Summary
OneStream closed FY2025 with accelerating demand in Q4. Revenue rose 23.6% to $163.73 million for the quarter. Full-year revenue was $601.93 million, up 23.0%. Gross profit increased 29.1% to $114.31 million in Q4, and the gross margin reached 69.8%, up 3.0 percentage points. For the full year, gross profit was $413.29 million, up 33.3%, with a gross margin of 68.7%, up 5.3 percentage points. The mix continues to shift toward subscriptions. Subscription revenue represented 91% of full-year total revenue, compared with 87% in 2024. Software revenue was 94% of total revenue for the year, and professional services made up 6%. Annual recurring revenue was $698.9 million, up 23%. Total customers reached 1,805, up 13%. Revenue from outside the United States accounted for 34% of total revenue for the year, up from 32% in 2024 and 30% in 2023. Management attributes the revenue growth to new customer acquisition, expansion within existing accounts and the continued shift to a SaaS-based model.
Profitability improved sharply. The Q4 operating loss narrowed to $5.23 million, an improvement of $42.18 million, or 89.0%. The operating margin was -3.2%, up 32.6 percentage points. For the full year, the operating loss was $94.80 million, an improvement of $224.73 million, or 70.3%, and the operating margin was -15.7%, up 49.5 percentage points. Net income attributable to OneStream was $1.00 million in Q4, a swing to profit and an improvement of $32.45 million, or 103.2%. The full-year net loss attributable to OneStream was $50.30 million, an improvement of $165.90 million, or 76.7%. Lower equity-based compensation helped; non-GAAP operating income was $27.09 million for the full year, compared with $1.224 million in 2024. The company also noted that gross margin and software gross margin may fluctuate from period to period.
Cash generation and backlog metrics look solid. Q4 operating cash flow was $25.77 million, up 2.5%. Full-year operating cash flow was $96.67 million, up 58.1%. Capital expenditures were $0.12 million in Q4, down 73.2%, and $1.04 million for the full year, down 60.2%. Deferred revenue, current portion, was $317.58 million, up 32.7%. The company had no borrowings outstanding under its $150.0 million revolving credit facility. The credit facility requires compliance with a ratio of indebtedness to total recurring revenue for the most recent trailing four quarters not exceeding 0.50 to 1.00 and maintenance of $50.0 million in liquidity. The company was in compliance as of December 31, 2025. Management believes existing cash and available borrowings will be sufficient for at least the next 12 months.
The largest corporate event is the pending merger with affiliates of Hg. On January 6, 2026, OneStream, Inc. and OneStream Software LLC entered into a merger agreement. Class A and Class D common stock and LLC Units will convert into the right to receive $24.00 in cash. Class B and Class C common stock will convert into $0.0001 in cash. The merger is expected to close in the first half of 2026, subject to regulatory approvals and customary closing conditions. The merger agreement restricts new debt, share issuance, acquisitions and certain material commercial contracts during the interim period. The tax receivable agreement will terminate upon closing, and no payments will be made under it in connection with the merger. If the merger is terminated, the company could still owe substantial payments under the tax receivable agreement. Other risks include the need to acquire new customers, retain and expand existing accounts, grow internationally, innovate the platform and manage the shift from licenses to SaaS. Foreign currency moves can also affect ARR and reported results. No customer accounted for more than 5% of total revenue for the year. The company plans to invest in scaling operations, research and development and international growth.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $163.7M | $154.3M | +6.1% | $132.5M | +23.6% |
| Gross profit | $114.3M | $105.1M | +8.8% | $88.5M | +29.1% |
| Gross margin | 69.8% | 68.1% | +1.7 pp | 66.8% | +3.0 pp |
| Research & development | $31.0M | $30.6M | +1.3% | $36.9M | -15.9% |
| Sales & marketing | $62.7M | $63.5M | -1.2% | $65.6M | -4.4% |
| General & administrative | $25.8M | $28.4M | -9.1% | $33.4M | -22.9% |
| Total operating expenses | $119.5M | $122.5M | -2.4% | $136.0M | -12.1% |
| Operating income (loss) | -$5.2M | -$17.5M | +70.0% | -$47.4M | +89.0% |
| Operating margin | -3.2% | -11.3% | +8.1 pp | -35.8% | +32.6 pp |
| Net income (loss) | $18.7M | -$11.5M | +262.3% | -$31.4M | +159.3% |
| Net margin | 11.4% | -7.5% | +18.8 pp | -23.7% | +35.1 pp |
Risks
The pending acquisition by affiliates of Hg is subject to HSR antitrust clearance and other conditions, with expected close in the first half of 2026. Failure or delay could depress Class A stock, leave significant transaction costs, and require a $207 million termination fee to Parent under certain circumstances.
