# EDGAR Filing Document

**Accession Number:** 0001568100
**File Stem:** 0001568100-26-000011
**Filing Date:** 2026-3
**Character Count:** 52242
**Document Hash:** f0374a6e7567e8d178116b3b082ad854
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001568100-26-000011.hdr.sgml**: 20260312

**ACCESSION NUMBER**: 0001568100-26-000011

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20260312

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260312

**DATE AS OF CHANGE**: 20260312

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PagerDuty, Inc.
- **CENTRAL INDEX KEY:** 0001568100
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 272793871
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0131

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38856
- **FILM NUMBER:** 26747983

**BUSINESS ADDRESS:**
- **STREET 1:** 600 TOWNSEND STREET #200
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94103
- **BUSINESS PHONE:** (844) 800-3889

**MAIL ADDRESS:**
- **STREET 1:** 600 TOWNSEND STREET #200
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94103

?xml version='1.0' encoding='ASCII'? pd-20260312

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**_________________________**

**FORM 8-K**

**_________________________**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d)** 

**of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): March 12, 2026**

**_________________________**

**PAGERDUTY, INC.**

**(Exact name of Registrant as Specified in Its Charter)**

**_________________________**

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-38856** | **27-2793871** |
| (State or Other Jurisdiction<br>of Incorporation) | (Commission File Number) | (IRS Employer<br>Identification No.) |
| **600 Townsend St., Suite 200**<br>**San Francisco, California** | | **94103** |
| (Address of Principal Executive Offices) | | (Zip Code) |

---

**(844) 800-3889**

(Registrant's Telephone Number, Including Area Code)

**Not Applicable**

(Former Name or Former Address, if Changed Since Last Report)

**_________________________**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

---

| |
|:---|
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |

---

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
| Common Stock, $0.000005 par value per share | PD | New York Stock Exchange (NYSE) |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

------

**Item 2.02&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition**

On March 12, 2026, PagerDuty, Inc. (the "Company") reported financial results for the quarter and fiscal year ended January 31, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference.

The information in this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information shall not be deemed incorporated by reference into any other filing with the Securities and Exchange Commission made by the Company, whether made before or after today's date, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific references in such filing.

**Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits**

(d)&nbsp;&nbsp;&nbsp;&nbsp;Exhibits

---

| | |
|:---|:---|
| Exhibit No. | Description |
| 99.1 | <u>[Press Release Issued by PagerDuty, Inc. dated March 12, 2026](ex991-pagerdutyq4fy26earni.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | PagerDuty, Inc. | PagerDuty, Inc. |
| Dated: March 12, 2026 | By: | /s/ Christopher Ferro |
|  | Name: | Christopher Ferro |
|  | Title: | Chief Legal Officer & Secretary |

---

## Exhibit 99.1

![pdlogoa14.jpg](pdlogoa14.jpg)

**PagerDuty Announces Fourth Quarter and Full Year Fiscal 2026 Financial Results**

*Fourth quarter revenue increased 2.7% year over year to $125 million*

*Annual Recurring Revenue ("ARR")* grew 1% *year over year to* $498.7 million

*Fourth quarter operating income was $5 million; non-GAAP operating income was $30 million*

*Net income was $11.0 million, representing the third consecutive quarter of GAAP profitability*

SAN FRANCISCO – (BUSINESS WIRE) – March 12, 2026 – PagerDuty, Inc. (NYSE:PD), a leader in AI-first operations management, today announced financial results for the fourth quarter and full year of fiscal 2026 ended January 31, 2026.

"Fiscal 2026 was a transformational year for PagerDuty, marked by stabilized revenue retention, a top-end guidance beat with $493 million in revenue, and a 700-basis-point expansion in non-GAAP operating margin," said Jennifer Tejada, Chairperson and CEO of PagerDuty. "Our results reflect PagerDuty's role as the essential control plane for AI operations. With leading agentic offerings driving consumption growth across enterprise and AI-native segments, we have strengthened our core franchise and are well-positioned for durable, profitable growth."

**Fourth Quarter Fiscal 2026 Financial Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue was $124.8 million, an increase of 2.7% year over year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating income was $4.5 million; operating margin was 3.6%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-GAAP operating income was $29.8 million; non-GAAP operating margin was 23.9%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income was $11.0 million, representing the Company's third consecutive quarter of GAAP profitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income per diluted share attributable to PagerDuty, Inc. common stockholders was $0.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders was $0.29.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net cash provided by operating activities was $25.4 million, with free cash flow of $22.6 million.

