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Introduction & Market Context
OneStream Inc. (NYSE:OS) released its Q1 2025 earnings presentation on May 8, 2025, showcasing continued revenue growth and improving profitability metrics. The company’s stock responded positively, rising 6.51% during regular trading hours to close at $22.88, followed by an additional 1.56% gain in after-hours trading to $24.75.
The corporate performance management software provider continues to demonstrate strong subscription revenue growth while making progress toward sustainable profitability, highlighted by breakeven operating margin and robust free cash flow generation.
Quarterly Performance Highlights
OneStream reported total revenue of $136 million for Q1 2025, representing a 24% year-over-year increase. Subscription revenue, which forms the backbone of the company’s business model, grew 31% year-over-year to reach $125 million.
As shown in the following chart of quarterly financial highlights, the company achieved a non-GAAP gross margin of 70% while reaching breakeven on non-GAAP operating margin and generating a strong 26% free cash flow margin:
The company’s revenue composition continues to shift toward subscription-based services, which now account for approximately 92% of total revenue. This transition reflects OneStream’s successful execution of its SaaS business model strategy.
As illustrated in the following revenue breakdown, while growth rates have moderated compared to previous years, the company continues to deliver strong performance at an increasing scale:
Detailed Financial Analysis
OneStream’s customer base expanded to 1,646 in Q1 2025, representing a 16% increase from Q1 2024. This steady customer growth demonstrates the company’s ability to attract new business while maintaining its existing client relationships.
The following chart shows the consistent upward trajectory in customer acquisition over the past five quarters:
The company’s billings reached $154 million in Q1 2025, with last twelve months (LTM) billings growth holding steady at 24% year-over-year. While this represents a deceleration from the 36% growth rate seen in Q1 2024, it indicates stabilization at a healthy level as the company scales.
Free cash flow performance was particularly impressive in Q1 2025, reaching $36 million or 26% of revenue. This marks a significant improvement from $25 million (23% of revenue) in Q1 2024 and demonstrates the company’s increasing financial strength.
As shown in the following chart, OneStream has generated $70 million in free cash flow over the past four quarters, with a notable upward trend in the most recent quarter:
Operating expenses showed improvement as a percentage of revenue compared to the previous year. Sales and marketing expenses decreased to 39% of revenue in Q1 2025 from 43% in Q1 2024, while research and development increased slightly to 18% from 15%, reflecting continued investment in product innovation.
The company achieved breakeven non-GAAP operating margin in Q1 2025, a significant improvement from the -4% margin reported in Q1 2024. This progress toward profitability represents an important milestone in OneStream’s financial evolution.
Forward-Looking Statements
Looking ahead, OneStream provided guidance for both Q2 2025 and the full fiscal year. For Q2, the company expects total revenue between $140 million and $142 million, with non-GAAP operating margin between -2% and 0%.
For the full year 2025, OneStream projects total revenue of $583 million to $587 million, representing approximately 19-20% growth over FY 2024. The company also expects to achieve positive non-GAAP operating margin of 0% to 2% for the full year.
As shown in the following guidance slide, OneStream anticipates non-GAAP net income per share of $0.05 to $0.13 for FY 2025:
These projections suggest that OneStream expects to maintain strong revenue growth while continuing to improve its profitability metrics throughout 2025. The guidance reflects management’s confidence in the company’s business model and market position, while acknowledging the more moderate growth rates typical of a maturing SaaS business.
With solid Q1 results, improving profitability metrics, and strong cash flow generation, OneStream appears well-positioned to execute on its growth strategy while progressing toward sustainable profitability in the competitive corporate performance management software market.
Full presentation:
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