Full Breakdown
Check Point Software Technologies Acquires Three Start-Ups Amid Strong Financial Performance
2/16/2026, 4:00:15 AM
Overview of Acquisitions and Financial Results
Check Point Software Technologies Ltd, an Israeli cybersecurity firm, has announced its acquisition of three Israeli start-ups—Cyclops, Cyata, and the employees of Rotate—during the release of its fourth-quarter and full-year 2025 financial results. While specific financial details of the acquisitions were not disclosed, market estimates suggest the total cost exceeds $150 million.
Cyclops, founded in 2022 by Eran Zilberman, Elay Gueta, and Biran Franco, has developed a platform for Continuous Attack Surface Management (CAASM). This technology provides organizations with unified visibility into their cyber assets, including cloud environments, identities, endpoints, and applications. The platform utilizes an AI layer to analyze asset relationships and vulnerabilities, guiding users in risk mitigation. This technology will enhance Check Point's Exposure Management platform.
Cyata, established in 2024 by Shahar Tal, Baruch Weitzman, and Dror Roth—who are all alumni of the IDF 8200 intelligence unit—has created a platform for managing the identities and permissions of AI agents within enterprises. This system allows for real-time control and policy enforcement, which will be integrated into Check Point's AI Security platform, expanding its governance and detection capabilities.
Rotate, founded in 2023 by Ro'ee Margalit and Avidan Barak, has developed a platform specifically designed for Managed Service Providers (MSPs). The integration of Rotate's employees into Check Point is expected to bolster the company's service offerings in this sector.
Financial Performance Highlights
In its fourth quarter, Check Point reported revenues of $745 million, reflecting a 6% increase from the same quarter in 2024, although it fell short of some analysts' expectations. The company achieved non-GAAP earnings per share of $3.40, which is an increase of $0.52 compared to the previous year. For the full year 2025, Check Point's annual revenue reached $2.725 billion, also up 6% from 2024, aligning with the company's guidance range. The non-GAAP earnings per share for the year were reported at $11.89, marking a 30% increase from the prior year, aided by a $1.90 rise in net income per share due to tax changes.
Criticism & Opposition
Despite the positive financial outlook, some analysts have expressed concerns regarding the acquisitions. Critics argue that while the integration of new technologies may enhance Check Point's offerings, the high cost of acquisitions could strain resources and distract from core business operations.
Official Statements & Responses
Check Point's CEO, Nadav Tzafrir, emphasized the strategic importance of these acquisitions in strengthening the company's cybersecurity capabilities. He stated, "These acquisitions will enhance our ability to provide comprehensive security solutions in an increasingly complex digital landscape."
Verbatim Quotes
This strategic move positions Check Point to better address the evolving challenges in cybersecurity, particularly in the realm of AI and enterprise security management.
