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    AVPT
    Earnings call· Jun 2026(Q2 FY26)

    AvePoint Q2 FY26 earnings call AVPT

    Aug 6, 2026 Source

    Executive summary

    AvePoint Q2 FY26 — Strong Performance Driven by AI Trust Layer Demand

    AvePoint delivered a strong Q2 FY26, outperforming guidance across key metrics, driven by robust demand for its AI trust layer solutions like AgentPulse. The company is strategically increasing investments in technology and go-to-market to capitalize on the rapidly expanding AI market opportunity, despite facing incremental FX headwinds.

    Highlights

    5

    • Total revenue grew 22% year-over-year to $124.5 million, outperforming guidance.

    • Total ARR grew 27% year-over-year to $465.1 million, accelerating from Q1.

    • Net new ARR was a record $29.9 million, representing 35% year-over-year growth.

    • Customers with ARR over $100,000 grew 26%, the highest growth for this metric in over 3 years.

    • GAAP operating margins expanded nearly 130 basis points year-over-year to 8.2% in Q2.

    Concerns

    3

    • Incremental FX headwinds of $2.4 million for Q3 revenue and $5.6 million for full-year revenue.

    • Year-over-year decline in gross profit margin to 73.7% from 74.8% due to lower services gross margins.

    • Full-year non-GAAP operating income guidance includes a $1.9 million FX headwind and increased investments.

    Guidance & targets

    5
    CategoryTargetConfidence
    Total Revenues
    $128.2 million to $130.2 million
    high materiality
    High
    Non-GAAP Operating Income
    $21 million to $22 million
    medium materiality
    High
    Total ARR
    $522.1 million to $528.1 million
    high materiality
    High
    Total Revenues
    $508.5 million to $512.5 million
    high materiality
    High
    Non-GAAP Operating Income
    $86.4 million to $88.4 million
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    North America
    Total revenue growth accelerated to 23% year-over-year, driven by SaaS revenue growth.
    SaaS revenue growth: 27%
    		—23%——
    EMEA
    Total revenue growth was 27% year-over-year, driven by SaaS revenue growth. On a constant currency basis, total revenue growth accelerated to 24%.
    SaaS revenue growth: 28% (26% constant currency)Total revenue growth (constant currency): 24%
    		—27%——
    APAC
    Total revenues grew 16% year-over-year, driven by SaaS revenue growth. The APAC business achieved the milestone of over $100 million in ARR in Q2.
    SaaS revenue growth: 27% (27% constant currency)ARR: >$100 million
    		—16%——

    Operational metrics

    19
    Total Revenues
    $124.5M22% YoY growth
    Q2 FY26

    Above the high end of guidance.

    SaaS Revenues
    $98.5M27% YoY growth
    Q2 FY26
    Services Revenue
    $15.7M
    Q2 FY26

    Compared to 14% a year ago.

    Gross Profit Margin
    73.7%vs 74.8% YoY
    Q2 FY26

    Year-over-year decline due to lower services gross margins.

    Software Gross Margin
    83%in line with prior quarter and prior year
    Q2 FY26
    Operating Expenses
    $71.5M
    Q2 FY26

    Compared to 56% of revenues a year ago, reflecting planned increased investments.

    Non-GAAP Operating Income
    $20.3M
    Q2 FY26

    Above the high end of guidance.

    Stock-based Compensation
    8%vs 11% YoY
    Q2 FY26
    GAAP Operating Margins
    8.2%expanded nearly 130 bps YoY
    Q2 FY26

    Eighth straight quarter of GAAP operating profitability.

    Cash and Investments Balance
    $417.3M
    Q2 FY26

    Cash and cash equivalents at quarter end.

    Share Repurchases
    $50M
    Q2 FY26

    Pace largely continued from Q1.

    Share Repurchases
    $121.5Mnearly 9x as many shares as H1 FY25
    YTD FY26

    Total spent this year on share repurchases.

