Snowflake Revenue Jumps 29% Amid Widening Nine-Month Loss

TL;DR

**SNOW is growing revenue fast, but still bleeding cash; profitability is a distant dream, so watch those operating expenses closely.**

AI Summary

Snowflake Inc. reported a significant increase in revenue for the three months ended October 31, 2025, reaching $1,212,909 thousand, up from $942,094 thousand in the same period of 2024, representing a 28.7% year-over-year growth. Despite this revenue growth, the company's net loss attributable to Snowflake Inc. widened slightly to $293,957 thousand for the quarter, compared to a net loss of $324,279 thousand in the prior year, indicating improved loss management. For the nine months ended October 31, 2025, revenue surged to $3,399,952 thousand from $2,639,626 thousand in 2024, a 28.8% increase. The nine-month net loss attributable to Snowflake Inc. also increased to $1,022,066 thousand from $958,166 thousand. Operating expenses continued to be substantial, totaling $1,151,509 thousand for the quarter, driven by sales and marketing ($550,364 thousand) and research and development ($494,027 thousand). The company's cash and cash equivalents decreased from $2,628,798 thousand at January 31, 2025, to $1,941,657 thousand at October 31, 2025. A key business change was the elimination of Class B common stock and renaming of Class A common stock to "common stock" on July 3, 2025. Risks highlighted include rapid revenue growth with a limited operating history, a history of operating losses, and intense market competition, particularly in AI Technology investments.

Why It Matters

Snowflake's continued revenue growth, nearing 29% year-over-year, demonstrates strong demand for its data cloud platform, which is crucial for investors looking for market leadership in data analytics. However, the persistent operating losses and increasing nine-month net loss, despite revenue gains, signal that profitability remains a significant challenge, potentially impacting investor confidence and stock valuation. For employees, sustained investment in R&D ($494,027 thousand for the quarter) suggests ongoing innovation and job stability, particularly in AI. Customers benefit from an evolving platform, but the competitive landscape, including new AI entrants, means Snowflake must continuously deliver value to retain its user base and market share.

Risk Assessment

Risk Level: high — Snowflake has a history of operating losses, with a net loss of $293,957 thousand for the quarter and $1,022,066 thousand for the nine months ended October 31, 2025. The company explicitly states, "We have a history of operating losses and may not achieve or sustain profitability in the future." Additionally, cash and cash equivalents decreased by $687,141 thousand from January 31, 2025, to October 31, 2025, indicating significant cash burn.

Analyst Insight

Investors should closely monitor Snowflake's path to profitability and the efficiency of its substantial R&D and sales and marketing investments. While revenue growth is strong, the increasing net loss suggests that current spending levels are unsustainable for long-term value creation. Consider if the company's AI investments will translate into tangible, profitable growth before increasing exposure.

Financial Highlights

revenue

$1,212,909 thousand

total Assets

$8,230,191 thousand

total Debt

$2,277,749 thousand

net Income

-$293,957 thousand

cash Position

$1,941,657 thousand

revenue Growth

+28.7%

Key Numbers

• $1.21B — Quarterly Revenue (Increased 28.7% from $942.1M in Q3 2024 to $1.21B in Q3 2025.)
• $293.96M — Quarterly Net Loss (Improved from a net loss of $324.28M in Q3 2024 to $293.96M in Q3 2025.)
• $1.02B — Nine-Month Net Loss (Widened from $958.17M in 2024 to $1.02B in 2025.)
• $1.94B — Cash and Cash Equivalents (Decreased from $2.63B at January 31, 2025, to $1.94B at October 31, 2025.)
• $550.36M — Sales and Marketing Expense (Significant operating expense for the three months ended October 31, 2025.)
• $494.03M — Research and Development Expense (Significant operating expense for the three months ended October 31, 2025.)
• 342.2M — Shares Outstanding (As of November 21, 2025, indicating dilution potential.)
• 28.7% — Quarterly Revenue Growth (Year-over-year increase in revenue for the three months ended October 31, 2025.)

