SailPoint Inc Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Saket Kalia - Barclays - Analyst : Okay, great. Hey, guys, thanks for taking my question here and congrats on your first quarter as a public company.

Question: Saket Kalia - Barclays - Analyst : Absolutely, Mark, maybe for you, maybe just picking up on that thread, but even more specific, can we just talk a little bit about your US federal business? Obviously, very topical right now, but maybe remind us how big that business is just for everybody's benefit. And maybe how you're thinking about that next year given some of the moving pieces with the new administration.

Question: Saket Kalia - Barclays - Analyst : Got it. Super helpful, guys. Thank you very much.

Question: Joel Fishbein - Truist - Analyst : Thanks for taking the question. Hey, Mark, I love the commentary about the machine and non-human identities, and the momentum you're seeing there. Wanted to just see if there's any way for you to quantify that maybe for Brian just as a follow up. How is how is that being priced? And love to get any color there. Thank you.

Question: Joel Fishbein - Truist - Analyst : Great. Thank you.

Question: Matt Hedberg - RBC - Analyst : Great, thanks for taking my question, guys, and I'll offer my congrats again. It's great to have you guys back in the public markets. Maybe for Mark. A question that you all get and we get, obviously, is the identity consolidation opportunity. I'm wondering, you in your prepared to march, Mark, you talked about IGA being one of the most complex areas of identity. Could you talk about the strategic opportunity as customers look to consolidate identity. Is that something that you expect to see at the high end of the market. And then maybe just, kind of, from a competitive standpoint, CyberArk remains a very good partner of you, guys. They have just acquired an IGA vendor as well. Just kind of talk about that, how you think about that holistically. Thanks a lot, Mark.

Question: Matt Hedberg - RBC - Analyst : Great color. Thanks, guys.

Question: Brian Essex - JPMorgan - Analyst : Great, good morning and, Mark, congrats on the launch and welcome back to the public markets. Great to see you. Good set of results. I guess for my question, maybe for Brian. I know in the last days of the quarter just before you guys launched your roadshow, when you flash the numbers, you had an unexpected number of customers pull the trigger on term as opposed to SaaS. We'd love to get a sense from you, what you're seeing with regard to mix so far this quarter. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 26, 2025 / 12:30PM, SAIL.OQ - Q4 2025 SailPoint Inc Earnings Call And how should we think about both the level of revenue generation when a customer decides to go one versus the other and how you see this kind of playing out longer term with regard to migrations from maintenance off the platform. Thank you.

Question: Brian Essex - JPMorgan - Analyst : Super helpful. Thank you.

Question: Peter Levine - Evercore - Analyst : Great, thank you for taking my question, and I'll echo the congrats, the launch, and welcome back to the public markets. Maybe to piggyback off of a prior question. It does seem like AI agents seem to be the next identity gold rush. So when you're thinking, maybe for you, Mark, is when you're thinking about which sub segment of the identity tech stack, like what's, who stands to kind of be best positioned to monetize like the rise of identities. Meaning, why do you think SailPoint with IGA over privileged access or even identity access management. Maybe just tell us, how are customers thinking about governance versus privileged access? Clearly both are important but is one take more of a priority over the other as agents or customers are kind of just ramping up on these AI agent workflows. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 26, 2025 / 12:30PM, SAIL.OQ - Q4 2025 SailPoint Inc Earnings Call

Question: Peter Levine - Evercore - Analyst : Great. Thank you for the color, Mark.

Question: Tal Liani - Bank of America - Analyst : How are you? This is Tal Liani. Sorry, my code didn't work, so I use Madeline. The question I have is about platform for identity. What we see in other parts of cybersecurity is that things are consolidating around certain platforms end points, network security, etc. And the question is whether identity could also be a platform on its own rather than being embedded into solutions of other companies. And the question here is, how does, two things, how does SaaS model change the answer? And second is, when you go to things like machine identity and agent identity. Is there any benefit to you being the IGA or being the identity vendor? Is there any benefit to you that you will provide the other parts of identity or are they these completely independent decisions by the customers? Thanks.

