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Sep 30, 2025
Confluent Q3 2025 Earnings Report
Confluent reported steady revenue growth and margin improvement in Q3 2025, supported by strong performance in Confluent Cloud and improved operating efficiency.
Key Takeaways
Confluent delivered strong Q3 results with growing Confluent Cloud adoption, positive non-GAAP operating income, and improved margins, although the company still posted a GAAP net loss.
Confluent Cloud revenue reached $161M as cloud adoption accelerates.
Subscription revenue grew to $286.3M, driving total revenue to $298.5M.
Company achieved non-GAAP operating income of $29.1M.
GAAP net loss narrowed to $66.5M, with continued focus on profitability.
Revenue by Segment
Forward Guidance
Confluent expects continued revenue growth in Q4 2025 and maintains stable margin guidance, driven by Confluent Cloud adoption and improving operational efficiency.
Positive Outlook
- Subscription revenue expected between $295.5M and $296.5M
- FY25 subscription revenue guidance raised to $1.1135B–$1.1145B
- Non-GAAP net income per share expected at $0.09–$0.10 in Q4
- Non-GAAP operating margin expected around 7% for Q4 and FY25
- Strong RPO growth signals demand visibility
Challenges Ahead
- GAAP net losses continue despite top-line growth
- Free cash flow remains modest relative to revenue
- Total revenue guidance not explicitly broken out
- Limited regional revenue detail provided
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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