Key Players & Entities

• Snowflake Inc. (company) — Registrant and subject of the 10-Q filing
• $1,212,909 thousand (dollar_amount) — Revenue for the three months ended October 31, 2025
• $942,094 thousand (dollar_amount) — Revenue for the three months ended October 31, 2024
• $293,957 thousand (dollar_amount) — Net loss attributable to Snowflake Inc. for the three months ended October 31, 2025
• $324,279 thousand (dollar_amount) — Net loss attributable to Snowflake Inc. for the three months ended October 31, 2024
• $1,022,066 thousand (dollar_amount) — Net loss attributable to Snowflake Inc. for the nine months ended October 31, 2025
• $1,941,657 thousand (dollar_amount) — Cash and cash equivalents as of October 31, 2025
• $2,628,798 thousand (dollar_amount) — Cash and cash equivalents as of January 31, 2025
• July 3, 2025 (date) — Date Class B common stock was eliminated and Class A was renamed
• SEC (regulator) — Securities and Exchange Commission

FAQ

Risk Factors

• History of Operating Losses [high — financial]: Snowflake Inc. has a history of operating losses, with an accumulated deficit of $9,034,696 thousand as of October 31, 2025. This trend continued in the nine months ended October 31, 2025, with a net loss of $1,022,066 thousand, indicating ongoing challenges in achieving profitability despite significant revenue growth.
• Intense Competition and AI Investments [high — market]: The company operates in a highly competitive market, with significant investments in AI technology by competitors. This intense competition could impact Snowflake's market share and pricing power, especially as the market for data cloud solutions evolves rapidly.
• Rapid Revenue Growth and Limited Operating History [medium — operational]: Snowflake's rapid revenue growth, while positive, is coupled with a limited operating history. This rapid expansion can strain resources, infrastructure, and management's ability to effectively scale operations and maintain service quality.

Industry Context

Snowflake operates in the rapidly evolving data cloud and AI technology sector. The market is characterized by intense competition from established cloud providers and emerging specialized players. Key trends include increasing demand for scalable data warehousing, data lakes, and AI/ML capabilities, driving significant investment and innovation across the industry.

Regulatory Implications

As a publicly traded technology company, Snowflake is subject to SEC regulations and reporting requirements. Changes in accounting standards or data privacy regulations (e.g., GDPR, CCPA) could impact its operations and financial reporting. The elimination of Class B stock and renaming of Class A stock is a corporate governance change that investors should be aware of.

What Investors Should Do

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Key Dates

• 2025-07-03: Elimination of Class B common stock and renaming of Class A common stock to 'common stock' — This corporate action simplifies the capital structure and may affect future voting rights and share classifications, which investors should monitor.
• 2025-10-31: End of third quarter for fiscal year 2026 — Reporting period for the financial results discussed in the 10-Q, showing revenue growth and a widening net loss for the nine-month period.
• 2025-01-31: End of fiscal year 2025 — Reference point for the beginning cash and cash equivalents balance of $2,628,798 thousand.

Glossary

Accumulated deficit

The total cumulative net losses of a company since its inception, minus any cumulative net income. (Indicates Snowflake's history of operating losses, with a significant deficit of $9,034,696 thousand as of October 31, 2025.)

Deferred revenue, current

Revenue that has been received by a company but not yet earned, representing services or products that will be delivered in the future, due within one year. (A significant component of current liabilities ($2,423,622 thousand as of October 31, 2025), reflecting customer commitments for future services.)

Convertible senior notes, net

Debt securities that can be converted into a predetermined amount of the issuer's equity at certain times. (Represents a substantial portion of Snowflake's long-term debt ($2,277,749 thousand as of October 31, 2025), with potential for future equity dilution.)

Goodwill

An intangible asset that arises when one company acquires another for a price greater than the fair market value of its identifiable net assets. (A significant asset on the balance sheet ($1,174,960 thousand as of October 31, 2025), indicating past acquisitions.)

Year-Over-Year Comparison

Snowflake reported a 28.7% year-over-year revenue increase for the quarter ended October 31, 2025, reaching $1.21B. While this shows strong top-line growth, the net loss attributable to the company widened slightly for the nine-month period to $1.02B, indicating continued investment or cost pressures. Cash and cash equivalents saw a notable decrease of approximately $687M during the nine months, suggesting increased operational spending or investments.

Key Financial Figures

• $0.0001 — ange on which registered Common Stock, $0.0001 par value SNOW The New York Stock Exch

Filing Documents

• snow-20251031.htm (10-Q) — 2560KB
• ex-311snowflakefy2026q3.htm (EX-31.1) — 12KB
• ex-312snowflakefy2026q3.htm (EX-31.2) — 12KB
• ex-321snowflakefy2026q3.htm (EX-32.1) — 6KB
• ex-322snowflakefy2026q3.htm (EX-32.2) — 6KB
• snow-20251031_g1.jpg (GRAPHIC) — 16KB
• 0001640147-25-000211.txt ( ) — 12189KB
• snow-20251031.xsd (EX-101.SCH) — 72KB
• snow-20251031_cal.xml (EX-101.CAL) — 112KB
• snow-20251031_def.xml (EX-101.DEF) — 391KB
• snow-20251031_lab.xml (EX-101.LAB) — 909KB
• snow-20251031_pre.xml (EX-101.PRE) — 662KB
• snow-20251031_htm.xml (XML) — 1974KB

