SailPoint Announces Strong Fiscal Fourth Quarter and Full Year 2025 Financial Results

Rhea-AI Summary

SailPoint (SAIL) reported strong Q4 and full year 2025 results, with notable growth in Annual Recurring Revenue (ARR). Total ARR reached $877 million, up 29% year-over-year, while SaaS ARR grew 39% to $540 million. The company saw an 80% increase in customers with over $1 million ARR.

Q4 total revenue was $240 million (+18% YoY) with subscription revenue of $224 million (+22% YoY). While reporting a GAAP operating loss of $30 million, adjusted operating income reached $46 million (19.0% of revenue).

For FY2026, SailPoint projects total ARR between $1,075-$1,085 million (23-24% growth) and revenue of $1,025-$1,035 million (19-20% growth). The company expects adjusted operating income of $151-156 million and adjusted EPS of $0.14-$0.18 per share.

Insights

Financial Analyst

SailPoint's Q4 and FY2025 results reflect exceptional SaaS momentum and dramatically improved profitability metrics. The 39% year-over-year growth in SaaS ARR to $540 million significantly outpaced the already strong 29% growth in total ARR, signaling successful execution of their cloud transition strategy. With SaaS now representing ~62% of total ARR, this transition is well advanced.

The company's operating leverage is particularly impressive. Q4 adjusted operating income reached $46 million with a 19.0% margin, up from $28 million and 13.7% a year earlier. For the full year, adjusted operating income more than doubled to $133 million, expanding margins from 7.8% to 15.4%, while GAAP losses narrowed substantially.

The ~80% year-over-year increase in customers exceeding $1 million ARR demonstrates both strong enterprise adoption and effective land-and-expand execution. This metric, combined with overall ARR growth, suggests both new customer acquisition and significant expansion within existing accounts.

SailPoint has achieved the coveted "Rule of 40" benchmark (combined growth and profit margin exceeding 40%), positioning it among elite SaaS performers. The FY2026 guidance projecting ARR growth of 23-24% and continued margin expansion signals management's confidence in sustaining this balanced growth and profitability trajectory.

Cybersecurity Expert

SailPoint's strong financial performance reflects the increasing strategic importance of identity security within enterprise cybersecurity frameworks. As organizations' identity landscapes grow more complex with hybrid workforces, cloud migrations, and digital transformation initiatives, the need for sophisticated identity security controls has become critical.

The CEO's comments about identity security becoming "a strategic enterprise security imperative" align with current market dynamics. Organizations increasingly recognize that identity compromise is involved in a majority of breaches, elevating identity from a compliance function to a core security control.

The 80% increase in million-dollar customers indicates that large enterprises are making substantial investments in identity security platforms rather than point solutions. This suggests a shift toward viewing identity as an integrated security layer requiring comprehensive capabilities across governance, administration, and authentication.

The mention of AI agents creating additional identity security challenges represents an emerging frontier. As organizations deploy AI systems with varying levels of access and autonomy, securing these non-human identities presents new governance challenges. SailPoint's positioning as a "central control plane for securing all enterprise identities" suggests they're strategically aligned with this market evolution.

With continued double-digit growth forecasted through 2026, the identity security market clearly remains in expansion mode as enterprises prioritize identity controls within their security architectures.

• Grew ARR 29% year-over-year to $877 million
• Expanded SaaS ARR 39% year-over-year to $540 million
• Finished the year with an ~80% year-over-year increase in the number of customers with more than $1 million of ARR

AUSTIN, Texas, March 26, 2025 (GLOBE NEWSWIRE) -- SailPoint, Inc. (Nasdaq: SAIL), a leader in enterprise identity security, today announced financial results for its fiscal fourth quarter and full year, ended January 31, 2025.

