CyberArk Software Ltd. (CYBR): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of CyberArk Software Ltd.'s business portfolio as of late 2025, especially how its various segments map to the classic BCG growth-share matrix. Here's the quick math on where the company's products sit, based on its strong pivot to a subscription model and its $1.31 billion to $1.32 billion full-year 2025 revenue guidance: the Identity Security Platform is the clear Star, fueling 57% Subscription ARR growth to reach $1.158 billion by Q3, while established on-premise PAM acts as the reliable Cash Cow, underpinning $300 million to $310 million in FCF guidance. Still, we must track the emerging Question Marks like AI security and the phasing-out Dogs to see where the next big investment decisions land.

Background of CyberArk Software Ltd. (CYBR)

You're looking at CyberArk Software Ltd. (CYBR), which firmly positions itself as the global leader in identity security. Honestly, the core of what they do is protecting organizations from cyber threats that target privileged accounts, credentials, and secrets across the enterprise. They focus on securing both human identities and the exponentially rising number of machine identities, which is a huge area of concern right now, especially with the rise of agentic AI. The company was founded back in 1999, and as of late 2025, they serve around 9,000 customers globally, including more than half of the Fortune 500.

The recent financial picture from the third quarter ended September 30, 2025, shows some serious momentum. Total revenue for that quarter hit $342.8 million, which was a 43 percent jump year-over-year from the $240.1 million reported in Q3 2024. What's really driving this is the shift to recurring revenue; subscription revenue specifically soared to $280.1 million, marking a 60 percent increase. This trend is clear in the Annual Recurring Revenue (ARR), which reached $1.341 billion as of that date, growing 45 percent from the prior year. The subscription portion of that ARR is now $1.158 billion, making up 86 percent of the total.

To be fair, while subscription revenue is up big, the traditional maintenance and services revenue saw a slight dip, which is expected as they push the cloud model. On the balance sheet side, CyberArk Software Ltd. looks solid, holding $1.964 billion in cash and marketable securities as of September 30, 2025. Strategically, they've been active, integrating the recent acquisitions of Venafi and Zilla Security, and they are preparing for a major combination with Palo Alto Networks, which they believe will create a powerful growth engine for the expanding identity security market. At the time of their latest report, the market capitalization stood around $25.64B.

CyberArk Software Ltd. (CYBR) - BCG Matrix: Stars

You're looking at the engine room of CyberArk Software Ltd. (CYBR)'s current growth story-the Stars quadrant. These are the business units with high market share in markets that are still expanding rapidly, meaning they demand significant investment to maintain that leadership position. Honestly, it's where the future cash cows are forged, but right now, the cash flow is mostly reinvested to fuel the fire.

The Identity Security Platform, particularly its SaaS and Cloud-Native offerings, is clearly the primary Star. This segment is demonstrating explosive growth, evidenced by the 57% year-over-year increase in the Subscription portion of Annual Recurring Revenue (ARR) as of the third quarter of 2025. This strong adoption is what defines a Star; it's leading the charge in a high-growth area.

The overall financial scale of this subscription success is significant. By the end of Q3 2025, the Subscription portion of ARR hit $1.158 billion. This represents 86% of the total ARR, which itself stood at $1.341 billion at that time. That $1.158 billion in subscription ARR is the financial metric underpinning this Star category.

The core Privileged Access Management (PAM) business remains a dominant force, which is critical because the market itself is still expanding at a clip that justifies the Star classification. Industry analysis suggests the overall PAM Market is projected to grow at a Compound Annual Growth Rate (CAGR) of 22.20% between 2025 and 2030. CyberArk Software Ltd. maintained its Leader position in the 2025 Gartner Magic Quadrant for Privileged Access Management, confirming its high market share within this growing space.

The push into Machine Identity Security, bolstered by the acquisition of Venafi, addresses what CyberArk sees as an exponential growth vector. The company is positioning itself to secure the rapidly expanding landscape where machine identities now outnumber human identities by a ratio of 80:1. The Venafi acquisition, which closed in late 2024, was valued at approximately $1.54 billion ($1 billion cash and $540 million in stock), showing the level of investment CyberArk Software Ltd. is making to own this Star segment.

