ON24 Announces Third Quarter 2025 Financial Results
SAN FRANCISCO--( BUSINESS WIRE)--ON24 (NYSE: ONTF), a leading intelligent engagement platform for B2B marketing, sales, and other customer-facing teams, today announced financial results for the third quarter ended September 30, 2025.
“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,” said Sharat Sharan, co-founder and CEO of ON24. “With nearly one in five customers buying ON24’s AI offerings, a number which is increasing every quarter, and by recently partnering with LinkedIn, we are driving the next generation of event marketing. Our efforts and momentum further enhance ON24’s leadership as an AI-enabled Intelligent Engagement platform.”
Third Quarter 2025 Financial Highlights
For more information regarding non-GAAP operating income (loss), non-GAAP net income (loss), adjusted EBITDA, and free cash flows, see the section titled “Non-GAAP Financial Measures” below. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure, see the tables at the end of this press release.
Recent Business Highlights:
Financial Outlook
For the fourth quarter of 2025, ON24 expects:
For the full year 2025, ON24 now expects:
Conference Call Information
ON24 will host a conference call and live webcast for analysts and investors today at 2:00 p.m. Pacific Time. Parties in the United States can access the call by dialing 1-877-497-9071 / 1-201-689-8727 and using conference ID: ON24.
A webcast and management’s prepared remarks for today’s call will be accessible on ON24’s investor relations website at investors.on24.com. Approximately one hour after completion of the live call, an archived version of the webcast will be available on the Company’s investor relations website.
Definitions of Certain Key Business Metrics
Core Platform: The ON24 Core Platform products include:
ON24 Elite: live, interactive webinar experience that engages prospective customers in real-time and can be made available in an on-demand format.
ON24 Breakouts: live breakout room experience that facilitates networking, collaboration and interactivity between users.
ON24 Forums: live, interactive experience that facilitates video-to-video interaction between presenters and audiences.
ON24 Go Live: live, interactive video event experience that enables presenters and attendees to engage face-to-face in real-time and can also be made available in an on-demand format.
ON24 Engagement Hub: always-on, rich multimedia content experience that prospective customers can engage anytime, anywhere.
ON24 Target: personalize and curate, rich landing page experience that engages specific segments of prospective customers to drive desired action.
ON24 AI-powered ACE: the next generation AI-powered analytics and content engine.
ON24 Translate: multilingual translation tool allowing customers to support content localization and propel global reach and engagement.
Annual Recurring Revenue (“ARR”): ARR is calculated as the sum of the annualized value of our subscription contracts as of the measurement date, including existing customers with expired contracts that we expect to be renewed. Our ARR amounts exclude professional services, overages from subscription customers and Legacy revenue.
Non-GAAP Financial Measures
In addition to our results determined in accordance with generally accepted accounting principles in the United States, or “GAAP”, we consider our non-GAAP operating income (loss), non-GAAP net income (loss), Adjusted EBITDA, and free cash flow in evaluating our operating performance. We define non-GAAP operating income (loss) as net income (loss) excluding, interest expense, other (income) expense, net, provision for income taxes, stock-based compensation, amortization of acquired intangible assets, shareholder activism related costs, restructuring costs, impairment charges for underutilized real estate, litigation related expenses from a shareholder class action suit, and certain other costs. We define non-GAAP net income (loss) as net income (loss) excluding stock-based compensation, amortization of acquired intangible assets, shareholder activism related costs, restructuring costs, impairment charges for underutilized real estate, litigation-related expenses from a shareholder class action suit, and certain other costs. We define Adjusted EBITDA as net income (loss) excluding interest expense, other (income) expense, net, provision for income taxes, depreciation and amortization, amortization of acquired intangible assets, amortization of cloud implementation costs, stock-based compensation, restructuring costs, impairment charges for underutilized real estate, litigation related expenses from a shareholder class action suit, and shareholder activism related costs. We define free cash flow as net cash provided by (used in) operating activities, less purchases of property and equipment.
We use non-GAAP operating income (loss), non-GAAP net income (loss), and Adjusted EBITDA to evaluate our ongoing operations and for internal planning and forecasting purposes, and we use free cash flow to measure and evaluate cash generated through normal business operations. We believe non-GAAP operating income (loss), non-GAAP net income (loss), and Adjusted EBITDA may be helpful to investors because they provide consistency and comparability with past financial performance. We believe free cash flow may be helpful to investors because it reflects that some purchases of property and equipment are necessary to support ongoing operations, while providing a measure of cash available to acquire customers, expand within existing customers and otherwise pursue our business strategies.
