PATH FY3Q26: Results Show Steady Recovery; Agentic Solution Begins to Exhibit Early Signs of Scalability

Operating Trends: Continued Improvement

Q3 ARR was $1,782M, up 11% YoY (including a ~$6M FX tailwind), above consensus of $1,773M (+10% YoY) and the high end of the company’s guidance range of $1,776M. Q3 NNARR reached $59M (+5% YoY), turning positive again on a year-over-year basis.

For Q4, management guided to ARR of $1,844–$1,849M, implying Q4 NNARR of roughly $65M (+9% YoY), indicating continued year-over-year improvement in NNARR.

The improvement in quarterly performance was driven by several factors:

• Expansion of existing RPA bot deployments at customers.

• Rising penetration of API-based automation.

• Testing once again emerging as one of the fastest-growing businesses.

• Document Understanding usage expanding across multiple industries.

Agentic products are contributing only modest direct revenue at this stage, but pilot and early production use cases are prompting customers to purchase additional platform capabilities and are becoming a factor supporting higher win rates.