Summary
Snowflake's total revenue for fiscal 2025 second quarter rose 28.9% year over year to $868.8 million. Gross profit increased 27.5% to $580.7 million. Gross margin was 66.8%, down 0.8 percentage points from the prior-year quarter. The operating loss widened to $355.3 million, and net loss attributable to Snowflake Inc. widened to $316.9 million. Diluted EPS was -$0.95, down 37.7%. Operating margin was -40.9%, which represented a 1.4 percentage point improvement. For the first six months of fiscal 2025, revenue rose 30.8% to $1.70 billion, gross profit rose 30.7% to $1.14 billion, and gross margin was 67.0%, flat. The year-to-date operating loss widened to $703.9 million, net loss widened to $633.9 million, and diluted EPS was -$1.90, down 36.7%. Year-to-date operating margin was -41.5%, up 1.6 percentage points.
Operating cash flow for the quarter was $69.9 million, down 16.0% year over year. For the six months, operating cash flow was $425.3 million, up 11.2%. Capital expenditures were $5.0 million in the quarter, down 19.9%, and $21.6 million for the six months, up 62.5%. Free cash flow, a non-GAAP measure, was $58.8 million in the quarter, and adjusted free cash flow was $66.0 million. Deferred revenue, current portion, was $1.85 billion, up 21.4% year over year. Remaining performance obligations were $5.2 billion, up 48.6% year over year. Management said it expects about 50% of RPO to be recognized as revenue in the twelve months ending July 31, 2025. The weighted-average remaining life of capacity contracts was 2.2 years as of July 31, 2024. For the third quarter of fiscal 2025, management guided non-GAAP operating income margin to 3%. For full-year fiscal 2025, management guided non-GAAP product gross margin to 75%, non-GAAP operating income margin to 3%, and adjusted free cash flow margin to 26%. Weighted-average diluted shares used in computing net income per share are guided to 359 million for the third quarter and 361 million for the full year.
Net revenue retention rate was 127% as of July 31, 2024, down from 131% as of January 31, 2024. The company had 510 customers with trailing 12-month product revenue greater than $1 million, up from 399 a year earlier, and 736 Forbes Global 2000 customers. Total customers were 10,249 as of July 31, 2024, up from 9,424 as of January 31, 2024. In June 2024, Snowflake made Iceberg tables generally available, allowing customers to use its platform for compute services without requiring storage. Management said the quarter was hallmarked by innovation and product delivery, with early traction in new AI products. The company also authorized an additional $2.5 billion under its stock repurchase program and extended the program's expiration from March 2025 to March 2027.
The quarter's results came amid macroeconomic conditions that management said have caused and may continue to cause customers to rationalize budgets, prioritize cash flow management, and optimize consumption. Those pressures include inflation, high interest rates, and fluctuations or volatility in capital markets or foreign currency exchange rates. Customers have also shortened contract durations, and some have reduced storage through shorter data retention policies. Snowflake faces competition in a rapidly changing environment, and its growth depends on attracting new customers and expanding use of its platform by existing customers. The company also flagged risks related to cybersecurity threat activity directed at customers, potential reputational or financial damage, and the need to develop new products and enhance existing ones. Management expects the net revenue retention rate to decrease over the long term as customers with extended platform use become a larger portion of the customer base. Other risks include the possibility that customer adoption of AI products and new capabilities does not lead to durable consumption, and the impact of new features such as Iceberg tables and tiered storage pricing on consumption.
