Snowflake Inc. Q1 2026 (Ended April 30, 2025) Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended April 30, 2025 (Q1 of Fiscal Year 2026). Snowflake Inc. operates a cloud-based data platform (the "AI Data Cloud") utilizing a consumption-based business model. The company reported revenue of $1.04 billion for the quarter, representing a 26% year-over-year increase. As of the period end, the company had 11,578 total customers, including 754 Forbes Global 2000 companies.
Key Financial Metrics
| Metric | Q1 2026 (Apr 30, 2025) | Q1 2025 (Apr 30, 2024) | Change |
|---|---|---|---|
| Revenue | $1,042.1 million | $828.7 million | +26% |
| Gross Profit | $693.3 million | $556.2 million | +25% |
| Gross Margin | 67% | 67% | 0% |
| Operating Loss | $(447.3) million | $(348.6) million | -28% |
| Net Loss | $(430.1) million | $(317.0) million | -36% |
| Diluted EPS | $(1.29) | $(0.95) | -36% |
| Operating Cash Flow | $228.4 million | $355.5 million | -36% |
| Free Cash Flow (Non-GAAP) | $183.4 million | $331.5 million | -45% |
| Cash & Investments | $4.52 billion | $4.92 billion | -8% |
| Remaining Performance Obligations (RPO) | $6.7 billion | $5.0 billion | +34% |
Material Changes vs. Prior Period
- Revenue Growth: Product revenue increased 26% to $996.8 million, driven by increased consumption from existing customers (Net Revenue Retention Rate of 124%) and new customer acquisition.
- Expense Expansion: Operating expenses rose 26% to $1.14 billion. General and Administrative (G&A) expenses surged 125% year-over-year, primarily due to a $106.5 million non-cash asset impairment charge related to the cessation of the San Mateo office facility.
- Stock-Based Compensation (SBC): Total SBC increased to $379.5 million (36% of revenue), up from $331.9 million in the prior year, reflecting additional equity awards granted to support growth.
- Capital Allocation: The company repurchased 3.2 million shares for approximately $490.6 million during the quarter. As of April 30, 2025, $1.5 billion remained available under the repurchase program.
- Debt Issuance: In September 2024, the company issued $2.3 billion in convertible senior notes (0% interest), with proceeds used for capped call transactions and share repurchases.
Guidance, Outlook, and Risks
- Outlook: Management expects to continue generating positive net cash flows from operating activities for Fiscal 2026. The company anticipates stock-based compensation will decrease as a percentage of revenue over time.
- Strategic Focus: Continued investment in AI Technology (including generative AI) and the expansion of the AI Data Cloud ecosystem (Marketplace, Snowpark). The company is also expanding into public sector and regulated industries.
- Legal Proceedings:
- Securities Class Action: A lawsuit filed in February 2024 alleging securities law violations is ongoing; a second amended complaint was filed in April 2025.
- Cybersecurity Litigation: Multiple class actions filed in the U.S. and Canada regarding data breaches affecting customer accounts (May 2024 incidents). These have been consolidated into multidistrict litigation in Montana. The company is unable to estimate potential losses.
- NLRB Charge: An appeal is pending regarding a former employee's retaliation claim, with a potential loss range estimated between $0 and $25 million.
- Risks: Key risks include the impact of macroeconomic conditions on customer consumption, competition from public cloud providers (AWS, Azure, GCP), cybersecurity threats, and regulatory changes regarding AI and data privacy.
Investor Verification Checklist
- Impairment Impact: Verify the specific details of the $106.5 million G&A impairment charge and confirm it is a one-time non-cash event related to the San Mateo office exit.
- Consumption Trends: Monitor the Net Revenue Retention Rate (124%) and the number of customers with >$1M revenue (606) to assess the sustainability of growth amidst macroeconomic headwinds.
- Legal Exposure: Track the status of the multidistrict cybersecurity litigation and the securities class action, as potential liabilities are currently unquantifiable.
- Debt Structure: Review the terms of the $2.3 billion convertible senior notes issued in late 2024, specifically the conversion triggers and the associated capped call transactions.
- Capital Efficiency: Assess the trajectory of Free Cash Flow, which declined significantly year-over-year, and the impact of continued stock repurchases on liquidity.