Octave (OCTAVE) Investor Day 2026 summary

Strategic vision and market opportunity

• Focus on delivering lifecycle intelligence by integrating design, build, operate, and protect workflows for mission-critical industries, addressing a $28B market expected to grow to $40B+ by 2029, driven by digital transformation, regulatory, and security trends.

• Only 14% of customers use more than one workflow, but these represent nearly half of ARR, highlighting a significant cross-sell and upsell opportunity; customers on 3+ workflows are 15x more valuable.

• Recognized as a market leader by top analysts, with over 35 industry awards, #1 market share in engineering design for 15 years, and deep relationships with large, complex customers including 4,500+ organizations, 60% of which are Global Fortune 500.

• Independence from Hexagon/prior parent enables unified focus, one team, focused capital allocation, accelerated integration, and enhanced transparency to accelerate growth and innovation.

• AI is positioned as an amplifier, not a threat, expanding the addressable market and driving innovation and productivity internally.

Financial performance and guidance

• Achieved $1.64B in FY25 revenue, with $1.1B in ARR (66% of total), 9% YoY growth, 97% gross retention, and 31% adjusted operating margin.

• SaaS revenue grew 17% YoY overall and 40% YoY in the $1M+ customer tier; 51% of ARR comes from $1M+ customers.

• ARR CAGR of 8% from 2022–2025, with a medium-term target to exceed 10% ARR growth and 75%+ subscription revenue mix.

• 2026 guidance is for 3%-4% organic growth, ARR growth of 6%-8%, and a slight decline in adjusted operating margin due to transition costs; medium-term goals include 30%+ SaaS revenue by decade's end and annual margin improvement of 50-100 basis points.

• Capital structure optimized for growth: <$445M net debt, <1.0x leverage, $500M undrawn revolver, and disciplined M&A focus.

Go-to-market and growth levers / Business model and growth drivers

• Four key growth levers: retain/protect, upsell, cross-sell, and land/expand, with systematic commercial discipline, data-driven account planning, and ~1/3 of ARR growth from new logos.

• 86% of customers are on a single workflow, representing the largest growth opportunity; three workflows yield 15x ARR compared to one.

• Channel expansion, especially in underpenetrated regions and verticals, is a priority, aiming to double channel contribution from 10% to 20% and maintain a global footprint in 140+ countries.

• Customer success is now a revenue engine, proactively driving expansion and migration opportunities.

• M&A remains a strategic tool for technology and channel expansion, with a strong balance sheet and disciplined capital allocation.