Revenue Growth - As of October 31, 2025, the company reported an Annual Recurring Revenue (ARR) of $1,039.6 million, reflecting a significant growth in new customers and expanded sales to existing customers [149]. - The number of customers with $250,000 or more in ARR increased by 28% year-over-year, while those with over $1,000,000 in ARR grew by 39% year-over-year [135]. - SaaS ARR as of October 31, 2025, is $669.4 million, reflecting a growth strategy focused on subscription services [153]. - Subscription revenue for the three months ended October 31, 2025, is $266.16 million, a 22.3% increase from $217.64 million in the same period of 2024 [178]. - Total revenue for the nine months ended October 31, 2025, is $776.77 million, up from $621.49 million in the same period of 2024, representing a 25.1% increase [178]. - Subscription revenue increased by $48.5 million, or 22%, for the three months ended October 31, 2025, compared to the same period in 2024, primarily due to growth in SaaS and term subscription revenue [182]. - Total revenue for the three months ended October 31, 2025, was $281.9 million, an increase of $46.7 million, or 20%, compared to $235.3 million in 2024 [182]. - Total revenue for the nine months ended October 31, 2025, was $776.8 million, an increase of $155.3 million, or 25%, compared to $621.5 million for the same period in 2024 [200]. - Subscription revenue increased by $159.9 million, or 28%, for the nine months ended October 31, 2025, primarily due to growth in SaaS and term subscription revenue [200]. IPO and Debt Management - The company completed its IPO on February 14, 2025, raising approximately $1,248.2 million in net proceeds from the sale of 60.0 million shares at an initial offering price of $23.00 per share [129]. - Following the IPO, the company repaid $690.0 million of its Term Loans, with a remaining balance of $350.0 million fully repaid by March 3, 2025, incurring a loss of $15.3 million from extinguishment of debt [131]. - The company repaid $690.0 million of Term Loans from the proceeds of its IPO on February 19, 2025, and the remaining balance of $350.0 million on March 3, 2025 [232]. Operating Expenses and Profitability - Operating expenses for the nine months ended October 31, 2025, total $759.89 million, up from $554.63 million in the same period of 2024, reflecting the costs associated with being a public company [178]. - Gross profit margin for the three months ended October 31, 2025, is 66%, slightly down from 67% in the same period of 2024 [178]. - The net loss for the three months ended October 31, 2025, is $35.98 million, a decrease from a net loss of $59.42 million in the same period of 2024 [178]. - Operating expenses rose by $46.9 million, or 26%, totaling $228.7 million for the three months ended October 31, 2025, primarily due to increases in research and development, sales and marketing, and general and administrative expenses [193]. - The company recorded a GAAP income (loss) from operations of $(24,497) thousand for the three months ended October 31, 2025, improving from $(41,622) thousand in 2024 [226]. - The company reported a net loss of $233.8 million for the nine months ended October 31, 2025, adjusted by non-cash charges of $344.3 million [242]. Research and Development - Research and development expenses increased to $51.21 million for the three months ended October 31, 2025, compared to $39.25 million in the same period of 2024, reflecting ongoing investment in product development [178]. - Research and development expenses increased by $12.0 million, or 30%, for the three months ended October 31, 2025, driven by higher employee-based costs and equity-based compensation [193]. - Research and development expenses increased by $42.3 million, or 34%, for the nine months ended October 31, 2025, primarily due to higher equity-based compensation [210]. Customer Retention and Market Presence - The dollar-based net retention rate remains stable at 114% for both October 31, 2025, and October 31, 2024, indicating strong customer retention and expansion [154]. - The company generated 67% of its revenue from the United States for the three months ended October 31, 2025, with 19% from EMEA and 14% from the rest of the world [141]. - The company expects subscription revenue to increase as a percentage of total revenue as it focuses on its SaaS offerings as a strategic priority [161]. Cash Flow and Liquidity - Free cash flow for the nine months ended October 31, 2025, was $(5,700) thousand, an improvement compared to $(131,700) thousand in 2024, driven by higher revenue growth [230]. - The company believes existing cash and cash equivalents will be sufficient to meet liquidity and capital