OneStream, Inc.(OS) - 2025 Q2 - Quarterly Results

Executive Summary OneStream reported strong Q2 2025 financial results, continuing first-half momentum post-IPO, driven by platform adoption and AI innovation Q2 2025 Performance Overview OneStream announced strong Q2 2025 financial results, continuing first-half momentum one year post-IPO, driven by customer adoption of its platform and AI innovation - OneStream reported strong Q2 2025 results, continuing first-half momentum one year post-IPO[4] CEO Commentary CEO Tom Shea highlighted significant customer achievements with the OneStream platform, streamlining reporting and enhancing decision-making through AI innovation - CEO Tom Shea noted strong Q2 results, with customers achieving real results by streamlining reporting, spotting risks, and making faster decisions using the OneStream platform[4] - The company's AI innovation is delivering measurable value to finance teams worldwide, despite near-term public sector dynamics[4] Second Quarter 2025 Financial Highlights OneStream achieved significant revenue growth and improved non-GAAP profitability in Q2 2025, alongside substantial increases in operating and free cash flow Revenue Performance Total revenue increased by 26% year-over-year to $147.6 million, driven by a 30% growth in subscription revenue | Metric | Q2 2025 (Millions USD) | YoY Change | | :----------------- | :----------------- | :--------- | | Total Revenue | $147.6 | +26% | | Subscription Revenue | $133.6 | +30% | Profitability GAAP operating loss increased due to higher equity-based compensation, while non-GAAP operating income improved significantly year-over-year | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change (GAAP Loss) | YoY Change (Non-GAAP) | | :------------------------- | :----------------- | :----------------- | :--------------------- | :-------------------- | | GAAP Operating Loss | $(32.2) | $(11.6) | (177.6%) | N/A | | GAAP Operating Margin | (22%) | (10%) | (120 bps) | N/A | | Non-GAAP Operating Income/Loss | $1.6 | $(8.7) | N/A | Improved by $10.3M | | Non-GAAP Operating Margin | 1% | (7%) | N/A | Improved by 800 bps | - Equity-based compensation expense significantly increased to $31.4 million in Q2 2025 from $2.7 million in Q2 2024, impacting GAAP operating loss[6] Earnings Per Share GAAP basic net loss per share was ($0.10), while non-GAAP net income per share reached $0.05 | Metric | Q2 2025 (USD) | | :------------------------- | :------ | | GAAP Basic Net Loss Per Share | $(0.10) | | Non-GAAP Net Income Per Share | $0.05 | Cash Flow Net cash provided by operating activities and free cash flow both saw substantial year-over-year increases in Q2 2025 | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Change | | :----------------------------------- | :----------------- | :----------------- | :--------- | | Net Cash Provided by Operating Activities | $29.7 | $8.1 | +266.7% | | Free Cash Flow | $29.4 | $7.7 | +281.8% | Recent Developments and Business Highlights OneStream advanced its platform with new AI solutions, achieved significant market recognition, and formed a strategic partnership to foster tech talent Product Innovation OneStream launched new SensibleAI solutions, integrated with Microsoft Fabric, and released Version 9 of its platform, alongside acquiring partner-developed productivity tools - Launched new SensibleAI solutions (Agents, Studio, Account Reconciliations, advanced Forecast) embedded across planning, forecasting, close, consolidation, reporting, and analytics[5][8] - Announced a certified Power BI Connector integration with Microsoft Fabric and released Version 9 of the OneStream platform[10] - Acquired a suite of partner-developed productivity solutions, including Allocations, Analytic Drill-Down, and Admin Assist[10] Market Recognition & Research OneStream released research on the 'Finance Talent Crunch' and achieved numerous top rankings in the BARC 2025 Planning Survey - Released 'Finance Talent Crunch Research' analyzing the future of corporate finance careers and AI's role, highlighting AI skills gaps and shifting expectations[10] - Achieved 27 top rankings and 56 leading positions in the BARC 2025 Planning Survey across four peer groups[10] Strategic Partnerships OneStream partnered with Girls Who Code to empower the next generation