228.19M	-412.39M
Financing Cash Flow	1.42B	288.81M	38.08M	12.22M	10.95M	13.25M

CyberArk Software Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 440.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CYBR, the sentiment is Negative. The current price of 440.07 is below the 20-day moving average (MA) of 497.89, below the 50-day MA of 494.48, and above the 200-day MA of 410.00, indicating a neutral trend. The MACD of -10.41 indicates Positive momentum. The RSI at 24.43 is Positive, neither overbought nor oversold. The STOCH value of 6.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CYBR.

CyberArk Software Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTNT	71 Outperform	$58.64B	32.47	228.04%	―	14.78%	22.52%
PANW	68 Neutral	$127.48B	116.01	15.33%	―	15.30%	-60.71%
CRWD	65 Neutral	$130.64B	―	-8.99%	―	23.46%	-270.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
OKTA	61 Neutral	$13.87B	92.77	2.61%	―	12.68%	―
CYBR	52 Neutral	$22.21B	―	-12.73%	―	43.26%	-1651.82%
SAIL	39 Underperform	$10.29B	―	―	―	25.99%	-25.47%

CyberArk Software Corporate Events

CyberArk Shareholders Approve Merger with Palo Alto Networks

On November 13, 2025, CyberArk Software Ltd. held a Special General Meeting of Shareholders where key proposals were approved, including a merger with Palo Alto Networks, Inc. The merger will result in CyberArk becoming a wholly-owned subsidiary of Palo Alto Networks, with shareholders receiving shares and cash as part of the transaction. This strategic move is expected to enhance CyberArk’s market positioning and operational capabilities, pending regulatory approvals and other customary closing conditions.

CyberArk Reports Strong Q3 2025 Results Amidst Palo Alto Networks Merger Plans

On November 6, 2025, CyberArk Software Ltd. announced strong financial results for the third quarter of 2025, reporting a 16% year-over-year increase in net new annual recurring revenue (ARR) and a total ARR growth of 45% to $1.341 billion. The company highlighted its strategic position in the identity security market, driven by robust demand and recent acquisitions, as well as its planned merger with Palo Alto Networks, expected to enhance its growth potential and market reach.

CyberArk Software Announces Merger with Palo Alto Networks

CyberArk Software Ltd. announced a merger agreement with Palo Alto Networks, Inc., where CyberArk will become a wholly owned subsidiary of Palo Alto Networks. The merger, initially disclosed in July 2025, is set to be finalized following a special shareholder meeting on November 13, 2025. Despite receiving demand letters from shareholders alleging incomplete disclosures in the merger documents, CyberArk has voluntarily supplemented its Proxy Statement to address these concerns, although it denies any legal necessity for such disclosures. This strategic move is expected to enhance CyberArk’s market position within the cybersecurity industry and provide additional value to its stakeholders.

CyberArk Announces Shareholder Meeting for Proposed Merger with Palo Alto Networks

CyberArk Software Ltd. has announced a special general meeting of shareholders scheduled for November 13, 2025, to vote on a proposed merger with Palo Alto Networks, Inc. (PANW). The merger agreement, initially signed on July 30, 2025, outlines that CyberArk will become a wholly owned subsidiary of PANW. Shareholders will receive PANW common stock and cash as part of the merger consideration. The CyberArk board unanimously supports the merger, viewing it as beneficial for the company and its shareholders. The meeting will also address the approval of CyberArk’s 2024 share incentive plan. If approved, the merger will result in former CyberArk shareholders owning approximately 14.1% of PANW’s outstanding shares.