**Full Year Fiscal 2026 Financial Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue was $492.5 million, an increase of 5.4% year over year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating income was $5.8 million; operating margin was 1.2%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-GAAP operating income was $121.1 million; non-GAAP operating margin was 24.6%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income was $173.9 million, representing the Company's first full year of GAAP profitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income per diluted share attributable to PagerDuty, Inc. common stockholders was $1.87.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders was $1.16.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net cash provided by operating activities was $114.9 million, with free cash flow of $102.7 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash, cash equivalents, and investments were $469.8 million as of January 31, 2026.

The section titled "Non-GAAP Financial Measures" below contains a description of the non-GAAP financial measures and reconciliations between GAAP and non-GAAP financial information.

------

**Fourth Quarter and Recent Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annual recurring revenue ("ARR") as of January 31, 2026 grew 1% year over year to $499 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Customers with ARR over $100 thousand grew 1% to 861 as of January 31, 2026, compared to 849 in the prior year.&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Dollar-based net retention rate was 98% as of January 31, 2026, compared to 106% in the prior year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Free and paid customers totaled more than 35,000 as of January 31, 2026 representing approximately 14% growth year over year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total paid customers were 15,351 as of January 31, 2026, compared to 15,114 in the prior year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Remaining performance obligations were $449 million as of January 31, 2026. Of this amount, the Company expects to recognize revenue of approximately $314 million, or 70%, over the next 12 months, $106 million, or 24%, over months 13 to 24, and the remainder thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Appointed Scott Aronson to the Company's Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Appointed Chris Ferro as Chief Legal Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• PagerDuty Becomes Newest AWS Software Partner to Earn Resilience Competency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Continued to deliver leading AI capabilities in the PagerDuty Operations Cloud Platform including Site Reliability Engineer Agent workflow integrations, AI Orchestrations (early access), and expanding ecosystem integrations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Delivered greater value in the PagerDuty Operation Cloud Platform via new pricing and packaging to bring more automation, deeper insights, and a seamless Slack-first experience to teams at every level.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Named by Gartner as a Representative Vendor in two recent AI agents research reports, including its Market Guide for AI Site Reliability Engineering Tooling and Reference Architecture Brief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Recognized in Gartner's Innovation Insight: Cybersecurity Incident Response Management (CIRM) report - the second time this year Gartner has acknowledged PagerDuty's relevance in security incident response.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Featured customer: SIRUM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Lands and expands include: Anthropic, PBC; Equinix, Inc.; Lambda, Inc.; NVIDIA Corporation; and ZoomInfo Technologies Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Announced event series in four cities globally including London, Tokyo, Sydney, and San Francisco for a day of connection and knowledge sharing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Awarded as a two-time Silver Winner in the 5th Annual Anthem Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Named as finalist in the 2025 DevOps Dozen award for Best End-to-End DevOps Platform and Best Application of Generative AI in a DevOps Tool/Platform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shortlisted in the 2025/2026 Cloud Awards for Best Software-as-a-Service - USA (Enterprise), Best Cloud Automation Solution, and Best Use of AI in Cloud Computing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Recognized on five of Built In's 2026 Best Places to Work U.S. lists, including #1 Best Places to Work in Atlanta and #1 Best Large Places to Work in San Francisco.

------

**Financial Outlook**

For the first quarter of fiscal 2027, PagerDuty currently expects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total revenue of $118.0 million - $120.0 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders of $0.23 - $0.25 assuming approximately 83 million diluted shares and a non-GAAP tax rate of 20%.

For the full fiscal year 2027, PagerDuty currently expects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total revenue of $488.5 million - $496.5 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders of $1.23 - $1.28 assuming approximately 81 million diluted shares and a non-GAAP tax rate of 20%.

These statements are forward-looking and actual results may differ materially. Please refer to the section titled "Forward-Looking Statements" below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

PagerDuty has not reconciled its expectations as to non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders to GAAP net loss per share attributable to PagerDuty, Inc. common stockholders because certain reconciling items such as stock-based compensation expense, employer taxes related to employee stock transactions, amortization of debt issuance costs, amortization of acquired intangible assets, acquisition-related expenses, restructuring costs, gains or losses on extinguishment of convertible senior notes, adjustment attributable to redeemable non-controlling interest, and income tax effects and adjustments are out of PagerDuty's control or cannot be reasonably predicted. Accordingly, such reconciliation is not available without unreasonable effort. However, it is important to note that these reconciling items could have a significant effect on PagerDuty's future GAAP results.

**Conference Call Information:**

PagerDuty will host a conference call and live webcast (Zoom meeting ID 992 1279 8830) for analysts and investors at 2:00 p.m. Pacific Time on March 12, 2026. For audio only, the dial-in number 1-312-626-6799 may be used. This news release with the financial results will be accessible from PagerDuty's website at investor.pagerduty.com prior to the conference call. A live webcast of the conference call will be accessible from the PagerDuty investor relations website at investor.pagerduty.com.

