Q2 2025 Check Point Software Technologies Ltd Earnings Call

July 30, 2025

Yeah.

[music].

Kip Meintzer: Meet today are our Chief Executive Officer, Nadav Zafrir, and our Chief Financial Officer, Roei Golan. Before we begin, I'd like to remind everyone that this conference is being recorded and will be available for replay on the website checkpoint.com. During this formal presentation, all participants are in a listening mode that will be followed by a Q&A session. During this presentation, Check Point representatives may make forward-looking statements. Forward-looking statements generally relate to future events or our future financial or operating performance. These statements involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statement. Any forward-looking statements may speak only as of the date you give up, and Check Point is undertaking no obligation to update publicly any forward-looking statement.

Operator: Meet today are our Chief Executive Officer, Nadav Zafrir, and our Chief Financial Officer, Roei Golan. Before we begin, I'd like to remind everyone that this conference is being recorded and will be available for replay on the website checkpoint.com. During this formal presentation, all participants are in a listening mode that will be followed by a Q&A session. During this presentation, Check Point representatives may make forward-looking statements. Forward-looking statements generally relate to future events or our future financial or operating performance. These statements involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statement. Any forward-looking statements may speak only as of the date you give up, and Check Point is undertaking no obligation to update publicly any forward-looking statement.

Before we begin I would like to remind everyone that this conference is being recorded and will be available for replay on our website at checkpoint dotcom. During the formal presentation. All participants are in a listen only mode that will be followed by a Q&A session. During this presentation check Point's representatives may make forward looking statements.

Forward looking statements generally relate to future events or our future financial or operating performance.

Statements involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward looking statements any forward looking statements made speaks only as of the date hereof and checkpoints after undertakes no obligation yes.

Update publicly any forward looking statements in our press release, which has been posted on our website, we present GAAP and non-GAAP results along with reconciliation of such results as well as the reasons for our president Jason or non-GAAP information. If you have any questions. After the call. Please feel free to contact Investor relations by E.

Kip Meintzer: In our press release, which has been posted on our website, we present GAAP and non-GAAP results, along with the reconciliation of such results, as well as the reasons for our presentation on GAAP information. If you have any questions that have caused these, feel free to contact our press relations by emailing kip@checkpoint.com. Now, I'd like to turn the call over to Nadav.

Kip Meintzer: In our press release, which has been posted on our website, we present GAAP and Non-GAAP results, along with the reconciliation of such results, as well as the reasons for our presentation on GAAP information. If you have any questions that have caused these, feel free to contact our press relations by emailing kip@checkpoint.com. Now, I'd like to turn the call over to Nadav.

<unk> kept that checkpoint dot com now I would like to turn the call over to Nevada.

Nadav Zafrir: Hey everyone. Good morning to you, and thanks for joining today. As you already know, our industry is undergoing a generational transformation. It's marked by unprecedented change, and I think more importantly, the unprecedented pace of change. We're still in the very early innings of this revolution, and I believe that at Check Point, you know, we're well positioned to lead it. In this call, I want to take some time to talk a little bit about our fighting principles and our vision. Obviously, before elaborating, I'd like to share we have solid order, both revenue and EPS aligned with our outlook. There was relatively back-end loaded in some of the other flipped fields that have already proposed in the last few weeks. The Q3 is shaping up well with a strong indicator so far in July.

Hey, everyone. Good morning to you and thanks for joining us today.

As you already know our industry is undergoing a generational transformation.

Marked by unprecedented change and I think more importantly, the unprecedented pace of change.

We are still in their very early innings of this revolution and I believe that a checkpoint, we're well positioned to lead it.

And in today's call I want to take some time to talk a little bit about our guiding principles and our vision.

Obviously before elaborating I'd like to share we had a solid quarter, both revenue and EPS in line with our outlook.

It was relatively back end loaded and resulted in some of our slip deals that have already closed in the last few weeks.

The third quarter is shaping up well with the strong indicators. So far in July beyond that we see a very healthy pipeline for the remainder of the year and so we are reiterating our 2025 guidance and of course Roy will elaborate.

Nadav Zafrir: Beyond that, we see a very healthy climb for the remainder of the year, we're reiterating 2025 guidance. Of course, Roei will elaborate about the financials and the outlook shortly. If you bear with me for a few minutes, I'll try to be very brief. To lead the future, we're focused on four guiding principles. Number one, security and connectivity fabric. Number two, prevention versus Zero Trust. Three, an open platform philosophy. Finally, an AI versus security. The modern connectivity fabric is hyper-connected, it's not only a critical infrastructure for every digital transaction, it's also become a potential source of knowledge that can provide the ability to read between the nodes, revealing patterns, anomalies, emerging threats. I think that that's something we must embrace.

The financials and the outlook shortly.

So if you bear with me for a few minutes I'll try to be very brief.

To lead the future we're focused on four guiding principles.

Number one securing the connectivity fabric number two a prevention first ethos three an open platform philosophy, and finally and AI for security.

The modern connectivity fabric as high priority Hyperconnected and it's not only a critical infrastructure for every digital transaction, but it's also become a potential source of knowledge that can provide the ability to read between the nodes.

Revealing patterns as anomalies emerging threats.

And I think thats, an opportunity we must embrace.

Nadav Zafrir: I can tell you that Q2 are responsible for AI-powered firewalls posted in Q1, growing to 12% year-over-year, driven by refreshed momentum, and are growing to manage all the other AI-powered inspection. We'll continue to accelerate our investment in SASE. We've opened an R&D center in India coming up next week to double the size of our SASE R&D team. We're already seeing the momentum that comes with that, sort of a steady growth across all regions. Recently, this project was also acknowledged with our inclusion at 2025 by the Gartner Magic Quadrant, and also the recognition as the leader of the Forrester Wave for Zero Trust Platforms. On the workspace front, as I shared in a previous call, we continue to make progress under Gil Friedrich's leadership.

I can tell you that in Q2, our quantum force AI powered firewalls.

Posted another robust quarter growing 12% year over year, it was driven by the refreshed momentum.

And a growing demand altogether from AI powered inspection.

We also continued to accelerate our investments in SaaS fee. We've opened a new R&D center in India, that's coming up nicely with double the size of our SaaS. The R&D team and we're really seeing the momentum that comes with that with sort of a steady growth across all regions.

Recently, our progress was also acknowledged with our inclusion in 2025, Gartner Magic quadrant for Saucy and also the recognition as a leader in the Forrester wave four zero plus a platform for zero Trust platforms.

On the workspace front as I shared in our previous call. We continued to make progress under <unk> leadership. The workspace platform now brings together endpoint E mail and SaaS security and.

Nadav Zafrir: The workspace platform now brings together endpoints, email, and SASE security, ultimately helping our customers' operations and improve protections. Also under Gil, we're also expanding our MSP and KSQL offerings so that we can force onboarding and flexible consumption models. This is contributing to a steady customer growth, tens of thousands of new customers and millions of users are joining annually through this program. To summarize the first principle, our vision is to securely connect and optimize security across devices, networks, users, and clouds. To do that, we need to look at a holistic solution that ultimately delivers a consistent, unified security across what we call the Hybrid Mesh, the modern Hybrid Mesh network. The second principle out of four is prevention first. You know, it's been foundational Check Point forever that we must strive to attack before they cause damage.

And ultimately, helping our customers operations and improve protections.

And also under Gil we're also expanding our MSP and.

And pay as you go offerings, just so that we can support onboarding and more flexible consumption models and this is contributing to a steady customer growth tens of thousands of new customers and millions of users are joined annually through this program and so to summarize the first principle, our ambition is to securely connect and.

Optimize security across devices networks users and clouds and.

And to do that we need to look at it as a holistic solution that ultimately delivers a consistent unified security across what we call. The hybrid the modern hybrid Nash mesh network.

The second principle out of four is prevention first.

It's been foundational for checkpoint forever.

We must strive to stop attacks before they cause damage.

Nadav Zafrir: Preventing attack may not be glamorous. It's difficult to repeat sort of acknowledgments, things that did not happen. At the end of the day, it's like a constant behind-the-scenes effort that requires discipline, smart design, and a practical mindset. You know, true prevention by acting in real time. You need to drop zero to efficiency before your user engages so that you can also block or exploit where it runs. The secret sauce is to be able to deliver this in real time so that you can get prevention without a negative impact on the user experience. That's the hard part. We take intelligent engines that are working silently across data streams and are now driven by AI that make those sleepless decisions without disruption. It may not be flashy, but it's foundational.

Now preventing attacks may not be glamorous its.

Difficult to receive sort of acknowledgment for things that did not happen.

At the end of the day, it's like a constant and behind the scenes effort that requires disciplined smart design and our proactive mindset.

And true prevention is about acting in real time, and you need to stop zero day fishing side before you user engagements.

So that you can also block locked for Jay exploit before it runs.

And the secret sauce is to be able to deliver this in real time. So that you can get prevention without a negative impact on the user experience and that's the hard part and he takes intelligence engines that are working silently across data streams and are now driven by AI.

And make those split second decisions without disruption.

It may not be flashy, but it's foundational.

Nadav Zafrir: In some ways, I'm seeing a renaissance of the importance of prevention, especially when we look at an AI-driven threat landscape. You know, expanding really fast. Just last week, the SharePoint 2.0 vulnerability was exposed. It's a vulnerability that affects on-premise Microsoft SharePoint servers. At the end of the day, it allows authenticated attackers to gain full access. Our customer Check Point were protected. We also enhanced our prevention stack with the Veriti acquisition, which we announced recently. This is now by automated threat intelligence and real-time mediation. I think that this is just acquisition decisions at the forefront of prevention and threat exposure management. It strengthens our leadership in proactive cybersecurity. Moving on to our next principle, it's all about an open platform. You know, there are different ways that we can approach a cybersecurity philosophy.

