Jamf Holding Corp. Q1 FY2025 earnings

Jamf reported first-quarter fiscal 2025 total revenue of $167.62 million, up 10.2% from $152.12 million in the prior-year quarter. GAAP gross profit was $130.52 million, up from $117.03 million. Gross margin was 77.9%, up from 76.9%. The GAAP operating loss narrowed to $4.16 million from $21.11 million. Operating margin improved to -2.5% from -13.9%. Net income was $0.53 million, compared with a net loss of $20.52 million. Diluted EPS was $0.00, compared with -$0.16. On a non-GAAP basis, operating income was $37.6 million, or 22% of total revenue, compared with $22.1 million, or 15%. Adjusted EBITDA was $39.4 million, or 24% of total revenue, compared with $23.9 million, or 16%. Non-GAAP gross profit was $137.2 million, or 82% of total revenue, compared with $123.7 million, or 81%. The company said total revenue growth was driven by higher subscription revenue.

ARR was $657.9 million as of March 31, 2025, up 9% year-over-year. Security ARR reached $162 million, up 17% year-over-year, representing 25% of total ARR. International revenue grew 16% year-over-year. The dollar-based net retention rate was 104% for the trailing twelve months ended March 31, 2025, compared with 107% for the trailing twelve months ended March 31, 2024. Jamf launched four platform solutions: Jamf for Mac, Jamf for Mobile, Jamf for K-12, and Jamf for Small Business. The company also completed the acquisition of Identity Automation on April 1, 2025, for total purchase consideration of $216.1 million, including $176.1 million paid upon closing and $40.0 million deferred to October 1, 2025. The deal adds identity and access management capabilities for education and healthcare. The company said ARR growth was primarily driven by device expansion, cross-selling additional solutions to its installed customer base, and the addition of new customers.

Operating cash flow was $4.07 million, up from negative $15.90 million in the prior-year quarter. Capital expenditures were $3.05 million, up from $1.76 million. Free cash flow, a non-GAAP measure, was $1.0 million for the quarter, compared with negative $17.7 million a year earlier. Deferred revenue was $379.09 million, up 4.0% from $364.50 million. Remaining performance obligations were $552.20 million, up 10.7% from $499.00 million. The company attributed the operating cash flow improvement to higher cash collections from customers and lower cash paid for system transformation and restructuring costs.

For the second quarter of 2025, Jamf guided non-GAAP operating income of $29.5 million to $30.5 million. For the full year 2025, the company guided non-GAAP operating income of $144.5 million to $147.5 million, with year-over-year unlevered free cash flow growth of at least 75%. The outlook maintains the previously provided fiscal 2025 guidance and layers in the financial impact of the Identity Automation acquisition, which closed on April 1, 2025. Management flagged macroeconomic uncertainty, including inflation, elevated interest rates, supply chain disruptions, volatility in credit, equity, and foreign exchange markets, the Russia-Ukraine war, financial instability, and instability in the global trade environment including recent U.S. tariff announcements and potential retaliatory measures. Those factors could reduce IT spending, lead customers to renegotiate contracts, default on payments, or not renew. Some customers have continued to take a more moderate outlook when planning hiring and device growth needs. The company operates in a competitive and rapidly changing environment. Jamf said it is unable to provide a quantitative reconciliation of forward-looking guidance of non-GAAP operating income to GAAP operating income and unlevered free cash flow to cash flow from operations because certain items are out of its control or cannot be reasonably predicted.