Total Revenue

25.5% " " " "

**Total revenue grew by $57.33 million from $224.67 million in Q1 2025 to $282.00 million in Q1 2026. This increase is primarily driven by a robust 46.5% jump in subscription revenue, which more than offset declines in other revenue streams—a trend consistent with the shift observed in previous periods. " " " " **

Subscription Revenue

46.5% " " " "

**Subscription revenue increased from $124.08 million to $181.73 million—a $57.65 million uplift—fuelled by strong performance in both SaaS and term-based license offerings, reflecting the company’s strategic shift away from traditional perpetual licenses noted in earlier periods. " " " " **

Perpetual License Revenue

-46.6% " " " "

**The drop from $13.736 million to $7.34 million is a continuation of the company’s deliberate move to favor subscription-based models over perpetual licenses, a trend evident in FY 2025 and earlier as customers shifted preferences. " " " " **

Other Services Revenue

31.6% " " " "

**Other Services Revenue climbed from $10.568 million to $13.90 million, up by $3.33 million, likely due to variability in the timing of professional services delivery—a factor that has also influenced performance in previous periods. " " " " **

Geographic – Americas Revenue

23.3% " "

**Revenues in the Americas increased from $138.70 million to $170.93 million, driven by strong regional subscription growth and market penetration that echoes the 22% growth observed in FY 2025. " " **

Geographic – International Revenue

29.3% " "

**International revenue rose from $85.90 million to $111.05 million, a $25.15 million increase, primarily due to robust subscription uptake that helped offset the decline in perpetual license sales—a trend consistent with previous international performance. " " **

Subscription Revenue

Q2 2026

no prior guidance

$174,000,000 to $176,000,000, representing 31% YoY "

no prior guidance

Total Revenue

Q2 2026

no prior guidance

$272,000,000 to $274,000,000, with 17% growth "

no prior guidance

Consolidated Gross Margins

Q2 2026

no prior guidance

81% to 82% "

no prior guidance

Non-GAAP EBIT Margins

Q2 2026

no prior guidance

approximately 20% "

no prior guidance

Total ARR Growth

FY 2026

16% to 17% YoY "

18% YoY "

raised

Subscription ARR Growth

FY 2026

22% to 23% YoY "

24% YoY "

raised

Subscription Revenue

FY 2026

$727 million to $732 million, growing 24% at midpoint "

$753,000,000 to $757,000,000, growing 28% at midpoint "

raised

Total Revenue

FY 2026

$1.13 billion to $1.14 billion, increase of 14% at midpoint "

$1,161,000,000 to $1,165,000,000, increase of 17% at midpoint "

raised

Gross Margins

FY 2026

81% to 82% "

81% to 82% "

no change

Non-GAAP EBIT Margins

FY 2026

approximately 21% "

approximately 20.5% "

lowered

Free Cash Flow

FY 2026

$210 million to $215 million "

$210,000,000 to $215,000,000 "

no change

Acquisition Integration Risks

Previously, discussions in Q3 2025 noted integration challenges with Clumio, Appranix, and modest margin dilution from Cuneo. " " " Q2 2025 focused on integrating Clumio and Appranix without explicit mention of risks, and Q4 2025 did not explicitly address risks for Satori or Cuneo. " " " " "

In Q1 2026, the call focused on integrating the Satori acquisition—newly introduced with planned aggressive integration and modest dilutive effects—and reaffirmed Clumio’s role, while Cuneo was no longer mentioned. " " " "

Shift in focus: New emphasis on Satori while previous concerns (e.g., Cuneo) have faded.

Recurring Revenue and Cross‑Sell Strategy

Across Q2, Q3, and Q4 2025, recurring revenue was robust with strong ARR growth, subscription upswing, steady SaaS net dollar retention (e.g., 127% in Q4 and Q3) and a balanced mix of upsell/cross‑sell. " " " " "

Q1 2026 maintained robust revenue metrics—with subscription ARR growing 33% to $844 million and SaaS net dollar retention at 125%—and highlighted improved multiproduct adoption (cross‑sell mix increased from one‑third to 40%). " " "

Continued strength: Consistent growth with an even more favorable cross‑sell dynamic.

Margin Pressure and Operating Expense Challenges

Q2, Q3, and Q4 2025 discussed margin pressure driven by a higher SaaS mix, acquisition impacts (e.g., Cuneo in Q3) and increased sales costs, with operating expenses rising due to investments; non‑GAAP margins remained within guidance. " " " "

In Q1 2026, margin pressure remained a theme—with gross margins in the low 80% range and operating expenses consistent with prior quarters—but now included explicit mention of Satori causing a modest dilution (approximately 50 basis points). " " "

Steady but evolving: The overall pressure persists with the new acquisition introducing a slight additional dilution.

Platform Expansion and Hybrid/Multicloud Offering

Q2, Q3, and Q4 2025 emphasized expanding the platform via innovations like Cloud Rewind (from Appranix), Cleanroom, and advanced hybrid/multicloud capabilities, leveraging partnerships and consolidating backup systems into a unified “single pane of glass”. " " "

Q1 2026 continued this theme, stressing market‑leading innovation in its cyber resilience platform and using the Satori acquisition to further enhance data and AI security; the hybrid/multicloud offering remained a key differentiator. " " " "

Consistent focus: Ongoing commitment to platform innovation with incremental bolstering through new acquisitions.

Robust ARR Growth and Organic Revenue Acceleration

In Q2, Q3, and Q4 2025, ARR growth was robust (with total ARR growing 18%–21% and consistent organic net new ARR additions) and revenue acceleration was evidenced by strong subscription and term software metrics. " " " " " "

Q1 2026 reported stronger figures, with ARR growing 24% year‑over‑year, subscription ARR up 33%, and a record organic net new ARR addition of $40 million quarter‑over‑quarter. " "

Enhanced momentum: Growth in ARR and organic revenue acceleration continues to be robust and even stronger in Q1 2026.

Customer Retention and SaaS Net Dollar Retention Metrics

In previous periods (Q2, Q3, and Q4 2025), SaaS net dollar retention consistently hovered around 127% with a mix of upsell and cross‑sell (roughly two‑thirds upsell and one‑third cross‑sell) and around 30% of customers adopting multiple products. " " " "

In Q1 2026, retention remained high with a net dollar retention rate of 125% and an accelerated cross‑sell momentum, with multiproduct adoption improving (cross‑sell mix increased from one‑third to 40%). " "

Stable with improvement: Retention metrics are solid, with an improved emphasis on cross‑sell and product expansion.

Macroeconomic Uncertainty and FX Volatility

Q4 2025 discussed macroeconomic uncertainty and FX volatility with caution—monitoring demand trends and adjusting ARR reporting—and Q3 mentioned FX headwinds, while Q2 briefly noted a FX benefit. " " " "

Q1 2026 did not mention either macroeconomic uncertainty or FX volatility at all [N/A].

Faded: The topic has been dropped in Q1 2026.

Cloud Adoption Pace and Sales Cycle Dynamics

Q4 2025 highlighted strong cloud adoption (e.g. nearly 50% QoQ growth in marketplace transactions and emphasis on cloud-first strategies) and stable sales cycle dynamics, while Q2 mentioned cloud trends in the context of resilience; Q3 was less explicit. " " " " "

Q1 2026 did not include any specific discussion on cloud adoption pace or sales cycle dynamics [N/A].

Omitted: Previously discussed in Q4 (and somewhat in Q2) but not mentioned in Q1 2026.