And in some ways I'm seeing a renaissance of the importance of preventing especially when you look at the AI driven.

<unk> threat landscape. It is expanding really really fast just last week, the sharepoint to shale zero day vulnerability was exposed.

It's a vulnerability that FX on premise, Microsoft Sharepoint servers in it.

At the end of the it allows our authenticated attackers to gain full axis.

And our customers are checkpoint we're protected.

We also.

Enhance our prevention stack with the Verde acquisition, which we announced recently and this now provides an automated threat intelligence and real time remediation I think that this acquisition positions us at the forefront of preemptive prevention and threat exposure management and it strengthens our leadership in <unk>.

Active cyber security.

Moving on.

To our next.

Principal.

It's a.

It's all about and open platform.

There are different ways that.

That we can approach a cyber security philosophy.

Nadav Zafrir: We believe that an open platform is the right approach. When we speak about an open platform, it's the ability to not for us to create the core networking fabric pulling everything together, but being able to collaborate and create an extensible collaborative situation for our platform. Philosophically, I believe that an open platform is also going to make you more resilient. I believe that trying to go for an all-in-one catalog of options actually makes you more brittle and fragile. You know, the acquisition that we just made of Veriti gives us another capability to put together 70 other vendors that work together with us. That's the open platform strategy. Finally, we are embracing AI as a new tool. This means not only that we have cool LLMs that organizations are bringing together, but actually it's a shift in mindset.

We believe that an open platform is the right approach.

And when we speak about an open platform, it's the ability to not to for us to create our core networking fabric pulling everything together, but being able to collaborate and to create an extensible collaborative situation for our platform.

Sure.

Philosophically I believe.

Is that an open platform is also makes you more resilience.

Resilience and I believe that trying to go for an all in one.

Catalog for up off the option actually makes you more brittle and fragile.

And you know again the acquisition that we just made a verity.

Gives us another capability to put together 70 other vendors that work together with.

With us and Thats the open platform strategy.

And then finally.

We are embracing AI as.

As a new tool. This means not only that we have cool lenses that organizations are bringing together.

But actually it's a shift in mindset.

Nadav Zafrir: Because if AI is going to make decisions for us, we're going to have to trust AI to make those decisions, those predictions going forward. This is a major change in our industry. At Check Point, we now have an AI engine that runs to allow our customers to use AI and pursue some of the popular AI capabilities that we see. We're also embedding it in any one of our products. This takes us, I think, to the forefront of embedding AI, using AI to simplify and to provide a unified management that is actually making our customers' lives easier. Long story short, we've spoken to you about four principles. They're important for our vision going forward. I think we're well positioned to lead the future of cybersecurity based on those four principles and our vision of the open platform.

Because if that guy is going to make decisions for us we're going to have to trust AI to make those decisions those predictions going forward.

And this is a major change in our industry.

At checkpoint. We're now we now have an AI engine that runs to allow our customers to use AI on the personal level, though.

Oh, all the popular AI capabilities that we see.

And we're also embedding it in and each one of our products and this takes us I think to the forefront of embedding AI using AI to simplified and <unk> to provide a unified management.

That is actually making our customers' lives easier so.

Long story short we've spoken I've spoken to you about the four principles.

Portland for our vision going forward and I think we are well positioned.

To.

Lead the future of cyber security based on those four principles and our vision of the open platform and with that I'll turn it over to Rohit.

Nadav Zafrir: With that, I'll turn it over to Roei.

Roei Golan: Thank you, Nadav. Let me just open the presentation. One moment. I'll leave it in a moment. Can you see my screen? Great. Okay. Great. Sorry for the delay. As I've indicated, we had a great quarter. I think Roei exceeded our midpoint of projection by bringing in $665 million. Our non-GAAP EPS was $2.27 in the midpoint of our projection. That's a 9% growth yield. Moving to the results, as I mentioned, the revenue grew by 6%. That was mainly driven by a strong quarter and another strong quarter of other revenues that is driven by strong customer demand for new appliances and a higher volume of audit research. I emphasize that this is a cycle that continues in development in our platform and broader adoption of our latest technologies.

Thank you and that does.

Let me just open the public consultation.

Sure.

Okay.

Yeah.

Okay, one moment, one moment they have some issue here.

In a moment.

Okay.

So a.

Can you see my screen.

Great.

Okay, great sorry for the delay so as <unk> indicated to add a great quarter I think our revenues exceeded our project add Amit point of our projection by pre made on an ex <unk>.

$665 million and Wilma aim and our non-GAAP EPS was $2 37, 10, and the midpoint of our projection presenting 9% growth year over year.

So moving to our results as I mentioned, our revenues grew by 6% and that was mainly driven by a strong quarter. Another strong quarter of fall product revenues that said driven by strong customer demand for our planned new appliances and higher volume of product re Felicia.

I have to say that this LIFO speculate that continuous investment in our platform and broader adoption of our latest technologies, our quant of both technology and.

Roei Golan: Our Quantum Tools technology was released a year ago. As a result of this research, a large portion of our deals were bundled, including subscription and info. We also had a discount compared to the standard revenue model. This dynamic led to a slightly deceleration in our subscription revenues and a slightly declining in our forward revenues for the quarter. However, we view this as a positive trend for the long term, as this is strengthening the customer relationship, expanding our employee-based position for increasing annual revenues and after-opportunities in the future. As for the dealing, the calculated dealing grew by $4.642 million this quarter. Our RPO grew by 6% and reached $2.4 billion this quarter. This quarter, as I've indicated, was heavily taken load, resulting in several deals that were pushed from the last date to the third week of July, and were all closed.

He'll ago and as a result of this ruthlessness allows us a portion of our deals were bounded including subscription and support and we'll offer the discount level compared to standard on renewals.

Dynamic led to dip slightly accelerating our subscription revenues and declining all support a slight decline in our support revenues for the quarter. However, we view this as a positive trend for the long term. This is correct and the customer relationships expand our install base and position us for increased lineal installed revenues and <unk>.

The opportunities in the future.

As for the billings, so the calculated billing grew by 4% to $642 million this quarter.

<unk> grew by 6% and reached $2 $4 billion this quarter.

This quarter is not that indicated was heavily backend loaded resulting is several deals that were pushed from the last few days to the first two weeks of July and we have already closed.

Roei Golan: These deals alone contributed to 70 deals effective available by approximately 3 points. That will benefit us in Q1. As a reminder, in the same quarter last year, we had 3 more deals totaling $102 million, which also added significant impact on our RTO last year. Moving to our revenue geographies, we looked at our US demand grew by 5% this quarter, while APAC had a strong quarter, WWD growth, and reached 15% growth earlier this quarter. Moving into P&L, our gross profits increased by $557 million and $585 million, representing a gross margin of 88%. Our operating expenses increased by 7%. This increase is mainly as a result of continuing investments in our workforce guidance and also the APAC-related cyber-related acquisitions that a minor cyber required during Q3 2024 and early completed acquisition during June this quarter.

This along with looking at both fields.

Seven digit deals affect our billings by approximately three points, so that will benefit us in the first quarter ethylene mind Bill in the same quarter last year, we added three more deals totaling $130 million, which also had a significant impact on our IPO last year.

Okay.

Moving to our revenues by geographies. So we are looking at our Americana, Matt rule by 5% this quarter, while APAC APAC had a strong quarter with double digit growth and reached 15% growth <unk> this quarter.

Moving into our P&L. So our gross profit increased by 557 million to 585 million, representing a gross margin of 88% our operating expenses increased by 7%. This increase is mainly as a result of our continued investment in our workforce organically and also the <unk>.

But related to fiber and convert the acquisition data reminds US tablets, we acquired during Q3 2024, and Verity AOE completed acquisition. During June this quarter. Our non-GAAP operating income continues to be strong at $271 million or 41% margin I think it's important to discuss those with the FX.

Roei Golan: Our non-GAAP operating income continues to be strong at $171 million for 1.1% margin. I think it's important to discuss also the FX impact. The oil is the revenue dollar is within its most currencies, and especially against the ILS, given that we are approximately 50% of our operating expenses are denominated in non-USD currencies and mainly shekel, and we are not adding 100% of these expenses. This currency movement is also an estimated 0.1 point adding to our margin this quarter. If I'm looking at the second half of the year, although we had a significant portion of our foreign exchange exposure, we're still going to have an impact because, again, we are not adding 100% of our foreign currency, and we would expect to see a headwind approximately after 0.1 point if the ILS staying at this level. That's important to say.

The impact as we all see the U S. Dollar is weakening because most of the currencies and especially against the Israeli shekel given that we are approximately 50% of our operating expenses are denominated in non USD currencies and mainly the shekel and we're not hedging 100% of these expenses.

This currency move a mental dosing and estimated asset point headwind to our margin this quarter, if im looking on the second half of deal.

Although we add significant portion of our <unk> exchange exposure.

We still going to have an impact because again, we are not adding 100% of our overall foreign currency and we do expect to see a headwind of approximately <unk> five point to one point each.

If the U S dollar would stay at this level. So that's important to say and if we're looking into 2026, so if the ethics.

Roei Golan: Also looking in 2026, if the FX rate would stay at this level, this will increase our operating expenses by approximately $50 to $60 million. Moving into our cash flow, we had a strong operating expense this quarter, achieved $162 million, a 31% growth yield. I think it's important to mention that it included a benefit for $50 million from agent transactions, offset by $6 million in Veriti acquisition. Our cash balance was $2.9 million, now we continue to do our buyback and purchase $1.5 million at an average price of $120 million. We acquired Veriti liquidity that was a net cash flow of around $90 million that was also part of the cash flow for this quarter. Two notes regarding the next quarter, regarding Q3, between our cash flow, we have two items.