expenditure requirements for at least the next 12 months [235]. - For the nine months ended October 31, 2025, net cash provided by operating activities was $6.7 million, a significant improvement from a net cash used of $120.2 million in the same period of 2024 [242][243]. - Cash provided by financing activities was $202.0 million during the nine months ended October 31, 2025, primarily due to proceeds from the IPO [247]. Equity-Based Compensation - The company recognized $113.8 million in equity-based compensation expense during the three months ended April 30, 2025, due to modifications related to the IPO [127]. - General and administrative expenses increased by $12.2 million, or 45%, for the three months ended October 31, 2025, largely due to higher equity-based compensation and employee-related costs [195]. - General and administrative expenses surged by $78.8 million, or 98%, for the nine months ended October 31, 2025, driven by increased equity-based compensation [212]. Strategic Initiatives - The company launched new offerings in non-employee risk management and cloud infrastructure entitlement management, focusing on AI investments to enhance its solutions [143]. - The company expects license revenue as a percentage of total revenue to continue to decrease over time as it shifts focus from perpetual licenses to subscriptions [183].

Core Insights - Sailpoint's earnings exceeded expectations, with a revenue increase of 20% and an annual recurring revenue (ARR) growth of 28%, transitioning from a loss to an 8 cent profit [5][16]. Company Overview - Sailpoint operates in the identity security space, focusing on identity governance to ensure appropriate access to data and information, which is increasingly critical as identity becomes a primary attack vector for cyber threats [2][4][9]. Market Position - The company is currently serving about half of the Fortune 500 and a quarter of the Global 2000, indicating strong market recognition of the identity security challenge [9]. Financial Performance - The company reported a significant increase in ARR, crossing over $1 billion this quarter, highlighting its transition from a software perpetual license model to a predominantly SaaS model [16][17]. Customer Retention - Sailpoint boasts high gross revenue retention rates, indicating strong customer loyalty and the stickiness of its technology, which integrates deeply with clients' internal systems [18][19]. Industry Sentiment - Despite strong financial results, the stock performance has been affected by broader market sentiments towards newly public companies, which are often viewed as riskier investments [10][11]. Growth Potential - The company is positioned for growth in emerging technologies such as AI and agentic technologies, while also maintaining a strong core technology for managing human identity landscapes [21].

Core Insights - Salepoint has achieved a significant milestone by crossing the 1 billion mark for annual recurring revenue, indicating strong customer demand for its services [1][8] - The company is positioned to address the challenges organizations face in protecting data access, particularly with the rise of AI tools and nonhuman forms of identity [2][12] Company Overview - Salepoint primarily serves mid to large enterprises, typically those with around 3,000 to 5,000 employees and above, with a strong presence in the Fortune 500 and Global 2000 [9][10] - The company operates across various industries, focusing on helping organizations leverage new AI capabilities while ensuring data protection [12] Market Dynamics - There is a growing tension among companies regarding the deployment of AI agents, as they can inadvertently expose sensitive data, leading to potential risks [2][7] - Organizations are increasingly cautious about the rapid deployment of these new agents due to the associated risks of data exposure and potential malicious access [7][12] Customer Concerns - A common scenario involves employees inadvertently accessing sensitive information, highlighting the need for robust data protection measures [6][12] - Companies are particularly concerned about protecting financial data, healthcare information, and intellectual property from both inadvertent exposure and intentional breaches [12]

