1Password reaches $500 million in annual recurring revenue

Toronto-based cybersecurity firm 1Password has surpassed $500 million in annual recurring revenue (ARR), marking a significant acceleration in growth driven by the rise of artificial intelligence. The company reported that its ARR grew from approximately $400 million a year ago to its current milestone, defying typical growth deceleration seen in larger companies.

This expansion is largely attributed to the increasing demand for securing autonomous AI agents. While monthly active usage among human users increased by 200 percent, usage by autonomous agents surged by 500 percent over the past year. To support this shift, the company introduced ‘1Password for Agents,’ a technology designed to allow AI assistants to log into web services without accessing passwords, one-time codes, or other credentials in plaintext.

The new system utilizes a multi-step security chain where an agent identifies itself with a unique digital key, prompting the user to manually confirm the request on a trusted device. This ensures that credentials remain protected within the user’s vault and that the AI agent never gains full access to the entire vault.