SAIL

SailPoint is a category leader in enterprise identity security, governing employee, non-employee, machine, and AI-agent identities across complex IT environments. The business has the hallmarks of a durable SaaS franchise: revenue grew 24.4% to $1.07B in fiscal 2026 (from $700M in FY2024), subscription revenue is now 94% of the total, gross margin is a robust 64.5%, and the company lands new customers on suite offerings (over 95% of new SaaS customers) with substantial up-sell/cross-sell expansion. Management points to a large greenfield opportunity, estimating over 60% of target-market organizations still rely on fragmented or manual identity processes.

The profitability picture is mixed but improving in the right direction. The company posted a GAAP net loss of $270M and an operating loss of $307M (operating margin -28.7%), but those losses are heavily inflated by purchase-accounting items — depreciation and amortization of $211M and stock-based compensation — stemming from its Thoma Bravo ownership and re-IPO. Crucially, operating cash flow was positive and grew 166.3% to $70.6M, and the loss narrowed from -$395M (FY2024) to -$316M to -$270M. The recap left the balance sheet clean: long-term debt is now zero, equity jumped 222.5% to $6.85B (largely intangibles/goodwill), and liabilities fell to a low 0.11x of equity.