Core Insights - SailPoint, Inc. reported $281.94 million in revenue for the quarter ended October 2025, showing no year-over-year change, with an EPS of $0.08 compared to $0 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $270.35 million by 4.29%, and the EPS surpassed the consensus estimate of $0.06 by 33.33% [1] Financial Performance Metrics - SaaS Annual Recurring Revenue reached $669 million, slightly above the estimated $663.64 million [4] - Total Annual Recurring Revenue was $1.04 billion, compared to the estimated $1.03 billion [4] - Subscription revenue was reported at $266.16 million, exceeding the average estimate of $253.96 million [4] - Revenue from subscription term subscriptions was $65.11 million, significantly higher than the estimated $50.18 million [4] - Gross profit from subscriptions was $189.39 million, above the estimated $183.01 million [4] Stock Performance - Over the past month, SailPoint, Inc. shares returned -0.3%, while the Zacks S&P 500 composite increased by 1.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Financial Data and Key Metrics Changes - The company surpassed $1 billion in annual recurring revenue (ARR), closing fiscal Q3 at $1.04 billion, representing a 28% year-over-year increase [18] - SaaS ARR grew 38% year-over-year, now standing at $669 million, which constitutes 64% of total ARR [19] - Revenue for fiscal Q3 2026 was $282 million, an increase of 20% year-over-year, with subscription revenue growing 22% [22] - Adjusted operating income was $56 million, or a 19.8% margin, exceeding guidance due to higher term subscription revenue and disciplined expense management [22] - Net revenue retention (NRR) was 114% for the quarter [22] Business Line Data and Key Metrics Changes - Strong growth was noted in cross-sale motions driven by non-employee risk management, machine identity security, and data access security solutions, which collectively more than doubled in ARR year-over-year [19] - The company experienced a strong migration quarter, with more than half of platform modernizations including at least one emerging cross-sale product [20] Market Data and Key Metrics Changes - The demand for new products introduced at the Navigate conference was strong, with orders booked for each newly available product despite only being generally available for one month [19] - The company noted broad-based strength across geographies and industry verticals [19] Company Strategy and Development Direction - The company is focused on reimagining identity security, moving towards real-time, adaptive identity solutions [5][6] - A new Flex licensing model was introduced to meet customers' needs in their identity journey, allowing for more choice and flexibility in adopting innovations [10] - The company aims to expand its family of identity security solutions while simplifying deployment and accelerating time to value [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline, indicating strong engagement across both new and existing customers [15] - The company is committed to building for the long term, focusing on the depth of identity context and breadth of identities protected [16] - The management highlighted the importance of adapting to the expanding threat landscape and the need for organizations to modernize their identity security [15][16] Other Important Information - The company completed its largest-ever global user conference, where significant product innovations were unveiled [7] - The introduction of the SailPoint Accelerated Application Management solution aims to simplify the administration of identity programs [14] Q&A Session Summary Question: Can you talk about the top-of-funnel pipeline with new logos? - Management noted strong demand from both new customers and existing customers excited about agentic security [26][27] Question: Any insights on the ramp into Q4? - Management expressed confidence in the overall health of the business and indicated that Q4 would represent about a third of total year-net new ARR [31][33] Question: How does SailPoint differentiate itself in a consolidating market? - Management emphasized the breadth and depth of their identity solutions, which they believe creates a defensible moat against competitors [39][42] Question: Can you discuss the Savvy acquisition and its impact? - Management highlighted that the Savvy technology enhances application discovery and governance, allowing for quicker deployment and deeper insights [46][49] Question: How is the company using AI internally? - Management confirmed that AI is being embraced across various business functions, with exciting use case possibilities emerging [58][59] Question: What are the expectations for fiscal '27? - Management indicated a focus on growth over profitability while maintaining strong margin performance [98][99] Question: What hurdles might arise in customer adoption of Agentic AI? - Management acknowledged the need to help customers manage the proliferation of agents and emphasized the importance of building trust in AI-driven identity decisions [102][103]

