Data streaming platform leader Confluent, Inc. (CFLT.US) released its fiscal year 2025 fourth quarter and full-year financial results on February 11, after the U.S. market closed. This report marks the company's final annual performance as an independent public entity before its complete privatization by technology giant IBM (IBM.US). The results significantly surpassed market expectations, particularly in core cloud business performance and profitability improvements.

For the fourth fiscal quarter ended December 31, 2025, the company's total revenue increased to $314.8 million, representing a 21% year-over-year growth. The flagship product, Confluent Cloud, demonstrated particular strength, contributing $169 million in revenue for the quarter, a 23% increase compared to the same period last year.

Regarding profitability metrics, Confluent achieved a substantial leap in margins. Fourth-quarter Non-GAAP earnings per share reached $0.12, notably higher than the analyst consensus estimate of $0.10.

For the full 2025 fiscal year, the company's total revenue reached $1.167 billion, with subscription revenue amounting to $1.12 billion, reflecting a 21% annual increase. Particularly noteworthy was the fundamental improvement in the company's cash flow position. Full-year adjusted free cash flow surged dramatically to $76 million, up from $9.5 million in 2024.

The release of these financial results comes at a critical juncture in IBM's $11 billion acquisition process. In December 2025, IBM announced its intention to acquire Confluent in an all-cash transaction valued at $31 per share, aiming to strengthen its data foundation capabilities for generative AI and Agentic AI applications. As the merger transaction is underway, Confluent broke from its usual practice by not holding an earnings call and refrained from issuing future financial guidance.

Chief Executive Officer Jay Kreps emphasized in a statement that the company is currently focused on building a comprehensive real-time data streaming platform to support customers' mission-critical AI application scenarios. The transaction has already received approval from the boards of both companies and has made progress through key regulatory stages, with an expected completion date around mid-2026.

Market analysis suggests that the robust growth and strong customer loyalty demonstrated by Confluent in its 'final performance' further validate the strategic value of IBM's multi-billion dollar acquisition. By the end of 2025, the number of large customers with Annual Recurring Revenue (ARR) exceeding $100,000 had reached 1,521, a 10% year-over-year increase. As data streaming technology transitions from an 'optional' component to an 'essential' infrastructure in the AI era, the industry's next focal point is how Confluent will deeply integrate with platforms like watsonx following its incorporation into the IBM portfolio.