Financial Trends -- 7/10
A genuine cash-flow inflection at $2.5B scale. Revenue is stable-to-modestly-accelerating (+25.2% YoY in
FQ1'27), with Atlas -- the growth engine and ~74% of revenue -- re-accelerated to a stable ~29%. FY26 FCF
of $492.6M is +330% over FY25, and quarterly FCF margin climbed from 13.5% (FQ1'25) to 28.7% (FQ1'27).
Non-GAAP operating margin expanded ~300 bps. Offsets holding it below a 9-10: gross margin is compressing
(~300 bps off the FY24 peak on Atlas hosting-cost mix), GAAP net income remains negative, and diluted share
count rose +11.7% YoY -- a mandatory -1 dilution penalty. Net 8 - 1 = 7.
Weight: 25%
Quarterly Revenue Trajectory ($M) -- 8 Quarters
Choppy but biased upward -- not decelerating.
The 8-quarter YoY series runs +12.8% to +25.2%, modestly re-accelerating rather than fading. Atlas,
the growth engine and ~74% of revenue, re-accelerated from +26% to a stable ~29% YoY -- the
highest-quality signal in the set. The Enterprise Advanced line is lumpy (license-timing) and roughly
flat YoY, the offsetting drag.
Atlas Revenue ($M) -- The Growth Engine
Atlas re-accelerated to a stable ~29% and rises in the mix every quarter.
Atlas grew ~2x as fast as Enterprise Advanced and reached ~74% of total revenue in FQ1'27. Atlas
customer count reached 66,400 (vs 55,800 a year prior). The Enterprise Advanced line is lumpy on
license timing and roughly flat YoY -- the offsetting drag on the blended growth rate.
Margins ($, Quarterly)
Operating margin expanding, gross margin compressing.
Non-GAAP operating margin expanded ~300 bps over two years (latest quarters 18-23%) and GAAP operating
margin improved ~800 bps off the trough. But gross margin is compressing -- GAAP GM fell from a ~75%
FY24 peak to 72%, Non-GAAP from 77% to 74% (~300 bps) -- driven by Atlas third-party hosting-cost mix
as consumption revenue out-grows higher-margin license. GAAP profitability leadership remains
non-GAAP-dependent.
Annual Financial Summary (FY ends January 31)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
| Total Revenue ($M) | $873.8M | $1,284.0M | $1,683.0M | $2,006.4M | $2,463.8M |
| Rev YoY | — | +47.0% | +31.1% | +19.2% | +22.8% |
| Atlas Revenue ($M) | $492.3M | $808.3M | $1,105.4M | $1,405.2M | $1,807.9M |
| Enterprise Adv. & other ($M) | $349.8M | $426.9M | $522.0M | $538.7M | $578.1M |
| Adj EPS (Non-GAAP, dil.) | -$0.02 | $0.81 | $3.33 | $3.66 | $4.97 |
| Op Margin (Non-GAAP) | — | — | 16% | 15% | 19% |
| Net Income (GAAP, $M) | -$306.9M | -$345.4M | -$176.6M | -$129.1M | -$71.2M |
| Free Cash Flow ($M) | -$6.7M | -$24.7M | $109.9M | $114.5M | $492.6M |
| Dil. Shares (000) | 64,563 | 68,628 | 71,249 | 74,555 | 81,247 |
Key trends
- Revenue compounding at ~30% CAGR: From $873.8M (FY2022) to $2,463.8M (FY2026), decelerating then re-accelerating to +22.8% in FY26 and +25.2% in FQ1'27
- Atlas is the engine: $492.3M to $1,807.9M over five years, now ~74% of revenue and growing a stable ~29% YoY
- FCF inflection: From -$6.7M (FY22) to $492.6M (FY26), +330% YoY in FY26 alone; quarterly FCF margin climbed to 28.7%
- Non-GAAP profitability building; GAAP still negative: Non-GAAP EPS -$0.02 to $4.97; GAAP net loss narrowing (-$306.9M to -$71.2M) but not yet positive
- Dilution is the penalty: Diluted shares rose from 64.6M to 81.2M; +11.7% YoY on the latest-quarter comparison triggers the mandatory -1
Free Cash Flow ($M, Quarterly)
FCF positive and accelerating -- the standout of the dimension.
FY26 FCF of $492.6M is +330% over FY25's $114.5M, and the quarterly FCF margin climbed from 13.5%
(FQ1'25) to 28.7% (FQ1'27). The balance sheet is net-cash (~$2.4B), so there is no debt-growth
penalty. Positive & growing FCF clears the composite quality gate.
Share Count & Dilution
- Share count rising: 64.6M (FY22) to 81.2M (FY26), diluting steadily on stock-based compensation
- Mandatory penalty: The latest-quarter comparison (73.0M FQ1'26 to 81.6M FQ1'27, +11.7% YoY) exceeds the 10% dilution threshold, triggering a -1 to the dimension
Score Rationale
Score of 7/10. Base assessment ~8 for an accelerating-FCF, expanding-operating-margin, stable-to-accelerating-revenue profile; a mandatory -1 dilution penalty nets to 7.
Supports the base ~8:
- FY26 FCF of $492.6M, +330% over FY25, with quarterly FCF margin climbing 13.5% to 28.7%
- Revenue stable-to-modestly-accelerating (FY26 +22.8% vs FY25 +19.2%); Atlas re-accelerated to a stable ~29%
- Non-GAAP operating margin expanded ~300 bps (16% to 19%); GAAP operating margin improved ~800 bps off the trough
- Net-cash balance sheet (~$2.4B) -- no debt-growth penalty; positive & growing FCF clears the quality gate
Offsets holding it below a 9-10:
- Gross margin compressing ~300 bps off the FY24 peak (GAAP 75% to 72%, Non-GAAP 77% to 74%) on Atlas hosting-cost mix
- GAAP net income remains negative (-$71.2M FY26); profitability leadership is non-GAAP-dependent
Mandatory penalty:
- Diluted share count +11.7% YoY (73.0M to 81.6M) exceeds 10% → -1. Net: 8 - 1 = 7.
Composite quality gate -- positive & growing FCF: YES. FCF firmly positive and accelerating on both an annual ($114.5M → $492.6M) and quarterly (28.7% FQ1'27 margin) basis.
Data sourced from Daloopa (company_id: 752). Fiscal year ends January 31. Figures in USD.