According to CNBC, password manager 1Password has surpassed $400 million in annual recurring revenue and is considering a potential IPO in 2026 or 2027. The company counts celebrity investors including Ryan Reynolds, Matthew McConaughey, and Scarlett Johansson among its backers and has raised about $950 million to date at a $6.8 billion valuation. CEO David Faugno said they’re at a “significant inflection point” and expect to reach $1 billion in ARR within several years, benefiting from AI-driven security demands. The Toronto-based company, founded in 2005, now secures over 1.3 billion credentials and serves 180,000 business customers including IBM, Salesforce, and the Golden State Warriors. 1Password also announced new executive hires and recently underwent leadership changes with longtime CEO Jeff Shiner transitioning to executive chair in July.
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The celebrity factor and enterprise push
Here’s the thing about all those celebrity investors – it’s not just vanity backing. When you’ve got A-listers like Ryan Reynolds and Matthew McConaughey putting their money behind your cybersecurity product, you’re getting more than just capital. You’re getting marketing power that most startups would kill for. And 1Password is clearly leveraging that star power to land bigger enterprise deals. They’re not just going after individual users anymore – they’re chasing the IBMs and Salesforces of the world. The recent executive shuffle and new hires specifically target that enterprise growth strategy. Basically, they’re playing in the big leagues now.
Riding the AI security wave
Now, the timing here is pretty interesting. Faugno specifically called out AI as creating “an even bigger opportunity” for them. But what does that actually mean? Well, as AI systems become more integrated into business operations, the number of machine credentials and API keys explodes. We’re talking about non-human identities that need secure management too. 1Password’s claim of securing “more than 1.3 billion human and machine credentials” suggests they’re already positioning themselves as more than just a consumer password manager. They’re becoming an enterprise secrets management platform. And with AI systems requiring constant authentication between services, that’s a massive growth area.
The 2026-2027 IPO window
So about that potential 2026 or 2027 IPO – that feels both ambitious and conservative at the same time. They need to nearly triple their ARR to hit that $1 billion target Faugno mentioned, which is no small feat even with several years to get there. But they’ve got breathing room with $950 million in funding and investors who Faugno says are “playing the long game.” The leadership transition from Shiner to Faugno suggests they’re preparing for that public company scrutiny. And let’s be real – when you’re securing credentials for organizations like Oracle Red Bull Racing through multi-year deals, you’re building the kind of enterprise credibility that public market investors love to see.
Where 1Password fits in the security stack
The password management space has gotten incredibly crowded, but 1Password seems to be carving out a unique position. They’re not trying to be the free option – they’re positioning themselves as the premium, enterprise-grade solution. And with their recent rapid B2B growth and executive appointments focused on larger customers, they’re clearly doubling down on that strategy. The question is whether they can maintain that momentum while fending off competition from built-in browser password managers and other enterprise security platforms. But with their current trajectory and that $400 million ARR milestone, they’ve certainly got a fighting chance.
