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Jun 30
ON24 Q2 2025 Earnings Report
ON24's Q2 2025 financial results exceeded expectations with improved ARR, highest gross retention rate in four years, and positive operating and free cash flow.
Key Takeaways
ON24 reported a strong second quarter in 2025, surpassing expectations with total revenue of $35.3 million. The company achieved its sixth consecutive quarter of positive operating and free cash flow, alongside record-high gross retention and an increased percentage of ARR from multi-year agreements. These results indicate significant improvements across key financial and customer metrics compared to the previous year, positioning ON24 for ARR growth by year-end.
Total revenue reached $35.3 million, exceeding expectations for the quarter.
Achieved positive operating cash flow of $2.6 million and free cash flow of $2.1 million for the sixth consecutive quarter.
Recorded the highest gross retention rate in the past four years, indicating strong customer satisfaction and loyalty.
Set a new record for the percentage of Annual Recurring Revenue (ARR) derived from multi-year agreements, reflecting increased customer commitment.
ON24
ON24
ON24 Revenue by Segment
Revenue by Segment
Core Platform Revenue
CapyFin.comVirtual Conference Revenue
CapyFin.com Forward Guidance
For the third quarter of 2025, ON24 expects total revenue between $33.6 million and $34.2 million, with Core Platform Revenue ranging from $33.0 million to $33.6 million. Non-GAAP operating loss is projected to be between $1.3 million and $0.7 million, and non-GAAP net income per share is expected to be $0.00 to $0.02. For the full year 2025, total revenue is anticipated to be between $137.7 million and $138.7 million, with Core Platform Revenue between $135.2 million and $136.2 million. Non-GAAP operating loss for the full year is expected to be $5.2 million to $3.8 million, and non-GAAP net income per share is projected to be $0.02 to $0.05.
Positive Outlook
- Expected continued positive non-GAAP net income per share for Q3 and full year 2025.
- Anticipated strong Core Platform Revenue contribution to overall revenue for both Q3 and full year 2025.
- Guidance suggests a narrowing of non-GAAP operating loss for Q3 2025 compared to Q2 2025.
- Full year 2025 revenue guidance indicates continued growth over the previous year.
- The company expects to maintain approximately 45 million diluted shares outstanding, suggesting stable share count.
Challenges Ahead
- Projected total revenue for Q3 2025 is lower than Q2 2025 actual revenue.
- Non-GAAP operating loss is still expected for both Q3 and the full year 2025.
- A restructuring charge of $0.1 million to $0.4 million is expected for Q3 2025, impacting GAAP results.
- Non-GAAP net income per share guidance for Q3 2025 is relatively low, ranging from $0.00 to $0.02.
- Full year non-GAAP operating loss is still projected to be significant, ranging from $5.2 million to $3.8 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income