Octave (OCTAVE) Investor Day 2026 summary

Strategic vision and market opportunity

• Focus on integrating design, build, operate, and protect workflows to address inefficiencies in asset-intensive industries, targeting a $28B market in 2025 expected to grow to $40B+ by 2029, driven by digital transformation, regulatory, and security trends.

• Offers a unified lifecycle intelligence platform with open, interoperable architecture, supporting integration across customer environments and creating a compounding data advantage.

• Only 14% of customers use more than one workflow, but these represent nearly half of ARR, highlighting significant cross-sell potential; customers on 3+ workflows are 15x more valuable.

• Recognized as a market leader by top analysts, with 35+ industry recognitions, #1 market share in engineering design for 15 years, and a customer base of 4,500+ organizations, 60% of which are Global Fortune 500.

• Independence from Hexagon/prior parent enables unified strategy, focused R&D, accelerated integration, and enhanced transparency.

Financial performance and guidance

• FY25 revenue reached $1.64B, with 66% from recurring subscriptions and a 31% adjusted operating margin.

• ARR CAGR over the last three years was 8%, with a medium-term target to exceed 10% through upsell, cross-sell, and new customer acquisition.

• SaaS revenue grew 17% year-over-year overall and 40% YoY in the $1M+ customer tier, with a shift from perpetual to subscription models expected to reach 75%+ of total revenue in the medium term.

• 97% gross retention and 105% net retention, with 51% of ARR from $1M+ customers and strong upsell/cross-sell momentum.

• Free cash flow margins consistently exceed 20%, with plans for 50-100 basis points annual improvement post-2026; capital structure includes <$445M net debt, <1.0x leverage, and $500M undrawn revolver.

Go-to-market and growth levers / Business model and growth drivers

• Four key growth levers: retention, upsell, cross-sell, and new customer acquisition, with systematic processes and data-driven account planning; ~1/3 of ARR growth from new logos and 2/3 from existing customers.

• 86% of customers are on a single workflow, representing the largest growth opportunity; three workflows yield 15x ARR compared to one.

• Channel sales are targeted to double from 10% to 20% of revenue, with investments in partner enablement and marketplace presence.

• Largest growth opportunities are in energy, data centers, and nuclear sectors, especially in the operate workflow.

• SaaS revenue up 40% YoY in the $1M+ customer tier, with disciplined pricing, enterprise focus, and value-based selling.