OneStream's Q2 Results: Revenue Up 26%, Free Cash Flow Jumps 281%

OneStream, a software company, reported a 26% YoY increase in revenue and a 281% jump in free cash flow for Q2. The CEO emphasized the importance of "deterministic" AI solutions that provide transparent, trusted data for CFOs, rather than subjective interpretations. The company aims to continue its growth and strengthen profitability throughout the year.

OneStream, a software provider focused on modernizing finance through unified platforms for the office of the CFO, reported robust financial results for Q2 2025. The company's total revenue (GAAP) rose 26% year over year to $147.6 million, surpassing GAAP revenue expectations by $6.58 million [1]. This growth was driven by a 30% increase in subscription revenue, a key performance measure for recurring sales, to $133.6 million.

Non-GAAP earnings per share reached $0.05, well ahead of the $0.01 non-GAAP analyst estimate. The company also achieved $29.4 million in free cash flow, a 282% increase from the prior year [1]. However, non-GAAP profitability moved into positive territory, while GAAP losses widened due to a sharp rise in equity-based compensation.

The CEO emphasized the importance of "deterministic" AI solutions that provide transparent, trusted data for CFOs, rather than subjective interpretations. The company aims to continue its growth and strengthen profitability throughout the year. OneStream's platform, which integrates AI and machine learning, empowers customers to streamline financial processes, spot risks sooner, and make better decisions.

Notable developments included the official release of Version 9 of the core finance platform and the integration with Microsoft Fabric's analytics tools. Additionally, the company announced the acquisition of several productivity solutions from partners, such as Allocations and Analytic Drill-Down, which add extensibility and workflow efficiency to the main platform.

OneStream's customer base grew to over 1,600 organizations, including about 17% of Fortune 500 companies. The company now operates in 45 countries, with international business showing 40% year-over-year growth in Q1 2025. A strategic partnership with Girls Who Code was also announced, supporting diversity and future talent development initiatives [1].

Looking ahead, 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, with total revenue between $586 million and $590 million for FY2025. The forecast for non-GAAP net income per share is $0.07 to $0.15 [1].

References:
[1] https://www.nasdaq.com/articles/onestream-os-q2-revenue-jumps-26