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SecureWorks (SCWX) investor relations material
SecureWorks Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Q3 FY2025 net revenue was $82.7M, down 7.4% year-over-year, with Taegis revenue up 6% to $71.4M and ARR up 4% to $288.8M.
Net loss for the quarter was $27.5M, up from $14.4M last year, mainly due to higher tax expense and merger costs.
The company completed the exit from non-strategic Managed Security Services and is transitioning to higher-margin Taegis solutions.
Secureworks entered a definitive merger agreement with Sophos, expected to close in early 2025.
Financial highlights
Q3 FY2025 net revenue declined 7.4% year-over-year to $82.7M; nine-month revenue was $250.6M.
GAAP gross profit was $56.1M (67.8% margin), up from $54.7M; non-GAAP gross profit was $58.4M.
Net loss widened to $27.5M ($0.31/share) from $14.4M ($0.17/share) year-over-year.
Adjusted EBITDA for the quarter was $1.4M, up from a $(1.2)M loss last year.
Ended the quarter with $53.1M in cash and no borrowings.
Outlook and guidance
Management expects the focus on Taegis and recent reorganization to drive cost savings and margin improvement.
Financial guidance for Q4 and FY25 is suspended due to the pending Sophos acquisition.
Sufficient liquidity is anticipated for at least 12 months, with $53.1M in cash and a $50M undrawn credit facility.
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