Check Point Software Technologies Ltd.

Worth knowing

• Profit looks boosted by one-off gains. Reported profit is 1.2× operating cash profit (EBITDA), lifted by income outside the core business.Reported profit is 1.2× operating cash profit, lifted by income outside the core business.

  Check Point Software Technologies's reported profit is 1.2× its operating cash profit (EBITDA), which is unusual: normally it's the other way round. Income outside the core business, such as interest on a large cash pile, gains on investments or asset sales, or tax items, has lifted net income, so its earnings-based valuation may look cheaper than the business alone justifies.Check Point Software Technologies's reported profit is 1.2× its operating cash profit, which is unusual: normally it's the other way round. Income outside the core business, such as interest on a large cash pile, gains on investments or asset sales, or tax items, has lifted net income, so its earnings-based valuation may look cheaper than the business alone justifies.

• Returning more cash than it generates. Paid out $4.0B vs $3.2B of free cash flow over the 3 fiscal years to 2025.

  Check Point Software Technologies returned $4.0B to shareholders over three years, 124% of the free cash flow it produced. That gap has to be covered by cash reserves or new debt, which can't last indefinitely.

• Operating margin at a 6-year low. 30% in 2025, the weakest of the last 6 years.

  Check Point Software Technologies's operating margin fell to 30% in 2025, its lowest in the 6 years of filings we have.

• Sales growing faster than profits. Since 2022: revenue +17%, operating profit −6.0%.

  Since 2022, Check Point Software Technologies's revenue changed +17% while operating profit fell 6.0%: costs rose faster than sales.