Check Point Software Technologies Ltd. (CHKP): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of a cybersecurity giant, and honestly, the numbers from late 2025 tell a compelling story about their AI-first, prevention-first bet. We're looking at a business model anchored by the proprietary, AI-powered Infinity Platform, which is clearly driving recurring revenue-think Security Subscriptions hitting $305 million in Q3 2025 alone. What this means for you is a highly committed customer base, evidenced by a $2.4 billion Remaining Performance Obligation as of Q1 2025, all supported by a war chest of $2,817 million in cash and securities as of September 30, 2025. This 100% channel-led machine is complex, so check out the full canvas below to see exactly how they map their resources and capture value.

Check Point Software Technologies Ltd. (CHKP) - Canvas Business Model: Key Partnerships

Check Point Software Technologies Ltd. relies on an extensive external network to deliver and deploy its security solutions globally, operating on a 100% partner-led business model. This channel ecosystem is critical, as the company is dependent on a small number of distributors.

The global network of value-added resellers and distributors is structured into a four-tier system based on annualized bookings and training, designed to offer predictable discount levels and superior partner benefits. The company recognized its top-performing partners across Asia Pacific in September 2025, highlighting the importance of regional channel strength.

Strategic alliances are central to Check Point Software Technologies Ltd.'s cloud security strategy. For instance, a key move in early 2025 was the strategic partnership with Wiz, a leading Cloud Native Application Protection Platform (CNAPP) provider, formalized in February 2025 to secure hybrid cloud environments. This collaboration aims to unify security across Check Point Harmony (workspace), CloudGuard (cloud), and Quantum (network) solutions.

The open-garden ecosystem is a significant component, expanding to include more than 250 pre-validated integrations with third-party security and IT solutions as of late 2025. This allows customers to apply endpoint posture signals directly within Check Point security policies, strengthening Zero Trust enforcement.

System Integrators (SIs) play a vital role in enterprise deployment. At the 2025 APAC Partner Conference, DXC Technology was named Top Partner of the Year for Australia/New Zealand, demonstrating deep engagement in the enterprise and public sectors. Similarly, NCS was recognized as the Enterprise Partner of the Year for ASEAN & South Korea, noted for consistent year-on-year growth through joint solutions.

To enhance its platform capabilities, Check Point Software Technologies Ltd. has actively pursued acquisitions. The acquisition of Lakera, an AI-native security platform, was completed in November 2025, with the deal reportedly costing $300 million. This acquisition establishes the foundation for Check Point Software Technologies Ltd.'s Global Center of Excellence for AI Security. Furthermore, Check Point Software Technologies Ltd. has acquired 22 companies in total, which includes both Lakera and Veriti.

Here is a look at the scale of the ecosystem and recent partnership recognition:

The company's channel strategy is reinforced by specific partner achievements:

• DXC Technology: Recognized as Top Partner of the Year (Australia/New Zealand) at the 2025 APAC Partner Conference.
• NCS: Recognized as Enterprise Partner of the Year (ASEAN & South Korea) at the 2025 APAC Partner Conference.
• Keystone Solutions: Named Cloud Partner of the Year (ASEAN & South Korea) at the 2025 APAC Partner Conference.
• HGC Global Communications: Received the Quantum Partner of the Year award (Greater China) at the 2025 APAC Partner Conference.

Check Point Software Technologies Ltd. is driving its growth through a unified platform approach, supported by these external relationships.

Check Point Software Technologies Ltd. (CHKP) - Canvas Business Model: Key Activities

You're looking at the core engine driving Check Point Software Technologies Ltd.'s value creation right now, late in 2025. It's all about continuous innovation and maintaining that massive installed base through partners.

