SailPoint (SAIL) Q1 2026 earnings summary

Executive summary

• ARR reached $925 million, up 30% year-over-year, with SaaS ARR growing 39% to $574 million and strong enterprise adoption, including Fortune 500 and Forbes Global 2000 companies.

• Q1 2026 revenue was $230 million, up 23% year-over-year, driven by SaaS and term subscription growth.

• Customers with ARR over $1 million increased 62% year-over-year to 170, reflecting robust customer expansion.

• Identity security remains a top spending priority, with industry recognition from Gartner, KuppingerCole, and Frost & Sullivan.

• Completed IPO in February 2025, raising $1.25 billion in net proceeds and converting to a Delaware corporation.

Financial highlights

• Subscription revenue rose 27% year-over-year to $215 million; SaaS ARR reached $574 million, up 39% year-over-year.

• Adjusted gross profit margin was 76.3%; adjusted operating margin was 10.2%, with adjusted EPS at $0.01 for the quarter.

• GAAP net loss was $(187) million, primarily due to IPO-related equity compensation and higher operating expenses.

• Ended Q1 with $228 million in cash and no debt after repaying $1.04 billion in Term Loans using IPO proceeds.

• Cash used in operating activities was $97 million, including IPO-related outflows.

Outlook and guidance

• Q2 2026 ARR expected at $965 million, up 26% year-over-year; revenue guidance at $243 million, up 22%.

• Full-year 2026 ARR guidance raised to $1.1 billion, up 25.5% year-over-year; revenue expected at $1.039 billion, up 21%.

• Adjusted operating margin for FY26 projected at 14.6–16.1%; adjusted EPS guidance is $0.14–$0.20 on 565 million diluted shares.

• 90% of net new ARR expected from SaaS for the remainder of FY26.