SAIL 8-K
SailPoint, Inc. (SAIL)
8-K
2026-09-09
For: 2026-09-09
View Original
Added on
September 09, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 9, 2026
(Exact name of registrant as specified in its charter)
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| of incorporation) | Identification No.) | |||||||
(Address of principal executive offices)
Registrant’s telephone number, including area code: (512 ) 346-2000
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933
(§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On September 9, 2026 , SailPoint, Inc. (the “Company”) announced its financial results for the fiscal quarter ended July 31, 2026 and posted the Company’s earnings release and related presentation for such quarter on its investor relations website. A copy of this earnings release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference into this Item 2.02.
The information furnished in this Item 2.02, including the earnings release incorporated into this Item 2.02, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. | Description | ||||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SAILPOINT, INC. | ||||||||||||||
Date: | By: | /s/ Brian Carolan | ||||||||||||
Name: | Brian Carolan | |||||||||||||
Title: | Chief Financial Officer | |||||||||||||
Exhibit 99.1
SailPoint Announces Fiscal Second Quarter 2027 Results
•Grew ARR 25% year-over-year to $1.231 billion
•Increased SaaS ARR 36% year-over-year to $847 million, with net new SaaS ARR up 34% year-over-year, accounting for 97% of net new ARR
•Delivered cash flows from operating activities of $45 million, and free cash flow of $37 million
AUSTIN, Texas--September 9, 2026—SailPoint, Inc. (Nasdaq: SAIL), a leader in enterprise identity security, today announced financial results for its fiscal second quarter ended July 31, 2026.
"Our strong Q2 results demonstrate the powerful compounding effect of our identity security platform and AI-driven innovations,” said Mark McClain, SailPoint CEO and Founder. “This momentum reinforces our confidence in our long-term trajectory, keeping us firmly on track to achieve our FY’29 targets, including at least $2.1 billion of ARR. By unifying human and agentic identity under one control plane, SailPoint is redefining security for the AI era.”
Fiscal Second Quarter 2027 Financial Highlights
•Annual Recurring Revenue (ARR): Total ARR was $1.231 billion, an increase of 25% year-over-year. SaaS ARR was $847 million, an increase of 36% year-over-year.
•Revenue: Total revenue was $309 million, an increase of 17% year-over-year. Subscription revenue was $295 million, an increase of 19% year-over-year.
•Operating Income (Loss): GAAP operating loss was $(59) million, or (19)% of revenue, in fiscal Q2 2027, compared to $(41) million, or (15)% of revenue, in fiscal Q2 2026. Adjusted income from operations was $63 million, or 20% of revenue, in fiscal Q2 2027, compared to $54 million, or 20% of revenue, in fiscal Q2 2026.
Recent Business Highlights
▪AI-driven ARR exceeded $70 million.
▪AI-driven solutions accounted for more than 30% of net new ARR in the quarter.
▪Existing customers who adopted an AI-driven solution increased their annual spend by more than 60% in the quarter.
▪More than two-thirds of migrations completed in the quarter included an AI-driven solution.
▪SaaS customer count grew 16% year-over-year, with ARR per SaaS customer growing 17% year-over-year to more than $400,000.
▪Remaining performance obligation (RPO) growth accelerated to 30% year-over-year to reach $1.9 billion, and current RPO (cRPO) grew 27% year-over-year to $931 million.
▪Unveiled the SailPoint Identity Security solution – the powerful combination of SailPoint Agentic Fabric and SailPoint Human Fabric to deliver a continuous, real-time loop to discover, govern, and protect today’s complex digital environments.
▪Announced the release of the SailPoint Cursor Enterprise connector, enabling organizations to securely govern both human software engineers and autonomous AI background agents from a single, unified control plane.
▪Announced SailPoint Agentic Acceleration, an AI-powered methodology to help enterprises move to our cloud solutions by automating the majority of the modernization process.
▪Completed the acquisition of Entro Security, which enhances SailPoint’s holistic identity security solution that bridges broad human accountability with the deep, granular security required for machine and agentic identities.
▪Launched Unified Platform Access, providing technology partners with frictionless, direct access to the SailPoint platform.
▪Introduced a new integration with the Claude Compliance API to provide enterprise-grade identity security for AI platforms.
▪KuppingerCole ranked SailPoint first in Product, Innovation, and Market Leadership in identity and access governance as of August 13, 2026.
Financial Outlook
For the third quarter and full year of fiscal 2027, SailPoint expects (in millions, except per share amounts and percentages):
| Q3’27 Guidance | FY’27 Guidance | |||||||
| Total ARR | $1,288 to $1,292 | $1,375 to $1,385 | ||||||
| Total ARR YoY growth % | 24% | 22% to 23% | ||||||
| Total revenue | $326 to $330 | $1,265 to $1,275 | ||||||
| Total revenue YoY growth % | 16% to 17% | 18% to 19% | ||||||
| Adjusted income from operations | $57.5 to $58.5 | $239 to $244 | ||||||
| Adjusted operating margin % | 17.4% to 17.9% | 18.7% to 19.3% | ||||||
| Adjusted earnings per share (Adjusted EPS) | $0.07 to $0.08 | $0.30 to $0.34 | ||||||
SailPoint also reiterates the following fiscal 2029 targets, which were discussed at SailPoint’s June 2026 Investor Day:
•At least $2.1 billion of ARR
•At least $800 million of AI-driven ARR
•At least 22% adjusted operating margin
•At least $400 million of free cash flow
These statements regarding SailPoint’s expectations of its financial outlook are forward-looking, and actual results may differ materially. Refer to “Forward-Looking Statements” below for information on the factors that could cause SailPoint’s actual results to differ materially from these forward-looking statements.
