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SailPoint, Inc. (SAIL)
NASDAQ:SAIL
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SailPoint, Inc.
(NASDAQ:SAIL)
Rating:49Neutral
Price Target:
$20.00
▼(-3.71% Downside)
Positive Factors
Market Share
SAIL's competitive displacement momentum is expected to showcase continued market share gains from legacy vendors.
Strategic Partnerships
A recent announcement to integrate SAIL's upcoming Agent Identity Security solution with Deloitte's Cybersecurity for AI and GenAI governance framework is seen positively.
Negative Factors
IPO Lock-Up
The expiry of the IPO lock-up offers investors a buying opportunity at attractive valuation levels.
Ownership Structure
Large PE ownership is likely to serve as a near-term overhang and could create future volatility.
SailPoint, Inc. (SAIL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.19B
Dividend YieldN/A
Average Volume (3M)2.43M
Price to Earnings (P/E)―
Beta (1Y)1.47
Revenue Growth23.05%
EPS Growth-23.69%
CountryUS
Employees2,738
SectorTechnology
Sector Strength86
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.01
Shares Outstanding556,588,870
10 Day Avg. Volume2,287,707
30 Day Avg. Volume2,427,668
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.83
Enterprise Value/Revenue19.84
Enterprise Value/Gross Profit30.46
Enterprise Value/Ebitda455.38
Forecast
1Y Price Target
$25.58Price Target Upside23.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
SailPoint, Inc. Business Overview & Revenue Model
Company DescriptionSailPoint, Inc. (SAIL) is a leading provider of identity governance solutions that help enterprises manage digital identities and access rights across various platforms and environments. Founded in 2005 and headquartered in Austin, Texas, the company primarily operates in the cybersecurity sector, focusing on identity management and governance solutions. SailPoint's core products include IdentityNow, a cloud-based identity governance platform, and AccessIQ, which provides insights and analytics for access management. By delivering robust solutions that enhance security, compliance, and operational efficiency, SailPoint serves a diverse range of industries, including financial services, healthcare, and government.
How the Company Makes MoneySailPoint generates revenue primarily through subscription-based licensing for its software products, which are offered both as on-premises solutions and cloud-based services. The company has a recurring revenue model, where clients pay for ongoing access to its platforms, including IdentityNow and AccessIQ. Key revenue streams include new customer subscriptions, renewals of existing contracts, and professional services such as implementation, training, and support. Additionally, SailPoint collaborates with strategic partners, including major technology providers and consulting firms, to expand its market reach and enhance its service offerings, which play a significant role in driving revenue growth.
SailPoint, Inc. Earnings Call Summary
Earnings Call Date:Jun 11, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 11, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance in financial metrics, ARR growth, and a robust pipeline of innovations and partnerships. However, there were notable cash usage concerns and challenges in displacing legacy systems. Overall, the positives significantly outweigh the negatives.Q1-2026 Updates
Positive Updates
Strong Annual Recurring Revenue (ARR) Growth
Closed the quarter with $925 million in ARR, a 30% year-over-year increase, with SaaS ARR growing 39% year-over-year.
Significant Increase in Large Customers
62% year-over-year increase in customers with ARR greater than $1 million, reflecting the company's ability to support enterprise scale and complexity.
Innovation in Identity Security
Introduction of Harbor Pilot, an AI-powered assistant, and the upcoming release of Agent Identity Security to govern digital identities, including AI agents.
Strong Financial Performance
Delivered total revenue of $230 million, up 23% year-over-year, with subscription revenue of $215 million, up 27% year-over-year. Adjusted operating margin was 10.2%.
Positive Market Position
Achieved nearly 21% market share in identity security, significantly outpacing nearest competitor, and strong partnerships with Deloitte and other firms.
Negative Updates
High Cash Usage
Cash used in operating activities was $97 million, including $37 million for interest expense and $88 million for items ending with IPO.
Challenges with Legacy System Displacement
Continued need to displace legacy systems and manage complex enterprise environments, indicating ongoing challenges in migration and customer acquisition.
Company Guidance
During the SailPoint First Quarter 2026 earnings call, the company highlighted impressive financial metrics, reporting a 30% year-over-year increase in annual recurring revenue (ARR) to $925 million, with SaaS ARR growing 39%. The number of customers with ARR over $1 million surged by 62%, showcasing robust demand for their identity security solutions. SailPoint's market share in the identity governance and administration (IGA) sector reached nearly 21%, approximately five times greater than their nearest competitor. They also noted a net revenue retention (NRR) rate of 115%, with half of new bookings coming from existing customers, reflecting their strong customer loyalty and expansion within their installed base. The company's robust performance led to an increased full-year ARR guidance of $1.1 billion, up 25.5% year-over-year, indicating confidence in continued growth and market leadership.SailPoint, Inc. Financial Statement Overview
Summary
SailPoint, Inc. shows strong revenue growth but faces significant financial challenges. The absence of stockholders' equity and negative cash flows highlight substantial risks. The company must address profitability issues and stabilize its cash flow to improve financial health.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 | Dec 2024 | Dec 2023 | 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 | 413.99M | 359.75M | 351.04M |
| Total Liabilities | 636.70M | 13.00B | 8.13B | 755.60M | 610.99M | 555.95M |
| Stockholders Equity | 6.78B | -5.59B | -541.20M | 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 0 New Risks
SailPoint, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $17.51B | ― | -3.65% | ― | 21.90% | 67.81% | |
72 Outperform | $6.43B | ― | -25.73% | ― | 14.29% | -14.42% | |
71 Outperform | $11.03B | 27.75 | 9.21% | ― | 3.98% | -31.18% | |
70 Neutral | $22.08B | 1,777.39 | -10.35% | ― | 39.45% | -982.51% | |
64 Neutral | $16.03B | 142.15 | 2.61% | ― | 12.68% | ― | |
61 Neutral | $36.05B | 6.66 | -10.10% | 1.86% | 8.68% | -8.81% | |
49 Neutral | $11.19B | ― | -11.15% | ― | 23.05% | -23.69% |
* Technology Sector Average
Performance Comparison
SAIL
SailPoint, Inc.
20.77
-3.78
-15.40%
AKAM
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VRNS
Varonis Systems
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CYBR
CyberArk Software
453.17
166.66
58.17%
OKTA
Okta
92.59
13.08
16.45%
MDB
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318.10
72.38
29.46%
SailPoint, Inc. Corporate Events
Private Placements and Financing
SailPoint, Inc. Enters New $250 Million Credit Agreement
Neutral
Jun 26, 2025
On June 25, 2025, SailPoint Technologies, Inc. and SailPoint Technologies Intermediate Holdings, LLC, subsidiaries of SailPoint, Inc., entered into a new credit agreement with lenders, allowing borrowings up to $250 million. This agreement, replacing a previous one from August 2022, includes terms for loans and interest rates based on leverage ratios, and it is secured by the assets of the borrowers and guarantors. The agreement also imposes financial covenants and reporting requirements, impacting SailPoint’s financial operations and relationships with lenders.
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.