Summary
OneStream reported total revenue of $154.3 million for the fiscal 2025 third quarter, up 19.5% from $129.1 million in the prior-year quarter. Revenue for the nine months ended September 30, 2025 was $438.2 million, up 22.8% from $356.9 million. Customer count reached 1,739 at September 30, 2025, up 13% from 1,534 a year earlier. Sales outside the United States accounted for 34% of total revenue in the quarter, up from 29% in the prior-year quarter, and management keeps pointing to international expansion as a growth lever.
Gross profit rose 62.3% to $105.1 million in the quarter from $64.7 million, and gross margin improved to 68.1% from 50.1%. For the nine months, gross profit was $299.0 million versus $221.5 million, and gross margin was 68.2% versus 62.1%. A large part of the swing comes from equity-based compensation, which was far lower than in the prior-year quarter, when an option modification pushed that expense sharply higher. The company attributed the increase primarily to lower equity-based compensation expense and sales mix.
GAAP operating loss narrowed to $17.5 million from $255.2 million, and operating margin improved to negative 11.3% from negative 197.6%. For the nine months, the operating loss narrowed to $89.6 million from $272.1 million. Net loss attributable to OneStream, Inc. was $8.9 million for the quarter, compared with $171.9 million a year earlier, and the nine-month net loss was $51.3 million versus $184.8 million. On a non-GAAP basis, operating income was $9.3 million against $5.5 million, non-GAAP operating margin was 6% against 4%, and non-GAAP net income per share was $0.08 in both periods.
Net cash provided by operating activities was $5.0 million in the quarter, up 110.5% from $2.4 million, and $70.9 million for the nine months, up 96.9% from $36.0 million. Free cash flow, a non-GAAP measure that subtracts purchases of property and equipment from operating cash flow, was $4.8 million in the quarter versus $1.3 million, and $70.0 million versus $33.8 million for the nine months. Capital expenditures fell to $0.2 million from $1.1 million in the quarter, down 83.5%, and to $0.9 million from $2.2 million for the nine months, down 57.6%. Deferred revenue, current portion, was $275.5 million, up 33.9% from $205.8 million a year earlier. The company has no borrowings drawn on its $150.0 million revolving credit facility.
Guidance for the fourth quarter of 2025 calls for a non-GAAP operating margin of 4% to 6% and non-GAAP net income per share of $0.04 to $0.07. Full-year 2025 guidance is a non-GAAP operating margin of 2% to 3% and non-GAAP net income per share of $0.15 to $0.19. The company did not reconcile the forward non-GAAP outlook to comparable GAAP measures, citing the unreasonable efforts exception.
Product and marketing activity centered on the Splash EMEA conference in October. OneStream introduced Modern Financial Close, with Journal Entry Manager for journal lifecycle control and Transaction Matching for high-volume reconciliations, added AI capabilities to its ESG planning and reporting solution, and expanded the SensibleAI Studio routine library, which has roughly doubled since launch. The company also cited recognition as an exemplary leader in ISG Research's 2025 Record to Report Buyers Guide and a Customers' Choice designation in the Gartner Peer Insights report for financial close and consolidation, based on a 4.7 out of 5 rating and a 95% recommend score. Risks worth watching include the tax receivable agreement, under which the company must pay 85% of certain realized tax savings to TRA members and which management says could reduce cash flow and weigh on liquidity, a remaining $144.3 million purchase commitment for data center, cloud and IT services, credit facility covenants requiring $50.0 million in liquidity and capping the ratio of indebtedness to trailing four-quarter recurring revenue at 0.50 to 1.00, and the pending loss of emerging growth company status when the company becomes a large accelerated filer as of December 31, 2025, which brings an auditor attestation report on internal control. GAAP profitability is still negative, and the company continues to lean on partners to deliver implementations at scale.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $154.3M | $147.6M | +4.5% | $129.1M | +19.5% |
| Gross profit | $105.1M | $101.2M | +3.8% | $64.7M | +62.3% |
| Gross margin | 68.1% | 68.6% | -0.5 pp | 50.1% | +17.9 pp |
| Research & development | $30.6M | $33.9M | -9.7% | $83.0M | -63.1% |
| Sales & marketing | $63.5M | $70.3M | -9.6% | $162.7M | -61.0% |
| General & administrative | $28.4M | $29.3M | -3.1% | $74.2M | -61.8% |
| Total operating expenses | $122.5M | $133.4M | -8.2% | $319.9M | -61.7% |
| Operating income (loss) | -$17.5M | -$32.2M | +45.8% | -$255.2M | +93.2% |
| Operating margin | -11.3% | -21.8% | +10.5 pp | -197.6% | +186.3 pp |
| Net income (loss) | -$11.5M | -$24.8M | +53.7% | -$171.9M | +93.3% |
| Net margin | -7.5% | -16.8% | +9.4 pp | -133.1% | +125.7 pp |
Risks
The filing expands AI risk, noting competitors may have more advanced AI and machine learning capabilities and that OneStream must successfully develop and implement AI-enabled solutions on its platform and Solution Exchange. It also flags evolving legal obligations such as the EU AI Act and U.S. state AI laws that could require significant changes to its AI use.