**Supplemental Financial and Other Information:**

Supplemental financial and other information can be accessed through PagerDuty's investor relations website at investor.pagerduty.com. PagerDuty uses the investor relations section on its website as the means of complying with its disclosure obligations under Regulation FD. Accordingly, we recommend that investors monitor PagerDuty's investor relations website in addition to following PagerDuty's press releases, SEC filings, social media, including PagerDuty's LinkedIn account (https://www.linkedin.com/company/482819), X (formerly Twitter) account @pagerduty, the X account @jenntejada and Facebook page (facebook.com/pagerduty), and public conference calls and webcasts.

------

**Forward-Looking Statements**

This press release and the related webcast contain "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our future financial and operational performance and outlook, and strategies, objectives, opportunity, expectations and market positioning. Words such as "expect," "extend," "anticipate," "should," "believe," "hope," "target," "project," "accelerate," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," "shall" and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks and other factors detailed in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 17, 2025 and our Quarterly Reports on Form 10-Qs filed with the SEC on May 30, 2025, September 4, 2025, and November 26, 2025. Additional information will be made available in our Annual Report on Form 10-K for the year ended January 31, 2026, which is expected to be filed with the SEC shortly after this release, and other filings and reports that we may file from time to time with the SEC. In particular, the following risks and uncertainties, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: our ability to maintain or increase profitability; our ability to sustain or increase growth and effectively manage changes in our business and industry; our ability to attract new customers and retain and sell additional functionality and services to our existing customers; our dependence on a majority of our revenue from a single product; our ability to compete effectively in an increasingly competitive market; the impact of seasonality on our business; our ability to adapt and respond effectively to rapidly developing technology; our ability to effectively develop and expand our marketing and sales capacities; our ability to enhance and improve our platform or develop new functionality or use cases; the effect of unfavorable conditions in our industry or the global economy, or reductions in information technology spending, on our business and results of operations; adverse consequences that could arise as a result of international trade policies, geopolitical developments, and macroeconomic conditions, including tariffs, sanctions, trade barriers and global instability; the accuracy of our estimates of market opportunity and forecasts of market growth; our assumptions and limitations to which ARR and certain other operational data are subject that may cause such metrics to not provide an accurate indication of actual performance or future results; adverse consequences that could result from any compromise of our information technology systems or those of third parties with whom we work or our data; adverse consequences that could result from any interruptions or delays in performance of our service; and our ability to maintain the compatibility of our platform with third party applications that our customers use in their businesses.

Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release and the related webcast represent our views as of the date of this press release and the related webcast. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release and the related webcast.

**About PagerDuty, Inc.**

PagerDuty, Inc. (NYSE:PD) is the global leader in AI-first operations management serving more than 35,000 organizations worldwide. The PagerDuty Operations Cloud is a comprehensive, multi-product operations cloud platform that sits at the center of the enterprise technology stack. The Platform is a system of intelligence and action, ingesting signals from over 700 integrations, to orchestrate the right response across people, machines and software. Trusted by nearly half of the Fortune 500, half of the Forbes AI 50, and approximately two-thirds of the Fortune 100, PagerDuty is essential to delivering always-on digital experiences for modern businesses. Learn more and try it for free at www.pagerduty.com.

**The PagerDuty Operations Cloud**

The PagerDuty Operations Cloud is an AI-powered platform that automates and orchestrates the entire incident management lifecycle-from detection to resolution, providing resilience at scale. Designed for mission-critical operations, the platform empowers teams to identify and diagnose disruptions in real time, mobilize the right teams to quickly streamline workflows to solve digital issues before they become incidents. The PagerDuty Operations Cloud is essential for delivering flawless, always-on digital experiences that organizations and consumers expect today.

**Investor Relations Contact:**

Paul Underwood

investor@pagerduty.com

------

**Media Contact:**

Debbie O'Brien

media@pagerduty.com

SOURCE PagerDuty

Source: PagerDuty, Inc.

