CyberArk Software Ltd. (CYBR): Business Model Canvas [Dec-2025 Updated]

You're digging into CyberArk Software Ltd.'s strategy right now, especially with that massive Palo Alto Networks acquisition on the horizon and their pivot to a full Identity Security Platform. Honestly, understanding how they make money-from their $1.341 billion in Annual Recurring Revenue as of Q3 2025 to their channel mix-is key to valuing this transition. I've spent years mapping out complex tech plays, and this canvas cuts through the noise, showing exactly where their value is built, from securing AI identities to their subscription-heavy revenue streams. Let's break down the nine blocks of the CyberArk Software Ltd. business model so you can see the real drivers behind their next growth chapter.

CyberArk Software Ltd. (CYBR) - Canvas Business Model: Key Partnerships

You're looking at the structure that helped CyberArk Software Ltd. reach a market capitalization of $23.10 billion as of late 2025, right before the acquisition closed. The entire business model hinges on a vast, multi-layered partner ecosystem to drive adoption of the Identity Security Platform across hybrid and cloud environments. This network is what allows CyberArk Software Ltd. to convert demand into a subscription-heavy revenue stream, evidenced by their Q3 2025 Subscription Revenue hitting $280.1 million, a 60 percent jump year-over-year.

The most significant recent event defining this block is the definitive agreement announced on July 30, 2025, where Palo Alto Networks (PANW) intends to acquire CyberArk Software Ltd. for approximately $25 billion in equity value. This deal, which CyberArk Software Ltd. shareholders approved on November 13, 2025, signals a massive consolidation play in the security space. The combined entity is expected to create a powerful growth engine, leveraging CyberArk Software Ltd.'s customer base of over 10,000 clients.

CyberArk Software Ltd. maintains more than 100 certified technology alliances, which are crucial for embedding their platform across diverse IT stacks. These integrations ensure CyberArk Software Ltd. can secure identities wherever they reside, from on-premises systems to the newest cloud-native workloads. Honestly, without these deep technical ties, the platform's reach would be severely limited. The company's focus on machine identities and AI security means these technology integrations are more critical now than ever before.

The Channel Partner network is extensive, encompassing various routes to market that helped CyberArk Software Ltd. achieve $1.341 billion in Annual Recurring Revenue (ARR) as of September 30, 2025. The company received a 5-Star Award in the 2025 CRN Partner Program Guide, underscoring the strength of their partner enablement efforts. They specifically enhanced support for Managed Service Providers (MSPs) by launching the MSP Hub in June 2025, which already included over 300 MSPs in its ecosystem.

Here's a breakdown of the partner ecosystem composition:

Partner Category	Key Role	Example/Metric
Technology Alliances	Product integration and interoperability	More than 100 certified partnerships.
Global System Integrators (GSIs)	Large-scale deployment and strategic advisory	Accenture named 2024 Global Partner of the Year.
Managed Service Providers (MSPs)	Delivering converged identity security services	Over 300 MSPs in the new MSP Hub ecosystem as of June 2025.
Distributors/VARs	Resale and implementation services	Part of a network with over 1,800 partners worldwide (as of early 2025).

Strategic alliances with the major hyperscalers are foundational, as the platform is designed for hybrid and cloud workloads. While specific revenue attribution isn't public, the focus is clear from the awards structure. For instance, Amazon Web Services (AWS) was recognized as the 2024 Global Cloud Partner of the Year. The broader System Integration Market, which GSIs like Accenture operate in, was projected to be worth $442.53 billion in 2025. Accenture itself reported $17.7 billion in Q1 FY2025 revenue.

The technology partner landscape is broad, covering infrastructure, security, and enterprise software. These relationships are vital for CyberArk Software Ltd. to maintain its position as the Identity Security Platform leader. The key technology integrations include, but are not limited to, the following vendors:

• Amazon Web Services (AWS)
• Microsoft (Azure)
• Google Cloud
• Palo Alto Networks (PANW)
• CrowdStrike
• ServiceNow
• VMware
• Red Hat

The 2024 Partner of the Year awards announced in April 2025 highlight the importance of specific players in driving CyberArk Software Ltd.'s growth, which saw total revenue of $342.8 million in Q3 2025. Deloitte was named Global System Integrator Partner of the Year, and HCLTech took the Global MSP Partner of the Year award. This demonstrates the dual focus on large-scale professional services and the rapidly growing managed services delivery model.