Extensive Research and Development (R&D) for the AI-driven Infinity Platform

Check Point Software Technologies Ltd. pours significant capital into R&D to keep the Infinity Platform ahead of evolving threats. For the twelve months ending September 30, 2025, research and development expenses totaled approximately $0.434B. This investment fuels the AI-driven capabilities across the platform, which unifies security management for on-premises, cloud, and workspace environments. The platform components include Check Point Harmony for the workspace, Check Point CloudGuard for the cloud, and Check Point Quantum for the network. The platform's efficacy is a key activity, with testing showing superior threat prevention and response, excelling in AI-driven scenarios.

Here's a quick look at some key financial and operational metrics as of mid-to-late 2025:

Managing the 100% channel-led sales and support ecosystem

Check Point Software Technologies Ltd. relies entirely on its channel partners to take solutions to market. This ecosystem is responsible for protecting over 100,000 organizations globally. A key activity here involves co-creating solutions and investing heavily in upskilling these partners through trainings to ensure they can effectively position and support the complex platform architecture. The focus is on ensuring the ecosystem can cover all customer gaps using the unified management approach.

Strategic acquisitions and integration to expand platform functionality

The Infinity Platform's open-garden architecture is expanded through targeted M&A. The acquisition of Veriti Ltd. in 2025 utilized approximately $84 million net of cash consideration. More recently, on October 22, 2025, Check Point Software Technologies Ltd. closed the acquisition of Lakera, which focuses on AI-native security platforms for Agentic AI applications.

Continuous threat intelligence gathering and security content updates

The threat intelligence function directly informs the prevention-first ethos of the platform. The annual State of Global Cyber Security 2025 report highlighted an alarming 44% increase in global cyber-attacks year-over-year. Furthermore, Infostealer attacks surged by 58% in the period covered by that report. This intelligence feeds directly into the platform's AI to enhance efficiency and accuracy.

Share repurchase program to enhance shareholder value, totaling approximately $325 million in Q2 2025

Returning capital to shareholders via buybacks is a consistent activity. During the second quarter of 2025, Check Point Software Technologies Ltd. re-purchased approximately 1.5 million shares at a total cost of approximately $325 million. This activity continued into the third quarter of 2025, where the company re-purchased approximately 1.6 million shares for a total cost of approximately $325 million.

• Q2 2025 Share Repurchase Cost: $325 million
• Q3 2025 Shares Repurchased: Approximately 1.6 million
• Cash flow from operations in Q3 2025 was $241 million, which compares to $249 million in Q3 2024.

Finance: draft 13-week cash view by Friday.

Check Point Software Technologies Ltd. (CHKP) - Canvas Business Model: Key Resources

You're looking at the core assets that Check Point Software Technologies Ltd. relies on to execute its strategy, and frankly, these are heavily weighted toward intellectual property and financial stability, which is typical for a mature security leader.

The foundation of the offering is the Proprietary AI-powered Infinity Platform and its core security IP. This platform is not just a marketing term; it has tangible external validation. Check Point Software Technologies announced that its Infinity Platform was named the top-ranked AI-powered cyber security platform in the 2025 Miercom Assessment. This assessment validated its lead over competitors in security efficacy and Zero Trust implementation. The company leverages this platform to address the threat landscape, which saw a 45% surge in cyber-attacks as highlighted in the 2025 Check Point Security Report. Key components include the INFINITY AI COPILOT for accelerating administration.

Financially, Check Point Software Technologies maintains a strong liquidity position. As of September 30, 2025, the company reported Cash and marketable securities, plus short-term deposits, totaling $2,817 million. This resource base supports ongoing investment, like the approximately $160 million executed payment for the land of the new Check Point Tel Aviv Campus during Q3 2025.

The human capital is significant, representing the expertise needed to maintain this IP. While the prompt mentioned an older figure, Check Point Software Technologies had approximately 8.3K employees as of October 2025, spread across 6 continents. This global network of security experts and R&D talent is crucial for developing and supporting the platform. For context, the employee count at the end of 2024 was 6,669.

The brand itself is a long-standing asset. Check Point Software Technologies is recognized as a cybersecurity pioneer, having been founded in 1993. This history underpins customer trust, which is reflected in the forward-looking revenue indicators.