------

**PAGERDUTY, INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**(in thousands, except per share data)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three months ended January 31, | Three months ended January 31, | Year ended January 31, | Year ended January 31, |
| | 2026 | 2025 | 2026 | 2025 |
| Revenue | $124785 | $121446 | $492546 | $467499 |
| Cost of revenue<sup>(1)</sup> | 17600 | 19974 | 74142 | 79665 |
| Gross profit | 107185 | 101472 | 418404 | 387834 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;Research and development<sup>(1)</sup> | 32574 | 34611 | 126937 | 141489 |
| &nbsp;&nbsp;Sales and marketing<sup>(1)</sup> | 45217 | 53084 | 184040 | 201821 |
| &nbsp;&nbsp;General and administrative<sup>(1)</sup> | 24872 | 25496 | 101587 | 104296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 102663 | 113191 | 412564 | 447606 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) from operations | 4522 | (11719) | 5840 | (59772) |
| Interest income | 4833 | 6084 | 22693 | 27492 |
| Interest expense | (2107) | (2370) | (8857) | (9258) |
| Other (expense) income, net | 205 | (427) | 489 | (215) |
| Income (loss) before (benefit from) provision for income taxes | 7453 | (8432) | 20165 | (41753) |
| (Benefit from) provision for income taxes | (1819) | 448 | (152544) | 1783 |
| Net income (loss) | $9272 | $(8880) | $172709 | $(43536) |
| Net loss attributable to redeemable non-controlling interest | (102) | (120) | (664) | (801) |
| Net income (loss) attributable to PagerDuty, Inc. | $9374 | $(8760) | $173373 | $(42735) |
| &nbsp;&nbsp;Less: Adjustment attributable to redeemable non-controlling interest | (1645) | 1844 | (481) | 11725 |
| Net income (loss) attributable to PagerDuty, Inc. common stockholders | $11019 | $(10604) | $173854 | $(54460) |
| Weighted average shares used in calculating net income (loss) per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 88041 | 90422 | 91212 | 92000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 89552 | 90422 | 92995 | 92000 |
| Net income (loss) per share attributable to PagerDuty, Inc. common stockholders: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.13 | $(0.12) | $1.91 | $(0.59) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.12 | $(0.12) | $1.87 | $(0.59) |

---

(1) Includes stock-based compensation expense as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three months ended January 31, | Three months ended January 31, | Year ended January 31, | Year ended January 31, |
| | 2026 | 2025 | 2026 | 2025 |
| Cost of revenue | $985 | $1288 | $4283 | $5984 |
| Research and development | 8550 | 10051 | 36345 | 44691 |
| Sales and marketing | 5477 | 7483 | 22420 | 31185 |
| General and administrative | 8504 | 10309 | 34756 | 44350 |
| &nbsp;&nbsp;Total | $23516 | $29131 | $97804 | $126210 |

---

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**PAGERDUTY, INC.**

**CONSOLIDATED BALANCE SHEETS**

**(in thousands)** 

---

| | | |
|:---|:---|:---|
| | January 31, 2026 | January 31, 2025 |
| **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $237402 | $346460 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments | 232436 | 224366 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance for credit losses of $1,175 and $1,103 | 108430 | 107350 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred contract costs, current | 18401 | 19787 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 15570 | 13757 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 612239 | 711720 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 29192 | 21335 |
| &nbsp;&nbsp;&nbsp;Deferred contract costs, non-current | 25010 | 25279 |
| &nbsp;&nbsp;&nbsp;Lease right-of-use assets | 12509 | 6806 |
| &nbsp;&nbsp;&nbsp;Goodwill | 137401 | 137401 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 15645 | 20865 |
| &nbsp;&nbsp;&nbsp;Deferred tax assets | 153657 |  |
| &nbsp;&nbsp;&nbsp;Other assets | 4862 | 3860 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $990515 | $927266 |
| **Liabilities, redeemable non-controlling interest, and stockholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp;Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $6718 | $7329 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 19868 | 20322 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation | 25856 | 37505 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue, current | 246451 | 243269 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities, current | 5000 | 3307 |
| &nbsp;&nbsp;&nbsp;&nbsp;Convertible senior notes, net, current |  | 57426 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 303893 | 369158 |
| &nbsp;&nbsp;&nbsp;Convertible senior notes, net, non-current | 395729 | 393282 |
| &nbsp;&nbsp;&nbsp;Deferred revenue, non-current | 2483 | 2483 |
| &nbsp;&nbsp;&nbsp;Lease liabilities, non-current | 12598 | 9637 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 5147 | 4661 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 719850 | 779221 |
| Redeemable non-controlling interest | 17072 | 18217 |
| Stockholders' equity |  |  |
| &nbsp;&nbsp;&nbsp;Common stock |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in-capital | 679410 | 725483 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (183) | (485) |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (421797) | (595170) |
| &nbsp;&nbsp;Treasury Stock | (3837) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 253593 | 129828 |
| Total liabilities, redeemable non-controlling interest, and stockholders' equity | $990515 | $927266 |

---

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**PAGERDUTY, INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