SailPoint has not reconciled its expectations as to adjusted income (loss) from operations, adjusted operating margin, adjusted EPS and free cash flow to their most directly comparable GAAP measures due to the high variability and difficulty in making accurate forecasts and projections of certain items that impact such GAAP measures. In particular, adjusted income (loss) from operations, adjusted operating margin, and adjusted EPS exclude stock-based compensation expense, which is affected by future hiring, turnover, and retention needs, as well as the future fair market value of our common stock, all of which are difficult to predict and subject to change. The actual amount of the excluded stock-based compensation expense will have a significant impact on SailPoint’s GAAP income (loss) from operations and GAAP net income (loss) per basic and diluted common share. SailPoint’s forward-looking adjusted income (loss) from operations, adjusted operating margin and adjusted EPS also exclude payroll taxes related to restricted stock units (RSUs), amortization of acquired intangibles as well as acquisition-related costs and severance of certain key executives, if applicable, all of which are also difficult to predict accurately. Similarly, SailPoint’s forward-looking cash flow from operating activities is difficult to accurately predict. Accordingly, reconciliations of our forward-looking adjusted income (loss) from operations, adjusted operating margin, adjusted EPS and free cash flow to their most directly comparable GAAP measures are not available without unreasonable effort.
Investor Conference Call and Webcast
SailPoint will host a conference call today at 8:30 a.m. Eastern Time to discuss the results and outlook. A live webcast of the conference call and a presentation regarding SailPoint’s fiscal second quarter 2027 financial results and outlook will be available on SailPoint’s website at https://investors.sailpoint.com.
An audio replay of the conference call will be available on the investor relations website for one year.
About SailPoint
At SailPoint, we believe enterprise security must start with identity at the foundation. Today’s enterprise runs on a diverse workforce of not just human but also digital identities—and securing them all is critical. Through the lens of identity, SailPoint empowers organizations to seamlessly manage and secure access to applications and data at speed and scale. Our unified, intelligent, and extensible platform delivers identity-first security, helping enterprises defend against dynamic threats while driving productivity and transformation. Trusted by many of the world’s most complex organizations, SailPoint secures the modern enterprise.
Non-GAAP Financial Measures
In addition to our financial information presented in accordance with GAAP, we use certain non-GAAP financial measures to clarify and enhance our understanding of past performance, including the following:
Adjusted income from operations, which we define as income (loss) from operations excluding equity-based compensation expense, payroll taxes related to awards that were accelerated upon the closing of our initial public offering (the IPO) and payroll taxes related to RSUs, amortization of acquired intangible assets which includes impairment charges, impairment of intangible assets, acquisition-related expenses (including fair value adjustments to acquisition-contingent consideration), benefit from amortization related to acquired contract acquisition costs, Thoma Bravo monitoring fees (which were annual service fees for consultation and advice related to corporate strategy, budgeting of future corporate investments, acquisition and divestiture strategies, and debt and equity financings pursuant to an advisory services agreement that was terminated upon the closing of the IPO), and restructuring expenses.
Adjusted operating margin, which we define as adjusted income from operations divided by total revenue.
Adjusted EPS (or non-GAAP net income (loss) available to common stockholders per diluted share), which we define as adjusted net income (loss) divided by the diluted weighted average shares outstanding, except that solely for the fiscal year ended January 31, 2026 (and all periods therein), we calculated adjusted EPS based on the number of diluted shares outstanding as of the end of such period rather than the diluted weighted average shares outstanding for such period. We believe that using such a denominator provides a more meaningful comparison with subsequent periods due to the IPO closing after the beginning of fiscal year 2026. We calculate adjusted net income (loss) as net income (loss) on a GAAP basis excluding equity-based compensation expense, payroll taxes related to awards that were accelerated upon the closing of the IPO (IPO-accelerated awards) and payroll taxes related to RSUs, amortization of acquired intangible assets which includes impairment charges, impairment of intangible assets, acquisition-related expenses (including fair value adjustments to acquisition-contingent consideration), Thoma Bravo monitoring fees, benefit from amortization related to acquired contract acquisition costs, and restructuring expenses, and adjusted for the income tax effects related to those adjustments. We currently apply a fixed projected tax rate of 24.5% when calculating or estimating adjusted net income for the fiscal year ending January 31, 2027 and all periods therein for consistency across interim reporting periods within such fiscal year. This rate may be adjusted during the year if significant events that have a material impact on the rate occur, such as significant changes in our geographic mix of revenue and expenses, tax law changes, and acquisitions.
Adjusted gross profit, which we define as gross profit excluding equity-based compensation expense, payroll taxes related to IPO-accelerated awards and payroll taxes related to RSUs, amortization of acquired intangible assets which includes impairment charges, impairment of intangible assets, acquisition-related expenses and restructuring expenses.
Adjusted gross profit margin, which we define as adjusted gross profit divided by total revenue.
Adjusted subscription gross profit, which we define as subscription gross profit excluding equity-based compensation expense, payroll taxes related to IPO-accelerated awards and payroll taxes related to RSUs, amortization of acquired intangible assets which includes impairment charges, impairment of intangible assets, acquisition-related expenses and restructuring expenses.
