C3.ai, Inc. (AI): verified earnings note

"Revenue was $52.4 million, on plan. Free cash flow was positive $2.1 million. Non-GAAP operating loss was $36.2 million, a 33% improvement QoQ. Bookings increased 73% QoQ. Cash balance was $651.1 million, up $76 million QoQ. The Company has done exactly what a disciplined, focused turnaround should do. We restructured Sales. We aligned cash outflows with cash inflows. We instituted rigorous expense control. We installed experienced leadership across the board, and we implemented rigorous management discipline across every line of business.

Revenue has stabilized, free cash flow is positive, operating loss has narrowed, and Forrester Research named C3 AI a leader in Enterprise AI. The plan is working, we are on track with laser-like management discipline to grow revenue, generate cash, attain non-GAAP profitability, maintain technology leadership, and increase customer satisfaction," said Thomas M. Siebel, Chairman and Chief Executive Officer, C3 AI.

"Revenue was $52.4 million, on plan. Free cash flow was positive $2.1 million. Non-GAAP operating loss was $36.2 million, a 33% improvement QoQ. Bookings increased 73% QoQ. Cash balance was $651.1 million, up $76 million QoQ. The Company has done exactly what a disciplined, focused turnaround should do. We restructured Sales. We aligned cash outflows with cash inflows. We instituted rigorous expense control. We installed experienced leadership across the board, and we implemented rigorous management discipline across every line of business.

Bookings increase 73% quarter over quarter

•Cash, cash equivalents, and marketable securities was $651.1 million.

(in millions) | Second Quarter Fiscal 2027Guidance | Full Year Fiscal 2027 Guidance Total revenue | $51.0 - $55.0 | $210.0 - $240.0 Non-GAAP loss from operations | $(34.5) - $(42.5) | $(123.0) - $(155.0)

(in millions) | Second Quarter Fiscal 2027Guidance | Full Year Fiscal 2027 Guidance Total revenue | $51.0 - $55.0 | $210.0 - $240.0 Non-GAAP loss from operations | $(34.5) - $(42.5) | $(123.0) - $(155.0)

Revenue has stabilized, free cash flow is positive, operating loss has narrowed, and Forrester Research named C3 AI a leader in Enterprise AI. The plan is working, we are on track with laser-like management discipline to grow revenue, generate cash, attain non-GAAP profitability, maintain technology leadership, and increase customer satisfaction," said Thomas M. Siebel, Chairman and Chief Executive Officer, C3 AI.

Three Months Ended July 31, 2026 | 2025 Cash flows from operating activities: Net loss | $ | (92,812) | $ | (116,769) Adjustments to reconcile net loss to net cash provided by (used in) operating activities Depreciation and amortization | 3,403 | 3,415 Non-cash operating lease cost | 149 | 88 Stock-based compensation expense | 59,233 | 64,775 Accretion of discounts on marketable securities | (1,305) | (2,811) Other | 34 | 262 Changes in operating assets and liabilities Accounts receivable | 5,946 | 23,302 Prepaid expenses, other current assets and other assets | 7,562 | (230) Accounts payable | 3,083 | (2,931) Accrued compensation and employee benefits | (2,048) | 3,343 Operating lease liabilities | (1,300) | 2,187 Other liabilities | 2,874 | (1,538) Deferred revenue | 17,253 | (6,628) Net cash provided by (used in) operating activities | 2,072 | (33,535) Cash flows from investing activities: Purchases of property and equipment | (8) | (760) Purchases of marketable securities | (129,154) | (206,492) Maturities and sales of marketable securities | 124,516 | 156,081 Net cash used in investing activities | (4,646) | (51,171) Cash flows from financing activities: Proceeds from exercise of Class A common stock options | 72,812 | 1,289 Net cash provided by financing activities | 72,812 | 1,289 Net increase (decrease) in cash, cash equivalents and restricted cash | 70,238 | (83,417) Cash, cash equivalents and restricted cash at beginning of period | 78,763 | 176,924 Cash, cash equiv

(in millions) | Second Quarter Fiscal 2027Guidance | Full Year Fiscal 2027 Guidance Total revenue | $51.0 - $55.0 | $210.0 - $240.0 Non-GAAP loss from operations | $(34.5) - $(42.5) | $(123.0) - $(155.0)

• | Non-GAAP Loss from Operations was $(54.4) million, better than the Company's guidance range of $(56.0) to $(64.0) million.

During the quarter, C3 AI signed 28 agreements, including nine new Initial Production Deployments (IPDs) and seven IPD conversions. Even though bookings were lower than expected, the Company continues to see strong customer validation and an accelerating Enterprise AI market opportunity.

