Growth came in ahead of the standing company bar. Revenue reached $100.9 million, above the prior Q2 guidance midpoint of $98.0 million, while ARR rose 22% year over year to $410 million. The company also raised full-year revenue guidance from $397.0–$403.0 million to $407.2–$411.2 million, a roughly 2% increase at the midpoint. (Financial Highlights; Financial Outlook)
| Metric | Q2 2026 | Q2 2025 / Prior expectation | Read |
|---|---|---|---|
| Revenue | $100.9M | $83.3M; prior Q2 guide midpoint $98.0M | 21% growth and above the prior bar (Financial Highlights; Financial Outlook) |
| ARR | $410M | $335M | 22% growth; $36M sequential increase (Financial Highlights; Key Business Metrics) |
| Dollar-based NRR | 103% | 106% in Q1 2026; 104% in Q2 2025 | Still positive expansion, but momentum cooled sequentially (Key Business Metrics) |
| Non-GAAP operating loss | $(1.5)M | $(1.5)M | Essentially in line year over year (Financial Highlights; GAAP to Non-GAAP Reconciliation) |
| Non-GAAP EPS | $(0.01) | $0.01 | Slight deterioration despite revenue growth (Financial Highlights; GAAP to Non-GAAP Reconciliation) |
| Free cash flow | $23.7M | $18.2M | Stronger cash generation, 23.6% margin (Cash Flow Reconciliation) |
| Full-year 2026 revenue guide | $407.2M–$411.2M | Prior guide $397.0M–$403.0M | Raised by about 2% at the midpoint (Financial Outlook) |
The raise is real, but it is not a broad profitability upgrade. Full-year non-GAAP operating income guidance increased to $6.3–$9.3 million from the prior $2.5–$6.5 million range, yet the Q2 result remained a $1.5 million loss and non-GAAP EPS slipped to $(0.01). The improved annual profit outlook therefore appears to rely more on second-half leverage than on profitability already visible in Q2. (Financial Outlook; GAAP to Non-GAAP Reconciliation)
Underlying margins weakened materially. GAAP gross margin fell to 68.5% from 72.6%, while non-GAAP gross margin fell to 70.7% from 74.6%. GAAP operating loss widened to $35.2 million from $27.1 million, with $27.4 million of stock-based compensation, $3.2 million of acquisition-related costs, and $2.1 million of restructuring charges excluded from the non-GAAP result. The Statsig integration helped add $17 million of ARR, but it also makes the reported cost base less clean in the near term. (Financial Highlights; GAAP to Non-GAAP Reconciliation)
Cash generation is the clearest strength. Operating cash flow rose to $25.6 million and free cash flow to $23.7 million, up $5.5 million year over year. However, the company spent $68.7 million on share repurchases during the quarter and $89.5 million in the first half, leaving cash, cash equivalents, and restricted cash at $74.7 million versus $82.0 million at year-end; marketable securities also declined. (Cash Flow Statement; Balance Sheet)
Net read: modestly better than expected, with a meaningful execution caveat. The revenue beat, ARR acceleration, and higher full-year revenue outlook outweigh the unchanged Q2 operating loss and weaker gross margins, but the quarter does not yet show the promised growth-with-leverage story in reported profitability. The positive surprise is therefore narrow rather than broad.
Read the original 8-K on SEC EDGAR ↗