EX-99.1 2 sailpointinc-20251031x991x.htm EX-99.1 Document

Exhibit 99.1

SailPoint Announces Fiscal Third Quarter 2026 Results
•Grew ARR 28% year-over-year to $1,040 million
•Increased SaaS ARR 38% year-over-year to $669 million
•Delivered cash flows from operating activities of $54 million, and free cash flow of $49 million
AUSTIN, Texas--December 9, 2025—SailPoint, Inc. (Nasdaq: SAIL), a leader in enterprise identity security, today announced financial results for its fiscal third quarter ended October 31, 2025.

"Our fiscal third quarter marked a significant milestone for SailPoint as we surpassed $1 billion of ARR. Our performance underscores the strength of SailPoint’s strategy and the durability of our business. Our platform brings together identity, data, and security in real-time — and that advantage becomes even more critical as AI agents enter the enterprise. In a market defined by consolidation and bundled point solutions, we remain one of the only independent, enterprise-scale identity platforms — a key reason customers trust us as the essential fabric that provides identity intelligence across their security ecosystem,” said Mark McClain, SailPoint CEO and Founder. “We believe our strong pace of innovation, consistent execution, and sustained growth positions us well for the future, and puts us among a select group of the industry’s high-performing cybersecurity companies.”
Fiscal Third Quarter 2026 Financial Highlights
•Annual Recurring Revenue (ARR): Total ARR was $1,040 million, an increase of 28% year-over-year. SaaS ARR was $669 million, an increase of 38% year-over-year.
•Revenue: Total revenue was $282 million, an increase of 20% year-over-year. Subscription revenue was $266 million, an increase of 22% year-over-year.
•Operating Income (Loss): GAAP operating loss was $(42) million, or (15)% of revenue, compared to $(24) million, or (10)% of revenue, in fiscal Q3 2025. Adjusted income from operations was $56 million, or 20% of revenue, compared to $47 million, or 20% of revenue, in fiscal Q3 2025.


Financial Outlook
For the fourth quarter and full year of fiscal 2026, SailPoint expects (in millions, except per share amounts and percentages):
Q4’26 GuidanceFY’26 GuidancePrior FY’26 Guidance
Total ARR$1,120 to $1,124$1,120 to $1,124$1,105 to $1,115
Total ARR YoY growth %28%28%26% to 27%
Total revenue$290 to $294$1,067 to $1,071$1,052 to $1,058
Total revenue YoY growth %21% to 22%24%22% to 23%
Adjusted income from operations$58.5 to $59.5$191.9 to $192.9$177 to $181
Adjusted operating margin %19.9% to 20.5%17.9% to 18.1%16.7% to 17.2%
Adjusted earnings per share (Adjusted EPS)$0.08 to $0.09$0.22 to $0.23$0.20 to $0.22


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.
All of SailPoint’s forward-looking non-GAAP financial measures exclude estimates for stock-based compensation expense, payroll taxes related to restricted stock units (RSUs), and amortization of acquired intangibles as well as acquisition-related costs and severance of certain key executives, if applicable. SailPoint has not reconciled its expectations as to adjusted income (loss) from operations, adjusted operating margin, and adjusted EPS 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 these non-GAAP measures, particularly stock-based compensation expense. Stock-based compensation expense 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. Accordingly, reconciliations of our forward-looking adjusted income (loss) from operations, adjusted operating margin, and adjusted EPS 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 third quarter 2026 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, all of which were issued after the closing of the IPO, 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 ending January 31, 2026 (and all periods therein), we calculate 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 will provide a more meaningful comparison with future 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, all of which were issued after the closing of the IPO, 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 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, 2026 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.

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). Accordingly, we believe this adjustment in arriving at our non-GAAP measures provides investors with a better understanding of the performance of our core business in a manner that is consistent with management’s view of the business. As with equity-based compensation expense, although we exclude payroll taxes related to post-IPO 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.
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. 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. 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.
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.
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; 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, 2025 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
ir@sailpoint.com

Media Relations Contact
Samantha Person, Senior Manager, Corporate Communications
Samantha.person@sailpoint.com


SAILPOINT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share and per unit amounts)
(Unaudited)

