SailPoint Inc(US:SAIL)2025-12-09 12:09Financial 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].