There is a category of investments whose story cannot be gleaned from a GAAP income statement—at least not without context. That is precisely the case with today’s analysis: a company that has grown from backup software into a cyber resilience platform, which last year surpassed $200 million in annual free cash flow for the first time and simultaneously entered the AI agent security segment, which does not yet have a clear winner.
The story isn’t without risk. The valuation is at a premium, GAAP profit is nowhere in sight, and ARR growth is slowing. Nevertheless, these numbers, this margin trajectory, and this moment of technological transition are very interesting.
Key points of the analysis
ARR (Annual Recurring Revenue) as of Q1 FY2027 (April 2026): $1.57 billion (+32% year-over-year); at the end of FY2026, ARR was $1.46 billion. Outlook for full FY2027: $1.854–1.862 billion. The company has exceeded its own outlook every quarter in a row.
Gross margin rose from 53% (FY2022) to over 62%…