Couchbase shares rise on record free cash flow, ARR growth

Published 26/02/2025, 00:06
Couchbase shares rise on record free cash flow, ARR growth

SAN FRANCISCO - Couchbase , Inc. (NASDAQ:BASE) shares gained 4.1% in after-hours trading after the database software company reported better-than-expected fourth quarter revenue and highlighted record free cash flow and annual recurring revenue (ARR) growth.

The company posted Q4 revenue of $54.9 million, up 10% YoY and surpassing analyst estimates of $53.25 million. However, Couchbase reported a wider-than-expected adjusted loss per share of -$0.30, missing the -$0.08 consensus forecast.

For the full fiscal year 2025, Couchbase’s revenue grew 16% to $209.5 million. The company’s ARR reached $237.9 million as of January 31, 2025, increasing 17% YoY.

"We finished fiscal 2025 on a strong note, including the highest quarterly free cash flow and net new ARR results in company history," said Matt Cain, Chair, President and CEO of Couchbase.

The company generated positive free cash flow of $4 million in Q4, compared to negative $7.7 million in the same quarter last year. This marked a significant improvement in cash generation.

Looking ahead, Couchbase provided revenue guidance for fiscal 2026 of $228-232 million, falling short of the $236.7 million analyst consensus. For Q1 fiscal 2026, the company expects revenue between $55.1-55.9 million.

Couchbase also highlighted recent product launches, including the private preview of Capella AI Services and new integrations with NVIDIA (NASDAQ:NVDA) AI, as it aims to capitalize on growing demand for AI-powered database applications.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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