Despite strong top-line growth, GAAP profitability remains negative. The quarter's operating loss and net loss both widened compared with the prior-year quarter. The company generated positive operating cash flow in the quarter and for the six months, though quarterly operating cash flow declined year over year. Management expects positive net cash flows from operating activities for the fiscal year ending January 31, 2025. The company continues to invest heavily in research and development, sales and marketing, and AI Technology.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2025 | Q1 FY2025 | QoQ | Q2 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $868.8M | $828.7M | +4.8% | $674.0M | +28.9% |
| Gross profit | $580.7M | $556.2M | +4.4% | $455.6M | +27.5% |
| Gross margin | 66.8% | 67.1% | -0.3 pp | 67.6% | -0.8 pp |
| Research & development | $437.7M | $410.8M | +6.5% | $314.0M | +39.4% |
| Sales & marketing | $400.6M | $400.8M | -0.0% | $343.3M | +16.7% |
| General & administrative | $97.8M | $93.1M | +5.0% | $83.7M | +16.7% |
| Total operating expenses | $936.0M | $904.8M | +3.5% | $741.0M | +26.3% |
| Operating income (loss) | -$355.3M | -$348.6M | -1.9% | -$285.4M | -24.5% |
| Operating margin | -40.9% | -42.1% | +1.2 pp | -42.3% | +1.5 pp |
| Net income (loss) | -$317.8M | -$317.8M | +0.0% | -$227.3M | -39.8% |
| Net margin | -36.6% | -38.4% | +1.8 pp | -33.7% | -2.8 pp |
| Diluted EPS | -$0.95 | -$0.95 | ±$0.00 | -$0.69 | -$0.26 |
| Customers | 2 | — | — | — | — |
Risks
In May 2024, a threat actor potentially accessed a number of customers' Snowflake accounts after those customers failed to fulfill shared responsibility obligations such as implementing MFA and network access policies. Snowflake faces multiple lawsuits, regulatory actions and investigations, and Congressional inquiries relating to these incidents, with potential for negative publicity, customer churn, and indemnification claims.
Adverse macroeconomic conditions have caused customers to rationalize budgets, prioritize cash flow management through shortened contract duration, and optimize consumption including reducing storage via shorter data retention policies. Net revenue retention rate decreased to 127% as of July 31, 2024 from 131% as of January 31, 2024 and 142% as of July 31, 2023, and the company states revenue growth rate has slowed in recent periods.
Snowflake is investing significantly in AI Technology, including generative AI, but competitors may develop and adopt AI faster due to greater resources. Access to GPUs is in high demand, and customer use of AI Technology depends on evolving regulatory standards, internal compliance reviews, and acceptable contractual terms.
A substantial majority of Snowflake's business runs on AWS, and AWS, Azure, and GCP are both its primary public cloud providers and competitors. These providers could bundle competing products, provide unfavorable pricing, or exclude Snowflake from opportunities; support for open data formats and Iceberg tables generally available June 2024 may also reduce switching costs and revenue if not offset by new workloads.
Executive turnover includes Frank Slootman's February 2024 retirement as CEO and Grzegorz Czajkowski's July 2024 resignation. Since the beginning of fiscal year 2025, the stock price has declined significantly, which may impair recruitment and retention because equity awards have less perceived value and may require additional equity or cash compensation.
Operating loss widened to $355.3 million in FY2025 Q2 from $285.4 million in FY2024 Q2, and net loss attributable to Snowflake widened to $316.9 million from $226.9 million. Total stock-based compensation increased to $356.0 million from $299.7 million, and research and development expenses rose 39% year over year.
Sales to large customers involve longer sales cycles, stronger customer leverage on pricing, and more extensive compliance and vendor diligence; consumption growth from large enterprises has historically taken longer than from smaller enterprises. Sales and marketing expenses increased 17% in FY2025 Q2 and 19% year to date, and the company is compensating more sales personnel based on consumption.
Snowflake is expanding into highly regulated markets such as financial services, healthcare, and the public sector, which adds procurement, budget, delay, contract termination, data sovereignty, and compliance risks beyond those in other markets.
Other income (expense), net decreased $12.0 million in FY2025 Q2 to negative $7.9 million, and decreased $30.8 million year to date, primarily due to increased impairments on strategic investments in non-marketable equity securities.
SaaS KPIs
All quarters →Net Revenue Retention Rate
Total Customers
Customers with Trailing 12-Month Product Revenue Greater than $1 Million
Forbes Global 2000 Customers
Customers with Trailing 12-Month Product Revenue Greater than $5 Million
Customers with Trailing 12-Month Product Revenue Greater than $10 Million
Summary, forecast, risks and KPIs are extracted from Snowflake 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 6, 2026.