Adjusted subscription gross profit margin, which we define as adjusted subscription gross profit divided by subscription revenue.
Free cash flow, which we define as net cash provided by (used in) operating activities, less cash used for purchases of property and equipment, and capitalized software development costs. We use free cash flow as a measure of financial progress in our business, as it balances operating results, cash management, and capital efficiency. We believe information regarding free cash flow provides investors and others with an important perspective on the cash available to make strategic acquisitions and investments, to fund ongoing operations, and to fund other capital expenditures. Free cash flow can be volatile and is sensitive to many factors, including changes in working capital and timing of capital expenditures. Working capital at any specific point in time is subject to many variables including the discretionary timing of expense payments and fluctuations in foreign exchange rates.
Free cash flow margin, which we define as free cash flow divided by total revenue.
Our non-GAAP financial measures exclude items that do not reflect our ongoing, core operating or business performance, such as equity-based compensation, payroll taxes related to IPO-accelerated awards and payroll taxes related to RSUs, amortization of acquired intangible assets, and acquisition-related expenses (including fair value adjustments to acquisition-contingent consideration). We believe these adjustments enable management and investors to compare our underlying business performance from period to period and provide investors with additional means to evaluate cost and expense trends. We also believe these adjustments enhance comparability of our financial performance against those of other technology companies. Accordingly, our management believes the presentation of our non-GAAP financial measures provides useful information to investors regarding our financial condition and results of operations. In addition, SailPoint’s management uses adjusted income (loss) from operations for budgeting and planning purposes, including with respect to its corporate bonus plan.
Our non-GAAP financial measures are adjusted for the following factors, among others:
Equity-based compensation expense. We believe that the exclusion of equity-based compensation expense is appropriate because it eliminates the impact of equity-based compensation costs that are based upon valuation methodologies and assumptions that vary over time, and the amount of the expense can vary significantly due to factors that are unrelated to our core operating performance and that can be outside of our control. Although we exclude equity-based compensation expense from our non-GAAP measures, equity-based compensation has been, and will continue to be, an important part of our compensation strategy and a significant component of our expenses and may increase in future periods.
Payroll taxes related to IPO-accelerated awards and payroll taxes related to RSUs. We believe that the exclusion of payroll taxes related to IPO-accelerated awards is appropriate as the acceleration was a one-time, non-recurring event. We believe that the exclusion of payroll taxes related to RSUs is appropriate as they are dependent on SailPoint’s stock price and the vesting of such awards and therefore can vary significantly due to factors that are unrelated to our core operating performance and that can be outside of our control. Because the amount of such payroll taxes is highly variable due to factors outside of our control and is unrelated to our core operating performance, our management does not consider them when evaluating the performance of our business or making operating plans (for example, when considering the impact of equity award grants, we place a greater emphasis on overall stockholder dilution than the accounting charges associated with such grants). As with equity-based compensation expense, although we exclude payroll taxes related to RSUs from our non-GAAP measures, such payroll taxes are, and will continue to be, a component of our expenses and may increase in future periods. We note that, unlike equity-based compensation expense, payroll taxes are a cash expense.
Amortization of acquired intangible assets and impairment of intangible assets. We exclude amortization charges for our acquisition-related intangible assets and impairment of intangible assets for purposes of calculating certain non-GAAP measures to eliminate the impact of these non-cash charges and provide for a more meaningful comparison between operating results from period to period as intangible assets are valued at the time of acquisition and are amortized over the useful life, which can be several years after the acquisition.
Acquisition-related costs. We believe that the exclusion of acquisition-related expenses is appropriate as they represent items that management believes are not indicative of our ongoing operating performance. These expenses are primarily composed of legal, accounting, and professional fees incurred that are not capitalizable and that are included within general and administrative expenses. Acquisition-related expenses also include fair value adjustments to acquisition-contingent consideration, which are currently included within sales and marketing expenses.
Restructuring expenses. We believe that the exclusion of restructuring expenses, which typically consist of employee severance costs and other exit costs, is appropriate as these costs represent charges that are not indicative of our ongoing operating performance. In addition, our management does not consider these charges when evaluating the performance of our business or when making ongoing operating plans.
Amortization related to acquired contract acquisition costs. On August 16, 2022, our predecessor was acquired in an all-cash take-private transaction by Thoma Bravo (the Take-Private Transaction). In accordance with GAAP reporting requirements, we wrote off our contract acquisition costs at the time of the Take-Private Transaction. Therefore, GAAP commissions expenses related to contract acquisition costs after the Take-Private Transaction do not reflect the commissions expense that would have been reported if the contract acquisition costs had not been written off. Accordingly, we believe that presenting the approximate amount of acquisition-related commission expenses (so that the full amount of commission expenses is included) provides a more appropriate representation of commission expenses in a given period and, therefore, provides readers of our financial statements with a more consistent basis for comparison across accounting periods.
SailPoint’s non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry because they may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because they are not prepared in accordance with GAAP and exclude expenses that may have a material impact on our reported financial results. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. SailPoint urges you to review the reconciliations of our non-GAAP financial measures to the comparable GAAP financial measures included below and not to rely on any single financial measure to evaluate our business.