“We are very pleased to report our strong fourth quarter and full year 2025 results where our continued pursuit of efficient growth at scale drove a year of greater than ‘rule of 40’ performance. Our relentless focus on innovation and execution enables us to capitalize on the growing market opportunity to help enterprises as they struggle to manage, govern and secure their vast identity landscape,” said Mark McClain, SailPoint Founder and CEO.

“Identity security is increasingly recognized as a strategic enterprise security imperative today. CIOs and CISOs now realize the criticality of a unified, intelligent, and powerful identity security platform that is designed to handle enterprise-class scale, complexity, and velocity of change in fine-grained access needs. This becomes even more important with the rise of AI agents,” McClain continued. “We believe SailPoint’s ability to serve as a central control plane for securing all enterprise identities makes us the ideal partner to solve these critical business challenges for enterprises worldwide.”

Fiscal 2025 Fourth Quarter Financial Highlights

• Annual Recurring Revenue (ARR): Total ARR was $877 million, an increase of 29% year-over-year. SaaS ARR was $540 million, an increase of 39% year-over-year.
• Revenue: Total revenue was $240 million, an increase of 18% year-over-year. Subscription revenue was $224 million, an increase of 22% year-over-year.
• Operating Income (Loss):   GAAP operating loss was $30 million, or (12.6)% of revenue, compared to $65 million, or (32.2)% of revenue in fiscal Q4 2024. Adjusted income from operations was $46 million, or 19.0% of revenue, compared to $28 million, or 13.7% of revenue in fiscal Q4 2024.

Fiscal Full Year 2025 Financial Highlights

• Annual Recurring Revenue: Total ARR was $877 million, an increase of 29% year-over-year. SaaS ARR was $540 million, an increase of 39% year-over-year.
• Revenue: Total revenue was $862 million, an increase of 23% year-over-year. Subscription revenue was $794 million, an increase of 27% year-over-year.
• Operating Income (Loss): GAAP operating loss was $189 million, or (21.9)% of revenue, compared to $333 million, or (47.6)% of revenue in FY 2024. Adjusted income from operations was $133 million, or 15.4% of revenue, compared to $54 million, or 7.8% of revenue in FY 2024.

Financial Outlook

For the first quarter of fiscal 2026, SailPoint expects:

• Total ARR: In the range of $896 to $900 million, representing 26% to 27% year-over-year growth.
• Total Revenue: In the range of $224 to $226 million, representing 19% to 20% year-over-year growth.
• Adjusted Income from Operations: In the range of $14 to $15 million, representing adjusted operating margin of 6.2% to 6.7%.
• Adjusted EPS: In the range of ($0.02) to $0.00 per diluted share.

For the fiscal full year 2026, SailPoint expects:

• Total ARR: In the range of $1,075 to $1,085 million, representing 23% to 24% year-over-year growth.
• Total Revenue: In the range of $1,025 to $1,035 million, representing 19% to 20% year-over-year growth.
• Adjusted Income from Operations: In the range of $151 to $156 million, representing adjusted operating margin of 14.6% to 15.2%.
• Adjusted EPS: In the range of $0.14 to $0.18 per diluted share.

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 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 and adjusted EPS to their most directly comparable GAAP measure due to the high variability and difficulty in making accurate forecasts and projections, particularly with respect to 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 and adjusted EPS 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 fourth quarter and full year 2025 financial results 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

SailPoint, Inc. (Nasdaq: SAIL) equips the modern enterprise to seamlessly manage and secure access to applications and data through the lens of identity – at speed and scale. As a category leader, we continuously reinvent identity security as the foundation of the secure enterprise. SailPoint delivers a unified, intelligent, extensible platform built to defend against today’s dynamic, identity-centric cyber threats while enhancing productivity and efficiency. SailPoint helps many of the world’s most complex, sophisticated enterprises create a secure technology ecosystem that fuels business transformation.

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, amortization of acquired intangible assets which includes impairment charges, impairment of intangible assets, acquisition-related expenses, benefit from amortization related to acquired contract acquisition costs, Thoma Bravo monitoring fees (which are 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 consummation of our initial public offering), and restructuring expenses.

