Education
About Us
Working with TipRanks
Follow Us
SailPoint, Inc. (SAIL)
NASDAQ:SAIL
Top Page
SailPoint, Inc.
(NASDAQ:SAIL)
Select Model
Select Model
Rating:53Neutral
Price Target:
$21.00
▼(-0.52% Downside)
SailPoint's overall stock score is driven by strong earnings call performance and technical indicators, but is significantly hindered by weak financial performance and valuation metrics. The company's growth potential is offset by financial instability and profitability challenges.
Positive Factors
Revenue Growth
SailPoint's strong revenue growth reflects its successful market expansion and product adoption, indicating a robust business model and competitive positioning in the identity governance sector.
Product Innovation
The introduction of innovative products like Machine Identity Security enhances SailPoint's capability to address emerging cybersecurity challenges, strengthening its market leadership and long-term growth prospects.
Customer Base Expansion
The significant increase in large enterprise customers demonstrates SailPoint's ability to scale and meet complex identity governance needs, reinforcing its market position and revenue stability.
Negative Factors
Financial Instability
Ongoing financial instability, marked by net losses and negative cash flows, poses risks to SailPoint's long-term sustainability and ability to invest in growth initiatives.
Balance Sheet Weakness
The lack of stockholders' equity and high liabilities indicate a weakened financial position, limiting SailPoint's financial flexibility and increasing vulnerability to economic fluctuations.
Profitability Challenges
SailPoint's ongoing profitability challenges, despite strong revenue growth, highlight the need for improved cost management and operational efficiency to achieve sustainable financial health.
SailPoint, Inc. (SAIL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.75B
Dividend YieldN/A
Average Volume (3M)2.77M
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth25.99%
EPS Growth-25.47%
CountryUS
Employees2,738
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.07
Shares Outstanding556,635,300
10 Day Avg. Volume3,887,271
30 Day Avg. Volume2,771,577
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 Cap1.03
Enterprise Value/Revenue25.84
Enterprise Value/Gross Profit39.66
Enterprise Value/Ebitda592.94
Forecast
1Y Price Target
$25.56Price Target Upside21.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
SailPoint, Inc. Business Overview & Revenue Model
Company DescriptionSailPoint, Inc. provides solutions to enable various identity security for the enterprise in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Its solutions address various types of systems and identities, including data and applications, employee identities, non-employee identities, and machine identities, as well as enable smarter access decisions, improve business processes, and provide deeper understanding of identity and access. The company offers Identity Security Cloud, a SaaS-based cloud solution to manage and secure access to critical data and applications for enterprise identities; and IdentityIQ, a customer-hosted identity security solution. The company was founded in 2005 and is based in Austin, Texas.
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:Sep 09, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 11, 2025
Earnings Call Sentiment Positive
The earnings call highlighted SailPoint's strong financial performance, with significant growth in ARR, new customer acquisitions, and high operating margins. The company is also innovating with new product offerings and strategic acquisitions. However, there were timing issues with federal sector renewals and a slight deceleration in ARR growth, which were noted as challenges.Q2-2026 Updates
Positive Updates
Strong Annual Recurring Revenue (ARR) Growth
SailPoint closed the quarter with $982 million in ARR, representing a 28% year-over-year increase. SaaS ARR grew by 37% year-over-year.
Expansion in Large Accounts
There was a 48% year-over-year increase in customers with ARR greater than $1 million, demonstrating strong engagement from large enterprises.
Record New Logo ARR
Q2 was SailPoint's largest new logo ARR quarter ever, primarily driven by SaaS, with a 30% increase in average ARR per new SaaS customer.
High Operating Margin and Cash Flow
Adjusted operating margins expanded by 980 basis points to 20.4%, and the company generated a record $50 million of cash flow from operating activities.
Product Innovation and Expansion
SailPoint introduced new products like SailPoint Machine Identity Security and announced the acquisition of key assets from Saviynt, expected to enhance SaaS application visibility and identity risk detection.
