C3.ai(US:AI)2025-12-03 21:08Financial Performance - Total revenue for Q2 fiscal 2026 was $75.1 million, a 7% increase quarter-over-quarter[5] - Subscription revenue reached $70.2 million, accounting for 93% of total revenue[5] - Total revenue for the three months ended October 31, 2025, was $75,147, a decrease of 20.3% compared to $94,338 for the same period in 2024[25] - Subscription revenue for the same period was $70,242, down 13.5% from $81,162 in 2024[25] - The company reported a gross profit of $30,380 for the three months ended October 31, 2025, down from $57,840 in 2024, reflecting a gross margin of 40%[31] Bookings and Agreements - Total bookings increased by 49% quarter-over-quarter, with 17 agreements over $1 million and six over $5 million[5] - C3 AI's Federal business bookings grew 89% year-over-year, representing 45% of total bookings[10] - C3 AI and Microsoft closed over 100 customer agreements generating over $130 million in bookings[10] Guidance and Projections - Guidance for Q3 fiscal 2026 projects total revenue between $72.0 million and $80.0 million[12] Expenses and Losses - GAAP net loss per share was $(0.75), while non-GAAP net loss per share was $(0.25)[5] - Net loss for the three months ended October 31, 2025, was $104,668, compared to a net loss of $65,972 in 2024, representing a 58.5% increase in losses[25] - Total operating expenses increased to $142,493 for the three months ended October 31, 2025, from $133,128 in 2024, marking a rise of 7.5%[25] - Stock-based compensation expense for the six months ended October 31, 2025, was $133,628, compared to $111,721 in 2024, an increase of 19.6%[29] - Total stock-based compensation expense for Q3 2025 was $68,853 million, up from $57,038 million in Q3 2024, representing a 20% increase[32] Cash and Assets - Cash, cash equivalents, and marketable securities totaled $675.0 million[5] - Cash and cash equivalents decreased to $103,205 as of October 31, 2025, down from $164,358 as of April 30, 2025[27] - Total assets decreased to $961,298 as of October 31, 2025, from $1,025,882 as of April 30, 2025[27] Cash Flow - The company had a net cash used in operating activities of $80,031 for the six months ended October 31, 2025, compared to $30,651 in 2024, indicating a significant increase in cash outflow[29] - Free cash flow for Q3 2025 was $(46,882) million, compared to $(39,508) million in Q3 2024, indicating a decline of 8%[33] - Net cash used in operating activities for Q3 2025 was $(46,496) million, an increase from $(38,693) million in Q3 2024, reflecting a 20% rise in cash outflow[33] - Net cash provided by investing activities for Q3 2025 was $62,088 million, significantly higher than $22,635 million in Q3 2024[33] - Net cash provided by financing activities for Q3 2025 was $6,672 million, compared to $3,512 million in Q3 2024, showing an increase of 90%[33] Operational Developments - C3 AI launched C3 AI Agentic Process Automation, enhancing enterprise operations through autonomous AI agents[10] Expense Breakdown - Sales and marketing expenses for Q3 2025 reached $25,687 million, up from $20,802 million in Q3 2024, a growth of 23%[32] - Research and development expenses for Q3 2025 were $20,084 million, compared to $17,999 million in Q3 2024, reflecting a 12% increase[32] - General and administrative expenses for Q3 2025 totaled $12,683 million, up from $9,926 million in Q3 2024, indicating a 28% rise[32] - Total employer payroll tax expense related to employee stock-based compensation for Q3 2025 was $1,036 million, slightly down from $1,090 million in Q3 2024[32] - Cost of subscription for stock-based compensation in Q3 2025 was $9,960 million, compared to $7,827 million in Q3 2024, marking a 27% increase[32]