However, these non-GAAP financial measures are each presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Non-GAAP financial measures have no standardized meanings prescribed by GAAP and are not prepared under a comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measure as a tool for comparison.
We do not provide a quantitative reconciliation of the forward-looking non-GAAP financial measures included in this press release to the most directly comparable GAAP measures due to the high variability and difficulty to predict certain items excluded from these non-GAAP financial measures; in particular, the effects of stock-based compensation expense, and restructuring and transaction expenses. We expect the variability of these excluded items may have a significant, and potentially unpredictable impact on our future GAAP financial results.
Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measure are included in the tables at the end of this press release.
Forward-Looking Statements
This document contains “forward-looking statements” under applicable securities laws. Such statements can be identified by words such as: “outlook,” “expect,” “target,” “believe,” “plan,” “future,” “may,” “should,” “will,” and similar references to future periods. Forward-looking statements include express or implied statements regarding our expected financial and operating results, the execution of our capital return program, the size of our market opportunity, the success of our new products and capabilities, including our new AI-powered Analytics and Content Engine, and other statements regarding our ability to achieve our business strategies, growth, or other future events or conditions. Such statements are based on our current beliefs, expectations, and assumptions about future events or conditions, which are subject to inherent risks and uncertainties, including our ability to attract new customers and expand sales to existing customers; declines in our growth rate; fluctuation in our performance; our history of net losses; competition; technological development in our markets; decline in demand for our solutions; our ability to expand our sales and marketing capabilities and otherwise achieve our growth; the impact of the resumption of in-person marketing activities on our customer growth rate; disruptions or other issues with our technology or third-party services; compliance with data privacy, import and export controls, customs, sanctions and other laws and regulations; intellectual property matters; and matters relating to our common stock, along with the other risks and uncertainties discussed in the filings we make from time to time with the Securities and Exchange Commission. Actual results may differ materially from those indicated in forward-looking statements, and you should not place undue reliance on them. All statements herein are based only on information currently available to us and speak only as of the date hereof. Except as required by law, we undertake no obligation to update any such statement.
About ON24
ON24 is on a mission to help businesses bring their go-to-market strategy into the AI era and drive cost-effective revenue growth. Through its leading intelligent engagement platform, ON24 enables customers to combine our leading first-party experiences with personalization and content as well as capture and act on engagement insights, accelerating the buyer journey and propelling pipeline forward.
ON24 provides industry-leading companies, including 3 of the 6 largest global software companies, 4 of the 5 top global asset management firms, 3 of the 6 largest global pharmaceutical companies and 3 of the 5 largest global industrial companies, with a valuable source of first-party data to drive sales and marketing innovation, improve efficiency and increase business results. Headquartered in San Francisco, ON24 has offices globally in North America, EMEA and APAC. For more information, visit www.ON24.com.
© 2025 ON24, Inc. All rights reserved. ON24 and the ON24 logo are trademarks owned by ON24, Inc., and are registered in the United States Patent and Trademark Office and in other countries.
ON24, INC.
