C3.ai's Q3 2025 revenue met expectations amid a 20.3% YoY drop, with declining growth and negative cash flow.

C3.ai reported Q3 2025 revenue of $75.15 million, meeting estimates despite a 20.3% year-over-year decline, with non-GAAP loss of $0.25 per share slightly missing expectations. Subscription revenue hit $70.2 million, making up 93% of total revenue, while full-year guidance of $299.5 million aligns with forecasts. The company’s operating margin worsened to -149%, and free cash flow remained negative at $46.88 million. Customer acquisition payback period was 43.4 months, and revenue growth slowed to 11.3% over two years, with a projected 12-month decline of 10.4%. The stock traded flat at $15.06 post-earnings amid cautious sentiment.