Question: Tal Liani - Bank of America - Analyst : Thank you.

Question: Gabriela Borges - Goldman Sachs - Analyst : Hey, good morning. Thank you. Mark and Brian, I wanted to revisit your module strategy. I know you mentioned a couple of modules earlier on the call that you released in October. You already gave us the detail on the machine identity piece. Just to remind us, how many modules do you have right now? How do you think about penetration and across all of those modules specifically, and are there one or two that you're particularly excited about that could move the needle from an ARR standpoint? Thank you.

Question: Gabriela Borges - Goldman Sachs - Analyst : Makes sense, thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 26, 2025 / 12:30PM, SAIL.OQ - Q4 2025 SailPoint Inc Earnings Call

Question: Keith Weiss - Morgan Stanley - Analyst : Excellent, thank you guys for taking the question and congratulations on a really strong fiscal year overall. I wanted to dig into some of the trends that were particularly strong in the year and kind of get your view on durability going forward. And the two in particular is one that million-dollar-plus customer account or million-dollar-ARR customer account of 78%, super impressive figure. Can you talk to us a little bit about kind of what's driving those larger customers? Is it migration or is it product expansion? And how durable could that type of growth be going forward? And then on the other side of the equation, you get a very strong margin expansion in FY25. The initial guide is a little bit more tempered into FY26. How much of that is tactical, if you will, in terms of IPO costs and shorter-term things? How much of that is strategic in terms of investing behind some of these newer opportunities like machine identity and agentic. Give us a sense of kind of margin trajectory further along in our models.

Question: Keith Weiss - Morgan Stanley - Analyst : You were helpful, thank you.

Question: Anik Bamanon - Jefferies - Analyst : Hi guys, this is [Anik Bamanon] for Joseph Gallo. Congrats on the first quarter as a public company. There remains a large maintenance install base out there using legacy IGA solutions. Can you just talk us through the new logo side of your business and what some of the drivers are for you to unlock that market opportunity specifically? Thank you.

Question: Gregg Moskowitz - Mizuho - Analyst : Okay, thank you for taking the question, and I have a bit of a follow up to Tal's question. Mark, we're certainly seeing more convergence in identity security, and it's been impressive as well just to see how much SailPoint's product portfolio has broadened over the last few years. But when you look out to the next three to five years, how much more will this space evolve? And from a customer standpoint, will most enterprises have just one or maybe two identity providers by that time? How do you foresee this developing? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 26, 2025 / 12:30PM, SAIL.OQ - Q4 2025 SailPoint Inc Earnings Call

Question: Gregg Moskowitz - Mizuho - Analyst : Very helpful. Thanks, Mark.

Question: Shaul Eyal - TD Cowen - Analyst : Thank you. Good morning, everyone. Let me echo my congrats as well. Brian or Mark, I know the macro has been already discussed during the early part of the call, but can you talk to us about the geographic mix and related performance this quarter? Any specific European country that leading, lagging the last quarter, and in the current quarter. Thank you.

Question: Shaul Eyal - TD Cowen - Analyst : Many thanks.

Question: Gray Powell - BTIG - Analyst : Okay, great, thanks. Yeah, I think a lot of the good questions have been asked and answered already, but I guess maybe a simple one on my side. So I fully understand how the SaaS and the term mix impacts reported revenue and operating margins. Are there any pointers you can give on the free cash flow side, particularly with the debt pay down and I think you said Q1 and just the potential for free cash flow to further scale.

Question: Gray Powell - BTIG - Analyst : Okay, great.

Question: Gray Powell - BTIG - Analyst : Perfect, understood. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 26, 2025 / 12:30PM, SAIL.OQ - Q4 2025 SailPoint Inc Earnings Call