Financial Data and Key Metrics Changes - In fiscal Q3 2026, the company surpassed $1 billion in annual recurring revenue (ARR), closing at $1.04 billion, representing a 28% year-over-year increase [18] - SaaS ARR grew 38% year-over-year, now standing at $669 million, which constitutes 64% of total ARR [19] - Revenue for fiscal Q3 2026 was $282 million, an increase of 20% year-over-year, with subscription revenue growing 22% [22] - Adjusted operating income was $56 million, yielding a 19.8% margin, exceeding guidance due to higher term subscription revenue and disciplined expense management [22] - Net revenue retention (NRR) for the quarter was 114% [22] Business Line Data and Key Metrics Changes - Strong growth was noted in cross-sell motions driven by Non-Employee Risk Management, Machine Identity Security, and Data Access Security solutions, which collectively more than doubled in ARR year-over-year [19] - The company experienced a robust migration quarter, with more than half of platform modernizations including at least one emerging cross-sell product [20] Market Data and Key Metrics Changes - The demand for new products introduced at the Navigate conference was strong, with orders booked for each newly available product despite only being generally available for one month [19] - The company noted broad-based strength across geographies and industry verticals, indicating a healthy expansion of the pipeline [19] Company Strategy and Development Direction - The company is focused on reimagining identity security, moving towards real-time, adaptive identity solutions [5][6] - The introduction of the new Flex licensing model aims to provide customers with more choice and flexibility in adopting innovations [10] - The company is positioning itself as a strategic identity layer in the security landscape, emphasizing the depth of identity context and breadth of identities protected [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline and engagement with both new and existing customers, indicating a strong outlook for Q4 and beyond [15] - The company is committed to building for the long term, focusing on governance and adaptive identity models to secure enterprises effectively [16] Other Important Information - The company completed its largest-ever global user conference, where significant product innovations were unveiled [7] - The company is leveraging AI internally to enhance various aspects of the business, from product development to operational functions [59] Q&A Session Summary Question: Can you talk about the top-of-funnel pipeline with new logos? - Management noted strong demand from both new customers and existing customers excited about Agentic security, with the introduction of Flex pricing expected to accelerate interest [26][28] Question: Any insights on the ramp into Q4? - Management expressed confidence in the overall health of the business, indicating that Q4 is expected to represent about a third of total year-net new ARR, consistent with prior years [31][33] Question: How does SailPoint differentiate itself in a consolidating market? - Management highlighted the company's breadth and depth in identity management, emphasizing the challenges competitors face in replicating this capability [39][42] Question: Can you discuss the Savvy acquisition and its impact? - Management indicated that the Savvy acquisition enhances the company's ability to discover applications quickly, which is crucial for governance and compliance [46][48] Question: How is the company using AI internally? - Management confirmed that AI is being embraced across various business functions, with exciting use case possibilities emerging [59] Question: What are the expectations for fiscal 2027? - Management indicated a focus on growth over profitability, with a commitment to delivering high ARR growth while expanding margins [98][99] Question: What hurdles might arise in customer adoption of Agentic AI? - Management acknowledged the need to help customers manage the proliferation of agents and emphasized the importance of building trust in AI-driven identity decisions [102][104]

