Confluent's Revenue Falls Short, Sets New Low Amidst Weak Outlook

Confluent (CFLT) hits a new low of $17.51 after missing Q2 revenue expectations, growing total revenues by 20% to $282mln, but below consensus forecast. Net loss narrowed by 8.8% to $81.95mln. Q3 subscription revenues expected between $281-$282mln, and full-year revenues between $1.105-$1.11bln.

Data infrastructure software company Confluent (NASDAQ:CFLT) reported its Q2 2025 results, revealing a 20.1% year-on-year revenue growth to $282.3 million. However, the company missed Wall Street’s revenue expectations, with its stock trading down 30.7% to $18.28 immediately following the announcement.

Despite the revenue growth, Confluent's full-year subscription revenue guidance for $1.11 billion was below analysts' estimates, and its subscription revenue guidance for Q3 2025 was also a miss, at $282 million compared to analysts’ estimates of $281.5 million. The company's non-GAAP profit of $0.09 per share was in line with analysts' consensus estimates.

Confluent's enterprise customer base grew to 1,439 customers paying more than $100,000 annually, up 10% year over year. The company's operating margin improved to -34.2% from -46.1% in the same quarter last year, while its free cash flow was $11.01 million, up from -$32.99 million in the previous quarter.

Looking ahead, Confluent expects Q3 2025 subscription revenues between $281-$282 million and full-year revenues between $1.105-$1.11 billion. The company's stock has been volatile, trading between $17.28 and $20.28 in the past year.

Confluent's stock price drop can be attributed to the company's revenue guidance miss and the slowdown in revenue growth expected over the next 12 months. However, the company's long-term performance, with an annualized revenue growth of 29.7% over the last three years, suggests that it remains a strong player in the data infrastructure software market.

References:
[1] https://finance.yahoo.com/news/confluent-nasdaq-cflt-surprises-q2-211233705.html
[2] https://investors.confluent.io/news-releases/news-release-details/confluent-announces-second-quarter-2025-financial-results