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SailPoint, Inc. (SAIL)
NASDAQ:SAIL
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SailPoint, Inc.
(NASDAQ:SAIL)
Rating:46Neutral
Price Target:―
Positive Factors
Financial Performance
SAIL reported a strong quarter, beating the top end of guidance for ARR, revenue, and operating margins.
Market Position
SAIL is well positioned to consolidate share across markets that address high-priority CIO spending categories.
Product Demand
SAIL's machine identity offering has seen robust demand and a strong, growing pipeline.
Negative Factors
Revenue Recognition
The near-term impact of SaaS migration on revenue recognition is flagged, with management raising its FY revenue guidance by $9mn, well below the ARR raise of $20mn.
Stock Market Dynamics
The pending lock-up expiration with the majority of outstanding shares becoming available for sale could weigh against upside potential.
SailPoint, Inc. (SAIL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.09B
Dividend YieldN/A
Average Volume (3M)1.87M
Price to Earnings (P/E)―
Beta (1Y)1.74
Revenue Growth23.16%
EPS Growth-9.81%
CountryUS
EmployeesN/A
SectorTechnology
Sector Strength86
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.01
Shares Outstanding556,588,870
10 Day Avg. Volume3,000,423
30 Day Avg. Volume1,865,180
Financial Highlights & Ratios
PEG Ratio6.16
Price to Book (P/B)1.67
Price to Sales (P/S)0.00
P/FCF Ratio-64.08
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue9.05
Enterprise Value/Gross Profit41.61
Enterprise Value/Ebitda-55.48
Forecast
1Y Price Target
$26.96Price Target Upside23.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
SailPoint, Inc. Business Overview & Revenue Model
Company DescriptionSailPoint, Inc. (SAIL) is a leading provider of identity security solutions, helping organizations manage and secure user access across different systems and applications. Operating in the cybersecurity sector, SailPoint offers a comprehensive suite of products and services designed to ensure that the right individuals have access to the right resources at the right time. Its core offerings include identity governance, data access governance, and cloud identity solutions, which support enterprises in managing digital identities and enforcing security policies effectively.
How the Company Makes MoneySailPoint makes money primarily through the sale of its software solutions, which are offered via both on-premises installations and cloud-based platforms. The company generates revenue from software licenses, subscription fees for its cloud services, and maintenance and support contracts. Additionally, SailPoint provides professional services, including implementation, training, and consulting, which contribute to its earnings. Key partnerships with technology vendors and systems integrators also play a significant role in SailPoint's business model, expanding its market reach and integration capabilities.
SailPoint, Inc. Earnings Call Summary
Earnings Call Date:Jun 11, 2025
(Q1-2026)
| % Change Since: 10.94%|
Next Earnings Date:Sep 11, 2025
Earnings Call Sentiment Positive
The earnings call for SailPoint's Q1 2026 highlights strong ARR growth, market leadership, and positive financial performance, with significant customer expansion and innovative product offerings. However, there are concerns regarding cash flow usage and revenue mix strategies. Overall, the positive aspects significantly outweigh the negatives.Q1-2026 Updates
Positive Updates
Significant ARR Growth
SailPoint closed the quarter with $925 million in annual recurring revenue (ARR), marking a 30% year-over-year increase. SaaS ARR grew by 39% year-over-year.
Strong Customer Expansion
A 62% year-over-year increase in customers with ARR greater than $1 million. Half of new bookings came from existing customers, indicating strong customer trust and expansion.
Market Leadership and Innovation
SailPoint gained nearly 21% market share in the IGA market, five times more than the nearest competitor, highlighting strong market leadership and innovation in identity security.
Positive Financial Performance
Total revenue for Q1 2026 was $230 million, up 23% year-over-year. Subscription revenue was $215 million, up 27% year-over-year. Adjusted operating margin was 10.2%.
New Product Offerings and AI Integration
Introduction of Harbor Pilot, an AI-powered assistant, and plans to release Agent Identity Security. These innovations aim to enhance platform capabilities and customer ease of use.
Negative Updates
Operating Cash Flow and Expenses
Cash used in operating activities was $97 million, which includes significant cash payments for interest expense and items related to the IPO.
Term Revenue Mix and Investment Timing
Higher term revenue mix and timing of investments were noted, which could imply challenges in maintaining consistent growth across different revenue streams.