Adjusted operating margin, which we define as adjusted income from operations as a percentage of revenue.

Adjusted EPS (or non-GAAP net income (loss) available to common stockholders per basic and diluted share), which we define as adjusted net income (loss) divided by the weighted average outstanding common shares. We calculate adjusted net income (loss) as net income (loss) on a GAAP basis excluding equity-based compensation expense, amortization of acquired intangible assets which includes impairment charges, impairment of intangible assets, acquisition-related expenses, benefit from amortization related to acquired contract acquisition costs, and Thoma Bravo monitoring fees. Adjusted net income (loss) is adjusted for the effect of income taxes associated with such adjustments.

Our non-GAAP financial measures exclude items that neither relate to our ordinary course of business nor reflect our underlying business performance, such as equity-based compensation, the amortization of acquired intangible assets, and acquisition-related expenses. 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 expenses from our non-GAAP measures, equity compensation has been, and will continue to be, an important part of our future compensation strategy and a significant component of our future expenses and may increase in future periods.

Amortization of acquired 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 the 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.

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 have written off our contract acquisition costs at the time of the Take-Private Transaction. Therefore, GAAP commissions expense 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 were not written off. Accordingly, we believe that presenting the approximate amount of acquisition-related commission expenses (so that the full amount of commission expense is included) provides a more appropriate representation of commission expense 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 its 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 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.

The Rule of 40. The Rule of 40 is a common SaaS industry metric used to evaluate the performance of SaaS providers by assessing a company’s balance between growth and profitability and postulates that a SaaS company’s revenue growth rate and profit margin should equal or exceed 40%. A total of above 40% is thought to indicate a healthy combination of expansion and financial stability. For SailPoint, the Rule of 40 is computed by adding the year-over-year ARR growth rate with our adjusted operating margin.

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 initial public offering, SailPoint Parent, LP converted into a Delaware corporation pursuant to a statutory conversion and changed its name to SailPoint, Inc. References to “SailPoint,” “we, and “our” (i) for periods prior to such corporate conversion are to SailPoint Parent, LP and where appropriate, its consolidated subsidiaries and (ii) for periods after such 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 success 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 upcoming Annual Report on Form 10-K 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 PARENT, LP AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per unit amounts)
	(Unaudited)								(Audited)
	Three months ended January 31,								Twelve months ended January 31,
		2025				2024				2025				2024
Revenue
Subscription	$	224,379			$	184,288			$	793,919			$	622,830
Perpetual licenses		40				742				400				5,842
Services and other		15,702				17,677				67,292				70,900
Total revenue		240,121				202,707				861,611				699,572
Cost of revenue
Subscription		62,407				54,817				236,581				205,053
Perpetual licenses		33				164				154				2,227
Services and other		17,909				17,991				68,998				69,355
Total cost of revenue		80,349				72,972				305,733				276,635
Gross profit		159,772				129,735				555,878				422,937
Operating expenses
Research and development		45,456				45,933				169,730				180,778
Sales and marketing		116,865				122,837				466,903				461,187
General and administrative		27,665				26,193				107,979				113,701
Total operating expenses		189,986				194,963				744,612				755,666
Loss from operations		(30,214	)			(65,228	)			(188,734	)			(332,729	)
Other income (expense), net
Interest income		543				2,627				4,158				10,658
Interest expense		(46,527	)			(47,569	)			(186,652	)			(187,059	)
Other income (expense), net		(2,202	)			(884	)			(5,401	)			(3,219	)
Total other income (expense), net		(48,186	)			(45,826	)			(187,895	)			(179,620	)
Loss before income taxes		(78,400	)			(111,054	)			(376,629	)			(512,349	)
Income tax benefit (expense)		(1,704	)			23,791				60,799				116,982
Net loss	$	(80,104	)		$	(87,263	)		$	(315,830	)		$	(395,367	)
Class A yield		(292,110	)			(152,197	)			(764,549	)			(583,672	)
Net loss attributable to Class B unitholders		(372,214	)			(239,460	)			(1,080,379	)			(979,039	)
Loss per unit attributable to Class B unitholders - basic and diluted	$	(4.29	)		$	(2.93	)		$	(12.91	)		$	(12.13	)
Weighted average Class B Units outstanding - basic and diluted		86,781				81,651				83,716				80,746