Here are the key 2024 Partner of the Year award recipients announced in Q2 2025:

Award Category	Recipient
Global Partner of the Year	Accenture
Global Cloud Partner of the Year	Amazon Web Services (AWS)
Global System Integrator Partner of the Year	Deloitte
Global MSP Partner of the Year	HCLTech

CyberArk Software Ltd. (CYBR) - Canvas Business Model: Key Activities

You're looking at the core engine driving CyberArk Software Ltd.'s platform evolution right now, which is heavily weighted toward engineering and integrating recent, major acquisitions. The focus is clearly on unifying identity security across human, machine, and now, AI identities.

Research and development (R&D) of the Identity Security Platform

The continuous development of the unified Identity Security Platform is a primary activity. This investment fuels the expansion of capabilities across the entire identity lifecycle. For instance, the Research and Development Expense for the quarter ending June 30, 2025, was reported as $82.24 million. This spend supports the platform's evolution from its core Privileged Access Management (PAM) roots into a broader identity security offering.

The platform's development is centered on securing every identity type, which involves significant engineering effort to maintain a unified architecture.

Integrating acquired technologies (like Venafi and Zilla Security) into the platform

A massive operational activity has been the integration of two significant acquisitions. The acquisition of machine identity firm Venafi closed on October 1, 2024, for $1.54 billion. Then, the acquisition of Identity Governance and Administration (IGA) vendor Zilla Security closed on February 12, 2025, for $165 million in cash plus a $10 million performance-based earn-out. The financial results for the third quarter of 2025 explicitly include the financial contributions from both of these deals.

The integration work is yielding tangible results, such as Venafi's technology already being integrated across multiple CyberArk solutions, giving existing Privileged Access Management customers immediate benefits. Zilla Security's AI-driven IGA capabilities are being folded in to automate provisioning and compliance reviews.

Here's a quick look at the financial impact and integration focus:

Metric	Value as of Q3 2025	Context
Venafi Acquisition Cost	$1.54 billion	Completed in late 2024.
Zilla Security Acquisition Cost	$165 million cash + $10 million earn-out	Closed February 12, 2025.
Q3 2025 Total Revenue	$342.8 million	Up 43 percent year-over-year.
Venafi Cross-Sell Opportunity	9,500 CyberArk customers without Venafi	Represents significant cross-sell potential.

Managing the transition to a subscription-based SaaS delivery model

CyberArk Software Ltd. is actively managing the shift to a subscription model, which is clearly reflected in its recurring revenue metrics as of September 30, 2025. This transition is a key focus for driving predictable, high-quality revenue streams.

The company's Annual Recurring Revenue (ARR) reached $1.341 billion, a 45 percent increase from September 30, 2024. The subscription component is now the dominant part of that ARR base.

The subscription focus looks like this:

• Subscription portion of ARR as of September 30, 2025: $1.158 billion.
• Subscription ARR as a percentage of total ARR: 86 percent.
• Year-over-year growth in Subscription ARR: 57 percent.
• Q3 2025 Subscription Revenue: $280.1 million, up 60 percent year-over-year.

Still, the Maintenance portion of ARR stood at $183 million as of September 30, 2025, showing a slight decrease from $191 million the prior year, which underscores the ongoing migration away from non-subscription revenue.

Global sales and channel enablement programs

Effective global sales and channel enablement are critical to monetizing the expanded platform, especially post-acquisition. The company's strategy involves enabling its partner ecosystem to sell the newly integrated products.

For example, CyberArk has enabled several hundred partners on the Venafi solution specifically, which enhances its sales reach. The company is focused on ensuring partners can deliver best-in-class solutions, which involves specific learning plans for sales, pre-sales, and technical certifications. The success of the channel is tied to the overall sales strategy, as the company noted robust demand across its business in Q3 2025.

The company also faces risks related to maintaining successful relationships with channel partners, or if those partners fail to perform.