During the pendency of the Mergers, the Merger Agreement restricts OneStream from incurring new debt, issuing shares, acquiring businesses, and entering certain material commercial contracts, and it cannot solicit alternative acquisition proposals. These restrictions may impair management's ability to respond to business and competitive pressures.
The announcement and pendency of the Mergers may cause current and prospective customers to delay purchases or buy from other providers, and may make it harder to maintain or establish customer and business partner relationships. Any such disruption could adversely affect business, cash flow, and results of operations.
Employee uncertainty about roles upon consummation of the Mergers may impair OneStream's ability to attract and retain key talent, including senior leaders, and may distract current employees, reducing productivity. This risk is heightened by the pending all-cash merger and the need to run the business during the pendency period.
Competitors or third parties may incorporate AI technology into their offerings more quickly or successfully than OneStream, impairing its ability to compete. OneStream also faces legal, regulatory, and reputational risk from AI outputs, including evolving laws such as the EU AI Act and potential intellectual property claims.
In 2025 OneStream began enhancing its pricing model to allow customers to buy products and solutions on an individual or bundled basis instead of the historical platform and seat-based model. This may change revenue or profitability, particularly in the short term, if customers purchase less expensive aggregate offerings.
OneStream faces intense competition from legacy providers such as Oracle and SAP and point providers such as Anaplan, Blackline, Wolters Kluwer, and Workday, many of which have greater resources and more advanced AI or machine learning capabilities. Competitive pressure could cause lower sales, price reductions, reduced margins, or loss of market share.
Customers have no obligation to renew subscriptions after the initial term, and current or future AI capabilities may reduce or replace customers' need for existing or future employees who are users of the platform. Lower retention or reduced user expansion would adversely affect revenue and results of operations.
Securities class action lawsuits and derivative lawsuits are often brought against public companies entering merger agreements, and litigation is currently pending against OneStream. Such matters may be time-consuming and expensive, distract management, and could prevent or delay completion of the Mergers.
The average sales cycle is four to eight months and can extend over years for large enterprises, with large individual sales sometimes slipping to later quarters or not occurring at all. This makes quarterly revenue, cash flows, and margins difficult to predict and manage.
Economic uncertainty, tariffs imposed by the U.S. or foreign governments, or other trade measures may cause customers to cut or delay information technology spending, with cuts potentially affecting OneStream disproportionately if its platform is viewed as discretionary. Deteriorating conditions could also lengthen sales cycles or affect customer retention.
Sales to U.S. federal, state, local, and foreign government entities and highly regulated organizations involve FedRAMP certification, procurement rules, audits, and budget cycles. The October 1, 2025 to November 12, 2025 government shutdown and pressure on the U.S. federal budget could delay or reduce government demand and contract awards.
OneStream relies on Microsoft-owned and operated data centers to deliver most of its cloud platform, and it does not control those facilities. Any disruption, capacity constraint, or failure to maintain the Microsoft relationship on commercially reasonable terms could cause service shortfalls, customer credits, or terminations.
KKR holds a majority of the voting power of OneStream's capital stock, and as of February 23, 2026, holders of Class C and Class D common stock, including KKR and the co-founder and CEO, collectively hold approximately 94% of voting power. KKR's interests may conflict with Class A stockholders, and it approved the Merger Agreement without other stockholder approval being required or sought.
If the Mergers are not completed and the Merger Agreement is terminated other than for an alternative Superior Proposal, OneStream will remain required to make payments under the TRA to TRA Members even after they exchange or redeem all LLC Units. These obligations could be substantial, reduce available cash flow, and delay or deter certain changes of control.
OneStream's rapid growth may not be sustainable or indicative of future growth, and it has a limited operating history at its current scale, making forecasting difficult. Management also states it may make long-term strategic decisions that do not maximize short-term revenue or profitability.
SaaS KPIs
All quarters →Free Cash Flow
Total Customers
Remaining Performance Obligations
Summary, forecast, risks and KPIs are extracted from OneStream, Inc.'s SEC filings for Q4 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.