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
September 30, 2025
December 31, 2024
Assets
Current assets
Cash and cash equivalents
$
47,241
$
14,933
Marketable securities
127,926
167,803
Accounts receivable, net
14,819
28,616
Deferred contract acquisition costs, current
8,747
10,784
Prepaid expenses and other current assets
7,315
6,194
Total current assets
206,048
228,330
Property and equipment, net
5,112
6,673
Operating right-of-use assets
1,183
2,297
Intangible asset, net
306
660
Deferred contract acquisition costs, non-current
11,248
12,199
Other long-term assets
891
794
Total assets
$
224,788
$
250,953
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable
$
3,791
$
2,746
Accrued and other current liabilities
14,999
16,394
Deferred revenue
57,764
66,687
Operating lease liabilities, current
589
2,372
Total current liabilities
77,143
88,199
Operating lease liabilities, non-current
778
1,016
Other long-term liabilities
2,542
2,326
Total liabilities
80,463
91,541
Stockholders’ equity
Common stock
3
4
Additional paid-in capital
514,157
507,188
Accumulated deficit
(370,024
)
(347,669
)
Accumulated other comprehensive income (loss)
189
(111
)
Total stockholders’ equity
144,325
159,412
Total liabilities and stockholders’ equity
$
224,788
$
250,953
ON24, INC.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share data)
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
Revenue:
Subscription and other platform
$
31,987
$
33,860
$
96,729
$
102,836
Professional services
2,615
2,465
7,939
8,565
Total revenue
34,602
36,325
104,668
111,401
Cost of revenue:
Subscription and other platform (1)(5)
6,416
7,136
19,416
21,514
Professional services (1)(5)
2,323
2,202
7,227
7,144
Total cost of revenue
8,739
9,338
26,643
28,658
Gross profit
25,863
26,987
78,025
82,743
Operating expenses:
Sales and marketing (1)(5)
16,419
19,498
52,156
59,029
Research and development (1)(2)(5)
8,150
9,180
24,973
27,370
General and administrative (1)(3)(4)(5)
9,283
11,654
28,523
35,222
Total operating expenses
33,852
40,332
105,652
121,621
Loss from operations
(7,989
)
(13,345
)
(27,627
)
(38,878
)
Interest expense
82
6
119
27
Other income, net
(1,712
)
(2,128
)
(5,788
)
(6,710
)
Loss before provision for income taxes
(6,359
)
(11,223
)
(21,958
)
(32,195
)
Provision for income taxes
16
183
397
1,089
Net loss
(6,375
)
(11,406
)
(22,355
)
$
(33,284
)
Net loss per share:
Basic and diluted
$
(0.15
)
$
(0.27
)
$
(0.53
)
$
(0.80
)
Weighted-average shares used in computing net loss per share:
Basic and diluted
42,654,869
41,870,709
42,442,291
41,725,990
Includes stock-based compensation as follows:
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
Cost of revenue
Subscription and other platform
$
369
$
692
$
1,188
$
2,047
Professional services
104
119
367
369
Total cost of revenue
473
811
1,555
2,416
Sales and marketing
2,017
3,253
6,264
9,649
Research and development
1,356
2,322
4,082
6,696
General and administrative
3,412
5,490
9,865
15,528
Total stock-based compensation expense
$
7,258
$
11,876
$
21,766
$
34,289
Research and development expense includes amortization of acquired intangible asset of $147 thousand and $423 thousand for the three and nine months ended September 30, 2025, respectively, and $140 thousand and $416 thousand for the three and nine months ended September 30, 2024, respectively, in connection with the Vibbio acquisition in April 2022.
General and administrative expense for the three and nine months ended September 30, 2025 includes professional advisory expenses associated with activism defense and related costs of $39 thousand and $115 thousand, respectively. We did not incur such costs in the three months and nine months ended September 30, 2024.
General and administrative expense for the three and nine months ended September 30, 2025 includes legal costs associated with our IPO class action securities litigation of $62 thousand and $294 thousand, respectively. In prior periods the amounts were less meaningful to our results and thus not shown separately.
The results of operations for the three and nine months ended September 30, 2025 and 2024 includes restructuring costs, which primarily represent severance and related expense due to restructuring activities, as follows:
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