of girls in technology and finance careers through training and mentorship - Partnered with Girls Who Code to close the gender gap in tech, providing technical training, mentorship, and internship opportunities[10] Financial Outlook OneStream provided financial guidance for Q3 and full-year 2025, projecting revenue, operating margin, and earnings per share Q3 2025 Guidance For Q3 2025, OneStream expects total revenue between $147 million and $149 million, with non-GAAP operating margin between 0% and 2% | Metric | Q3 2025 Guidance (Millions USD) | | :------------------------- | :--------------- | | Total Revenue | $147M - $149M | | Non-GAAP Operating Margin | 0% - 2% | | Non-GAAP Net Income per Share | $0.01 - $0.03 | | Equity-Based Compensation | ~$30M | FY 2025 Guidance For fiscal year 2025, OneStream projects total revenue between $586 million and $590 million, with non-GAAP operating margin between 1% and 3% | Metric | FY 2025 Guidance (Millions USD) | | :------------------------- | :--------------- | | Total Revenue | $586M - $590M | | Non-GAAP Operating Margin | 1% - 3% | | Non-GAAP Net Income per Share | $0.07 - $0.15 | | Equity-Based Compensation | $120M - $125M | - OneStream has not provided GAAP reconciliation for its forward outlook due to the unreasonable efforts exception, particularly for equity-based compensation and employee stock transactions[9] Non-GAAP Financial Measures This section defines and reconciles OneStream's non-GAAP financial measures to their most directly comparable GAAP counterparts for transparency Definitions of Non-GAAP Measures This section defines OneStream's non-GAAP financial measures, including operating income, operating margin, net income per share, and free cash flow, detailing their adjustments from GAAP - Non-GAAP operating income (loss) adjusts loss from operations for non-cash, non-operational, and non-recurring items like equity-based compensation, employer taxes on stock transactions, amortization of acquired intangibles, and acquisition-related costs[19] - Non-GAAP operating margin is non-GAAP operating income (loss) as a percentage of total revenue[20] - Free cash flow is defined as net cash provided by operating activities less purchases of property and equipment[23] Reconciliation of Non-GAAP Measures This section provides detailed reconciliations of OneStream's non-GAAP financial measures to their GAAP equivalents for historical periods, including operating income, operating margin, and free cash flow Reconciliation of Non-GAAP Operating Income (Loss) | Metric | 2025 (Thousands USD) | 2024 (Thousands USD) | | :----------------------------------- | :------------------ | :------------------ | | Loss from operations | $(32,240) | $(11,571) | | Equity-based compensation expense | 31,434 | 2,719 | | Employer taxes on employee stock transactions | 1,840 | — | | Amortization of acquired intangible assets | 315 | 183 | | Acquisition-related costs | 243 | — | | Non-GAAP operating income (loss) | $1,592 | $(8,669) | Reconciliation of Non-GAAP Operating Margin | Metric | 2025 | 2024 | | :----------------------------------- | :--- | :--- | | Operating margin | (22)% | (10)% | | Equity-based compensation expense | 21% | 2% | | Employer taxes on employee stock transactions | 1% | — | | Amortization of acquired intangible assets | — | — | | Acquisition-related costs | — | — | | Non-GAAP operating margin | 1% | (7)% | Reconciliation of Free Cash Flow | Metric | 2025 (Thousands USD) | 2024 (Thousands USD) | | :----------------------------------- | :------------------ | :------------------ | | Net cash provided by operating activities | $29,741 | $8,114 | | Purchases of property and equipment | (366) | (410) | | Free cash flow | $29,375 | $7,704 | Company Information This section provides an overview of OneStream's business, investor and media contacts, earnings webcast details, and forward-looking statement disclaimers About OneStream OneStream is a leading enterprise finance management platform unifying data, embedding AI for decisions, and serving over 1,600 customers, including 17% of the Fortune 500 - OneStream is a leading enterprise finance management platform that unifies financial and operational data, embeds AI, and empowers the CFO[25][26] - Serves over 1,600 customers, including 17% of the Fortune 500, with a