CyberArk Software Ltd. (CYBR): History, Ownership, Mission, How It Works & Makes Money

When a company's market capitalization hits $24.6 billion as of November 2025, and its full-year revenue guidance sits at over $1.31 billion, do you defintely know how CyberArk Software Ltd. (CYBR) became the global leader in identity security? This isn't just a security play; they secure over 50% of the Fortune 500 and closed Q3 2025 with $342.8 million in total revenue, proving their unified platform is a core enterprise necessity. With strategic acquisitions like Venafi and Zilla Security, plus a new Secure AI Agents Solution, understanding CyberArk's history, mission, and how it makes money is crucial for any investor or strategist looking at the future of digital defense.

CyberArk Software Ltd. (CYBR) History

CyberArk Software Ltd. is a story of prescient focus on a critical, often-overlooked area of cybersecurity: the privileged account. You need to know that this company didn't just grow; it pioneered the entire Privileged Access Management (PAM) space, and its journey from a small Israeli startup to a global identity security leader is a clear map of the evolution of enterprise security.

Given Company's Founding Timeline

Year established

CyberArk was established in 1999.

Original location

The company was originally founded in Israel, with its headquarters in Petach-Tikva.

Founding team members

The company was founded by Alon N. Cohen and Udi Mokady, who served as CEO from 2005 until 2023, and later transitioned to Executive Chairman.

Initial capital/funding

Initial funding came from venture capital firms, with a notable Series C round of $40 million in December 2011. The total funding raised before its IPO was approximately $59 million across six rounds.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory has been shaped by three major, deliberate shifts. First, the 2014 IPO provided the capital to move beyond being just a PAM vendor. Second, the pivot to a subscription-based revenue model in 2021 was defintely a game-changer for valuation and recurring revenue stability.

Here's the quick math on that model shift: CyberArk's Annual Recurring Revenue (ARR) hit $1.341 billion by Q3 2025, a 45% increase from the previous year, with the Subscription portion making up 86% of that total. That subscription focus is what drives those high valuations.

The third, and most recent, transformative moment is the aggressive expansion of the Identity Security Platform through strategic acquisitions and the ultimate announced exit.

• Platform Expansion: The acquisitions of Venafi in 2024 and Zilla Security in 2025 were critical moves to secure the full identity lifecycle, from human privileged access to machine identities and governance.
• Leadership Transition: Udi Mokady, a founder and long-time CEO, transitioned to Executive Chairman in April 2023, passing the CEO role to Matt Cohen, signaling a planned shift for the next phase of growth.
• Major Exit: The July 2025 announcement of the acquisition by Palo Alto Networks for about $25 billion in equity value is the capstone event, validating the company's market leadership and technology value.

You can look deeper into the financial impact of these moves in Breaking Down CyberArk Software Ltd. (CYBR) Financial Health: Key Insights for Investors.

CyberArk Software Ltd. (CYBR) Ownership Structure

CyberArk Software Ltd. (CYBR) is currently a publicly traded company on the NASDAQ, but its ownership structure is in a state of transition following the shareholder approval of its acquisition by Palo Alto Networks on November 13, 2025. The company is overwhelmingly controlled by institutional money, which holds the vast majority of outstanding shares, meaning strategic decisions are heavily influenced by a small number of large investment firms.

CyberArk Software Ltd.'s Current Status

CyberArk is an independent, publicly traded entity (NASDAQ: CYBR) as of November 2025, but its status is temporary. Shareholders approved the proposed merger with Palo Alto Networks on November 13, 2025, which will result in CyberArk becoming a wholly-owned subsidiary of Palo Alto Networks. The transaction is expected to close in the second half of Palo Alto Networks' fiscal year 2026, subject to remaining regulatory approvals. This means the company is currently operating with a clear, near-term exit strategy, which can impact everything from long-term R&D spending to talent retention. You should defintely factor this into any valuation model.

CyberArk Software Ltd.'s Ownership Breakdown

Institutional investors, including major asset managers like BlackRock, Inc. and FMR LLC, dominate the ownership landscape. This concentration of ownership gives these large funds significant voting power on key corporate matters, including the recent merger approval. Here's the quick math on who holds the equity as of the latest 2025 filings:

The low insider ownership of just 0.03% is typical for a mature, highly institutionalized public company, but it also means management's direct financial stake in the stock's day-to-day movement is minimal compared to the institutions.