(in thousands)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three months ended January 31, | Three months ended January 31, | Year ended January 31, | Year ended January 31, |
| | 2026 | 2025 | 2026 | 2025 |
| **Cash flows from operating activities:** |  |  |  |  |
| Net income (loss) attributable to PagerDuty, Inc. common stockholders | $11019 | $(10604) | $173854 | $(54460) |
| Net loss and adjustment attributable to non-controlling interest | (1747) | 1724 | (1145) | 10924 |
| Net income (loss) | 9272 | (8880) | 172709 | (43536) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 3040 | 5077 | 13122 | 20603 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred contract costs | 5453 | 5747 | 22317 | 22008 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs | 597 | 679 | 2518 | 2629 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 23516 | 29131 | 97804 | 126210 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment of long-lived assets |  |  | 1213 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash lease expense | 776 | 515 | 2299 | 3053 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (1814) | (613) | (153517) | (92) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 93 | (609) | (1799) | (4461) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (30117) | (32793) | (2137) | (8042) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred contract costs | (6239) | (7018) | (20697) | (22459) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (3112) | 3149 | (2753) | (1930) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (148) | 537 | (704) | 1140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 1431 | 6099 | (3474) | 4276 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation | (2423) | 2910 | (12183) | 6912 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 25908 | 29081 | 3251 | 17695 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | (823) | (1610) | (3112) | (6115) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 25410 | 31402 | 114857 | 117891 |
| **Cash flows from investing activities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (883) | (1145) | (2941) | (2791) |
| &nbsp;&nbsp;&nbsp;&nbsp;Capitalized software costs | (1966) | (1667) | (9233) | (6686) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of available-for-sale investments | (58231) | (61593) | (195640) | (214714) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturities of available-for-sale investments | 49850 | 54159 | 189539 | 201986 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of available-for-sale investments |  |  | 1248 | 2237 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of non-marketable equity investments |  |  | (1250) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (11230) | (10246) | (18277) | (19968) |
| **Cash flows from financing activities:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of convertible senior notes, net of issuance costs |  |  |  | (403) |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayments of convertible senior notes |  |  | (57500) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchases of common stock | (98778) | (2581) | (134916) | (100104) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from employee stock purchase plan | 2265 | 3256 | 6883 | 8991 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock upon exercise of stock options | 17 | 2812 | 3956 | 4339 |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee payroll taxes paid related to net share settlement of restricted stock units | (4541) | (6302) | (24846) | (28961) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (101037) | (2815) | (206423) | (116138) |
| Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash | (1) | (15) | (4) | (124) |
| Net change in cash, cash equivalents, and restricted cash | (86858) | 18326 | (109847) | (18339) |
| Cash, cash equivalents, and restricted cash at beginning of year | 325339 | 330002 | 348328 | 366667 |
| Cash, cash equivalents, and restricted cash at end of year | $238481 | $348328 | $238481 | $348328 |

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**Non-GAAP Financial Measures**

This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income attributable to PagerDuty, Inc. common stockholders, non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders, free cash flow, and free cash flow margin.

PagerDuty believes that non-GAAP financial measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past financial performance and can assist in comparisons with other companies, some of which use similar non-GAAP financial measures to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies.

The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in PagerDuty's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by PagerDuty's management about which expenses and income are excluded or included in determining these non-GAAP financial measures. A reconciliation is provided below for each historical non-GAAP financial measure to the most directly comparable financial measure presented in accordance with GAAP.

Specifically, PagerDuty excludes the following from its historical and prospective non-GAAP financial measures, as applicable:

<u>Stock-based compensation</u>: PagerDuty utilizes stock-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of its stockholders and at long-term retention, rather than to address operational performance for any particular period. As a result, stock-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period.

<u>Employer taxes related to employee stock transactions</u>: PagerDuty views the amount of employer taxes related to its employee stock transactions as an expense that is dependent on its stock price, employee exercise and other award disposition activity, and other factors that are beyond PagerDuty's control. As a result, employer taxes related to employee stock transactions vary for reasons that are generally unrelated to financial and operational performance in any particular period.

<u>Amortization of acquired intangible assets</u>: PagerDuty views amortization of acquired intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of purchased intangibles is an expense that is not typically affected by operations during any particular period.

<u>Acquisition-related expenses</u>: PagerDuty views acquisition-related expenses, such as transaction costs, acquisition-related retention payments, and acquisition-related asset impairment, as events that are not necessarily reflective of operational performance during a period. In particular, PagerDuty believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses.

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<u>Amortization of debt issuance costs</u>: The imputed interest rates of the Company's convertible senior notes (the "2025 Notes" and the "2028 Notes" or, collectively, the "Notes") was approximately 1.91% for the 2025 Notes and 2.13% for the 2028 Notes. This is a result of the debt issuance costs, which reduce the carrying value of the convertible debt instruments. The debt issuance costs are amortized as interest expense. The expense for the amortization of the debt issuance costs is a non-cash item, and we believe the exclusion of this interest expense will provide for a more useful comparison of our operational performance in different periods.

<u>Restructuring costs</u>: PagerDuty views restructuring costs, such as employee severance-related costs, as events that are not necessarily reflective of operational performance during a period. In particular, PagerDuty believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses.