Here is a quick look at the key financial metrics defining these Star components as of Q3 2025:

The investment required to keep these segments leading is substantial, which is why they consume cash almost as fast as they generate it. You see this reflected in the GAAP operating loss of $(50.1) million for Q3 2025, even as total revenue grew 43% year-over-year to $342.8 million. The strategy is clear: invest heavily now to secure the market leadership needed for these to mature into Cash Cows when the overall growth rate inevitably slows.

The key drivers supporting the Star status are:

• Identity Security Platform SaaS/Cloud-Native growth rate of 57% in Subscription ARR for Q3 2025.
• Privileged Access Management market CAGR projected at 22.20% through 2030.
• Machine Identity Security addressing the 80:1 machine-to-human identity ratio.
• Subscription ARR reaching $1.158 billion as of September 30, 2025.

Finance: draft 13-week cash view by Friday.

CyberArk Software Ltd. (CYBR) - BCG Matrix: Cash Cows

You're looking at the bedrock of CyberArk Software Ltd.'s financial stability, the segment that funds the growth bets in the Stars and Question Marks quadrants. These are your classic Cash Cows: established products in a mature market that command significant market share.

The core of this segment is the installed base of established, on-premise Privileged Access Management (PAM) software installations. This installed base is what feeds the predictable, high-margin renewal revenue stream that defines a Cash Cow.

This customer base is highly sticky, meaning once CyberArk Software Ltd. is embedded in an enterprise's critical infrastructure, switching costs are substantial. This stickiness translates directly into reliable cash flow, even as the company aggressively pushes newer subscription offerings.

The base of perpetual license customers, though shrinking relative to the total, still generates the bulk of the Maintenance Annual Recurring Revenue (ARR). This revenue stream is less volatile than new subscription bookings, providing a reliable floor for the company's recurring revenue base.

Here's how the Maintenance ARR, a key proxy for this legacy business, has tracked through the transition period:

The slight decline in Maintenance ARR, from $191 million at the end of 2024 to $183 million as of September 30, 2025, illustrates the low-growth nature of this mature segment, even as the overall ARR base is expanding rapidly.

The primary financial output from these Cash Cows is the robust cash generation they enable. CyberArk Software Ltd. has provided clear guidance on this:

• Strong adjusted free cash flow guidance of $300.0 million to $310.0 million for the full fiscal year 2025.
• This guidance excludes certain one-time items, like an estimated $42 million one-time tax payment and approximately $15 million in capital expenditures for the new U.S. headquarters.
• For context on the underlying business strength, the company generated $96 million in free cash flow in the first quarter of 2025 alone.

The strategy here is clear: maintain the existing infrastructure supporting these large enterprise contracts to maximize cash extraction, rather than heavily investing in growth promotion for this segment. Investments are instead targeted at efficiency improvements that can further boost this cash flow.

To give you a sense of the legacy revenue stream before the full reporting shift, the combined Maintenance and Professional Services revenue for the full year 2024 was $253.0 million, which included a small portion of perpetual license revenue of $14.4 million.

You should view this Cash Cow segment as the engine room; it's not where the exciting growth stories are, but it's definitely where the fuel comes from. Finance: draft the Q4 2025 cash flow projection based on achieving the high end of the $300 million to $310 million adjusted FCF guidance by Friday.

CyberArk Software Ltd. (CYBR) - BCG Matrix: Dogs

The Dogs quadrant in the Boston Consulting Group Matrix represents business units or products characterized by a low market share in a low-growth market. For CyberArk Software Ltd., these elements are primarily associated with the legacy business model components that the company is actively retiring to focus on subscription growth.

Legacy Perpetual License sales are the quintessential Dog, as the company is aggressively phasing them out to drive the transition to the subscription model. While the most recent specific perpetual license revenue figure is from Q4 2024, it clearly illustrates the trend of minimization. Perpetual license revenue was reported as $5.0 million in the fourth quarter of 2024, down from $8.0 million in the fourth quarter of 2023. This segment ties up resources without contributing to the high-growth, high-visibility Annual Recurring Revenue (ARR) base.

The Maintenance portion of ARR also exhibits characteristics aligning with a Dog, showing a year-over-year decline as customers migrate to pure subscription offerings. At September 30, 2025, the Maintenance portion of ARR stood at $183 million. This value is lower than the $191 million reported for the Maintenance portion of ARR at September 30, 2024. This reduction suggests that the non-subscription recurring revenue stream is shrinking, which is expected when prioritizing the subscription shift.

