PagerDuty, Inc. reported its financial results for the second quarter of fiscal 2026, revealing a revenue increase of 6.4% year-over-year, reaching $123.4 million compared to $115.9 million in the same period last year. For the six months ending July 31, 2025, revenue totaled $243.2 million, up 7.1% from $227.1 million in the prior year. The company achieved a gross profit of $104.4 million for the quarter, resulting in a gross margin of 84.6%, an improvement from 82.7% in the previous year. Net income attributable to PagerDuty, Inc. was $9.6 million for the quarter, a significant turnaround from a net loss of $10.9 million in the same quarter of the previous year.

The company’s operating expenses decreased by 9.9% to $100.8 million for the quarter, driven by reductions in research and development, sales and marketing, and general and administrative costs. Research and development expenses fell to $30.9 million from $35.1 million, while sales and marketing costs decreased to $44.5 million from $51.0 million. This reduction in expenses contributed to an operating income of $3.6 million, compared to an operating loss of $16.0 million in the prior year. The company also reported a dollar-based net retention rate of 102%, down from 106% a year earlier, indicating a slight decline in revenue growth from existing customers.

PagerDuty's customer base grew to 15,322, an increase from 15,044 a year prior, with 868 customers generating over $100,000 in annual recurring revenue (ARR). The total ARR as of July 31, 2025, was $498.9 million, up from $474.0 million a year earlier. The company continues to focus on expanding its enterprise customer segment, which now constitutes a significant portion of its revenue. Additionally, PagerDuty's international revenue increased to $35.3 million, contributing to a total revenue of $123.4 million for the quarter.

In terms of liquidity, PagerDuty reported cash and cash equivalents of $339.7 million as of July 31, 2025, down from $346.5 million at the beginning of the fiscal year. The company generated $64.6 million in net cash from operating activities during the first half of the fiscal year, slightly up from $64.4 million in the same period last year. The company repaid $57.5 million of its 2025 Convertible Senior Notes during the quarter, reflecting its commitment to managing debt effectively. Looking ahead, PagerDuty anticipates continued growth driven by its expanding product offerings and customer base, while maintaining a focus on operational efficiency and cost management.

About PagerDuty, Inc.

PagerDuty, Inc. is a global leader in digital operations management, providing a cloud-based platform that integrates incident response, AI-driven automation, and customer service solutions. Serving enterprise clients across various industries, it enhances operational resilience, accelerates incident resolution, and improves customer experience through extensive integrations, AI capabilities, and scalable infrastructure. Its business model relies on subscription revenues from organizations seeking real-time, proactive digital operations.

This description was generated via AI from an annual report. Updated 10 months ago.

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