Strong conversion
Stalled · cannibalization
Freemium pivot funnel: free MAU to paid conversion and ARR, resolved at the FY26 Q3 gate
re-rate funds funnel
cannibalizes paid seats
Re-rating
converts above the norm
credit & agent spend up
Compression
free tiers eat paid seats
ARR + margins compress
Free-tier MAU
850M+ free accounts
Acrobat · Express · Firefly · CC
Intent-driven discovery
friction-free onboarding
Q3 gate
Sep 10 FY26
Deferred ARR
paywalls · usage pricing
$480M give-up
Annual recurring revenue
credit + AI-agent spend, not seat price
growth guided ~10.2% YoY
Sept 10 FY26 Q3 print — conversion rate + AI-first ARR resolves the branch