# SailPoint (SAIL) Q2 2026 Financial Results Summary
On September 9, 2025, SailPoint, Inc. (Nasdaq: SAIL) announced its financial results for the fiscal second quarter ended July 31, 2025. The report highlighted strong performance with metrics exceeding previous guidance.
## Fiscal 2026 Q2 Financial Highlights
– **Annual Recurring Revenue (ARR)**
– Total ARR reached **$982 million**, up **28%** year-over-year.
– SaaS ARR stood at **$623 million**, increasing **37%** year-over-year.
– **Revenue**
– Total revenue for the quarter was **$264 million**, a **33%** increase compared to the same quarter last year.
– Subscription revenue totaled **$248 million**, reflecting a **36%** year-over-year growth.
– **Operating Income (Loss)**
– GAAP operating loss was **$(41) million**, or **(15)%** of revenue, compared to a loss of **$(66) million**, or **(33)%** of revenue, in fiscal Q2 2025.
– Adjusted income from operations was **$54 million**, or **20%** of revenue, compared to **$21 million**, or **11%** of revenue, in fiscal Q2 2025.
– **Cash Flow**
– Cash flows from operating activities amounted to **$50 million**.
– Free cash flow was reported at **$46 million**.
## Financial Outlook
For Q3 and the full year of fiscal 2026, management provided guidance as follows (in millions):
– **Total ARR**
– Q3’26: Estimated between **$1,027 and $1,031**.
– FY’26: Expected between **$1,105 and $1,115**.
– **Total Revenue**
– Q3’26: Projected between **$269 and $271**.
– FY’26: Guided between **$1,052 and $1,058**.
– **Adjusted Income from Operations**
– Q3’26: Estimated between **$42.5 and $43.5**.
– FY’26: Expected between **$177 and $181**.
– **Adjusted Operating Margin**
– Q3’26: Projected between **15.7% and 16.2%**.
– FY’26: Guided between **16.7% and 17.2%**.
– **Adjusted Earnings Per Share (EPS)**
– Q3’26: Estimated between **$0.05 and $0.06**.
– FY’26: Expected between **$0.20 and $0.22**.
## Key Performance Metrics
### Year-over-Year Changes
– **ARR Growth**:
– Total ARR increased by **28%** YoY.
– SaaS ARR grew by **37%** YoY.
– **Revenue Changes**:
– Total revenue saw a **33%** growth YoY.
– Subscription revenue rose by **36%** YoY.
– **Operating Loss Improvement**:
– Operating loss as a percentage of revenue improved from **(33)%** in Q2 2025 to **(15)%** in Q2 2026.
– **Adjusted Operating Income**:
– Increased from **11%** to **20%** of revenue YoY.
### Cash Flow Metrics
– **Free Cash Flow** grew significantly, indicating improved cash management and operational efficiency.
## Dividend and Share Repurchase
– SailPoint did not declare a quarterly dividend during this period.
– There was no mention of any share repurchase activities.
## Additional Information
– SailPoint continues to focus on enhancing its enterprise identity security solutions, responding to increased demand in the ongoing digital transformation environment, particularly underscored by the relevance of artificial intelligence in security measures.
The company plans to discuss further details of this report during its conference call, emphasizing its strategic outlook for continued growth.
