Check Point names Sherif Seddik as Chief Revenue Officer

Check Point reported first-quarter revenue of USD $668 million and named Sherif Seddik as Chief Revenue Officer. The cyber security group also posted higher profit and cash flow.

Revenue rose 5 per cent from a year earlier, while security subscription revenue increased 11 per cent to USD $323 million. GAAP operating income reached USD $185 million, or 28 per cent of revenue, and non-GAAP operating income was USD $265 million, or 40 per cent of revenue.

GAAP earnings per share were USD $1.81, up 5 per cent year on year. Non-GAAP earnings per share rose 13 per cent to USD $2.50.

Cash flow from operations increased 6 per cent to USD $445 million. Adjusted free cash flow rose 11 per cent to USD $457 million, while remaining performance obligation stood at USD $2.6 billion, up 7 per cent.

Product revenue was hit by sales changes introduced at the start of the quarter, affecting its security appliance business in the near term. Subscription revenue, meanwhile, was supported by demand for email security, exposure management and secure access service edge, or SASE.

Check Point ended the quarter with USD $4.38 billion in cash, marketable securities and short-term deposits, compared with USD $2.93 billion a year earlier. The increase was mainly due to USD $1.8 billion in proceeds from its USD $2 billion convertible senior notes offering, net of issuance costs and purchased capped calls.

During the quarter, Check Point completed the acquisitions of Cyata and Cyclops for about USD $92 million in net cash consideration. It also repurchased about 1.9 million shares for roughly USD $325 million.

Leadership change

Seddik takes on the role after serving as President of International Sales since 2023. He succeeds Itai Greenberg, who is stepping down as Chief Revenue Officer.

The appointment comes as Check Point adjusts its commercial organisation while managing a shift in sales execution. No further details were given on Greenberg's departure.

Management view

Chief Executive Officer Nadav Zafrir linked the quarter's performance to growth in recurring revenue, while acknowledging weaker product results.

"In the first quarter, we delivered double-digit growth in non-GAAP earnings per share and adjusted free cash flow, along with 5 percent revenue growth. Subscription revenue remained a key strength, supported by strong demand across our emerging technologies, including email security, exposure management, and SASE. Product revenue was impacted by go-to-market changes implemented at the beginning of the quarter, which created near-term headwinds in our security appliance business. We remain confident these go-to-market changes together with our market-leading technology will drive sustainable long-term value," said Nadav Zafrir, Chief Executive Officer, Check Point.

Zafrir also pointed to artificial intelligence as a force reshaping the threat environment for cyber security suppliers and customers.

"The cybersecurity landscape is undergoing a fundamental shift as AI accelerates both the scale and sophistication of threats. Our strategy is purpose-built for this environment. With our four-pillar architecture, we are well positioned to benefit from accelerating demand for secure, enterprise-grade AI transformation at scale," said Zafrir.

Tax incentive

Check Point also highlighted a change in Israeli law tied to the national budget that offers tax incentives for research and development carried out in Israel. Under the measure, eligible Israeli companies in multinational groups can receive tax credits on qualifying research and development spending, offset corporate taxes or minimum top-up tax, and convert unused credits into cash grants after a defined period.

The disclosure adds policy context to the company's domestic research base, though it did not quantify any expected financial effect from the new law in its quarterly figures.

The quarter presented a mixed picture, with recurring revenue and cash generation improving while hardware-related sales came under pressure from internal go-to-market changes. The notes offering also strengthened the balance sheet, leaving Check Point with USD $4.38 billion in cash, marketable securities and short-term deposits.