<u>Shareholder matters</u>: PagerDuty views certain charges, including third-party legal, consulting, and advisory fees, related to shareholder activity that are outside of the ordinary course of our business and expenses related to a cooperation agreement as events that are not necessarily reflective of operational performance during a period. PagerDuty believes that such charges do not have a direct correlation to the operations of the Company's business and may vary in size depending on the timing, results, and resolution of such shareholder matters. The consideration of measures that exclude such expenses can assist in the comparison of operational performance in periods which may or may not include such expenses.

<u>Impairment of long-lived assets</u>: PagerDuty views non-cash charges for impairment of long-lived assets, including impairments related to capitalized software costs, office leases, and acquired intangible assets, as events that are not necessarily reflective of operational performance during a period. Impairment charges can vary significantly in terms of amount and timing and PagerDuty believes the exclusion of such adjustments can assist in comparison of operational performance in different periods.

<u>Adjustment attributable to redeemable non-controlling interest</u>: PagerDuty adjusts the value of redeemable non-controlling interest of its joint venture PagerDuty K.K. according to the operating agreement. PagerDuty believes this adjustment is not reflective of operational performance during a period and exclusion of such adjustments can assist in comparison of operational performance in different periods.

<u>Income tax effects and adjustments</u>: For fiscal 2026, PagerDuty used a projected non-GAAP tax rate of 22%. Based on PagerDuty's financial outlook for the first quarter of and full year fiscal 2027, PagerDuty will utilize a projected non-GAAP tax rate of 20% in order to provide better consistency across the interim reporting periods by eliminating the impact of non-recurring and period specific items, which can vary in size and frequency. PagerDuty's estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that PagerDuty believes materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses and other significant events.

*Non-GAAP gross profit and non-GAAP gross margin*

We define non-GAAP gross profit as gross profit excluding the following expenses typically included in cost of revenue: stock-based compensation expense, employer taxes related to employee stock transactions, amortization of acquired intangible assets, and restructuring costs. We define non-GAAP gross margin as non-GAAP gross profit as a percentage of revenue.

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*Non-GAAP operating expenses*

We define non-GAAP operating expenses as operating expenses excluding stock-based compensation expense, employer taxes related to employee stock transactions, acquisition-related expenses, which include transaction costs, acquisition-related retention payments, and asset impairment, amortization of acquired intangible assets, and restructuring costs , shareholder matters, and impairment of long-lived assets, which are not necessarily reflective of operational performance during a given period.

*Non-GAAP operating income and non-GAAP operating margin*

We define non-GAAP operating income as income (loss) from operations excluding stock-based compensation expense, employer taxes related to employee stock transactions, acquisition-related expenses, amortization of acquired intangible assets, restructuring costs, shareholder matters, and impairment of long-lived assets, which are not necessarily reflective of operational performance during a given period. We define non-GAAP operating margin as non-GAAP operating income as a percentage of revenue.

*Non-GAAP net income attributable to PagerDuty, Inc. common stockholders*

We define non-GAAP net income attributable to PagerDuty, Inc. common stockholders as net income (loss) attributable to PagerDuty, Inc. common stockholders excluding stock-based compensation expense, employer taxes related to employee stock transactions, amortization of debt issuance costs, amortization of acquired intangible assets, acquisition-related expenses, restructuring costs, shareholder matters, impairment of long-lived assets, adjustment attributable to redeemable non-controlling interest, and income tax effects and adjustments, which are not necessarily reflective of operational performance during a given period.

*Non-GAAP net income per share, basic and diluted*

We define non-GAAP net income per share, basic as non-GAAP net income attributable to PagerDuty, Inc. common stockholders divided by weighted average shares outstanding at the end of the reporting period. We define non-GAAP net income per share, diluted as non-GAAP net income attributable to PagerDuty, Inc. common stockholders divided by weighted average diluted shares outstanding at the end of the reporting period.

*Free cash flow and free cash flow margin*

We define free cash flow as net cash provided by operating activities, less cash used for purchases of property and equipment and capitalization of software costs. We define free cash flow margin as free cash flow as a percentage of revenue. In addition to the reasons stated above, we believe that free cash flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in excess of our capital investments in property and equipment in order to enhance the strength of our balance sheet and further invest in our business and potential strategic initiatives. A limitation of the utility of free cash flow as a measure of our liquidity is that it does not represent the total increase or decrease in our cash balance for the period. We use free cash flow in conjunction with traditional U.S. GAAP measures as part of our overall assessment of our liquidity, including the preparation of our annual operating budget and quarterly forecasts and to evaluate the effectiveness of our business strategies. There are a number of limitations related to the use of free cash flow as compared to net cash provided by operating activities, including that free cash flow includes capital expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made.

PagerDuty encourages investors to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate PagerDuty's business.

Please see the reconciliation tables at the end of this release for the reconciliation of non-GAAP financial measures to their most-comparable GAAP financial measures.

