Snowflake (SNOW) Q3 2025 earnings summary

Executive summary

• Q3 FY25 revenue reached $942.1M, up 28% year-over-year; product revenue was $900.3M, up 29% year-over-year, driven by increased platform consumption and customer growth to 10,618, including 754 Forbes Global 2000 customers and 542 generating over $1M in product revenue.

• Net revenue retention rate remained strong at 127% as of October 31, 2024.

• Non-GAAP product gross margin was 76% for Q3 FY25, with non-GAAP operating margin at 6% and adjusted free cash flow margin at 9%.

• Net loss widened to $327.9M for the quarter, with GAAP operating loss at $365.5M, reflecting higher operating expenses and continued investment in growth.

• Customer base expanded, including large global enterprises and government agencies, with Forbes Global 2000 customer count up 8% year-over-year.

Financial highlights

• Q3 FY25 product revenue grew 29% year-over-year to $900.3M; total revenue for the quarter was $942.1M.

• Remaining performance obligations (RPO) totaled $5.7B, up 55% year-over-year, with about 50–57% expected to be recognized as revenue in the next twelve months.

• Non-GAAP net income was $73.2M (8% of revenue), while GAAP net loss was $327.9M (-35% of revenue); non-GAAP net income per diluted share was $0.20, GAAP net loss per share was $(0.98).

• Free cash flow for Q3 FY25 was $78.2M (8% margin); adjusted free cash flow was $86.8M (9% margin).

• GAAP product gross margin was 71% for Q3 FY25, down from 74% year-over-year, primarily due to increased cloud infrastructure costs and new product launches.

Outlook and guidance

• Q4 FY25 product revenue guidance: $906M–$911M, representing 23% year-over-year growth.

• Full-year FY25 product revenue guidance: $3.43B, up 29% year-over-year.

• FY25 non-GAAP product gross margin expected at 76%, non-GAAP operating margin at 5%, and adjusted free cash flow margin at 26%.

• Guidance reflects potential dilution from convertible senior notes issued in 2024.

• Management notes macroeconomic uncertainty and customer optimization may impact consumption patterns.