Negative Updates
Federal Sector Timing Impact
The timing of term contract renewals, especially in the federal sector, shifted $7 million in revenue from Q3 to Q2, affecting the quarterly revenue recognition.
Slight Deceleration in Net New ARR
There was a noted deceleration in net new ARR from Q2 to Q3, attributed to tough comparisons from the previous year.
Company Guidance
During SailPoint's Second Quarter 2026 earnings conference call, the company reported a strong financial performance with several key metrics highlighted. SailPoint achieved an annual recurring revenue (ARR) of $982 million, marking a 28% year-over-year increase, with SaaS ARR growing by 37% year-over-year. The company experienced a significant 48% increase in customers with ARR greater than $1 million, reflecting its ability to manage large-scale enterprise needs. Total revenue for the quarter increased by 33% year-over-year, reaching $264 million, while adjusted operating margins expanded by 980 basis points to 20.4%. SailPoint also generated a record $50 million in cash flow from operating activities. Looking forward, the company raised its guidance for fiscal year 2026, expecting ARR to surpass $1 billion and projecting revenue growth of 22.4% year-over-year. SailPoint aims to maintain its leadership in identity security by focusing on innovation and expanding its capabilities to address emerging challenges, including those related to AI and machine identities.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 2024 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 470.59M | 699.57M | 861.61M | 450.04M | 365.25M | 288.51M |
| Gross Profit | 306.57M | 422.94M | 555.88M | 334.59M | 279.51M | 223.04M |
| EBITDA | 20.51M | -61.65M | 47.27M | -37.59M | 877.00K | -9.43M |
| Net Income | -250.42M | -395.37M | -315.83M | -61.63M | -10.76M | -8.50M |
Balance Sheet | ||||||
| Total Assets | 7.41B | 7.59B | 7.41B | 1.16B | 1.08B | 990.08M |
| Cash, Cash Equivalents and Short-Term Investments | 228.12M | 211.65M | 121.29M | 435.44M | 510.29M | 443.80M |
| Total Debt | 21.52M | 1.59B | 1.05B | 413.99M | 359.75M | 351.04M |
| Total Liabilities | 636.70M | 8.13B | 13.00B | 755.60M | 610.99M | 555.95M |
| Stockholders Equity | 6.78B | -541.20M | -5.59B | 404.24M | 464.61M | 434.13M |
Cash Flow | ||||||
| Free Cash Flow | -88.89M | -254.83M | -119.97M | -12.88M | 53.95M | 43.54M |
| Operating Cash Flow | -83.01M | -250.35M | -106.39M | -8.85M | 57.95M | 50.09M |
| Investing Cash Flow | -16.56M | -12.66M | -28.94M | -74.95M | -3.97M | -38.91M |
| Financing Cash Flow | 258.86M | 50.43M | 41.26M | 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 | 25.66B | -318.76 | -2.67% | ― | 21.90% | 67.81% | |
72 Outperform | 6.38B | -62.17 | -30.14% | ― | 14.29% | -14.42% | |
72 Outperform | 10.87B | 26.89 | 9.50% | ― | 3.98% | -31.18% | |
67 Neutral | 24.20B | -142.21 | -3.94% | ― | 39.45% | -982.51% | |
63 Neutral | 15.87B | 106.12 | 2.49% | ― | 12.68% | 0.00% | |
53 Neutral | $11.75B | ― | -11.15% | ― | 25.99% | -25.47% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
SAIL
SailPoint, Inc.
21.11
-3.44
-14.01%
AKAM
Akamai
75.84
-23.60
-23.73%
VRNS
Varonis Systems
56.96
1.87
3.39%
CYBR
CyberArk Software
480.15
208.92
77.03%
OKTA
Okta
90.00
14.98
19.97%
MDB
MongoDB
315.38
31.52
11.10%
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.