Couchbase Announces Fourth Quarter and Fiscal 2025 Financial Results

Core Insights - Couchbase, Inc. reported strong financial results for the fourth quarter and fiscal year 2025, achieving the highest quarterly free cash flow and net new ARR in company history [2][6][7] - The company experienced significant growth in total revenue and subscription revenue, with a year-over-year increase of 10% and 17% respectively for the fourth quarter [6][26] - Annual recurring revenue (ARR) reached $237.9 million, marking a 17% increase year-over-year, with a constant currency basis ARR of $239.8 million [6][26] Financial Highlights - Fourth Quarter Fiscal 2025: - Total revenue was $54.9 million, a 10% increase year-over-year - Subscription revenue was $52.8 million, also a 10% increase year-over-year - Gross margin was 88.6%, down from 89.7% in Q4 fiscal 2024 - Loss from operations was $15.8 million, improved from $22.6 million in Q4 fiscal 2024 - Free cash flow was $4.0 million, compared to negative free cash flow of $7.7 million in Q4 fiscal 2024 [6][26] - Full Year Fiscal 2025: - Total revenue was $209.5 million, a 16% increase year-over-year - Subscription revenue was $200.4 million, a 17% increase year-over-year - Gross margin was 88.1%, up from 87.7% in fiscal 2024 - Loss from operations was $78.7 million, improved from $84.5 million in fiscal 2024 - Negative free cash flow was $18.8 million, an improvement from negative $31.6 million in fiscal 2024 [6][26] Business Developments - Couchbase launched the private preview of Capella AI Services, aimed at simplifying the development of secure agentic applications [6][12] - The company announced integration with NVIDIA AI, enhancing the development of AI applications through Capella AI Model Services [6][12] - Capella Analytics Services were made available on Google Cloud, allowing enterprises to analyze operational JSON data at scale [12] Financial Outlook - For Q1 FY2026, Couchbase expects total revenue between $55.1 million and $55.9 million, and total ARR between $242.9 million and $245.9 million [7] - For the full year FY2026, total revenue is projected to be between $228.0 million and $232.0 million, with total ARR expected to be between $273.6 million and $278.6 million [7]