The Remaining Performance Obligation (RPO), which represents contracted future revenue, shows sustained customer commitment. The RPO stood at $2.4 billion as of Q1 2025. By the third quarter of 2025, this figure had grown, increasing 9% year-over-year to reach $2.4 billion again, indicating a strong backlog. This is supported by Q3 2025 operational results, where Total Revenues reached $678 million and Calculated Billings grew 20% year-over-year to $672 million.

Here is a summary of key financial and operational metrics as of late 2025:

The platform's success is further evidenced by its components:

• Security Subscriptions Revenues grew 10% year-over-year in Q3 2025, reaching $305 million.
• Non-GAAP Operating Income for Q3 2025 was $282 million, representing 42% of total revenues.
• The company repurchased approximately 1.6 million shares for a total cost of approximately $325 million in Q3 2025.

Finance: review the impact of the $160 million land payment on Q4 cash flow projections by next Tuesday.

Check Point Software Technologies Ltd. (CHKP) - Canvas Business Model: Value Propositions

Prevention-first security model with industry-leading efficacy.

• Miercom 2025 firewall benchmark: 99.9% malware block rate.
• Miercom 2025 firewall benchmark: 99.7% block rate against phishing and malicious URLs.
• Check Point Security Report 2025 noted a 45% increase in cyber-attacks.
• Check Point Research AI Security Report 2025 found 1 in 80 GenAI prompts expose sensitive data.

Consolidated, unified security management via the Infinity Platform.

AI-driven defense across network, cloud, endpoint, and mobile environments.

• Check Point Research 2025 Security Report: 68% of attacks start with email.
• Check Point Research 2025 Security Report: 61% of harmful files are sent via HTML attachments.
• Harmony Email uses AI and machine learning to block threats before delivery.
• The Infinity Platform leverages AI everywhere for efficiency and accuracy.

Hybrid Mesh Architecture for flexible, scalable on-premises and cloud security.

The Infinity Platform features a Hybrid Mesh Architecture, unifying management across on-premises, cloud, and workspace environments. Demand for Quantum Force appliances showed double-digit year-over-year growth in Q1 2025, and continued a double-digit growth trajectory in Q2 2025.

New blockchain security innovation, recognized by Fast Company in 2025.

• Recognition received: Fast Company's Next Big Things in Tech 2025 list.
• Innovation: Real-time, in-chain threat prevention for public blockchains.
• Deployment status: Capability active on the Cardano mainnet.
• Value proposition: Offering enterprise-grade, compliance-ready security for decentralized ecosystems.

Check Point Software Technologies Ltd. (CHKP) - Canvas Business Model: Customer Relationships

You're looking at how Check Point Software Technologies Ltd. keeps its customer base locked in and supported, which is crucial when security threats are surging-the 2025 security report noted a 44% year-over-year increase in cyber-attacks. So, the relationship model is built around deep, continuous engagement rather than just transactional sales.

Dedicated, partner-led sales and post-sales support model.

Check Point Software Technologies Ltd. operates on a 100% Channel business model. This means nearly all customer acquisition and initial support flow through their network of partners. To enhance this, they expanded their advocacy services at CPX 2025 Vegas, formalizing a high-touch layer on top of the channel. This includes:

• Dedicated Customer Advocacy Manager for strategic guidance.
• Direct access to advocacy experts for security optimization.
• Partner Advocacy Management for MSSPs (Managed Security Service Providers) to improve their service delivery to end-customers.

The partner program itself is structured with a transparent, four-tier system, where advancement is based on annualized bookings and training, aiming for a profitable partner experience.

Long-term contracts reflected in the large RPO, showing customer commitment.

The commitment from customers isn't just implied; it's visible in the balance sheet through the Remaining Performance Obligation (RPO). This number represents contracted services yet to be delivered, a strong indicator of customer stickiness and recurring revenue visibility. Here's what the numbers showed through the first half of 2025:

That RPO figure of $2.4 billion in the first half of 2025 definitely shows customers are signing up for multi-year security commitments. It's a solid foundation, you know.

