Loading...
01/10 00:49
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong revenue growth, significant new partnerships, and improved cash flow, despite operating losses. The Q&A reveals management's confidence in leveraging partnerships for growth. While competitive pressures and regulatory issues pose risks, the company's strategic alliances and AI initiatives provide a positive outlook. The lack of shareholder return plans and vague guidance responses slightly temper enthusiasm, but overall, the company's market position and growth prospects suggest a positive stock reaction, particularly given its small-cap status.
Total Revenue Q4 2025 $108.7 million, a 26% increase from $86.6 million in Q4 2024.
Subscription Revenue Q4 2025 $87.3 million, up 9% from $79.9 million a year ago.
Combined Subscription and PES Revenue Q4 2025 $104.4 million, a 22% increase from $85.7 million in Q4 2024.
Non-GAAP Gross Profit Q4 2025 $75.2 million, with a gross margin of approximately 69%.
Non-GAAP Operating Loss Q4 2025 $31.2 million, within the guidance range of $30 million to $40 million.
Non-GAAP Net Loss per Share Q4 2025 $0.16.
Free Cash Flow Q4 2025 $10.3 million.
Cash, Cash Equivalents, and Investments Q4 2025 $742.7 million, largely unchanged from nearly $0.75 billion a year ago.
Total Revenue FY 2025 $389.1 million, a 25% increase from $310.6 million in FY 2024.
Subscription Revenue FY 2025 $327.6 million, an 18% increase from $278.1 million in FY 2024.
Professional Services Revenue Q4 2025 $21.4 million, with $17 million from Prioritized Engineering Services.
Non-Baker Hughes Revenue Growth Q4 2025 37% year-over-year.
Bookings Q4 2025 $135.4 million, up from $42 million in Q4 2024.
Free Cash Flow FY 2025 Negative $44.4 million, improved from negative $90.4 million last year.
New Product Developments: C3 AI has developed over 130 turnkey enterprise AI applications to solve real business problems, including predictive maintenance, supply chain optimization, and fraud detection.
Generative AI Growth: C3 Generative AI revenue grew more than 100% in FY ‘25, with 66 initial production deployments across 16 industries.
Market Expansion: C3 AI expanded into 19 different industries, with non-oil and gas revenue increasing by 48% year-over-year.
Strategic Partnerships: Renewed partnership with Baker Hughes, generating over $0.5 billion in revenue, and expanded collaborations with Microsoft, AWS, Google Cloud, and McKinsey QuantumBlack.
Operational Efficiency: C3 AI achieved a 26% top line growth in Q4, with a focus on building a partner ecosystem that accounted for 73% of agreements.
Cash Management: C3 AI maintained $742.7 million in cash, cash equivalents, and investments, with free cash flow of $10.3 million in Q4.
Strategic Shifts: C3 AI is focusing on expanding its partner ecosystem and developing an OEM business to license the C3 Agentic AI platform to third parties.
Competitive Pressures: C3.ai faces significant competition in the enterprise AI market, with numerous players attempting to deliver similar solutions. The company emphasizes its unique position as a pure play in enterprise AI applications, but acknowledges the need to continuously innovate and differentiate to maintain its competitive edge.
Regulatory Issues: The company highlights potential risks associated with geopolitical stability and regulatory changes, particularly in relation to government contracts and funding. Any disruptions in government operations or trade relations could adversely impact business results.
Supply Chain Challenges: C3.ai's growth is partly dependent on its partnerships with major cloud providers like Microsoft, AWS, and Google Cloud. Any disruptions in these partnerships or challenges in the supply chain could affect the delivery and implementation of their AI solutions.
Economic Factors: The company notes that economic conditions, including global trade friction and government budget approvals, could pose risks to revenue growth and operational stability. These factors could lead to uncertainties in customer spending and investment in AI solutions.
Cash Flow Management: Despite a strong cash position, C3.ai has faced scrutiny regarding its cash flow management and operating losses. Analysts have raised concerns about the company's ability to achieve consistent profitability, which could impact investor confidence.
Strategic Partnerships: C3.ai has formed strategic partnerships with major cloud providers like Microsoft Azure, AWS, and Google Cloud to enhance market reach and sales effectiveness. The partnership with Azure has been particularly significant, as C3.ai applications are now preferred solutions on Azure's price list.
Baker Hughes Partnership: The renewal and expansion of the partnership with Baker Hughes, which has generated over $0.5 billion in revenue, underscores the value delivered in the oil and gas sector.
Expansion into New Industries: C3.ai has successfully expanded into 19 different industries, with notable growth in manufacturing, state and local government, and life sciences.
Agentic AI Solutions: C3.ai has over 100 agentic AI solutions deployed, with a projected market growth from $5.1 billion in 2024 to $47.1 billion by 2030.
Demonstration Licenses: C3.ai has invested in demonstration licenses to accelerate AI adoption among partners and customers, constituting nearly 30% of revenue in Q4.
Revenue Guidance Q1 FY26: C3.ai anticipates revenue in the range of $100 million to $109 million for Q1 of fiscal 2026.
Full Year Revenue Guidance FY26: For the full fiscal 2026, revenue is expected to be between $447.5 million and $484.5 million.
Operating Loss Guidance Q1 FY26: Non-GAAP loss from operations for Q1 is projected to be between $23.5 million and $33.5 million.
Full Year Operating Loss Guidance FY26: Non-GAAP loss from operations for the full year is expected to be between $65 million and $100 million.
Profitability Outlook: C3.ai expects to achieve non-GAAP profitability in the second half of fiscal 2027 and free cash flow positivity in Q4 of fiscal 2026.
Shareholder Return Plan: C3.ai has not announced any share buyback program or dividend program during the earnings call.
The earnings call summary presents mixed signals: strong revenue growth and bookings contrast with operational losses and cash flow deficits. The strategic focus on expanding markets and partnerships provides optimism, but gross margin pressures and economic uncertainties pose risks. The Q&A reveals confidence in future growth but lacks concrete guidance. Given the company's mid-sized market cap, the stock is likely to experience a neutral reaction (-2% to 2%) as positive and negative factors balance each other out.
The earnings call revealed a 19% YoY revenue decline, operating losses, and the withdrawal of FY26 guidance, signaling uncertainty and potential financial challenges. Despite strategic partnerships and optimism for future profitability, the lack of clear guidance and execution challenges weigh negatively. The market cap suggests moderate reaction, leading to a negative sentiment prediction of -2% to -8%.
The company's revenue growth, strategic alliances, and strong cash position are positive indicators. Despite an operating loss, the guidance suggests improvement in cash flow and profitability in future quarters. The Q&A revealed some concerns about the lack of clarity on specific deals and guidance, but overall sentiment remains positive due to strong revenue growth and strategic partnerships. The stock's market cap suggests a moderate reaction, leading to a positive prediction.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
