Jamf (JAMF) Q2 2025: Security ARR Jumps 40% as Platform and Channel Strategy Accelerate

2025-08-07 | By EarningsIQ Research

Jamf’s Q2 marked a pivotal inflection in security ARR and operational leverage, as the platform strategy and channel-first approach yielded clear results. The quarter’s standout was security ARR growth and the cross-platform expansion, including Android enrollment, which signals a broader addressable market and deeper integration with enterprise customers. Management’s outlook, backed by margin gains and a raised full-year guide, points to continued investment in AI and channel scale as primary growth levers into 2026.

Summary

• Security ARR Expansion: Security-driven wins and cross-sell momentum are reshaping Jamf’s revenue mix and customer value proposition.
• Channel and Platform Leverage: Channel-first execution, especially in the U.S., is accelerating operational scale and reach in mid-market and enterprise.
• AI and Automation Focus: Strategic reinvestment prioritizes AI-driven efficiency and product differentiation heading into FY26.

Performance Analysis

Jamf posted robust Q2 results, with total revenue and operating margin both exceeding the high end of guidance, propelled by platform adoption and security-led growth. Total annual recurring revenue (ARR) grew at a double-digit pace, crossing the $700 million threshold for the first time, with security ARR surging 40% year-over-year to $203 million. This security outperformance was attributed to both organic growth and the full-quarter contribution from the recent identity automation acquisition. Commercial ARR also breached the $500 million mark, demonstrating traction across core segments.

Recurring revenue now comprises 98% of total revenue, underscoring the stickiness of Jamf’s SaaS model, which provides subscription-based management and security solutions for Apple-centric and increasingly cross-platform environments. Notably, RPO (remaining performance obligations) accelerated, with long-term RPO up nearly 40%, reflecting customers’ willingness to commit to longer contracts and larger deployments. Margin expansion was evident, as non-GAAP operating income improved by 360 basis points and sales and marketing efficiency gains contributed to a 40% increase in adjusted EBITDA.

• Security ARR Surge: Security ARR now exceeds $200 million, up 40% YoY, representing nearly 30% of total ARR and establishing security as a core growth pillar.
• Cross-Sell and Identity Automation: The integration of identity automation into education and cross-sell wins contributed meaningfully to upside and pipeline build.
• Channel Contribution Rising: Over two-thirds of global business now flows through the channel, with U.S. channel momentum set to match international scale.

Jamf’s disciplined cost structure and high recurring mix enabled a step-change in cash flow, with trailing unlevered free cash flow surpassing $100 million for the first time, and margin improvement outpacing revenue growth. The company’s capital position was bolstered by a $400 million term loan, earmarked for acquisition-related payments and debt repurchase, supporting balance sheet flexibility.

Executive Commentary

Strategic Positioning

1. Security-Led Platform Expansion

Security is now a central pillar of Jamf’s growth strategy, with platform solutions that integrate management, compliance, and identity. The launch of Jamf for Mobile and Jamf for Mac, both emphasizing layered security and seamless user experience, has driven adoption among large enterprise and regulated industries. The ability to deliver security and management in one SKU simplifies procurement and deployment, strengthening customer lock-in and expanding wallet share.

2. Channel-First Go-to-Market Model

Jamf’s pivot to a channel-first model in the U.S. is accelerating operational leverage, mirroring the company’s established international approach where the majority of business already flows through partners. The rollout of a new partner portal and enhanced incentives for deal registration have reduced friction, enabling partners to self-serve and scale Jamf’s reach into the mid-market and SMB segments. Management expects U.S. channel contribution to approach international levels over the coming quarters.

3. Cross-Platform and Mobile Ecosystem

The introduction of Android enrollment support marks a strategic broadening of Jamf’s addressable market, allowing organizations to consolidate Apple and Android device management under a single platform. This move, driven by customer demand for unified security and compliance, positions Jamf as a more comprehensive solution for mixed-device environments, particularly in mobile-first industries such as transportation, retail, and healthcare.

