AvePoint Raises 2026 ARR Outlook Again After Second Quarter

The Tip Desk · August 6, 2026 · 3 min read

Annual recurring revenue reached $465.1 million, and the company lifted full-year ARR guidance to as much as $528.1 million.

AvePoint (AVPT), the cloud data-protection and governance software company, raised its full-year 2026 annual recurring revenue outlook for a second consecutive quarter, even as year-over-year revenue growth slowed for a second straight period.

ARR as of June 30, 2026, was $465.1 million, up 27% from a year earlier and 24% adjusted for foreign exchange. That year-over-year ARR growth rate accelerated from 26% (23% FX-adjusted) at the end of the first quarter. The company now expects full-year 2026 ARR of $522.1 million to $528.1 million, or 26% growth at the midpoint on both a reported and FX-adjusted basis. It said the update again raises ARR guidance, as it had after the first quarter.

The slowdown in reported sales was the other thread of the quarter. Total revenue was $124.5 million, up 22% from the second quarter of 2025, or 21% on a constant-currency basis. SaaS revenue was $98.5 million, up 27%, or 26% in constant currency. Both growth rates slowed from the first quarter, when total revenue rose 26% and SaaS rose 35%. Term license and support revenue was $10.2 million, and services revenue was $15.7 million.

GAAP gross profit was $91.0 million, for a 73.1% margin, compared with 74.0% a year earlier. Non-GAAP gross margin was 73.7%. GAAP operating income was $10.2 million, an 8.2% margin, versus 7.0% a year earlier. Non-GAAP operating income was $20.3 million, a 16.3% margin, compared with 18.4% a year earlier. Sales and marketing expense was $45.5 million, general and administrative expense was $18.7 million, and research and development expense was $16.6 million.

Net income was $27.6 million, or $0.12 a share diluted, including a $19.9 million income tax benefit from the release of a previously recorded valuation allowance on certain deferred tax assets. Cash and cash equivalents were $417.3 million as of June 30, 2026. For the six months ended June 30, 2026, cash from operations was $40.2 million, compared with $20.8 million in the prior-year six-month period.

Dollar-based gross retention was 89% on a reported and FX-adjusted basis. Dollar-based net retention was 111% reported and 110% FX-adjusted. Chief Executive Dr. Tianyi Jiang said the quarter reflected growing demand for trusted AI, that the company accelerated top-line growth, outperformed all guided metrics, and delivered record net new ARR. The company released its third annual State of AI report and announced AvePoint Confidence Platform advancements extending its trust layer to agentic AI, new enterprise applications, and new multicloud infrastructure.

For the third quarter of 2026, AvePoint expects total revenue of $128.2 million to $130.2 million, or 18% year-over-year growth at the midpoint and 19% on a constant-currency basis, and non-GAAP operating income of $21.0 million to $22.0 million. Full-year 2026 revenue is now expected at $508.5 million to $512.5 million, or 22% growth at the midpoint and 21% in constant currency, with non-GAAP operating income of $86.4 million to $88.4 million. The company said the revenue and non-GAAP operating income update includes second-quarter outperformance relative to guidance, and that the current expected foreign-exchange headwind more than offset the ARR raise and that outperformance.

It also said it is increasing expense plans for the second half of the year, citing a rapidly growing market opportunity and demand for its platform and services.