1Password passes $500M in ARR, up from $400M in November 2025, driven by enterprise AI coding assistants and agents, and announces 1Password for Agents

If you manage business accounts that use AI agents, those agents can now use login credentials without retaining them, reducing risk.

1Password has surpassed $500 million in annual recurring revenue (ARR), a significant increase from $400 million in November 2025. The identity security company reported that net new ARR grew approximately 60% in the first nine months of fiscal year 2026, with third-quarter growth reaching about 90% year-over-year. 1Password attributes this growth to businesses adopting its tools for securing AI agents and their workflows. The company now serves over 200,000 businesses, including 85% of those on the Forbes AI 50 list. Business customers represent over 75% of its ARR, with a more than 40% increase in customers spending over $100,000 annually. Monthly active users for developer and AI security tools saw a 200% increase, with non-human identity users growing by 500%. 1Password is also launching "1Password for Agents," a platform designed to manage credentials for AI agents, and is reportedly preparing for a potential public offering.

The surge in 1Password's ARR, particularly its rapid growth driven by enterprise adoption of AI security tools, signals a critical inflection point for the cybersecurity market. As AI agents become more integrated into business workflows, the demand for specialized identity and access management solutions that can handle both human and non-human entities is escalating rapidly. This trend highlights a growing need for granular control and secure credential management for automated systems, moving beyond traditional user-based security paradigms.

1Password's new "1Password for Agents" product directly addresses this emerging market need, allowing AI agents task-specific access without exposing underlying credentials. This development, coupled with partnerships with major AI players like Anthropic, Meta, and OpenAI, positions 1Password as a key enabler for the responsible deployment of AI at scale. The company's reported preparation for an IPO further indicates strong investor confidence in the long-term viability and growth potential of this specialized cybersecurity sector.