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Jun 30
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.
Confluent
Confluent
Confluent Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comServices Revenue
CapyFin.com 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.
- Amortization of stock-based compensation capitalized in internal-use software is highly variable.
- These unpredictable factors are expected to significantly impact future GAAP financial results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income