Three Months Ended October 31,Nine Months Ended October 31,
2025202420252024
Revenue
Subscription$266,160 $217,637 $729,420 $569,540 
Perpetual licenses41 269 476 360 
Services and other15,741 17,353 46,873 51,590 
Total revenue281,942 235,259 776,769 621,490 
Cost of revenue
Subscription76,773 60,566 222,707 174,174 
Perpetual licenses— 15 3 121 
Services and other18,121 17,375 61,550 51,089 
Total cost of revenue94,894 77,956 284,260 225,384 
Gross profit187,048 157,303 492,509 396,106 
Operating expenses
Research and development51,214 39,249 166,595 124,274 
Sales and marketing138,335 115,586 434,154 350,038 
General and administrative39,121 26,965 159,145 80,314 
Total operating expenses228,670 181,800 759,894 554,626 
Loss from operations(41,622)(24,497)(267,385)(158,520)
Other income (expense), net
Interest income2,523 562 8,085 3,615 
Interest expense(282)(46,569)(24,364)(140,125)
Other income (expense), net(1,427)(861)(3,328)(3,199)
Total other income (expense), net814 (46,868)(19,607)(139,709)
Loss before income taxes(40,808)(71,365)(286,992)(298,229)
Income tax benefit4,833 11,945 53,153 62,503 
Net loss$(35,975)$(59,420)$(233,839)$(235,726)
Class A yield— (162,093)(23,786)(472,439)
Net loss attributable to common stockholders and Class B unitholders
(35,975)(221,513)(257,625)(708,165)
Net loss per share attributable to common stockholders and Class B unitholders, basic and diluted (1)
$(0.06)$(2.67)$(0.48)$(8.56)
Weighted average common shares and Class B Units outstanding, basic and diluted (1)
557,520 82,930 538,184 82,687 
________
(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)
(Unaudited)

October 31, 2025January 31, 2025
Assets
Current assets
Cash and cash equivalents$298,114 $121,293 
Accounts receivable, net of allowance215,628 254,050 
Contract acquisition costs41,510 32,834 
Contract assets, net of allowance66,930 58,335 
Prepayments and other current assets47,334 45,870 
Total current assets669,516 512,382 
Property and equipment, net30,099 22,879 
Contract acquisition costs, non-current103,538 94,270 
Contract assets, non-current, net of allowance58,376 33,788 
Other non-current assets33,101 36,206 
Goodwill5,151,668 5,151,668 
Intangible assets, net1,428,507 1,560,723 
Total assets$7,474,805 $7,411,916 
Liabilities, redeemable convertible units, and stockholders' equity / partners' deficit
Current liabilities
Accounts payable$4,234 $3,515 
Accrued expenses and other liabilities97,276 158,135 
Deferred revenue423,554 413,043 
Total current liabilities525,064 574,693 
Deferred tax liabilities, non-current68,821 136,528 
Other long-term liabilities14,059 32,128 
Deferred revenue, non-current37,271 36,399 
Long-term debt, net— 1,024,467 
Total liabilities645,215 1,804,215 
Commitments and contingencies
Redeemable convertible units, no par value, unlimited units authorized, 499,052,847 units issued and outstanding as of January 31, 2025; aggregate liquidation preference of $8,100,352 as of January 31, 2025
— 11,196,141 
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 October 31, 2025
— — 
Common stock, par value of $0.0001 per share; 1,750,000,000 shares authorized as of October 31, 2025; 561,604,167 shares issued and outstanding as of October 31, 2025
56 — 
Additional paid in capital7,044,118 — 
Accumulated deficit(214,584)(5,588,440)
Total stockholders' equity / partners' deficit
6,829,590 (5,588,440)
Total liabilities, redeemable convertible units, and stockholders' equity / partners' deficit
$7,474,805 $7,411,916 