vision to be the operating system for modern finance[27] Investor Relations Contacts Provides contact information for OneStream's investor relations and corporate communications departments - Investor Relations contact: Anne Leschin, VP, Investor Relations and Strategic Finance[28] - Media Relations contact: Victoria Borges, VP, Corporate Communications[28] Earnings Webcast Information Details for the Q2 2025 earnings conference call and webcast, held on August 7, 2025, with replay available on the investor relations website - Conference call and webcast for Q2 2025 results held on August 7, 2025, at 4:30 p.m. ET[12] - Webcast replay available on https://investor.onestream.com[13](index=13&type=chunk) Forward-Looking Statements This section contains a standard disclaimer regarding forward-looking statements, outlining risks and uncertainties, and stating no obligation to update these statements - The press release contains forward-looking statements subject to known and unknown risks, uncertainties, and assumptions[13] - Forward-looking statements include business strategy, future growth, AI innovation, platform enhancements, research, partnerships, and Q3/FY25 guidance[13] - The company undertakes no obligation to update forward-looking statements, except as required by law[13] Condensed Consolidated Financial Statements This section presents OneStream's unaudited condensed consolidated balance sheets, statements of operations, and cash flows for specified periods Condensed Consolidated Balance Sheets Presents OneStream's unaudited condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity | Metric | June 30, 2025 (Thousands USD) | December 31, 2024 (Thousands USD) | | :----------------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $652,082 | $544,174 | | Total current assets | $822,418 | $737,366 | | Total assets | $910,530 | $823,221 | | Total current liabilities | $343,039 | $312,175 | | Total liabilities | $363,906 | $332,263 | | Total stockholders' / members' equity | $546,624 | $490,958 | Condensed Consolidated Statements of Operations Provides unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2025, and 2024, detailing revenues, costs, and net loss Three Months Ended June 30 | Metric | 2025 (Thousands USD) | 2024 (Thousands USD) | | :----------------------------------- | :---------- | :---------- | | Total revenue | $147,590 | $117,501 | | Gross profit | $101,198 | $80,526 | | Loss from operations | $(32,240) | $(11,571) | | Net loss | $(24,810) | $(7,850) | | Net loss attributable to OneStream, Inc. | $(18,432) | $(7,850) | | Total equity-based compensation | $31,434 | $2,719 | Six Months Ended June 30 | Metric | 2025 (Thousands USD) | 2024 (Thousands USD) | | :----------------------------------- | :---------- | :---------- | | Total revenue | $283,899 | $227,792 | | Gross profit | $193,929 | $156,789 | | Loss from operations | $(72,113) | $(16,951) | | Net loss | $(57,461) | $(12,809) | | Net loss attributable to OneStream, Inc. | $(42,448) | $(12,809) | | Total equity-based compensation | $69,343 | $3,832 | Condensed Consolidated Statements of Cash Flows Presents unaudited condensed consolidated statements of cash flows for the three and six months ended June 30, 2025, and 2024, detailing cash flows from operating, investing, and financing activities Three Months Ended June 30 | Metric | 2025 (Thousands USD) | 2024 (Thousands USD) | | :----------------------------------- | :---------- | :---------- | | Net cash provided by operating activities | $29,741 | $8,114 | | Net cash used in investing activities | $(4,066) | $(8,004) | | Net cash provided by (used in) financing activities | $32,539 | $(694) | | Net increase (decrease) in cash and cash equivalents | $58,216 | $(781) | | Cash and cash equivalents - End of period | $652,082 | $140,515 | Six Months Ended June 30 | Metric | 2025 (Thousands USD) | 2024 (Thousands USD) | | :----------------------------------- | :---------- | :---------- | | Net cash provided by operating activities | $65,938 | $33,654 | | Net cash used in investing activities | $(4,446) | $(8,694) | | Net cash provided by (used in) financing activities | $45,853 | $(1,045) | | Net increase (decrease) in cash and cash equivalents | $107,908 | $23,428 | | Cash and cash equivalents - End of period | $652,082 | $140,515 |