    Remaining Share Repurchase Program
    $108.6M
    Q2 FY26
    Channel Contribution to Total ARR
    59%vs 56% YoY
    Q2 FY26
    Incremental ARR from Channel
    2/3
    Q2 FY26
    Migration Products Headwind to GRR
    2 points
    Q2 FY26

    Given their naturally lower retention rates.

    Average AgentPulse Customer Agents
    >5,000doubling every 3 months
    Q2 FY26

    Number of AI agents managed by an average AgentPulse customer.

    MSP Partners (North America)
    ~2,000
    Q2 FY26

    Out of an ecosystem of about 20,000 MSP partners in North America.

    SMB Market Segment Potential
    30-40%
    next few years

    Management's estimate for the SMB market segment's contribution to recurring revenue.

    Industry KPIs

    10
    MetricValueDetails
    Revenue growth$124.5MUSD
    Arr net new arr$465.1MUSD
    Bookings billings$29.9MUSD
    Pricing model mixper user
    Customer account count911customers
    Large deal new logo metrics30%%
    Gross retention renewal rate89%%
    Operating FCF margin rule of 4045score
    Ai product adoption monetization>5,000agents
    Net revenue net dollar retention110%%

    Orderbook & backlog

    2
    Total ARR$465.1MQ2 FY26

    27% YoY growth

    24% YoY growth after adjusting for FX; acceleration from Q1

    Net New ARR$29.9MQ2 FY26

    35% YoY growth

    Record net new ARR, meaningful acceleration from last quarter

    Product announcements

    3
    ProductTypeDetails
    AgentPulselaunch
    AgentPulse (Stand-alone)launch
    Kinetic Classification and Rapid Recovery Intelligencelaunch

    Deals & partnerships

    5
    Largest American retail corporationExpansion of existing relationship with AgentPulse adoption

    Long-time AvePoint customer chose AgentPulse (Control Plus bundle) to govern over 10,000 AI agents, deepening relationship across governance, security, and resilience.

    Largest dental insurance provider in the United StatesExpansion of existing relationship with AgentPulse adoption

    Existing customer transitioned from a la carte licensing to Control Plus bundle for AgentPulse, based on more actionable governance and lower costs, extending trusted governance into AI ecosystem management.

    Canadian consumer lenderNew customer for Salesforce data protection

    New AvePoint customer chose the company for critical Salesforce data protection after a successful proof of concept, with new opportunities to expand into Microsoft 365 protection and broader governance.

    Canadian financial services companyNew customer for Copilot deployment visibility and oversight

    New AvePoint customer whose CISO paused Copilot deployment until sensitive information concerns were addressed. AvePoint provided visibility and oversight, removing a key barrier to AI deployment, and the customer is now evaluating Resilience suite capabilities.

    World's largest bankUpsell for governance and records management7-figure

    Long-standing customer signed a 7-figure upsell deal to address strict legal requirements for record management and data protection ahead of a multi-petabyte modernization effort, extending Control Suite capabilities to on-prem and cloud data.

    Risks & headwinds

    5
    FX HeadwindsQ3 FY26 and Full Year FY26

    $2.4 million for Q3 revenue, $5.6 million for full-year revenue, $2 million for full-year ARR

    Mitigation: Company adjusts guidance to reflect expected impact; constant currency growth remains strong.

    Lower Services Gross MarginsQ2 FY26

    Contributed to overall gross profit margin decline to 73.7% from 74.8% YoY

    Mitigation: Software gross margins remained strong at 83%, in line with prior periods.

    Shadow AI and AI Security IncidentsPast year

    88% of organizations reported at least one security incident tied to agents in the past year; nearly 20% don't know if employees use unsanctioned tools.

    Mitigation: AvePoint's AgentPulse and Control Suite provide unified visibility, governance, and cost control to address shadow AI and security risks.

    AI Adoption Delays due to Lack of Trust

    Nearly 90% of organizations delayed AI deployments by an average of 6 months.

    Mitigation: AvePoint positions itself as the 'unifying trust layer for AI' to enable confident and secure AI deployment at scale.

