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Jun 30, 2025
Confluent Q2 2025 Earnings Report
Confluent announced its financial results for the second quarter of 2025, reporting solid top-line growth and continued margin expansion.
Key Takeaways
Confluent delivered a solid second quarter in 2025, with total revenue reaching $282.3 million, a 20% increase year-over-year. The growth was primarily driven by a 28% year-over-year increase in Confluent Cloud revenue to $151 million and a 21% increase in subscription revenue to $271 million. The company also reported positive non-GAAP operating income and adjusted free cash flow, indicating improved profitability and liquidity.
Total revenue for Q2 2025 was $282.3 million, marking a 20% year-over-year increase.
Subscription revenue grew by 21% year-over-year to $270.8 million, while Confluent Cloud revenue increased by 28% to $151 million.
The company achieved a non-GAAP operating income of $17.8 million and non-GAAP net income per diluted share of $0.09.
Adjusted free cash flow for the quarter was $11.0 million, demonstrating improved cash generation.
Revenue by Segment
Forward Guidance
For the third quarter and fiscal year 2025, Confluent expects continued growth in subscription revenue and improved non-GAAP operating margin and non-GAAP net income per diluted share.
Positive Outlook
- Q3 2025 Subscription Revenue expected to be between $281 million and $282 million.
- FY 2025 Subscription Revenue expected to be between $1.105 billion and $1.11 billion.
- Q3 2025 Non-GAAP Operating Margin expected to be approximately 7%.
- FY 2025 Non-GAAP Operating Margin expected to be approximately 6%.
- Q3 2025 Non-GAAP Net Income Per Diluted Share expected to be between $0.09 and $0.10.
Challenges Ahead
- Reconciliation of forward-looking non-GAAP measures to GAAP is not available without unreasonable effort due to high variability and complexity of certain items.
- Stock-based compensation-related charges are directly impacted by timing of employee stock transactions and unpredictable stock price fluctuations.
- Employer payroll taxes on employee stock transactions are difficult to predict.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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