AvePoint (AVPT) Q1 2026 earnings summary

Executive summary

• Q1 2026 total revenue reached $117.2 million, up 26% year-over-year, with SaaS revenue up 35% to $93.4 million and ARR rising 26% to $435.2 million.

• Net income for Q1 was $15.3 million, up from $3.6 million in Q1 2025, with diluted EPS of $0.07.

• Marked the 12th consecutive quarter of double-digit organic net new ARR growth and significant GAAP operating margin expansion.

• Major product upgrades and the launch of AgentPulse Command Center enhanced AI agent governance and data protection.

• Customer wins in regulated industries and expansion within existing accounts highlight strategic value.

Financial highlights

• Gross profit was $86.1 million (73.4% margin), with non-GAAP operating income at $20.5 million (17.5% margin); GAAP operating income was $12.7 million (10.9% margin).

• Q1 operating cash flow was $24.3 million (21% margin); free cash flow was $23 million (20% margin).

• Cash and cash equivalents stood at $444.1 million as of March 31, 2026, with no outstanding debt.

• Services revenues increased 33% to $14.5 million, with recurring revenues comprising 88% of Q1 total.

• Rule of 40 (ARR growth + non-GAAP operating margin) at 43 for Q1; traditional Rule of 40 (revenue growth + free cash flow margin) at 51.

Outlook and guidance

• Raised full-year ARR guidance to $523.4–$529.4 million (26% growth at midpoint), factoring in FX headwinds.

• Full-year revenue guidance set at $509.4–$515.4 million (22% growth at midpoint), with non-GAAP operating income expected at $91.5–$94.5 million.

• Q2 2026 revenue expected at $120.3–$122.3 million (19% growth at midpoint); non-GAAP operating income of $18.7–$19.7 million.

• Free cash flow for 2026 projected to exceed $100 million.

• Management expects continued SaaS and ARR growth, supported by strong demand and cloud expansion.