Check Point Software Technologies (CHKP) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues grew 7% year-over-year to $638 million, exceeding midpoint guidance, driven by strong demand for Quantum Force appliances and double-digit growth in Infinity platform revenues.

• Non-GAAP EPS increased 9% year-over-year to $2.21, above midpoint guidance, with GAAP EPS at $1.71, up 7%.

• Deferred revenues increased 5% to $1.92 billion, and calculated billings rose 7% to $553 million.

• Operating cash flow was $421 million, up 17% year-over-year, ending the quarter with $2.9 billion in cash.

• Share repurchases totaled $325 million in Q1 2025, reducing diluted share count to 111.4 million.

Financial highlights

• Gross profit increased 5% to $564 million, with an 88% gross margin.

• Non-GAAP operating income was $259 million (41% margin); GAAP operating income was $196 million (31% margin).

• Net income reached $246 million, up 5% year-over-year; GAAP net income was $190.9 million.

• Calculated billings were $553 million, up 7% year-over-year; RPO stood at $2.42 billion, up 11%.

• Diluted share count decreased to 111.4 million from 115.2 million year-over-year.

Outlook and guidance

• Q2 2025 revenue expected between $642 million and $682 million, representing 2%-9% year-over-year growth.

• Non-GAAP EPS guidance for Q2 is $2.32-$2.42, up 7%-12% year-over-year.

• Full-year 2025 guidance remains unchanged at $2.66B–$2.76B revenue and $9.60–$10.20 non-GAAP EPS.

• Guidance reflects caution due to macroeconomic volatility and potential deal slippage.

• Management notes a healthy pipeline and strong customer interest in Infinity Platform and Quantum Force.