Revenue continues to decline with a 5.6% year-over-year contraction in 2025Q4, while the company struggles to convert its 74.9% gross margin into positive operating income, which remains at -23.5%.
| Sales/Revenue | 139.31M | 148.08M | 163.71M | 190.87M | 203.61M | 156.94M | 89.13M | 82.61M |
| Revenue Growth % | -5.92% | -9.55% | -14.23% | -6.26% | 29.74% | 76.08% | 7.9% | - |
| Cost of Goods Sold | 35.34M | 38.01M | 46.26M | 52.78M | 47.37M | 33.34M | 27.14M | 24.92M |
| COGS % of Revenue | 25.37% | 25.67% | 28.26% | 27.65% | 23.26% | 21.24% | 30.45% | 30.17% |
| Gross Profit | 103.97M | 110.07M | 117.44M | 138.09M | 156.25M | 123.61M | 61.99M | 57.69M |
| Gross Margin % | 74.63% | 74.33% | 71.74% | 72.35% | 76.74% | 78.76% | 69.55% | 69.83% |
| Gross Profit Growth % | -5.54% | -6.28% | -14.95% | -11.62% | 26.41% | 99.39% | 7.46% | - |
| Operating Expenses | 139.74M | 160.73M | 179.45M | 197.67M | 179.84M | 101.76M | 78.09M | 73.77M |
| OpEx % of Revenue | 100.31% | 108.54% | 109.61% | 103.56% | 88.32% | 64.84% | 87.61% | 89.3% |
| Selling, General & Admin | 106.77M | 124.48M | 138.32M | 153.57M | 145M | 82.49M | 62.36M | 60.28M |
| SG&A % of Revenue | 76.64% | 84.06% | 84.49% | 80.46% | 71.21% | 52.56% | 69.97% | 72.97% |
| Research & Development | 32.97M | 36.25M | 41.12M | 44.1M | 34.84M | 19.27M | 15.73M | 14.34M |
| R&D % of Revenue | 23.67% | 24.48% | 25.12% | 23.11% | 17.11% | 12.28% | 17.65% | 17.36% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -850K |
| Operating Income | -35.77M | -50.66M | -62M | -59.58M | -23.59M | 21.84M | -16.1M | -16.09M |
| Operating Margin % | -25.68% | -34.21% | -37.87% | -31.22% | -11.59% | 13.92% | -18.06% | -19.47% |
| Operating Income Growth % | 29.38% | 18.3% | -4.06% | -152.58% | -208% | 235.66% | -0.1% | - |
| EBITDA | -30.93M | -45.83M | -56.64M | -52.2M | -19M | 24.82M | -6.76M | -14.1M |
| EBITDA Margin % | -22.2% | -30.95% | -34.6% | -27.35% | -9.33% | 15.81% | -7.58% | -17.07% |
| EBITDA Growth % | 32.51% | 19.09% | -8.5% | -174.79% | -176.55% | 467.12% | 52.07% | - |
| D&A (Non-Cash Add-back) | 4.84M | 4.83M | 5.36M | 7.38M | 4.59M | 2.97M | 9.34M | 1.98M |
| EBIT | -28.29M | -41.49M | -50.7M | -57.07M | -24.08M | 21.92M | -16.14M | -16.93M |
| Net Interest Income | -163K | 4.03M | 3.82M | 1.73M | 221K | -869K | -1.03M | -1.05M |
| Interest Income | 0 | 4.07M | 3.91M | 1.91M | 685K | 0 | 0 | 0 |
| Interest Expense | 163K | 34K | 93K | 181K | 464K | 869K | 1.03M | 1.05M |
| Other Income/Expense | 7.32M | 9.13M | 11.21M | 2.33M | -951K | -793K | -1.07M | -1.31M |
| Pretax Income | -28.45M | -41.52M | -50.79M | -57.25M | -24.54M | 21.05M | -17.17M | -17.39M |
| Pretax Margin % | -20.43% | -28.04% | -31.03% | -29.99% | -12.05% | 13.41% | -19.27% | -21.05% |
| Income Tax | 398K | 633K | 995K | 958K | -285K | 297K | 355K | 198K |
| Effective Tax Rate % | -1.4% | -1.52% | -1.96% | -1.67% | 1.16% | 1.41% | -2.07% | -1.14% |
| Net Income | -28.85M | -42.16M | -51.79M | -58.21M | -24.26M | 20.75M | -17.53M | -17.59M |
| Net Margin % | -20.71% | -28.47% | -31.63% | -30.5% | -11.91% | 13.22% | -19.66% | -21.29% |
| Net Income Growth % | 31.56% | 18.6% | 11.03% | -139.97% | -216.88% | 218.41% | 0.36% | - |
| Net Income (Continuing) | -28.85M | -42.16M | -51.79M | -58.21M | -24.26M | 20.75M | -17.53M | -17.59M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.68 | -1.01 | -1.16 | -1.23 | -0.52 | 0.09 | -0.73 | -0.55 |
| EPS Growth % | 32.67% | 12.93% | 5.69% | -136.54% | -670.8% | 112.48% | -32.73% | - |
| EPS (Basic) | -0.68 | -1.01 | -1.16 | -1.23 | -0.52 | 0.09 | -0.73 | -0.55 |
| Diluted Shares Outstanding | 42.45M | 41.76M | 44.64M | 47.49M | 47.73M | 44.47M | 44.47M | 40.75M |
| Basic Shares Outstanding | 42.45M | 41.76M | 44.64M | 47.49M | 47.73M | 44.47M | 44.47M | 40.75M |
| Dividend Payout Ratio | - | - | - | - | - | 0.3% | - | - |
