SailPoint, Inc. (SAIL)

Price$18.82Cached quoteAs of 2026-09-05 13:32 UTC

AI: Overvalued

Price checkThe shares look expensive because the valuation assumes years of strong growth and much better cash profits.

Using about 567.2 million shares outstanding, the observed market value is roughly $11.6 billion. Subtracting about $391 million of cash and no debt leaves enterprise value near $11.2 billion. Against management's fiscal 2027 revenue midpoint of about $1.27 billion, that is roughly 8.8 times sales. The same enterprise value is about 46 times guided adjusted operating income, and that adjusted measure excludes major costs such as stock compensation. For a value investor, that leaves too little margin for slower growth or weaker profit conversion.

Big pictureRecurring revenue is growing fast, but management already expects the pace to slow this year.

Revenue rose from about $700 million in fiscal 2024 to $1.07 billion in fiscal 2026, and first-quarter fiscal 2027 revenue grew 22% to $280 million. Annual recurring revenue, the annualized value of active subscription contracts, reached $1.163 billion, up 26%, while cloud subscription recurring revenue rose 36%. That supports durable demand, but management guides full-year revenue growth of only 18% to 19% and second-quarter growth of 17% to 18%. Cash generation is improving, although billing and renewal timing can make individual quarters uneven.

Business strengthDebt is gone and cash is rising, but stock awards still consume a large share of value.

Cash reached about $391 million at April 30 and total debt was zero, a major improvement from more than $1.0 billion of debt before the 2025 initial public offering. Current assets of $823 million exceeded current liabilities of $590 million. The trade-off is dilution: shares outstanding rose about 0.6% during the latest quarter, and stock compensation was about $69 million, roughly one quarter of revenue. Goodwill was $5.15 billion, about two-thirds of assets, so accounting book value provides less hard-asset protection than the large equity balance suggests.

What could change the storyFaster artificial intelligence sales could justify the premium, while slower growth would expose the high valuation.

At Investor Day, management targeted more than $2.1 billion of annual recurring revenue by fiscal 2029, including over $800 million from artificial-intelligence products, plus more than $400 million of free cash flow, meaning cash left after operating and investment spending. Meeting those goals while reducing stock compensation relative to revenue could justify the premium. The bear case is simpler: growth guidance is already slowing, and the June earnings selloff showed sensitivity to weaker expectations. Another clear step-down in recurring growth would make the current sales multiple difficult to defend.

AI: News

First-quarter outlook disappointsStrong subscription growth was overshadowed by slower guidance, showing investors expect more than simple revenue beats.

On June 9, 2026, SailPoint reported first-quarter revenue of $280 million, up 22%, while annual recurring revenue rose 26% to $1.163 billion and cloud subscription recurring revenue rose 36% to $781 million. The company still recorded a $74.7 million reported net loss. Second-quarter revenue guidance implied only 17% to 18% growth. Shares fell more than 11% that day, with financial reporting pointing to slowing forward growth expectations as the main concern despite better-than-expected headline results.

Investor Day raises targetsManagement set ambitious 2029 growth and cash goals, increasing the upside case but also the execution burden.

At its June 16 Investor Day, SailPoint targeted more than $2.1 billion of annual recurring revenue by fiscal 2029, including more than $800 million from artificial-intelligence products. It also targeted an adjusted operating margin above 22% and more than $400 million of free cash flow. Those targets matter because the current valuation requires substantial growth and profit conversion. They provide a measurable bull case, but they are forward-looking goals rather than achieved economics, and stock compensation remains excluded from adjusted operating profit.

Entro acquisition completedSailPoint bought Entro to deepen machine-identity security, expanding a newer growth area beyond human access management.

SailPoint completed the Entro Security acquisition on June 29. Entro adds discovery and protection for machine credentials, including more than 1,200 types of secrets, tokens and certificates across developer and cloud environments. That technology strengthens SailPoint's effort to govern artificial-intelligence agents and other non-human identities alongside employees. Financial terms were not disclosed, which limits investors' ability to judge the return on invested capital. No reliable source isolated a distinct share-price move caused specifically by the closing.

Agentic Fabric becomes availableSailPoint turned its artificial-intelligence security strategy into a broadly available product that can support new sales.

On August 4, SailPoint made Agentic Fabric generally available and combined it with Human Fabric in a unified identity-security offering. The product can discover and govern artificial-intelligence agents, machine accounts and credentials while linking them to human owners. SailPoint's own research says 97% of artificial-intelligence agents access sensitive data while only 21% of organizations are highly confident managing those risks. The investment case improves if these capabilities create meaningful new subscriptions and customer upgrades; an isolated stock reaction was not reliably established.

