Ryan Reynolds and Matthew McConaughey-backed cybersecurity startup 1Password tops $400M ARR, eyes $1B as AI fuels growth

It’s been six years since TechStartups first covered 1Password. Back then, the Toronto-based startup had just raised $200 million in Series A funding after 14 years of bootstrapping.

A lot has changed since then. The once-scrappy password manager is now a $6.8 billion cybersecurity powerhouse backed by Hollywood heavyweights Ryan Reynolds and Matthew McConaughey, serving more than 180,000 business customers and securing over 1.3 billion human and machine credentials.

And this week, 1Password revealed on Friday that it has topped $400 million in annual recurring revenue (ARR) — setting its sights on $1 billion as artificial intelligence reshapes digital security.

“1Password, a leader in identity security, today announced strong business momentum, surpassing $400 million in annual recurring revenue (ARR) while remaining free cash-flow positive,” The 20-year-old company said in a news release.

“We believe we’re at a pretty significant inflection point in our journey,” CEO David Faugno told CNBC. “We’re set up for this next wave of disruption, which I think is an even bigger opportunity for us.”

1Password: From 14 Years of Bootstrapping to $400M ARR and the Road to $1B Growth

Faugno says 1Password could surpass $1 billion in ARR within the next several years, riding a wave of new cybersecurity challenges driven by AI and the growing need for identity and access protection. The company’s revenue has climbed fast — from $250 million in 2023 to over $400 million this year — putting it among the few private software startups reaching that scale.

The AI boom has pushed cybersecurity back into the spotlight, as attackers use smarter tools to exploit vulnerabilities at scale. Big names like Palo Alto Networks, Alphabet, Netskope, and SailPoint have helped reignite investor confidence in the sector through major deals and public listings.

Founded in 2005 by Dave Teare and Roustem Karimov, 1Password has built a reputation for making security simple for both businesses and families. Its platform keeps critical data protected with AES 256-bit encryption and provides visibility into employee app usage to prevent shadow IT risks. The company’s reach now spans corporate giants such as IBM, Salesforce, Perplexity AI, and the Golden State Warriors, along with a multiyear partnership with Oracle Red Bull Racing.

As 1Password scales, it’s strengthening its leadership team to prepare for the next phase. The company announced that Michael Hughes, formerly of ChargePoint and Barracuda Networks, will join as Chief Revenue Officer, while John Torrey, who previously held senior roles at Qualtrics and SAP, will become Chief Business Officer. Faugno said the two executives bring experience that will help 1Password attract larger enterprise clients.

The company’s C-suite has already seen a major shake-up over the past year. Longtime CEO Jeff Shiner, who led 1Password for 13 years, transitioned to executive chair of the board in July. Faugno — who joined in 2023 as president and operating chief — stepped into the CEO role at that time.

To date, 1Password has raised about $950 million and is valued at $6.8 billion, according to PitchBook. Alongside Reynolds and McConaughey, investors include Justin Timberlake, Trevor Noah, CrowdStrike CEO George Kurtz, and Iconiq Capital.

Faugno told CNBC the company is considering an IPO in 2026 or 2027, but isn’t rushing. “We control our own destiny,” he said. “From a profitability perspective, we have investors that are playing the long game with us.”

From a $200 million Series A to $400 million in recurring revenue, 1Password’s trajectory shows how cybersecurity has evolved from a back-office safeguard into a critical layer of trust for modern enterprises. As AI changes the threat landscape, 1Password’s mission — to protect digital identities across businesses and households — has never felt more urgent.