OneStream Q2 2025 slides: 26% revenue growth amid improving profitability

Introduction & Market Context

OneStream Inc (NYSE:OS) released its Q2 2025 earnings presentation on August 7, 2025, reporting continued strong revenue growth and improving profitability metrics. Despite the positive financial results, the company’s stock fell 5% in after-hours trading to $22.22, reflecting ongoing market volatility and potentially heightened investor expectations.

The corporate performance management software provider has maintained its growth trajectory while making progress toward sustainable profitability, a key focus for investors in the current economic environment. OneStream’s stock remains well above its 52-week low of $16.69 but significantly below its high of $35.39.

Quarterly Performance Highlights

OneStream reported total revenue of $148 million for Q2 2025, representing a 26% year-over-year increase, a slight acceleration from the 24% growth reported in Q1. Subscription revenue, which forms the core of the company’s business model, grew 30% year-over-year to $134 million.

As shown in the following chart of quarterly financial highlights, the company maintained a healthy non-GAAP gross margin of 70% while achieving a positive non-GAAP operating margin of 1%:

The company’s revenue growth has remained robust despite its increasing scale. Subscription revenue continues to be the primary driver, accounting for approximately 91% of total revenue in Q2 2025.

As illustrated in this revenue breakdown, OneStream has consistently delivered strong growth across recent quarters:

Customer acquisition remains a key growth driver for OneStream. The company’s customer count reached 1,695 in Q2 2025, representing 14% year-over-year growth. This steady expansion of the customer base provides a foundation for future recurring revenue.

Detailed Financial Analysis

OneStream’s profitability metrics showed improvement compared to the prior year. The company reported a non-GAAP operating income of $2 million in Q2 2025, representing a 1% margin. This marks a significant improvement from the -7% operating margin reported in Q2 2024.

The following chart illustrates OneStream’s progress toward sustainable profitability:

Operating expenses as a percentage of revenue have improved by approximately 7 percentage points year-over-year. Sales and marketing expenses decreased from 44% of revenue in Q2 2024 to 39% in Q2 2025, while general and administrative expenses declined from 16% to 13% over the same period.

Free cash flow has emerged as a particular strength for OneStream. The company generated $29 million in free cash flow during Q2 2025, representing a 20% margin. Over the past four quarters, OneStream has generated a total of $91 million in free cash flow.

As shown in the following chart, free cash flow generation has been consistently strong in recent quarters:

The company’s balance sheet remains solid, with billings growth of 23% on a last twelve months basis. This metric, which combines revenue with changes in deferred revenue, serves as an indicator of future revenue potential.

Forward-Looking Statements

For Q3 2025, OneStream provided guidance for total revenue between $147 million and $149 million, with a non-GAAP operating margin between 0% and 2%. For the full fiscal year 2025, the company expects total revenue between $586 million and $590 million, with a non-GAAP operating margin between 1% and 3%.

The following guidance summary highlights the company’s expectations for continued growth and improving profitability:

This guidance suggests that OneStream expects to maintain its revenue growth momentum while continuing to make incremental improvements in profitability. The projected full-year revenue of $586-590 million would represent approximately 20% growth compared to fiscal year 2024.

The company’s non-GAAP net income per share is expected to be between $0.01 and $0.03 for Q3 2025, and between $0.07 and $0.15 for the full fiscal year 2025, indicating continued progress toward consistent profitability.

While OneStream’s Q2 results and forward guidance demonstrate ongoing business momentum, the stock’s negative reaction suggests that investors may have been looking for even stronger performance or more aggressive profitability improvements. As the company continues to balance growth investments with margin expansion, its ability to execute on both fronts will remain critical to investor sentiment in coming quarters.

Full presentation:

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