Summary
AvePoint's first quarter fiscal 2026 total revenue was $117.2 million, up 26.0% from the prior-year quarter. Gross profit was $85.4 million, up 23.4%. Gross margin slipped to 72.8%, down 1.5 percentage points. Operating income was $12.7 million, up 287.2%, and operating margin was 10.9%, up 7.3 percentage points. Net income was $15.25 million, up 343.3%. Diluted EPS was $0.07, up 250.0%.
Operating cash flow was $24.26 million, up 4,801.0% from the prior-year quarter. Capital expenditures were $1.28 million, down 15.7%. Deferred revenue was $203.59 million, up 26.8%. Remaining performance obligations were $542.50 million, up 33.9%. Total ARR was $435.2 million, up 26% year over year and 23% adjusted for FX. Dollar-based gross retention was 89% on reported and FX-adjusted bases. Dollar-based net retention was 111% reported and 110% FX-adjusted.
Non-GAAP operating income was $20.5 million, compared with $13.4 million, and non-GAAP operating margin was 17.5%, compared with 14.4%. Non-GAAP gross profit was $86.1 million, compared with $69.8 million, while non-GAAP gross margin was 73.4%, compared with 75.0%. The company announced general availability of AgentPulse Command Center, which monitors and governs AI agents across Microsoft 365 and Google Cloud environments. It also announced upgrades to the AvePoint Confidence Platform, adding agentic AI governance and rapid multicloud recovery. Management renewed the share repurchase program for three years, with authority to buy up to $150.0 million of common stock. AvePoint said the quarter marked its twelfth straight period of double-digit growth in organic net new ARR. The company serves more than 28,000 customers, works with approximately 6,000 MSPs, VARs, and SIs, and offers solutions in over 100 cloud marketplaces.
For the second quarter of 2026, AvePoint guides to year-over-year total revenue growth of 19% at the midpoint, or 18% on a constant currency basis, plus non-GAAP operating income of $18.7 million to $19.7 million. For the full year 2026, the company now expects total ARR of $523.4 million to $529.4 million, with year-over-year growth of 26% at the midpoint and 26% adjusted for FX. Full-year revenue growth is guided to 22% at the midpoint, or 20% on a constant currency basis, with non-GAAP operating income of $91.5 million to $94.5 million. The company said the current expected foreign exchange headwind more than offset the raise in ARR guidance.
The market for software and cloud-based services is dynamic and highly competitive. Competitors are developing new software and deploying competing cloud services. Customer preferences evolve rapidly, and choices in hardware, products, and devices can influence cloud service adoption. Macroeconomic and geopolitical conditions remain unpredictable and could affect global trade, currency exchange rates, regional economies, and the global economy. International operations provide a significant portion of total revenue and expenses, and many are denominated in currencies other than the U.S. dollar, so foreign exchange changes may significantly affect revenue and expenses. Seasonality matters: historically the first quarter is the lowest revenue quarter and the fourth quarter is the highest. The company also faces a valuation allowance risk; if deferred tax assets are not realized, it may record income tax expense. AvePoint depends on attracting and retaining qualified employees. Investments in infrastructure, research and development, marketing, and geographic expansion will continue to increase operating costs and may decrease operating margins.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2026 | Q4 FY2025 | QoQ | Q1 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $117.2M | $114.7M | +2.2% | $93.1M | +26.0% |
| Gross profit | $85.4M | $84.4M | +1.1% | $69.2M | +23.4% |
| Gross margin | 72.8% | 73.6% | -0.8 pp | 74.3% | -1.5 pp |
| Research & development | $13.8M | $13.0M | +5.8% | $12.7M | +8.4% |
| Sales & marketing | $42.0M | $38.1M | +10.2% | $34.5M | +21.7% |
| General & administrative | $16.9M | $18.7M | -10.0% | $18.7M | -9.6% |
| Total operating expenses | $72.6M | $69.9M | +3.9% | $65.9M | +10.3% |
| Operating income (loss) | $12.7M | $14.5M | -12.4% | $3.3M | +287.2% |
| Operating margin | 10.9% | 12.7% | -1.8 pp | 3.5% | +7.3 pp |
| Net income (loss) | $15.3M | $15.6M | -2.5% | $3.6M | +327.7% |
| Net margin | 13.0% | 13.6% | -0.6 pp | 3.8% | +9.2 pp |
| Diluted EPS | $0.07 | $0.07 | ±$0.00 | $0.02 | +$0.05 |
| Net retention rate | 111.0% | — | — | 111.0% | ±0.0 pp |
Risks
Demand for AvePoint's software and services is correlated to global macroeconomic and geopolitical factors that management says remain dynamic and unpredictable, which could materially adversely affect global trade, currency exchange rates and regional economies, and in turn increase costs or reduce sales and earnings.
A significant portion of revenue and expenses is denominated in currencies other than the U.S. dollar, and reported growth materially exceeded constant currency growth for the first quarter of FY2026: total revenue rose 26% year over year versus 20% on a constant currency basis, and EMEA revenue rose 30.4% versus 18.2% on a constant currency basis.
Gross margin declined 1.5 percentage points to 72.8% for the first quarter of FY2026 from 74.3% in the prior-year quarter, as total cost of revenue rose 33.4% to $31.9 million on higher hosting and personnel costs, while services revenue that carries lower margin grew 33.0%.
SaaS revenue grew 35.5% to $93.4 million and reached 80% of total revenue in the first quarter of FY2026, partly offset by an expected 29.3% decline in term license and support revenue to $9.3 million, and services revenue of $14.5 million is described as not inherently recurring and subject to more period-to-period volatility.
Management describes markets for software and cloud-based services as dynamic and highly competitive, with competitors developing new software and competing cloud services, and notes that AI can amplify poor data hygiene through sensitive data exposure, compliance failures and operational disruption, which shapes demand for the AgentPulse Command Center and shadow AI governance offerings.
AvePoint states its success is highly dependent on attracting and retaining qualified employees and that it competes globally for talent on compensation, benefits and career growth, with sales and marketing personnel costs up $6.3 million and total personnel costs up $3.4 million within cost of revenue in the first quarter of FY2026.
The company cautions that quarterly revenue fluctuates and that historically the first quarter has been its lowest revenue quarter and the fourth quarter its highest, while the timing of new product introductions and revenue mix can cause further fluctuation.
AvePoint is subject to income taxes in the U.S. and numerous foreign jurisdictions where tax laws and interpretations may change, and it recorded income tax effects related to the OBBBA enacted on July 4, 2025, with certain provisions effective through 2027; the effective tax rate was 7.8% in the first quarter of FY2026 versus 26.8% in the prior-year quarter.
The $30.0 million HSBC revolving line of credit, with a $20.0 million accordion, matures on November 3, 2026 and is secured by a pledge of all subsidiary shares, future proceeds and certain assets, with minimum fixed charge coverage and maximum total leverage covenants tested quarterly; no borrowings were outstanding as of March 31, 2026.
SaaS KPIs
All quarters →Non-GAAP operating margin
Total ARR
Dollar-based net retention rate
Total customers
Dollar-based gross retention rate
Summary, forecast, risks and KPIs are extracted from AvePoint, Inc.'s SEC filings for Q1 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.