Securing emerging identities, including AI agents and non-human identities

A major, forward-looking key activity is the development and launch of security controls for AI agents, leveraging the company's machine identity expertise. CyberArk announced the general availability of its Secure AI Agents Solution is planned for December 2025.

This activity is in response to clear market trends and risks:

• Expected AI agent adoption within three years: 76 percent.
• Organizations with adequate security controls for AI agents: Fewer than 10 percent.
• Enterprise financial institutions and software companies with agentic AI in production: Nearly 40 percent.

The solution aims to extend privilege controls, visibility, and compliance to this new class of identity, applying principles like least privilege to autonomous AI agents. This is a direct response to the finding that agents are turning into the most privileged digital identities enterprises have ever seen.

Finance: review the Q4 2025 budget allocation for the new Secure AI Agents Solution rollout by next Tuesday.

CyberArk Software Ltd. (CYBR) - Canvas Business Model: Key Resources

You're looking at the core assets CyberArk Software Ltd. relies on to run its business as of late 2025. These aren't just line items; they are the engine driving their identity security dominance.

The foundation is definitely the proprietary Identity Security Platform technology and intellectual property. This platform is what lets them secure human, machine, and now AI identities from a unified base. That deep IP is backed by the talent, specifically the highly specialized cybersecurity engineering and research teams. You can see the quality of this human capital reflected in industry validation; CyberArk Software Ltd. was named a Leader in the 2025 Gartner Magic Quadrant for Privileged Access Management. Also, they earned recognition as a Leader in the Forrester Wave for Privileged Identity Management (PIM), Q3 2025. They were also named an Overall Leader in the 2025 KuppingerCole Leadership Compass for Identity Fabrics and a Leader and Outperformer in the GigaOm Radar for Enterprise Password Management.

The financial muscle backing this operation is substantial, especially in the subscription space. Here's the quick math on their recurring revenue strength as of the third quarter ended September 30, 2025:

Metric	Value as of Q3 2025	Year-over-Year Change
Total Annual Recurring Revenue (ARR)	$1.341 billion	45% increase
Subscription Portion of ARR	$1.158 billion	57% increase
Maintenance Portion of ARR	$183 million	Decrease from $191 million in Q3 2024
Net New ARR (Q3 2025)	$68 Million	16% increase
Total Revenue (Q3 2025)	$342.8 million	43% increase
Subscription Revenue (Q3 2025)	$280.1 million	60% increase

The subscription portion of ARR now makes up 86% of the total ARR, up from 79% at September 30, 2024. Plus, CyberArk Software Ltd. maintained a strong balance sheet, reporting cash, cash equivalents, short and long-term deposits, and marketable securities totaling $1.964 billion as of September 30, 2025.

The strong brand recognition and trust in the Privileged Access Management (PAM) market is a direct result of years of leadership, which now extends into securing the next frontier: AI. This is where the CORA AI engine for continuous threat detection and risk analysis comes in as a critical resource. It's embedded directly into the platform to boost performance and security.

The CORA AI engine provides several key functions that you need to track:

• AI-based session audits for deeper insights.
• Policy recommendations based on activity patterns and best practices.
• Natural language interface for configuration and setup.
• Troubleshooting and diagnostic support at AI speed.
• Enables administrators to interact with the platform using natural language commands.
• The Secure AI Agents Solution leveraging CORA AI is scheduled for full capability availability by the end of 2025.

What this estimate hides is the integration complexity of recent acquisitions like Venafi and Zilla Security, which are now contributing to the Q3 2025 results. Finance: draft 13-week cash view by Friday.

CyberArk Software Ltd. (CYBR) - Canvas Business Model: Value Propositions

You're looking at the core value CyberArk Software Ltd. delivers to its customers as of late 2025. It's all about securing the explosion of identities-human, machine, and the new AI agents-that are now running your business. The financial results definitely back this up; for instance, in the third quarter of 2025, total Annual Recurring Revenue (ARR) hit $1.341 billion, showing a 45 percent year-over-year increase, with the subscription portion growing 57 percent year-over-year to $1.158 billion. That growth shows customers are buying into the comprehensive platform story.

