SailPoint Reports 17% Revenue Growth to $308.8 Million in Q2 2026

SailPoint, Inc. reported its financial results for the second quarter of fiscal 2026, revealing a total revenue of $308.8 million, a 17% increase from $264.4 million in the same period last year. Subscription revenue, which constitutes the majority of the company's income, rose by 19% to $295.2 million, driven primarily by a 34% increase in Software as a Service (SaaS) revenue. However, the company also reported a net loss of $50.4 million, compared to a loss of $10.6 million in the prior year, reflecting ongoing investments in growth and increased operating expenses.

The company's operating expenses for the quarter increased by 21% to $264.3 million, with significant contributions from research and development, which rose by 29% to $62.2 million, and sales and marketing expenses, which increased by 19% to $155.9 million. The increase in expenses is attributed to higher employee-related costs and equity-based compensation, as the company continues to expand its workforce and invest in its product offerings. Despite the increase in losses, gross profit for the quarter improved to $205.4 million, maintaining a gross margin of 67%.

SailPoint's customer base grew to 3,310, up from 3,105 a year earlier, with a notable increase in high-value customers. The number of customers generating over $250,000 in annual recurring revenue (ARR) rose by 22%, while those exceeding $1 million in ARR increased by 27%. The company reported a dollar-based net retention rate of 113%, slightly down from 114% a year ago, indicating stable customer retention and expansion.

Strategically, SailPoint completed the acquisition of Entro Security Ltd. for approximately $122.6 million, which is expected to enhance its Identity Security Cloud product suite. The acquisition aligns with the company's focus on expanding its capabilities in securing non-human identities and machine secrets. Additionally, SailPoint continues to invest in its SaaS offerings, which now account for 69% of its total ARR, up from 63% a year earlier.

Looking ahead, SailPoint anticipates continued revenue growth driven by its expanding customer base and product offerings. The company remains focused on deepening its penetration in international markets and enhancing its technology leadership through ongoing investments in research and development. Despite the current losses, SailPoint's management expressed confidence in achieving positive cash flows from operations in the foreseeable future, supported by its strong cash position of $309.9 million as of July 31, 2026.