Summary
Jamf delivered a much cleaner quarter on the top line and a smaller loss. Revenue for FY2025 Q3 was $183.5 million, up 15.2% from the prior-year quarter. Year-to-date revenue reached $527.6 million, up 13.6%. Subscription revenue drove the increase, and the company said the gain came from the Identity Automation acquisition, device expansion, cross-selling, and new customers. Gross profit for the quarter was $139.5 million, up 13.2%, but gross margin slipped to 76.0%, down 1.3 percentage points. Year-to-date gross profit was $402.7 million, up 12.4%, with gross margin at 76.3%, down 0.8 percentage points. Higher cost of subscription revenue and amortization from the Identity Automation deal pressured margins.
Operating loss for the quarter narrowed to $3.4 million. Operating margin improved to -1.9%, up 8.1 percentage points. Year-to-date operating loss narrowed to $22.6 million, and operating margin improved to -4.3%, up 8.0 percentage points. Net loss for the quarter was $4.5 million, or -$0.03 per diluted share, an improvement of $0.07 per share. Year-to-date net loss was $24.9 million, or -$0.19 per diluted share, an improvement of $0.22 per share. The bottom line benefited from lower stock-based compensation and system transformation costs, though restructuring and other cost optimization charges rose. The strategic reinvestment plan announced in July 2025 is expected to be substantially complete by the end of the fourth quarter of 2025.
Cash generation stood out. Operating cash flow for the quarter was $65.6 million, up 184.1%. Year-to-date operating cash flow was $107.4 million, up 399.3%. Capital expenditures fell to $0.7 million in the quarter, down 81.8%, and year-to-date capital expenditures were $4.6 million, down 31.5%. Deferred revenue was $440.5 million at September 30, 2025, up 16.5%. Remaining performance obligations were $653.0 million, up 24.3%. Annual recurring revenue was $728.6 million, up 16% from $629.9 million. Dollar-based net retention rate was 104% for the trailing twelve months ended September 30, 2025, down from 106%. Non-GAAP operating income was $47.2 million, and adjusted EBITDA was $49.6 million.
The forward picture is dominated by the pending take-private merger with Francisco Partners. The company entered the merger agreement on October 28, 2025, and shareholders would receive $13.05 per share in cash. The deal is expected to close in the first quarter of 2026, subject to regulatory approvals and a majority stockholder vote. The merger agreement includes a $68.1 million termination fee payable by Jamf and a $136.2 million termination fee payable by Parent under certain circumstances. Jamf also completed the Identity Automation acquisition on April 1, 2025, for total consideration of $216.1 million, including $176.1 million paid at closing and $40.0 million paid on October 1, 2025. The strategic reinvestment plan affected about 6.4% of full-time employees.
Risks remain familiar. Management flagged macroeconomic uncertainty, high inflation, elevated interest rates, supply chain disruptions, tariffs, and geopolitical conflict as factors that could reduce IT spending or lead customers to renegotiate contracts. Some customers have taken a more moderate outlook on hiring and device growth. The dollar-based net retention rate slipped to 104%, which shows expansion is still positive but less robust than a year ago. The company carries debt from its 2026 Notes and a 2025 Term Loan, and it has a large non-cancelable hosting commitment. The merger adds execution risk around closing conditions and regulatory approvals, while the Identity Automation integration and restructuring could create near-term noise.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $183.5M | $176.5M | +4.0% | $159.3M | +15.2% |
| Gross profit | $139.5M | $132.7M | +5.1% | $123.3M | +13.2% |
| Gross margin | 76.0% | 75.2% | +0.8 pp | 77.4% | -1.3 pp |
| Research & development | $38.6M | $39.2M | -1.5% | $36.0M | +7.3% |
| Sales & marketing | $60.9M | $64.2M | -5.1% | $60.1M | +1.5% |
| General & administrative | $35.0M | $35.9M | -2.4% | $36.1M | -3.1% |
| Total operating expenses | $142.9M | $147.7M | -3.2% | $139.1M | +2.7% |
| Operating income (loss) | -$3.4M | -$15.0M | +77.2% | -$15.9M | +78.5% |
| Operating margin | -1.9% | -8.5% | +6.6 pp | -10.0% | +8.1 pp |
| Net income (loss) | -$4.5M | -$20.9M | +78.4% | -$12.2M | +63.1% |
| Net margin | -2.5% | -11.8% | +9.4 pp | -7.7% | +5.2 pp |
| Diluted EPS | -$0.03 | -$0.16 | +$0.13 | -$0.10 | +$0.07 |
| Net retention rate | 104.0% | 103.0% | +1.0 pp | 106.0% | -2.0 pp |
Risks
The pending take-private merger with Francisco Partners affiliates is subject to stockholder approval and regulatory approvals and may not close on the expected timeline or at all. The pendency could disrupt relationships with vendors, customers, and employees, divert management time, restrict business conduct, and cause Jamf to forego opportunities; if terminated by Parent under certain circumstances, Jamf must pay a $68.1 million termination fee.
Putative stockholder complaints or class actions challenging the merger could delay or prevent consummation, divert management and employee attention, and result in substantial costs even if Jamf successfully defends against the claims.
Jamf depends on key personnel and has recently hired a new CEO, CFO, and Chief Sales Officer; employees generally lack fixed-term agreements, and non-compete agreements may be unenforceable or expire. Competition for experienced engineers is intense, and remote or hybrid work has increased competition and wage inflation in certain markets.
The Merger Agreement restricts Jamf from soliciting alternative business combination transactions and limits ordinary business actions such as incurring certain debt, changing employee benefit plans, settling legal proceedings, changing accounting methods, and making certain capital expenditures.
The July 2025 strategic reinvestment plan impacted approximately 6.4% of full-time employees and incurred $9.2 million in severance charges for the nine months ended September 30, 2025. The plan or similar future actions could negatively impact Jamf's ability to attract, integrate, retain, and motivate key employees.
Revenue and cash flows depend on demand for Apple products and IT spending, and high inflation, elevated interest rates, supply chain disruptions, expanded U.S. tariffs since early 2025, retaliatory measures, and trade uncertainty could reduce IT spending or lead to contract renegotiations, payment defaults, or non-renewals. Some customers have continued a more moderate outlook on hiring and device growth.
Dollar-based net retention rate was 104% for the trailing twelve months ended September 30, 2025 and 106% for the trailing twelve months ended September 30, 2024, which may pressure growth if Jamf cannot retain and expand existing customers.
SaaS KPIs
All quarters →Non-GAAP Gross Profit Margin
Non-GAAP Operating Income Margin
Summary, forecast, risks and KPIs are extracted from Jamf Holding Corp.'s SEC filings for Q3 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.