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Revenue

2022

2024

2025

2026

Net income

2022

2024

2025

2026

Free cash flow

2022

2024

2025

2026

Total cash / debt

CashTotal debt

2023

2024

2025

2026

Financial statements

	2026	2025	2024	2022
Revenue	$1.07B	$861.6M	$699.6M	$450.0M
Gross profit	$690.8M	$555.9M	$422.9M	$334.6M
Gross margin	64.47%	64.52%	60.46%	74.35%
Research & development	$223.0M	$169.7M	$180.8M	$119.5M
Operating expenses	$998.3M	$744.6M	$755.7M	$394.9M
Operating income	−$307.5M	−$188.7M	−$332.7M	−$60.3M
Operating margin	−28.70%	−21.90%	−47.56%	−13.40%
EBITDA	−$96.7M	$48.5M	−$69.1M	−$37.6M
EBITDA margin	−9.03%	5.63%	−9.88%	−8.35%
Net income	−$270.1M	−$315.8M	−$395.4M	−$63.2M
Net profit margin	−25.21%	−36.66%	−56.52%	−14.03%
Basic EPSper basic share	-$0.54	-$12.91	-$12.13	-$0.11
Diluted EPSper diluted share	-$0.54	-$12.91	-$12.13	-$0.11

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈84.60%of listed shares

THOMA BRAVO, L.P.479.84M shares · Jun 30, 2026

View holders

Top 20 reported holders of SAIL
Holder	% owned
THOMA BRAVO, L.P.	≈84.60%479.84M shares
THOMA BRAVO EXECUTIVE FUND XV, L.P. / THOMA BRAVO FUND XV, L.P. / THOMA BRAVO EXECUTIVE FUND XIII, L.P. / THOMA BRAVO FUND XV-A, L.P. / THOMA BRAVO FUND XIII, L.P. / PROJECT HOTEL CALIFORNIA CO-INVEST FUND, L.P. / THOMA BRAVO UGP, LLC / THOMA BRAVO EMPLOYEE FUND, L.P. / THOMA BRAVO CO-INVEST OPPORTUNITIES XV-1, L.P. / THOMA BRAVO FUND XIII-A, L.P.	≈84.60%479.84M shares
NORGES BANK	≈2.30%13.06M shares
McClain Mark D.	≈1.48%8.37M shares
UBS Group AG	≈0.81%4.58M shares
WASATCH ADVISORS LP	≈0.80%4.52M shares
BlackRock, Inc.	≈0.78%4.44M shares
Stephens Investment Management Group LLC	≈0.73%4.15M shares
GW&K Investment Management, LLC	≈0.71%4.02M shares
MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd.	≈0.63%3.6M shares
Driehaus Capital Management LLC	≈0.63%3.57M shares
Point72 Asset Management, L.P.	≈0.59%3.35M shares
Lunate Capital Ltd	≈0.53%3M shares
Keenan Capital, LLC	≈0.50%2.86M shares
VANGUARD CAPITAL MANAGEMENT LLC	≈0.48%2.75M shares
NZS Capital, LLC	≈0.45%2.53M shares
Mills Matt	≈0.43%2.45M shares
Balyasny Asset Management L.P.	≈0.41%2.33M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	≈0.39%2.2M shares
GOLDMAN SACHS GROUP INC	≈0.39%2.19M shares

Percentages use 567.18M shares of this listed class outstanding on Jun 5, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Reported positions exceed 100% in total, so the circle shows the selected holder only.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)84$146.10M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 1, 2026Form 4 · 10b5-1	REZVAN MITRAChief Accounting Officer	SellCommon Stock	7.5K	$20.00	$149.7K	189.5K
Apr 9, 2026Form 4 · 10b5-1	REZVAN MITRAChief Accounting Officer	SellCommon Stock	162	$12.21	$2.0K	197.0K
Apr 9, 2026Form 4 · 10b5-1	REZVAN MITRAChief Accounting Officer	SellCommon Stock	3.3K	$11.42	$37.8K	197.1K
Apr 9, 2026Form 4 · 10b5-1	Gnanasambandam ChandrasekarEVP Product & CTO	SellCommon Stock	939	$12.21	$11.5K	968.9K
Apr 9, 2026Form 4 · 10b5-1	Gnanasambandam ChandrasekarEVP Product & CTO	SellCommon Stock	19.1K	$11.42	$218.6K	969.9K

Review ownership filings at SEC.gov ↗

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SailPoint, Inc. (SAIL)

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