AvePoint lifts annual recurring revenue guidance after Q2

AvePoint reported second-quarter 2026 results showing total revenue of USD $124.5 million and raised its full-year annual recurring revenue guidance.

SaaS revenue reached USD $98.5 million, up 27% from a year earlier, while total revenue increased 22%. Annual recurring revenue was USD $465.1 million at the end of the period, also up 27%, or 24% adjusted for foreign exchange.

GAAP gross profit rose to USD $91.0 million from USD $75.5 million a year earlier, though GAAP gross margin slipped to 73.1% from 74.0%. Non-GAAP gross profit increased to USD $91.7 million from USD $76.3 million, while non-GAAP gross margin declined to 73.7% from 74.8%.

GAAP operating income increased to USD $10.2 million from USD $7.1 million, lifting GAAP operating margin to 8.2% from 7.0%. Non-GAAP operating income rose to USD $20.3 million from USD $18.8 million, though non-GAAP operating margin fell to 16.3% from 18.4%.

Cash and cash equivalents totalled USD $417.3 million at the end of June. In the first six months of the year, cash generated from operations was USD $40.2 million, nearly double the USD $20.8 million reported a year earlier.

Retention metrics were mixed but remained above the level needed to support expansion. Dollar-based gross retention was 89% on both a reported and foreign-exchange-adjusted basis. Dollar-based net retention was 111% as reported and 110% adjusted for foreign exchange.

Chief Executive Officer and Co-Founder Dr Tianyi Jiang said the quarter reflected demand from organisations seeking controls around artificial intelligence deployments.

"Our excellent second quarter results reflect the growing demand for trusted AI, as we accelerated topline growth, outperformed all guided metrics, and delivered record net new ARR," Jiang said.

"As organizations rapidly integrate and rely on agentic AI, their need for visibility, governance, and security - for trust in this technology - has only intensified. Because trust is the foundational layer of enterprise AI, AvePoint is uniquely positioned to help organizations deploy intelligent systems with confidence, maximizing business value while minimizing risk. Our continued momentum underscores the strength of our platform and strategy as we capture the significant opportunity ahead."

Guidance update

For the third quarter, AvePoint expects total revenue of USD $128.2 million to USD $130.2 million, representing year-on-year growth of 18% at the midpoint, or 19% on a constant-currency basis. It forecasts non-GAAP operating income of USD $21.0 million to USD $22.0 million.

For the full year, AvePoint now expects annual recurring revenue of USD $522.1 million to USD $528.1 million, implying 26% year-on-year growth at the midpoint. On a foreign-exchange-adjusted basis, it maintained its annual recurring revenue growth expectation at 26%.

Full-year revenue is projected at USD $508.5 million to USD $512.5 million, representing 22% year-on-year growth at the midpoint. On a constant-currency basis, revenue growth is expected to be 21% at the midpoint. Non-GAAP operating income is forecast at USD $86.4 million to USD $88.4 million.

The updated outlook reflects stronger second-quarter performance, a higher annual recurring revenue target and increased expense plans in the second half. Foreign exchange movements are expected to create a headwind across reported metrics.

AI focus

Alongside the earnings report, AvePoint highlighted product and research work tied to AI governance. It released the third edition of its State of AI report, which found that many organisations still lack the controls needed to scale AI safely, with governance gaps, deployment delays and AI-generated data adding to the challenge.

The company also introduced updates to its Confidence Platform, extending governance, security, recovery and backup controls to agentic AI, new enterprise applications and multicloud infrastructure.

AvePoint said it serves more than 28,000 organisations and 6,000 channel partners across cloud environments including Microsoft, Google and Salesforce.