The platform's value proposition centers on applying intelligent privilege controls to every identity, which is critical because AI and Large Language Models (LLMs) are projected to be the top creators of new identities with privileged access in 2025. Honestly, 68 percent of organizations surveyed lack the needed identity security controls for these new AI identities, so CyberArk Software Ltd. is stepping in to secure that gap.

This unified approach directly enables the adoption of modern security postures:

• Enabling Zero Trust and least privilege access across hybrid environments.
• Empowering all users and identities-workforce, IT, developers, and machines-to securely access any resource.
• CyberArk Software Ltd. was recognized as a Leader in the 2025 Gartner Magic Quadrant for Privileged Access Management for the seventh consecutive time.

The platform's ability to reduce operational and security risks is quantified by its success in helping customers manage complex environments, from on-premises to multi-cloud and SaaS.

Reducing cyber risk and meeting stringent regulatory compliance needs is a major driver, especially given the complexity of modern compliance frameworks. Research from Zilla Security, a CyberArk Software Ltd. company, highlighted that 91 percent of leaders report a growing scope of user access reviews driven by regulatory demands. Furthermore, over 52 percent of organizations reported that more than 11 percent of user entitlements reviewed during audits were unnecessary, orphaned, or excessive, creating significant threats that the platform addresses.

Automated secrets management and certificate lifecycle capabilities are key, particularly as machine identities multiply. CyberArk Software Ltd. was named an Overall Leader in the KuppingerCole Analysts 2025 Leadership Compass for Enterprise Secrets Management, underscoring market leadership in this area. The urgency is clear: 72 percent of organizations suffered at least one certificate-related outage in the past year, with 45 percent experiencing outages weekly. Plus, 50 percent of security leaders reported security incidents or breaches due to compromised machine identities.

The integration of Zilla Security, which closed in February 2025 for up to $175 million (with $165 million in cash), directly bolsters the Unified Identity Governance and Administration (IGA) offering. This acquisition brings AI-powered IGA capabilities to scale automation for compliance and provisioning. This is vital because 84 percent of organizations still rely primarily on manual IGA processes, and 83 percent cite integration difficulties with legacy systems as the top barrier to automation.

Here's a quick look at the financial and operational metrics reflecting this value delivery as of Q3 2025:

Metric	Value (Q3 2025)	YoY Change
Total Revenue	$342.8 million	43 percent increase
Subscription Revenue	$280.1 million	60 percent increase
Total Annual Recurring Revenue (ARR)	$1.341 billion	45 percent increase
Net New ARR	$68 million	16 percent increase

If onboarding takes 14+ days, churn risk rises, so the promise of Zilla's scalable automation to speed up identity compliance is a tangible benefit you should track.

Finance: draft 13-week cash view by Friday.

CyberArk Software Ltd. (CYBR) - Canvas Business Model: Customer Relationships

You're looking at how CyberArk Software Ltd. keeps its enterprise customers engaged and growing their spend on the Identity Security Platform. The relationship model is built on high-touch support for complex needs, balanced with scalable digital resources for the growing SaaS base.

Dedicated Customer Success teams and the CARE (Adoption, Retention, Expansion) framework.

• The CARE framework is the backbone for managing the customer lifecycle.
• Chief Customer Officer Shahar Layani mentioned a record number of high-quality award applications for the 2025 Identity Security Impact Customer Awards.
• The company serves over 10,000 customers globally as of 2025.
• Customer base includes more than 55% of the Fortune 500 and over 35% of the Global 2000.

High-touch, consultative sales for complex enterprise deployments.

For the largest, most complex deployments, the direct sales force focuses on customized solutions, especially for government entities. This personalized approach is crucial for securing intricate IT environments. The company projected a 15% increase in the direct sales team by Q4 2025 to support this high-touch engagement. Still, channel partners remain the primary engine for market reach, accounting for over 70% of revenue in 2024.

Annual IMPACT conference for customer training and community building.

CyberArk IMPACT 2025, the flagship event in Boston, brought together 1,800 cybersecurity leaders and practitioners. Attendees engaged with over 100 breakout sessions and 20 hands-on labs to deepen their expertise. Beyond the main event, the IMPACT World Tour extended this community engagement to more than 30 cities globally.

