OneStream (OS) Q2 2025: International Revenue Jumps 34% as AI Bookings Surge
International expansion and finance AI adoption fueled OneStream’s Q2 outperformance, as the company delivered strong subscription momentum and product innovation. Management flagged near-term caution in U.S. federal public sector but raised full-year guidance on the back of a record pipeline and robust customer demand. AI monetization and rapid productization remain critical watchpoints as OneStream scales its addressable market.
Summary
- International Acceleration: Europe and global markets outpaced North America, broadening OneStream’s revenue base.
- AI Drives Expansion: Finance AI bookings rose sharply, underpinning new customer wins and platform upgrades.
- Federal Sector Volatility: Uncertainty in U.S. public sector clouds Q3, but pipeline signals long-term opportunity.
Performance Analysis
OneStream’s Q2 results showcased double-digit growth across core metrics, with total revenue up 26% year-over-year to $148 million and subscription revenue rising 30%. The company’s international business was the standout, growing 34% and now comprising 33% of total revenue, reflecting successful geographic diversification and increased traction in Europe. Free cash flow margin reached 20%, with free cash flow up 281% compared to last year, highlighting improved operational leverage and disciplined cost control.
AI adoption emerged as a key driver, with finance AI bookings up over 60% in the first half and new product launches—such as Sensible AI Studio and Sensible AI Agents—garnering strong customer interest. SaaS conversions continued as customers migrated to version 9, supporting recurring revenue growth and reducing reliance on legacy license revenue. Billings growth of 20% in Q2 (23% TTM) and a 29% increase in 12-month CRPO (current remaining performance obligations, a forward revenue indicator) point to sustained demand, though management flagged Q3 billings seasonality and U.S. federal sector headwinds.
- International Outperformance: 34% YoY growth in international revenue, now 33% of total, signals effective global execution.
- AI Monetization Traction: Over 60% YoY growth in AI bookings validates product-market fit and incremental upsell opportunity.
- Subscription Mix Strengthens: Subscription revenue now dominates, as SaaS conversions accelerate and license revenue declines.
Customer count rose 14% YoY to nearly 1,700, and more than 60% of bookings came from new customers, reinforcing the platform’s expanding reach. Non-GAAP operating income improved sharply, with a $10.3 million increase over the prior year, as OneStream balanced growth investments with margin discipline.
Executive Commentary
"Our focus on product and AI innovations has positioned OneStream to capitalize on our momentum and build long-term value for shareholders, customers, and employees."
Tom Shea, Co-Founder, CEO & President
"Our international business had another particularly strong performance in Q2, with revenue growth of 34% year-over-year, now contributing 33% to our total revenue."
Bill Kofed, Chief Financial Officer
Strategic Positioning
1. AI-Driven Productization and Hybrid Monetization
OneStream is aggressively productizing its finance AI portfolio, with Sensible AI Forecast, Studio, and Agents now driving bookings and customer upgrades. The company’s hybrid monetization model—mixing usage-based and tiered platform pricing—aims to maximize adoption while maintaining pricing predictability for customers. Management highlighted ongoing learning and rapid product-market fit validation in the AI agent private preview, with positive early feedback across structured and unstructured data use cases.
2. Genesis Architecture and Plug-and-Play Expansion
Genesis, OneStream’s no-code plug-and-play architecture, is now generally available and underpins the company’s productization strategy. Genesis enables rapid configuration and deployment of dashboards, workflows, and AI-powered routines, accelerating time-to-value for customers and supporting new routes to market such as CPM Express and future industry-specific solutions. This modular approach is designed to scale the platform across verticals and expand the company’s total addressable market.
3. Federal and Public Sector Opportunity Amid Volatility
While U.S. federal sector uncertainty will pressure Q3, OneStream remains bullish on its long-term public sector opportunity. The company’s FedRAMP High certification and recent major government win position it for future expansion, including state, local, and higher education. Management is proactively guiding for SaaS migration of federal contracts and remains prudent given the sector’s project reprioritization and restructuring environment.
