PagerDuty revenue stalls at 1% growth; net retention falls below 100% amid pricing pivot

Filed May 28, 2026 · Period ending April 30, 2026 · Compared to 10-Q May 30, 2025 · ~1 min read

Key Changes

• high

  Revenue grew just 1.0% YoY to $121M, down from 7.8% growth in the prior year quarter, while dollar-based net retention declined to 97%—below 100% for the first time, indicating existing customers are shrinking faster than they're expanding.

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

  Company shifted to usage-based pricing from traditional seat licenses during fiscal 2027, aligning fees to AI agents and automation rather than headcount—a fundamental monetization change that could impact revenue predictability.

  MD&A: Business Model verify on EDGAR →
• high

  Operating income turned positive at $9.2M (7.6% margin) vs. $10.3M loss last year, driven by 16% expense reduction; company completed $200M buyback at $10.75/share average, retiring 18.6M shares.

  MD&A: Operating Results verify on EDGAR →