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**PAGERDUTY, INC.**

**RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES**

(in thousands, except percentages and per share data)

(unaudited)

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three months ended January 31, | Three months ended January 31, | Year ended January 31, | Year ended January 31, |
| | 2026 | 2025 | 2026 | 2025 |
| **Non-GAAP gross profit and non-GAAP gross margin** |  |  |  |  |
| Gross profit | $107185 | $101472 | $418404 | $387834 |
| &nbsp;&nbsp;&nbsp;Add: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 985 | 1288 | 4283 | 5984 |
| &nbsp;&nbsp;Employer taxes related to employee stock transactions | 38 | 50 | 125 | 162 |
| &nbsp;&nbsp;Amortization of acquired intangible assets | 320 | 2200 | 2700 | 9075 |
| &nbsp;&nbsp;Restructuring costs |  |  | 292 | (2) |
| Non-GAAP gross profit | $108528 | $105010 | $425804 | $403053 |
| Revenue | $124785 | $121446 | $492546 | $467499 |
| Gross margin | 85.9% | 83.6% | 84.9% | 83.0% |
| Non-GAAP gross margin | 87.0% | 86.5% | 86.4% | 86.2% |
| **Non-GAAP operating expenses** |  |  |  |  |
| Research and development | $32574 | $34611 | $126937 | $141489 |
| &nbsp;&nbsp;&nbsp;Less: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 8550 | 10051 | 36345 | 44691 |
| &nbsp;&nbsp;Employer taxes related to employee stock transactions | 343 | 425 | 958 | 1116 |
| &nbsp;&nbsp;Acquisition-related expenses |  | 228 | 263 | 978 |
| &nbsp;&nbsp;Amortization of acquired intangible assets |  |  |  | 116 |
| &nbsp;&nbsp;Restructuring costs |  | 426 | 1707 | 424 |
| &nbsp;&nbsp;Impairment of long-lived assets |  |  | 1213 |  |
| Non-GAAP research and development | $23681 | $23481 | $86451 | $94164 |
| Sales and marketing | $45217 | $53084 | $184040 | $201821 |
| &nbsp;&nbsp;&nbsp;Less: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 5477 | 7483 | 22420 | 31185 |
| &nbsp;&nbsp;Employer taxes related to employee stock transactions | 205 | 310 | 587 | 773 |
| &nbsp;&nbsp;Amortization of acquired intangible assets | 622 | 633 | 2520 | 2530 |
| &nbsp;&nbsp;Restructuring costs | 9 | 150 | 3296 | 140 |
| Non-GAAP sales and marketing | $38904 | $44508 | $155217 | $167193 |
| General and administrative | $24872 | $25496 | $101587 | $104296 |
| &nbsp;&nbsp;&nbsp;Less: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 8504 | 10309 | 34756 | 44350 |
| &nbsp;&nbsp;Employer taxes related to employee stock transactions | 217 | 282 | 644 | 745 |
| &nbsp;&nbsp;Acquisition-related expenses | 23 |  | 23 | (1) |
| &nbsp;&nbsp;Amortization of acquired intangible assets |  |  |  | 29 |
| &nbsp;&nbsp;Restructuring costs | 10 | 156 | 695 | 180 |
| &nbsp;&nbsp;Shareholder matters |  |  | 2470 |  |
| Non-GAAP general and administrative | $16118 | $14749 | $62999 | $58993 |

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Note: Certain figures may not sum due to rounding.

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**PAGERDUTY, INC.**

**RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)**

(in thousands, except percentages and per share data)

(unaudited)

