Revenue Performance - Software revenue represented 94% of total revenue for the three months ended September 30, 2025, and 95% for the same period in 2024[131]. - Total revenue for the three months ended September 30, 2025, was $154.3 million, an increase of $25.2 million, or 19%, compared to $129.1 million for the same period in 2024[169]. - Subscription revenue reached $140.9 million, accounting for 91% of total revenue, representing a 27% increase from $110.7 million, or 86% of total revenue, in the prior year[170]. - License revenue decreased by 64% to $4.2 million, or 3% of total revenue, down from $11.7 million, or 9% of total revenue, in the same quarter of 2024[171]. - Professional services and other revenue increased by 38% to $9.2 million, or 6% of total revenue, compared to $6.7 million, or 5% of total revenue, in the prior year[172]. - Total revenue for the nine months ended September 30, 2025 was $438.2 million, an increase of $81.3 million, or 23%, compared to $356.9 million for the same period in 2024[188]. - Subscription revenue for the nine months ended September 30, 2025 was $399.7 million, representing a 29% increase from $309.5 million in the same period of 2024[189]. Customer Growth - The company had 1,739 customers as of September 30, 2025, reflecting a year-over-year growth of 13% from 1,534 customers in 2024[142]. - Revenue from customers outside the United States accounted for 34% of total revenue for the three months ended September 30, 2025, compared to 29% in 2024[134]. - The majority of new customers have been on SaaS contracts, which have accounted for more than 90% of new customer contracts since 2023[132]. Financial Metrics - Gross profit for the three months ended September 30, 2025, was $105.1 million, compared to $64.7 million in the same period of 2024[165]. - Gross margin improved to 68% for the three months ended September 30, 2025, compared to 50% for the same period in 2024[167]. - Operating expenses totaled $122.5 million for the three months ended September 30, 2025, compared to $319.9 million in the same period of 2024[165]. - The net loss attributable to OneStream, Inc. for the three months ended September 30, 2025, was $8.9 million, compared to a net loss of $171.9 million in the same period of 2024[165]. - Non-GAAP operating loss for the nine months ended September 30, 2025, was $89.6 million, an improvement from a loss of $272.1 million for the same period in 2024[209]. - Free cash flow for the nine months ended September 30, 2025, was $70.0 million, compared to $33.8 million for the same period in 2024[210]. Cost Management - Total cost of revenue decreased by 24% to $49.3 million for the three months ended September 30, 2025, down from $64.4 million in the same period of 2024[173]. - Sales and marketing expenses decreased by 61% to $63.5 million for the three months ended September 30, 2025, down from $162.7 million in the same period of 2024[179]. - Research and development expenses were $30.6 million for the three months ended September 30, 2025, a decrease of 63% from $83.0 million in the same period of 2024[180]. - General and administrative expenses decreased by $22.9 million, or 21%, to $87.6 million for the nine months ended September 30, 2025, compared to $110.5 million for the same period in 2024[201]. Future Outlook - The company plans to continue investing in research and development to enhance platform features and capabilities, including AI-enabled solutions[148]. - The company plans to increase investments in sales and marketing, as well as research and development, to support future growth[161][162]. - The company is focused on expanding its international business and plans to invest in personnel and marketing to support this growth[147]. Cash and Liquidity - As of September 30, 2025, the company had cash and cash equivalents of $653.9 million and an undrawn credit facility of $150.0 million[211]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $70.9 million, resulting from a net loss of $69.0 million offset by noncash charges[223]. - Total contractual obligations as of September 30, 2025, amounted to $42.15 million, with operating lease obligations of $20.69 million and purchase obligations of $21.46 million[230]. Market and Economic Conditions - The company has not entered into any foreign currency hedging contracts, as exchange rate fluctuations have not materially impacted operating results[240]. - The company expects to continue growing its foreign operations and customer sales, which may increase risks associated with currency fluctuations[240]. - Inflation has not had a material effect on the company's business; however, significant inflationary pressures could harm financial condition and results of operations[242].
OneStream, Inc.(OS) - 2025 Q3 - Quarterly Report