Financial Data and Key Metrics Changes - In fiscal Q3 2026, the company surpassed $1 billion in annual recurring revenue (ARR), closing at $1.04 billion, representing a 28% year-over-year increase [16][17] - SaaS ARR grew 38% year-over-year, now standing at $669 million, which constitutes 64% of total ARR [17] - Revenue for Q3 was $282 million, an increase of 20% year-over-year, with subscription revenue growing 22% [19] - Adjusted operating income was $56 million, yielding a margin of 19.8%, driven by higher term subscription revenue and disciplined expense management [19] - Net revenue retention (NRR) for the quarter was 114% [19] Business Line Data and Key Metrics Changes - Strong growth was noted in cross-sell motions driven by non-employee risk management, machine identity security, and data access security solutions, which collectively more than doubled in ARR year-over-year [17] - The company experienced a strong migration quarter, with more than half of platform modernizations including at least one emerging cross-sale product [18] Market Data and Key Metrics Changes - The demand for identity security solutions is accelerating as organizations recognize the need for adaptive identity management in response to expanding threats [4][8] - The company noted strong initial interest in new products introduced at the Navigate conference, with orders booked for each newly available product despite being generally available for only one month [17] Company Strategy and Development Direction - The company is focused on reimagining identity security, moving from static compliance-first approaches to real-time adaptive identity solutions [4][6] - The introduction of the Flex licensing model aims to provide customers with more choice and flexibility in adopting innovations [9] - The company is positioning itself as a strategic identity layer in the security landscape, emphasizing the depth of identity context and breadth of identities protected [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong pipeline and diversified customer engagement, indicating that organizations are increasingly turning to the company for identity security solutions [13] - The company is committed to building for the long term, focusing on governance and adaptive identity models to efficiently protect enterprises [14] Other Important Information - The company completed its largest-ever global user conference, Navigate, unveiling significant product innovations [5][6] - The company is leveraging AI internally to enhance various aspects of the business, from product development to operational efficiency [40] Q&A Session Summary Question: Can you talk about the top-of-funnel pipeline with new logos? - Management noted that both new customers and existing customers are excited about the developments in agentic security, with the Flex pricing model expected to accelerate interest [24] Question: Can you provide insights on the fourth quarter's new business for ARR? - Management expressed confidence in the overall health of the business and indicated that Q4 is expected to represent about a third of total year-net new ARR [27] Question: How does SailPoint differentiate itself in a market defined by consolidation? - Management highlighted the company's defensible moat in breadth and depth of identity types, emphasizing the challenges competitors face in replicating this capability [29][31] Question: Can you discuss the Savvy acquisition and its impact on customer onboarding? - Management indicated that the Savvy technology enhances application discovery and governance, allowing for quicker onboarding and deeper compliance [33][34] Question: What hurdles might customers face in adopting Agentic AI for identity security? - Management acknowledged the need for organizations to manage the proliferation of agents and emphasized the importance of building trust in AI-driven identity decisions [60][61]

Financial Performance - The company's Annual Recurring Revenue (ARR) reached $1040 million, demonstrating a year-over-year growth of 28%[10] - SaaS ARR experienced even stronger growth, increasing by 38% year-over-year to $669 million[10] - Q3'26 total revenue was $282 million, a 20% increase compared to Q3'25[10] - The company maintains a strong customer retention rate, with a Net Retention Rate (NRR) of 114%[10] Customer Growth - The company has approximately 3,170 customers[10] - The number of customers with ARR greater than $250K increased by 28% year-over-year[66] - The number of customers with ARR greater than $1 million increased by 39% year-over-year[68] Profitability - The adjusted subscription gross profit margin for Q3'26 was 82.5%[10] - The adjusted operating margin for Q3'26 was 19.8%[10] Future Outlook - The company projects Q4'26 ARR to be between $1120 million and $1124 million, representing a 28% year-over-year growth[77] - The company projects total revenue for fiscal year 2026 to be between $1067 million and $1071 million, representing a 24% year-over-year growth[77]