We'll stay at this level. So this could increase our operating expenses next year by approximately $50 million to $60 million.

Moving into our cash flow. So we had a strong operating cash flow this quarter.

$262 million.

31% growth <unk> I think it's important to mention that it includes the benefit for a $50 million from hedging transaction offset by $6 million related to our Verity acquisition our.

Our cash balance was $2 9 billion and now.

We continue to do our buyback and then purchased one 5 million shares at an average price of 228 $20.

Also we acquired <unk> during the quarter that was a net cash of around $90 million and Thats also part of the cash flow for this quarter.

And.

To note regarding the next quarter I got regarding Q3 that will impact our cash flow. We have two way two item that first week, we announced that we acquired the land for bipolar a building on new checkpoint checkpoint campus in Tel Aviv, and Israel and we completed this equate this.

Roei Golan: We announced that we acquired a land for building on each Check Point campus in Tel Aviv, Israel. We completed this purchase during July and paid a total of $160 million for that land. We do not expect any significant additional investment in CapEx connection with campus until the beginning of 2027. Another item relevant for the Q3, the cash flow, part of tax assessment was recently signed last week, actually. For file yields, we're going to pay approximately $66 million during the Q3 to set up this tax-executed file yield. As we had a higher provision in connection with this dispute, this settlement may also have a positive impact on our Q3 P&L and EPS. We are still assessing this settlement just signed 2 days ago. We are still assessing this effect. This potential impact is not detected in the guidance.

Purchased during July and paid a total of $160 million.

And put that plan, we do not expect any significant.

Additional investment in Capex in connection with its campus until the beginning of 2027.

In addition in other items relevant for the for the first quarter for the cash flow as part of tax settlements recently signed a lease in fact last week actually for prior years, we're going to pay approximately $66 million.

During the first quarter to settle it.

Tacky tack this beautiful bio yields as we had higher provision in connection with this dispute. This settlement may also have a material positive impact on our first quarter P&L in EPS. We are still as this settlement with just a few days ago. We are still assessing the effect and please note that this potential impact is notwithstanding into guiding them I'm going to.

Roei Golan: I'm going to share with you next slide. Summarize our Q2 revenue and EPS in line with our projection. Accelerated Quantum Force for clients in our Q2 in the world WWD continues strong demand for email touching engineering. Very important. We see continued strong demand and another strong capability was great operating amount and strong operating cash flow. Before we move to Q&A, I'm going to move the guidance for the next quarter. As Nadav indicated, we started July this quarter very strong. We have some internal indicators, and altogether, we did push from the Q2 also with the final entities that already closed in July. The remaining reports feel very positive about the Q3 and many deals. Our guidance for the Q3 is between $667 and $687, midpoint $667.

Share with you in the next few slides.

So to summarize our second quarter revenues and EPS in line with our projections accelerated quantum of Autoplastic demand second quarter in a row of double digit continuous strong demand for email SaaS in E. R M being very important.

We do see strong continued strong demand during that.

And another strong profitability quarter with great day opt.

Operating margin and earnings.

Strong operating cash flow.

Before we move to the Q&A I'll move to the guidance for next for the next quarter.

So as.

As Matt indicated we started July has started this quarter very strong and we see we're looking we have some indicators internal indicators then of course together also with the deals that were pushed from the second quarter, but also with the panel.

And they did that already closed in July and the funnel that we have for the remaining of the quarter, we feel very positive about the third quarter and the remaining of deal.

Our guidance for the third quarter.

It is between 657 to 687 midpoint seats of 672, our non-GAAP EPS is between $2 40 to $2 58.

Roei Golan: Our non-GAAP EPS is between $2.40 and 2.50, while the GAAP EPS is expected to be approximately $0.68 less. As for the full year, we are not changing the guidance. The guidance stays the same. Same range that we gave you in the beginning of the year. We're still positive. We'll be able to continue the higher end of the guidance, but still the range is same and same for the EPS and revenue news. The GAAP EPS is expected to be $2.03 less. Thank you. Kip.

Aim.

And while the GAAP EPS is expected to be approximately 68 cents less.

For the full year, we're not changing the guidance the guidance stays the same same range that we gave you in the beginning of deal we feel positive that we'll be able to finish in the high end of the guidance, but the range is the same and same for the EPS and revenues and a GAAP EPS is expected to be $2 30.

Thank you.

Keep.

Kip Meintzer: All right. Now we'll move to Q&A. First up today will be Adam Tindle, followed by Saket Kalia via the event.

Alright.

Now, we'll move to the Q&A and first step today, we will be Adam tindle.

By tally Ani of Bofa.

Adam Tindle: All right. Thanks, Kip. Good morning, Nadav. I just want to say maybe start with the elephant in the room here with the announcement that Palo Alto is acquiring CyberArk and the $25 billion deal. As I relate to your comment specifically to Check Point, you're talking about how an open platform is the right approach. I'm wondering if you could maybe just expand on that area as we're thinking it may make more sense to partner versus maybe own or acquire. Certainly, any comments you could make on the identity space given that large transactions in one morning. Thank you.

Alright, Thanks, Kip good morning, Doug.

Wanted to maybe start with the elephant in the room here with the announcement that Palo Alto is acquiring cyber Ark in the $25 billion deal.

And as it relates to your comment specifically to checkpoint you're talking about how an open platform is the right approach. So I'm wondering if you could maybe just expand on that areas, where youre thinking it makes more sense to partner versus maybe one or acquire and certainly any comments that you could make on the identity space given that large transaction. This morning.

<unk>.

Nadav Zafrir: Yeah. Thanks, Adam. Yeah. Well, sure. Very interesting announcement. Impact on us is, I think, minimal. We're not a player in the identity space. As I said, our vision is focused on where we think we can do best. In my opinion, it's the breadth of the connectivity fabric. That has the, I would mention, one side worse space on the other side, and creating a unified platform for everything quantitatively fabricated. On top of that, winning with AI. Having said that, our philosophy is to focus on an open platform. To focus on an open platform for a couple of reasons.

Yes, Thanks, Adam Yes.

Sure.

Very interesting announcement.

The impact on US is I think minimal.

As we're not a player in the identity space and as I said, our vision is to focus on.

Where we think we can do best in my opinion, it's the breadth of the connectivity fabric and that has the hybrid mentioned one side worst for workspace on the other side and creating a unified platform for everything connectivity fabric and on top of that winning with AI.

Having said that.

Our philosophy is to focus on an open platform to focus on an open platform for a couple of reasons.

Nadav Zafrir: Number one, when I spend my time speaking to dozens of CISOs a month, at least when you go to the enterprise and up, I think that between this idea of a best of 3 and best of 2 dilemma, an open platform is the right approach. It's unified layers, deeply integrated, allowing you to be extensible, collaborative. That's from the CISO perspective. Also, they don't want to be in an investor lock. I can tell you as someone that's been in the industry on all of its sides for many, many years, I also think an open platform makes more sense from a security perspective if you're thinking about the hackers. You don't want to have a monolithic approach. You don't want to come from one shop with the same philosophy, same software, same people, same intelligence.

Number one.

When I spend my time speaking to dozens of <unk> a month.

<unk>.

At least when you go to the enterprise end up.

I think that between this.

Best of breed and best of suite dilemma.

And open platform is the right approach is it's unified layers deeply integrated allowing it to be extensible collaborative.

That's from the CFO perspective, and also they don't want to be in a vendor lock I.

I can tell you is some of thats been in the industry and all of its side for many many years I also think an open platform.

Makes more sense from a from a security perspective, if you think about the attackers you don't want to have a monolithic approach you don't want to come from a one shop with the same philosophy same software same people same intelligence.

Nadav Zafrir: You want to have an open approach to it that allows you to have sort of an open garden approach that allows you to import and use different platforms working together. I think that this is not a technical framework, but it's a real differentiator and our vision and approach to the market.

Want to have an open approach to it that allows you to have sort of a an open garden an approach that allows you to imports and to use different platforms working together.

And I think that this is not a technical framework, but it's a real differentiator and our vision and approach to the market.

Kip Meintzer: Thanks.

Thanks.

Adam Tindle: Up next is Saket Kalia of UTI via the event, followed by Joseph Gallo from Zachary.

Up next is Galliani of Bofa, followed by Joseph Gallo from Jefferies.

Saket Kalia: Hey, Nadav. Good morning. Question. I looked at the row 61%. You're building row 65 as the delayed deals that list. We're not seeing acceleration. The question I asked the same question last quarter. I asked, what about focusing on understanding? What are the challenges you see in accelerating growth? Meaning, I understand what you're doing, but it does take time. It looks like it takes time from the numbers perspective. What are the challenges? When you talk about operational challenges, culture challenges, product challenges, go-to-market challenges, can you just discuss what presents a company today from accelerating growth and what would take for the growth to accelerate in the future?

Okay.

Good morning.

<unk>.

Could give growth, 6% youre billing growth, even if I add the delays.

The deals that slipped.

We're not seeing acceleration and the question I ask you. The same question last quarter I asked.

What I wanted to focus on is to understand.

What are the challenges that you see in accelerating growth meaning.

I understand what youre doing but it does take time it looks like it takes time from the numbers perspective. So what are the challenges when you talk about operational challenges cultural challenges.

Product challenges go to market challenges can you just discuss what prevents the company today from accelerating growth and what would take for the growth et cetera in the future.

