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Jan 31

C3.ai Q3 2025 Earnings Report

C3.ai reported strong Q3 2025 revenue growth but continued losses.

Key Takeaways

C3.ai posted Q3 2025 revenue of $98.8 million, a 26% increase year-over-year, driven by growth in subscription and professional services revenue. However, the company reported a net loss of $80.2 million, with an adjusted net loss per share of $0.12. Despite the losses, C3.ai expanded its strategic partnerships and grew its contract pipeline significantly.

Revenue grew 26% year-over-year to $98.8 million.

Subscription revenue rose 22% to $85.7 million, comprising 87% of total revenue.

Net loss widened to $80.2 million, with a GAAP loss per share of $0.62.

Cash balance remained strong at $724.3 million, ensuring financial flexibility.

Total Revenue
$98.8M
Previous year: $78.4M
+26.0%
EPS
-$0.12
Previous year: -$0.13
-7.7%
Gross Margin
59%
Previous year: 58%
+1.7%
Gross Profit
$58.3M
Previous year: $45.3M
+28.8%
Cash and Equivalents
$724M
Previous year: $115M
+532.2%
Free Cash Flow
-$22.4M
Previous year: -$45.1M
-50.4%
Total Assets
$1.06B
Previous year: $1.06B
-0.8%

C3.ai

C3.ai

C3.ai Revenue by Segment

Forward Guidance

C3.ai expects continued revenue growth in Q4 2025, with a projected range of $103.6M - $113.6M, while still operating at a non-GAAP loss from operations between $30M - $40M.

Positive Outlook

  • Projected revenue growth between $103.6M and $113.6M in Q4 2025.
  • Continued expansion of strategic partnerships with Microsoft, AWS, and McKinsey.
  • Strong demand for enterprise AI solutions driving subscription growth.
  • Growing contract pipeline with 66 agreements closed in Q3 2025.
  • Sustained investment in generative AI technology for enterprise applications.

Challenges Ahead

  • Persistent net losses despite revenue growth.
  • Non-GAAP loss from operations projected between $30M and $40M in Q4.
  • High operating expenses, particularly in sales and R&D.
  • Uncertainty around customer adoption cycles and pilot conversions.
  • Macroeconomic conditions may impact enterprise AI spending.

Revenue & Expenses

Visualization of income flow from segment revenue to net income