PagerDuty (PD) Q3 2025 earnings summary

Executive summary

• Q3 FY25 revenue rose 9.4% year-over-year to $119 million, with non-GAAP operating income of $25 million and a 21% margin; ARR reached $483 million, up 10% year-over-year.

• Net loss attributable to common stockholders was $6.6 million, an improvement from $15.1 million in the prior year; non-GAAP net income per diluted share was $0.25.

• Enterprise segment showed strong momentum, with customers over $100K in ARR growing to 825 (up 6%) and multi-product, multi-year deals increasing.

• Product innovation, especially in AI/ML-powered automation and AIOps, drove multi-product adoption and was recognized by Forrester and GigaOm.

• Share repurchase activity included 5.1 million shares repurchased under a $100 million program, with $1.5 million remaining authorized.

Financial highlights

• Q3 revenue was $119 million, up 9.4% year-over-year; non-GAAP operating margin was 21.0%; non-GAAP gross margin was 86.0%.

• Free cash flow for Q3 was $19.4 million (16% margin); net cash from operating activities was $22.1 million.

• Cash, cash equivalents, and investments totaled $542.2 million at quarter end.

• Non-GAAP net income for Q3 was $23.7 million, or $0.25 per diluted share.

• Net loss per share was $0.07, improved from $0.16 year-over-year.

Outlook and guidance

• Q4 FY25 revenue expected between $118.5–$120.5 million, representing 7–8% growth; Q4 non-GAAP net income per diluted share expected at $0.15–$0.16.

• FY25 revenue guidance raised to $464.5–$466.5 million (8% growth); non-GAAP net income per diluted share raised to $0.78–$0.79.

• Management expects existing liquidity and cash flow to support operations and capital expenditures for at least the next 12 months.

• Exiting FY25 with 10% ARR growth, aiming for re-acceleration in FY26.

• Focus remains on enterprise expansion, product innovation, and operating margin improvement.