Collaborative security operations via Infinity Core Services.

The relationship extends well past the initial sale into ongoing operations, centralized under the Infinity Platform's services layer. Check Point Software Technologies Ltd. calls this Infinity Core Services (or Infinity Platform Services), which is designed for collaborative prevention-first security operations. This ecosystem aims to break down silos and unify management across the network, cloud, and workspace environments.

Key components driving this collaboration include:

• ThreatCloud AI for shared, real-time threat intelligence.
• Automated threat response using XDR and Playblocks (Automation and Orchestration).
• Managed Services, Consulting, and API integrations with third-party partners.

Customer-facing AI tools like Infinity CoPilot for risk management.

Check Point Software Technologies Ltd. is pushing an AI-First strategy to enhance customer interaction and risk management. The Infinity CoPilot is a key customer-facing tool leveraging Generative AI for efficient security administration and automated threat response. This focus on AI was further cemented by the strategic acquisition of Lakera on October 22, 2025, specifically to strengthen their AI security capabilities, especially around Agentic AI applications.

Furthermore, their latest network software, Quantum Firewall Software R82.10, directly addresses customer AI adoption risks by introducing 20 new capabilities, including oversight for AI-driven activity and detection of unauthorized GenAI tools like ChatGPT, Claude, and Gemini. This shows they are embedding customer-relevant, cutting-edge technology directly into the operational relationship.

High-touch enterprise sales for complex, large-scale security deployments.

While the channel handles broad distribution, the complexity of enterprise security demands a high-touch approach for large-scale deployments. Check Point Software Technologies Ltd. safeguards over 100,000 organizations globally, many of which are large enterprises requiring unified, prevention-first security across hybrid environments. This focus is validated by external recognition; for instance, in Q3 2025, Forrester recognized Check Point Software Technologies Ltd. as a Leader in The Forrester Wave™: Zero Trust Platforms, citing 5 out of 5 scores in critical criteria like centralized management and usability, which is essential for complex enterprise rollouts.

The company protects over 100,000 organizations globally. That scale necessitates deep, consultative relationships for successful Zero Trust adoption.

Finance: finalize the Q3 2025 deferred revenue reconciliation by Wednesday.

Check Point Software Technologies Ltd. (CHKP) - Canvas Business Model: Channels

Check Point Software Technologies Ltd. operates on a 100% channel-led sales model. This commitment is a core tenet of their go-to-market strategy, meaning the vast majority of their product and license sales flow through external partners. This structure is supported by a dedicated, tiered partner program designed to drive joint growth. For instance, the company explicitly states, Check Point is 100% Channel.

The global network of resellers and distributors is segmented through a transparent structure. Check Point Software Technologies Ltd.'s partner program offers a simplified structure with four tiers based on annualized bookings and training to differentiate benefits. This ecosystem is vital for moving product and license sales, which for the first quarter of 2025 totaled $114 million, contributing to total revenues of $638 million. By the second quarter of 2025, Products & Licenses Revenues grew to $132 million. The company actively recognizes top performers, as seen with the Asia Pacific Partner Conference in September 2025, highlighting partners who achieved significant growth, such as one partner delivering over 300% YoY growth in the first half of 2025.

For subscription-based services, Check Point Software Technologies Ltd. has established a specific structure for Managed Security Service Providers (MSSPs). The 2025 Partner Program includes a new program specifically for MSSP partners, designed to be a straightforward, scalable, and profitable model. Security Subscriptions Revenues for Q1 2025 were $291 million, rising to $298 million in Q2 2025, demonstrating the importance of recurring revenue streams often delivered via service partners.

Direct sales through cloud marketplaces are a key channel for cloud-delivered solutions like CloudGuard. While specific marketplace revenue percentages aren't public, Check Point Software Technologies Ltd. lists major cloud providers as technology partners, indicating direct integration and sales routes. The comprehensive platform includes Check Point CloudGuard to secure the cloud, which is supported by technology alliances with platforms like AWS, Google Cloud Platform, and Azure.