Cost of revenue
Subscription and other platform
$
75
$
137
$
569
$
350
Professional services
5
7
35
20
Total cost of revenue
80
144
604
370
Sales and marketing
23
342
801
1,347
Research and development
—
—
127
112
General and administrative
4
—
81
339
Total restructuring costs
$
107
$
486
$
1,613
$
2,168
ON24, INC.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
Cash flows from operating activities:
Net loss
$
(6,375
)
$
(11,406
)
$
(22,355
)
$
(33,284
)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
1,196
1,181
3,765
3,635
Stock-based compensation expense
7,258
11,876
21,766
34,289
Amortization of deferred contract acquisition cost
3,058
3,638
9,945
11,233
Provision for allowance for doubtful accounts and billing reserves
367
335
956
1,536
Non-cash lease expense
414
398
1,196
1,177
Accretion of marketable securities
(96
)
(1,352
)
(935
)
(4,287
)
Other
—
30
12
100
Change in operating assets and liabilities:
Accounts receivable
3,109
(60
)
12,841
12,653
Deferred contract acquisition cost
(1,956
)
(2,060
)
(6,957
)
(6,794
)
Prepaid expenses and other assets
614
(196
)
(1,202
)
(1,939
)
Accounts payable
(13
)
323
1,866
667
Accrued liabilities
(85
)
239
(1,308
)
(2,649
)
Deferred revenue
(4,388
)
(2,376
)
(8,923
)
(10,727
)
Other liabilities
(570
)
(275
)
(2,155
)
(1,789
)
Net cash provided by operating activities
2,533
295
8,512
3,821
Cash flows from investing activities:
Purchase of property and equipment
(371
)
(152
)
(2,336
)
(1,680
)
Purchase of marketable securities
(13,896
)
(26,504
)
(82,118
)
(152,925
)
Proceeds from maturities of marketable securities
28,000
22,900
122,920
114,548
Proceeds from sale of marketable securities
—
6,196
—
10,556
Net cash provided by (used in) investing activities
13,733
2,440
38,466
(29,501
)
Cash flows from financing activities:
Proceeds from exercise of stock options
312
690
782
1,684
Proceeds from issuance of common stock under ESPP
—
—
272
367
Payment for repurchase of common stock
(7,011
)
(8,327
)
(15,852
)
(18,603
)
Repayment of short-term financing and equipment loans
(81
)
—
(81
)
(72
)
Repayment of finance lease obligations
—
—
—
(127
)
Net cash used in financing activities
(6,780
)
(7,637
)
(14,879
)
(16,751
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
24
438
217
241
Net increase (decrease) in cash, cash equivalents and restricted cash
9,510
(4,464
)
32,316
(42,190
)
Cash, cash equivalents and restricted cash, beginning of period
37,819
15,572
15,013
53,298
Cash, cash equivalents and restricted cash, end of period
$
47,329
$
11,108
$
47,329
$
11,108
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets:
Cash and cash equivalents
$
47,241
$
11,017
$
47,241
$
11,017
Restricted cash included in other assets, non-current
88
91
88
91
Total cash, cash equivalent and restricted cash
$
47,329
$
11,108
$
47,329
$
11,108
ON24, INC.
Reconciliation of GAAP to Non-GAAP Results (Unaudited)
(in thousands, except share and per share data)
Reconciliation of gross profit and gross margin
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
GAAP gross profit
$
25,863
$
26,987
$
78,025
$
82,743
Add:
Stock-based compensation
473
811
1,555
2,416
Restructuring costs
80
144
604
370
Non-GAAP gross profit
$
26,416
$
27,942
$
80,184
$
85,529
GAAP gross margin
75
%
74
%
75
%
74
%
Non-GAAP gross margin
76
%
77
%
77
%
77
%
Reconciliation of operating expenses
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
GAAP sales and marketing
$
16,419
$
19,498
$
52,156
$
59,029
Less:
Stock-based compensation
(2,017
)
(3,253
)
(6,264
)
(9,649
)
Restructuring costs
(23
)
(342
)
(801
)
(1,347
)
Non-GAAP sales and marketing
$
14,379
$
15,903
$
45,091
$
48,033
GAAP research and development
$
8,150
$
9,180
$
24,973
$
27,370
Less:
Stock-based compensation
(1,356
)
(2,322
)
(4,082
)
(6,696
)
Restructuring costs
—
—
(127
)
(112
)
Amortization of acquired intangible asset
(147
)
(140
)
(423
)
(416
)
Non-GAAP research and development
$
6,647
$
6,718
$
20,341
$
20,146
GAAP general and administrative
$
9,283
$
11,654
$
28,523
$
35,222
Less:
Stock-based compensation
(3,412
)
(5,490
)
(9,865
)
(15,528
)
Restructuring costs
(4
)
—
(81
)
(339
)
Fees related to shareholder activism
(39
)
—
(115
)
—
Litigation related expense
(62
)
—
(294
)
—
Non-GAAP general and administrative
$
5,766
$
6,164
$
18,168
$
19,355
ON24, INC.
