OneStream (OS) Q1 2025: Sensible AI Forecast Bookings Surge 50% as Finance Cloud Adoption Accelerates
OneStream’s Q1 2025 marked a decisive pivot toward AI-driven finance transformation, with Sensible AI Forecast bookings up 50% and international revenue climbing sharply. Management’s tone balanced confidence in a record pipeline with caution on macro disruption, holding to full-year guidance and margin discipline. Product innovation and platform extensibility remain clear growth levers as customers demand faster time-to-value and dynamic scenario planning.
Summary
- AI Adoption Accelerates: Sensible AI Forecast bookings growth signals rising demand for finance AI solutions.
- Commercial and International Momentum: Commercial bookings and international revenue both delivered standout growth.
- Macro Uncertainty Managed: Leadership maintains guidance, citing a record pipeline but heightened budget scrutiny.
Performance Analysis
OneStream delivered 24% total revenue growth for Q1 2025, driven by a 31% increase in subscription revenue, while free cash flow margin reached 26%. The company’s international segment was a highlight, with revenue rising 40% year-over-year and now representing more than 30% of total revenue. Notably, over 60% of business came from new customers, a metric that underscores the platform’s expanding reach.
Bookings momentum was robust, with total billings up 30% year-over-year and a 35% increase in 12-month current remaining performance obligations (CRPO). Product innovation was a clear growth driver, as Sensible AI Forecast bookings grew over 50%, and the CPM Express offering contributed to strong commercial segment performance. License revenue declined as expected due to SaaS conversions, but this was offset by services and subscription strength. Operating margin improvement was aided by slower hiring and marketing spend timing, supporting a slight profitability guide raise.
- AI Demand Outpaces Expectations: Sensible AI Forecast bookings grew over 50%, with customers expanding use cases and doubling investments.
- Commercial Segment Scales: CPM Express fueled over 50% bookings growth in commercial, supporting customer acquisition across company sizes.
- International Expansion Delivers: International revenue rose 40% and now exceeds 30% of total, validating multi-year investment in global markets.
OneStream’s unified cloud platform remains central to its competitive differentiation, driving net new logo growth and deeper customer engagement across both core and AI-driven solutions.
Executive Commentary
"We saw increasing customer interest and strong momentum for our sensible AI machine learning product, as well as strength in our commercial business. Continuing our trend of the last few years, our unified platform was recognized by leading third-party industry analysts as a leader in software for the office of the CFO."
Tom Shea, Co-Founder and Chief Executive Officer
"We had a record quarter of free cash flow at $36 million, which represents a 26% free cash flow margin. Our international business had a particularly strong quarter with revenue growth of 40% year-over-year and continues to represent more than 30% of total revenue."
Bill Kofed, Chief Financial Officer
Strategic Positioning
1. AI-Driven Finance Transformation
AI is rapidly becoming a core pillar of OneStream’s value proposition, with Sensible AI Forecast now a primary driver of both new customer wins and expansion within the installed base. Customers are adopting AI for demand forecasting, scenario modeling, and operational analytics, with proven improvements in forecast accuracy and efficiency. The company is investing to broaden its finance AI portfolio, including generative and agentic AI, to further differentiate its offering.
2. Unified Platform and Infinite Extensibility
OneStream’s platform approach—unifying financial and operational data—remains a key competitive advantage, enabling real-time scenario planning and rapid product innovation. The Solution Exchange and extensibility allow customers to address evolving statutory and operational requirements, such as ESG reporting, without leaving the platform. This extensibility is a frequent differentiator in sales cycles and supports long-term customer retention and upsell.
3. Commercial and Global Expansion
The CPM Express product, targeting rapid deployment for companies of all sizes, is unlocking new market segments and accelerating time-to-value. International growth is being driven by foundational deals and increased scale in EMEA and APAC, with management signaling continued investment to replicate US market share abroad. More than 60% of new business comes from new customers, supporting a land-and-expand strategy.
4. Pricing and Packaging Innovation
Recent changes in pricing and packaging—moving from user-based to platform and consumption-based models—are designed to simplify contracting and align value capture with customer usage. This positions OneStream to better monetize innovation and ease adoption of new capabilities like AI and ESG modules.
5. Disciplined Operating Model
Leadership maintains a disciplined approach to growth and margin, balancing investment in innovation with capital efficiency. Slower hiring and calibrated marketing spend drove margin outperformance, while management reiterates a focus on efficient growth regardless of macro conditions.
Key Considerations
Q1 2025 underscored OneStream’s ability to deliver growth through product innovation and market expansion, while navigating a volatile macro environment. The following considerations frame the company’s evolving strategic position:
Key Considerations:
- AI Product Uptake: Sensible AI Forecast is increasingly a wedge for both new logo acquisition and expansion, with customers rapidly scaling use cases.
- Commercial and International Leverage: Investments in CPM Express and global markets are yielding strong bookings and revenue growth, validating multi-year strategy.
- Platform Extensibility: The ability to rapidly add modules (e.g., ESG, AI) supports customer stickiness and positions OneStream as a one-stop shop for finance transformation.
- Macro Sensitivity: While leading indicators and pipeline are strong, management remains cautious, citing potential for deal delays and budget tightening, especially in government and large enterprise.
Risks
Heightened macro uncertainty, including tariff changes, currency volatility, and government budget pressures, could slow deal cycles and trigger downsell risk. Ongoing SaaS conversions will continue to pressure license revenue, and aggressive competition in both core and AI-enabled finance software may compress pricing or lengthen sales cycles. Management’s cautious guidance and focus on efficient growth reflect a prudent stance, but downside risk remains if macro conditions deteriorate further or if AI adoption slows from current momentum.
Forward Outlook
For Q2 2025, OneStream guided to:
- Total revenue between $140 million and $142 million
- Non-GAAP operating margin between minus 2% and 0%
- Non-GAAP net income per share between 0 cents and 2 cents
For full-year 2025, management reiterated guidance:
- Total revenue of $583 million to $587 million
- Non-GAAP operating margin between 0% and 2%
- Non-GAAP net income per share of 5 cents to 13 cents
Management highlighted:
- Strongest sales pipeline in company history and positive leading indicators
- Potential FX tailwinds for revenue if trends persist
Takeaways
OneStream’s Q1 2025 showcased the company’s ability to drive growth through AI adoption, commercial expansion, and international scale, while maintaining operational discipline in a turbulent macro environment.
- AI and Platform Differentiation: Sensible AI Forecast traction and platform extensibility are deepening customer value and driving both new wins and expansions.
- Margin Discipline Amid Growth: Strategic investment is balanced by capital efficiency, supporting a modest profitability outlook raise despite macro caution.
- Watch for Macro Impact: Sustained pipeline growth and AI adoption will be key to offsetting potential deal delays or budget headwinds in the coming quarters.
Conclusion
OneStream’s Q1 2025 results reflect a company at the intersection of digital finance transformation and AI adoption, with clear momentum in commercial and international markets. While macro risks persist, the company’s unified platform and disciplined execution position it well for long-term growth.
Industry Read-Through
OneStream’s quarter signals that demand for unified, AI-enabled finance platforms is accelerating, especially as CFOs seek agility and accuracy in volatile markets. The rapid adoption of finance AI and extensible cloud platforms is likely to pressure legacy finance software vendors, while raising the bar for time-to-value and scenario planning. Vendors serving the office of the CFO should anticipate increased customer scrutiny on modernization, and those with proven AI capabilities and rapid deployment models will be best positioned to gain share as budgets tighten but transformation imperatives rise.