### SAILPOINT, INC.
#### CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share and per unit amounts)
| Three Months Ended July 31, | Six Months Ended July 31, | |||
|---|---|---|---|---|
| Revenue | 2025 | 2024 | 2025 | 2024 |
| Subscription | $247,937 | $181,811 | $463,260 | $351,903 |
| Perpetual licenses | 430 | 22 | 435 | 91 |
| Services and other | 15,992 | 16,742 | 31,132 | 34,237 |
| Total revenue | 264,359 | 198,575 | 494,827 | 386,231 |
| Cost of revenue | ||||
| Subscription | 70,443 | 58,488 | 145,934 | 113,608 |
| Perpetual licenses | — | 46 | 3 | 106 |
| Services and other | 16,110 | 16,728 | 43,429 | 33,714 |
| Total cost of revenue | 86,553 | 75,262 | 189,366 | 147,428 |
| Gross profit | 177,806 | 123,313 | 305,461 | 238,803 |
| Operating expenses | ||||
| Research and development | 48,111 | 43,108 | 115,381 | 85,025 |
| Sales and marketing | 131,289 | 119,565 | 295,819 | 234,452 |
| General and administrative | 39,204 | 26,470 | 120,024 | 53,349 |
| Total operating expenses | 218,604 | 189,143 | 531,224 | 372,826 |
| Loss from operations | -40,798 | -65,830 | -225,763 | -134,023 |
| Other income (expense), net | ||||
| Interest income | 2,336 | 1,078 | 5,562 | 3,053 |
| Interest expense | -1,693 | -47,317 | -24,082 | -93,556 |
| Other income (expense), net | -1,710 | -1,148 | -1,901 | -2,338 |
| Total other income (expense), net | -1,067 | -47,387 | -20,421 | -92,841 |
| Loss before income taxes | -41,865 | -113,217 | -246,184 | -226,864 |
| Income tax benefit (expense) | 31,313 | 26,087 | 48,320 | 50,558 |
| Net loss | $-10,552 | $-87,130 | $-197,864 | $-176,306 |
| Class A yield | — | -158,710 | -23,786 | -310,346 |
| Net loss attributable to common | -10,552 | -245,840 | -221,650 | -486,652 |
| stockholders and Class B | ||||
| unitholders | ||||
| Net loss per share attributable | ||||
| to common stockholders and Class | $-0.02 | $-2.97 | $-0.42 | $-5.89 |
| B unitholders, basic and | ||||
| diluted(1) | ||||
| Weighted average common shares | 555,757 | 82,703 | 528,355 | 82,564 |
| and Class B Units | ||||
| outstanding, basic and | ||||
| diluted(1) | ||||
| ________ | ||||
| (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. The Company did not retrospectively adjust for the effect of the Corporate Conversion for periods prior to fiscal 2026. |
### SAILPOINT, INC.
#### CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share, per share and unit amounts)
| July 31, 2025 | January 31, 2025 | |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $271,052 | $121,293 |
| Accounts receivable, net of allowance | 203,462 | 254,050 |
| Contract acquisition costs | 37,942 | 32,834 |
| Contract assets, net of allowance | 58,625 | 58,335 |
| Prepayments and other current assets | 55,519 | 45,870 |
| Total current assets | 626,600 | 512,382 |
| Property and equipment, net | 27,147 | 22,879 |
| Contract acquisition costs, non-current | 98,301 | 94,270 |
| Contract assets, non-current, net of | ||
| allowance | 47,144 | 33,788 |
| Other non-current assets | 34,484 | 36,206 |
| Goodwill | 5,151,668 | 5,151,668 |
| Intangible assets, net | 1,460,597 | 1,560,723 |
| Total assets | $7,445,941 | $7,411,916 |
| Liabilities, redeemable convertible | ||
| units, and stockholders’ equity / | ||
| partners’ deficit | ||
| Current liabilities | ||
| Accounts payable | $3,508 | $3,515 |
| Accrued expenses and other liabilities | 83,769 | 158,135 |
| Deferred revenue | 417,188 | 413,043 |
| Total current liabilities | 504,465 | 574,693 |
| Deferred tax liabilities, non-current | 77,513 | 136,528 |
| Other long-term liabilities | 15,400 | 32,128 |
| Deferred revenue, non-current | 32,417 | 36,399 |
| Long-term debt, net | — | 1,024,467 |
| Total liabilities | 629,795 | 1,804,215 |
| Commitments and contingencies | ||
| Redeemable convertible units, no par | ||
| value, unlimited units authorized, | ||
| 499,052,847 units issued and outstanding | — | 11,196,141 |
| as of January 31, 2025; aggregate | ||
| liquidation preference of $8,100,352 as | ||
| of January 31, 2025 | ||
| Stockholders’ equity / partners’ deficit | ||
| Preferred stock, par value of $0.0001 | ||
| per share, 50,000,000 shares authorized | — | — |
| and no shares issued or outstanding | ||
| as of July 31, 2025 | ||
| Common stock, par value of $0.0001 per | ||
| share; 1,750,000,000 shares authorized | ||
| as of July 31, 2025; 556,604,053 shares | 56 | — |
| issued and outstanding as of July 31, | ||
| 2025 | ||
| Additional paid in capital | 6,994,699 | — |
| Accumulated deficit | -178,609 | -5,588,440 |
| Total stockholders’ equity / partners’ | 6,816,146 | -5,588,440 |
| deficit | ||
| Total liabilities, redeemable | ||
| convertible units, and stockholders’ | ||
| equity / partners’ deficit | $7,445,941 | $7,411,916 |
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