Nadav Zafrir: Yeah. Well, Fred's been calling. You're right. It's not an overnight shift. It's a vision. You have to have principles. You have to make investment. That's number 1. Number 2, as I said, this is something that is already coming around. It's building the right go-to-market approach and sense of urgency culture. We're doing all of that. Like you said, it's not something that's going to happen overnight. Having said that, I don't think that there is a specific challenge. I think we have the right product. I think we're in the right market. I think we have the vision. We need to focus on what we do best, on executing it, and operating in the right market. That's the plan.

Yes, great question, Tal and Youre right its not an overnight shift.

It's a vision you have to have the principal then you have to make the investment that's number one number two is as I said and this is something that is already coming around is building. The right go to market approach in the sense of urgency culture.

And we're doing all of that.

But like you said its nothing thats going to happen overnight, having said that I don't think that there is a specific challenge I think we have the right products I think we are in the right market I think we have the vision, we need to focus on.

What we do best on executing it and up our game and go to market and Thats the plan.

Saket Kalia: Got it. Would you say that if you had to kind of rank in order the things you're dealing with, would you say that most of the focus is on go-to-market or most of the focus is on improving portfolio? Where is the focus of the company that drives growth acceleration?

Got it and then would you would you say that if you have too.

Kind of rank order the things youre dealing with would you say that most of that focus is on both the market for most of the focus is on improving the portfolio, where where is the focus of the company that would drive growth acceleration.

Nadav Zafrir: I think for the short run, definitely go-to-market, right? For the short run, definitely go-to-market. Having said that, I do think we are in a pivotal time in the industry. I really believe that AI is going to change the way we live, operate, do digital infrastructure. We need to make a heavy investment here and then lead the way. If you ask me what are the three areas, one is go-to-market. We've been speaking about that. It doesn't have to happen overnight, or we're making changes. The second is heavily investing in AI. I think we're already leading with embedding AI in our own products. Number three is the culture of execution in sense of urgency. Now, it all happens in parallel. Some will have impact in the short run, some will have impact in the medium term, and some in the long term.

I think for the short term definitely go to market right for the short term definitely go to market, having said that I do think we are in a pivotal time in the industry.

I really believe that AI is going to change the way we live operate do digital infrastructure and so we need to make a hefty investments here.

And lead the way. So if you ask me what are the three areas. One is the go to market. We've been speaking about that it doesn't happen overnight, but we're making the changes.

The second is in heavily investing in AI I think we're already leading off with embedding AI and our own products.

Number three is a culture of execution and sense of urgency now it'll happen in parallel some will have impact in the short term some will have impact in the medium term and some in the long term.

Saket Kalia: Right. Right. Thank you.

Great. Thank you thank.

Nadav Zafrir: Thanks, Gallo.

Thank you Tom.

Kip Meintzer: All right. Next up is Joseph Gallo, followed by Junaid Siddiqui.

Alright next step is Joseph Gallo, followed by Genady cynically.

Adam Tindle: Hey, guys. Thanks for the question. Understanding the impact of the discounting, we can just talk through some of the compounds and why that's positive in the long term. Is it itself a factor? Where should we see some of that negativeness over time? Then any quantitative metrics regarding the performance on the new low-load side of the business. Thanks.

Hey, guys. Thanks for the question understand the impact of the discounting, but can you just talk through some of that confidence and why that's a positive long term as an upsell to SaaS year, where should we see some of that goodness over time, and then just any quantitative metrics regarding the performance on the new logo side of the business. Thanks.

Saket Kalia: Yeah. I think when I'm looking on, we have a lot of analytics. When we're looking on customers that are doing refresh, we're seeing that over time, the AI from this, I mean, I'm not talking about the clients. I'm talking only about the AI associated with this customer is increasing. Increasing nicely. We see that on the long term, maybe not on the Q3 or on the Q2, but on the long term, the AI is increasing. We have this internal identity that gives us the confidence that because we see very strong demand for these clients for more existing customers, sometimes it's coming also with cross-selling touching or email. Even without it, we see that even with the firewall, we see that the AI is increasing over time when we are buying from other clients.

Yes sure.

Do you want to buy out of that.

Yes, Okay. So I think when I'm looking on on we have our internal indicators when youre looking on the on the customer that they are doing refresh that we're seeing that over time. They all from this amount I'm talking about the appliances I'm talking only about the AI associated with this customer is increasing in.

Increasing nicely and we see that on the long term maybe not on the first quarter in the second quarter, but on the long term AI is increasing so we have we have this internal in the indicators are fully confident that because we see very strong demand for beef.

Appliances from our existing customers some time, it's coming also.

Cross selling SaaS fee or E mail or E. R M, but even without that we see that even with the firewall. We see that the AI is increasing all the time and they are buying commodity appliances. So therefore, we feel confident not only this quarter. We believed we would see this indicator global deals.

Saket Kalia: Therefore, we see confidence not only in this but we see the indicators over the years. Nadav, do you want to add on something?

And that we want to add around the Samsung Yes to your question on where we see we're seeing the growth I would say.

Nadav Zafrir: Yeah. To your question on where we're seeing growth, I would say two main areas. Number one is the new product line, right? If you look at email, SASE, those are growing above 40% year-over-year, right? It's very healthy growth. As I said, we just doubled the size of our SASE team, and we're making a huge effort to grow it as fast as we can. The other place is what we call the Infinity platform that at the end of the day, I think we have a real differentiation within our roadmap to create this unified platform that allows you to have all of your connectivity fabric in one. In my opinion, this is not long-term. This is mid-term.

Two two main areas number one is the new product lines right. So if you look at E mail.

<unk> SaaS fee.

Those are growing.

Above 40% year over year, alright, so a very healthy growth and as I said, we just we doubled the size of our SaaS team.

And we're making a huge effort to grow it as fast as we can the other place is the what we call. The infinity platform that at the end of the day I think we have a real.

Differentiation with our roadmap to create this unified.

Our platform that allows you to have all of your connectivity fabric in one in my opinion. This is not long term. This is a midterm.

Nadav Zafrir: With what we're seeing coming from the attackers' perspective, with the becoming AI-ready enterprise, having that holistic view into your network fabric and being able to read between the notes and go from a static, reactive to a predictive, proactive approach, I think that's going to have a huge impact. When you couple that with the fact that we are going to be making more investments in our marketing, I think that over time, you will see the impact and the growth coming. At the same time, this investment, and we've been talking about this for a long time, will also call for probably having to give up a few points on the margin so we can grow faster.

With what we're seeing coming from the attackers perspective with the.

Becoming AI ready enterprise, having that Youll holistic view into your network fabric and being able to read between the nodes and go from a static reactive to a predictive proactive approach.

I think thats going to have a huge impact and when you couple that with the fact that we are going to be making more investments in our marketing.

I think that over time, you will see the impact and the growth coming at the same time this investment and we've been talking about this for a long time will also call for.

Probably having to.

Give up a few margins.

Your points on the margin so we can grow faster.

Adam Tindle: Makes sense. Thank you.

Makes sense. Thank you.

Kip Meintzer: All right. Junaid Siddiqui is up, followed by Robbie Owens.

Alright, G&A typically is up followed by <unk>.

Adam Tindle: Great. Thanks for taking my question. Nadav, talk about SASE. I want to keep it serious for you. Could you just give us an update on the Perimeter 81 acquisition and where you are from a go-to-market and technology integration perspective? Overall, what's the vision that you're trying to articulate to customers that's a bit differentiated from many vendors that are providing SASE solutions to customers?

Great. Thanks for taking my question I know, you've talked about SaaS and <unk> being one of the key focus areas for you.

Could you just give us an update on the Premier agent one acquisition.

Where you are from a go to market and from a technology integration perspective.

And overall, what's the vision that you are trying to articulate to customers.

Differentiated from the menu vendors that are.

Providing strategy solutions to customers.

Nadav Zafrir: Yeah, thanks. Since the acquisition, first, in terms of numbers, we're seeing a solid 40%-ish growth. Solid. What we're doing is moving it up to the large enterprise level. We're now at a position where we have a full fully deployed capabilities up to 10K. In the beginning of 2026, we're going to have the ability to do that beyond that. That's one part of the answer. As I said, this is a critical aspect for us both on the R&D and on the go-to-market. Talking about go-to-market, the idea is that it's no longer just a small salesforce of an overlay, but we are bringing up to speed the mass field capabilities that we have that comes more from the gateway side to also be able to go out there and showcase what we have in SASE.

Yes. Thanks.

So since the acquisition.

First in terms of numbers, we're seeing are solid.

40% ish growth so are solid.

We are doing is moving it up to the large enterprise level.

So we're now at a position where we have a full fully deployed capabilities an uptick 10-K.

And at the beginning of 2026, we're already going to have the ability to do that beyond that so that's one part of the answer and as I said. This is a critical aspect for us both on the R&D and on the go to market.

Talking about go to market.

The idea is that it's no longer just a small sales force of an overlay, but we are.

Bringing up to speed.

The mass field capability that we have that comes from more from the gateway side to also be able to.

To go out there and showcase what we have in the SaaS fee.

Nadav Zafrir: To your question on differentiation, I think the differentiation has 2 parts. Number 1, it's the whole connectivity fabric platform approach. On the one hand, we have the Hybrid Mesh, which we've been talking about. On the other side, we have a workspace where we're unifying different capabilities so that we can look at persona and not different technologies. SASE is sort of something that is the glue that connects all that. Our architecture is different than others. Most of the architectures out there of some of the incumbents are architectures that are cloud-only. The fact that we have the hybrid capabilities, the fact that we're also on-device, means that I believe we can do 3 things better, and we're proving it in the market. Number 1 is better user experience, sometimes 10x, because we're able to, in every transaction, find the right way.

