Q3 Highlights
🔹 Revenue: $1.30B (Est. $1.25B) 🟢; UP +15% YoY
🔹 EPS: $1.25 (Est. $1.08) 🟢; UP +23% YoY
Guidance (Q4’25)
🔹 Revenue: $1.31B–$1.32B (Est. $1.28B) 🟢; UP +9.5%–10.5% YoY (Organic +8%–9%)
🔹 Non-GAAP Diluted EPS: $1.17–$1.22 (Est. $1.14) 🟢
🔹 Non-GAAP Income from Operations: $230M–$240M
FY25 Outlook (Raised)
🔹 Reported Revenue Growth: 12.4%–12.6% (Prior 10%–11%) 🟢
🔹 Organic Revenue Growth: 11.3%–11.5% (Prior 9%–10%) 🟢
🔹 Non-GAAP Income from Operations: $900M–$910M (Prior $850M–$875M) 🟢
🔹 Free Cash Flow: $920M–$930M (Prior $875M–$900M) 🟢
Other Metrics
🔹 Adj Income from Operations: $235M; Margin 18.0%
🔹 Operating Cash Flow: $264M; Free Cash Flow: $248M
🔹 Active Customer Accounts: >392K (vs. >320K YoY)
🔹 Dollar-Based Net Expansion Rate: 109% (vs. 105% YoY)
🔹 Employees: 5,541
🔹 Share Repurchases: $349.8M in Q3; ~$656.7M YTD; ~$1.3B authorization remaining (through 2027)
Strategic / Commentary
🔸 “Another record quarter of revenue and non-GAAP income from operations… we’ve raised full-year revenue, profitability, and FCF targets.” — CEO Khozema Shipchandler
🔸 Signed definitive agreement to acquire Stytch, Inc. (identity platform for AI agents); expected close mid-Nov, subject to customary conditions.