OS — OneStream, Inc. Class A Common Stock

Summary of OneStream's Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• Subscription Revenue: Increased by 27% year-over-year to $141 million.
• Total Revenue: Grew 19% year-over-year to $154 million.
• Billings: Rose 20% year-over-year to $178 million, with a trailing 12-month growth of 21%.
• License Revenue: Declined 64% to $4 million due to contract rationalization and SaaS conversions.
• Professional Services Revenue: Increased 38% year-over-year to $9 million.
• Free Cash Flow: Reported at $5 million for the quarter, totaling $70 million for the first nine months, up 107% year-over-year.
• Non-GAAP Operating Income: $9.3 million (6% of revenue), up 69% from the previous year.
• Non-GAAP Net Income: $15.2 million, with earnings per share flat at $0.08.
• Customer Base: Grew to 1,739 customers, a 13% increase year-over-year.

2. Strategic Updates and Business Highlights

• AI Initiatives: Strong momentum in AI bookings, up 60% year-over-year, with significant customer interest in SensibleAI Forecast and new AI offerings.
• Product Developments: Launched SensibleAI Studio, doubling available algorithms to 60, and moved SensibleAI agents to limited availability.
• Market Recognition: OneStream was recognized as a leader in the 2025 Record to Report Buyers Guide by ISG Research.
• International Growth: International revenue surged 37% year-over-year, driven by strong performance in Europe and legacy system replacements.
• Federal Business: Renewed contracts with all but one federal agency, which was discontinued, and added a new federal customer.

3. Forward Guidance and Outlook

• Q4 2025 Guidance: Expected total revenue between $156 million and $158 million, with non-GAAP operating margin of 4% to 6%.
• Full Year 2025 Guidance: Total revenue projected between $594 million and $596 million, with non-GAAP net income per share between $0.15 and $0.19.
• 2026 Outlook: Management expressed confidence in meeting current Wall Street consensus for revenue and operating income, bolstered by a strong pipeline and innovative product portfolio.

4. Bad News, Challenges, or Points of Concern

• Federal Business Headwinds: Challenges in the U.S. federal market due to contract rationalization and the impact of the government shutdown on spending.
• License Revenue Decline: Significant drop in license revenue indicates a shift towards SaaS, which may affect short-term revenue metrics.
• Competitive Pressures: Ongoing competition from legacy systems like Hyperion and SAP, with a focus on replacing outdated solutions.

5. Notable Q&A Insights

• Federal Dynamics: Management remains optimistic about future opportunities in the federal sector despite recent challenges, anticipating recovery as they move into 2026.
• AI Deployment: Customers are increasingly looking to deploy AI in finance, with OneStream well-positioned to meet this demand through its innovative solutions.
• Sales Pipeline: The sales team is focused on expanding coverage and scaling product lines, particularly in EMEA, where significant growth has been observed.
• Agentic Offerings: Early feedback on new agentic offerings has been positive, with interest in their ability to enhance productivity and decision-making in finance.

Overall, OneStream's Q3 2025 results reflect strong growth and strategic advancements, particularly in AI and international markets, despite facing challenges in the federal sector and a decline in license revenue. The outlook for Q4 and 2026 appears positive, driven by a robust product pipeline and customer demand for modern financial solutions.