Professional services for implementation and optimization.

Expert services are critical for efficient integration and risk reduction, especially as customers adopt newer platform capabilities. The revenue generated from these services, alongside maintenance, shows the ongoing commitment to customer success post-sale. Here's a look at the quarterly financial contribution from Maintenance, professional services and other revenue for 2025:

Quarter Ended	Maintenance, Professional Services and Other Revenue
March 31, 2025 (Q1)	$67.0 million
June 30, 2025 (Q2)	$64.3 million
September 30, 2025 (Q3)	$62.7 million

For context, this services revenue was approximately $118 million in the full year 2024.

Self-service portals and technical support for SaaS offerings.

The shift to a subscription model necessitates scalable support. Subscription revenue growth demonstrates strong adoption and retention within the platform. The subscription portion of Annual Recurring Revenue (ARR) reached $1.158 billion, representing 86% of total ARR as of September 30, 2025. Quarterly subscription revenue figures reflect this ongoing customer commitment:

• Q1 2025 Subscription Revenue: $250.6 million.
• Q2 2025 Subscription Revenue: $263.8 million.
• Q3 2025 Subscription Revenue: $280.1 million.

The company's experts help customers make the most of their technology investments, increasing productivity.

CyberArk Software Ltd. (CYBR) - Canvas Business Model: Channels

You're looking at how CyberArk Software Ltd. gets its identity security platform into the hands of customers as of late 2025. The strategy is definitely multi-pronged, balancing high-touch direct sales with broad ecosystem reach.

The overall success of this channel strategy is reflected in the top-line numbers. For the third quarter ended September 30, 2025, Total Revenue hit $342.8 million, marking a 43 percent increase year-over-year. Furthermore, Annual Recurring Revenue (ARR) reached $1.341 billion as of that same date, up 45 percent year-over-year.

Here's a quick look at the scale of the financial performance supporting these channels:

Metric	Value (as of Q3 2025 or TTM Sep 30, 2025)
Total Revenue (Q3 2025)	$342.8 million
Total Revenue (TTM ending Sep 30, 2025)	$1.303B
Total Annual Recurring Revenue (ARR)	$1.341 billion
Subscription Portion of ARR	$1.158 billion

The structure relies on a deep bench of specialized partners to drive scale and market penetration.

• Global network of Value-Added Resellers (VARs) and distributors.
• Direct Enterprise Sales force for top-tier accounts (Fortune 500).
• Cloud Marketplaces (AWS, Azure) for simplified procurement and deployment.
• Managed Service Providers (MSPs) for mid-market delivery.

The Global network of Value-Added Resellers (VARs) and distributors is substantial. As of April 30, 2025, the CyberArk Partner Network included more than 1,800 global systems integrators (GSIs), managed service providers (MSPs), solution providers, strategic outsourcers, advisories and distributors, plus marketplaces. This network is defintely key for geographic reach.

For the Direct Enterprise Sales force, the focus is on securing the largest, most complex deals, often involving the full Identity Security Platform. While the exact revenue split isn't public, the overall 43 percent revenue growth in Q3 2025 suggests strong performance across both direct and indirect motions, especially with the success of recent acquisitions like Zilla Security, which added 125 customers in Q3 2025.

The Cloud Marketplaces (AWS, Azure) represent a streamlined route to consumption. Amazon Web Services (AWS) was specifically recognized as the Global Cloud Partner of the Year for 2024, indicating a high level of integration and sales synergy through that specific digital channel.

For the Managed Service Providers (MSPs), CyberArk leverages these relationships for broader service delivery. HCLTech was named the Global MSP Partner of the Year for 2024, showing the caliber of the MSPs driving adoption and ongoing management services for CyberArk Software Ltd. customers.

Finance: review Q4 2025 channel contribution estimates by end of January.

CyberArk Software Ltd. (CYBR) - Canvas Business Model: Customer Segments

You're looking at the core buyers for CyberArk Software Ltd. as of late 2025. The focus is clearly on organizations with the most complex and high-value identity security needs, which translates directly into their subscription revenue growth.

