Summary
OneStream closed the March 2025 quarter with total revenue of $136.3 million, up 23.6% from $110.3 million in the prior-year quarter. Gross profit rose 21.6% to $92.7 million from $76.3 million. Gross margin slipped to 68.0% from 69.1%, which management tied to higher post-IPO equity-based compensation and sales mix.
The revenue mix keeps tilting toward subscriptions. Subscription revenue grew 31% year over year and represented 92% of total revenue, up from 87%. Software revenue, which bundles subscriptions and licenses, was 94% of the total versus 92% a year earlier. License revenue fell as the company keeps pushing customers onto SaaS contracts. OneStream counted 1,646 customers at March 31, 2025, up 16% from 1,423 a year ago, and says 17% of the Fortune 500 runs its platform.
Profitability went the other way. The GAAP operating loss widened to $39.9 million from $5.4 million a year earlier. Operating margin fell to (29.3%) from (4.9%). Equity-based compensation explains most of the gap: $37.9 million this quarter against $1.1 million a year ago, the ramp in post-IPO expense. Excluding that and other items, non-GAAP operating loss was $0.5 million, compared with $4.3 million in the prior-year quarter, and non-GAAP operating margin was 0% versus (4%). Net loss attributable to OneStream was $24.0 million, compared with $5.0 million a year earlier. Non-GAAP net income per share was $0.04.
Cash generation held up. Net cash provided by operating activities was $36.2 million, up 41.7% from $25.5 million. Capital expenditures were $0.4 million, down 44.9% from $0.7 million. Free cash flow, defined as operating cash flow less purchases of property and equipment, was $35.8 million versus $24.9 million a year earlier. Current deferred revenue stood at $255.3 million at March 31, 2025.
Guidance points to steadier growth. Management provided total revenue guidance for the second quarter of 2025 and for the full fiscal year 2025, alongside a non-GAAP operating margin of (2%) to 0% for the second quarter and 0% to 2% for the full fiscal year. Non-GAAP net income per share is guided to $0.00 to $0.02 for the second quarter and $0.05 to $0.13 for the full fiscal year. Equity-based compensation is projected at $30 million to $35 million for the second quarter and $120 million to $130 million for the full year. The company did not reconcile these forward-looking non-GAAP measures to GAAP, citing the unreasonable efforts exception.
Operationally, OneStream achieved FedRAMP High authorization for its government cloud, launched an ESG Reporting Planning solution covering Scope 1, 2 and 3 emissions, and was named a Leader in the Gartner Magic Quadrant for Financial Close and Consolidation Solutions for the third consecutive time. Revenue from customers outside the United States rose to 35% of the total from 31%, and the company leans on more than 300 go-to-market, implementation and development partners.
The obligations stacked on the balance sheet deserve attention. A five-year vendor agreement for data center, cloud and IT services, amended in November 2024, carries a $360.0 million commitment with $212.4 million still outstanding at March 31, 2025, and it has no minimum annual spending requirement. The tax receivable agreement requires cash payments equal to 85% of applicable tax savings to certain members, and management expects those payments to be substantial. The revolving credit facility provides $150.0 million, had no borrowings outstanding, and the company was in compliance with its covenants at March 31, 2025. Heavy equity-based compensation, the widening GAAP loss and the reliance on partners to deliver implementations are the items to watch.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $136.3M | $132.5M | +2.9% | — | — |
| Gross profit | $92.7M | $88.5M | +4.7% | — | — |
| Gross margin | 68.0% | 66.8% | +1.2 pp | — | — |
| Research & development | $35.0M | $36.9M | -5.1% | — | — |
| Sales & marketing | $67.6M | $65.6M | +3.1% | — | — |
| General & administrative | $30.0M | $33.4M | -10.4% | — | — |
| Total operating expenses | $132.6M | $136.0M | -2.5% | — | — |
| Operating income (loss) | -$39.9M | -$47.4M | +15.9% | — | — |
| Operating margin | -29.3% | -35.8% | +6.5 pp | — | — |
| Net income (loss) | -$32.7M | -$31.4M | -3.8% | — | — |
| Net margin | -23.9% | -23.7% | -0.2 pp | — | — |
Risks
Failure to successfully develop and market AI-enabled solutions for the Office of the CFO could impair competitiveness as rivals incorporate AI more quickly, and evolving rules such as the EU AI Act and U.S. state AI laws may require costly changes. MD&A says the company remains committed to investing in generative AI-enabled solutions.
GAAP operating loss widened to $39.9 million in FY2025 Q1 from $5.4 million in FY2024 Q1, and operating margin fell 24.4 percentage points to -29.3%, partly due to post-IPO equity-based compensation of $37.9 million versus $1.1 million. The company expects costs to increase and may not achieve or sustain profitability.
The EPM market is intensely competitive, with larger legacy players such as Oracle and SAP and point providers such as Anaplan, Blackline, Wolters Kluwer and Workday, some with greater resources and more advanced AI capabilities. Competitors may offer deeper discounts or bundle products, forcing OneStream to reduce prices or increase investments.
Under the TRA, OneStream must pay cash to TRA Members equal to 85% of certain tax savings, and MD&A states payments will be substantial and could have a negative impact on liquidity or require debt. The obligations may also deter or delay changes of control.
Tariffs, a global trade war, inflation, higher interest rates and geopolitical conflicts have caused customers to rationalize budgets and delay spending, and OneStream has experienced lengthening sales cycles and negative impacts on customer acquisition and renewals. Sales cycles average four to eight months and can vary substantially.
The platform relies on Microsoft Azure data centers; disruptions, capacity constraints or unfavorable changes in Microsoft contract terms could cause outages, service credits or increased costs. MD&A notes changes in cloud-computing costs with Microsoft can cause quarterly fluctuations.
Sales to U.S. federal, state, local and foreign governments and highly regulated entities depend on FedRAMP High Authorization and are exposed to procurement cycles, audits and policy shifts. The current administration's evaluation of government spending, including through the Department of Government Efficiency, could reduce demand or lead to contract terminations.
OneStream expects to continue enhancing its pricing model to allow individual or bundled purchases; historically customers bought primarily on a platform and seat-based model. If new or renewing customers choose less expensive options, revenue or profitability could be affected, particularly in the short term. Large customers may also demand deeper discounts.
Growth depends on customers renewing and expanding subscriptions, and AI capabilities may reduce or replace customers' need for employees who are potential users. If customers renew on less favorable terms or do not add products, solutions or users, business and financial condition will be adversely affected.
Growth depends on attracting and retaining experienced sales personnel and engineers with cloud and AI/ML skills; competition is intense and some rivals offer more attractive compensation. If the perceived value of equity awards declines, recruitment and retention could suffer.
The company relies on more than 300 go-to-market, implementation and development partners, including Accenture, IBM, KPMG and PwC, for lead generation and implementation. If partners do not prioritize OneStream, fail to provide adequate training or implementation, or favor competitors, customer growth and revenue could be harmed.
KKR holds more than 95% of voting power as of May 2, 2025, controls a majority of the board and has consent rights over change-of-control and CEO decisions. Its interests may conflict with Class A stockholders, and concentration may discourage takeover premiums.
SaaS KPIs
All quarters →Free Cash Flow
Total Customers
Non-GAAP operating margin
Summary, forecast, risks and KPIs are extracted from OneStream, Inc.'s SEC filings for Q1 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.