Reconciliation of GAAP to Non-GAAP Results (Unaudited)
(in thousands, except share and per share data)
Reconciliation of net loss to non-GAAP operating loss
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
Net loss
$
(6,375
)
$
(11,406
)
$
(22,355
)
$
(33,284
)
Add:
Interest expense
82
6
119
27
Other income, net
(1,712
)
(2,128
)
(5,788
)
(6,710
)
Provision for income taxes
16
183
397
1,089
Stock-based compensation
7,258
11,876
21,766
34,289
Amortization of acquired intangible asset
147
140
423
416
Restructuring costs
107
486
1,613
2,168
Fees related to shareholder activism
39
—
115
—
Litigation related expense
62
—
294
—
Non-GAAP operating loss
$
(376
)
$
(843
)
$
(3,416
)
$
(2,005
)
Reconciliation of net loss to Adjusted EBITDA
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
Net loss
$
(6,375
)
$
(11,406
)
$
(22,355
)
$
(33,284
)
Add:
Interest expense
82
6
119
27
Other income, net
(1,712
)
(2,128
)
(5,788
)
(6,710
)
Provision for income taxes
16
183
397
1,089
Depreciation and amortization
1,049
1,041
3,342
3,219
Amortization of acquired intangible asset
147
140
423
416
Amortization of cloud implementation costs
—
30
11
101
Stock-based compensation
7,258
11,876
21,766
34,289
Restructuring costs
107
486
1,613
2,168
Fees related to shareholder activism
39
—
115
—
Litigation related expense
62
—
294
—
Adjusted EBITDA
$
673
$
228
$
(63
)
$
1,315
Reconciliation of net loss to non-GAAP net income
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
Net loss
$
(6,375
)
$
(11,406
)
$
(22,355
)
$
(33,284
)
Add:
Stock-based compensation
7,258
11,876
21,766
34,289
Amortization of acquired intangible asset
147
140
423
416
Restructuring costs
107
486
1,613
2,168
Fees related to shareholder activism
39
—
115
—
Litigation related expense
62
—
294
—
Non-GAAP net income
$
1,238
$
1,096
$
1,856
$
3,589
ON24, INC.
Reconciliation of GAAP to Non-GAAP Results (Unaudited)
(in thousands, except share and per share data)
Reconciliation of GAAP to Non-GAAP basic and diluted net (loss) income per share
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
GAAP basic and diluted net loss per share:
Net loss
$
(6,375
)
$
(11,406
)
$
(22,355
)
$
(33,284
)
Weighted average common stock outstanding, basic and diluted
42,654,869
41,870,709
42,442,291
41,725,990
Net loss per share, basic and diluted
$
(0.15
)
$
(0.27
)
$
(0.53
)
$
(0.80
)
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
Non-GAAP basic and diluted net income per share:
Net loss
$
(6,375
)
$
(11,406
)
$
(22,355
)
$
(33,284
)
Add:
Stock-based compensation
7,258
11,876
21,766
34,289
Amortization of acquired intangible asset
147
140
423
416
Restructuring costs
107
486
1,613
2,168
Fees related to shareholder activism
39
—
115
—
Litigation related expense
62
—
294
—
Non-GAAP net income
$
1,238
$
1,096
$
1,856
$
3,589
Non-GAAP weighted-average common stock outstanding
Basic
42,654,869
41,870,709
42,442,291
41,725,990
Diluted
45,085,767
45,582,143
45,114,196
45,670,383
Non-GAAP net income per share of common stock:
Basic
$
0.03
$
0.03
$
0.04
$
0.09
Diluted
$
0.03
$
0.02
$
0.04
$
0.08
ON24, INC.
Reconciliation of GAAP to Non-GAAP Results (Unaudited)
(in thousands)
Reconciliation of GAAP Cash Flow from Operating Activities to Free Cash Flow
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
Net cash provided by operating activities:
$
2,533
$
295
$
8,512
$
3,821
Less: Purchases of property and equipment
(371
)
(152
)
(2,336
)
(1,680
)
Free cash flow
$
2,162
$
143
$
6,176
$
2,141
ON24, INC.
Revenue
(in thousands)
(Unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
Core Platform
Subscription and other platform
$
31,449
$
33,272
$
95,092
$
100,811
Professional services
2,521
2,336
7,610
8,097
Total core platform revenue
$
33,970
$
35,608
$
102,702
$
108,908
Virtual Conference
Subscription and other platform
$
538
$
588
$
1,637
$
2,025
Professional services
94
129
329
468
Total virtual conference revenue
$
632
$
717
$
1,966
$
2,493
Revenue
Subscription and other platform
$
31,987
$
33,860
$
96,729
$
102,836
Professional services
2,615
2,465
7,939
8,565
Total revenue
$
34,602
$
36,325
$
104,668
$
111,401