To your question on the differentiation I think the differentiation has two parts number one is the whole connectivity fabric platform approach on the <unk>. The one hand, we have the hybrid mentioned, which we've been talking about on the other side, we have the workspace, where we're unifying different capabilities. So that we can look at persona.

Different technologies SaaS is sort of something that is the glue that connects all of that our architecture is different than others. Most of the architectures out there of some of the incumbents are architectures that are cloud only the fact that we have the hybrid capability. The fact that we're also on device means.

I believe we can do three things better and we're proving it in the market number one is better user experience, sometimes with tenex, because we're able to.

<unk>.

In every transaction find the right way, we don't have to go to the cloud every time, we do it that leads to a tenant's faster capability.

Nadav Zafrir: We don't have to go to the cloud every time we do it. That leads to a 10x faster capability on the user experience. Number two, it's the cloud cost. The fact that we have this hybrid approach allows us to not use the cloud in any transaction that controls cost. Number three, the fact that we have all the capabilities on this platform, on the device, in the AI era means that we can protect you where the threat is coming in. I think that when you put all that together with what we've seen so far, I'm very optimistic about it.

User experience number two it's cloud cost. The fact that we have this hybrid approach allows us to not use the cloud and every transaction that control the cost and number three the fact that we have all of the capabilities on the small agent on the device in the AI era means that we can protect you were.

Where the threat is coming and I think that when you put all that together and with what we've seen so far I'm very optimistic about it.

Kip Meintzer: All right. Next up is Robbie Owens, followed by Brian Essex.

Alright next step as Rob Owens, followed by Brian Essex.

Robbie Owens: Great. Thank you, Kip Meintzer. Good afternoon, everybody. Hopefully, we could drill down a little bit just into the slippage deals that you mentioned. I know you quantified them in there. Appreciate that. Primary reasons for the slippage, geos that they slipped in, and anything that you're seeing more broadly out there in the environment. Thanks.

Thanks, Kathy and good afternoon everybody.

Hoping you could drill down a little bit just into the slipped deals that you mentioned I know you quantified demeter appreciate that but rhyme or reason for the slippage geos that they slipped in and anything that youre seeing more broadly out there in the environment. Thanks.

Roei Golan: Based on what we've seen in this quarter, I think, again, we feel it's a combination of macro and quick execution. In the end, we did see more deals that were slipped than usual. We have a quote that we have beyond everyone here doesn't have any. There is no quote that doesn't have any. This quote was more than usual. I think we're confident that most of these last deals we're talking about, 70 deals, all of them, I would say all of them, were closed in the first three weeks of the quarter. We feel confident that it's just an issue of timing. Sometimes we mentioned that we did see much more back-and-load reports than usual. I think that was the most back-and-load report that I have seen since I'm in Check Point. There is a risk.

So based on what we've seen especially especially this quarter I think again.

We still again I think it's a combination of macro and execution, but in then we did see.

More deals that will flip the unusual I mean, we have every quarter slip if we have to be honest with everyone. Here, it's not that we don't have.

No quarter that you don't have any slippage, but this quarter, we had more than usual, but that's why we feel confident that these most of these large deals we're talking about seven digit deal.

Most of them I would say all of them were closed in the in the first three weeks of the quarter. So we feel confident that it's just an issue of timing.

And some time, we mentioned that we did see much.

More backend loaded quarter than usual I think that was the most backend loaded quarter thats higher they'll see the same thing in checkpoint and therefore, there is at least when you have more pecking order delays related to some of these will be most of these will be sleep.

Roei Golan: When you have more back-and-load reports, there is a risk that some deals will be more deeply slipped. We're confident because we closed them, and we feel more confident around it.

But we feel confident but because we're look we closed them in.

The more confidence around it yes look too.

Nadav Zafrir: Yeah. To add to that, I think each one of them is sort of a snowflake. There's no one thing. Good news is that it's already closed, and we're seeing a great start to Q3, July. So far, it's been great. We're optimistic about Q3 and the rest of the year.

Add to that I think Rob each one of them is sort of a snowflake theres no one thing.

Good news is that it's already closed and we are seeing.

A great start to the Q3 July.

So far has been great and we're optimistic about Q3 and the rest of the year.

Robbie Owens: Were they equally split among geos, or were they predominantly in one group?

Are they equally split amongst the geos or were they predominantly in one day.

Nadav Zafrir: Pretty much. Yeah. Pretty much. There is no common denominator to it. I really think it's back-and-loaded, execution, and again, all of those have already been closed up. We're confident that it doesn't have any unique effects.

Pretty much.

Yes, pretty much said, yes.

Our common denominator through it I really think it's backend loaded execution.

And again all of them have been already being closed off we're confident that doesn't have a meaningful impact.

Robbie Owens: Thank you.

Kip Meintzer: Thank you. All right. Next is Brian Essex, followed by Shaul Eyal.

Thank you.

Alright next is Brian Essex, followed by <unk>.

Adam Tindle: Hi. Good morning, and thanks for taking my question. I was wondering if you could dig in on Quantum a little bit. Nadav, what do you think in terms of the Quantum product cycle, refresh cycle? How far through your install phase is the penetration there? What do you think architecturally, are your customers kind of taking a step back and reassessing the network architecture and maybe broadly spending into other areas of their network security environment? Thank you.

Hi, Good morning, and thank you for taking the question I was wondering if you dig in a quantum a little bit. So what are you seeing in terms of the.

The quantum product cycle refresh cycle like how far through your installed base is the penetration there and what are you seeing architecturally are your customers kind of taking a step back and reassessing the network architecture and may be throttling spending into other areas of their network security environment. Thank you.

Nadav Zafrir: Yeah. Thanks. Under the refresh cycle, let's really also chime in. On the architecture part, again, this is sort of the principles that we're talking about. The first one is to look at the whole connectivity fabric. A quantum gateway is one instance. It's a critical instance. We're seeing everything stay hybrid. The ability to do it on-prem is important. We'll have our CloudGuard, the ability to do the same thing to the cloud. More importantly, bringing all that together as one connectivity fabric platform. That's where I think we're going. With that, where are we investing? We're investing in creating one unified management to push all of the policies at the same time, whether it's on the cloud, multi-cloud, on-prem, branch, data center, etc. It's connecting that to SASE.

Yeah. Thanks on the refresh cycle I'll, let Murray also chime in on the architecture part, though again this is sort of the.

The principles that we're talking about the first one is to look at the whole connectivity fabric.

Quantum gateway is one instance, its a critical instance, we're seeing everything stay hybrid so the ability to do it on premise is important but we also have our cloud guard the ability to do the same thing to the cloud and more importantly, bringing all that together as one connectivity.

Platform, that's where I think we are going and so with that where are we investing we're investing on creating a one unified management that can push all of the policies at the same time, whether it's on the cloud multi cloud on Prem branch data center et cetera is connect.

Nadav Zafrir: Each one of the nodes in this very complex environment gets the same capabilities that a data center can get. All of them together are giving you sort of that sense of what a network is really about. Number three, embedding AI in this to simplify and automate and connecting from the very early innings is going to take not just engineering. It's going to take not just bringing AI in, but also changing sentiment. Because at some point, which we're already seeing, we need to trust that AI to make real decisions in split seconds because the attackers are not going to give it any more time. For me, when we think about Quantum, I think about the whole connectivity fabric and what that brings to our customers. Again, I believe that's not the whole cyberspace market, but it's a core.

Thing that to the SaaS. So each one of the notes in this very complex environment can get the same capabilities that a data center can get in all of them together are giving us sort of that sense of what our network is really about and number three embedding AI and is to simplify and automate and again I think we're in the very early innings.

It's going to take it.

Going to take not just <unk>.

Engineering is going to take not just bringing AI in but also a change in sentiment because at some point at which we're already seeing we need to trust that AI to make real decisions split seconds, because the attackers are not going to give us any more time. So for me. When you think about quantum I think about the whole connectivity.

<unk> fabric and that what that brings to our customers and again I believe that's not the whole <unk>.

Fiber state market, but it is a core and I believe that it can be the core platform and being an open platform open up to other best of breed platform, just like we did with with and we're going to do with others.

Nadav Zafrir: I believe that it can be the core platform and being an open platform opening up to other vendors to read out platforms like we did with Windows, we're going to do with others.

Roei Golan: Yeah. For the refresh cycle, I think we're in the middle of that. I think when I'm looking at the potential for the potential is huge. We are looking at the final for the second half of the year. When I'm looking at the final for the first half of 2026, the potential is there. I mean, we still have significant installments that are up to refresh. The potential is also to have competitive refills. We need to see some of them during the first half of the year. We need to have more of them. Definitely, there is a huge potential on that front.

And for the refill cycle I think we're in the middle of that I think we're now working on the potential for the.

Potentially huge we're looking on the final for this.

The second half of deal and when I'm looking at you mean on the final for the first half of 2026 the.

The potential is there I mean, we still have significant <unk>.

<unk> app to refresh and the potential is also clear competitive replacement and we did see some of them. During the first type of deal we need to have more of them.

But definitely there is a huge potential on that front.

Adam Tindle: Any sense of the duration of that half of the year or next year? Is it an acceleration you might expect, or how do you look at that?

Any sense of the duration in the back half of the year into next year like.

Is it an acceleration that you might expect or.

Can that be just based on <unk> and when I'm looking on the final discussion it should last at least until the first half of 2026 tough to me to say it would be less but again. This trend continues to expect it to continue in the next 12 months.

Roei Golan: Just based on when I'm looking at the final discussion in July at the first half of 2026, it's up to me to say it will be again, this trend continues. I mean, expect it to continue in the next 12 months.

