Onestream Inc (OS) Stock Forecast & Price Target

OneStream Inc. has demonstrated substantial growth, with Annual Recurring Revenue (ARR) increasing by 23.4% year-over-year, and subscription revenue rising by 35% to $118.6 million. The company’s guidance for fiscal year 2025 suggests continued strong performance, projecting revenue growth of 19%-20%, translating to approximately $583-$587 million. Additionally, a notable increase in customer count, with an addition of 67 new customers, underscores OneStream's expanding market presence and operational success.

OneStream Inc has experienced a decline in key financial metrics, with a non-GAAP gross margin of 69.8% in the fourth quarter, down 200 basis points year-over-year, attributed to the transition of on-prem customers to the cloud and increased storage costs. The company's free cash flow margin dropped to 18.6%, down from a notably high 25.9% a year prior, while the software gross margin also fell by 190 basis points to 76.1% under similar pressures. Additionally, fiscal year 2025 operating margin guidance indicates a break-even point that is $20 million below consensus estimates, largely due to increased operating expenses and declining new annual recurring revenue, which may lead to subscription revenue growth rates stagnating at low levels.