Password manager turned identity security company 1Password announced on Thursday that it has surpassed $500 million in annual recurring revenue, and in the same announcement launched 1Password for Agents, a new platform that lets personal AI agents sign in and complete tasks without ever seeing or storing the user’s credentials.
The twin announcement, carried in an official 1Password press release and reported by The Wall Street Journal, positions the Toronto-based company at the center of one of the fastest-growing niches in enterprise software: securing AI agents that need passwords, secrets and API keys to do their jobs.
What Is 1Password for Agents?
1Password for Agents is aimed at consumers and small businesses using personal AI assistants. Instead of handing an agent a password and hoping it behaves, users approve task-specific access: the agent can log in and take actions on the user’s behalf, while the underlying credentials stay locked inside 1Password and never enter the agent’s model context.
“An agent should be able to do the job it has been asked to do without getting permanent access to everything behind the account, and 1Password provides the trust layer that makes this possible across personal agent experiences,” 1Password Chief Product Officer Aashish Tripathi said in the release.
The launch comes with a roster of integrations. The platform supports Meta’s Muse, Anthropic’s Claude, OpenAI’s ChatGPT Work and dots, SpaceXSI’s Grok Bot and Town’s Townie, according to PYMNTS, with more integrations to come. For enterprises, the same model is extended through 1Password Unified Access, which applies scoped, just-in-time access to workplace AI assistants, humans and machine workloads alike.
Graphic: GPTOnline, using 1Password assets
The Numbers Behind the Milestone
The company says net new ARR grew approximately 60% through the first three quarters of its fiscal 2026, with Q3 2026 alone at roughly 90% year-over-year growth, while maintaining a double-digit free cash flow margin. The number of businesses using 1Password now exceeds 200,000, including 85% of the Forbes AI 50, and net new logos added in Q3 were up 150% year over year.
The AI angle is explicit. Monthly active usage of 1Password’s developer and AI security tools has grown 200% year over year, monthly active non-human identity users of those tools grew 500% year over year, and the tools are now used in 16% of business accounts. Customers spending more than $100,000 in ARR annually grew by more than 40% year over year, with gross retention above 90%.
“AI agents are rapidly changing how people work and live, but unlocking their potential requires trust,” said CEO David Faugno in the release. “People need to remain in control of what agents can access and what they can do… Accelerating through $500 million in ARR, with the fastest growth coming from customers adopting our developer and AI security tools, demonstrates that 1Password, alongside its network of partners, is becoming the trusted foundation for agents.”
Graphic: GPTOnline, using 1Password assets
Why It Matters
The launch lands at a moment when the industry is waking up to a specific gap. As AI agents move from chat windows into multi-step work inside company systems, they need real credentials to act, and long-lived passwords were never designed for software actors that can behave unpredictably. A recent industry survey cited by Reuters found that 86% of security and technology professionals now have at least one AI agent operating in their organization, yet only 18% say they can automatically stop an agent that starts behaving unexpectedly.
1Password’s bet is that identity becomes the control point for the agentic era. “Enterprises are moving quickly to put AI agents to work, but every agent needs access to the systems, data and accounts that make it useful,” said Duncan Brown, IDC’s global domain lead for worldwide security and trust. “Organizations that can’t see and govern what their agents can reach will struggle to scale them safely.”
Customers are already buying the pitch. Mayank Upadhyay, Snowflake’s chief security and trust officer, said the integration with 1Password gives “every agent action a compound identity, tying it to both the agent and the person it acts for, so security teams get a full audit trail.”
According to the Journal, Faugno also sees the growth as a path toward a future IPO, saying 1Password is “of the scale and financial profile, with our profitability and our acceleration, that I think that we make an attractive candidate for a public company,” though there is no committed date. The company was last valued at $6.8 billion in its 2022 Series C round.
