GET DAILY SIGNALSAvePoint (AVPT) Delivers +19% Revenue Growth with ARR Momentum in Q3
Key Takeaways
- Total revenue reached $131.1 million, up 19% year over year (20% on a constant currency basis) and above the high end of guidance.
- GAAP diluted earnings per share (EPS) came in at $0.08, slightly below the consensus estimate of $0.09, while revenue topped expectations of roughly $129.4 million.
- Total annual recurring revenue (ARR) climbed to $495.1 million, up 27% year over year, with record net new ARR of $30 million (up 34%).
- FX-adjusted gross retention reached 90% and net retention improved to 111%, both favorable signposts for customer loyalty.
- GAAP operating margin expanded for a fourth consecutive quarter, supported by strong software-as-a-service (SaaS) growth of 26%.
Why This Quarter Matters
AvePoint's third-quarter report arrives at a pivotal moment for the company's AI trust narrative. As a provider of data governance, protection, and resilience software, AvePoint sits at the intersection of two accelerating trends: rapid enterprise adoption of artificial intelligence (AI) and rising demand for security and compliance controls around that adoption. The company has been transitioning toward recurring, subscription-based revenue, making ARR and SaaS growth the metrics investors watch most closely. Prior quarters showed steady momentum, and this report tests whether AvePoint can sustain double-digit growth while investing in what management calls its largest market opportunity to date. From what I see, the print offers a read on both demand durability and the cost of scaling to meet it. I also checked this using Tickeron's AI Screener to see how the stock compares to others in the industry.
The Quarter's Numbers in Detail
AvePoint reported third-quarter 2026 total revenue of $131.1 million, up 19% year over year and above the consensus estimate of approximately $129.4 million. SaaS revenue rose 26% to $105.5 million, representing 80% of total revenue, while services revenue grew 21% to $16.7 million. Term license and support revenue continued its expected decline to $8.9 million.
On the bottom line, GAAP net income reached $17.9 million, translating to diluted EPS of $0.08. That was a penny below the analyst consensus of $0.09, though the quarter included a $2.6 million income tax benefit. GAAP operating income grew 41% year over year to $11.45 million.
Operationally, total ARR ended the quarter at $495.1 million, up 27% year over year, driven by record net new ARR of $30 million. FX-adjusted gross retention hit 90% and net retention improved to 111%. The company also raised its full-year ARR outlook.
Market Reaction and Investor Sentiment
Heading into the report, sentiment around AvePoint had been constructive, with the stock up roughly 28% over the prior three months. The company entered earnings having beaten EPS estimates in its most recent quarter, and its Q2 2026 results had topped consensus. Against that backdrop, the Q3 2026 print presented a mixed picture: revenue and ARR exceeded expectations, but a narrow EPS miss and a decline in non-GAAP operating margin—pressured by a 34% surge in sales and marketing spending—tempered enthusiasm. The headline for investors was the acceleration in ARR growth for a second straight quarter, which reinforced confidence in the underlying demand story even as near-term profitability came in lighter than some had hoped.
Forward Outlook and Key Factors to Monitor
Looking ahead, management raised its full-year ARR guidance and guided fourth-quarter revenue to a range of $138.4 million to $140.4 million, with full-year 2026 revenue expected between $511.3 million and $513.3 million. That outlook implies continued double-digit growth, but investors will want to see whether top-line momentum translates into margin recovery.
One key factor to monitor is the balance between growth investment and profitability. Sales and marketing expenses climbed sharply as the company pursues its AI trust opportunity, and the resulting compression in non-GAAP operating margin bears watching in coming quarters.
Investors should also track retention metrics. Reaching the long-held 90% gross retention target is a notable milestone, and sustaining or improving net retention near 111% would signal healthy expansion within the existing customer base. Finally, the recent launch of the AvePoint Trust Platform—extending governance beyond data to models and AI agents—represents a strategic catalyst worth following as enterprises scale AI adoption.
Using Tickeron Tools in My Research
I often rely on Tickeron's AI Screener when reviewing software names like this one. It lets me quickly filter for technical patterns, fundamentals, and AI-driven signals across thousands of stocks and ETFs, which helps surface comparable ideas in the broader tech space without manual effort. This kind of tool has become a regular part of how I cross-check sector trends before forming a view on any single name.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for AVPT turns positive, indicating new upward trend
AVPT saw its Momentum Indicator move above the 0 level on October 15, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 94 similar instances where the indicator turned positive. In 75 of the 94 cases, the stock moved higher in the following days. The odds of a move higher are at 80%.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +5.41% 3-day Advance, the price is estimated to grow further. Considering data from situations where AVPT advanced for three days, in 232 of 298 cases, the price rose further within the following month. The odds of a continued upward trend are 78%.
The Aroon Indicator entered an Uptrend today. In 156 of 226 cases where AVPT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 69%.
Bearish Trend Analysis
The 10-day RSI Indicator for AVPT moved out of overbought territory on November 02, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 28 similar instances where the indicator moved out of overbought territory. In 20 of the 28 cases, the stock moved lower in the following days. This puts the odds of a move lower at 71%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 41 of 60 cases where AVPT's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 68%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AVPT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 73%.
AVPT broke above its upper Bollinger Band on October 20, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 36 (best 1 - 100 worst), indicating steady price growth. AVPT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 53 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 54 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock slightly better than average.
The Tickeron Valuation Rating of 73 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.952) is normal, around the industry mean (16.313). P/E Ratio (48.294) is within average values for comparable stocks, (57.744). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (3.696). Dividend Yield (0.000) settles around the average of (0.312) among similar stocks. P/S Ratio (6.553) is also within normal values, averaging (104.492).
The Tickeron PE Growth Rating for this company is 82 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a blank check company, which is formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, and reorganization
Industry ComputerCommunications
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