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Jan 31, 2025
PagerDuty Q4 2025 Earnings Report
PagerDuty achieved solid revenue growth and improved non-GAAP profitability in Q4 FY25.
Key Takeaways
PagerDuty reported total revenue of $121.4 million, up 9.3% year-over-year. While the company remained unprofitable on a GAAP basis, non-GAAP operating income improved significantly. Free cash flow reached $28.6 million, reflecting strong financial management. The company also announced a $150 million share repurchase program.
Total revenue increased 9.3% YoY to $121.4 million.
Non-GAAP EPS improved to $0.22, up from $0.17 in Q4 FY24.
Free cash flow rose to $28.6 million, compared to $19.6 million last year.
Announced a $150 million share repurchase program.
Forward Guidance
PagerDuty expects continued revenue growth in FY26, driven by AI-driven automation and operational efficiency improvements.
Positive Outlook
- Total revenue projected between $500 million and $507 million for FY26.
- Non-GAAP EPS expected between $0.90 and $0.95.
- Continued expansion in AI and automation features to drive customer adoption.
- Free cash flow generation expected to remain strong in FY26.
- Further investment in enterprise and mid-market segments to accelerate growth.
Challenges Ahead
- Macroeconomic uncertainty may impact IT spending and customer budgets.
- Stock-based compensation expenses remain high, affecting GAAP profitability.
- Competitive pressures in digital operations management may intensify.
- Potential slowdown in customer growth as enterprises optimize costs.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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