Adam Tindle: Helpful. Thank you so much.

Helpful. Thank you so much.

Kip Meintzer: All right. Next, we have Shaul Eyal, followed by Keith Bachman.

Alright up next we have slowly al followed by Keith Bachman.

Shaul Eyal: Thank you. Hey, Robin and guys. Roei Golan, Nadav. On a current email, is it still growing at similar rates like we've seen in prior quarters? Maybe on those slipped deals, are they geographic-based or across the board pretty much?

Thank you Hey, good afternoon guys.

Or in that.

When harmony E Mail is it's still growing at similar rates like we've seen in prior quarters.

And maybe on those deals.

They like geographic based or across the board pretty much.

So yes.

Adam Tindle: Yeah. Yeah.

Yes go ahead <unk>.

Nadav Zafrir: Just to reiterate, on slipped deals, there's no common thread. It's not many, but it's a few big ones. It's not geographic-based. We have both in America and EMEA, etc. Again, it's a deal that has already closed in the last few weeks, giving us a reduced head start in the next quarter. On email, the answer is absolutely yes. It's continuing to grow at a very healthy rate. Not only is it continuing to grow at a very healthy rate, but also around that, around the leadership and the capabilities, we're baking together a few different solutions. Instead of looking at different products, different devices, or different locations, we want to look at the modern workforce. This is the new workspace division under Friedrich where we're bringing together email, endpoint, SASE security, browser security, and putting together a list of capabilities.

I mean, just to reiterate on the slipped deals that there is no common thread is.

It's not many but.

A few big ones and it's not geographically based we have with both in the Americas EMEA et cetera.

And.

And again it's.

Deals that have already closed in the last few weeks, giving us a really good head start for next quarter on E Mail the answer is absolutely yes.

It's continuing to grow at a very healthy rate not only to continue to grow at very healthy rate, but also.

Around that around.

The leadership and the capabilities, we're baking together a few different solutions, so instead of looking at different.

Product of different devices.

Our different locations, we wanted to look at the modern workforce. This is the new workspace division under Friedrich where we're bringing together email endpoint SaaS security browser security and putting together a holistic capability. So at the end of the day, we can look at personas and what.

Nadav Zafrir: At the end of the day, we can look at personas and what they do. Their security, their efficiency, their effectiveness, personas that are moving around the world. Hopefully, that can lift the whole workspace solution, not just email.

They do their security their efficiency their effectiveness as persona that are moving around the world and hopefully that can lift the whole workspace solution not just E mail.

Shaul Eyal: Thank you.

Thank you.

Kip Meintzer: All right. Next up is Keith Bachman, followed by Andrew Nowinski.

Alright next step is Keith Bachman, followed by Andrew New Winski.

Robbie Owens: Hi. Thanks. I wanted to go back to subscription discounting and a couple of different threads to pull on. I think you said the impact was 50 basis points this quarter on subscription, but I just want to make sure I heard that clearly. We did hear from the channel that Check Point was more flexible in the pricing this quarter. My question is, that's not a one-time event, right? We should be assuming that that discounting impacts presumably the next four quarters' growth on that subscription line. I just want to hear any thoughts you might want to offer on how we can construct our subscription line. Can't leave the number look disappointing. Even if we layer in 50 basis points, what investors want to see is that line not holding steady, but increasing.

Hi, Thanks, guys I wanted to go back to subscriptions and discounting in a couple of different threads upon.

I think you said the impact was was 50 basis points this quarter on subscription, but I just wanted to make sure I heard that clearly.

And we did hear from the channel that checkpoint was.

What's more flexible on the pricing.

This quarter.

But my question is that's not a onetime event right. So we should be assuming that that.

Discounting impacts presumably the next four quarters growth on that subscription line item, but I just wanted to hear.

Any thoughts you might want to offer excuse me on how we should construct our subscription line candidly the number looks disappointing.

So even if we layer in 50 basis points, what investors want to see is that line not holding steady but increasing.

Robbie Owens: There's not a lot of conviction that by all of the next three years, the product revenue will be a durable source of growth. That's a line that investors really view as important. Maybe just help us think about the ongoing headwinds associated with the next couple of quarters if there is a discounting that's going to be involved.

And there's not a lot of conviction that firewalls over the next three years to product revenue will be.

Durable source of growth is that sort of a line item that that investors really views important. So maybe just help us think about the ongoing headwind associated with the next couple of quarters. If there is this discounting thats going to be involved.

Roei Golan: Yeah. Tell us what you're right. I mentioned the point, the headwinds that are on high discounting related to the perception, which is part of the refresh, the bundle of the refresh. That's right around that. I do expect that as long as I'm talking about the refresh from existing customers, we do expect to see a refresh. We're going to see this refresh, and we see that in the final, the refresh is going to be strong in the next four quarters at least. That will have headwinds in that subscription. On the other hand, we have headwinds. I mean, we see that the email is getting bigger and bigger out of total subscription revenues. They have higher portions that should drive because that email is growing much higher than 10% subscription.

Yes. So so first of all you're right I mentioned after point, the fact that headwind that we had from from <unk> related to the subscription which is part of the refresh the bundled with the refresh so that right. There on that I do expect that as long I mean, I'm talking about the refresh from existing customer we do it correctly. They refresh we're going to see this refresh.

Do you see the in the final the refresh.

Who is going to be stronger probably in the next four.

Quarter of at least so that will have a headwind effect on the subscription but on the other end we have tailwind I mean, we see that the EMA is getting bigger and bigger out of the total subscription revenues and that have higher portion should should drive cadet email is growing much higher than the 10% subscription and also SaaS and also E. R. M.

Roei Golan: SASE and also All of them are growing farther, not of 40% EOVL. All these items are getting bigger in the subscription line items. Of course, we also expect to have more competitive placements in the Quantum on the firewall. That together, that should drive the acceleration in the subscription. We do expect to see we see the trend. We do expect to see slight acceleration in the next few quarters pushed by these emerging technologies that I just mentioned.

All of them are growing far north of 40% <unk>. So all this item are getting bigger in the subscription line items and of course, we also expect to have more competitive replacement in the quantum of the firewall. So that together that should drive us to drive the accelerated growth on the subscription and we do expect to see if we see the trend.

We do expect to see slight acceleration in the next few quarters.

Bye Bye this specific emerging technologies as I just mentioned.

Robbie Owens: Okay. Perfect. All right. Anything else?

Okay perfect alright, many thanks.

Kip Meintzer: All right. Next up is Andrew Nowinski, followed by Shrenik.

Alright next step as Andrew Nowinski, followed by <unk>.

Andrew Nowinski: Thanks, Chip. Good afternoon. Nadav, at the end of the day, you talked about the need to win the SASE market to drive subscription growth. It seems like identity is the foundation for that Zero Trust SASE market. I mean, you have to verify the users who they say they are for connecting them to an application. I'm trying to understand how critical is identity to your SASE solution and to the future adoption of SASE as you push more into that larger enterprise space. Thank you.

Thanks Chip.

Good afternoon, so net out at the analyst day, you talked about the need to win the SaaS market to drive subscription subscription growth.

It seems like identity is the foundation for that Zero Trust SaaS market. I mean, you have to verify the user is who they say they are before connecting them to an application. So I'm trying to understand how critical is identity security to your SaaS solution and so the future adoption of SaaS as you push more into that large enterprise.

Space. Thank you.

Nadav Zafrir: look, management and identity are part of the whole estate. Creating Zero Trust with the capabilities that we already have is actually, I believe, very doable. We are leading it. The customer needs to choose, actually, what provider they want to use as an identity broker. Again, that goes back to the open platform approach. I don't see this as a big impact, and I definitely don't think that this is a big impact on the SASE solution that we have.

No you look secret management and identity are part of the of the whole state.

Creating zero trust with the capabilities that we already have is actually.

I believe very doable and we are leaving it.

And the customer needs to choose to choose actually what provider they want to use as an identity broker again that goes back to the open platform approach.

I don't see this as a big impact and I definitely don't think that this is a big impact on the SaaS.

Solution that we have.

Andrew Nowinski: Okay. Thank you.

Okay. Thank you.

Kip Meintzer: All right. Next up is Shrenik, followed by Patrick Colville.

Alright next step as <unk>, followed by Patrick Colville.

Shrenik Kothari: Yeah. Sorry. Thanks, Chip. Nadav, you articulated a strong vision around AI-powered prevention, talking about the Quantum Force to signified managed real-time detection. How are you thinking about quantizing these structurally, also calibrated timing, overall net skews, pricing uplift, and product adoption? Just on that note, since you've said in the past that we're being brutally honest, take a village and very keeping it integrated for real-time prevention. Just on M&A brand, given your cash position and cash integration, how are you prioritizing AI-focused M&A and also internal R&D or just your philosophy?

Yes, sorry, yes, thanks, Ken.

You articulated a strong vision around AI powered program and talked about of course, one of course to unified management real time protection just curious like how are you thinking about.

Monetizing. These structurally is also getting a little bit at the timing like overall and that skews pricing uplift for broader adoption and then just on that nordson.

Is that in the past that were being brutally honest and it takes a village and clarity being integrated.

Real time prevention, just on M&A, but Brian do.

Do you like your cash position and the cash generation, how youre prioritizing AI focused M&A.

And also internal R&D and you're just here for the loss of EBITDA.

Nadav Zafrir: Yeah. Starting with the second question, this is one of the core guiding principles of AI-first security. In order to get to AI-first security, we're doing mainly three things. Number one is hiring the right talent to lead the future. To this end, we announced last quarter that we're going to be hiring about 500 new individuals that can lead us to that future, both on SASE and AI, already halfway through this program. Number two is, as you said, there's always the opportunity to make acquisitions. We have a strong position, and we're looking all the time to the right people, the right IP, the right market access. We're doing this as we speak, and I believe that we will make moves there as well.