The risk factor highlights the October 1, 2025 lapse in appropriations and shutdown of the U.S. federal government, warning that OneStream may not experience its usual fourth-quarter revenue increase from U.S. government agencies unless a fiscal 2026 appropriations bill is timely signed. It also cites Department of Government Efficiency pressure on federal budgets and FedRAMP certification requirements.
The company faces intense competition from legacy players Oracle and SAP and point providers Anaplan, Blackline, Wolters Kluwer and Workday, many with greater resources, larger sales budgets and more advanced AI capabilities. It warns that competitors may accelerate adoption of new technologies or engage in price competition, potentially causing lower sales, price reductions and loss of market share.
Customers have no obligation to renew subscriptions after terms typically of three years, and the filing notes that current and future AI capabilities may reduce or replace customers' need for employees who are users of the platform. It also states that a decline in new or renewed SaaS contracts may only modestly affect current-quarter revenue but will negatively affect future quarters.
Sales cycles average four to eight months and can extend over years for large enterprises, with prolonged evaluations, negotiation leverage and deployment challenges. The filing says large individual sales have occurred in later quarters than anticipated or not at all, making quarterly results difficult to predict.
OneStream expects to continue enhancing its pricing model to allow individual or bundled purchases, which could change revenue or profitability, particularly short term, if customers buy less expensive products. Large customers may also demand deeper discounts, shorter contract durations or alternative pricing models.
The platform relies on Microsoft Azure and a limited number of third-party data centers; disruptions, capacity constraints or changes in the Microsoft relationship or pricing could cause service shortfalls, customer credits, terminations or increased expenses. The filing notes past customer disruptions and outages.
The filing cites adverse macroeconomic conditions, tariffs and trade measures that could cause customers to cut or delay IT spending, lengthen sales cycles or affect retention. It also notes high inflation and ability to control costs including employee wages and cloud-computing arrangements with Microsoft.
Success depends on executive officers and key employees, especially co-founder and CEO Mr. Shea, and competition for experienced sales personnel and AI and cloud engineers is intense. The filing notes no employment agreements requiring executives to stay and that declining perceived value of equity awards could harm recruiting and retention.
KKR holds a majority of voting power and has rights including consent for change of control and CEO hiring or termination while it owns at least 25% of common stock. The certificate of incorporation renounces corporate opportunities and limits fiduciary duties, creating potential conflicts of interest.
The TRA requires cash payments to KKR and other TRA Members equal to 85% of applicable tax savings, and obligations continue even after LLC Units are exchanged. Payments could be substantial, reduce cash flow, require debt, and deter mergers or changes of control.
A stockholder derivative action was filed in September 2025 against certain directors and officers and KKR, and the filing notes securities class action litigation risk following market volatility. Such proceedings could be time-consuming, divert management attention and cause significant expenses or liability.
The company will be deemed a large accelerated filer as of December 31, 2025, losing emerging growth company status and the exemption from auditor attestation on internal control over financial reporting. This will increase compliance costs and reporting obligations.
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 Q3 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 2, 2026.