SAILPOINT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended October 31,Nine Months Ended October 31,
2025202420252024
Cash flows from operating activities
Net loss$(35,975)$(59,420)$(233,839)$(235,726)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense52,792 53,519 157,323 185,608 
Amortization and write-off of debt issuance costs135 1,146 17,255 3,342 
Amortization of contract acquisition costs10,308 6,665 27,792 17,259 
Loss (gain) on disposal of property and equipment(1)1 (1)(7)
Adjustments to contingent consideration
— — 1,609 — 
Provision for credit losses505 1,095 4,851 1,807 
Equity-based compensation expense, net of amounts capitalized48,948 7,647 203,009 23,958 
Deferred taxes(8,674)(17,431)(67,582)(75,245)
Net changes in operating assets and liabilities, net of acquisitions
Accounts receivable(12,471)(14,617)33,804 4,261 
Contract acquisition costs(19,113)(15,069)(45,736)(41,227)
Contract assets(19,572)(5,590)(33,251)(12,110)
Prepayments and other current assets8,226 1,418 (13,015)(1,421)
Other non-current assets63 (23)531 (4,009)
Operating leases, net(13)87 301 168 
Accounts payable712 3,779 705 3,283 
Accrued expenses and other liabilities16,822 37,138 (58,089)12,842 
Deferred revenue10,886 (12,347)11,049 (2,968)
Net cash provided by (used in) operating activities53,578 (12,002)6,716 (120,185)
Cash flows from investing activities
Purchase of property and equipment(1,033)(2,347)(4,186)(3,823)
Proceeds from sale of property and equipment2 — 2 12 
Capitalized software development costs(3,499)(2,431)(8,230)(7,776)
Payments for asset acquisition(16,248)— (16,248)— 
Business acquisitions, net of cash acquired— — — (4,694)
Net cash used in investing activities(20,778)(4,778)(28,662)(16,281)
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)— 
Payments of deferred offering costs, net— (638)(8,618)(1,053)
Payments related to holdback and contingent consideration
(5,700)— (6,375)— 
Repurchase of units— (4,087)— (5,897)
Net cash provided by (used in) financing activities(5,700)(4,725)201,972 (6,950)
Net change in cash, cash equivalents and restricted cash27,100 (21,505)180,026 (143,416)
Cash, cash equivalents and restricted cash, beginning of period277,316 96,557 124,390 218,468 
Cash, cash equivalents and restricted cash, end of period$304,416 $75,052 $304,416 $75,052 
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$298,114 $68,166 $298,114 $68,166 
Restricted cash within prepayments and other current assets6,302 6,886 6,302 6,886 
Total cash, cash equivalents, and restricted cash in the consolidated statements of cash flows$304,416 $75,052 $304,416 $75,052 



SAILPOINT, INC.
SUPPLEMENTAL SCHEDULES
(Amounts in thousands, except percentages)
(Unaudited)

Three Months Ended October 31,
20252024% Change
Revenue
Subscription
SaaS$155,961 $117,757 32  %
Maintenance and support37,964 38,498 (1) %
Term subscriptions65,106 55,301 18  %
Other subscription services7,129 6,081 17  %
Total subscription266,160 217,637 22  %
Perpetual licenses41 269 (85)%
Services and other15,741 17,353 (9)%
Total revenue$281,942 $235,259 20 %

Nine Months Ended October 31,
20252024% Change
Revenue
Subscription
SaaS$432,534 $320,540 35  %
Maintenance and support113,824 115,676 (2) %
Term subscriptions163,266 118,616 38  %
Other subscription services19,796 14,708 35  %
Total subscription729,420 569,540 28  %
Perpetual licenses476 360 32  %
Services and other46,873 51,590 (9) %
Total revenue$776,769 $621,490 25  %



SAILPOINT, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except percentages and per share amounts)
(Unaudited)

Three Months Ended October 31,Nine Months Ended October 31,
2025202420252024
GAAP gross profit$187,048 $157,303 $492,509 $396,106 
GAAP gross profit margin66.3 %66.9 %63.4 %63.7 %
Equity-based compensation expense5,438 3,421 29,642 9,974 
Payroll taxes for IPO-accelerated awards and RSUs
279 — 913 — 
Amortization of acquired intangible assets26,860 25,879 79,242 77,587 
Adjusted gross profit$219,625 $186,603 $602,306 $483,667 
Adjusted gross profit margin77.9 %79.3 %77.5 %77.8 %

Three Months Ended October 31,Nine Months Ended October 31,
2025202420252024
GAAP subscription gross profit$189,387 $157,071 $506,713 $395,366 
GAAP subscription gross profit margin71.2 %72.2 %69.5 %69.4 %
Equity-based compensation expense3,163 1,792 16,358 5,120 
Payroll taxes for IPO-accelerated awards and RSUs183 — 514 — 
Amortization of acquired intangible assets26,860 25,864 79,240 77,466 
Adjusted subscription gross profit$219,593 $184,727 $602,825 $477,952 
Adjusted subscription gross profit margin82.5 %84.9 %82.6 %83.9 %