Definitions of Certain Key Business and Other Metrics
Annual recurring revenue (ARR). We define ARR as the annualized value of SaaS, maintenance, term subscription, and other subscription contracts as of the measurement date. To the extent that we are actively negotiating a renewal or new agreement with a customer after the expiration of a contract, we continue to include that contract’s annualized value in ARR until the customer notifies us that it is not renewing its contract. We calculate ARR by dividing the active contract value by the number of days of the contract and then multiplying by 365. ARR should be viewed independently of revenue as ARR is an operating metric and is not intended to be combined with or to replace revenue. ARR is not a forecast of future revenue, which can be impacted by ASC 606 allocations, and ARR does not consider other sources of revenue that are not recurring in nature. ARR does not have a standardized meaning and is not necessarily comparable to similarly titled measures presented by other companies.
SaaS annual recurring revenue (SaaS ARR). We define SaaS ARR as the annualized value of SaaS contracts as of the measurement date. To the extent that we are actively negotiating a renewal or new agreement with a customer after the expiration of a contract, we continue to include that contract’s annualized value in SaaS ARR until the customer notifies us that it is not renewing its contract. We calculate SaaS ARR by dividing the active SaaS contract value by the number of days of the contract and then multiplying by 365. SaaS ARR should be viewed independently of subscription revenue as SaaS ARR is an operating metric and is not intended to be combined with or to replace subscription revenue. SaaS ARR is not a forecast of future subscription revenue, which can be
impacted by ASC 606 allocations and renewal rates, and does not consider other sources of revenue that are not recurring in nature. SaaS ARR does not have a standardized meaning and is not necessarily comparable to similarly titled measures presented by other companies.
AI-driven annual recurring revenue (AI-driven ARR). We define AI-driven ARR (which was previously referred to as AI ARR at our June 2026 Investor Day) as total ARR from our AI solutions, including Agentic Suites, SailPoint Agentic Fabric (SAF), and Agentic add-on modules, as of the measurement date. To the extent that we are actively negotiating a renewal or new agreement with a customer after the expiration of a contract, we continue to include that contract’s annualized value in AI-driven ARR until the customer notifies us that it is not renewing its contract. We calculate AI-driven ARR by dividing the active AI solutions contract value by the number of days of the contract and then multiplying by 365. AI-driven ARR is an operating metric and is not intended to be combined with or to replace any revenue metrics. AI-driven ARR is not a forecast of future revenue from our AI solutions, which can be impacted by ASC 606 allocations and renewal rates, and does not consider other sources of revenue that are not recurring in nature. AI-driven ARR does not have a standardized meaning and is not necessarily comparable to similarly titled measures presented by other companies.
Net new annual recurring revenue (net new ARR). We define net new ARR as the change in ARR from the end of the prior quarter for purposes of assessing quarterly achievement, and the change in ARR from the prior year for purposes of assessing annual achievement.
Net new SaaS annual recurring revenue (net new SaaS ARR). We define net new SaaS ARR as the change in SaaS ARR from the end of the prior quarter for purposes of assessing quarterly achievement, and the change in SaaS ARR from the prior year for purposes of assessing annual achievement.
Subscription revenue. The majority of our revenue relates to subscription revenue which consists of (i) fees for access to, and related support for, the SaaS offerings, (ii) fees for term subscriptions, (iii) fees for ongoing maintenance and support of perpetual license solutions, and (iv) other subscription services such as cloud managed services, and certain professional services. Term subscriptions include the term licenses and ongoing maintenance and support. Maintenance and support agreements consist of fees for providing software updates on a when and if available basis and for providing technical support for software products for a specified term.
Subscription revenue, including support for term licenses, is recognized ratably over the term of the applicable agreement. Revenue related to term subscription performance obligations, excluding support for term subscriptions, is recognized upfront at the point in time when the customer has taken control of the software license.
Remaining performance obligation (RPO). Our contracts with customers include amounts allocated to performance obligations that will be satisfied at a later date. These remaining performance obligations represent contract value that has not yet been recognized as revenue. RPO includes both invoices that have been issued to customers but have not been recognized as revenue and amounts that will be invoiced and recognized as revenue in future periods.
Current remaining performance obligation (cRPO). Represents RPO that the Company expects to recognize as revenue over the next 12 months.
Explanatory Note Regarding Our Corporate Conversion
Prior to February 12, 2025, we were a Delaware limited partnership named SailPoint Parent, LP. On February 12, 2025, in connection with our IPO, SailPoint Parent, LP converted into a Delaware corporation pursuant to a statutory conversion (the Corporate Conversion) and changed its name to SailPoint, Inc. References to “SailPoint,” “we,” and “our” (i) for periods prior to the Corporate Conversion are to SailPoint Parent, LP and, where appropriate, its consolidated subsidiaries and (ii) for periods after the Corporate Conversion are to SailPoint, Inc. and, where appropriate, its consolidated subsidiaries.
Forward-Looking Statements
This press release and statements made during the above referenced conference call may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements
regarding our strategy, future operations, financial position, prospects, plans and objectives of management, growth rate and our expectations regarding future revenue, operating income or loss, or earnings or loss per share. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “will be,” “will likely result,” “should,” “expects,” “plans,” “anticipates,” “could,” “would,” “foresees,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “outlook,” or “continue” or the negative of these words or other similar terms or expressions. These forward-looking statements are not guarantees of future performance, but are based on management’s current expectations, assumptions, and beliefs concerning future developments and their potential effect on us, which are inherently subject to uncertainties, risks, and changes in circumstances that are difficult to predict. Our expectations expressed or implied in these forward-looking statements may not turn out to be correct. Our results could be materially different from our expectations because of various risks.
