Toronto-based password manager 1Password says it has passed $400 million US ($561 million CAD) in annual recurring revenue and remains cash-flow positive, as more companies turn to its platform to secure both human and AI system credentials.
The company says over 75% of its revenue now comes from business customers, up sharply as organizations use 1Password to manage identity, access, and governance across software, devices, and AI tools.
1Password now secures more than 1.3 billion credentials and serves 180,000 business clients, including about 30% of Fortune 100 firms and names like Slack, Stripe, Canva, IBM, Salesforce, and Hugging Face.
The firm also announced new leadership moves, naming Michael Hughes as President and John Torrey as Chief Business Officer. Both will focus on global expansion and partnerships as the company looks to extend its reach in enterprise identity management and AI security.
1Password says demand for what it calls a “trust layer for AI” is rising as companies deploy automated systems that can access sensitive data. The company’s tools aim to give organizations more control and visibility over how credentials are used by both employees and AI agents.
Recent product updates include Secure Agentic Autofill (built with Browserbase) to let AI agents use passwords safely in browsers, support for Perplexity’s Comet AI browser, and integration with AWS Secrets Manager to sync credentials across cloud and local environments.
The Toronto-based firm, now valued around a cool $6.8 billion US, says its customer retention remains above 90%, with strong growth in clients spending over $100,000 US per year.
“Many of these systems operate with broad access and little oversight,” said CEO David Faugno in a statement. “1Password brings identity, access, and governance together for both people and AI agents.”
1Password’s push into AI-era identity security comes as competition in enterprise password management continues to intensify, with rivals like Okta and CyberArk also expanding into machine identity protection.
Founded in 2006 in Toronto, 1Password was created by developers Roustem Karimov and Dave Teare as a simple password manager for Mac users. Over time, it grew into a major identity and access management platform, now used by millions worldwide and trusted by major enterprises for securing both human and machine credentials. Now that is one impressive homegrown growth story.
What’s your password manager of choice right now?
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