The customer base is anchored by the largest entities globally, showing deep penetration into the most security-conscious segments of the market. As of the third quarter of 2025, Annual Recurring Revenue (ARR) stood at $1.341 billion, with the subscription portion at $1.158 billion, demonstrating the high value derived from these established customer relationships.

Large Global Enterprises (including over 55% of the Fortune 500)

CyberArk Software Ltd. serves a total of over 10,000 customers across 110 countries. The concentration within the largest enterprises is significant, indicating that securing the most critical infrastructure is a primary driver for adoption.

Customer Metric	Data Point (As of 2025)
Total Global Customers	Over 10,000
Fortune 500 Penetration	More than 55% or 50%
Global 2000 Penetration	Over 35%
Customers with >10,000 Employees	761 companies
US Customer Percentage	61.72% (approx. 1,227 companies)

This large enterprise segment is the foundation, with 761 companies employing over 10,000 people relying on CyberArk Software Ltd. solutions.

Highly Regulated Industries: Financial Services, Government, Healthcare

The company's solutions are critical for sectors facing intense regulatory scrutiny and high-stakes data protection requirements. Specific examples of served industries include financial services, healthcare, and telecommunications. For instance, Barclays, a Banking and Financial Services organization, is listed among CyberArk Software Ltd. customers.

• Financial Services
• Government (e.g., State of Louisiana)
• Healthcare

Upper Mid-Market organizations adopting cloud-native infrastructure

CyberArk Software Ltd. explicitly targets the upper mid-market segment alongside large enterprises. The strategic move to expand cloud capabilities is evident through acquisitions like Zilla Security in February 2025, which specializes in cloud-based identity governance, strengthening the foothold in cloud security. The shift in revenue mix reflects this, with self-hosted subscription revenue being a key component.

Chief Information Security Officers (CISOs) and security operations teams

The target audience includes the executive security leadership, who view identity security as foundational. By 2025, it was anticipated that 60% of Fortune 2000 company CISOs would champion transparent, rapid disclosure practices due to career and reputation risks. Security operations teams are the primary users dealing with fragmented processes that CyberArk Software Ltd. aims to simplify through platform consolidation.

Developers and DevOps teams requiring secrets management

The customer base is expanding beyond traditional human identities to secure the rapidly growing machine and AI identities. Machine identities now outnumber human identities by more than 80-to-1. The company's focus includes machine identity management, bolstered by the Venafi acquisition in October 2024. Furthermore, the emerging need to secure agentic AI identities is a key area of demand. Only 32% of organizations reportedly have the right identity security controls for AI as of 2025, indicating a large addressable segment for secrets and machine identity management solutions.

CyberArk Software Ltd. (CYBR) - Canvas Business Model: Cost Structure

You're looking at the cost base for CyberArk Software Ltd. as they transition fully into a subscription-first model while integrating major acquisitions. The cost structure is heavily weighted toward growth initiatives, which is typical for a company scaling its Annual Recurring Revenue (ARR), which hit $1.341 billion as of September 30, 2025.

The most concrete, recent full-year expense data we have is for Fiscal Year 2024, which gives us a strong baseline before the full impact of the Zilla Security acquisition in early 2025. For the full year 2024, CyberArk Software Ltd.'s Total Operating Expenses were $865.17 million.

The largest single component of this spend is clearly Sales and Marketing, which is where you see the drive for subscription growth. For the full year 2024, Sales and Marketing costs amounted to $481.0 million, representing 54% of the total operating expenses. This high percentage reflects the investment needed to secure new logos and expand the subscription base, which saw Subscription revenue grow to $733.3 million in FY 2024.

The costs associated with platform innovation and talent are embedded within the remaining operating expenses. For instance, in Q3 2025, the GAAP operating loss was $(50.1) million, but the Non-GAAP operating income was $64.8 million, a margin of 19 percent. This difference highlights that significant non-cash or non-recurring items, like share-based compensation and acquisition-related costs, are being added back to show core operational performance.

The integration of recent acquisitions adds specific, sometimes one-time, costs. The acquisition of Zilla Security closed in February 2025, and the cash paid for it was approximately $165 million in the first quarter of 2025 alone. While specific ongoing integration expense line items aren't itemized in the latest reports, the company explicitly adjusts Non-GAAP metrics to exclude acquisition-related expenses, signaling their material impact on GAAP reporting.

