# Confluent Inc. (CFLT) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-18  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/CFLT/thesis · /stocks/CFLT/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/CFLT/fundamental

## Navigation

- Overview: /stocks/CFLT
- Financials (this page): /stocks/CFLT/financials
- Thesis: /stocks/CFLT/thesis
- Investment Memo: /stocks/CFLT/memo
- Coverage universe: /stocks