Snowflake (SNOW) Q2 2025 earnings summary

Executive summary

• Q2 FY25 revenue reached $868.8M, up 29% year-over-year; product revenue was $829.3M, up 30% year-over-year, with strong growth in financial services, technology, and marketplace expansion.

• Net revenue retention rate was 127% as of July 31, 2024, reflecting robust expansion with existing customers.

• Total customers reached 10,249 (+21% YoY), including 510 generating over $1M in product revenue (+28% YoY); Forbes Global 2000 customers totaled 736, up 5% YoY.

• Remaining performance obligations (RPO) grew 48% year-over-year to $5.2B.

• Innovation accelerated with nine new product announcements, strong AI and machine learning adoption, and early traction for Cortex and Iceberg.

Financial highlights

• Q2 FY25 GAAP net loss was $316.9M, or $(0.95) per share; non-GAAP net income was $63.9M, or $0.18 per diluted share.

• Product gross margin was 72% GAAP and 76% non-GAAP for Q2 FY25.

• Non-GAAP operating margin was 5% for Q2 FY25, down from 8% in Q2 FY24.

• Free cash flow was $58.8M (7% margin); adjusted free cash flow was $66.0M (8% margin).

• Ended Q2 with $3.9B in cash, cash equivalents, and investments.

Outlook and guidance

• Q3 FY25 product revenue guidance: $850–$855M, representing 22% year-over-year growth.

• Full-year FY25 product revenue guidance: $3.36B, up 26% year-over-year.

• FY25 non-GAAP product gross margin expected at 75%; non-GAAP operating margin at 3%; adjusted free cash flow margin at 26%.

• Guidance includes Snowpark contribution but excludes material impact from newer products; storage runoff expected in the second half.