Reported results
- Q2 revenue was $220.5 million, an increase of 29% year-over-year
- Annual Recurring Revenue (ARR) grew 27% year-over-year to $899 million as of July 31, 2026
- GAAP gross margin was 74%, compared to 72% for Q2 fiscal 2026; non-GAAP gross margin was 77%, compared to 75% for Q2 fiscal 2026
- GAAP loss from operations was $(89.8) million with operating margin of (41)%; non-GAAP loss from operations was $(19.3) million with non-GAAP operating margin of (9%)
- GAAP net loss per share was $(0.27), compared to $(0.84) in Q2 fiscal 2026; non-GAAP net loss per share was $(0.03), compared to $(0.32) in Q2 fiscal 2026
- Free cash flow was $(29.8) million with free cash flow margin of (14)%, compared to $(19.7) million and (12)% margin in Q2 fiscal 2026
Guidance
- Q3 fiscal 2027 revenue guidance: $227 million to $229 million
- Q3 fiscal 2027 non-GAAP operating margin: approximately (8%)
- Q3 fiscal 2027 non-GAAP net loss per share: $(0.03) to $(0.04), using approximately 415 million weighted average common stock outstanding
- Full year fiscal 2027 total revenue guidance: $888 million to $892 million
- Full year fiscal 2027 non-GAAP gross margin: approximately 77%
- Full year fiscal 2027 non-GAAP operating margin: approximately (9%)
- Full year fiscal 2027 non-GAAP net loss per share: $(0.15), using approximately 415 million weighted average common stock outstanding
- Full year fiscal 2027 free cash flow margin: approximately 2%
Notes
The release includes reconciliations of non-GAAP measures to GAAP measures. Stock-based compensation expense was $62.972 million in Q2 fiscal 2027 compared to $7.551 million in Q2 fiscal 2026. Total cash, cash equivalents, and marketable securities was $1.1 billion at end of Q2 fiscal 2027. The company noted restructuring costs of $3.5 million in the first six months of fiscal 2027.
Price and volatility reaction
The stock moved +4.3% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -34.1 vol points across the event (constant-maturity series — not the front-week crush).
| Measure | Value | Basis |
|---|---|---|
| Close before release | 13.75 | 2026-09-02 |
| Close after release | 14.34 | 2026-09-03 |
| Realised move | +4.3% | close to close |
| 30d ATM IV change | -34.1 vol pts | constant-maturity series, not the front expiry |
Source
The figures above come from the earnings release the company filed with the SEC on 2026-09-02 (8-K, Item 2.02). Read the original filing on sec.gov.