Here's a look at the known expense structure based on the latest full-year data and recent activity:

Cost Category	Latest Reported Amount (USD)	Period / Context
Total Operating Expenses	$865.17 million	Full Year 2024
Sales and Marketing (S&M)	$481.0 million	Full Year 2024 (54% of total OpEx)
Combined R&D, G&A, Personnel (Inferred Remainder)	$384.17 million	Full Year 2024 (Total OpEx less S&M)
Acquisition Cash Outlay (Zilla Security)	$165 million	Q1 2025
GAAP Operating Loss	$(50.1) million	Q3 2025

The investment in platform innovation and specialized talent is a critical driver of the cost base, even if the exact R&D spend isn't segmented out in the summary reports. You know that Share-based compensation expense is a significant recurring expense that management removes to calculate Non-GAAP results.

For the SaaS platform delivery, the cost structure is shifting. The focus is on subscription revenue, which made up 86 percent of total ARR as of September 30, 2025, at $1.158 billion. This shift implies a higher, but more predictable, cost for cloud infrastructure and customer success relative to the declining maintenance/professional services revenue, which was $62.7 million in Q3 2025.

The high cost of specialized cybersecurity talent is a constant pressure point, as evidenced by the company's focus on retaining key personnel post-acquisition. Furthermore, executive compensation policies were revised in May 2025, limiting certain benefits to 24 months' salary, which speaks to the ongoing management of high-value personnel costs.

Here are the key elements that define the ongoing cost profile:

• High S&M Ratio: 54 percent of FY 2024 operating expenses went to Sales and Marketing.
• Acquisition Costs: Significant cash outlay for Zilla Security in Q1 2025 (approx. $165 million) adds to the cost base.
• Cloud Infrastructure: Costs scale directly with the 57 percent year-over-year growth in Subscription ARR.
• Personnel & R&D: These are substantial, recurring costs, often masked by Non-GAAP adjustments like excluding share-based compensation expense.

Finance: draft the projected Q4 2025 operating expense breakdown based on the Q3 2025 margin by Friday.

CyberArk Software Ltd. (CYBR) - Canvas Business Model: Revenue Streams

The revenue streams for CyberArk Software Ltd. are heavily weighted toward a predictable, durable recurring revenue model. This shift is clearly reflected in the latest figures from the third quarter of 2025.

Subscription Revenue was a significant driver, hitting $280.1 million in Q3 2025, marking a substantial 60 percent increase year-over-year from $175.6 million in Q3 2024. This focus on subscriptions is the engine of durable growth for CyberArk Software Ltd. The recurring revenue model itself generated $326.3 million in Q3 2025, up 46 percent from the prior year period.

The other component of revenue, Maintenance, Professional Services, and Other Revenue, totaled $62.7 million for the third quarter of 2025. This compares to $64.5 million in the same quarter last year, showing a slight decrease as the business continues its transition away from non-recurring maintenance contracts.

Here's a quick look at the Annual Recurring Revenue (ARR) composition as of September 30, 2025:

Metric	Amount (as of Q3 2025)	Percentage of Total ARR
Total Annual Recurring Revenue (ARR)	$1.341 billion	100%
Subscription ARR	$1.158 billion	86%
Maintenance ARR	$183 million	Approximately 13.65%

The strong recurring revenue model provides predictable, durable growth, which is a key feature of the Business Model Canvas. This predictability helps in planning investments, such as those related to recent acquisitions like Zilla Security, which is expected to enhance identity governance capabilities.

A major opportunity for expanding these revenue streams lies in cross-selling new modules to the existing customer base, which stands at over 10,000+ customers. The focus areas for this expansion are directly tied to the evolving identity security landscape:

• Securing the proliferation of privilege across human identities.
• Capturing the exponential rise of machine identities.
• Addressing the emerging need to secure agentic AI.
• Expanding adoption of modules like Identity Governance and Administration (IGA).
• Driving adoption of specialized offerings like Machine Identity solutions.

Finance: draft 13-week cash view by Friday.