Summary
OneStream reported total revenue of $147.6 million for its fiscal 2025 second quarter, up 25.6% year over year. Subscription revenue rose 30% and represented 91% of the total, while license revenue kept shrinking as customers move to SaaS contracts. First-half revenue was $283.9 million, up 24.6%. The customer count reached 1,695, up 14% from a year earlier, and revenue from customers outside the United States was 33% of the total, up from 31%. Software revenue, which combines subscription and license, was 95% of total revenue.
Gross profit of $101.2 million rose 25.7% in the quarter, and gross margin was 68.6%, essentially flat against the prior-year quarter. The bottom line moved the other way. Operating loss widened to $32.2 million, and operating margin fell to negative 21.8%. Net loss attributable to OneStream widened to $18.4 million. Operating expenses grew much faster than revenue, with research and development up 70%, general and administrative up 47% and sales and marketing up 35%. Equity-based compensation of $31.4 million, against $2.7 million a year earlier, explains most of the gap. On a non-GAAP basis the company reported operating income of $1.6 million and a 1% operating margin, compared with a non-GAAP operating loss of $8.7 million and negative 7% margin a year ago. Non-GAAP net income per share was $0.05.
Cash generation was the bright spot. Operating cash flow was $29.7 million for the quarter, up 266.5%, and $65.9 million for the first half, up 95.9%. Free cash flow, a non-GAAP measure, was $29.4 million. Capital expenditures were $0.4 million, down 10.7%. Deferred revenue, current portion, climbed 32.9% to $257.2 million, and total deferred revenue was $262.5 million. Cash and cash equivalents stood at $652.1 million, and the $150.0 million revolving credit facility was undrawn.
Product news centered on the Splash 2025 user conference, where OneStream introduced SensibleAI Agents, SensibleAI Studio and SensibleAI Account Reconciliations, plus a new version of SensibleAI Forecast. The company also released Version 9 of its platform, announced a certified Power BI connector for Microsoft Fabric, and acquired three partner-developed productivity solutions covering Allocations, Analytic Drill-Down and Admin Assist. It earned 27 top rankings and 56 leading positions in the 2025 BARC planning survey. OneStream also published research surveying more than 2,500 finance professionals and students, and formed a partnership with Girls Who Code.
Management issued revenue guidance for the third quarter and the full fiscal year. Non-GAAP operating margin is expected at 0% to 2% for the third quarter and 1% to 3% for the full fiscal year. Non-GAAP net income per share is guided to $0.01 to $0.03 for the third quarter and $0.07 to $0.15 for fiscal 2025, with equity-based compensation of about $30 million in the third quarter and $120 million to $125 million for the full year. The company did not reconcile the forward non-GAAP outlook to GAAP.
The main risks are the ones management flagged. The CEO pointed to near-term public sector dynamics as a drag on the business. Equity-based compensation is running far above last year and stays elevated in the guidance. The tax receivable agreement requires cash payments to pre-IPO holders, and OneStream warns those obligations could be substantial and could weigh on liquidity. The company also expects to lose emerging growth company status and become a large accelerated filer as of December 31, 2025, which brings added reporting and audit requirements. Remaining purchase commitments under a data center and cloud services agreement were $177.8 million as of June 30, 2025.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2025 | Q1 FY2025 | QoQ | Q2 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $147.6M | $136.3M | +8.3% | $117.5M | +25.6% |
| Gross profit | $101.2M | $92.7M | +9.1% | $80.5M | +25.7% |
| Gross margin | 68.6% | 68.0% | +0.5 pp | 68.5% | +0.0 pp |
| Research & development | $33.9M | $35.0M | -3.1% | $20.0M | +70.0% |
| Sales & marketing | $70.3M | $67.6M | +3.9% | $52.2M | +34.6% |
| General & administrative | $29.3M | $30.0M | -2.4% | $19.9M | +46.8% |
| Total operating expenses | $133.4M | $132.6M | +0.6% | $92.1M | +44.9% |
| Operating income (loss) | -$32.2M | -$39.9M | +19.1% | -$11.6M | -178.6% |
| Operating margin | -21.8% | -29.3% | +7.4 pp | -9.8% | -12.0 pp |
| Net income (loss) | -$24.8M | -$32.7M | +24.0% | -$7.8M | -216.1% |
| Net margin | -16.8% | -23.9% | +7.1 pp | -6.7% | -10.1 pp |
Risks
The filing states competitors may have more advanced AI and machine learning capabilities and products, and competitors or third parties may incorporate AI into offerings more quickly or successfully than OneStream. MD&A says research and development expenses increased 70% for the three months ended June 30, 2025, partly to support development of AI-enabled solutions.