The direct sales team primarily focuses on supporting the channel and managing the largest accounts. With a global employee base of about 5,000 employees, this team is crucial for channel enablement and securing major enterprise deals. The geographic distribution of the overall business suggests where this direct/channel support is most concentrated: around 50% of revenue is generated in Europe, the Middle East, and Africa, 40% from the Americas, and 10% from the Asia-Pacific region.

Here's a look at the recent financial scale underpinning the channel strategy as of late 2025:

The partner program structure emphasizes clear progression and specialization:

• Simplified structure with four tiers.
• Tiers based on annualized bookings and training.
• Dedicated, scalable model for MSSP partners.
• Encourages partners to develop specialized expertise.
• Focus on boosting deal closure rates.

The direct sales team's focus on enablement is supported by resources like the Check Point Partner Portal and the CheckMates Community.

Check Point Software Technologies Ltd. (CHKP) - Canvas Business Model: Customer Segments

You're looking at the core of Check Point Software Technologies Ltd.'s market, which is definitely focused on the biggest players needing top-tier protection. Their primary target isn't the small shop; it's the global behemoths.

The foundation of their customer base is built on securing massive environments. They focus on Large Enterprises and Service Providers globally, which is where the most complex and high-value threats land. To be fair, this focus makes sense given the scale of their security platform, the Infinity Architecture.

The sheer reach of Check Point Software Technologies Ltd. is substantial. They safeguard over 100,000 organizations globally as of late 2025. That's a lot of digital trust being protected by their AI-powered solutions.

While the large enterprises are the bedrock, Check Point Software Technologies Ltd. is also actively pursuing mid-size businesses, offering scalable solutions that fit their growing security needs. Here's a quick look at how their existing customer base breaks down by employee size, which gives you a clear picture of where the bulk of their current deployment lies:

• Large Customers (>1000 employees): 51% of the customer base.
• Medium-sized Customers: 28% of the customer base.
• Small Customers (<50 employees): 18% of the customer base.

The company sells its solutions across enterprises, businesses, and even consumers, but the revenue concentration clearly points toward the larger entities. For instance, a significant portion of their existing customer base consists of companies with >10000 employees.

Geographically, the business is heavily weighted toward established markets, though they maintain a global footprint across more than 60 countries. The revenue distribution shows where the biggest deals are closing:

When you look at the industries they serve, you see a mix of high-value targets and sectors where digital transformation is rapid. While specific customer counts for retail, finance, and government aren't always public, the data on usage and targeted sectors gives us a strong indication of their focus areas. For example, in the broader cybersecurity landscape, Check Point Research noted that Healthcare saw a 47% increase in attacks year-over-year in 2024, making it a critical sector for their services.

The top industries using Check Point Software Technologies Ltd. solutions based on available data include:

• Information Technology and Services: Account for 21% of usage segments.
• Cloud Services: A key segment with 150 reported companies using the tools.
• Managed Services: Another significant vertical with 139 reported companies.
• Computer Software: Represents 6% of the customer segments.

Finance: draft 13-week cash view by Friday.

Check Point Software Technologies Ltd. (CHKP) - Canvas Business Model: Cost Structure

The Cost Structure for Check Point Software Technologies Ltd. is heavily weighted toward sustaining its technology advantage and supporting its global, partner-led go-to-market strategy. For the third quarter ended September 30, 2025, total GAAP Operating Expenses reached $320 million, up from $289 million in the third quarter of 2024, reflecting continued investment across the business.

High R&D expenditure to maintain technology leadership in AI and prevention.

