ON24 reported Q3 2025 revenue of $34.6 million, a 5% decline from $36.3 million in the same quarter last year, driven by a lower net customer count and slower new growth bookings. The company’s core platform revenue, which includes professional services, was $34.0 million, while professional services contributed $2.6 million to that figure. Despite the revenue dip, ON24 beat consensus revenue estimates of $33.7 million, delivering a $0.9 million or 2.6% beat.
Gross profit for the quarter was $25.9 million, giving a gross margin of 76%, up from 74% in Q2 2025. Operating expenses totaled $33.9 million, resulting in an operating loss of $7.99 million and a net loss of $6.38 million, or $0.15 per diluted share. The company’s non‑GAAP EPS of $0.03 surpassed the consensus estimate of $0.01, a $0.02 or 200% beat, largely due to disciplined cost management and a favorable mix of high‑margin AI‑enabled contracts.
ON24 raised its guidance for the fourth quarter, projecting revenue of $33.9 million to $34.5 million, and lifted its full‑year 2025 revenue outlook to $138.6 million to $139.2 million, up from the previous $137.5 million to $138.0 million range. The company also reiterated its expectation of positive adjusted EBITDA for Q4 and the full year, underscoring confidence in its AI‑driven growth strategy and the momentum from its partnership with LinkedIn.
CEO Sharat Sharan said, “We are pleased to deliver Q3 results above guidance. We made progress on our strategic priorities, including our AI‑driven agenda, our continued focus on regulated industries for new business, and driving efficiency in our go‑to‑market engine to increase profitability.” CFO Steve Vattuone added, “While our Q3 ARR performance was below expectations, we are excited that our customer base continues to adopt more of our products, and we see an increase in customers using two or more products, hitting an all‑time high at the end of Q3.”
Investors responded favorably to the results, citing the earnings beat, the raised full‑year outlook, and the company’s growing AI adoption—nearly 20% of customers now using AI solutions—as key drivers of optimism.
The revenue decline reflects a 4.7% year‑over‑year drop, largely attributable to a 10% decline in net customer count and slower new growth bookings, especially in the life sciences vertical. However, the company’s focus on regulated industries and its AI initiatives have offset some of the headwinds, and the firm’s operating leverage has improved, as evidenced by the narrowing operating loss and the maintenance of positive free cash flow for the seventh consecutive quarter.
Comparing to Q3 2024, ON24’s operating loss improved from $13.3 million to $8.0 million, and the net loss narrowed from $11.4 million to $6.4 million. The company’s gross margin also improved, indicating better pricing power and cost control in its core platform business.
Overall, ON24’s Q3 results demonstrate a company that is managing a revenue slowdown while strengthening profitability and cash flow. The raised guidance and continued AI momentum suggest a positive trajectory for the remainder of 2025, even as the firm navigates competitive pressures and customer churn in certain verticals.
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