1Password crossed $500 million in annual recurring revenue as businesses adopt AI agents

1Password said it surpassed $500 million in annual recurring revenue, as customers adopt its tools to secure AI agents and the workflows they build.

Net new annual recurring revenue rose roughly 60% over the first nine months of fiscal 2026, the company said. Third-quarter growth was about 90% from a year earlier, and the company reported a double-digit free cash flow margin. Annual recurring revenue was $400 million in November 2025.

More than 200,000 businesses rely on 1Password, a roster that covers 85% of companies on the Forbes AI 50, the company said. Net new customers added in the third quarter rose 150% from a year earlier. The number of customers spending more than $100,000 a year grew by more than 40%, and business customers account for more than 75% of annual recurring revenue.

Monthly active human users of the company's developer and AI security tools grew 200% from a year earlier, and monthly active non-human identity users grew 500%, according to the company. Those tools are used in 16% of business accounts. Customers using them are seeing about five times faster growth in annual recurring revenue, the company said.

“People need to remain in control of what agents can access and what they can do,” CEO David Faugno said in a statement.

1Password is announcing 1Password for Agents, a platform that gives AI helpers working on behalf of individuals a way to use login credentials without retaining them, the company said. The company said the product lets people approve task-specific access for agents without exposing the underlying credentials to the agent or its model context.

The company said it is partnering with AI labs and agent providers including Anthropic, Instinct, Meta $META, Nvidia $NVDA and OpenAI. It is investing in 1Password Unified Access, a platform that discovers and secures identities and credentials and audits activity across people, AI agents and machines.

Faugno said 1Password is preparing for a possible public offering. “We’re doing the work internally to prepare ourselves to do that at some point in the future, with no committed date or anything like that,” he told The Wall Street Journal.