Confluent (CFLT) Q4 2025 earnings summary

Executive summary

• Fourth quarter subscription revenue reached $302 million, up 20% year-over-year; Confluent Cloud revenue grew 23% to $169 million.

• Fiscal year 2025 subscription revenue totaled $1,120 million, up 21% year-over-year; Confluent Cloud revenue rose 27% to $624 million.

• Customer base with $100,000+ in ARR increased 10% year-over-year to 1,521.

• Announced definitive agreement for acquisition by IBM at $31.00 per share, valuing the company at $11 billion; expected to close mid-2026.

Financial highlights

• Q4 total revenue was $315 million, up 21% year-over-year; FY25 total revenue was $1,167 million, up 21%.

• Q4 GAAP operating loss improved to $(99.2) million from $(105.8) million; non-GAAP operating income was $27.6 million.

• Q4 GAAP net loss per share was $(0.23), non-GAAP net income per diluted share was $0.12.

• FY25 GAAP operating loss improved to $(380.1) million from $(419.1) million; non-GAAP operating income was $86.1 million.

• FY25 GAAP net loss per share was $(0.86), non-GAAP net income per diluted share was $0.42.

• Q4 net cash from operating activities was $42.1 million; adjusted free cash flow was $35.5 million.

• FY25 net cash from operating activities was $64.3 million; adjusted free cash flow was $76.0 million.

Segment performance

• Confluent Cloud revenue grew 23% year-over-year in Q4 and 27% for the full year.

• Subscription revenue increased 20% in Q4 and 21% for the year.