Persistent revenue contraction
As reported in recent financial filings, ONTF's revenue has experienced a sustained decline, with the most recent quarter showing a -5.6% year-over-year contraction, suggesting that the company continues to struggle with post-pandemic churn and a lack of new customer acquisition momentum in the enterprise segment.
The consistent negative growth rates across the last ten quarters indicate that the company has yet to find a stable revenue floor. This trend suggests that the platform's value proposition may be facing significant headwinds from competitive displacement or a broader rationalization of B2B marketing budgets.
Based on the provided income statement data, ONTF has maintained a relatively stable gross margin profile, hovering around 74.9% in the most recent quarter, which indicates that the underlying cost of service delivery remains well-contained despite the ongoing decline in total top-line revenue generation.
While the gross margin remains resilient, it is important to note that this stability may be masking underlying inefficiencies in how customer success costs are classified. Investors should monitor whether these margins can be sustained if the company is forced to increase service intensity to combat rising churn.
According to the company's historical income statements, ONTF continues to operate with a significant disconnect between gross profit and operating income, as evidenced by a -23.5% operating margin that reflects a failure to achieve the necessary scale to cover its substantial fixed operating expense base.
The inability to scale operating income alongside gross profit suggests that the current cost structure is misaligned with the company's reduced revenue footprint. This persistent operating loss warrants further investigation into whether management can successfully right-size the organization without sacrificing its core product development capabilities.
As indicated by the quarterly financial data, ONTF consistently records significant stock-based compensation expenses, which reached $6.9M in the most recent quarter, effectively offsetting a large portion of the gross profit and complicating the path toward achieving positive GAAP net income for shareholders.
The reliance on equity-based incentives in an environment of declining revenue and negative earnings appears to be a significant drag on shareholder value. Investors should consider the impact of this ongoing dilution on future earnings per share, especially if the company remains unable to reach profitability.
Based on reported figures, the company's SG&A expenses remain disproportionately high relative to revenue, consuming $26.1M in the most recent quarter, which highlights a rigid cost structure that appears to be rapidly depleting the company's remaining cash reserves of approximately $37M.
The lack of meaningful expense discipline in the face of declining revenue suggests that management may be struggling to pivot the business model toward a more sustainable, leaner operating framework. This cost trajectory may force the company to consider dilutive financing options if the current burn rate persists.
Quick answers to the most common questions about buying ONTF stock.
For fiscal year 2025, ON24, Inc. (ONTF) reported total revenue of $139.3M. This represents a 68.6% increase compared to $82.6M in 2018.
ON24, Inc. (ONTF) reported a net loss of $28.9M for the fiscal year ending 2025.
ON24, Inc. (ONTF) reported an operating income of $-35.8M, resulting in an operating profit margin of -25.7%. This margin reflects the operational efficiency of the business before interest and taxes.
ON24, Inc. (ONTF) generated $104.0M in gross profit for the year, representing a gross profit margin of 74.6%. This demonstrates the company's core pricing power and production efficiency.