Total Revenue

26% increase (from $86.59M to $108.77M) " "

Total Revenue surged by 26% YoY, driven by a mix of modest subscription revenue growth and an exceptional increase in professional services revenue, indicating a shift toward higher-margin service offerings compared to the previous period. " "

Subscription Revenue

9% increase (from $79.9M to $87.3M) " "

Subscription Revenue experienced a 9% YoY uplift, reflecting stable recurring revenue streams bolstered by ongoing customer acquisition and retention strategies—a steady expansion from previous performance levels. " "

Professional Services Revenue

Over 220% increase (from $6.69M to $21.36M) " "

Professional Services Revenue jumped over 220% YoY, driven by a significant increase in consulting, implementation, and training services, building on a lower base in the prior period and marking a strategic pivot in service focus. " "

North America Revenue

24% increase (from $78.65M to $97.46M) " "

North America revenue grew by 24% YoY, supported by robust subscription performance and effective regional strategies that built upon previously strong market fundamentals. " "

EMEA Revenue

62% increase (from $6.6M to $10.69M) " "

EMEA revenue surged nearly 62% YoY, reflecting a rapid expansion in market penetration and customer engagement in the region, even though the absolute revenue remains smaller relative to North America. " "

Net Loss

9% increase (from $72.93M to $79.70M) " "

The net loss worsened by roughly 9% YoY despite strong revenue growth, indicating that rising costs or investments in growth initiatives have outpaced revenue gains compared to the previous period. " "

Revenue Guidance

Q1 FY 2026

no prior guidance

$100 million to $109 million "

no prior guidance

Non-GAAP Loss from Operations

Q1 FY 2026

no prior guidance

$23.5 million to $33.5 million "

no prior guidance

Revenue Guidance

FY 2026

no prior guidance

$447.5 million to $484.5 million "

no prior guidance

Non-GAAP Loss from Operations

FY 2026

no prior guidance

$65 million to $100 million "

no prior guidance

Profitability Expectations

FY 2026

no prior guidance

Expected to cross into non‐GAAP profitability in H2 FY 2027; expected to be free cash flow positive in Q4 FY 2026 and thereafter "

no prior guidance

Strategic partnerships

Across Q1–Q3, partnerships with Microsoft, AWS, Google Cloud, Baker Hughes, and new alliances (e.g., with McKinsey QuantumBlack and PwC) were consistently highlighted. These calls emphasized broad ecosystem activation, conversion of partnerships into agreements, and significant investments to scale sales and co‐sell motions. " " " " "

In Q4, the emphasis continued with detailed updates on Microsoft’s global sales engagement and a major renewal and expansion of the Baker Hughes partnership – the fifth expansion – alongside impressive numbers such as 28 new agreements and robust partner-supported revenue figures. " " "

Consistent expansion and deeper integration with partners, with enhanced ecosystem metrics and significant renewals reinforcing its strategic importance.

Revenue conversion effectiveness

Q1 reported a 70% pilot-to-production conversion rate and detailed pilot values and durations; Q2 and Q3 discussed pilot counts (e.g., 36 pilots and 50 pilots in quarterly mentions) and improvements in sales cycles through partnerships while acknowledging guidance volatility due to conversion challenges. " "

Q4 detailed 36 new initial production deployments and cumulative pilot conversion metrics (346 signed; 263 active) while noting moderation in gross margins and a broader revenue guidance range due to inherent uncertainties. " "

Steady focus with evolving conversion dynamics; while pilot conversions continue to be a priority, guidance remains volatile reflecting current market uncertainties.

Financial modeling complexity

In Q1 and Q2, executives delved into how the complexity of the AI computing world—with 150+ unique solutions and diverse accounting treatments under ASC 606—makes conventional modeling nearly impossible, emphasizing the “order of 100 factorial” challenge and detailed revenue recognition nuances. " " "

Q4 did not mention financial modeling complexity or revenue recognition challenges at all [no citation].

No longer emphasized in Q4, suggesting that the focus may have shifted as internal processes mature or as management deems it less critical to highlight.

Geopolitical and market risk management

Q3 briefly noted that guidance was predicated on geopolitical stability, with warnings about government shutdowns and trade risks, while Q1 and Q2 largely omitted extensive discussion on these external risks. "

Q4 featured a stronger focus on geopolitical and market risks—with explicit references to geopolitical uncertainties, U.S. government shutdowns, budget risks, and kinetic risks in Europe—and a broader revenue guidance range as a result. " "

An emerging and more articulated risk factor in Q4, with management increasing emphasis on external risks compared to earlier periods.

Baker Hughes partnership dynamics

Q2 discussed the diminishing revenue share from Baker Hughes, the nearing expiration of an exclusive marketing agreement, and the uncertain prospects of renewal; Q3 offered little detail on Baker Hughes specifically, noting non-Baker Hughes revenue growth instead. " "

Q4 reported a clear renewal and expansion of the Baker Hughes partnership through 2028, explicitly dismissing prior analyst concerns and highlighting the strategic importance of the collaboration. " " "

Renewal uncertainty resolved; partnership dynamics have strengthened even as its relative revenue share continues to decline compared to the transformative Microsoft deal.

Delayed free cash flow positivity

Q1–Q3 consistently noted that while the company was free cash flow negative in early quarters due to heavy investments (in sales, R&D, partner ecosystems, and a higher mix of pilot projects), there was an expectation to reach positivity in Q4, with caution noted about ongoing margin pressures. " " "

Q4 reported achieving positive free cash flow ($10.3 million), albeit at a lower level than the previous year’s quarter, while still emphasizing the short-term pressures from ongoing significant investments. " "

Improvement in free cash flow performance with moderated cash burn; investments continue to drive margin pressure but progress toward long-term positivity is evident.

Government AI spending

Q1 detailed a robust federal footprint with over 30% of quarterly bookings from federal agencies and significant state/local growth, Q2 noted accelerating AI adoption in government at forums such as the Reagan Defense Forum, and Q3 highlighted new agreements with multiple federal agencies and generative AI pilots. " " " "

Q4 expanded on federal contracting by highlighting major wins such as a U.S. Air Force contract with a $450 million ceiling, extension of the PLUTO platform with the Defense Logistics Agency, and new collaborations in the defense and intelligence sectors. "

Consistent growth and deepening penetration in government sectors, with an increasingly robust and diversified federal contracting portfolio in Q4.

Professional services and consulting

Q1 reported professional services at 16% of revenue with strong high margins (over 90%); Q2 and Q3 similarly reported revenue in the 13–14% range from consulting, PES, and other service fees, with consistent upticks in service adoption. " " " "

In Q4, professional services revenue increased to $21.4 million (20% of total revenue) with impressive contributions from PES and an overall combined subscription/PES revenue growth of 22% year-over-year, maintaining high gross margins. " "

Positive revenue trajectory with an increasing contribution from professional services, reinforcing its role as a high-margin, strategically important revenue stream.

CEO health and leadership risk

Q3 disclosed CEO Thomas Siebel’s health challenges (giant cell arteritis affecting vision) and adjustments such as appointing Jim Snabe as special assistant, while Q1 and Q2 did not mention any such concerns. "

Q4 noted that Siebel had recovered fully—with a light-hearted remark “Just when you thought it was safe, Pat, I'm back”—and resumed full engagement in leadership, effectively mitigating earlier health-related concerns. "

Previously raised leadership risks have been resolved in Q4, with the CEO returning to full capacity and diminishing prior concerns related to his health.