Company Guidance
In the first quarter of fiscal year 2026, SailPoint reported strong financial results, with annual recurring revenue (ARR) reaching $925 million, marking a 30% year-over-year increase. Notably, SaaS ARR grew by 39% annually. The company experienced a 62% increase in customers with ARR over $1 million, highlighting its capacity to manage large-scale enterprise demands. SailPoint's market share in identity governance and administration (IGA) reached nearly 21%, significantly outpacing its nearest competitor. The company also reported a net revenue retention (NRR) rate of 115%, with half of the ARR growth coming from new customers and half from existing customer expansion. For the fiscal year 2026, SailPoint raised its ARR outlook to $1.1 billion, a 25.5% increase year-over-year. Additionally, the company projected a revenue of $1.039 billion for the year, reflecting a 21% growth, and an adjusted operating margin of 15.7%.SailPoint, Inc. Financial Statement Overview
Summary
SailPoint, Inc. shows robust revenue growth but struggles with profitability and financial stability. The absence of stockholders' equity and negative cash flows highlight significant risks. To improve financial health, the company must address profitability issues and stabilize cash flow.Income Statement
SailPoint, Inc. has shown strong revenue growth from $288.5 million in 2019 to $861.6 million in 2025, indicating a positive growth trajectory. However, the company has consistently reported negative net income and EBIT margins, which highlight ongoing profitability challenges. The gross profit margin has remained robust, but the persistence of net losses is a concern.45
Neutral
Balance Sheet
The balance sheet reveals a concerning absence of stockholders' equity in recent years, leading to an undefined debt-to-equity ratio. High total liabilities and the absence of equity suggest significant financial risk. The equity ratio has also deteriorated from 46.9% in 2019 to 0% in 2025, indicating a weakened financial position.30
Negative
Cash Flow
Cash flow analysis indicates a negative free cash flow trend, with significant shortfalls in recent years. Operating cash flow remains negative, further straining financial flexibility. The company has been unable to generate positive free cash flow, which is a critical concern for sustainability.40
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 470.59M | 861.61M | 699.57M | 450.04M | 365.25M | 288.51M |
| Gross Profit | 306.57M | 555.88M | 422.94M | 334.59M | 279.51M | 223.04M |
| EBITDA | 20.51M | 47.27M | -61.65M | -37.59M | 877.00K | -9.43M |
| Net Income | -250.42M | -315.83M | -395.37M | -61.63M | -10.76M | -8.50M |
Balance Sheet | ||||||
| Total Assets | 7.41B | 7.41B | 7.59B | 1.16B | 1.08B | 990.08M |
| Cash, Cash Equivalents and Short-Term Investments | 228.12M | 121.29M | 211.65M | 435.44M | 510.29M | 443.80M |
| Total Debt | 21.52M | 1.05B | 1.59B | 385.17M | 359.75M | 351.04M |
| Total Liabilities | 636.70M | 13.00B | 8.13B | 755.60M | 610.99M | 555.95M |
| Stockholders Equity | 6.78B | -5.59B | 0.00 | 404.24M | 464.61M | 434.13M |
Cash Flow | ||||||
| Free Cash Flow | -88.89M | -119.97M | -254.83M | -12.88M | 53.95M | 43.54M |
| Operating Cash Flow | -83.01M | -106.39M | -250.35M | -8.85M | 57.95M | 50.09M |
| Investing Cash Flow | -16.56M | -28.94M | -12.66M | -74.95M | -3.97M | -38.91M |
| Financing Cash Flow | 258.86M | 41.26M | 50.43M | 1.47M | 12.55M | 361.70M |
SailPoint, Inc. Risk Analysis
SailPoint, Inc. disclosed 36 risk factors in its most recent earnings report. SailPoint, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
The Merger, the pendency of the Merger or our failure to complete the Merger could have a material adverse effect on our business, results of operations, financial condition and stock price. Q2, 2022
SailPoint, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $5.10B | 28.61 | 40.23% | ― | 9.58% | 12.41% | |
76 Outperform | $10.38B | 23.05 | 13.40% | ― | 12.62% | 26.45% | |
75 Outperform | $8.39B | 127.40 | 6.40% | ― | 21.75% | 116.24% | |
64 Neutral | $5.48B | ― | -22.21% | ― | 13.34% | 13.71% | |
63 Neutral | $32.30B | 6.54 | -12.31% | 1.93% | 5.64% | -21.98% | |
62 Neutral | $5.78B | ― | -3.95% | ― | 13.12% | 75.24% | |
46 Neutral | $13.09B | ― | -11.15% | ― | 23.16% | -9.81% |
* Technology Sector Average
Performance Comparison
SAIL
SailPoint, Inc.
23.19
-1.36
-5.54%
NICE
NICE
165.53
2.96
1.82%
QLYS
Qualys
141.19
3.53
2.56%
VRNS
Varonis Systems
50.15
6.70
15.42%
QTWO
Q2 Holdings
93.00
34.17
58.08%
SRAD
Sportradar Group AG
26.97
16.09
147.89%
SailPoint, Inc. Corporate Events
Delistings and Listing ChangesBusiness Operations and Strategy
SailPoint, Inc. Announces Successful IPO Completion
Positive
Feb 19, 2025
On February 12, 2025, SailPoint, Inc. and its existing stockholders entered into an underwriting agreement with Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC for its initial public offering (IPO), involving the sale of 60 million shares at $23.00 per share. The IPO closed on February 14, 2025, with the company also converting from a Delaware limited partnership to a corporation and implementing new governance structures such as a certificate of incorporation, bylaws, and various incentive plans, aiming to enhance its market positioning and stakeholder relationships.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.