Important factors, some of which are beyond our control, that could cause actual results to differ materially from our historical results or those expressed or implied by these forward-looking statements include the following: our ability to sustain historical growth rates; our ability to attract and retain customers; our ability to deepen our relationships with existing customers; the growth in the market for identity security solutions; our ability to maintain successful relationships with each of our partners; the length and unpredictable nature of our sales cycle; our ability to compete successfully against current and future competitors; our ability to successfully integrate acquired businesses and technologies and achieve the expected benefits of such acquisitions; the increasing complexity of our operations; our ability to maintain and enhance our brand or reputation as an industry leader and innovator; unfavorable conditions in our industry or the global economy; our estimated market opportunity and forecasts of our market and market growth may prove to be inaccurate; our ability to hire, train, and motivate our personnel; our ability to maintain our corporate culture; our ability to successfully introduce, use, and integrate artificial intelligence (AI) with our solutions; breaches in our security, cyber attacks, or other cyber risks; interruptions, outages, or other disruptions affecting the delivery of our SaaS solution or any of the third-party cloud-based systems that we use in our operations; our ability to adapt and respond to rapidly changing technology, industry standards, regulations, or customer needs, requirements, or preferences; real or perceived errors, failures, or disruptions in our platform or solutions; the ability of our platform and solutions to effectively interoperate with our customers’ existing or future IT infrastructures; and our ability to comply with our privacy policy or related legal or regulatory requirements. More information on these risks and other potential factors that could affect our financial results is included in our filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our Annual Report on Form 10-K for the year ended January 31, 2026 and subsequent Quarterly Reports on Form 10-Q and other filings. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release or made during the above referenced conference call. We cannot assure you that the results, events, and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.
Any forward-looking statement made in this press release or during the above referenced conference call speaks only as of the date as of which such statement is made, and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.
Investor Relations Contact
Scott Schmitz, SVP IR
Media Relations Contact
Shannon Paulk, Sr. Manager, Corporate Communications
SAILPOINT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Subscription | $ | 295,205 | $ | 247,937 | $ | 561,026 | $ | 463,260 | |||||||||||||||
| Services and other | 13,608 | 16,422 | 27,929 | 31,567 | |||||||||||||||||||
| Total revenue | 308,813 | 264,359 | 588,955 | 494,827 | |||||||||||||||||||
| Cost of revenue | |||||||||||||||||||||||
| Subscription | 84,103 | 70,443 | 164,323 | 145,934 | |||||||||||||||||||
| Services and other | 19,325 | 16,110 | 38,135 | 43,432 | |||||||||||||||||||
| Total cost of revenue | 103,428 | 86,553 | 202,458 | 189,366 | |||||||||||||||||||
| Gross profit | 205,385 | 177,806 | 386,497 | 305,461 | |||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Research and development | 62,185 | 48,111 | 123,871 | 115,381 | |||||||||||||||||||
| Sales and marketing | 155,881 | 131,289 | 310,157 | 295,819 | |||||||||||||||||||
| General and administrative | 46,277 | 39,204 | 91,253 | 120,024 | |||||||||||||||||||
| Total operating expenses | 264,343 | 218,604 | 525,281 | 531,224 | |||||||||||||||||||
| Loss from operations | (58,958) | (40,798) | (138,784) | (225,763) | |||||||||||||||||||
| Other income (expense), net | |||||||||||||||||||||||
| Interest income | 3,390 | 2,336 | 6,439 | 5,562 | |||||||||||||||||||
| Interest expense | (264) | (1,693) | (529) | (24,082) | |||||||||||||||||||
| Other income (expense), net | (1,301) | (1,710) | (4,307) | (1,901) | |||||||||||||||||||
| Total other income (expense), net | 1,825 | (1,067) | 1,603 | (20,421) | |||||||||||||||||||
| Loss before income taxes | (57,133) | (41,865) | (137,181) | (246,184) | |||||||||||||||||||
| Income tax benefit | 6,773 | 31,313 | 12,147 | 48,320 | |||||||||||||||||||
| Net loss | $ | (50,360) | $ | (10,552) | $ | (125,034) | $ | (197,864) | |||||||||||||||
| Class A yield | — | — | — | (23,786) | |||||||||||||||||||
| Net loss attributable to common stockholders | (50,360) | (10,552) | (125,034) | (221,650) | |||||||||||||||||||
Net loss per share attributable to common stockholders, basic and diluted (1) | $ | (0.09) | $ | (0.02) | $ | (0.22) | $ | (0.42) | |||||||||||||||
Weighted average common shares outstanding, basic and diluted (1) | 568,113 | 555,757 | 566,360 | 528,355 | |||||||||||||||||||
________
(1) Amounts for the period during February 2025 prior to the Corporate Conversion have been retrospectively adjusted to give effect to the Corporate Conversion. These amounts do not consider the shares of common stock sold in the Company's IPO or the Class A Units considered preferred shares that were converted into common stock due to the Corporate Conversion.
