AvePoint Inc. reported fourth‑quarter and full‑year 2025 results on February 26, 2026, with total revenue of $419.5 million, up 27% year‑over‑year, and a full‑year annual recurring revenue (ARR) of $416.8 million, also a 27% increase from 2024. The company posted earnings per share of $0.07, missing the consensus estimate of $0.09 by $0.02, while Q4 revenue of $114.7 million beat the consensus estimate of $111.11 million by $3.59 million. Guidance for 2026 remains robust, with ARR projected between $509.4 million and $517.4 million, representing a 25%‑plus growth rate.
The revenue growth was driven largely by a 38% year‑over‑year increase in SaaS revenue, which now accounts for 78% of total Q4 revenue. The Confidence Platform’s deep Microsoft 365 integration and the expansion of the channel‑led managed service provider (MSP) segment contributed significantly to the SaaS lift, while legacy term‑license and services revenue grew at a slower pace, reflecting a higher mix of lower‑margin services contracts.
Non‑GAAP operating margin for Q4 2025 was 20%, down from 22% in the prior year, and the full‑year non‑GAAP operating margin was 18.9%. The margin compression is attributed to a higher mix of services revenue and increased operating expenses associated with scaling the MSP channel, which, while profitable, carries lower gross margins than core SaaS contracts.
The EPS miss can be traced to the mix shift toward lower‑margin services and the higher operating costs needed to support the rapid expansion of the MSP channel. While revenue beat expectations, the cost structure and pricing pressure in the services segment offset the upside, leading to earnings falling short of analyst forecasts.
Management reiterated its focus on AI governance and channel expansion, noting that the MSP segment’s 60% compound annual growth rate and its 56% contribution to channel ARR underpin a scalable, profitable model. The company remains confident in reaching a $1 billion ARR target by 2029, citing continued demand for data governance as a prerequisite for AI adoption.
After the announcement, AvePoint’s stock rose between 1.86% and 4.3% in after‑market trading, reflecting investor enthusiasm for the revenue beat and strong SaaS growth, while the EPS miss tempered the reaction. Analysts highlighted the company’s ability to maintain double‑digit ARR growth and its strategic positioning in the Microsoft ecosystem as key positives.
"We see healthy demand from companies spanning every size, vertical and region of the world," said Dr. Tianyi Jiang, CEO, during the earnings call. "SaaS continues to drive our business," added CFO Jim Caci. "Our fourth‑quarter results are a strong conclusion to an outstanding year," Jiang added.
AvePoint’s performance underscores its competitive moat in the data protection and governance market. The company’s deep integration with Microsoft 365, combined with a growing AI governance portfolio and a channel‑led MSP model, positions it to capture expanding demand for cloud‑native data governance solutions. The double‑digit ARR growth, coupled with a clear path to a $1 billion ARR target, signals strong long‑term execution capability, while the EPS miss highlights the need for continued cost discipline as the business scales.
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