Sales cycles are long and unpredictable, averaging four to eight months and sometimes extending over years for large enterprises. Large individual sales can slip quarters, and labor union strikes or volatile macroeconomic conditions have negatively impacted closing.
OneStream has a history of operating losses and expects to continue incurring net losses. For the quarter ended June 30, 2025, operating loss widened to $32.2 million from $11.6 million, and net loss attributable to OneStream widened to $18.4 million from $7.9 million. Operating expenses increased 45% in the quarter, driven by equity-based compensation.
The market is intensely competitive, with legacy players such as Oracle and SAP and point providers such as Anaplan, Blackline, Wolters Kluwer and Workday. Competitors may have greater resources, larger sales budgets, more mature intellectual property, and more advanced AI capabilities.
Use of AI may expose OneStream to claims and regulatory obligations under evolving laws such as the EU AI Act and U.S. state AI laws. Employees or contractors may input confidential information into AI solutions, risking security breaches or loss of confidential data.
Adverse macroeconomic conditions, tariffs imposed by the U.S. or foreign governments, or a global trade war could cause customers to cut or delay IT spending, disproportionately affecting discretionary platform purchases. The filing also cites high inflation and ability to control costs.
Sales to U.S. federal, state, local and foreign government entities and highly regulated organizations face FedRAMP certification requirements, procurement audits, and budget uncertainty, including the current administration's evaluation of government spending and Department of Government Efficiency. Contract terminations or reductions could adversely affect demand.
Equity-based compensation expense increased to $31.4 million for the quarter ended June 30, 2025 from $2.7 million in the prior-year quarter, contributing to the operating loss widening. If the perceived value of equity awards declines, recruiting and retention may be harmed.
Competition for experienced sales personnel and engineers with AI and cloud skills is intense, and the loss of CEO Mr. Shea or other key employees could harm the business. The company has experienced difficulty hiring and retaining employees with appropriate qualifications.
Continued transition to a SaaS-based model and pricing model enhancements could cause operating results to fluctuate. Customers may renew on less favorable terms or choose less expensive bundled products. Subscription revenue was 91% of total revenue in the quarter ended June 30, 2025, up from 88%, while license revenue decreased 14%.
The business depends on customers renewing subscriptions and expanding use of the platform. Current and future AI capabilities may reduce or replace customers' need for employees who are users. Customer count grew 14% year over year to 1,695 as of June 30, 2025, but retention could decline.
OneStream relies on Microsoft Azure for cloud infrastructure. Disruptions, capacity constraints, or inability to maintain the relationship could cause service shortfalls and require costly migration. As of June 30, 2025, remaining commitment under a data center, cloud and IT services agreement was $177.8 million.
In the second quarter of 2025, OneStream completed an acquisition of three partner-developed solutions to enhance platform features. Integration and realization of benefits may be difficult, and future acquisitions could strain managerial and operational resources.
The Tax Receivable Agreement requires cash payments to TRA Members equal to 85% of applicable tax savings. Payments are expected to be substantial and could negatively impact liquidity and deter a change of control. As of June 30, 2025, cash and cash equivalents were $652.1 million.
KKR holds a majority of voting power, nominates five of eight directors, and has consent rights over a change of control and the appointment of the CEO. KKR's interests may not align with Class A common stockholders.
Revenue growth depends on strategic relationships with go-to-market and implementation partners. Partners may not prioritize OneStream, may offer competing products, or may not be adequately trained. MD&A says partnerships with global systems integrators have played an increasingly meaningful role in recent growth.
As of June 30, 2025, non-affiliate market value of Class A common stock exceeded $700 million, so OneStream will be a large accelerated filer as of December 31, 2025 and will no longer qualify as an emerging growth company. It will lose exemptions and require an auditor's attestation on internal control over financial reporting.
SaaS KPIs
All quarters →Free Cash Flow
Total Customers
Remaining Performance Obligations
Non-GAAP operating margin
Summary, forecast, risks and KPIs are extracted from OneStream, Inc.'s SEC filings for Q2 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.