Confluent Inc.

CFLT
Financial Analysis · Updated May 18, 2026 · Coverage 2026-Q2
Latest Q Revenue
$314.8M
Q4 2025 · +20.5% YoY

Financial Snapshot


ticker: CFLT step: 04 generated: 2026-05-13 source: quick-research

Confluent, Inc. (CFLT) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $586M $777M $964M +24%
Subscription Revenue ~$566M ~$748M ~$925M +24%
Gross Margin ~71% ~73% ~74% improving
GAAP Operating Margin ~-45% ~-30% ~-20% improving
Non-GAAP Operating Margin ~-8% ~0% ~5% approaching breakeven

FY2025: Revenue $1.167B (+21% YoY). Confluent Cloud grew 23–24% YoY; RPO $1.26B (+43% YoY, 4th consecutive quarter of acceleration). 1,487 customers at $100K+ ARR; 234 at $1M+ ARR. Q4 2025: stock +13.7% on positive cash flow achievement and strong guidance. GAAP losses persist (~$60–80M/quarter) despite revenue scale.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$60–80M
Free Cash Flow ~$40–60M (~5% FCF margin)
Capital Expenditures ~$20M
Cash & Equivalents ~$1.8B
Total Debt ~$1.45B (convertible notes)

Strong cash position ($1.8B) relative to debt. FCF turned positive in FY2024 — a key milestone. GAAP losses from SBC (~25% of revenue) and infrastructure investment. Non-GAAP operating margin reached 5–6% in late 2024 — inflecting toward 10%+ in FY2025. Forecast to remain GAAP unprofitable for 3+ years, but non-GAAP and FCF profitability demonstrate business economics are sound.

Key Ratios (approximate)

  • P/E: N/A (GAAP losses) | EV/Sales: ~5–6x | FCF Yield: ~1%
  • Revenue Growth (TTM): ~21% | Non-GAAP Operating Margin: ~6–8%

Growth Profile

Confluent grew from $586M (FY2022) to $1.167B (FY2025) — doubling in 3 years — but growth decelerated from 33% (FY2023) to 21% (FY2025). Confluent Cloud (consumption-based) is accelerating as Platform (license) matures. RPO acceleration (+43%) is the strongest forward indicator — contracted revenue is growing faster than recognized revenue, suggesting FY2026 re-acceleration. The $1M+ ARR customer cohort (234 customers, growing rapidly) provides revenue quality and expansion potential.

Forward Estimates

  • FY2026: Revenue ~$1.35–1.45B (+15–25% YoY); Confluent Cloud growth maintaining 20–25%
  • Non-GAAP operating margin: tracking toward 10–12% as Platform matures
  • FCF margin: targeting 8–12% as operating leverage improves
  • Analyst median PT: $25 (range $20–36; 41 analysts, Strong Buy consensus)
  • RPO $1.26B: ~2x forward revenue visibility; contracted backlog growing faster than revenue

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $CFLT.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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