Reported results
- Total ARR increased 25% year-over-year to $1.231 billion; SaaS ARR increased 36% year-over-year to $847 million
- Total revenue was $309 million, an increase of 17% year-over-year; subscription revenue was $295 million, an increase of 19% year-over-year
- GAAP operating loss was $(59) million, or (19)% of revenue; adjusted income from operations was $63 million, or 20% of revenue
- Net cash provided by operating activities was $45 million; free cash flow was $37 million
- AI-driven ARR exceeded $70 million and accounted for more than 30% of net new ARR in the quarter
Guidance
- Q3 2027: Total ARR $1,288 to $1,292 million; Total revenue $326 to $330 million; Adjusted income from operations $57.5 to $58.5 million; Adjusted EPS $0.07 to $0.08
- FY 2027: Total ARR $1,375 to $1,385 million; Total revenue $1,265 to $1,275 million; Adjusted income from operations $239 to $244 million; Adjusted EPS $0.30 to $0.34
- FY 2029 targets: At least $2.1 billion of ARR; at least $800 million of AI-driven ARR; at least 22% adjusted operating margin; at least $400 million of free cash flow
Notes
The company reclassified periods to reflect fiscal year 2027 reporting. Prior-year periods presented are fiscal Q2 2026 (ended July 31, 2025) and fiscal H1 2026. Adjusted metrics exclude equity-based compensation, payroll taxes related to IPO-accelerated awards and RSUs, amortization of acquired intangibles, restructuring expenses, amortization of acquired contract acquisition costs, and acquisition-related expenses. Company completed acquisition of Entro Security during the quarter.
Price and volatility reaction
The stock moved -1.2% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -23.2 vol points across the event (constant-maturity series — not the front-week crush).
| Measure | Value | Basis |
|---|---|---|
| Close before release | 17.79 | 2026-09-08 |
| Close after release | 17.58 | 2026-09-09 |
| Realised move | -1.2% | close to close |
| 30d ATM IV change | -23.2 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 2026-09-09 (8-K, Item 2.02). Read the original filing on sec.gov.