1Password tops $500M ARR as companies rush to secure AI agents

What's the deal? Identity security company 1Password has surpassed $500 million in annual recurring revenue, the company announced on 22 October 2026. Net new ARR grew about 60% through the first three quarters of its 2026 fiscal year, and about 90% year over year in the third quarter, while the company kept a double-digit free cash flow margin.

The AI agents angle 1Password says the acceleration is being driven by its developer and AI security tools, which customers use to secure the AI agents and workflows they build. Monthly active human users of those tools grew 200% year over year and non-human identity users grew 500%. Customers using them grow ARR about five times faster than those who do not. The company is moving from protecting credentials in a vault to governing task-scoped, just-in-time access for people, AI agents and machines through its Unified Access platform. It also launched 1Password for Agents, which lets personal AI agents sign in and act for a user without seeing the underlying credentials. CEO David Faugno told BetaKit that agents need "just the access that you want them to have, just for the time that they need it".

Context 1Password now serves more than 200,000 businesses, including 85% of the Forbes AI 50. Its ARR stood at about $400 million a year earlier.

Sources 1Password press release: 1password.com/press/2026/october/1password-surpasses-500-million-arr. BetaKit: betakit.com. Wall Street Journal: wsj.com. Post by Mariane Bekker (@marianebekker) on X, 22 October 2026: x.com/marianebekker/status/2113352871399870464