1Password tops $500-million USD ARR on the back of accelerating AI demand
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Toronto-based cybersecurity software company 1Password announced on Thursday that it has crossed $500 million USD ($702 million CAD) in annual recurring revenue (ARR), up from $400 million about a year ago. The technology firm achieved this milestone amid rising AI adoption and while maintaining a double-digit free cash flow margin. 1Password also revealed that it has added approximately 20,000 business customers during this time (bringing its total to more than 200,000), and brought the number of clients paying more than $100,000 annually for its services up more than 40 percent year-over-year, while improving its net retention. "The fact that we're accelerating through that speaks to the AI influence on our business and our growth." David Faugno, 1Password This growth has been fuelled by demand for 1Password's developer and AI security tools, which have seen monthly active usage among human users jump 200 percent and autonomous AI agents soar 500 percent year-over-year. The company aims to build on this with the release of a new platform on Thursday to help clients deploy personal AI agents. These types of offerings have helped 1Password post net-new ARR growth of 60 percent in 2026 and 90 percent year-over-year during the third quarter, specifically. The firm claims it now caters to 85 percent of the Forbes AI 50 list, which ranks top private AI startups. In an interview...
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