Snyk pivot from costly hypergrowth

This period shows Snyk moving from buying growth with heavy spend into defending an installed base in a market that no longer lets a standalone AppSec vendor grow on product led momentum alone. ARR grew from $300M in October 2024 to $326M in February 2026, but growth slowed from 25% to 7% as legacy open source scanning weakened, churn rose, and bigger bundles from GitHub, Wiz, and others made some Snyk seats easier to cut.

• The cost side was real. Snyk lost $267M in 2022, $175M in 2023, and $166M in 2024, while cash fell from $526M at year end 2022 to $126M at year end 2024. The company improved margins, but the hypergrowth era consumed a lot of capital before growth normalized.
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• The churn was elective because customers had more substitutes. GitHub puts code and secret scanning inside the repo. Wiz added Wiz Code to fold AppSec into a broader cloud security budget. Endor Labs sells a similar developer security workflow but wins attention by reducing false positives and catching AI generated code earlier in the developer workflow.
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• Snyk still has a growth engine, but it is narrower. Snyk Code reached about $100M ARR in late 2024, then about 40% of total ARR by February 2026, offsetting decline in Snyk Open Source. That means the company is shifting from a broad dependency scanning story toward higher value code security and AI era tooling.
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The next phase is less about adding more logos and more about becoming the security layer for AI generated software. If Snyk can turn Snyk Code, Snyk Evo, and its newer AI security products into the center of a larger platform, the transitory 2023 through 2025 reset becomes the base for steadier, more durable growth with lower burn.