CyberArk Software Ltd.'s Leadership

The company is steered by an experienced executive team and board, many of whom have been with the company for several years, providing stability during its shift to a subscription-based model and the current acquisition process. The average tenure for the board of directors is about 5.9 years, and for the management team, it is 2.6 years. To be fair, that's a solid level of continuity for a fast-moving cybersecurity firm.

• Matthew Cohen (Matt Cohen): Chief Executive Officer and Director, appointed to the CEO role in April 2023.
• Ehud Mokady: Founder and Executive Chairman, providing strategic oversight and continuity from the company's inception.
• Erica Smith: Chief Financial Officer, overseeing the financial strategy, especially crucial during the ongoing transition to a Software-as-a-Service (SaaS) model.
• Peretz Regev: Chief Product & Technology Officer, driving the core identity security innovation.
• Omer Grossman: Chief Trust Officer and Head of the CYBR Unit, a new role created in September 2025 to focus on customer trust and advisory services.
• Ariel Pisetzky: Chief Information Officer, succeeding Omer Grossman in September 2025 to lead IT engineering and operations.

For a deeper dive into their long-term strategic direction, you should review their core principles: Mission Statement, Vision, & Core Values of CyberArk Software Ltd. (CYBR).

CyberArk Software Ltd. (CYBR) Mission and Values

CyberArk Software Ltd.'s core purpose is to enable organizations to operate without fear of cyber threats, focusing intensely on securing every identity-human and machine-with precise privilege controls. This mission drives its market leadership in Identity Security, a critical and growing sector.

CyberArk's Core Purpose

You're investing in more than just a security vendor; you're backing a company whose cultural DNA is built around protecting the digital foundation of the modern enterprise. Their commitment goes beyond the impressive trailing 12-month (TTM) revenue of approximately $1.3 billion as of September 2025, reflecting a deep-seated belief that security should enable, not impede, business agility.

Official mission statement

The mission statement is direct and action-oriented, speaking to the ultimate outcome for their customers-a sense of security that allows for progress.

• Secure the world against cyber threats so together we can move fearlessly forward.

This is a clear mandate: eliminate fear from the digital landscape. To be fair, this mission is why over 50% of the Fortune 500 companies trust CyberArk with their most sensitive assets.

Vision statement

The vision statement maps the mission to a concrete, technical goal, underscoring their expertise in privileged access management (PAM)-the bedrock of their platform.

• Every identity secured with the right level of privilege controls.

This vision directly addresses the modern threat landscape, where a compromised identity is the number one cause of major breaches. It's all about Zero Trust and least privilege principles. Exploring CyberArk Software Ltd. (CYBR) Investor Profile: Who's Buying and Why?

CyberArk's Core Values

These values are the operating principles that guide the company's decisions, especially as they navigate a challenging market that resulted in a TTM net loss of approximately ($226.921 million) as of September 2025. They define how the team works and interacts with customers.

• Customer First: Earn trust by delivering exceptional outcomes.
• Trusted Experts: Act with integrity and demonstrate thorough domain expertise.
• Innovators: Pioneer the future of cybersecurity with market-leading solutions.
• What's Best for CyberArk: Put the team and company before self.
• Smart, Bold and Humble: Courageously pursue opportunities but embrace diverse perspectives with respect.

Honesty, the 'Smart, Bold and Humble' value is defintely a good reminder that even a market leader with a $25.87 billion market cap has to stay grounded to keep innovating.

Given Company slogan/tagline

While not a single, fixed slogan, CyberArk consistently positions itself with a clear, descriptive phrase that highlights its market standing.

• The global leader in identity security.

This positioning is a powerful signal to the market, especially given the stock's price of $512.46 as of November 10, 2025, reflecting significant investor confidence in their leadership position.

CyberArk Software Ltd. (CYBR) How It Works

CyberArk secures every identity-human, machine, and AI agent-with intelligent privilege controls to stop cyberattacks before they escalate. The company operates a unified, cloud-native Identity Security Platform that enforces Zero Trust and Least Privilege principles across an enterprise's entire digital footprint, from the datacenter to the cloud.

