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SailPoint, Inc. (SAIL)
NASDAQ:SAIL
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SailPoint, Inc.
(NASDAQ:SAIL)
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Rating:41Neutral
Price Target:
$13.50
▼(-4.26% Downside)
Action:ReiteratedDate:01/30/26
The score is held down primarily by weak financial quality—ongoing losses, negative cash flow, and a balance sheet showing no stockholders’ equity. Technicals reinforce the risk with a sustained downtrend (price below key moving averages) and negative momentum, while valuation provides limited support because the company is unprofitable and offers no dividend.
Positive Factors
Revenue growth trajectory
SailPoint's multi-year revenue expansion signals sustained demand for identity solutions and effective go-to-market scaling. Growing revenue from $288.5M to $861.6M reflects structural market adoption, larger enterprise deployments, and product penetration that support mid-term top-line durability.
SaaS recurring revenue model
A subscription-based SaaS model creates predictable, recurring revenue and higher customer lifetime value, improving revenue visibility and enabling efficient capacity planning. This model supports durable cash inflows and upsell opportunities tied to identity governance trends across large enterprises.
Robust gross profit margins
Sustained strong gross margins indicate favorable unit economics for the core product, suggesting the company can achieve operating leverage once fixed operating costs are controlled. Robust product margins provide a structural path to profitability as subscription scale increases.
Negative Factors
Persistent net losses
Ongoing net losses and negative EBIT margins show SailPoint has not converted revenue growth into profitability. Persistent operating deficits constrain retained earnings, limit reinvestment flexibility, and raise reliance on external financing to fund growth and R&D over the medium term.
Negative operating and free cash flow
Chronic negative operating and free cash flow reduce financial resilience and increase funding risk. Without positive cash generation, the company may need continued external financing for operations and innovation, which can dilute shareholders or increase leverage, limiting long-term strategic optionality.
Weak balance sheet — no shareholders' equity
A balance sheet showing no shareholders' equity and high liabilities signals material solvency and financing vulnerability. This structural weakness heightens refinancing risk, reduces flexibility for M&A or investment, and makes the company more sensitive to adverse market or industry shocks.
SailPoint, Inc. (SAIL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.92B
Dividend YieldN/A
Average Volume (3M)2.81M
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth23.38%
EPS Growth-30.16%
CountryUS
Employees2,738
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.08
Shares Outstanding561,625,730
10 Day Avg. Volume2,841,627
30 Day Avg. Volume2,809,171
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)-2.15
Price to Sales (P/S)13.96
P/FCF Ratio-100.23
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue7.51
Enterprise Value/Gross Profit11.38
Enterprise Value/Ebitda169.53
Forecast
1Y Price Target
$25.36Price Target Upside79.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)0.32
Revenue Forecast (FY)$1.28B
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 the sale of its software solutions and subscription services. The company employs a SaaS (Software as a Service) model, which allows clients to access their identity management platform via the cloud, leading to recurring revenue streams through annual subscriptions and maintenance fees. Additionally, SailPoint offers professional services, including implementation, training, and support, which contribute to its overall revenue. Key partnerships with major cloud service providers and IT consulting firms enhance its market reach and bolster its sales efforts, further driving growth and profitability.
SailPoint, Inc. Earnings Call Summary
Earnings Call Date:Dec 11, 2025
(Q3-2026)
| % Change Since: |
Next Earnings Date:Mar 18, 2026
Earnings Call Sentiment Positive
The earnings call was predominantly positive, with significant achievements such as surpassing $1 billion in ARR, strong SaaS growth, and high net revenue retention. The introduction of new products and a flex licensing model has been well-received by customers, contributing to increased fiscal year guidance. The only slight downside was the modest beat on ARR, which was smaller than in previous quarters.Q3-2026 Updates
Positive Updates
Surpassing $1 Billion in ARR
SailPoint surpassed $1 billion in annual recurring revenue (ARR) for the first time, reaching $1.04 billion, a 28% year-over-year increase.
Strong SaaS ARR Growth
SaaS ARR grew 38% year-over-year, now comprising $669 million or 64% of total ARR.
Introduction of New Products
SailPoint introduced a suite of new products and a flex licensing model, driving robust cross-sell growth and strong customer interest.
High Net Revenue Retention
Net revenue retention (NRR) was 114%, indicating strong customer expansion and retention.
Record Operating Income and Margin
Adjusted operating income was $56 million, representing a 19.8% margin, exceeding guidance.