The combined revenue line that includes maintenance and services further illustrates this pressure point. The category labeled Maintenance, Professional Services and Other revenue was $62.7 million for the third quarter of 2025, a decrease from $64.5 million in the third quarter of 2024. This combined figure represents the lower-margin, less scalable aspects of the prior business structure.

You should view these declining metrics as evidence of strategic divestiture in action, rather than a failure of a core business line. Expensive turn-around plans are generally avoided for Dogs; instead, the strategy is to harvest remaining value or discontinue. Here's the quick math on the year-over-year change for the combined line:

Older, niche on-premise tools that lack modern, unified platform integration fall into this category because their market growth is inherently low compared to cloud-native solutions. While specific revenue for these legacy on-premise tools isn't isolated, their fate is tied to the declining Maintenance ARR and the overall push toward the subscription platform.

Professional Services revenue, which is inherently lower-margin and not the core growth driver compared to the subscription revenue that grew 60 percent year-over-year to $280.1 million in Q3 2025, is managed for efficiency rather than growth. The components within the 'Maintenance, Professional Services and Other' bucket are candidates for minimization or integration into higher-margin subscription services.

The key financial indicators pointing to the Dog status for these legacy elements include:

• The Maintenance portion of ARR decreased from $191 million to $183 million year-over-year as of September 30, 2025.
• The combined Maintenance, Professional Services and Other revenue declined from $64.5 million to $62.7 million year-over-year in Q3 2025.
• Perpetual license revenue was only $5.0 million in Q4 2024, indicating minimal ongoing contribution.
• The Subscription portion of ARR reached $1.158 billion, representing 86 percent of total ARR at September 30, 2025, dwarfing the legacy components.

What this estimate hides is the exact margin profile of the Professional Services component within the combined revenue line. Finance: draft 13-week cash view by Friday.

CyberArk Software Ltd. (CYBR) - BCG Matrix: Question Marks

You're looking at the newer, high-potential areas of CyberArk Software Ltd.'s business that are demanding capital to secure market position. These are the segments where growth is high, but relative market share is still being established against specialized or cloud-native players.

The strategy here is clearly investment, as evidenced by the financial profile showing significant operating strain alongside rapid top-line expansion in the subscription model.

New solutions for AI Agents and AI-driven privilege controls represent a market where CyberArk Software Ltd. is establishing a foothold. The company launched its Secure AI Agents Solution in the third quarter of 2025, introducing dedicated security controls for AI agent identities. This is an emerging priority, given that machine identities already outnumber humans by a ratio of 82:1 as of September 2025. The focus is on securing these new, rapidly growing identity groups.

The acquisition of Zilla Security directly addresses the need to build share in the Identity Governance and Administration (IGA) space. CyberArk Software Ltd. closed this deal in the first quarter of 2025, specifically on February 12, 2025. The cash outlay for this acquisition was approximately $165 million, with an additional $10 million contingent on milestone payments. This move expands CyberArk Software Ltd.'s platform into modern IGA, which is built around cloud environments and AI-based procedures.

The Cloud Infrastructure Entitlements Management (CIEM) offerings are another area where CyberArk Software Ltd. is building share against established cloud-native competitors. While the overall Identity Security Platform is strong, these adjacent security markets require focused investment to gain traction.

The financial reality of these growth investments is visible in the third quarter of 2025 results:

The overall expansion of the Identity Security Platform into new, adjacent markets outside of core Privileged Access Management (PAM) is driving the high growth but also consuming cash, as seen by the GAAP operating loss of $(50.1) million in the third quarter of 2025. This consumption is necessary to quickly gain market share in these high-growth areas.

You can see the expected trajectory based on the guidance issued earlier in 2025:

• Full Year 2025 Total Revenue Forecast Range: $1.308 billion to $1.318 billion.
• Full Year 2025 ARR Forecast (Dec 31, 2025): $1.410 billion to $1.420 billion.
• Full Year 2025 Non-GAAP EPS Guidance: $3.55 to $3.70 per diluted share.

The Zilla Security technology claims include:

• Deployment speed: five times faster.
• Access review effort reduction: 80% less effort.
• Service ticket reduction: 60% fewer service tickets.

The cash position as of September 30, 2025, stood at $1.964 billion in cash, cash equivalents, short and long-term deposits, and marketable securities, which provides the necessary war chest to fund these Question Mark investments.