PagerDuty achieves first-ever profit, adds AI agents, but growth slows to 5% amid seat cuts

Filed March 12, 2026 · Period ending January 31, 2026 · Compared to 10-K Mar 17, 2025 · ~1 min read

Key Changes

• high

  Company reported first GAAP profit in fiscal 2026 after releasing $169M tax valuation allowance; accumulated deficit fell from $595M to $422M, but management warns profitability may not sustain.

  MD&A: Valuation Allowance verify on EDGAR →
• high

  Revenue growth decelerated to 5% ($493M vs. $468M) while dollar-based net retention dropped to 98% from 106%, indicating existing customers are contracting; ARR churn doubled from <5% to <10%.

  MD&A: Revenue & Retention verify on EDGAR →
• high

  Introduced usage-based pricing and platform-plus-credit model to replace seat-based licensing, aiming to align revenue with AI automation and business outcomes rather than headcount; execution risk acknowledged.

  Business: Pricing Model verify on EDGAR →