Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________________ FORM 10-Q ________________________________________________________________ For the transition period from to Commission File Number 001-42522 ________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2025 or ...

SailPoint, Inc. (SAIL) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individual inves ...

SailPoint, Inc. SAIL reported better-than-expected first-quarter adjusted EPS results and raised its FY26 guidance above estimates on Wednesday.The company reported quarterly revenue growth of 23% year-on-year to $230.47 million, compared to analyst consensus estimates of $235.19 million. The quarterly subscription revenue was $215.32 million, up by 27%. The company reported an adjusted EPS of 1 cent, surpassing the consensus analyst estimate of a 1-cent loss.For the second-quarter of fiscal year 2026, Sail ...

SailPoint, Inc. (NASDAQ: SAIL ) provides identity security solutions for the enterprise, featuring lifecycle management, compliance management and analytics. I think its modular-based identity platform powered by AI is quite unique positioned to capture more enterprise customers. I amAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it express ...

SailPoint (SAIL) Q1 2026 Earnings Call June 11, 2025 08:30 AM ET Company Participants Scott Schmitz - SVP - IRMark McClain - CEO & FounderBrian Carolan - CFOJoel Fishbein - Managing DirectorMatt Mills - PresidentPeter Levine - Managing DirectorGray Powell - Managing DirectorShaul Eyal - Managing Director - Equity ResearchJoseph Gallo - Senior Vice PresidentBrian Essex - Executive DirectorMichael Romanelli - Vice PresidentSaket Kalia - Managing Director Conference Call Participants Matt Hedberg - Managing Di ...

SailPoint (SAIL) Q1 2026 Earnings Call June 11, 2025 08:30 AM ET Speaker0 Day, and thank you for standing by. Welcome to CellPoint's First Quarter twenty twenty six Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer Please be advised today's conference is being recorded. I would now like to hand this conference over to your speaker today, Scott Schmitz. Please go ahead. Speaker1 Good morning, and thank you ...

Fiscal Q1'26 Earnings Presentation June 2025 This presentation includes market and industry data and forecasts that the Company has derived from independent consultant reports, publicly available information, various industry publications, other published industry sources, and its internal data and estimates. Independent consultant reports, industry publications, and other published industry sources generally indicate that the information contained therein was obtained from sources believed to be reliable. ...

Core Insights - SailPoint, Inc. reported strong financial results for its fiscal first quarter ended April 30, 2025, highlighting continued expansion among its customer base, particularly within Fortune 500 and Forbes Global 2000 companies [2][3] - The company emphasizes its AI and data-driven identity security platform, which is designed for extensibility and resilience, as a key factor in its consistent performance [2][3] Financial Highlights - Total Annual Recurring Revenue (ARR) reached $925 million, a 30% year-over-year increase, with SaaS ARR growing 39% year-over-year to $574 million [6][7] - Total revenue for the quarter was $230 million, reflecting a 23% year-over-year increase, with subscription revenue at $215 million, up 27% year-over-year [7][39] - The company reported a GAAP operating loss of $(185) million, or (80)% of revenue, compared to $(68) million, or (36)% of revenue in the same quarter of the previous year [7][40] Financial Outlook - For Q2 and the full year of fiscal 2026, SailPoint expects total ARR guidance of $963 to $967 million, with a year-over-year growth rate of 26% [4] - Total revenue guidance for Q2 is projected between $242 to $244 million, with a year-over-year growth rate of 22% to 23% [4] - Adjusted earnings per share (EPS) for the full year is expected to be between $0.16 to $0.20, compared to prior guidance of $0.14 to $0.18 [4] Operational Metrics - The number of customers with more than $1 million in ARR increased by 62% year-over-year, indicating strong customer retention and growth [6] - The company’s adjusted operating margin for the quarter was 10.2%, consistent with the previous year [40] Cash Flow and Balance Sheet - Cash and cash equivalents as of April 30, 2025, were $228.1 million, up from $121.3 million at the end of the previous quarter [33] - The company reported net cash used in operating activities of $(96.8) million for the quarter, compared to $(55.4) million in the same period last year [36]

