PagerDuty, Inc. (PD)
Vertical SaaSSaaS Metrics & Investor Data — Q2 2026
analyticsEditorial Financial Analysis
Financial Performance & Trajectory
PagerDuty is currently a ~$490M revenue business exhibiting decelerating top-line momentum. YoY growth has remained in a narrow, sub-6% band over the trailing three quarters, registering 4.1% in Q4 2025, 5.4% in Q1 2026, and slipping back to 4.5% in Q2 2026. This stagnation near the half-billion-dollar mark signals a mature growth phase with limited near-term re-acceleration catalysts. On a positive note, gross margins have been consistently strong and stable, hovering between 84.2% and 85.0%, reflecting a high-value, low-cost-to-serve software model. The standout operational shift is in cash generation: Free Cash Flow (FCF) margin has improved dramatically from 15.5% in Q4 2025 to 25.3% in Q2 2026. This indicates the business is prioritizing profitability and cash efficiency over growth, successfully converting a higher percentage of revenue into free cash flow.
Operational & Go-to-Market (GTM) Efficiency
The Rule of 40 score, a key efficiency benchmark for SaaS, has improved from a lackluster 19.6 in Q4 2025 to a more respectable 29.8 in Q2 2026. This improvement is entirely driven by the surge in FCF margin, as the growth component of the equation has remained stagnant. While this is a positive trend toward the 40% threshold, the lack of growth acceleration is a concern. With Net Revenue Retention (NRR) data unavailable, it is impossible to assess the health of the existing customer base or expansion dynamics. The strong gross margins suggest pricing power, but without NRR or CAC payback data, we cannot determine if the GTM engine is generating efficient returns on reinvestment. The heavy reliance on margin expansion to drive efficiency, rather than a combination of growth and margin, suggests a defensive rather than offensive operational posture.
Market Valuation & Sentiment
The market is pricing PagerDuty at a modest 2.0x EV/Revenue, a slight premium to the 1.5x seen in Q1 2026 but still a discounted valuation for a sub-5% growth SaaS company. This multiple reflects the market's skepticism regarding re-acceleration. Insider activity provides a clear bearish signal: the last six filings show zero insider purchases against significant net selling activity totaling approximately -$1.29M, indicating a lack of confidence from those closest to the business. Wall Street sentiment aligns with this caution, with a consensus rating of Hold (7 Buys, 14 Holds, 2 Sells). The average price target of $11.33 offers limited upside from current levels, suggesting analysts view the stock as fairly valued given the trade-off between improving profitability and stagnant growth.
Disclaimer: The editorial financial analysis above is generated using data sourced from SEC EDGAR filings and Wall Street consensus ratings. This analysis is provided for informational and educational purposes only and does not constitute financial, investment, or professional advice. Readers should conduct their own research or consult with a registered financial advisor before making any investment decisions.
PagerDuty, Inc. (PD) is a Vertical SaaS SaaS company with a market cap of N/A as of Q2 2026. The company trades at N/A EV/Revenue and has delivered +4.5% revenue growth year-over-year. With a gross margin of 85% and FCF margin of 25.3%, PagerDuty, Inc. scores 30 on the Rule of 40 — placing it in the median range of public SaaS companies tracked by SaaSDB.
compare_arrowsSector Benchmarking
Latest company metrics compared to the Vertical SaaS sector medians
Rule of 40 is 29.8% (sector median: 30.2%) — in-line with peers.
Revenue Growth is 4.5% (sector median: 15.5%) — underperforming peers by 11.0%.
Gross Margin is 84.5% (sector median: 74.1%) — outperforming peers by 10.5%.
FCF Margin is 25.3% (sector median: 11.9%) — outperforming peers by 13.4%.
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rocket_launchFounder & Operator Metrics
Not publicly disclosed by this company: Net Revenue Retention·Gross Retention·ARR·ARR Growth·CAC Payback
trending_upEfficiency & Investment Trends
biotechR&D Intensity Trend
R&D expense as % of revenue over time
insightsOperating Leverage Trend
Operating leverage ratio (margin expansion vs growth)
Growing efficiently. Operating income is expanding faster than revenue growth, indicating positive operating leverage.
Insider Trading Activity
Analyst Ratings
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