ON24 2025 Q2 Earnings Loss Narrows but Revenue Falls Short

ON24 (ONTF) reported its fiscal 2025 Q2 earnings on Aug 8, 2025. The company’s results reflect a narrowing of losses but a decline in revenue compared to the same period last year. Despite falling short in top-line growth, ON24 showed signs of financial improvement and provided cautiously optimistic guidance for the remainder of 2025.

Revenue
ON24 reported total revenue of $35.33 million for Q2 2025, representing a 5.4% year-over-year decline from $37.35 million in Q2 2024. Subscription and other platform revenue, the company’s core offering, accounted for the majority of the top line with $32.44 million. Professional services added $2.89 million, contributing to the full quarter’s revenue.

Earnings/Net Income
The company reduced its net loss to $7.28 million, or $0.17 per share, in Q2 2025, from a net loss of $11.18 million, or $0.27 per share, in Q2 2024. This marked a 34.9% reduction in the net loss and a 37% improvement in earnings per share, indicating early signs of operational and financial stabilization. However, the continued losses highlight ongoing challenges.

Price Action
Shares of ON24 edged up 2.28% during the latest trading day and rose 4.67% over the most recent full trading week. However, the stock has fallen 8.02% month-to-date, reflecting mixed investor sentiment.

Post-Earnings Price Action Review
The post-earnings strategy of buying ON24 shares and holding for 30 days has underperformed significantly, delivering a return of -55.32%, compared to a benchmark of 47.91%. The excess return was -103.23%, and the compound annual growth rate over three years was -23.80%. While the maximum drawdown was reported at 0.00%, the overall performance remained lackluster, underscoring the stock’s volatility and uncertain investor outlook.

CEO Commentary
Sharat Sharan, CEO of ON24, expressed optimism about the Q2 results, noting that they exceeded expectations. He highlighted improvements in annual recurring revenue (ARR), a four-year high in gross retention rate, and positive operating and free cash flow. The CEO emphasized the company’s progress in key financial and customer metrics for the first half of 2025 and expressed confidence in delivering ARR growth by year-end.

Guidance
For Q3 2025, ON24 expects total revenue to range between $33.6 million and $34.2 million, with Core Platform revenue between $33.0 million and $33.6 million. The company forecasts a non-GAAP operating loss of $1.3 million to $0.7 million and non-GAAP net income per share of $0.00 to $0.02. For full-year 2025, ON24 anticipates total revenue between $137.7 million and $138.7 million, with a non-GAAP operating loss of $5.2 million to $3.8 million and non-GAAP net income per share of $0.02 to $0.05.

Additional News
Recent Nigerian news highlights several developments unrelated to ON24. The stock market shed N516 billion in value after a bullish rally. In politics, Audu Ogbeh, a former minister and ex-PDP chairman, passed away at the age of 78. Meanwhile, the Nigerian used car market is booming as owners sell private vehicles amid economic hardship. In business, Sterling HoldCo directors invested N341.6 million in company shares, and Nigeria’s foreign direct investment (FDI) dropped by 70% over three months. Additionally, the Akwa Ibom State Police Command arrested a ritualist accused of providing charms to robbers.