Snowflake (SNOW) Q2 2025 earnings summary

Executive summary

• Q2 FY25 revenue was $868.8M, up 29% year-over-year; product revenue reached $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, including 510 generating over $1M in product revenue (+28% YoY), and 736 Forbes Global 2000 customers.

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

• Innovation momentum continued with new AI and machine learning products, including Cortex AI and Iceberg, driving adoption and future revenue.

Financial highlights

• Q2 FY25 non-GAAP product gross margin was 76%, while GAAP product gross margin was 72%.

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

• Non-GAAP adjusted free cash flow margin was 8% for Q2 FY25; free cash flow was $58.8M (7% margin).

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

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

Outlook and guidance

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

• Full-year FY25 product revenue guidance raised to $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 not material impact from newer products; storage runoff and performance improvements are factored in.

• Management notes macroeconomic uncertainty may impact customer consumption and contract duration.