Revenue Growth and Financial Performance - Revenue increased from $365.3 million to $793.9 million from the fiscal year ended December 31, 2020, to the fiscal year ended January 31, 2025, indicating significant growth[105] - The company recognizes most of its revenue ratably over the term of agreements, which may delay the reflection of downturns in sales in operating results[123] - Fluctuations in quarterly results may not fully reflect the underlying performance of the business, making period-to-period comparisons less meaningful[119] - Revenue recognition may fluctuate due to the shift from term subscriptions to SaaS subscriptions, making period-to-period comparisons challenging[129] Customer Acquisition and Retention - Customer retention and expansion are critical, as customers typically enter into three-year contracts with annual billing upfront, and there is no obligation to renew[110] - The company faces risks in acquiring new customers and retaining existing ones, which could adversely affect future revenues and operating results[107] - The sales cycle for the company's offerings is long and unpredictable, requiring considerable time and resources to educate potential customers[121] - The company faces risks related to customer acquisition, retention, and the introduction of new solutions, which could adversely affect its financial condition[111] Market Dynamics and Competition - The market for identity security solutions is rapidly evolving, and the company's future success depends on the growth of this market[114] - Intense competition exists in the identity security market from both established companies and new entrants, which may impact the company's competitive position[130] - The competitive landscape is characterized by rapid technological advancements and market consolidation, which could lead to price reductions and reduced revenue[133] - The company may struggle to maintain its competitive position due to the constant change and innovation in the identity security solutions market[130] Operational Challenges and Investments - The company expects to continue investing in research and development, sales, and marketing, which may lead to earlier recognition of costs compared to revenue[128] - The complexity of operations is expected to increase as the company grows, necessitating substantial investments in operational and management controls[135] - The company may face challenges in integrating acquired businesses and technologies, which could adversely affect operating results and liquidity[159] - The company must maintain adequate research and development resources to remain competitive, as failure to do so could adversely affect its business and results of operations[181] International Operations and Economic Risks - The company operates in over 60 countries and has employees in over 20 countries, highlighting its international expansion efforts[145] - The company anticipates that unfavorable global economic conditions, including inflation and geopolitical conflicts, could limit growth and negatively impact results[148] - Risks associated with international operations include currency fluctuations, political instability, and compliance with local laws, which could affect financial performance[146] Cybersecurity and Compliance Risks - Cybersecurity breaches could disrupt operations and expose the company to liability, particularly as it becomes a more attractive target for cyber attacks[182] - The company has legal obligations to protect customer data, and security incidents could result in litigation and damage relationships with existing customers[188] - The company is exposed to potential legal and financial risks from cybersecurity incidents, which could harm its reputation and customer trust[200] - The company must navigate export controls and economic sanctions laws, which could impair international competitiveness and lead to liability if not fully compliant[242] Intellectual Property and Legal Risks - The protection of intellectual property rights is critical for the company's success, with reliance on a combination of copyright, trademark, patent, and trade secret laws[209] - There is a risk of intellectual property claims from third parties, which could result in costly litigation and damage to the company's reputation[215] - The use of open source software could negatively affect the company's ability to monetize its solutions and expose it to litigation risks[220] Financial Structure and Governance - The company has a senior secured term loan facility with an original principal amount of $1.59 billion and a revolving credit facility of $125 million[222] - The company may incur significant indebtedness in the future, which could impact its strategic flexibility and liquidity[222] - Approximately 86% of the voting power of the outstanding common stock is controlled by Thoma Bravo, which influences corporate decisions and board elections[264] - The company does not intend to pay dividends on its common stock, focusing instead on retaining earnings for business operations and expansion[260]

Financial Data and Key Metrics Changes - The company ended fiscal year 2025 with $877 million in annual recurring revenue (ARR), a 29% year-over-year increase, with SaaS ARR growing 39% [5][19] - Total revenue for Q4 was $240 million, up 18% year-over-year, with subscription revenue of $224 million, up 22% year-over-year [20] - Adjusted gross profit margin increased by 80 basis points year-over-year to 78.9%, and adjusted operating margin increased by 530 basis points year-over-year to 19% [20][22] Business Line Data and Key Metrics Changes - The company reported an almost 80% year-over-year increase in customers with ARR greater than $1 million, indicating strong demand for identity security solutions [6][21] - Dollar-based net retention rate remained steady at 114%, driven by suite upgrades, migrations, upsell, and cross-sell initiatives [21][26] Market Data and Key Metrics Changes - Approximately 68% of ARR comes from the U.S., indicating a strong domestic market presence [120] - The company is focused on expanding its presence in the public sector, which represents about 12% to 14% of total revenue, with U.S. Federal business being less than half of that [37][39] Company Strategy and Development Direction - The company emphasizes industry leadership, continuous innovation, and efficient growth as key factors for success [6][13] - Recent innovations include the introduction of Harbor Pilot for AI agents and the development of agent identity security, addressing emerging market needs [12][11] - The company aims to leverage its expertise in identity security to address the challenges posed by AI agents and machine identities [11][76] Management's Comments on Operating Environment and Future Outlook - Management views identity security as a resilient market segment, with continued strong demand despite macroeconomic challenges [30] - The company is optimistic about its future, citing strong market leadership and technological expertise as key advantages [17][26] Other Important Information - The company expects ARR to reach $898 million in Q1 of fiscal year 2026, representing a 27% year-over-year increase [24] - For fiscal year 2026, the company anticipates ARR of $1.08 billion, up 23% year-over-year, with revenue expected to be approximately $1.03 billion [26] Q&A Session Summary Question: How is the macro environment affecting the company? - Management believes identity security is considered essential by customers, and demand remains high despite macroeconomic challenges [30] Question: What is the size of the U.S. Federal business? - The public sector business represents about 12% to 14% of revenue, with U.S. Federal being less than half of that [37][39] Question: Can you quantify the momentum in machine and non-human identities? - The machine identity security product launched in October 2024 saw strong demand, contributing to Q4 results [48][49] Question: What is the strategic opportunity in identity consolidation? - The company targets complex environments, where it believes it can deliver significant value compared to competitors focusing on simpler solutions [56][58] Question: How is the geographic mix performing? - The company continues to see a balanced mix in ARR, with approximately 68% coming from the U.S. [120]