Octave Intelligence (OCTV) Q3 2026 earnings summary

Executive summary

• Q3'26 ARR reached $1.171B, up 7% YoY; revenue was $415.322M, up 6% organically on a constant-currency basis, and recurring revenue was $290.589M, up 5%.

• Adjusted operating margin was 28%, up from 27%; management said Q3 results were in line with expectations and reaffirmed FY26 outlook.

• Strategy focuses on SaaS, cross-selling across four workflows, and applying AI across design, build, operate and protect; medium-term targets include 10%+ ARR growth and 23–24% free cash flow margin.

Financial highlights

• Q3 adjusted operating income was $115.713M; adjusted net income was $85.561M and adjusted diluted EPS was $0.32. GAAP operating income was $56.013M and net income was $59.012M.

• Q3 gross margin was 76% on an adjusted presentation, versus 75% reported in another summary; adjusted operating margin was 28%.

• Q3 cash from operations was $95.377M and free cash flow was $64.966M, at a 16% margin; nine-month free cash flow was $240.5M.

• Nine-month revenue rose 1% to $1.200B; reported operating loss was $1.950B and net loss was $1.864B, primarily reflecting $2.135B in non-cash impairment charges.

Outlook and guidance

• FY26 revenue guidance is $1.640B–$1.660B, with 0.5%–2% organic constant-currency growth; recurring revenue guidance is $1.145B–$1.150B, with 5.5%–6% growth.

• FY26 ARR guidance is $1.185B–$1.205B, with 6%–8% organic constant-currency growth; stronger-dollar FX headwinds are expected to largely offset Cerebre’s ARR contribution.

• FY26 adjusted operating margin guidance remains ~30% and free cash flow margin ~20%; medium-term targets include 10%+ ARR growth and 23–24% free cash flow margin.

• Q4 guidance: revenue $440M–$460M, recurring revenue $292M–$297M, adjusted operating margin 31%–32%, and free cash flow margin ~30%; a large prior-year perpetual-license quarter weighs on reported revenue growth.

• Guidance assumes continued SaaS adoption, customer retention and cross-selling, with no material deterioration in macro conditions or end-market demand.