Yes, so to start with the second question. This is this is one of the four guiding principle and AI for security in order to get to AI for security.

We're doing mainly three things.

Number one is hiring the right talent to lead this future to this end we announced last.

Last quarter that we're going to have we're going to be hiring about 500, new individuals that can lead us to that future bolt on SaaS. The NII. We're already halfway through this program number two as you said theres always the opportunity to make acquisitions and so we.

We have a strong position and we're looking all the time to the right people the right IP the right market access.

And we're doing this as we speak and I believe that we will make moves there as well.

Nadav Zafrir: It's the balance between these two, the acquisitions and the talent that we already have, the talent that we're onboarding together to lead us to the future. That's on the investment that we're making, generally speaking. On the mobilization front, I think that there are three things that we need to look at. Number one is a standalone product. We already have that. In fact, we're already selling the capability to allow users to have access based on policy and governance, so that organizations and enterprises can embrace these technologies safely and not lock them. That should be a standalone product. We're also looking at this as a new platform because when you think about AI and cybersecurity or security for AI, you're looking at observability. You're looking at users' capabilities. You're looking at government. You're looking at runtime, and you're looking at CI/CD.

And it's the balance between these two of the acquisitions and the talent that we already have the talent that we're onboarding together to lead the future. So that's on the investment that we're making generally speaking.

On the monetization front I think that there are three things that you need to look at number one is a standalone product we already have that so.

In fact, we're already selling the capability to allow users to have access based on policy and governance, so that our organizations and enterprises can embrace these technologies are safely and not block there.

And that's a that could be a standalone our product. We're also looking at this as a new.

A new platform because when you think about fibre AI cyber security or security for AI.

Looking at observe ability youre looking at users.

Capabilities, you're looking at governance, you look at run time and Youre looking at <unk>.

Nadav Zafrir: We're looking at the whole gamut. It's an evolving space, making our first moves. The next, which is more about optimizing and being more competitive with our capabilities that we already have, usually mostly on the management side. We've launched almost 12 months ago Infinity Playblocks, and we're seeing that play a major part. As you can see, it's a very wide range. Absolutely, to your question, we already have, and then we have more separate queues that are actually being sold, either as part of our Network Fabric and Infinity platform, but also as a standalone. These are going to be a part of our workspace or going to be a part of the Network Fabric and a standalone.

So we're looking at the whole gamut, it's an evolving space, making our first moves the next which is more about optimizing and being more competitive with our.

With all the capabilities that we already have.

Usually mostly on the management side. So we've launched almost 12 months ago play blocks in AI ops, and we're seeing that play a major part so as you can see it's a very wide range.

But absolutely to your question.

We already have and we will have more separate skus if you like.

Of that are actually being sold either as a part of our.

Network fabric and Infinity platform, but also as a standalone and these are going to be a part of our workspace theyre going to be a part of the network fabric and as a standalone.

Shrenik Kothari: Got it. Thanks a lot.

Got it thanks a lot.

Kip Meintzer: All right. Patrick Colville, followed by Jonathan Ho.

Alright, Patrick Colville, followed by Jonathan No.

Keith Weiss: All right. Thank you for taking my question. I'm actually going to ask Nadav this one, please. I mean, you mentioned earlier in the call that you'd be happy to give up a few points of margin to achieve your goals. I guess my question is, should we interpret that as new information, or should we interpret that nugget as consistent with the message from last quarter and the analysts' day? The reason I ask this is because many had thought this past year when your appointment was announced that giving back a teammate over the acceleration tucking deals. We haven't seen that. Any company provider on a margin comment or might get their change and pay tucking deals.

Alright. Thank you for taking my question I'm actually going to Mcdonald's. This one please.

I mean, you mentioned earlier in the cool <unk>.

You'd be happy to give up a few points of margin to achieve your goals.

Yes. My question is should we interpret that as new information or should we interpret that Nokia is consistent with the messaging from last quarter.

At the analyst day and.

And the reason I ask this is because many have thought.

This time last year. When you appointment was announced that given your background teammate there'll be an acceleration of tuck in deals and we haven't seen that so so.

Any color you can provide there on a margin comment or.

<unk>.

Might there be a change in the pace of tuck in deals.

Nadav Zafrir: There is no new information, Patrick. It's part of our vision. We focus on that. We are looking to accelerate growth. It's a journey. I think we're already seeing good initial cues that are going the right way. In order to go there, you need to galvanize the strategy, and that's what we're doing. You've seen the core guiding principles. Yes, you are going to see an acceleration in the way that we either build in-house to be ready for the future that we've been talking about extensively, but also acquisitions. 2025, we already gave a guidance. We already reiterated it in January of next year. We'll give a guidance for 2026. As we spoke about on the analysts' days and in other calls, we are willing to make the investments for faster, but sustainable growth.

So there is no new information Patrick.

As part of our vision.

<unk> spoken about that we are looking to accelerate growth. It's a journey I think we're already seeing.

Good initial Qs that were going the right way, but in order to go there you need to galvanize the strategy and Thats what were doing you have seen the four guiding principles and yes, you are going to see an acceleration in the way that we either built in house.

To be ready for the future that region's pocket speaking about extensively but also our acquisitions 2025, we already gave our guidance we already reiterated it in January of next year, we'll give our guidance for 2026.

And as we've spoke about on the analyst days in another calls.

We are willing to make the investments for faster more faster, but sustainable growth and so these tuck ins on these acquisitions are going to be.

Nadav Zafrir: These tuckings and these acquisitions are going to be within the strategy that are articulated and within the core guidelines. When we're talking about the connectivity fabric and how we lead that, we don't have everything. Some of it we can build. Some of it we can acquire. Same thing goes for workspace and definitely for AI. We're very active in assessing the possibilities that are out there. We're willing to not willing. We are making a strive to make sure that we see the best in class in each one of these categories.

Within the strategy that are articulated in within the four guidelines so.

When we're talking about the connectivity fabric and how we lead that we don't have everything some of it we can build some of it we can acquire.

Same thing goes for workspace and different fee for AI and we're very active in assessing the possibilities that are out there and we're willing to not willing we are making strides to make sure that we see the best in class in each one of these categories.

Keith Weiss: Very great. Thank you, Nadav.

Very clear thank you to Doug Hey, Thanks, Patrick for Thomas Your European with your outfit next step is Jonathan Ho followed by Keith Weiss.

Kip Meintzer: Hey, thanks, Patrick, for coming to your team and your outset. Next up is Jonathan Ho, followed by Keith Weiss.

Jonathan Ho: Good morning.

Good morning.

Kip Meintzer: Good morning. What have been sort of the most relevant changes that you've made? Can you give us a sense of the timing of when you expect these impacts to be more meaningful and maybe where we are seeing those impacts more today? Thank you.

Go to market changes have been sort of the most relevant changes that you've made and can you give us a sense of the timing of when you expect these impacts to be more meaningful and maybe where you are seeing those impacts work today. Thank you.

Nadav Zafrir: Yeah, thanks. I think first and foremost, it's about leadership, right. In the CTP today, we started out when I started out, we had 1 leader. Today, we have 6. Sorry, we have 2, and now we have 6. President of America, President of International, CMO, Customer Success, and CRO are all part of it. The balance between the product engineering and the rest of the folks and the go-to-market folks is differentiated. The second is the people that we are looking to attract, right. We are hiring people that are coming more from a marketing perspective. The second is at a cultural level, being less shy about what we stand for and why we stand for it. All this is in the process of happening and more is to come shortly.

Yeah. Thanks.

I think first and foremost it's about the leadership.

So in the C suite today.

Started out when I started out we had a one leader today, we have six.

We have two and now we have six so president of Americas President of International CMO.

Customer success CRO are all a part of this and so that the balance between the product engineering and the rest of the folks in their go to market folks is differentiated.

Second is the people that we are looking to attract right. So.

We are.

We're hiring people that are that are coming more from a marketing perspective.

The second is on a cultural level being less shy about what we stand for and why we stand for it.

And all this is.

In the process of happening and more news to come shortly.

Kip Meintzer: Thank you. All right. Next up is Keith Weiss, followed by Saket Kalia. Go ahead, Keith. I know you don't have the camera open.

Thank you.

Alright next step as Keith Weiss, followed by socket calia.

Go ahead, Keith I know you don't have a camera open.

Keith Weiss: Hey, do you guys hear me?

Thank you chairman.

Kip Meintzer: Yes.

Keith Weiss: Yes. All right. Thank you. Maybe a question before we leave. Nadav talked about investing people's more marketing dollars to get more of the message out. That makes sense to get to this acceleration. One of the things investors broadly have been hoping for or expecting with software companies is the internal use of generative AI technology to be able to drive more efficiencies within the business. Maybe think about the potential within tech when you guys are utilizing the technology yourself, maybe get more productive in development, more productive in go-to-market using generative AI. What ability is there to offset some of that necessity to hire investment to sustain the operating margins? Maybe you both, right, get to that level of acceleration just by being more productive and still putting incremental investment where you need it.

Yes excellent. Thank you.

Absolutely.

A question for Roy.

In the non talked about.

A deeper more marketing dollars to get more the message out and that makes sense to take it to the patient acceleration I think one of the things investors broadly had been.

Hoping for or expecting within software companies is the internal use of generative AI and more AI technology to be able to drive more efficiencies within the business. So maybe you could talk about.

The potential within checkpoint you guys utilizing.

