Pexip (PEXIP) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 25% YoY to $32.9m; ARR reached $143.5m, up 17% YoY, led by Secure & Custom growth of 27%.

• Adjusted EBITDA increased to $9.7m from $5.2m; free cash flow rose to $8.6m from $2.8m.

• Secure video software can be deployed on-premises, in private clouds or across global clouds, serving organizations with strict data-control and security requirements.

Financial highlights

• Q3 revenue was $32.9m vs. $26.3m YoY; gross profit was $28.9m vs. $23.6m.

• Adjusted EBITDA was $9.7m vs. $5.2m; reported EBITDA was $9.7m vs. $4.7m, and EBIT was $8.3m vs. $3.3m.

• Profit before tax rose 119% YoY to $7.2m; net financials were -$1.1m, primarily due to exchange-rate losses.

• Q3 self-hosted software revenue grew 31% to $15.8m; Pexip as-a-Service revenue grew 19% to $17.1m.

• Revenue growth outpaced ARR growth partly due to revenue-recognition timing and delivery of two large three-year software contracts in Q3.

Outlook and guidance

• Q4 ARR guidance is $144m–$150m; the wider range reflects uncertainty over one Connected Spaces customer and a possible $3m–$4m ARR reduction.

• Secure & Custom is expected to deliver another strong quarter, with large deals potentially closing on either side of year-end.

• Long-term ambitions are consistent double-digit ARR growth, Secure & Custom growth above 25%, and EBITDA margin above 30%.

• Market prospects are supported by demand for sovereign control of data and IT platforms, custom video workflows, and stronger security amid AI and quantum-computing advances.