In a year marked by extended sales cycles, pricing pressure, and economic uncertainty, cybersecurity companies are navigating a complex landscape. The average enterprise sales cycle hit 99 days as of April 2025, an all-time high. Deals are dragging, some getting pushed to later quarters. Still, cybersecurity remains a budget priority, driven by threats like impersonation fraud and ransomware.
Despite the headwinds, several players are outperforming. Here’s a breakdown of how key cybersecurity companies are faring.
Outperformers: Resilient and Gaining Ground
Cloudflare
Cloudflare is accelerating. After a strong Q1 2025, they remained above plan in April. The turnaround seems tied to strategic channel investments—new programs, partnerships with SYNNEX, and onboarding new resellers. These resellers are bringing in new logos and closing real deals, not just shifting direct business. While aggressive pricing could eat into margins, Cloudflare’s momentum looks genuine, with future upside from streamlined FedRAMP processes.
Palo Alto Networks
Palo Alto went from “on plan” at the start of April to “above plan” by the end, thanks to a wave of Cortex deals. Their reps have large deals in play, signaling strong execution even in a slow market.
CrowdStrike
CrowdStrike is back on stable footing. April showed improvement, and fears of customer fallout after previous outages were unfounded. New logo performance in Q1 2025 exceeded last year’s, a solid sign of resilience.
CyberArk
CyberArk stayed above plan in both Q1 and April. They’re pushing new upgrades focused on machine learning and non-human identity. While momentum hasn’t yet picked up post-announcement, the expert believes it’s more about market timing than product appeal. A big win with the U.S. Treasury could be a near-term catalyst.
Nutanix
Above plan and gaining share, especially in head-to-heads with VMware. They’re finally seeing delayed deals close, some dating back to January. Long sales cycles are turning into wins.
Rubrik
Another quiet winner. Rubrik stayed above plan in April and is building real pipeline. Their sales team is optimistic, and channel feedback has been positive for over a year now.
Okta
Okta is executing cleanly. Above plan in Q1 and April, with no noticeable dip despite closing their fiscal year in January. They’ve bounced back from their past breach, and new business—particularly around Workforce Identity Cloud is coming in strong. Cross-selling is working, and momentum is clear.
Holding Steady: Solid, But Not Surging
Tenable
Tenable is consistent at plan in both Q1 and April. Their AI-aware add-on is building pipeline, though delays are still common. They’re steady, not spectacular.
Lagging Behind: Hit by Timing and Competition
Varonis
Varonis held the line in Q1 but slipped in April. Delays or losses are likely behind the miss. Their aggressive Q1 discounting may have pulled some business forward, contributing to April’s shortfall.
Rapid7
Struggling more visibly. Rapid7 was already slightly behind plan in Q1, and April made things worse. Hefty discounts from rivals like Tenable and Qualys are hurting their win rates. Rapid7’s own end-of-March promotions might have cannibalized Q2 pipeline.
Broader Market Dynamics: What’s Driving This?
- Longer Sales Cycles: The average sales cycle now stretches to 99 days up nearly 20 days from last quarter.
- Deal Delays: Many companies won’t see deals close until much later in the year.
- Q1 Front-Loading: Companies like Fortinet, Dynatrace, Varonis, and Rapid7 used heavy discounts to boost Q1, but it came at a cost, April sales took a hit.
- Budget Is Still There: Despite delays, enterprise and mid-market buyers still have money to spend. Cybersecurity remains a non-negotiable priority.
- Uncertainty Is the Wild Card: The biggest challenge isn’t budgets or competition it’s the unknown. Companies are cautious, waiting for clarity before moving forward.
Bottom Line
Some cybersecurity firms are navigating the slowdown better than others. Strategic channel bets, product differentiation, and timing discipline are proving to be key advantages. While the market remains cautious, there’s no shortage of opportunity, just a longer path to close it.