Nepsis Inc. fully liquidated its 34,236-share position in CyberArk Software (CYBR) during Q3 2025, selling the entire holding for an estimated $13.93 million, which previously constituted 4.42% of its reportable assets under management. This complete exit, reducing Nepsis's exposure to zero, occurred amidst CyberArk's significant stock appreciation, including a 75.5% rise over the past year, and its current high valuation multiples, suggesting the sale was likely an opportunistic move to realize gains rather than a reflection of concerns about CyberArk's underlying business fundamentals.
Nepsis Inc. fully liquidated its 34,236-share position in CyberArk Software (CYBR) during Q3 2025, realizing an estimated $13.93 million. This complete exit, representing 4.42% of Nepsis's reportable AUM, follows a period of significant appreciation for CYBR, which saw a 75.5% one-year increase and 54 percentage points of alpha against the S&P 500.
The sale appears to be an opportunistic move by Nepsis, driven by CyberArk's "ambitious" valuation, trading at 21 times sales and 43 times its projected 2028 free cash flow target of $600 million. Despite a TTM net loss of $165.37 million, the article suggests the exit is not an indictment of CyberArk's core business.
CyberArk's underlying business fundamentals remain robust, evidenced by 44% annual recurring revenue growth over the past five years. The company operates in a critical sector, with 93% of businesses experiencing security breaches, making its identity security and privileged access management solutions essential. The firm also benefits from potential AI opportunities.
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