<unk> technologies yourself, maybe get more productive in development more productive in go to market using generative AI what ability is there to offset some of that necessity for higher investment. So you can sustain the operating margins and maybe do bulk rate get to that level of acceleration just by being more productive.

And still putting incremental investments where they need it so.

Roei Golan: Keith, that's a great question. I think, definitely, that's one of our priorities when we're looking. Also, we talk a lot about AI and Q2 for AI, but definitely AI is an opportunity also to be more productive internally and to optimize operations. Definitely that's something that we are already working on today, and definitely it should help us in the future. I don't think that in the short term we'll see it contribute to our operating margins for this optimization, but definitely we have actually a task force in the company that's with the development team, with the consumer marketing, with my team. Everything is working to how to leverage this AI tool today and how to be more productive and optimize what we're doing.

Keith.

Great question I think definitely that is one of our priorities. When we are looking also we've talked a lot about AI and security for AI, but defiantly AI is the opportunity also to be more productive internally and to optimize operations and definitely that's something that we are already working on that today and definitely should help us in the future.

I don't think that in the short term, we'd see to contribute to our operating margin in this book.

Aim optimization, but definitely we have we've actually a task force in the company that we the development team with the go to market team with my team I think is working to see how we can leverage these AI tools today and how we can be more productive my an optimized what we are doing but.

Roei Golan: I have to say again, to quantify it for now today will be difficult, but definitely on the long run, long term, it should benefit us.

But I have to say again to quantify it for now today to be.

Be difficult, but definitely on the long run and the long term it today.

Keith Weiss: Got it. More like a 2026, 2027 event.

It would benefit them, okay. So more like a 2026 2027 and hopefully we get it.

Roei Golan: Hopefully, yes. Yeah. Yeah.

Nadav Zafrir: I'll just add to that, Keith, because I think that's on everybody's top of mind. Every organization on the planet is dealing with this. We need to lead it, but we need to lead it on different fronts. One of the fronts you said is being an AI-first company. I think we're at the front line, but it's one of those things that how do you know if you're at the leading edge when there is no sort of benchmark? We're never going to be content enough. The way I look at it is, yes, become more efficient, more effective, but rather than trying to it's the latter. It's sort of the last piece of what you said.

Just to add to that Keith because I think that's on everybody's top of mind.

Every organization.

The planet is dealing with this we.

We need to lead it but we need to lead it on different fronts that one of our friends that you said is being an AI first company I think we are.

At the frontline.

But it's one of those things that how do you know if you are at the bleeding edge of when they are there is no sort of benchmark. So we're never going to be contempt enough.

I looked at it as yes to become more efficient more effective.

But rather than try to it's the latter it's sort of a last piece of what you said, it's not since we are investing in our future.

Nadav Zafrir: It's not since we are investing in our future, I think that will allow us to do more, not with less, but with the same, right, and enable us to go for growth. Lastly, I'll say, because Roei Golan talked about the task force, Jonathan Zanger, who I told you about last time we spoke to our new CTO, he's obsessed with those 3 things. How do we become an AI-first company? The second part is how do we help and I think this is one of our number 1 tasks in the world today is how do we allow our customers to become an AI-first company without taking huge risks on privacy, security, governance, etc.? Finally, constantly having an eye open, and that's why we put together the research center that's looking to where the puck is going. I think attackers have less they're flexible.

I think that will allow us to do more not with less.

But with the same rate and enable us to go for growth and then lastly, I'll say you know because <unk> talked about the task force, Jonathan Zander, who I told you about last time, we spoke our new CTO.

<unk>.

Obsessed with those three things.

How do we become an AI first company.

The second part is how do we help and I think this is one of our number one tasks in the world today is how do we allow our customers to become an AI first company without.

Taking huge risks on privacy security governance.

Et cetera.

And then finally.

Constantly having an eye open and that's why we put together the research center, that's looking to where the puck is going because I think the attackers have less.

Nadav Zafrir: They don't have procurement committees, governance, etc. They're embracing these technologies extremely fast. We at Check Point have to do all three of these things in parallel. I think we're already off to a really good start, but a lot more to come from that.

They're flexible they don't have a procurement committees governance et cetera, they're embracing these technologies extremely fast and we have check point have to do all three of these things in parallel and I think we're already we're off to a really good start but a lot more to come on that got it. Okay. One quick follow trended.

Keith Weiss: Got it. Got it.

Kip Meintzer: New ones that follow up on Nadav, I'm not going to try to put excuses in your mouth. In Israel, you guys had a 12-day war during the quarter, and I think it created some disruption and some distraction for the workforce within Check Point during the quarter. I mean, did you think that had any impact on flipped yields or execution in the quarter? I mean, it was a pretty big deal.

Not to try to put excuses and you guys know but.

In Israel, you guys had a 12 day war during the during the quarter and I think you can keep.

Forgiving if that created some disruption or some distraction for the workhorse within checkpoint during the quarter.

That had any impact on slip deals or execution in the quarter.

It was pretty big deal.

Nadav Zafrir: Well, obviously, it was a big deal. We can talk about the implications for the next few hours. Specifically in Check Point, no. We're a global company. We have people around the globe. We didn't see any direct impact, but believe me, we probably have one of the best CPE credits programs in the world, obvious reasons. It didn't have an impact. What it did have is it showed us what kind of world we're looking at. Obviously, most of the world has been looking at the impact, the direct impact, kinetic impact. Behind the scenes, there's a cyber war going. One of the components of that were they have good capabilities. They have a lot of motivation.

Yeah, well, obviously it was a big deal.

And we can talk about.

The implications for the next few hours specifically on checkpoint.

No.

We're a global company, we have people around the globe.

We didn't see any direct impact, but believe me, we probably have one of the best BCP Drp's programs in the world for obvious reasons and so no. It didn't have an impact.

But if you, but what it did have as it shows us.

What kind of a world we're looking at and you know obviously, we're all most of the world has been looking at the impact of the direct impact of kinetic impact, but behind the scenes. There is a cyber war going.

And Iran is one of the proponents of that or they have good capabilities. They have a lot of motivation.

Nadav Zafrir: We're seeing an increase, I would say, boldness and the amplitude of what the Iranians are doing with some of their friends around the world.

And we're seeing an increase.

I would say.

Baldness.

And the amplitude of what the Iranian are doing with some of their friends around the world.

Kip Meintzer: Got it. All right. Our final call, our final question from Saket Kalia, from Barclays.

Got it alright, alright or.

Our final call. Our final question will come from <unk> <unk> from Barclays.

Keith Weiss: Excellent. Thanks so much for taking me in, you guys. Nadav, maybe we can end with one of the things you said in your comments, which was steady growth and SASE. Clearly, Check Point has a big customer base across SASE too. Maybe the question is, what are you seeing in terms of your SASE wins, in terms of why you win? Roei, maybe the related question is, anything that you kind of want to share us on scale or run rate with this business as we think about the future of Check Point?

Thanks, So much for fitting me in here guys Dov, maybe maybe we can we can end with one of the things you said in your prepared comments, which was steady growth in SaaS.

Clearly checkpoint has a big customer base to cross sell.

SaaS to maybe the question is what are you seeing in terms of your SaaS. He wins in terms of why you win and really maybe maybe the related question is anything that you can or want to share just on on the scale of run rate of this business as we think about the future of checkpoint.

Nadav Zafrir: Yes. To begin with, we're still a relatively small player in SASE per se, we're the leading player when it comes to a connectivity fabric platform and the Hybrid Mesh. SASE is embedded in that. Many of our wins, I would say most of our wins, are customers that are already using our Quantum Force and want to have a more holistic connectivity fabric capability. I don't think there's any other company that has sort of the inspection engines, the AI engines, the intelligence that comes from 32 years and dozens and thousands of customers that now, once we put the SASE in, we immediately get all that benefit and bringing together the platform. You're right. Today, it's mostly the upsell from existing customers.

Yes to begin with.

We're still.

Relatively small player in SaaS seats per se.

But we are the leading player when it comes to a connected.

Connective fabric platform and the hybrid mesh and SaaS is embedded in that.

And so many of our wins I would say most of our wins are customers that are already using our quantum base and want to.

Have a more holistic connectivity fabric capability I don't think theres any other company that has sort of the inspection engines.

The engines the intelligence that comes from the 32 years and.

Dozens of thousands of customers that now once you put the SaaS fee and you immediately get all of that benefit and bring it together as a platform. So you are right today is mostly the upsells from existing customers.

Nadav Zafrir: Through our new division that also is going to bring up our MSP page as we go, I think we will also have an opportunity in the downstream. I do see opportunity for Saket Kalia to come in with customers that don't have Check Point and hopefully then embrace the other Check Point customers. You're right, at the beginning of the journey is the upsell from existing enterprise customers.

Through our new Division that also is going to bring up our MSP pay as you go I think we are old. We also have an opportunity in the downstream and I do see opportunity first SaaS fee to come into customers that don't have checkpoint and hopefully then embrace the other checkpoint customers.

But youre right at the beginning of the journey.

Is the upsell from existing enterprise customers.

Keith Weiss: Very, very helpful. Thank you.

Very helpful. Thank you alright. Thank you all for joining US today, we appreciate it and we'll look forward to seeing it throughout the quarter.

Kip Meintzer: Thank you. All right. Thank you all for joining us today. We appreciate it. We'll look forward to seeing you throughout the quarter and also the time in the next quarter. Thank you.

And.

Also this time next quarter. Thank you.

Nadav Zafrir: Thank you, guys.

Thanks, guys. Thank you.

Keith Weiss: Thank you.

Kip Meintzer: Thank you.

Operator: Goodbye.

Goodbye.

Q2 2025 Check Point Software Technologies Ltd Earnings Call

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