Cayosoft posts 76% ARR surge on identity recovery boom

Cayosoft reported 76% year-on-year annual recurring revenue growth for 2025, alongside new customer wins across government and enterprise organisations and a series of product updates in its identity security and recovery portfolio.

Cayosoft sells tools for managing, monitoring and recovering Microsoft identity environments across on-premises Active Directory and cloud services such as Entra ID and Microsoft 365. These systems sit at the centre of enterprise access control, holding user accounts, permissions and login policies that underpin business applications and day-to-day operations.

Growth in 2025 also came from replacement deals, as Cayosoft took business from established vendors in the Active Directory tools market. It cited wins against Quest Software and Semperis as part of what it described as legacy tool replacement work.

Bob Bobel, Founder and CEO, linked the company's performance to customer demand for security and operational continuity in Microsoft identity platforms.

"2025 was a ground-breaking growth year for Cayosoft. We delivered mission-critical value to customers who rely on us to secure and operate the Microsoft identity systems that keep their businesses running," Bobel said.

Product Changes

During 2025, Cayosoft shipped more than 148 net-new features and enhancements across its core platform, calling it one of the most active development cycles in its history.

It also achieved SOC 2 Type II certification, which technology suppliers use to demonstrate the presence and effectiveness of security controls over a defined period.

During the year, Cayosoft released Guardian Protector, a free, always-on threat detection offering for Active Directory and Entra ID. It also announced Cayosoft Guardian SaaS, a software-as-a-service version of its Guardian product line, which it expects to make generally available in the second quarter of 2026.

Recovery Focus

A key product area for Cayosoft is recovery of identity systems after outages or cyber incidents. Active Directory recovery is often treated as a specialist discipline because compromised directory services can block access to systems across an organisation.

Analyst firm Paradigm Technica assessed Cayosoft's Guardian Instant Forest Recovery product and said it was at least 99% faster than specialised or general-purpose alternatives. Cayosoft positioned the findings as a benchmark for resilience in identity infrastructure.

"The level of risk reduction and operational peace of mind Cayosoft delivers is transformative for any organization and a big reason for their continued success with enterprises and governmental agencies," said Jack Poller, Principal Analyst at Paradigm Technica.

"Cayosoft Guardian Instant Forest Recovery reduces catastrophic downtime costs by 99%, delivering full AD forest recovery in minutes rather than days. Legacy approaches are slow, manual, and vulnerable to reinfection, but Cayosoft's instant recovery model provides a clean, pre-validated forest that is at least 99% faster than alternative methods-transforming recovery from a multi-day crisis into a predictable, minutes-long continuity event."

Analyst Recognition

Cayosoft also pointed to third-party recognition as it seeks to build credibility with larger buyers. It was named a finalist for the InfoWorld 2025 Technology of the Year Award in the Cloud Backup and Disaster Recovery category.

The company also appeared in seven Gartner reports over the past 12 months, including a Market Guide for Microsoft 365 Governance Tools published in January 2026.

Cayosoft also said it was recognised by the Cybersecurity and Infrastructure Security Agency and listed on the agency's Secure by Design page.

Market Context

Microsoft identity platforms remain widely deployed in large organisations and public sector environments, often spanning older on-premises directory infrastructure and newer cloud-based services. This hybrid structure can complicate governance, auditing and incident response, particularly when a compromised identity system affects access to a broad range of services.

Cayosoft's products address administration and recovery tasks across Active Directory, Entra ID, Microsoft 365 and Intune. It also supports recovery of directory objects and larger environments that span multiple forests.

The company has not disclosed more specifics on its annual recurring revenue. It said the 76% increase came from net-new customer acquisition and expansion in regulated industries and complex environments, as well as public sector adoption.

"Our team's relentless focus on high customer satisfaction and continuous platform innovation undoubtedly helped us achieve these milestones, and we're proud to support the organizations with the most demanding identity and resilience requirements," Bobel said.