📊 PD Key Takeaways
Is PagerDuty, Inc. (PD) a Good Investment?
PagerDuty generates strong free cash flow (35.8% FCF margin) with solid gross margins (84.3%), but profitability is constrained by high leverage (1.94x D/E) and weak operating margins (7.6%). Modest revenue growth (5.4%) barely translates to net income expansion (0.7%), while tight interest coverage (2.0x) creates vulnerability to operational headwinds.
PagerDuty, Inc. Key Strengths (PD)
- Exceptional gross margins of 84.3% demonstrate strong underlying unit economics in SaaS model
- Free cash flow generation of $43.3M (35.8% FCF margin) shows business produces real cash despite accounting profitability pressure
- Strong liquidity position with $208.9M cash reserves and 1.95x current ratio provides downside protection
PD Stock Risks: PagerDuty, Inc. Investment Risks
- High financial leverage (1.94x D/E, $420.6M long-term debt) constrains profitability and limits financial flexibility; interest coverage of 2.0x is dangerously tight
- Anemic revenue growth (5.4% YoY) and near-flat net income growth (0.7%) suggest business is mature/saturated with limited expansion opportunities
- Operating margin of only 7.6% indicates operational inefficiency; typical SaaS companies operate at 15-30%+ margins, signaling cost structure problems or pricing weakness
Key Metrics to Watch
- Operating margin trend—must improve toward 12-15%+ to justify capital structure
- Revenue growth acceleration and net income leverage—need organic growth >10% with margin expansion
- Debt reduction or refinancing strategy—leverage ratio >1.9x unsustainable if growth stalls; monitor for covenant violations
PagerDuty, Inc. (PD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 35.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
PD Profit Margin, ROE & Profitability Analysis
PD vs Technology Sector: How PagerDuty, Inc. Compares
How PagerDuty, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is PagerDuty, Inc. Stock Overvalued? PD Valuation Analysis 2026
Based on fundamental analysis, PagerDuty, Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
PagerDuty, Inc. Balance Sheet: PD Debt, Cash & Liquidity
PD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: PagerDuty, Inc.'s revenue has grown significantly by 75% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.89 indicates the company is currently unprofitable.
PD Revenue Growth, EPS Growth & YoY Performance
PD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2027 | $119.8M | $5.3M | $-0.07 |
| Q3 2026 | $118.9M | -$5.9M | $-0.07 |
| Q2 2026 | $115.9M | $2.4M | $0.03 |
| Q1 2026 | $111.2M | -$7.2M | $-0.07 |
| Q3 2025 | $108.7M | -$5.9M | $-0.07 |
| Q2 2025 | $107.6M | -$10.9M | $-0.14 |
| Q1 2025 | $103.2M | -$12.2M | $-0.13 |
| Q3 2024 | $94.2M | -$12.8M | $-0.16 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
PagerDuty, Inc. Dividends, Buybacks & Capital Allocation
PD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for PagerDuty, Inc. (CIK: 0001568100)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PD
What is the AI rating for PD?
PagerDuty, Inc. (PD) has an AI grade of B with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PD's key strengths?
Claude: Exceptional gross margins of 84.3% demonstrate strong underlying unit economics in SaaS model. Free cash flow generation of $43.3M (35.8% FCF margin) shows business produces real cash despite accounting profitability pressure.
What are the risks of investing in PD?
Claude: High financial leverage (1.94x D/E, $420.6M long-term debt) constrains profitability and limits financial flexibility; interest coverage of 2.0x is dangerously tight. Anemic revenue growth (5.4% YoY) and near-flat net income growth (0.7%) suggest business is mature/saturated with limited expansion opportunities.
What is PD's revenue and growth?
PagerDuty, Inc. reported revenue of $121.0M.
Does PD pay dividends?
PagerDuty, Inc. does not currently pay dividends.
Where can I find PD SEC filings?
Official SEC filings for PagerDuty, Inc. (CIK: 0001568100) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PD's EPS?
PagerDuty, Inc. has a diluted EPS of $0.13.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is PD's fundamental grade?
Based on our AI fundamental analysis in June 2026, PagerDuty, Inc. has a B grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is PD stock overvalued or undervalued?
Valuation metrics for PD: ROE of 2.4% (sector avg: 22%), net margin of 4.4% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is PD's AI grade for 2026?
Our dual AI analysis gives PagerDuty, Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PD's free cash flow?
PagerDuty, Inc.'s operating cash flow is $44.3M, with capital expenditures of $965.0K. FCF margin is 35.8%.
How does PD compare to other Technology stocks?
Vs Technology sector averages: Net margin 4.4% (avg: 18%), ROE 2.4% (avg: 22%), current ratio 1.95 (avg: 2.5).
Is PagerDuty, Inc. carrying too much debt?
PD has a debt-to-equity ratio of 1.94x, which is above the Technology sector average of 0.5x. However, the current ratio of 1.95 suggests adequate short-term liquidity.