Increased Fiscal Year Guidance
ARR guidance for the fiscal year was increased by $12 million to $1.122 billion, with revenue expected to grow 24% year-over-year.
Negative Updates
Modest Beat on ARR
Despite strong overall performance, the quarter saw a modest 1% beat on ARR, which was smaller than previous quarters' beats.
Company Guidance
During SailPoint's fiscal Q3 2026 earnings call, the company provided robust guidance, reflecting strong performance and strategic positioning in the identity security market. They surpassed $1 billion in annual recurring revenue (ARR), achieving $1.04 billion, a 28% year-over-year increase. SaaS ARR grew by 38% to $669 million, making up 64% of total ARR. The company projected fiscal Q4 2026 ARR to increase by $12 million to $1.122 billion, with a 28% year-over-year growth, and revenue of $292 million, a 22% increase. For the full fiscal year 2026, they forecasted revenue of $1.069 billion, a 24% year-over-year increase, with an adjusted operating margin of 18% and an adjusted EPS of $0.23. They also highlighted the success of their new flex licensing model and the strong adoption of new product offerings, contributing to a net revenue retention rate of 114% and driving continued growth in their pipeline.SailPoint, Inc. Financial Statement Overview
Summary
Revenue growth is strong, but persistent net losses and negative operating/free cash flow are major weaknesses. The balance sheet is high-risk with no stockholders’ equity reported in recent years, indicating weakened financial stability.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 | Jan 2025 | Jan 2024 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.02B | 861.61M | 699.57M | 450.04M | 365.25M | 288.51M |
| Gross Profit | 671.42M | 555.88M | 422.94M | 334.59M | 279.51M | 223.04M |
| EBITDA | 45.07M | 47.27M | -61.65M | -37.59M | 21.22M | -9.43M |
| Net Income | -296.95M | -315.83M | -395.37M | -61.63M | -10.76M | -8.50M |
Balance Sheet | ||||||
| Total Assets | 7.47B | 7.41B | 7.59B | 1.16B | 1.08B | 990.08M |
| Cash, Cash Equivalents and Short-Term Investments | 298.11M | 121.29M | 211.65M | 435.44M | 510.29M | 443.80M |
| Total Debt | 19.25M | 1.05B | 1.59B | 413.99M | 359.75M | 351.04M |
| Total Liabilities | 645.22M | 13.00B | 8.13B | 755.60M | 610.99M | 555.95M |
| Stockholders Equity | 6.83B | -5.59B | -541.20M | 404.24M | 464.61M | 434.13M |
Cash Flow | ||||||
| Free Cash Flow | 6.11M | -119.97M | -254.83M | -12.88M | 53.95M | 43.54M |
| Operating Cash Flow | 20.51M | -106.39M | -250.35M | -8.85M | 57.95M | 50.09M |
| Investing Cash Flow | -41.33M | -28.94M | -12.66M | -74.95M | -3.97M | -38.91M |
| Financing Cash Flow | 250.18M | 41.26M | 50.43M | 1.47M | 12.55M | 361.70M |
SailPoint, Inc. Technical Analysis
Negative
14.10
Price Trends
21.22
Negative
20.91
Negative
Market Momentum
-0.85
Positive
38.83
Neutral
45.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAIL, the sentiment is Negative. The current price of 14.1 is below the 20-day moving average (MA) of 19.42, below the 50-day MA of 21.22, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -0.85 indicates Positive momentum. The RSI at 38.83 is Neutral, neither overbought nor oversold. The STOCH value of 45.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SAIL.
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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $26.73B | -372.41 | -3.23% | ― | 20.93% | 68.47% | |
62 Neutral | $14.26B | 31.99 | 9.17% | ― | 4.21% | -0.63% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $12.85B | 66.56 | 2.96% | ― | 12.12% | ― | |
54 Neutral | $2.71B | -20.38 | -24.53% | ― | 11.37% | -34.44% | |
41 Neutral | $7.92B | -12.46 | -10.58% | ― | 23.38% | -30.16% |
* Technology Sector Average
SAIL
SailPoint, Inc.
14.10
-9.47
-40.18%
AKAM
Akamai
98.39
17.39
21.47%
VRNS
Varonis Systems
23.10
-18.49
-44.46%
OKTA
Okta
72.50
-14.66
-16.82%
MDB
MongoDB
328.47
69.45
26.81%
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.