SAILPOINT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)
| July 31, 2026 | January 31, 2026 | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 309,850 | $ | 358,144 | |||||||
| Accounts receivable, net of allowance | 275,764 | 335,001 | |||||||||
| Contract acquisition costs | 62,683 | 47,697 | |||||||||
| Contract assets, net of allowance | 73,802 | 70,565 | |||||||||
| Prepayments and other current assets | 54,595 | 39,288 | |||||||||
| Total current assets | 776,694 | 850,695 | |||||||||
| Property and equipment, net | 46,789 | 35,178 | |||||||||
| Contract acquisition costs, non-current | 140,393 | 117,833 | |||||||||
| Contract assets, non-current, net of allowance | 45,707 | 41,249 | |||||||||
| Other non-current assets | 27,182 | 23,621 | |||||||||
| Goodwill | 5,250,334 | 5,151,668 | |||||||||
| Intangible assets, net | 1,296,723 | 1,377,317 | |||||||||
| Total assets | $ | 7,583,822 | $ | 7,597,561 | |||||||
Liabilities and stockholders' equity | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 13,415 | $ | 5,824 | |||||||
| Accrued expenses and other liabilities | 103,876 | 121,464 | |||||||||
| Deferred revenue | 515,319 | 516,007 | |||||||||
| Total current liabilities | 632,610 | 643,295 | |||||||||
| Deferred tax liabilities, non-current | 34,503 | 56,112 | |||||||||
| Other long-term liabilities | 25,485 | 12,732 | |||||||||
| Deferred revenue, non-current | 29,615 | 39,191 | |||||||||
| Total liabilities | 722,213 | 751,330 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders' equity | |||||||||||
| Preferred stock | — | — | |||||||||
| Common stock | 57 | 56 | |||||||||
| Additional paid in capital | 7,237,385 | 7,096,974 | |||||||||
| Accumulated deficit | (375,833) | (250,799) | |||||||||
Total stockholders' equity | 6,861,609 | 6,846,231 | |||||||||
Total liabilities and stockholders' equity | $ | 7,583,822 | $ | 7,597,561 | |||||||
SAILPOINT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Cash flows from operating activities | |||||||||||||||||||||||
| Net loss | $ | (50,360) | $ | (10,552) | $ | (125,034) | $ | (197,864) | |||||||||||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||||||||||
| Depreciation and amortization expense | 53,631 | 52,466 | 106,736 | 104,531 | |||||||||||||||||||
| Amortization and write-off of debt issuance costs | 136 | 1,479 | 272 | 17,120 | |||||||||||||||||||
| Amortization of contract acquisition costs | 15,997 | 9,317 | 28,598 | 17,484 | |||||||||||||||||||
Adjustments to contingent consideration | — | 1,609 | — | 1,609 | |||||||||||||||||||
| Provision for credit losses | 1,374 | 784 | 2,421 | 4,346 | |||||||||||||||||||
| Equity-based compensation expense, net of amounts capitalized | 68,321 | 48,349 | 137,426 | 154,061 | |||||||||||||||||||
| Deferred taxes | (12,682) | (33,583) | (22,448) | (58,908) | |||||||||||||||||||
| Other | — | — | 57 | — | |||||||||||||||||||
| Net changes in operating assets and liabilities, net of acquisitions | |||||||||||||||||||||||
| Accounts receivable | (20,949) | (13,761) | 57,467 | 46,275 | |||||||||||||||||||
| Contract acquisition costs | (47,627) | (17,157) | (66,144) | (26,623) | |||||||||||||||||||
| Contract assets | (4,277) | (9,862) | (7,942) | (13,679) | |||||||||||||||||||
| Prepayments and other current assets | (2,345) | (6,251) | (15,310) | (21,241) | |||||||||||||||||||
| Other non-current assets | (446) | 386 | (382) | 468 | |||||||||||||||||||
| Operating leases, net | (36) | 59 | (67) | 314 | |||||||||||||||||||
| Accounts payable | (129) | (340) | 7,591 | (7) | |||||||||||||||||||
| Accrued expenses and other liabilities | 36,308 | 15,715 | (8,192) | (74,911) | |||||||||||||||||||
| Deferred revenue | 8,047 | 11,287 | (11,845) | 163 | |||||||||||||||||||
| Net cash provided by (used in) operating activities | 44,963 | 49,945 | 83,204 | (46,862) | |||||||||||||||||||
| Cash flows from investing activities | |||||||||||||||||||||||
| Purchase of property and equipment | (1,934) | (962) | (2,903) | (3,153) | |||||||||||||||||||
| Capitalized software development costs | (5,620) | (3,025) | (10,372) | (4,731) | |||||||||||||||||||
| Business acquisitions, net of cash acquired | (118,225) | — | (118,225) | — | |||||||||||||||||||
| Net cash used in investing activities | (125,779) | (3,987) | (131,500) | (7,884) | |||||||||||||||||||
| Cash flows from financing activities | |||||||||||||||||||||||
| Proceeds from IPO, net of underwriting discounts and commissions | — | — | — | 1,259,681 | |||||||||||||||||||
| Repayment of Term Loans | — | — | — | (1,040,000) | |||||||||||||||||||
| Payment of debt issuance costs | — | (2,716) | — | (2,716) | |||||||||||||||||||
| Payments of deferred offering costs, net | — | (261) | — | (8,618) | |||||||||||||||||||
Payments related to holdback and contingent consideration | — | — | — | (675) | |||||||||||||||||||
| Net cash provided by financing activities | — | (2,977) | — | 207,672 | |||||||||||||||||||
| Net change in cash, cash equivalents and restricted cash | (80,816) | 42,981 | (48,296) | 152,926 | |||||||||||||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 393,906 | 234,335 | 361,386 | 124,390 | |||||||||||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 313,090 | $ | 277,316 | $ | 313,090 | $ | 277,316 | |||||||||||||||
| Reconciliation of cash, cash equivalents and restricted cash from the condensed consolidated balance sheets to the condensed consolidated statements of cash flows: | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 309,850 | $ | 271,052 | $ | 309,850 | $ | 271,052 | |||||||||||||||
| Restricted cash within prepayments and other current assets | 3,240 | 6,264 | 3,240 | 6,264 | |||||||||||||||||||
| Total cash, cash equivalents, and restricted cash in the consolidated statements of cash flows | $ | 313,090 | $ | 277,316 | $ | 313,090 | $ | 277,316 | |||||||||||||||
SAILPOINT, INC.
