C3.ai (AI) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 delivered record results with 26% Q4 and 25% full-year revenue growth, driven by accelerating adoption of enterprise and agentic AI applications, and a robust partner ecosystem, including the renewed Baker Hughes partnership through 2028.

• Revenue diversified across 19 industries, with non-oil & gas revenue up 48% year-over-year and State & Local Government revenue more than doubling.

• Closed 264 agreements in FY25 (up 38%), with 174 initial production deployments (up 41%), and expanded federal sector presence with a $450M U.S. Air Force contract ceiling.

• Partner network drove 193 agreements in FY25, a 68% increase, accounting for 73% of total agreements; partner-supported bookings up 419% year-over-year in Q4.

• Maintained a strong cash position, ending Q4 with $742.7 million in cash and investments, and expects to achieve non-GAAP profitability in the second half of fiscal 2027.

Financial highlights

• Q4 revenue reached $108.7 million, up 26% year-over-year; subscription revenue was $87.3 million, up 9%, and accounted for 80% of total.

• Full-year revenue was $389.1 million, a 25% increase; subscription revenue for the year was $327.6 million, up 18%, representing 84% of total.

• Q4 non-GAAP gross margin was 69.1%; non-GAAP operating loss was $31.2 million; free cash flow for Q4 was $10.3 million.

• FY25 non-GAAP gross margin was 69.6%; non-GAAP operating loss was $88.1 million; free cash flow for FY25 was $(44.4) million, improved from $(90.4) million in FY24.

• Cash, cash equivalents, and marketable securities totaled $742.7 million at year-end.

Outlook and guidance

• Fiscal 2026 revenue guidance is $447.5 million–$484.5 million; Q1 guidance is $100 million–$109 million.

• Non-GAAP operating loss guidance for fiscal 2026 is $65 million–$100 million; company expects to be free cash flow positive in Q4 of fiscal 2026 and non-GAAP profitable in the second half of fiscal 2027.

• Guidance reflects caution due to geopolitical and macroeconomic risks, including potential government shutdowns and global trade friction.