You're essentially buying a sophisticated digital vault and control tower; CyberArk's platform manages and monitors all high-risk access, which is why their Annual Recurring Revenue (ARR) hit $1.341 billion as of September 30, 2025, a 45% year-over-year increase. That kind of growth defintely shows the market's need for this central control.

CyberArk Software Ltd.'s Product/Service Portfolio

CyberArk Software Ltd.'s Operational Framework

CyberArk's value creation model is centered on a rapid, full-stack transition to a subscription-based, cloud-native delivery. This shift is critical because it moves them from one-time license sales to predictable, recurring revenue, which is much more valuable to investors. For the third quarter of 2025 alone, subscription revenue was $280.1 million, an increase of 60% year-over-year.

• SaaS-First Delivery: Prioritizing the cloud-native Identity Security Platform to offer greater scalability, faster deployment, and continuous updates to customers.
• Strategic Acquisitions: Integrating companies like Venafi (machine identity management) and Zilla Security (Identity Governance and Administration, or IGA) to expand the platform's breadth and address the surge in non-human identities.
• Land-and-Expand Model: Starting with core Privileged Access Management (PAM) in large enterprises and then cross-selling the full suite of cloud-delivered products like Endpoint Privilege Manager and Secrets Manager.
• AI-Powered Risk Reduction: Using Artificial Intelligence (AI) to analyze identity behavior, prioritize risks, and automate remediation, moving security from reactive to proactive.

The operational process is simple: consolidate disparate identity security tools onto one platform, making the customer's security posture stronger and their IT operations simpler. This is how they drive an average annual benefit of $3.1 million per organization for customers, according to an independent study.

CyberArk Software Ltd.'s Strategic Advantages

The company's primary competitive edge lies in its deep entrenchment in the Privileged Access Management (PAM) market, which acts as the high-security core for their entire platform expansion. They are a recognized Leader in the 2025 Gartner Magic Quadrant for PAM, which is a powerful sales tool.

• Unified Identity Security Platform: Unlike competitors with fragmented offerings, CyberArk provides a single, comprehensive platform to secure human, machine, and emerging AI identities. This simplification is a huge draw for CIOs.
• Early Mover in AI Security: Their launch of the Secure AI Agents Solution positions them to capture an emerging market for securing the identities of autonomous AI systems, a massive growth area for 2026 and beyond.
• Financial Predictability: The successful subscription transition provides strong revenue visibility. The full year 2025 revenue is projected to be between $1.313 billion and $1.323 billion, and adjusted free cash flow is expected to be between $300.0 million and $310.0 million.
• Strategic Alignment: The approved merger with Palo Alto Networks in November 2025, pending regulatory approval, is expected to enhance their market positioning and operational capabilities significantly, creating a powerful growth engine.

To see a deeper dive into the institutional money backing this strategy, you should read Exploring CyberArk Software Ltd. (CYBR) Investor Profile: Who's Buying and Why?

CyberArk Software Ltd. (CYBR) How It Makes Money

CyberArk Software Ltd. primarily makes money by selling its identity security platform as a subscription service, moving away from the old perpetual license model to a predictable, recurring revenue stream.

The company secures what is arguably the most critical asset in any organization: the identity-human, machine, and now even AI agents-through a cloud-delivered model, which means customers pay an annual fee to access the software and its continuous updates.

CyberArk Software Ltd.'s Revenue Breakdown

The shift to a subscription-first model is now essentially complete, which is a great sign for future revenue predictability. In the third quarter of 2025, the subscription segment drove the vast majority of the top line, reflecting strong customer adoption of their cloud-based solutions like Privilege Access Management (PAM) and Identity and Access Management (IAM).

Business Economics

CyberArk's business model is a high-margin software-as-a-service (SaaS) engine built on a 'land and expand' strategy, which is the gold standard in enterprise software.

• Recurring Revenue Dominance: The core financial health indicator, Annual Recurring Revenue (ARR), hit a massive $1.341 billion as of September 30, 2025, up 45% year-over-year.
• Subscription Transition: The subscription portion of that ARR is now $1.158 billion, representing a powerful 86% of total ARR. That's a huge jump from 79% just a year ago, showing the market is defintely buying into the cloud transition.
• High Switching Costs: Identity security is deeply embedded into a customer's IT infrastructure, creating significant switching costs. Once a company uses CyberArk to manage privileged access, migrating to a competitor is incredibly difficult and risky, locking in that recurring revenue.
• Strategic Valuation: The pending acquisition by Palo Alto Networks, announced in July 2025 for approximately $25 billion in equity value, validates the high strategic value of this identity security platform in the broader cybersecurity landscape.