SUPPLEMENTAL SCHEDULES
(Amounts in thousands, except percentages)
(Unaudited)
| Three Months Ended July 31, | |||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
| Revenue | |||||||||||||||||
| Subscription | |||||||||||||||||
| SaaS | $ | 193,872 | $ | 144,758 | 34 | % | |||||||||||
| Maintenance and support | 35,468 | 38,471 | (8) | % | |||||||||||||
| Term subscriptions | 56,196 | 58,120 | (3) | % | |||||||||||||
| Other subscription services | 9,669 | 6,588 | 47 | % | |||||||||||||
| Total subscription | 295,205 | 247,937 | 19 | % | |||||||||||||
| Services and other | 13,608 | 16,422 | (17) | % | |||||||||||||
| Total revenue | $ | 308,813 | $ | 264,359 | 17 | % | |||||||||||
| Six Months Ended July 31, | |||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
| Revenue | |||||||||||||||||
| Subscription | |||||||||||||||||
| SaaS | $ | 372,351 | $ | 276,573 | 35 | % | |||||||||||
Maintenance and support | 70,031 | 75,860 | (8) | % | |||||||||||||
| Term subscriptions | 100,112 | 98,160 | 2 | % | |||||||||||||
| Other subscription services | 18,532 | 12,667 | 46 | % | |||||||||||||
| Total subscription | 561,026 | 463,260 | 21 | % | |||||||||||||
| Services and other | 27,929 | 31,567 | (12) | % | |||||||||||||
| Total revenue | $ | 588,955 | $ | 494,827 | 19 | % | |||||||||||
SAILPOINT, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except percentages and per share amounts)
(Unaudited)
| Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| GAAP gross profit | $ | 205,385 | $ | 177,806 | $ | 386,497 | $ | 305,461 | |||||||||||||||
| GAAP gross profit margin | 66.5 | % | 67.3 | % | 65.6 | % | 61.7 | % | |||||||||||||||
| Equity-based compensation expense | 5,703 | 2,612 | 12,232 | 24,204 | |||||||||||||||||||
Payroll taxes for IPO-accelerated awards and RSUs | 231 | — | 475 | 634 | |||||||||||||||||||
| Amortization of acquired intangible assets | 27,013 | 26,322 | 53,845 | 52,382 | |||||||||||||||||||
| Restructuring expense | 758 | — | 758 | — | |||||||||||||||||||
| Adjusted gross profit | $ | 239,090 | $ | 206,740 | $ | 453,807 | $ | 382,681 | |||||||||||||||
| Adjusted gross profit margin | 77.4 | % | 78.2 | % | 77.1 | % | 77.3 | % | |||||||||||||||
| Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| GAAP subscription gross profit | $ | 211,102 | $ | 177,494 | $ | 396,703 | $ | 317,326 | |||||||||||||||
| GAAP subscription gross profit margin | 71.5 | % | 71.6 | % | 70.7 | % | 68.5 | % | |||||||||||||||
| Equity-based compensation expense | 4,115 | 1,931 | 8,726 | 13,195 | |||||||||||||||||||
| Payroll taxes for IPO-accelerated awards and RSUs | 146 | — | 282 | 332 | |||||||||||||||||||
| Amortization of acquired intangible assets | 27,013 | 26,322 | 53,845 | 52,380 | |||||||||||||||||||
| Restructuring expense | 520 | — | 520 | — | |||||||||||||||||||
| Adjusted subscription gross profit | $ | 242,896 | $ | 205,747 | $ | 460,076 | $ | 383,233 | |||||||||||||||
| Adjusted subscription gross profit margin | 82.3 | % | 83.0 | % | 82.0 | % | 82.7 | % | |||||||||||||||
| Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| GAAP loss from operations | $ | (58,958) | $ | (40,798) | $ | (138,784) | $ | (225,763) | |||||||||||||||
| GAAP loss from operations margin | (19.1) | % | (15.4) | % | (23.6) | % | (45.6) | % | |||||||||||||||
| Equity-based compensation expense | 68,321 | 48,418 | 137,442 | 208,877 | |||||||||||||||||||
| Payroll taxes for IPO-accelerated awards and RSUs | 1,634 | — | 3,331 | 3,399 | |||||||||||||||||||
| Amortization of acquired intangible assets | 51,028 | 50,214 | 101,794 | 100,125 | |||||||||||||||||||
| Restructuring expense | 2,516 | — | 2,516 | — | |||||||||||||||||||
| Amortization of acquired contract acquisition costs | (3,461) | (5,444) | (7,375) | (11,208) | |||||||||||||||||||
Acquisition-related expenses and Thoma Bravo monitoring fees | 1,707 | 1,609 | 1,707 | 2,192 | |||||||||||||||||||
Adjusted income from operations | $ | 62,787 | $ | 53,999 | $ | 100,631 | $ | 77,622 | |||||||||||||||
| Adjusted operating margin | 20.3 | % | 20.4 | % | 17.1 | % | 15.7 | % | |||||||||||||||
| Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| GAAP research and development expense | $ | 62,185 | $ | 48,111 | $ | 123,871 | $ | 115,381 | |||||||||||||||
| Equity-based compensation expense | (15,822) | (7,512) | (31,297) | (35,351) | |||||||||||||||||||
| Payroll taxes for IPO-accelerated awards and RSUs | (451) | — | (958) | (686) | |||||||||||||||||||