As previously disclosed, C3 AI implemented a restructuring plan in the fourth quarter designed to deliver approximately $135 million in annualized non-GAAP cost savings and reduce cash burn by approximately the same amount. The workforce-related actions are substantially complete, and non-employee expense reductions are expected to be substantially realized starting in the second half of fiscal year 2027.

"We came in within our revenue guidance and meaningfully better than guidance on operating loss, which reflects the early benefit of the cost actions we took in the fourth quarter," said Hitesh Lath, Chief Financial Officer. "We ended the year with $575.4 million in cash, cash equivalents, and investments. With Tom returning to the CEO role and our restructuring substantially complete, we are well positioned to drive operating leverage as the savings fully take hold in the back half of fiscal 2027."

• | Cash, Cash Equivalents, and Investments: $575.4 million, reflecting the Company's strong balance sheet.

Effective May 8, 2026, Thomas M. Siebel resumed the role of Chief Executive Officer of C3 AI and continues to serve as Chairman of the Board of Directors. Stephen Ehikian continues as President of C3 AI, reporting to Mr. Siebel.

As previously disclosed, C3 AI implemented a restructuring plan in the fourth quarter designed to deliver approximately $135 million in annualized non-GAAP cost savings and reduce cash burn by approximately the same amount. The workforce-related actions are substantially complete, and non-employee expense reductions are expected to be substantially realized starting in the second half of fiscal year 2027.

All numbers reported are unaudited, preliminary estimates. Completed financial results for the fourth quarter and full fiscal year ended April 30, 2026 will be provided on June 3, 2026.

"I joined C3 AI six months ago and I did so with a clear conviction: this company is uniquely positioned to win in Enterprise AI. That conviction has been reinforced through extensive engagement with customers, prospects, partners, and investors. However, it was clear to me that we were not organized appropriately. We've reduced our cost structure and cash burn. We've restructured and flattened the sales organization. We've focused efforts on our best-in-class applications. We've shifted our go-to-market toward large-scale, enterprise-wide transformations. We've accelerated how we build and deliver product. And we are infusing our AI across every function at C3 AI. Those changes are substantially complete and C3 AI is now a more agile, more disciplined, and more accountable organization. Moving forward, our entire focus is on executing our return to growth and building C3 AI into a profitable, cash-positive business," said Stephen Ehikian, CEO, C3 AI.

•C3 AI launched a restructuring plan designed to materially improve operating efficiency and position the company for success. This is expected to result in annual cost savings and reduced cash burn of approximately $135 million in non-GAAP operating expenses.

•In Q3, total bookings across federal, defense and aerospace increased by 134% year-over-year, representing 55% of total bookings.

(in millions) | Fourth Quarter Fiscal 2026 Guidance | Full Year Fiscal 2026 Guidance Total revenue | $48.0 - $52.0 | $246.7 - $250.7 Non-GAAP loss from operations | $(56.0) - $(64.0) | $(219.5) - $(227.5)

(in millions) | Fourth Quarter Fiscal 2026 Guidance | Full Year Fiscal 2026 Guidance Total revenue | $48.0 - $52.0 | $246.7 - $250.7 Non-GAAP loss from operations | $(56.0) - $(64.0) | $(219.5) - $(227.5)

(in millions) | Fourth Quarter Fiscal 2026 Guidance | Full Year Fiscal 2026 Guidance Total revenue | $48.0 - $52.0 | $246.7 - $250.7 Non-GAAP loss from operations | $(56.0) - $(64.0) | $(219.5) - $(227.5)

C3 AI's Federal business, together with the defense and aerospace segment, gained traction, driven by new U.S. Federal government agreements and growing international adoption.

•GAAP net loss per share was $(0.75). Non-GAAP net loss per share was $(0.25).

"We delivered a solid quarter driven by excellent performance in our Federal business and increased high-value deal activity across our customer base. The Federal market continues to be a large growth vector for us," said Stephen Ehikian, CEO, C3 AI. "Both Federal and commercial customers want to move faster, scale sooner, and embed AI as a core operating capability that delivers measurable economic value - and our platform is built for this moment."

•C3 AI's Federal business experienced significant traction across multiple government agencies as bookings across federal, defense and aerospace grew 89% year-over-year.

•Total bookings increased by 49% quarter-over-quarter, driven by expansions and increased high-value deal activity, including 17 agreements greater than $1 million and six agreements greater than $5 million.

"We have crafted a detailed execution plan and put in place precise operational objectives for each business unit," said Stephen Ehikian, CEO, C3 AI. "This plan prioritizes our execution in areas where we have demonstrable leadership, clear customer success, and the right to win, and concentrates our efforts on our fastest-growing sectors. I believe the execution of this plan will facilitate our return to growth and provide a clear pathway to cash generation and non-GAAP profitability."

