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Jan 31

Couchbase Q4 2025 Earnings Report

Expected Revenue:$55.6M
+19.2% YoY
Expected EPS:-$0.08
+42.9% YoY

Key Takeaways

Couchbase delivered a solid Q4 2025 performance, exceeding expectations in both revenue and adjusted EPS. The company reported record free cash flow and net new ARR, driven by strong subscription revenue growth. Operating losses narrowed, and gross margin remained high.

Total revenue increased by 10% year-over-year to $54,922,000.

Subscription revenue grew 10% year-over-year to $52,781,000.

Operating loss improved from $22,593,000 in Q4 2024 to $15,833,000 in Q4 2025.

Free cash flow turned positive at $3,983,000 compared to negative $7,735,000 in Q4 2024.

Total Revenue
$54.9M
EPS
$0
Gross Margin
88.6%
Previous year: 89.7%
-1.2%
Non-GAAP Gross Margin
89.4%
Previous year: 90.4%
-1.1%
Annual Recurring Revenue
$238M
Previous year: $204M
+16.5%
Gross Profit
$48.7M
Cash and Equivalents
$30.5M
Free Cash Flow
$3.98M
Total Assets
$261M

Couchbase

Couchbase

Couchbase Revenue by Segment

Forward Guidance

Couchbase expects continued revenue growth and improved operating efficiency in fiscal 2026, with revenue projected to reach up to $232M.

Positive Outlook

  • Revenue expected to grow to $228M-$232M in FY2026.
  • ARR forecasted to increase to $273.6M-$278.6M.
  • Non-GAAP operating loss expected to improve to $8.4M-$13.4M.
  • Increased adoption of Capella AI Services expected to drive growth.
  • New integrations with NVIDIA AI and Google Cloud enhancing product offerings.

Challenges Ahead

  • Continued non-GAAP operating loss projected for FY2026.
  • Potential foreign exchange impacts on ARR and revenue growth.
  • Intense competition in the AI and cloud database market.
  • Ongoing investments in R&D may pressure margins.
  • Macroeconomic uncertainties could affect customer spending.