AvePoint — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the quarter ended September 30, 2026, was $131.1 million, a 19% increase year-over-year from $109.7 million in Q3 2025; on a constant currency basis, growth was 20%.
• SaaS revenue was $105.5 million, up 26% year-over-year from $84.0 million in Q3 2025; on a constant currency basis, growth was 26%.
• GAAP gross profit was $94.7 million with a gross margin of 72.2%, compared to $81.6 million and 74.4% in Q3 2025.
• Non-GAAP gross profit was $95.4 million with a gross margin of 72.8%, compared to $82.4 million and 75.1% in Q3 2025.
• GAAP operating income was $11.5 million with an operating margin of 8.7%, compared to $8.1 million and 7.4% in Q3 2025.
• Non-GAAP operating income was $22.0 million with an operating margin of 16.8%, compared to $24.1 million and 22.0% in Q3 2025.
• Net income for the quarter was $17.9 million, compared to $13.0 million in Q3 2025.
• Cash, cash equivalents, and short-term investments totaled $418.3 million as of September 30, 2026.
• Cash from operations for the nine months ended September 30, 2026, was $71.6 million, up from $55.6 million in the prior year period.
• Current portion of deferred revenue was $197.5 million as of September 30, 2026, compared to $185.7 million as of December 31, 2025.

Guidance and Future Outlook:

• The company raised its full-year guidance for annual recurring revenue (ARR).
• For Q4 2026, total revenue is expected to be $138.4 million to $140.4 million, representing 22% year-over-year growth at the midpoint; constant currency growth is also expected at 22%.
• For Q4 2026, non-GAAP operating income is expected to be $24.7 million to $25.7 million.
• For the full year 2026, total ARR is now expected to be $524.8 million to $528.8 million, representing 26% year-over-year growth at the midpoint; adjusted for FX, growth is expected at 26%.
• For the full year 2026, total revenue is now expected to be $511.3 million to $513.3 million, representing 22% year-over-year growth at the midpoint; constant currency growth is expected at 21%.
• For the full year 2026, non-GAAP operating income is now expected to be $87.5 million to $88.5 million.
• Updated guidance reflects the third quarter's outperformance relative to prior guidance and the current expected impact of foreign exchange rate fluctuations.

Business Segments and Product Lines:

• Annual Recurring Revenue (ARR) as of September 30, 2026, was $495.1 million, up 27% year-over-year; adjusted for FX, ARR grew 25%.
• Dollar-based gross retention rate was 90% on both reported and FX-adjusted bases.
• Dollar-based net retention rate was 112% on a reported basis and 111% when adjusted for FX.
• The company announced "Kinetic Classification," a continuous AI-driven data classification feature.
• The company announced "Rapid Recovery," a priority-based data restoration feature.
• The company launched the AvePoint Trust Platform, which governs agents across their lifecycle, makes data AI-ready, and extends governance to models, MCP servers, and AI skills across every platform.
• The AvePoint Trust Platform includes new AI Governance, Security, and Cost Optimization capabilities and broadens observability to Anthropic Claude and MCP servers.
• AvePoint was included in the 2026 Gartner Magic Quadrant for AI Agent Management Platforms, the first report of its kind in this category.

Market and Competitive Landscape:

• The company describes the AI trust market as the largest market opportunity in its history.
• The company highlights a distinct competitive advantage derived from its platform-neutral approach, deep expertise in data security and governance, and comprehensive agent lifecycle management capabilities.
• Organizations are accelerating AI adoption, deploying models and agents faster than they can govern them.

Risks and Challenges:

• The press release notes that forward-looking statements are subject to risks and uncertainties, including changes in competitive and regulated industries, variations in operating performance across competitors, and changes in laws and regulations.
• Risks include the company's ability to implement business plans, identify and realize additional opportunities, and potential downturns in the market and technology industry.
• Foreign exchange rate fluctuations are noted as a factor impacting financial metrics and guidance.
• The press release references the "Risk Factors" section of the company's most recent Annual Report on Form 10-K for a detailed list of uncertainties.

Management Commentary and Tone:

• CEO Dr. Tianyi Jiang described Q3 as another strong quarter driven by broad-based customer demand, record net new ARR, and an acceleration in total ARR growth for the second straight quarter.
• Management highlighted efficient execution and robust cash generation enabling strategic investment in AI trust.
• The tone is confident, citing a "strong close to 2026" and the extension of governance capabilities to address the rapid deployment of AI by enterprises.

Other Key Points:

• AvePoint was added to the S&P SmallCap 600 Index, which tracks small-capitalization U.S. public companies meeting liquidity and GAAP profitability criteria.
• The company announced the hiring of Ali Rohani as Chief Strategy and Customer Officer to deepen customer value and accelerate growth.
• The company serves more than 28,000 organizations and 6,000 channel partners.
• The press release includes reconciliations of GAAP to non-GAAP financial measures, adjusting for stock-based compensation, amortization of acquired intangible assets, secondary listing costs on the SGX-ST, and the discontinuation of a growth equity fund.
• A quarterly conference call was scheduled for November 05, 2026, at 4:30 pm ET to review results and discuss outlook.