The economics are simple: get a customer on the platform (land), and then sell them more modules-like securing machine identities or developer secrets-as their security needs grow (expand).

CyberArk Software Ltd.'s Financial Performance

Looking at the 2025 numbers, the financial picture is one of high growth coupled with improving profitability on a non-GAAP basis, which is what you want to see in a scaling SaaS business.

• Total Revenue Guidance: For the full fiscal year 2025, CyberArk expects total revenue to land between $1.313 billion and $1.323 billion, which represents a healthy 31% to 32% growth over 2024.
• Operating Profitability: Non-GAAP operating income for Q3 2025 was $64.8 million, translating to a strong 19% operating margin, up from 15% in the same period last year. This shows the growth is becoming more efficient.
• Cash Flow Strength: The company generated $51.3 million in adjusted free cash flow in the third quarter of 2025. This cash generation is critical, especially when you consider the acquisition-related costs they are absorbing right now.
• Nine-Month Revenue: Total revenue for the first nine months of 2025 reached $988.47 million, putting them on a clear path to hit their full-year guidance.

To really dig into the sustainability of these numbers and the implications of the Palo Alto Networks deal, you should check out Breaking Down CyberArk Software Ltd. (CYBR) Financial Health: Key Insights for Investors.

Here's the quick math on the cash position: CyberArk ended Q3 2025 with $1.964 billion in cash, equivalents, and marketable securities, giving them a huge cushion.

CyberArk Software Ltd. (CYBR) Market Position & Future Outlook

CyberArk is the established global leader in Privileged Access Management (PAM) and is aggressively pivoting to dominate the broader Identity Security market, a total addressable market (TAM) estimated at $50 billion. The company's future is now inextricably linked to Palo Alto Networks, following the shareholder approval of the $25 billion acquisition in November 2025, setting the stage for a major platform consolidation in cybersecurity.

Competitive Landscape

CyberArk's core strength remains its deep expertise in securing privileged credentials and secrets, a segment where it consistently ranks as a leader. However, the competitive landscape is shifting as all players expand into full Identity Security platforms, encompassing Identity Governance and Administration (IGA) and Access Management. This is a crowded space, so the key is platform breadth and execution. You can see the breakdown in the core Privileged Access Management (PAM) segment below, which is an estimated representation of market presence based on analyst rankings as of 2025.

Here's the quick math: the overall PAM market is projected to reach $4.25 billion in 2025, and CyberArk's leadership is based on its comprehensive, platform-first approach.

Opportunities & Challenges

The company's strategic roadmap centers on securing the proliferation of non-human identities, a trend where machine identities now outnumber human ones by a factor of 82 to 1. The biggest near-term risk is the integration with Palo Alto Networks, which must be seamless to avoid customer disruption. Exploring CyberArk Software Ltd. (CYBR) Investor Profile: Who's Buying and Why?

Industry Position

CyberArk is positioned as the definitive leader in the foundational Privileged Access Management (PAM) space, a distinction confirmed by its recognition as a Leader in the 2025 Gartner Magic Quadrant for PAM. This is defintely the company's anchor. Its Q3 2025 results show strong momentum, with Annual Recurring Revenue (ARR) reaching $1.341 billion, a 45% year-over-year increase, and subscription revenue up 60% to $280.1 million.

• Platform Breadth: The company has successfully expanded its Identity Security Platform to cover the full identity lifecycle, including workforce and customer identities, moving beyond its traditional PAM niche.
• AI-First Security: The early launch of a dedicated solution for securing AI agents positions CyberArk to capture the next wave of identity-based threats, a major concern for CISOs in 2025.
• Financial Transition: The shift to a subscription-based model is nearly complete, with the subscription portion of ARR growing 57% and representing 86% of total ARR as of September 30, 2025. This transition is driving the strong revenue growth, but still causes the short-term GAAP losses.

The pending acquisition by Palo Alto Networks will transform CyberArk from a standalone leader in a niche to a core, integrated component of a massive, comprehensive security platform, effectively changing its industry standing overnight.