4. CPM Express and Market Segmentation
CPM Express, a rapid-deployment version of OneStream’s platform, is gaining traction among customers seeking fast implementation and best-practice workflows. This lowers adoption barriers for smaller and mid-market clients and acts as a gateway for future upsell to advanced solutions and AI capabilities. Management sees CPM Express as a cornerstone of the broader productization strategy, supporting both land-and-expand and multi-product growth.
Key Considerations
This quarter’s results highlight a company balancing rapid innovation, operational discipline, and strategic market expansion. Below are the key considerations for investors tracking OneStream’s trajectory:
- AI Monetization and Adoption Pace: Sensible AI bookings growth underscores demand, but long-term monetization hinges on customer trust and seamless integration into finance workflows.
- International Leverage: Strong European and global momentum reduces geographic concentration risk and diversifies revenue streams.
- Federal Sector Volatility: U.S. public sector remains lumpy, with Q3 headwinds expected, but FedRAMP High status and recent wins set up for future expansion.
- Productization as Growth Engine: Genesis and CPM Express are accelerating deployment and expanding the addressable market, but require continued execution in enablement and verticalization.
- Margin Expansion Signals: Improved free cash flow and operating income reflect scalable cost structure, though investments in R&D and go-to-market will persist.
Risks
Federal sector uncertainty and public sector budget dynamics pose near-term risk to revenue growth and billings in Q3, as government agencies reprioritize projects and migrate to SaaS. AI adoption and monetization depend on customer trust in deterministic, auditable outcomes, which may slow uptake among conservative finance buyers. Currency volatility remains a factor for international revenue, and ongoing investments in product and go-to-market could pressure margins if growth slows.
Forward Outlook
For Q3, OneStream guided to:
- Total revenue of $147 million to $149 million
- Subscription revenue growth of at least 25% year-over-year
- Billings of $160 million to $162 million
- Non-GAAP operating margin of 0% to 2%
- Free cash flow breakeven to slightly negative (seasonal low point)
For full-year 2025, management raised guidance:
- Total revenue of $586 million to $590 million
- Non-GAAP operating margin of 1% to 3%
- Non-GAAP net income per share of $0.07 to $0.15
Management emphasized a record pipeline for the second half and confidence in long-term opportunity, while maintaining near-term prudence given federal sector dynamics and continued SaaS migrations.
- Best-ever pipeline entering H2 2025
- Expect billings growth to revert to 20%+ in Q4
Takeaways
OneStream’s Q2 reflected robust execution in international markets, rapid AI adoption, and strategic productization, even as U.S. federal sector headwinds temper near-term growth. The company’s platform-centric approach and focus on finance AI position it for durable expansion, though successful monetization and customer trust in AI remain critical variables.
- International and AI Outperformance: Global growth and finance AI bookings are now core to the company’s expansion narrative, diversifying revenue and deepening customer engagement.
- Federal Sector Remains Lumpy: Q3 guidance reflects prudent risk management as public sector clients reprioritize, but long-term positioning remains strong.
- Productization and Platform Leverage: Genesis and CPM Express are lowering adoption friction and opening new verticals, but require continued enablement and ecosystem development for full impact.
Conclusion
OneStream delivered a multidimensional quarter, combining strong international and AI-driven growth with disciplined cost management and strategic product launches. While federal sector volatility will weigh in Q3, the company’s platform, innovation roadmap, and expanding pipeline support a constructive long-term outlook.
Industry Read-Through
OneStream’s results highlight accelerating digital transformation in finance, with AI capabilities and rapid deployment now table stakes for CFO software buyers. Vendors with embedded, domain-specific AI and robust SaaS architectures are best positioned to capture legacy replacement cycles and expand wallet share. Public sector volatility and SaaS migration headwinds are likely to persist across the enterprise software landscape, while productization and modular architectures are emerging as key enablers of scale and vertical expansion. AI trust and transparency remain gating factors for widespread adoption, a dynamic that will shape competitive differentiation in financial and operational software for years to come.