ON24 2025 Q3 Earnings Beats Revenue Estimates, Narrows Net Loss by 44.1%

ON24 (ONTF) reported Q3 2025 earnings with revenue exceeding estimates by 2.2% and a 44.1% reduction in net loss. The company raised full-year revenue and bottom-line guidance, reflecting improved profitability and operational efficiency.

Revenue

Total revenue for Q3 2025 was $34.60 million, a 4.7% decline year-on-year. Subscription and other platform services contributed $31.99 million, while professional services revenue amounted to $2.62 million. The segment breakdown highlights a continued reliance on recurring revenue streams, though professional services saw a marginal dip compared to prior periods.

Earnings/Net Income

ON24 narrowed its net loss to $6.38 million in Q3 2025, a 44.1% improvement from $11.41 million in the same period last year. Adjusted EPS reached $0.03, surpassing estimates by $0.02. Despite these gains, the company has reported losses for six consecutive years, underscoring persistent financial challenges.

Post-Earnings Price Action Review

The recent revenue beat and positive market reaction, coupled with analyst adjustments and strategic initiatives, suggest a viable 30-day holding strategy. Following the earnings release, shares surged 17.3% to $5.79, reflecting optimism about AI-driven growth and a LinkedIn partnership. Analysts at Canaccord Genuity and Baird raised price targets to $6.00, signaling cautious optimism. While ON24’s gross margin of 74.42% and strong liquidity position (current ratio of 2.62) support stability, risks include a 3.4% projected revenue decline over the next 12 months and competitive pressures. Investors should monitor AI adoption, cost reduction efforts, and the potential impact of acquisition activity on long-term viability.

CEO Commentary

Sharat Sharan, CEO of ON24, emphasized progress in AI initiatives, regulated industry expansion, and operational efficiency. He highlighted that nearly 20% of customers now use ON24’s AI solutions, with LinkedIn collaboration driving next-generation event marketing. The CEO underscored momentum in enhancing AI-enabled platform leadership and strategic partnerships.

Guidance

ON24 expects Q4 2025 revenue of $33.9M–$34.5M (Core Platform: $33.3M–$33.9M), with non-GAAP operating loss of $0.8M–$0.2M and net income of $0.01–$0.02 per share. For FY2025, total revenue guidance is $138.6M–$139.2M, with non-GAAP net income of $0.05–$0.06 per share. The company raised full-year guidance, reflecting improved profitability and operational efficiency.

Additional News

Recent developments include Canaccord Genuity and Baird raising ON24’s price targets to $6.00 from $5.00, maintaining “Hold” and “Neutral” ratings respectively. The company is also exploring acquisition interests, with Goldman Sachs advising the board on preliminary discussions. Additionally, ON24 announced a transformative partnership with LinkedIn, expected to enhance digital events and customer engagement. These moves signal strategic growth opportunities amid ongoing efforts to improve profitability.