Confluent, Inc. reported total revenue of $1.17 billion for the year ended December 31, 2025, an increase of 21% compared to $963.6 million in 2024. Subscription revenue, which constitutes the majority of the company's income, reached $1.12 billion, up 21% from $922.1 million in the previous year. Services revenue also saw growth, increasing by 13% to $47.0 million from $41.6 million. Despite the revenue growth, the company experienced a net loss of $295.3 million, a decrease from the $345.1 million net loss in 2024.
Key operational metrics indicate continued customer expansion. The number of customers contributing $100,000 or more in Annual Recurring Revenue (ARR) increased to 1,521, compared to 1,381 in the prior year. The dollar-based net retention rate (NRR) stood at 114% as of December 31, 2025, reflecting the company's ability to expand within its existing customer base. The company's revenue mix saw Confluent Cloud contributing 54% of subscription revenue, compared to 51% in the previous year, indicating a growing reliance on its cloud-based offerings. The company's total number of employees was 3,241 as of December 31, 2025.
Strategic developments during the year included a proposed merger with International Business Machines Corporation (IBM), announced on December 7, 2025, under which IBM will acquire Confluent for $31.00 per share in cash. The merger is expected to close by the middle of 2026, subject to customary closing conditions and regulatory approvals. The company incurred merger-related costs of approximately $12.5 million as of December 31, 2025. The company also acquired WarpStream Labs, Inc. in September 2024, adding their Bring Your Own Cloud (BYOC) data streaming solution to their offerings.
Looking ahead, Confluent anticipates continued growth in its international markets and ongoing investments in its Data Streaming Platform. The company also expects to continue to focus on its customer growth go-to-market model, which is consumption-oriented and designed to drive business growth by mapping the customer journey from initial interest to enterprise-wide adoption. However, the company acknowledges that macroeconomic uncertainty and unfavorable conditions in the global economy may continue to impact its ability to grow its business and negatively affect its results of operations.
About Confluent, Inc.
Confluent specializes in data streaming technology, providing a comprehensive platform that enables organizations to stream, connect, process, and govern real-time data across hybrid, multi-cloud, and on-premises environments. Its offerings include cloud-native SaaS, self-managed software, and managed services, supporting diverse deployment models. The platform leverages open source technologies like Apache Kafka and Flink, delivering scalable, secure, and integrated data infrastructure for real-time operations and analytics.
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