Onestream, Inc. Class A ((OS)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for OneStream, Inc. Class A was marked by a generally positive sentiment, reflecting strong revenue growth, improvements in free cash flow, and significant advancements in AI technology adoption. Despite these positive developments, the company acknowledged challenges in the U.S. federal public sector that could affect future revenue. Overall, the positive aspects of the earnings call seemed to outweigh the negatives.
Strong Revenue and Subscription Growth
OneStream reported a robust 26% year-over-year increase in total revenue, reaching $148 million. Subscription revenue was a standout, growing by 30% year-over-year to $134 million, highlighting the company’s successful expansion in this area.
Impressive Free Cash Flow Increase
The company saw a remarkable 281% increase in free cash flow for the second quarter, amounting to $29 million. This significant improvement underscores OneStream’s effective cash management strategies and operational efficiency.
International Business Performance
International business revenue grew by an impressive 34% year-over-year, now contributing 33% to OneStream’s total revenue. This growth indicates the company’s successful penetration and expansion in global markets.
AI Innovation and Adoption
OneStream’s AI bookings surged by over 60% year-over-year for the first half of 2025. The SensibleAI Forecast and SensibleAI Studio products have shown strong early adoption, positioning the company as a leader in AI innovation.
Recognition and Market Leadership
OneStream achieved 27 top rankings and 56 leading positions in BARC’s annual planning survey, reinforcing its status as a market leader and its commitment to excellence in its offerings.
Strong Customer Expansion
The company ended the quarter with nearly 1,700 customers, marking a 14% year-over-year increase. Notably, more than 60% of bookings were from new customers, demonstrating OneStream’s expanding market reach.
Challenges in U.S. Federal Public Sector
OneStream faces uncertainty in the U.S. federal public sector due to spending and restructuring challenges, which are expected to impact Q3 revenue growth. This remains a critical area for the company to address moving forward.
License Revenue Decline
License revenue saw a decline of $900,000 compared to last year, primarily due to successful SaaS conversions. This shift reflects the company’s strategic focus on subscription-based models.
Forward-Looking Guidance
For the third quarter, OneStream expects total revenue to range between $147 million to $149 million, with subscription revenue anticipated to grow at least 25% year-over-year. Billings are projected between $160 million to $162 million, and free cash flow is expected to be breakeven to slightly negative. The company has raised its full-year 2025 revenue guidance to between $586 million to $590 million, expressing confidence in its pipeline and long-term outlook despite uncertainties in the U.S. federal public sector.
In conclusion, OneStream’s earnings call reflected a positive outlook with strong revenue growth, impressive cash flow improvements, and significant advancements in AI technologies. While challenges in the U.S. federal public sector pose some risks, the company’s strategic initiatives and market leadership position it well for future growth.