| Amortization of acquired intangible assets | (137) | (95) | (274) | (190) | |||||||||||||||||||
| Restructuring expense | (768) | — | (768) | — | |||||||||||||||||||
| Adjusted research and development expense | $ | 45,007 | $ | 40,504 | $ | 90,574 | $ | 79,154 | |||||||||||||||
| Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| GAAP sales and marketing expense | $ | 155,881 | $ | 131,289 | $ | 310,157 | $ | 295,819 | |||||||||||||||
| Equity-based compensation expense | (22,944) | (18,203) | (45,413) | (71,706) | |||||||||||||||||||
| Payroll taxes for IPO-accelerated awards and RSUs | (609) | — | (1,237) | (1,684) | |||||||||||||||||||
| Amortization of acquired intangible assets | (23,878) | (23,797) | (47,675) | (47,553) | |||||||||||||||||||
| Restructuring expense | (597) | — | (597) | — | |||||||||||||||||||
| Amortization of acquired contract acquisition costs | 3,461 | 5,444 | 7,375 | 11,208 | |||||||||||||||||||
| Acquisition-related expenses | — | (1,609) | — | (1,609) | |||||||||||||||||||
| Adjusted sales and marketing expense | $ | 111,314 | $ | 93,124 | $ | 222,610 | $ | 184,475 | |||||||||||||||
| Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| GAAP general and administrative expense | $ | 46,277 | $ | 39,204 | $ | 91,253 | $ | 120,024 | |||||||||||||||
| Equity-based compensation expense | (23,852) | (20,091) | (48,500) | (77,616) | |||||||||||||||||||
| Payroll taxes for IPO-accelerated awards and RSUs | (343) | — | (661) | (394) | |||||||||||||||||||
| Restructuring expense | (393) | — | (393) | — | |||||||||||||||||||
| Acquisition-related expenses and Thoma Bravo monitoring fees | (1,707) | — | (1,707) | (583) | |||||||||||||||||||
| Adjusted general and administrative expense | $ | 19,982 | $ | 19,113 | $ | 39,992 | $ | 41,431 | |||||||||||||||
| Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025(1) | ||||||||||||||||||||
GAAP net cash provided by (used in) operating activities | $ | 44,963 | $ | 49,945 | $ | 83,204 | $ | (46,862) | |||||||||||||||
Less: Purchase of property and equipment | (1,934) | (962) | (2,903) | (3,153) | |||||||||||||||||||
Less: Capitalized software development costs | (5,620) | (3,025) | (10,372) | (4,731) | |||||||||||||||||||
Free cash flow | $ | 37,409 | $ | 45,958 | $ | 69,929 | $ | (54,746) | |||||||||||||||
GAAP net cash provided by (used in) operating activities margin | 14.6 | % | 18.9 | % | 14.1 | % | (9.5) | % | |||||||||||||||
Free cash flow margin | 12.1 | % | 17.4 | % | 11.9 | % | (11.1) | % | |||||||||||||||
(1) Free cash flow for the six months ended July 31, 2025 includes $78 million of cash paid to settle equity-related awards, cash awards and their associated payroll taxes upon the closing of our IPO, $37 million in cash paid for interest expense, and $9 million of cash paid for fees under our advisory services agreement with Thoma Bravo, which was terminated upon the closing of our IPO.
| Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| GAAP net loss | $ | (50,360) | $ | (10,552) | $ | (125,034) | $ | (197,864) | |||||||||||||||
| Equity-based compensation expense | 68,321 | 48,418 | 137,442 | 208,877 | |||||||||||||||||||
| Payroll taxes for IPO-accelerated awards and RSUs | 1,634 | — | 3,331 | 3,399 | |||||||||||||||||||
| Amortization of acquired intangible assets | 51,028 | 50,214 | 101,794 | 100,125 | |||||||||||||||||||
| Restructuring expense | 2,516 | — | 2,516 | — | |||||||||||||||||||
| Amortization of acquired contract acquisition costs | (3,461) | (5,444) | (7,375) | (11,208) | |||||||||||||||||||
| Acquisition-related expenses and Thoma Bravo monitoring fees | 1,707 | 1,609 | 1,707 | 2,192 | |||||||||||||||||||
Tax effect of adjustments | (22,603) | (44,281) | (37,194) | (62,334) | |||||||||||||||||||
| Adjusted net income | $ | 48,782 | $ | 39,964 | $ | 77,187 | $ | 43,187 | |||||||||||||||
GAAP net loss per share, basic and diluted (1) | $ | (0.09) | $ | (0.02) | $ | (0.22) | $ | (0.42) | |||||||||||||||
| Adjusted EPS, diluted | $ | 0.09 | $ | 0.07 | $ | 0.14 | $ | 0.08 | |||||||||||||||
| Weighted average shares used in computing GAAP net loss per share, basic and diluted | 568,113 | 555,757 | 566,360 | 528,355 | |||||||||||||||||||
| Shares used in computing adjusted EPS, diluted | 569,247 | 557,878 | 567,014 | 556,712 | |||||||||||||||||||
_________
(1) Includes the impact of the Class A yield for the six months ended July 31, 2025.