(in millions) | Third Quarter Fiscal 2026 Guidance | Full Year Fiscal 2026 Guidance Total revenue | $72.0 - $80.0 | $289.5 - $309.5 Non-GAAP loss from operations | $(44.0) - $(52.0) | $(180.5) - $(210.5)

(in millions) | Third Quarter Fiscal 2026 Guidance | Full Year Fiscal 2026 Guidance Total revenue | $72.0 - $80.0 | $289.5 - $309.5 Non-GAAP loss from operations | $(44.0) - $(52.0) | $(180.5) - $(210.5)

Federal growth accelerated, despite headwinds from the government shutdown, as agencies and partners navigate the shift from custom government off-the-shelf (GOTS) builds to mandated commercial-off-the-shelf technology (COTS) solutions.

•The joint 12-month qualified opportunity pipeline with partners increased by 108% year-over-year.

(in millions) | Third Quarter Fiscal 2026 Guidance | Full Year Fiscal 2026 Guidance Total revenue | $72.0 - $80.0 | $289.5 - $309.5 Non-GAAP loss from operations | $(44.0) - $(52.0) | $(180.5) - $(210.5)

•$711.9 million in cash, cash equivalents, and marketable securities as of July 31, 2025.

REDWOOD CITY, Calif. - August 8, 2025 - C3.ai, Inc. ("C3 AI," "C3," or the "Company") (NYSE: AI), the Enterprise AI application software company, today announced preliminary financial results for its fiscal first quarter ended July 31, 2025. All numbers reported are unaudited, preliminary estimates. Completed financial results for the first quarter ended July 31, 2025, an update on fiscal 2026 guidance, and additional details will be provided on September 3, 2025.

•Non-GAAP loss from operations was ($57.7) million - ($57.9) million.

Range of Preliminary Results Three Months Ended July 31, 2025 Reconciliation of GAAP loss from operations to non-GAAP loss from operations: Loss from operations on a GAAP basis | $ | (124.7) | $ | (124.9) Estimated stock-based compensation expense | 64.8 | 64.8 Estimated employer payroll tax expense related to employee stock-based compensation | 2.2 | 2.2 Loss from operations on a non-GAAP basis | $ | (57.7) | $ | (57.9)

The preliminary financial results presented herein are estimates and subject to the completion of the Company's financial closing and other procedures and finalization of the Company's consolidated financial statements for its quarter ended July 31, 2025 and subsequent events may occur that require adjustments to these results. These preliminary financial results have not been reviewed by the Company's independent auditors. Accordingly, actual financial and operating results that will be reflected in the Company's Quarterly Report on Form 10-Q for the three months ended July 31, 2025, including in its financial statements, may differ materially from these preliminary results. In addition, any statements regarding the Company's estimated financial results for the quarterly period ended July 31, 2025 included herein do not present all information necessary for an understanding of the Company's financial condition and results of operations as of and for the quarterly period ended July 31, 2025. Moreover, this preliminary information for the quarterly period ended July 31, 2025 is not necessarily indicative of results that may be achieved for any future period.

REDWOOD CITY, Calif. - August 8, 2025 - C3.ai, Inc. ("C3 AI," "C3," or the "Company") (NYSE: AI), the Enterprise AI application software company, today announced preliminary financial results for its fiscal first quarter ended July 31, 2025. All numbers reported are unaudited, preliminary estimates. Completed financial results for the first quarter ended July 31, 2025, an update on fiscal 2026 guidance, and additional details will be provided on September 3, 2025.

The preliminary financial results presented herein are estimates and subject to the completion of the Company's financial closing and other procedures and finalization of the Company's consolidated financial statements for its quarter ended July 31, 2025 and subsequent events may occur that require adjustments to these results. These preliminary financial results have not been reviewed by the Company's independent auditors. Accordingly, actual financial and operating results that will be reflected in the Company's Quarterly Report on Form 10-Q for the three months ended July 31, 2025, including in its financial statements, may differ materially from these preliminary results. In addition, any statements regarding the Company's estimated financial results for the quarterly period ended July 31, 2025 included herein do not present all information necessary for an understanding of the Company's financial condition and results of operations as of and for the quarterly period ended July 31, 2025. Moreover, this preliminary information for the quarterly period ended July 31, 2025 is not necessarily indicative of results that may be achieved for any future period.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "estimate," "expect," "intend," "may," "will" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements in this press release include, but are not limited to, statements regarding our preliminary estimated financial results and other non-historical statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, including the risk that subsequent events may occur that require adjustments to the preliminary financial results presented herein, our history of losses and ability to achieve and maintain profitability in the future, our historic dependence on a limited number of existing customers that account for a substantial portion of our revenue, our ability to attract new customers and retain existing customers, market awareness and acceptance of enterprise AI solutions in general and our products in particular, the length and unpredictability of our sales cycl