SAILPOINT PARENT, LP AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except units)
	January 31, 2025				January 31, 2024
Assets
Current assets
Cash and cash equivalents	$	121,293			$	211,647
Accounts receivable, net of allowance		254,050				213,307
Contract acquisition costs		32,834				18,668
Contract assets, net of allowance		58,335				51,703
Prepayments and other current assets		45,870				35,752
Total current assets		512,382				531,077
Property and equipment, net		22,879				16,332
Contract acquisition costs, non-current		94,270				61,657
Contract assets, non-current, net of allowance		33,788				28,717
Other non-current assets		36,206				33,219
Goodwill		5,151,668				5,138,855
Intangible assets, net		1,560,723				1,779,875
Total assets	$	7,411,916			$	7,589,732
Liabilities, redeemable convertible units and partners' deficit
Current liabilities
Accounts payable	$	3,515			$	8,820
Accrued expenses and other liabilities		158,135				117,570
Deferred revenue		413,043				335,465
Total current liabilities		574,693				461,855
Deferred tax liabilities, non-current		136,528				206,464
Other long-term liabilities		32,128				24,954
Deferred revenue, non-current		36,399				36,575
Long-term debt, net		1,024,467				1,562,215
Total liabilities		1,804,215				2,292,063
Commitments and contingencies
Redeemable convertible units, no par value, unlimited units authorized, 499,052,847 and 454,618,712 units issued and outstanding as of January 31, 2025 and 2024, respectively; aggregate liquidation preference of $8,100,352 and $6,861,381 as of January 31, 2025 and 2024, respectively		11,196,141				5,838,864
Partners' deficit
Additional paid in capital		—				37,431
Accumulated deficit		(5,588,440	)			(578,626	)
Total partners' deficit		(5,588,440	)			(541,195	)
Total liabilities, redeemable convertible units and partners' deficit	$	7,411,916			$	7,589,732

SAILPOINT PARENT, LP AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
	Year ended January 31,
		2025				2024
Cash flows from operating activities
Net loss	$	(315,830	)		$	(395,367	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense		237,248				263,638
Amortization and write-off of debt discount and issuance costs		12,685				4,152
Amortization of contract acquisition costs		24,899				11,519
(Gain) loss on disposal of property and equipment		—				36
Provision for credit losses		2,534				1,662
Equity-based compensation expense		31,714				37,469
Deferred taxes		(71,209	)			(124,919	)
Net changes in operating assets and liabilities, net of business acquisitions
Accounts receivable		(41,653	)			(57,397	)
Contract acquisition costs		(71,678	)			(61,716	)
Contract assets		(11,730	)			(21,139	)
Prepayments and other current assets		(13,744	)			(594	)
Other non-current assets		6,006				(87	)
Operating leases, net		293				335
Accounts payable		(5,346	)			4,232
Accrued expenses and other liabilities		36,565				22,634
Deferred revenue		72,855				65,188
Net cash used in operating activities		(106,391	)			(250,354	)
Cash flows from investing activities
Purchase of property and equipment		(5,362	)			(2,577	)
Proceeds from sale of property and equipment		14				31
Capitalized software development costs		(8,219	)			—
Purchase of intangible assets		—				(1,900	)
Business acquisitions, net of cash acquired		(15,377	)			(8,218	)
Net cash used in investing activities		(28,944	)			(12,664	)
Cash flows from financing activities
Proceeds from issuance of units		600,321				51,743
Proceeds from revolving line of credit		25,000				—
Repayments to revolving line of credit		(25,000	)			—
Repayment of term loan		(550,000	)			—
Payments of deferred offering costs		(2,892	)			—
Repurchase of units		(6,172	)			(1,311	)
Net cash provided by financing activities		41,257				50,432
Net change in cash, cash equivalents and restricted cash		(94,078	)			(212,586	)
Cash, cash equivalents and restricted cash, beginning of period		218,468				431,054
Cash, cash equivalents and restricted cash, end of period	$	124,390			$	218,468

