1Password tops $500M in yearly revenue as AI tools drive demand

1Password, the password manager, now has more than $500 million in annual recurring revenue. That is up from $400 million in November 2025. The Wall Street Journal reported the figure, and the growth is tied to companies using AI coding assistants and AI agents at work.

What changed

Annual recurring revenue, or ARR, is the yearly value of subscriptions a company has signed up. It is a common way to measure software growth. The report also says 1Password's free cash flow margin is in the double digits. In plain terms, it is bringing in more cash than it spends.

1Password also announced a new product called 1Password for Agents. An AI agent is a program that can take actions on its own, such as logging into a service to finish a task. Those tools need credentials, just like employees do.

What is not known yet

The material does not say what 1Password for Agents does in detail, what it costs, or when it will be available. It also does not give customer counts or explain how much of the growth came from AI tools versus other business.

For business owners, the signal is practical. If AI tools in your company can log into accounts, someone should decide how those tools get passwords and who controls that access. Waiting until after a problem is the harder way to find out.