Confluent, Inc. (NASDAQ: CFLT), the data streaming platform pioneer, announced its financial results for the third quarter of 2025, ending September 30, 2025. The company reported strong performance across key metrics, highlighting robust growth in subscription revenue and improving financial health. Confluent Cloud revenue grew 24% year-over-year, while remaining performance obligations increased by 43% year-over-year, signaling strong customer consumption and long-term commitment. Jay Kreps, co-founder and CEO, emphasized the momentum behind the company’s platform, particularly in its data streaming processing components like Apache Flink, which are increasingly critical for powering real-time AI applications. Rohan Sivaram, CFO, highlighted the company’s balanced growth strategy, noting stabilized dollar-based net retention, continued margin expansion, and strong top-line performance. He described the results as evidence of Confluent’s ability to deliver sustainable, profitable growth. Key financial highlights for the third quarter of 2025 include: - Subscription revenue: $286.3 million, up 19% from $239.9 million in Q3 2024 - Total revenue: $298.5 million, a 19% increase - GAAP operating loss: $83.3 million, improved from $93.7 million - Non-GAAP operating income: $29.1 million, up from $15.8 million - Non-GAAP net income per diluted share: $0.13, up from $0.10 - Net cash provided by operating activities: $30.8 million, up from $15.6 million - Adjusted free cash flow: $24.6 million, up from $9.3 million For the fourth quarter of 2025, Confluent expects: - Subscription revenue: $295.5 million to $296.5 million - Non-GAAP operating margin: approximately 7% - Non-GAAP net income per diluted share: $0.09 to $0.10 For the full fiscal year 2025, the company projects: - Subscription revenue: $1.1135 billion to $1.1145 billion - Non-GAAP operating margin: around 7% - Non-GAAP net income per diluted share: $0.39 to $0.40 The company also provided a reconciliation of non-GAAP financial measures, which exclude items such as stock-based compensation, amortization of intangibles, acquisition-related expenses, and other one-time adjustments. Confluent noted that a full reconciliation to GAAP is not available without unreasonable effort due to the high variability and complexity of certain items, particularly stock-based compensation. Confluent reiterated its long-term strategy to expand its data streaming platform, with growing adoption in generative AI use cases and increased customer engagement. The company continues to invest in innovation, including its WarpStream and Freight Clusters offerings, to support real-time data infrastructure needs. Confluent will host a live webcast to discuss the results on the same day at 4:30 p.m. Eastern Time. The event will be available on the company’s investor relations website, with a replay accessible shortly after. The company also uses its X (Twitter), LinkedIn, and Facebook accounts to disclose material information, in compliance with Regulation FD. Forward-looking statements in the release include expectations for revenue, growth, margins, customer expansion, and product adoption. These are subject to risks such as market competition, macroeconomic conditions, customer retention, cybersecurity threats, and the company’s ability to attract and retain talent. A full list of risks is detailed in Confluent’s SEC filings. The company emphasized that non-GAAP measures are provided for supplemental analysis and should not be viewed as alternatives to GAAP results. Investors are encouraged to review the full financial statements and reconciliations for a complete understanding of the company’s performance.