    AI Consumption CostsCurrent

    AI consumption costs are going through the roof; many customers' budgets blown with token consumption.

    Mitigation: AgentPulse helps customers gain visibility into the true economics of their AI investments and manage costs.

    What to watch in Q3 FY26

    5

    Net new ARR growth

    Next quarter
    Current$29.9M (35% YoY growth)
    TargetContinued acceleration

    Why it matters

    Indicates continued demand and successful monetization of AI solutions.

    As a result, net new ARR in Q2 was a record $29.9 million, representing growth of 35% year-over-year and a meaningful acceleration from last quarter.

    Q&A highlights

    8

    How much of the pipeline uplift is directly attributable to AgentPulse, and how is stand-alone adoption versus bundle adoption progressing?

    TJ stated that AgentPulse deals are 2x to 3x larger in dollar value, and customers are managing over 5,000 AI agents on average, with that number doubling every quarter. Jim added that it's still early, with most demand in the pipeline, and the stand-alone SKU was just launched in July.

    “the average with the AgentPulse in the dollar value of those deals are 2x to 3x larger. And also, given the latest data, we also see that on average, an AgentPulse customer are managing well over 5,000 agents, AI agents. And what's remarkable is that the number of those agents are growing, doubling every quarter, every 3 months.”

    asked by Shrenik Kothari · answered by Tianyi Jiang

    2 min read6 chapters

    Detailed Narrative

    01

    AgentPulse Launch and Market Opportunity

    AvePoint launched AgentPulse as part of its Control Suite in Q1 and as a standalone product in early July, providing unified visibility, governance, and cost control for AI agents. Gartner projects the agent management platform category to exceed $15 billion by 2029, with Fortune 500 companies managing 150,000 agents, positioning AvePoint as a critical trust layer for AI. The company also announced new kinetic classification and rapid recovery intelligence capabilities at Black Hat.

    02

    AI-Driven Customer Demand and Growth

    The company is seeing broad-based demand from new and existing customers, with AgentPulse deals being 2x to 3x larger in dollar value. On average, an AgentPulse customer manages over 5,000 AI agents, with this number doubling every quarter, highlighting the rapid proliferation of AI agents and the urgent need for governance and cost control. This demand is translating into record net new ARR and strong growth in larger customer cohorts.

    03

    Strategic Investments for Future Growth

    AvePoint is increasing investments in technology to accelerate R&D transformation and in go-to-market motions, including sales capacity, partner enablement, and brand awareness. These investments are aimed at capitalizing on the significant market opportunity and driving sustained growth in 2027 and beyond, rather than immediate quarterly impact. Management believes these investments will lead to greater efficiencies and increased top-line growth over time⏳.

    04

    Channel and MSP Business Expansion

    The channel contributed 59% of total ARR, up from 56% a year ago, with two-thirds of incremental ARR in Q2 coming through the channel. The MSP segment continues to be one of AvePoint's fastest-growing areas, adding a record number of net new SMB logos in Q2. The company sees potential for the SMB market segment to grow to 30-40% of its recurring revenue in the next few years, with significant greenfield opportunities among MSP partners.

    05

    GAAP Profitability and Rule of 40 Achievement

    AvePoint achieved its eighth straight quarter of GAAP operating profitability, with GAAP operating margins expanding nearly 130 basis points year-over-year to 8.2% in Q2, and reaching 10% on a trailing 12-month basis. The company reported a Rule of 45 (ARR growth + non-GAAP operating margin) and Rule of 47 (revenue growth + FCF margin) on a trailing 12-month basis, demonstrating its commitment to profitable growth well ahead of schedule.

    06

    Accelerated Share Repurchase Program

    The company continued its accelerated share repurchase program, spending approximately $50 million to repurchase 4.9 million shares in Q2. Year-to-date, $121.5 million has been spent on share repurchases, with $108.6 million remaining in the program. These actions reflect management's belief in the underlying strength of the business and its commitment to driving shareholder value, effectively offsetting dilution from employee incentive programs.

    AI-generated summary of the company’s earnings call. Not investment advice.