4. AI and Automation Investment

AI-driven efficiency and automation are emerging as core differentiators, with Jamf embedding AI across sales forecasting, customer support, and product maintenance. The Jamf AI Assistant, now in beta, promises to streamline IT workflows and improve customer experience, while internal automation is already delivering cost savings and earlier risk detection. The strategic reinvestment plan prioritizes further AI development to drive operational scale and product stickiness.

5. Education and Identity Automation Integration

Education remains a key vertical, with identity automation now fully integrated into the education business and its CEO leading the vertical. Cross-sell momentum is building, as evidenced by large school district wins and the addition of identity automation to the sales bag. The education buying season is expected to provide further upside in the coming quarters.

Key Considerations

Q2’s results reflect Jamf’s ability to pivot its business model and resource allocation in response to evolving customer needs and competitive pressures. The company’s focus on security, platform unification, and channel leverage is driving both top-line growth and operational efficiency.

Key Considerations:

• Security as Growth Engine: Security ARR is outpacing overall growth, reshaping Jamf’s value proposition and competitive moat.
• Channel Efficiency Gains: Channel-first execution is reducing sales friction and expanding Jamf’s reach, especially in the U.S. mid-market.
• AI and Automation Payoff: Early AI investments are already yielding measurable efficiency gains and are central to Jamf’s long-term operating model.
• Cross-Platform Opportunity: Android enrollment support will test Jamf’s ability to win mixed-device customers without diluting its Apple-first differentiation.
• Education Cross-Sell Momentum: Identity automation integration is deepening Jamf’s education vertical and providing a template for future cross-segment expansion.

Risks

Jamf faces competitive risk from larger UEM (unified endpoint management) vendors with broader platform coverage, especially as it expands into Android and mixed-device environments. Seasonality in education and timing of revenue recognition may create quarterly volatility. Execution risk remains around AI and automation initiatives, which require sustained investment and governance to scale effectively. Foreign exchange exposure is now managed quarterly, but remains a factor given Jamf’s international footprint.

Forward Outlook

For Q3 2025, Jamf guided to:

• Total revenue of $176 to $178 million (11% YoY growth at midpoint)
• Non-GAAP operating income of $41.5 to $42.5 million (24% margin, 52% YoY growth at midpoint)

For full-year 2025, management raised guidance:

• Total revenue of $701 to $704 million (12% YoY growth at midpoint)
• Non-GAAP operating income of $153.5 to $155.5 million (22% margin, 50% YoY growth at midpoint)
• Unlevered free cash flow growth of at least 75%

Management highlighted the strategic reinvestment plan, continued AI and automation investment, and a focus on channel and enterprise expansion as key drivers for the second half and into fiscal 2026.

• Expect ongoing margin improvement and operating leverage
• Education and identity automation to drive Q3 upside, with some Q2 revenue timing effects normalizing sequential patterns

Takeaways

Jamf’s Q2 performance underscores a successful pivot toward security-led platform growth, operational efficiency, and channel scale. The company’s raised guidance and accelerating margin profile reflect strategic clarity and execution discipline.

• Security ARR is now a material growth engine, with cross-sell and identity automation integration amplifying Jamf’s vertical expansion.
• Channel-first execution is driving efficiency and reach, with U.S. channel momentum poised to match international scale.
• Investors should watch for continued AI-driven margin gains, successful cross-platform penetration, and sustained education vertical growth in upcoming quarters.

Conclusion

Jamf’s Q2 results demonstrate a decisive shift toward security, platform unification, and operational leverage, with the channel and AI as core enablers. The company’s ability to execute on cross-segment growth and maintain discipline on costs positions it for continued outperformance as the platform strategy matures.

Industry Read-Through

Jamf’s security ARR surge and cross-platform move signal a broader trend of endpoint management vendors evolving into security-centric, platform-oriented providers. The shift to channel-first models in the U.S. reflects the growing importance of partner ecosystems for SaaS scale, especially in mid-market and education verticals. AI-driven efficiency gains are becoming table stakes, as vendors seek to differentiate on automation and customer experience. Competitors in the UEM and device security space should monitor Jamf’s integration of identity automation and cross-sell execution, as these could reshape the competitive landscape for device management and security in Apple-dominant and mixed environments.

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