AvePoint lifts annual recurring revenue outlook on strong Q3

AvePoint reported third-quarter 2026 revenue of USD $131.1 million and raised its full-year guidance for annual recurring revenue.

SaaS revenue reached USD $105.5 million in the quarter, up 26% year on year, while total annual recurring revenue increased 27% to USD $495.1 million. On a constant-currency basis, total revenue rose 20% and SaaS revenue 26%.

GAAP operating income increased to USD $11.5 million from USD $8.1 million a year earlier, and GAAP operating margin improved to 8.7% from 7.4%.

GAAP gross profit rose to USD $94.7 million from USD $81.6 million in the same quarter last year, although GAAP gross margin fell to 72.2% from 74.4%.

On a non-GAAP basis, operating income declined to USD $22.0 million from USD $24.1 million, while operating margin fell to 16.8% from 22.0%. Non-GAAP gross profit increased to USD $95.4 million from USD $82.4 million, though gross margin slipped to 72.8% from 75.1%.

The software company ended the quarter with USD $418.3 million in cash, cash equivalents, and short-term investments. For the first nine months of the year, cash from operations totalled USD $71.6 million, up from USD $55.6 million in the prior-year period.

Retention metrics were steady. Dollar-based gross retention was 90% on both a reported and foreign exchange-adjusted basis, while dollar-based net retention was 112% on a reported basis and 111% when adjusted for foreign exchange.

The quarter also included a series of product and corporate developments tied to AI governance and resilience. AvePoint launched Kinetic Classification for continuous AI-driven data classification and Rapid Recovery for priority-based data restoration.

It also announced the AvePoint Trust Platform, extending governance across data, AI agents, models, MCP servers, and AI skills across different platforms. During the quarter, the group was included in the Gartner Magic Quadrant for AI Agent Management Platforms and added to the S&P SmallCap 600 Index.

AvePoint also appointed Ali Rohani as Chief Strategy and Customer Officer, a role intended to strengthen customer value and support growth as clients expand their use of AI.

Updated outlook

For the fourth quarter, AvePoint expects total revenue of between USD $138.4 million and USD $140.4 million, representing year-on-year growth of 22% at the midpoint, including the expected effect of current foreign exchange rates.

Non-GAAP operating income for the fourth quarter is forecast at between USD $24.7 million and USD $25.7 million. For the full year, AvePoint now expects total annual recurring revenue of USD $524.8 million to USD $528.8 million, representing 26% growth at the midpoint.

Full-year revenue is now projected at USD $511.3 million to USD $513.3 million, implying 22% year-on-year growth at the midpoint. Full-year non-GAAP operating income is expected to be between USD $87.5 million and USD $88.5 million.

Chief Executive Officer and Co-Founder Dr Tianyi Jiang pointed to customer demand and cash generation as key features of the quarter.

"Q3 was another strong quarter for AvePoint, as broad-based customer demand drove record net new ARR and an acceleration in total ARR growth for the second straight quarter, as well as further GAAP operating margin expansion," said Dr Tianyi Jiang, Chief Executive Officer and Co-Founder of AvePoint.

He also linked the company's strategy to rising corporate spending on AI oversight and control.

"Our efficient execution and robust cash generation enable us to strategically invest in the largest market opportunity in our company's history: AI trust. As organizations accelerate AI adoption, our platform-neutral approach, deep expertise in data security and governance, and comprehensive agent lifecycle management capabilities provide a distinct competitive advantage. And with the announcement of the AvePoint Trust Platform, we are extending governance beyond data and agents to the models, MCP servers, and AI skills that enterprises are deploying faster than they can govern, across every platform they run on. We are excited for a strong close to 2026," Jiang said.