Confluent(US:CFLT)2026-02-11 21:06Revenue Performance - Fourth quarter 2025 subscription revenue reached $301.6 million, a 20% increase year over year, with Confluent Cloud revenue at $169 million, up 23% year over year[5] - For fiscal year 2025, subscription revenue totaled $1,119.7 million, reflecting a 21% year over year growth, while Confluent Cloud revenue was $624 million, up 27% year over year[6] - Total revenue for Q4 2025 was $314.8 million, a 21% increase compared to $261.2 million in Q4 2024[4] - Total revenue for Q4 2025 reached $314.8 million, a 20.5% increase from $261.2 million in Q4 2024[21] - Subscription revenue was $301.6 million, up 20.3% from $250.6 million year-over-year[21] Profitability Metrics - The company reported a GAAP operating loss of $(99.2) million in Q4 2025, an improvement of $6.6 million compared to $(105.8) million in Q4 2024[4] - Non-GAAP operating income for Q4 2025 was $27.6 million, up $14.0 million from $13.6 million in Q4 2024, resulting in a non-GAAP operating margin of 8.8%[4] - GAAP net loss per share improved to $(0.23) in Q4 2025 from $(0.27) in Q4 2024, while non-GAAP net income per diluted share increased to $0.12 from $0.09[4] - Operating loss for Q4 2025 was $99.2 million, an improvement from a loss of $105.8 million in Q4 2024[21] - Net loss for the year was $295.3 million, compared to a net loss of $345.1 million in 2024[21] Cash Flow and Investments - Net cash provided by operating activities for Q4 2025 was $42.1 million, an increase of $6.9 million from $35.2 million in Q4 2024[4] - Adjusted free cash flow for Q4 2025 was $35.5 million, up $6.4 million from $29.1 million in Q4 2024[4] - Cash provided by operating activities for Q4 2025 was $42.1 million, up from $35.2 million in Q4 2024[23] - Free cash flow for Q4 2025 was $35,518, an increase from $29,122 in Q4 2024, showing a positive trend[26] - Adjusted free cash flow for the year ended December 31, 2025, was $76,049, significantly higher than $9,489 in 2024[26] - Capital expenditures for the year ended December 31, 2025, totaled $3,597, compared to $2,567 in 2024, indicating increased investment[26] - Net cash used in investing activities for the year ended December 31, 2025, was $(185,005), compared to $(74,978) in 2024, reflecting higher investment outflows[26] Customer Growth - Confluent ended Q4 2025 with 1,521 customers generating $100,000 or greater in annual recurring revenue (ARR), a 10% increase year over year[5] Stock and Merger Information - The proposed merger with IBM is set at $31.00 per share, representing an enterprise value of $11 billion, expected to close by mid-2026[7] Other Financial Metrics - Gross profit for the year was $866.8 million, representing a gross margin of 74.3%, compared to 73.3% in 2024[25] - Non-GAAP total gross profit for Q4 2025 was $247.4 million, with a non-GAAP gross margin of 78.6%[25] - Research and development expenses for Q4 2025 were $121.9 million, accounting for 38.7% of total revenue[25] - The company reported stock-based compensation-related charges totaling $106.7 million for Q4 2025[25] - Cash and cash equivalents at the end of Q4 2025 were $347.2 million, down from $386.0 million at the end of Q4 2024[23] - The company reported a GAAP operating margin of (31.5%) for Q4 2025, an improvement from (40.5%) in Q4 2024[26] - The weighted-average shares used to compute non-GAAP net income per share, diluted, increased to 378,754 in Q4 2025 from 362,150 in Q4 2024[26]