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three months ended January 31, | Three months ended January 31, | Year ended January 31, | Year ended January 31, |
| | 2026 | 2025 | 2026 | 2025 |
| **Non-GAAP operating income and non-GAAP operating margin** |  |  |  |  |
| Income (loss) from operations | $4522 | $(11719) | $5840 | $(59772) |
| &nbsp;&nbsp;&nbsp;Add: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 23516 | 29131 | 97804 | 126210 |
| &nbsp;&nbsp;Employer taxes related to employee stock transactions | 803 | 1067 | 2314 | 2796 |
| &nbsp;&nbsp;Acquisition-related expenses | 23 | 228 | 286 | 977 |
| &nbsp;&nbsp;Amortization of acquired intangible assets | 942 | 2833 | 5220 | 11750 |
| &nbsp;&nbsp;Restructuring costs | 19 | 732 | 5990 | 742 |
| &nbsp;&nbsp;Shareholder matters |  |  | 2470 |  |
| &nbsp;&nbsp;Impairment of long-lived assets |  |  | 1213 |  |
| Non-GAAP operating income | $29825 | $22272 | $121137 | $82703 |
| Revenue | $124785 | $121446 | $492546 | $467499 |
| Operating margin | 3.6% | (9.6)% | 1.2% | (12.8)% |
| Non-GAAP operating margin | 23.9% | 18.3% | 24.6% | 17.7% |
| **Non-GAAP net income attributable to PagerDuty, Inc. common stockholders** |  |  |  |  |
| Net income (loss) attributable to PagerDuty, Inc. common stockholders | $11019 | $(10604) | $173854 | $(54460) |
| &nbsp;&nbsp;&nbsp;Add: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 23516 | 29131 | 97804 | 126210 |
| &nbsp;&nbsp;&nbsp;Employer taxes related to employee stock transactions | 803 | 1067 | 2314 | 2796 |
| &nbsp;&nbsp;&nbsp;Amortization of debt issuance costs | 597 | 679 | 2518 | 2629 |
| &nbsp;&nbsp;Amortization of acquired intangible assets | 942 | 2833 | 5220 | 11750 |
| &nbsp;&nbsp;Acquisition-related expenses | 23 | 228 | 286 | 977 |
| &nbsp;&nbsp;Restructuring costs | 19 | 732 | 5990 | 742 |
| &nbsp;&nbsp;Shareholder matters |  |  | 2470 |  |
| &nbsp;&nbsp;Impairment of long-lived assets |  |  | 1213 |  |
| &nbsp;&nbsp;Adjustment attributable to redeemable non-controlling interest | (1645) | 1844 | (481) | 11725 |
| &nbsp;&nbsp;Income tax effects and adjustments | (9154) | (5587) | (182897) | (21989) |
| Non-GAAP net income attributable to PagerDuty, Inc. common stockholders | $26120 | $20323 | $108291 | $80380 |
| **Non-GAAP net income per share, basic** |  |  |  |  |
| Net income (loss) per share, basic, attributable to PagerDuty, Inc. common stockholders | $0.13 | $(0.12) | $1.91 | $(0.59) |
| &nbsp;&nbsp;&nbsp;Non-GAAP adjustments to net loss attributable to PagerDuty, Inc. common stockholders | 0.17 | 0.34 | (0.72) | 1.46 |
| Non-GAAP net income per share, basic, attributable to PagerDuty, Inc. common stockholders | $0.30 | $0.22 | $1.19 | $0.87 |
| **Non-GAAP net income per share, diluted** |  |  |  |  |
| Net income (loss) per share, diluted, attributable to PagerDuty, Inc. common stockholders | $0.12 | $(0.12) | $1.87 | $(0.59) |
| &nbsp;&nbsp;&nbsp;Non-GAAP adjustments to net loss attributable to PagerDuty, Inc. common stockholders | 0.17 | 0.34 | (0.71) | 1.44 |
| Non-GAAP net income per share, diluted, attributable to PagerDuty, Inc. common stockholders | $0.29 | $0.22 | $1.16 | $0.85 |
| Weighted average shares used in calculating net income (loss) per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 88041 | 90422 | 91212 | 92000 |
| &nbsp;&nbsp;&nbsp;Diluted | 89552 | 90422 | 92995 | 92000 |
| Weighted-average shares used in calculating non-GAAP net income per share |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 88041 | 90422 | 91212 | 92000 |
| &nbsp;&nbsp;&nbsp;Diluted | 89552 | 92999 | 92995 | 95060 |

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Note: Certain figures may not sum due to rounding.

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**PAGERDUTY, INC.**

**RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)**

(in thousands, except percentages)

(unaudited)

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | Three months ended January 31, | Three months ended January 31, | Three months ended January 31, | Three months ended January 31, | Year ended January 31, | Year ended January 31, | Year ended January 31, | Year ended January 31, |
| | 2026 | 2026 | 2025 | 2025 | 2026 | 2026 | 2025 | 2025 |
| **Free cash flow and free cash flow margin** |  |  |  |  |  |  |  |  |
| Net cash provided by operating activities | $| 25410 | $| 31402 | $| 114857 | $| 117891 |
| Purchases of property and equipment | (883) | (883) | (1145) | (1145) | (2941) | (2941) | (2791) | (2791) |
| Capitalization of software costs | (1966) | (1966) | (1667) | (1667) | (9233) | (9233) | (6686) | (6686) |
| &nbsp;&nbsp;&nbsp;Free cash flow | $| 22561 | $| 28590 | $| 102683 | $| 108414 |
| Net cash used in investing activities | $| (11230) | $| (10246) | $| (18277) | $| (19968) |
| Net cash used in financing activities | $| (101037) | $| (2815) | $| (206423) | $| (116138) |
| Revenue | $| 124785 | $| 121446 | $| 492546 | $| 467499 |
| Operating cash flow margin | 20.4% | 20.4% | 25.9% | 25.9% | 23.3% | 23.3% | 25.2% | 25.2% |
| Free cash flow margin | 18.1% | 18.1% | 23.5% | 23.5% | 20.8% | 20.8% | 23.2% | 23.2% |

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