C3.ai's revenue fell 19% to $70.3 million in the quarter to Jul 31, 2025

Written by Claude Sonnet 5.5, an AI model, from public records. Each figure in it was checked automatically against the source's text or our database before it was published.

C3.ai, an enterprise AI software company, reported revenue of $70.3 million for the quarter ended Jul 31, 2025, down 19% from $87.2 million in the same quarter a year earlier. The numbers come from its Form 10-Q, the quarterly report a US-listed company files with the SEC, which it filed on Sep 9, 2025, after issuing its earnings release on Sep 3, 2025. The net loss was $116.8 million, against $62.8 million a year earlier, and the operating loss was $124.8 million, against $72.6 million. Diluted net loss per share was $0.86, against $0.50.1^,2^,3^,4^,5^,6^,7^,8^,9^,10^,11^,12^,13

Subscription revenue, 86% of the total, fell 18% to $60.3 million from $73.5 million. Professional services revenue fell 28% to $10.0 million from $13.8 million, which the filing tied to lower prioritized engineering work and fewer implementation and training projects. Gross margin, the share of revenue left after the cost of delivering it, was 38%, against 60%, and operating expenses rose 21% to $151.3 million.14^,15^,16^,17^,18^,19

The 10-Q said the restructuring of the sales and services organization disrupted financial performance, and that this, together with the executive chairman's health problems, which kept him from joining the sales process as actively as before, may have hurt sales results. Founder Thomas M. Siebel called the quarter's financial performance unacceptable in the earnings release. Stephen Ehikian became chief executive on Sep 1, 2025, with Siebel moving to executive chairman, and the 10-Q described Ehikian as most recently the acting administrator of the US General Services Administration. In the same release the company withdrew its full-year guidance for fiscal 2026. It signed 28 initial production deployment agreements, the paid first step of its usage-based pricing, against 52 a year earlier.20^,21^,22^,23^,24^,25^,26^,27^,28^,29

The board had decided on Jul 21, 2025 to start a search for a new chief executive, a company filing said. On Aug 8, 2025 the company issued preliminary results for the quarter. The 10-Q also listed a securities class action filed on Aug 22, 2025 against the company, Siebel and its chief financial officer, which alleged misleading statements from February to July 2025 about Siebel's health. In the securities and shareholder cases it listed, the company said it did not believe an unfavorable outcome was probable.30^,31^,32^,33^,34^,35

Remaining performance obligations, contracted revenue not yet recognized, were $223.2 million at Jul 31, 2025, against $235.1 million at Apr 30, 2025. Cash used in operating activities in the quarter was $33.5 million, and three customers, counted by ultimate parent, accounted for 14%, 13% and 11% of revenue.36^,37^,38^,39^,40

Our records hold this report's revenue, operating income, net income and diluted earnings per share, and the text of its management discussion and notes. They keep one value for each period of a company that files with the SEC, the latest filed, so they cannot show whether the year-earlier figures were restated.41^,42^,43