Financial Performance - SailPoint surpassed $1 billion in Annual Recurring Revenue (ARR) during the fiscal third quarter, achieving a year-over-year growth of 28% to reach $1,040 million[3][6][7]. - Total revenue for the quarter was $282 million, reflecting a 20% year-over-year increase, with subscription revenue at $266 million, up 22%[7]. - Adjusted income from operations was $56 million, representing 20% of revenue, compared to $47 million in the same quarter last year[7]. - For Q4 2026, SailPoint expects total ARR guidance of $1,120 to $1,124 million, with a year-over-year growth rate of 28%[5]. - The company anticipates total revenue for FY 2026 to be between $1,067 and $1,071 million, with a year-over-year growth of 24%[5]. - Adjusted earnings per share (EPS) for FY 2026 is projected to be between $0.22 and $0.23, up from the previous guidance of $0.20 to $0.22[5]. - Total revenue for the three months ended October 31, 2025, was $281,942, representing a 20% increase from $235,259 in the same period of 2024[44]. - Subscription revenue for the three months ended October 31, 2025, reached $266,160, a 22% increase compared to $217,637 in the prior year[44]. - Total revenue for the nine months ended October 31, 2025, reached $776,769,000, up 25.0% from $621,490,000 in the prior year[37]. - Total subscription revenue for the nine months ended October 31, 2025, was $729,420, a 28% increase from $569,540 in the same period of 2024[44]. - SaaS revenue for the nine months ended October 31, 2025, was $432,534, reflecting a 35% increase from $320,540 in 2024[44]. Cash Flow and Liquidity - Cash flows from operating activities were $54 million, with free cash flow of $49 million[6]. - Cash and cash equivalents as of October 31, 2025, were $298,114,000, significantly higher than $121,293,000 as of January 31, 2025, showing improved liquidity[40]. - Net cash provided by operating activities for the three months ended October 31, 2025, was $53,578, compared to a net cash used of $12,002 in the same period of 2024[42]. - Cash, cash equivalents, and restricted cash at the end of the period totaled $304,416, significantly up from $75,052 at the end of October 2024[42]. - Free cash flow for the three months ended October 31, 2025, was $49,046,000, compared to a negative free cash flow of $16,780,000 in the same period of 2024[48]. Profitability and Expenses - SailPoint's adjusted operating margin for the quarter was 20%, compared to 20% in the same quarter last year[7]. - Gross profit for the three months ended October 31, 2025, was $187,048,000, compared to $157,303,000 for the same period in 2024, reflecting a gross margin improvement[37]. - GAAP gross profit for the three months ended October 31, 2025, was $187,048, with a gross profit margin of 66.3%, slightly down from 66.9% in 2024[46]. - Adjusted gross profit for the three months ended October 31, 2025, was $219,625, with an adjusted gross profit margin of 77.9%[46]. - The net loss for the three months ended October 31, 2025, was $35,975,000, a decrease from a net loss of $59,420,000 in the same quarter of 2024[37]. - GAAP net loss for the three months ended October 31, 2025, was $35,975,000, compared to a loss of $24,497,000 in the same period of 2024[50]. - Adjusted income from operations for the three months ended October 31, 2025, was $55,793,000, reflecting an adjusted operating margin of 19.8%, compared to $46,722,000 and 19.9% in 2024[47]. - Equity-based compensation expense for the three months ended October 31, 2025, was $49,010,000, significantly higher than $21,947,000 in 2024[47]. - GAAP general and administrative expense for the three months ended October 31, 2025, was $39,121,000, compared to $26,965,000 in 2024[48]. - Adjusted sales and marketing expense for the three months ended October 31, 2025, was $102,790,000, up from $87,752,000 in 2024[47]. Research and Development - Research and development expenses increased to $51,214,000 for the three months ended October 31, 2025, from $39,249,000 in the same period of 2024, indicating a focus on innovation[37]. - GAAP research and development expense increased to $51,214,000 for the three months ended October 31, 2025, up from $39,249,000 in 2024[48]. Market Outlook - The company remains focused on innovation and market expansion as key strategies for future growth[3]. - The company anticipates continued growth in the identity security solutions market, although it acknowledges potential risks and uncertainties that could impact future performance[33].

AUSTIN, Texas, Dec. 09, 2025 (GLOBE NEWSWIRE) -- SailPoint, Inc. (Nasdaq: SAIL), a leader in enterprise identity security, today announced financial results for its fiscal third quarter ended October 31, 2025. The company’s earnings release and presentation can be accessed on the quarterly results section of SailPoint’s investor relations website. SailPoint will host a conference call today at 8:30 a.m. Eastern Time to discuss the results and outlook, which is accessible here. About SailPoint At SailPoint ( ...