OneStream, Inc.(OS) - 2025 Q1 - Quarterly Results

OneStream Q1 2025 Earnings Release First Quarter 2025 Financial Highlights OneStream reported strong Q1 2025 results with a 24% revenue increase and positive free cash flow, despite a wider GAAP operating loss due to equity-based compensation Q1 2025 Key Financial Metrics | Financial Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $136.3M | $110.3M | +24% | | Subscription Revenue | $125.1M | $95.7M | +31% | | GAAP Operating Loss | ($39.9M) | ($5.4M) | N/A | | Non-GAAP Operating Loss | ($0.5M) | ($4.3M) | N/A | | GAAP Net Loss Per Share | ($0.14) | N/A | N/A | | Non-GAAP Net Income Per Share | $0.04 | N/A | N/A | | Net Cash from Operating Activities | $36.2M | $25.5M | +42% | | Free Cash Flow | $35.8M | $24.9M | +44% | - The significant increase in GAAP operating loss was primarily driven by equity-based compensation expense, which rose to $37.9 million in Q1 2025 from $1.1 million in Q1 2024[6][30] - CEO Tom Shea attributed the strong results to healthy demand and solid execution, emphasizing the value of the OneStream platform and its SensibleAI technology[4] Recent Developments and Business Highlights The company achieved FedRAMP High authorization, launched a new ESG solution, and continued to receive significant industry recognition - Achieved Federal Risk and Authorization Management Program (FedRAMP) High authorization, certifying its platform for handling highly sensitive, unclassified government data[5] - Launched a new ESG Reporting & Planning solution, enabling customers to manage ESG requirements, including Scope 1, 2, and 3 emissions, within its unified platform[10] - Received continued industry accolades, including being named a Leader in the Gartner® Magic Quadrant™ for Financial Close and Consolidation Solutions and a 5x Market Leader by BARC[10] Financial Outlook OneStream provided guidance for Q2 and the full fiscal year 2025, projecting revenue between $583 million and $587 million for the full year Q2 and FY 2025 Guidance | Guidance | Q2 2025 | FY 2025 | | :--- | :--- | :--- | | Total Revenue | $140M - $142M | $583M - $587M | | Non-GAAP Operating Margin | (2%) - 0% | 0% - 2% | | Non-GAAP Net Income per Share | $0.00 - $0.02 | $0.05 - $0.13 | | Equity-Based Compensation | $30M - $35M | $120M - $130M | - The company has not provided a reconciliation of its forward-looking non-GAAP guidance to comparable GAAP measures, citing the unreasonable efforts exception under Regulation S-K[8] Financial Statements This section presents the unaudited condensed consolidated balance sheets, statements of operations, and statements of cash flows for the period ended March 31, 2025 Condensed Consolidated Balance Sheets Total assets grew to $867.3 million as of March 31, 2025, driven by an increase in cash and cash equivalents Key Balance Sheet Items | Balance Sheet Item (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $593,866 | $544,174 | | Total current assets | $783,355 | $737,366 | | Total assets | $867,332 | $823,221 | | Total current liabilities | $335,398 | $312,175 | | Total liabilities | $355,117 | $332,263 | | Total stockholders' equity | $512,215 | $490,958 | Condensed Consolidated Statements of Operations Total revenue grew 24% year-over-year, but a substantial rise in equity-based compensation led to a significantly higher net loss of $32.7 million Key Income Statement Items | Income Statement Item (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $136,309 | $110,291 | | Gross Profit | $92,731 | $76,263 | | Total Operating Expenses | $132,604 | $81,643 | | Loss from Operations | ($39,873) | ($5,380) | | Net Loss | ($32,651) | ($4,959) | - Equity-based compensation expense increased dramatically to $37.9 million in Q1 2025, compared to just $1.1 million in Q1 2024, significantly impacting operating and net loss[30] Condensed Consolidated Statements of Cash Flows Net cash from operating activities increased to $36.2 million, resulting in a strong free cash flow of $35.8 million for Q1 2025 Key Cash Flow Items | Cash Flow Item (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $36,197 | $25,540 | | Net cash used in investing activities | ($380) | ($690) | | Net cash provided by (used in) financing activities | $13,314 | ($351) | | Net increase in cash and cash equivalents | $49,692 | $24,209 | | Cash and cash equivalents - End of period | $593,866 | $141,296 | Reconciliation of GAAP to Non-GAAP Measures This section details adjustments from GAAP to non-GAAP measures, primarily removing the impact of equity-based compensation and related taxes Non-GAAP Operating Loss & Margin Adjustments for equity-based compensation reduced the GAAP operating loss of $39.9 million to a non-GAAP operating loss of $0.5 million Reconciliation to Non-GAAP Operating Loss | Reconciliation to Non-GAAP Operating Loss (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Loss from operations (GAAP) | ($39,873) | ($5,380) | | Equity-based compensation expense | $37,909 | $1,113 | | Employer taxes on employee stock transactions | $1,167 | $0 | | Amortization of acquired intangible assets | $275 | $0 | | Non-GAAP operating loss | ($522) | ($4,267) | Non-GAAP Net Income (Loss) & Per Share The company's GAAP net loss of $32.7 million was adjusted to a non-GAAP net income of $6.7 million, or $0.04 per share Reconciliation to Non-GAAP Net Income | Reconciliation to Non-GAAP Net Income (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss (GAAP) | ($32,651) | ($4,959) | | Equity-based compensation expense | $37,909 | $1,113 | | Employer taxes on employee stock transactions | $1,167 | $0 | | Amortization of acquired intangible assets | $275 | $0 | | Non-GAAP net income (loss) | $6,700 | ($3,846) | Reconciliation to Non-GAAP Net Income Per Share | Reconciliation to Non-GAAP Net Income Per Share | Q1 2025 | | :--- | :--- | | Net loss per share–basic and diluted (GAAP) | ($0.14) | | Adjustments for: | | | Equity-based compensation expense | $0.22 | | Employer taxes on employee stock transactions | $0.01 | | Net loss attributable to non-controlling interests | ($0.05) | | Non-GAAP net income per share | $0.04 | Free Cash Flow Free cash flow increased significantly to $35.8 million in Q1 2025 from $24.9 million in the prior-year period Free Cash Flow Calculation | Free Cash Flow Calculation (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $36,197 | $25,540 | | Purchases of property and equipment | ($380) | ($690) | | Free cash flow | $35,817 | $24,850 | About OneStream & Other Information This section provides a company overview, forward-looking statement disclaimers, and definitions for the non-GAAP financial measures used - OneStream positions itself as the leading enterprise finance platform that unifies financial and operational data and embeds AI to modernize the Office of the CFO[23][24] - The company serves over 1,600 customers, including 17% of the Fortune 500, and has a network of over 300 partners and 1,500 employees[25] - The report defines the non-GAAP measures used, including Non-GAAP Operating Loss, Non-GAAP Net Income, and Free Cash Flow, which are adjusted for items like equity-based compensation[12][17][21]