Three Months Ended October 31,Nine Months Ended October 31,
2025202420252024
GAAP income (loss) from operations$(41,622)$(24,497)$(267,385)$(158,520)
GAAP income (loss) from operations margin(14.8) %(10.4) %(34.4) %(25.5) %
Equity-based compensation expense49,010 21,947 257,888 72,194 
Payroll taxes for IPO-accelerated awards and RSUs2,588 — 5,985 — 
Amortization of acquired intangible assets50,752 51,813 150,877 180,699 
Amortization of acquired contract acquisition costs(4,935)(6,351)(16,143)(19,655)
Acquisition-related expenses and Thoma Bravo monitoring fees— 3,810 2,192 12,390 
Adjusted income (loss) from operations$55,793 $46,722 $133,414 $87,108 
Adjusted operating margin19.8 %19.9 %17.2 %14.0 %

Three Months Ended October 31,Nine Months Ended October 31,
2025202420252024
GAAP research and development expense$51,214 $39,249 $166,595 $124,274 
Equity-based compensation expense(8,237)(4,396)(43,589)(17,283)
Payroll taxes for IPO-accelerated awards and RSUs(466)— (1,152)— 
Amortization of acquired intangible assets(95)(95)(285)(285)
Adjusted research and development expense$42,416 $34,758 $121,569 $106,706 

Three Months Ended October 31,Nine Months Ended October 31,
2025202420252024
GAAP sales and marketing expense$138,335 $115,586 $434,154 $350,038 
Equity-based compensation expense(15,689)(8,346)(87,395)(26,481)
Payroll taxes for IPO-accelerated awards and RSUs(994)— (2,678)— 
Amortization of acquired intangible assets(23,797)(25,839)(71,350)(102,827)
Amortization related to acquired contract acquisition costs4,935 6,351 16,143 19,655 
Acquisition-related expenses— — (1,609)— 
Adjusted sales and marketing expense$102,790 $87,752 $287,265 $240,385 





Three Months Ended October 31,Nine Months Ended October 31,
2025202420252024
GAAP general and administrative expense$39,121 $26,965 $159,145 $80,314 
Equity-based compensation expense(19,646)(5,784)(97,262)(18,456)
Payroll taxes for IPO-accelerated awards and RSUs(849)— (1,242)— 
Acquisition-related expenses and Thoma Bravo monitoring fees— (3,810)(581)(12,390)
Adjusted general and administrative expense$18,626 $17,371 $60,060 $49,468 

Three Months Ended October 31,Nine Months Ended October 31,
20252024
2025 (1)
2024
GAAP net cash provided by (used in) operating activities
$53,578$(12,002)$6,716$(120,185)
Less: Purchase of property and equipment
(1,033)(2,347)(4,186)(3,823)
Less: Capitalized software development costs
(3,499)(2,431)(8,230)(7,776)
Free cash flow
$49,046$(16,780)$(5,700)$(131,784)
GAAP net cash provided by (used in) operating activities margin
19.0 %(5.1) %0.9  %(19.3) %
Free cash flow margin
17.4 %(7.1) %(0.7)%(21.2) %
_________
(1) Free cash flow for the nine months ended October 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 related to our 2022 Credit Agreement 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 October 31,Nine Months Ended October 31,
20252025
GAAP net loss$(35,975)$(233,839)
Equity-based compensation expense49,010 257,888 
Payroll taxes for IPO-accelerated awards and RSUs2,588 5,985 
Amortization of acquired intangible assets50,752 150,877 
Amortization of acquired contract acquisition costs(4,935)(16,143)
Acquisition-related expenses and Thoma Bravo monitoring fees— 2,192 
Tax effect of adjustments
(18,702)(81,036)
Adjusted net income$42,738 $85,924 
GAAP net loss per share, basic and diluted (1)
$(0.06)$(0.48)
Adjusted EPS, diluted$0.08 $0.15 
Weighted average shares used in computing GAAP net loss per share, basic and diluted557,520 538,184 
Shares used in computing adjusted EPS, diluted561,611 561,345 
_________
(1) Includes the impact of the Class A yield for the nine months ended October 31, 2025.