Financial Information

PART I. Financial Information 6

Financial Statements (Unaudited)

ITEM 1. Financial Statements (Unaudited) 6 Condensed Consolidated Balance Sheets 6 Condensed Consolidated Statements of Operations 7 Condensed Consolidated Statements of Comprehensive Loss 8 Condensed Consolidated Statements of Stockholders' Equity 9 Condensed Consolidated Statements of Cash Flows 11 Notes to Condensed Consolidated Financial Statements 13

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 42

Quantitative and Qualitative Disclosures about Market Risk

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk 64

Controls and Procedures

ITEM 4. Controls and Procedures 66

Other Information

PART II. Other Information 67

Legal Proceedings

ITEM 1. Legal Proceedings 67

Risk Factors

ITEM 1A. Risk Factors 68

Unregistered Sales of Equity Securities and Use of Proceeds

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 103

Defaults Upon Senior Securities

ITEM 3. Defaults Upon Senior Securities 103

Mine Safety Disclosures

ITEM 4. Mine Safety Disclosures 103

Other Information

ITEM 5. Other Information 104

Exhibits

ITEM 6. Exhibits 104

Signatures

Signatures 105 2 Table of Contents SPECIAL NOTE ABOUT FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act), about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this report, including statements regarding our future results of operations and financial condition, business strategy, opportunities, priorities, capital requirements, market trends, and plans and objectives of management for future operations, are forward-looking statements. In some cases, forward-looking statements can be identified by words such as "anticipate," "believe," "continue," "can," "could," "design," "estimate," "target," "expect," "intend," "may," "plan," "potentially," "predict," "project," "should," "will," "would," or the negative of these terms or other similar expressions. These forward-looking statements include, but are not limited to, statements concerning the following: our expectations regarding our revenue, expenses, and other operating results, including statements relating to the portion of our remaining performance obligations that we expect to recognize as revenue in future periods; our ability to acquire new customers and successfully retain existing customers; our ability to maintain and increase consumption on our platform; our ability to continue to innovate and make new features generally available to customers, including our development and use of artificial intelligence (AI) and machine learning technology (collectively, AI Technology), and our customers' adoption and use of such features; our ability to achieve or sustain our profitability; future investments in our business, our anticipated capital expenditures, and our estimates regarding our cap

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) SNOWFLAKE INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (unaudited) October 31, 2025 January 31, 2025 Assets Current assets: Cash and cash equivalents $ 1,941,657 $ 2,628,798 Short-term investments 1,411,448 2,008,873 Accounts receivable, net 938,145 922,805 Deferred commissions, current 167,926 97,662 Prepaid expenses and other current assets 164,319 211,234 Total current assets 4,623,495 5,869,372 Long-term investments 1,041,474 656,476 Property and equipment, net 265,844 296,393 Operating lease right-of-use assets 254,641 359,439 Goodwill 1,174,960 1,056,559 Intangible assets, net 256,580 278,028 Deferred commissions, non-current 209,511 183,967 Other assets 403,686 333,704 Total assets $ 8,230,191 $ 9,033,938 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 193,691 $ 169,767 Accrued expenses and other current liabilities 725,793 515,454 Operating lease liabilities, current 40,208 35,923 Deferred revenue, current 2,423,622 2,580,039 Total current liabilities 3,383,314 3,301,183 Convertible senior notes, net 2,277,749 2,271,529 Operating lease liabilities, non-current 367,658 377,818 Deferred revenue, non-current 10,884 15,501 Other liabilities 57,653 61,264 Total liabilities 6,097,258 6,027,295 Commitments and contingencies (Note 11) Stockholders' equity: Preferred stock; $ 0.0001 par value per share; 200,000 shares authorized, zero shares issued and outstanding as of each October 31, 2025 and January 31, 2025 — — Common stock; $ 0.0001 par value per share; 2,500,000 Class A shar es authorized, 342,473 and 334,301 shares issued as of October 31, 2025 and January 31, 2025, respectively; 342,065 and 333,865 shares outstanding as of October 31, 2025 and January 31, 2025, respectiv ely; zero and 185,461 Class B shares authorized as of October 31, 2025 and January 31, 2025, respectively, zero shares issued and outstanding as