OneStream (OS -5.00%), a software provider focused on modernizing finance through unified platforms for the office of the CFO, reported results for Q2 2025 on August 7, 2025. The company delivered GAAP revenue of $147.6 million, topping GAAP forecasts of $141.0 million, and non-GAAP earnings per share of $0.05, compared to analyst estimates of $0.01. Subscription revenue, a key performance measure for recurring sales, jumped 30% year-over-year to help drive the top-line strength. While non-GAAP profitability moved into positive territory, A sharp rise in equity-based compensation led to wider GAAP losses, showing mixed signals on overall profitability.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.05 | $0.01 | N/A | n/a |
| Revenue | $147.6 million | $141.0 million | $117.5 million | 26 % |
| Subscription Revenue | $133.6 million | $103.1 million | 30 % | |
| Operating Income (Non-GAAP) | $1.6 million | ($8.7 million) | N/A | |
| Free Cash Flow (Non-GAAP) | $29.4 million | $7.7 million | 282.0 % |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Strategic Focus
OneStream delivers a cloud-based financial platform designed for corporate finance teams. Its tools replace fragmented, legacy systems with a unified solution for reporting, planning, forecasting, and analytics. The platform aims to help chief financial officers and their teams gain real-time insights and respond quickly to changing business needs.
The company's main focus today is on the modernization of the office of the CFO. By integrating artificial intelligence (AI) and machine learning, it empowers customers to streamline financial processes, spot risks sooner, and make better decisions. Growth in ecosystem partnerships and driving international expansion represent key strategic directions, alongside continued investment in research and development for platform innovation.
Quarter Highlights and Underlying Drivers
Several notable developments defined the latest quarter for OneStream. Total revenue (GAAP) reached $147.6 million, marking a 26% increase from the prior year and coming in ahead of analyst projections by $6.6 million, or 4.7% (GAAP). Subscription revenue was especially strong, rising 30% to $133.6 million.
Non-GAAP earnings per share moved to $0.05 from a loss in the prior year period, indicating progress on operational profitability. The company also achieved $1.6 million in non-GAAP operating income, swinging from an $8.7 million non-GAAP loss in Q2 2024. However, on a GAAP basis, profit trends moved the other way: operating losses widened to $32.2 million from $11.6 million in Q2 2024, due mostly to a significant jump in equity-based compensation expense of $31.4 million. This expense totaled $31.4 million, a sharp increase from $2.7 million in Q2 2024, and represented more than 21 % of total revenue for the period.
Cash generation was another highlight. Operating cash flow (GAAP) increased to $29.7 million, compared with $8.1 million in Q2 2024. Cash reserves (GAAP) climbed, closing the period at $652.1 million as of June 30, 2025, up from $544.2 million at year-end 2024.
From a product perspective, the official release of Version 9 of the core finance platform and the integration with Microsoft Fabric's analytics tools show ongoing progress in expanding product capabilities. Among newly launched offerings, SensibleAI solutions—an AI-enabled product family for planning, forecasting, close, consolidation, and analytics—are now embedded across the platform. At this year’s Splash user conference, OneStream rolled out modules such as SensibleAI Agents, Studio, Account Reconciliations, and an upgraded Forecast offering, reinforcing its stated aim to deliver measurable value for finance teams. The company also acquired several productivity solutions from partners, such as Allocations and Analytic Drill-Down, which add extensibility and workflow efficiency to the main platform.
Customer growth and ecosystem expansion also stood out. The customer base is now over 1,600 organizations, including about 17% of Fortune 500 companies as of August 2025. The global partner network grew to more than 300, and OneStream now operates in 45 countries. These metrics highlight expanding reach, particularly as international business showed 40% year-over-year growth in Q1 2025 (the Q2 breakdown was not disclosed). A strategic partnership with Girls Who Code was announced, supporting diversity and future talent development initiatives. In industry analyst surveys, the platform secured 27 number one rankings and 56 leading positions, especially in areas of planning and analytics, according to the 2025 Planning Survey conducted by the Business Application Research Center (BARC).
Not all metrics improved, however. License revenue (GAAP) fell to $6.0 million, down from $6.91 million in Q2 2024, reflecting the company’s move away from one-time sales toward recurring subscriptions.
Looking Ahead: Guidance and Key Areas to Watch
Management provided guidance for Q3 and the full fiscal 2025 year. Total revenue for Q3 2025 is expected in the range of $147 million to $149 million. Management expects total revenue between $586 million and $590 million for FY2025, with a non-GAAP operating margin in the 1% to 3% range. The forecast for non-GAAP net income per share is $0.07 to $0.15. Equity-based compensation continues to weigh on GAAP results, with full-year costs expected between $120 million and $125 million. No reconciliation of non-GAAP guidance to GAAP was provided, a common practice for high-growth software companies citing the unpredictable nature of equity incentives.
Despite beating Q2 2025 revenue expectations (GAAP), full-year revenue guidance was kept unchanged, reflecting a cautious approach amid what management called “near-term public sector dynamics.” Cash generation remains a bright spot, but continued high equity-based compensation and operating expense growth signal that true margin expansion may be delayed. Investors are advised to keep an eye on trends in equity-based compensation, as well as further customer adoption of AI-enabled products and the sustainability of international growth. OS does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
