Couchbase, Inc. (BASE) saw its stock surging over 11% in the pre-market session on Wednesday, following the release of its impressive fiscal fourth-quarter 2025 earnings results. The database software company reported record annual recurring revenue (ARR) growth of $237.9 million, up 17% year-over-year, driven by robust renewals, expansions, and strong adoption of its Capella cloud database offering.

Couchbase's strong performance was fueled by accelerating momentum in migrations to its Capella cloud database, including a significant 7-figure migration from a customer previously using its free Community Edition. The company also highlighted major customer wins and expansions across various industries, such as financial services, travel, e-commerce, gaming, and media.

Notably, Couchbase achieved its first quarter of positive non-GAAP net income and its second quarter of positive free cash flow, highlighting the company's operational progress and increasing efficiency. Looking ahead, Couchbase is focusing on enhancing its AI/ML capabilities, including a partnership with NVIDIA to deploy GPU-accelerated AI models in its Capella cloud platform, catering to the growing demand for AI-powered applications.