Check Point comments on earnings call

Check Point comments on earnings call

Title: Check Point Software Technologies Reports Strong Second Quarter Results

Check Point Software Technologies Ltd. (NASDAQ: CHKP) has announced its financial results for the second quarter ended June 30, 2025, revealing a robust performance across various revenue streams. The company reported total revenues of $665 million, a 6 percent increase year over year, with products and licenses revenues reaching $132 million, a 12 percent increase, and security subscriptions revenues amounting to $298 million, a 10 percent increase [1].

The company's calculated billings, which include total revenues and changes in total deferred revenues, stood at $642 million, up 4 percent year over year. The remaining performance obligation (RPO), representing non-cancellable contracted products and services, increased to $2.4 billion, a 6 percent rise. GAAP operating income was $204 million, representing 31 percent of total revenues, while non-GAAP operating income reached $271 million, representing 41 percent of total revenues [1].

Check Point's GAAP EPS was $1.84, a 6 percent increase year over year, while non-GAAP EPS was $2.37, a 9 percent increase. The company attributed this growth to the expansion of its emerging technologies portfolio, including Email, SASE, and Enterprise Risk Management, as well as the strong performance of its Quantum Force appliances [1].

In terms of cash management, Check Point's cash balances, marketable securities, and short-term deposits decreased to $2,913 million as of June 30, 2025, from $3,058 million as of June 30, 2024. This decrease was primarily due to the net cash consideration used for the acquisitions of Cyberint Ltd. and Veriti Ltd. in 2024 and 2025, respectively [1].

The company also initiated a share repurchase program during the second quarter of 2025, repurchasing approximately 1.5 million shares at a total cost of approximately $325 million. Cash flow from operations in the second quarter of 2025 was $262 million, which included $50 million in benefit related to currency hedging transactions and $6 million in acquisition-related costs [1].

Wall Street analysts have responded positively to Check Point's Q2 results. GuruFocus metrics indicate a slight downside risk based on GF Value estimates, but the consensus among 31 analysts points to an average target price of $239.80, suggesting a potential upside of 10.04% from the current stock price of $217.92 [2].

Check Point will host a conference call with the investment community on July 30, 2025, at 8:30 AM ET/5:30 AM PT, to discuss these results and provide further insights into the company's strategies and initiatives [1].

References:
[1] https://www.checkpoint.com/press-releases/check-point-software-reports-2025-second-quarter-financial-results/
[2] https://www.gurufocus.com/news/3015639/check-point-software-technologies-chkp-surpasses-q2-expectations