Investment in Research & Development is non-negotiable for Check Point Software Technologies Ltd. to keep its prevention-first approach ahead of evolving threats, especially with the recent strategic move to acquire Lakera to bolster its AI security stack. While the precise Q3 2025 breakdown isn't explicitly isolated, the full-year 2024 Non-GAAP Research & Development spend was $335.3 million, demonstrating the scale of this commitment. This expenditure supports the development of the AI-powered Infinity Platform, which unifies on-premises, cloud, and workspace security.

Significant investment in channel enablement and partner training.

Given that Check Point Software Technologies Ltd. operates a 100% Channel model, significant resources are dedicated to ensuring partners can effectively sell, deploy, and support the complex security portfolio. This investment is embedded within the Sales and Marketing spend, which is a primary cost driver.

Sales and Marketing costs to support the global, defintely partner-led model.

Sales and Marketing (S&M) represents the largest component of operating expenses, necessary to drive global adoption through the channel ecosystem. For the full year 2024, Non-GAAP Selling and Marketing expenses totaled $764.4 million. This cost base supports the global sales force and the extensive partner network required to reach over 100,000 organizations worldwide.

Cost of Goods Sold (COGS) for hardware appliances (Quantum Force).

The Cost of Goods Sold relates to the delivery of products, including the Quantum Force hardware appliances. For the third quarter of 2024, the Total Cost of Revenues was $90.3 million. The success of the core Quantum Force appliance business was noted in the fourth quarter of 2024 with strong 8 percent revenue growth.

General and Administrative (G&A) costs, including managing global operations.

General and Administrative costs cover the overhead for managing global operations, finance, legal, and executive functions. For the full year 2024, Non-GAAP General & Administrative expenses were $82.1 million. These costs also encompass significant one-time capital expenditures, such as the approximately $160 million payment executed in Q3 2025 for the land of the new Check Point Tel Aviv Campus.

Here is a look at the latest available detailed expense structure, based on the full-year 2024 Non-GAAP figures, contextualized by the Q3 2025 performance metrics:

The company's cost management is also reflected in its cash generation; Cash flow from operations in Q3 2025 was $241 million, which increased by 23 percent when excluding a one-time tax payment of approximately $66 million. Furthermore, Check Point Software Technologies Ltd. continued its capital return program, repurchasing approximately 1.6 million shares in Q3 2025 for a total cost of approximately $325 million.

• Security Subscriptions Revenues for Q3 2025 were $305 million, showing strong recurring revenue growth.
• Total Deferred Revenues stood at $1.887 billion as of September 30, 2025.
• Remaining Performance Obligation (RPO) increased to $2.4 billion.

Check Point Software Technologies Ltd. (CHKP) - Canvas Business Model: Revenue Streams

You're looking at how Check Point Software Technologies Ltd. (CHKP) actually brings in the money, which is key for valuing any subscription-heavy security firm. The revenue mix shows a clear pivot toward recurring income, which is what analysts really like to see.

The core revenue streams are segmented across services and product sales. It's not just one thing; it's a blend of immediate sales and longer-term commitments. For instance, the recurring side is definitely the anchor now.

Here's a quick look at the components driving the top line, based on the latest reported periods:

• Security Subscriptions: $305 million in Q3 2025, a key recurring revenue source.
• Products and Licenses: $114 million in Q1 2025, driven by appliance refresh cycles (using the specified figure).
• Software updates and maintenance services.

The overall scale of the business, as of the end of the third quarter, shows solid growth. Total Trailing Twelve-Month (TTM) revenue reached $2.684 billion as of Sep 30, 2025. That's the full picture over the last year.

To give you a snapshot of profitability tied to that revenue in the most recent quarter, here are the Q3 2025 operating figures:

The 42% Non-GAAP Operating Income margin in Q3 2025, translating to $282 million in income, shows Check Point Software Technologies Ltd. is managing its costs effectively while scaling revenue. That margin is defintely something to watch going into the next fiscal year.

Also, remember that Services Calculated Billings, which includes both Subscription and Support, grew 21% year-over-year in Q3 2025, signaling strong momentum in the recurring revenue bucket. That's the engine for future stability.