SAILPOINT PARENT, LP AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Amounts in thousands, except percentages) (Unaudited)
	Three months ended January 31,								Twelve months ended January 31,
		2025				2024				2025				2024
GAAP gross profit	$	159,772			$	129,735			$	555,878			$	422,937
GAAP gross profit margin		66.5	%			64.0	%			64.5	%			60.5	%
Equity-based compensation expense		3,797				2,782				13,771				12,447
Amortization of acquired intangible assets		25,896				25,819				103,483				102,967
Acquisition-related expenses and Thoma Bravo monitoring fees		—				58				—				58
Restructuring		—				6				—				94
Adjusted gross profit	$	189,465			$	158,400			$	673,132			$	538,503
Adjusted gross profit margin		78.9	%			78.1	%			78.1	%			77.0	%

	Three months ended January 31,								Twelve months ended January 31,
		2025				2024				2025				2024
GAAP subscription gross profit	$	161,972			$	129,471			$	557,338			$	417,777
GAAP subscription gross profit margin		72.2	%			70.3	%			70.2	%			67.1	%
Equity-based compensation expense		1,999				1,391				7,119				6,675
Amortization of acquired intangible assets		25,863				25,666				103,329				100,820
Acquisition-related expenses and Thoma Bravo monitoring fees		—				58				—				58
Restructuring		—				6				—				85
Adjusted subscription gross profit	$	189,834			$	156,592			$	667,786			$	525,415
Adjusted subscription gross profit margin		84.6	%			85.0	%			84.1	%			84.4	%

	Three months ended January 31,								Twelve months ended January 31,
		2025				2024				2025				2024
GAAP income (loss) from operations	$	(30,214	)		$	(65,228	)		$	(188,734	)		$	(332,729	)
GAAP income (loss) from operations margin	(12.6)%				(32.2)%				(21.9)%				(47.6)%
Equity-based compensation expense		27,375				30,588				99,569				134,819
Amortization of acquired intangible assets		49,609				64,345				230,308				257,029
Amortization of acquired contract acquisition costs		(6,027	)			(6,921	)			(25,682	)			(28,461	)
Acquisition-related expenses and Thoma Bravo monitoring fees		4,893				5,042				17,283				20,051
Restructuring		—				(18	)			—				3,541
Adjusted income (loss) from operations	$	45,636			$	27,808			$	132,744			$	54,250
Adjusted operating margin		19.0	%			13.7	%			15.4	%			7.8	%

FAQ

What was SailPoint's (SAIL) total ARR growth in Q4 2025?

SailPoint's total ARR grew 29% year-over-year to $877 million in Q4 2025.

How much did SailPoint's (SAIL) SaaS ARR grow in fiscal 2025?

SailPoint's SaaS ARR increased 39% year-over-year to $540 million.

What is SailPoint's (SAIL) revenue guidance for fiscal 2026?

SailPoint expects total revenue between $1,025-$1,035 million, representing 19-20% year-over-year growth.

What is SailPoint's (SAIL) projected earnings per share for fiscal 2026?

SailPoint projects adjusted EPS between $0.14-$0.18 per diluted share for fiscal 2026.

How did SailPoint's (SAIL) customer base with $1M+ ARR grow in 2025?

SailPoint reported an approximately 80% year-over-year increase in customers with more than $1 million of ARR.