Strong ARR and Net New ARR Growth
Total ARR grew 23% year-over-year; company added $54 million of net new ARR in Q3, with net new ARR higher sequentially and broad-based momentum from new logos and expansion.
Revenue Growth and Geographic Strength
Revenue grew 23% year-over-year to $259 million in Q3; international revenue grew 34% and represented 40% of total revenue, reflecting expanding global footprint.
Record ARR per Customer and Upmarket Traction
ARR per customer reached a company record; customers with ARR >= $100k grew 20% to 1,572, illustrating larger average deal sizes and successful land-and-expand motion.
Margin Improvement and Profitability Milestones
Q3 gross margin was 79%; operating margin reached 7% (an improvement of ~1,200 basis points year-over-year); net income margin improved to 10% (from breakeven prior-year quarter); free cash flow margin reached 6% in Q3 with the company on track for full-year positive free cash flow.
Platform Diversification and Booking Mix
Non-endpoint solutions represented approximately 50% of quarterly bookings, signaling growing contribution from data, Purple AI and cloud security offerings.
Rapid Adoption of AI and Data Solutions
Purple AI attach rate surpassed 40% of licenses sold in Q3; Data Solutions bookings accelerated to triple-digit year-over-year growth; strongest Cloud Security bookings in the last 12 months reported.
Strategic Acquisitions to Advance Data and AI Roadmap
Closed acquisitions of Observo AI and Prompt Security; Observo acquisition purchase price ~ $225 million to secure an AI-native telemetry pipeline and reduce onboarding friction for AI SIEM and data analytics.
Backlog and Contract Visibility
Remaining Performance Obligations (RPO) grew 35% year-over-year to $1.3 billion, indicating stronger forward revenue visibility.
Guidance for Fiscal Year and Q4
Fiscal year '26 revenue guidance raised to approximately $1.001 billion (≈22% year-over-year growth); Q4 revenue guidance of ~$271 million (≈20% year-over-year growth); full-year operating margin expected to slightly exceed 3% (improvement >600 bps).