OneStream Posts Strong Revenue Growth and Improved Margins, Highlights AI Advancements

Revenue Jumps 19% Year-Over-Year as Subscription Base Expands

OneStream (NASDAQ: OS) delivered an impressive third quarter of 2025, reporting total revenue of $154.3 million, a 19% increase over the same period last year. Subscription revenue was the standout, jumping 27% year-over-year to $140.93 million. This growth reflects OneStream’s continued traction among enterprise clients looking to unify and modernize their finance and operational functions through a cloud-based, AI-embedded platform.

Margins Show Notable Recovery Amid Disciplined Expense Management

Profitability metrics took a clear turn for the better this quarter. Non-GAAP operating income rose to $9.27 million, up from $5.48 million a year ago. Non-GAAP operating margin also improved to 6% from 4%. Notably, GAAP operating losses narrowed sharply to $17.46 million from $255.17 million, primarily as equity-based compensation normalized to $25.22 million, down significantly from the prior year’s $259.98 million.

Cash Flow and Profitability: Positive Trends Continue

The company’s focus on efficiency translated into better cash flow: net cash provided by operating activities was $4.97 million (vs. $2.36 million last year), while free cash flow improved to $4.79 million from $1.28 million. On a per-share basis, non-GAAP net income remained at $0.08 for the quarter, despite substantial operating investments. These gains suggest operational leverage is beginning to take hold as OneStream scales its business.

AI-Driven Solutions and Product Expansions Boost Long-Term Outlook

OneStream continues to reinforce its technology leadership with several major updates. The launch of the Modern Financial Close, featuring Journal Entry Manager and Transaction Matching tools, promises to streamline and automate complex closing processes. The integration of AI into ESG Planning & Reporting aims to help finance teams forecast and model sustainability initiatives more effectively. Further, an expanded SensibleAI Studio routine library introduces capabilities for trend analysis, outlier detection, and benchmarking—features increasingly in demand among data-driven CFOs.

CEO Tom Shea credited OneStream’s "high-quality, contextualized data" and its SensibleAI platform for helping customers achieve greater accuracy in forecasting and strategic planning, further differentiating the company in a competitive landscape.

Recognition and Industry Momentum Reinforce Customer Value

Recent honors, including being named the top leader in ISG Research’s 2025 Record to Report Buyers Guide and earning a 4.7/5 overall rating in the Gartner Peer Insights Voice of the Customer report (with a 95% recommendation rate), highlight broad market validation. Boardroom additions and global research initiatives on finance AI and diversity underscore a long-term focus on innovation and responsible leadership.

Guidance: Company Projects Continued Growth and Improved Margins

Looking ahead, OneStream is forecasting Q4 revenue between $156M and $158M and fiscal year 2025 revenue between $594M and $596M. Margins are expected to hold steady, with Q4 non-GAAP operating margin guided to 4–6% and full-year non-GAAP net income per share expected at $0.15–$0.19. The table below summarizes key elements of management's outlook:

Key Takeaway: Fundamental Strength Backed by Innovation

With accelerating revenue, improving margins, strong cash flow, and continued investments in AI, OneStream is signaling growing strength in both execution and innovation. The company’s focus on integrating intelligent solutions into the finance function, along with clear industry validation and rising customer adoption, may position it for further outperformance as the sector evolves.

Contact Information:

If you have feedback or concerns about the content, please feel free to reach out to us via email at support@marketchameleon.com.

About the Publisher - Marketchameleon.com:

Marketchameleon is a comprehensive financial research and analysis website specializing in stock and options markets. We leverage extensive data, models, and analytics to provide valuable insights into these markets. Our primary goal is to assist traders in identifying potential market developments and assessing potential risks and rewards.

NOTE: Stock and option trading involves risk that may not be suitable for all investors. Examples contained within this report are simulated and may have limitations. Average returns and occurrences are calculated from snapshots of market mid-point prices and were not actually executed, so they do not reflect actual trades, fees, or execution costs. This report is for informational purposes only, and is not intended to be a recommendation to buy or sell any security. Neither Market Chameleon nor any other party makes warranties regarding results from its usage. Past performance does not guarantee future results. Please consult a financial advisor before executing any trades. You can read more about option risks and characteristics at theocc.com.

The information is provided for informational purposes only and should not be construed as investment advice. All stock price information is provided and transmitted as received from independent third-party data sources. The Information should only be used as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments and trading strategies. The Company does not guarantee the accuracy, completeness or timeliness of the Information.

Disclosure: This article was generated with the assistance of AI