Recent News
On July 24, 2025 the company and board initiated a search for a successor to founder Thomas Siebel. On September 3, 2025 C3.ai announced Stephen Ehikian as Chief Executive Officer effective September 1; Siebel will continue as Executive Chairman. On September 4, 2025 a securities class action complaint filed alleged investor losses related to the company’s revenue shortfall disclosures.
Technical Analysis
Directional indicators show a strengthening trend: ADX at 28.33 indicates a strong trend in place, while DI+ increasing and DI- decreasing together indicate a shift toward bullish directional momentum, reinforcing the chance that price moves may trend higher from recent levels.
MACD sits at -0.47 but has turned higher and currently trades above its signal line (-0.92), which constitutes a bullish momentum cross despite negative absolute MACD, suggesting short-term momentum has shifted toward buyers.
MRO reads -10.47 with a dip-and-reversal pattern, indicating the market price lies below the model target and therefore carries potential to move upward as that gap narrows.
RSI at 42.59 and rising points to improving momentum without overbought conditions; the series supports a scenario where upside moves retain room to develop before exhaustion.
Price sits above the 12-day EMA (price12dayEMA trend increasing and price20dayAvg $17.04) but remains below the 50-day ($20.10) and 200-day ($25.38) averages; this structure favors short-term mean reversion toward near-term averages while longer-term averages still cap upward ambition. SuperTrend lower support appears near $16.25; the 20-day Bollinger bands place the one‑sigma band roughly between $15.84 and $18.24, framing immediate volatility. Beta shows elevated sensitivity (42‑day beta 3.06, 52‑week beta 1.93), indicating moves can amplify market direction in the near term.
Fundamental Analysis
Revenue totaled $70.3 million for the fiscal first quarter ended July 31, 2025, with subscription revenue of $60.3 million and subscription plus prioritized services at $69.0 million. The company reported a GAAP operating loss of $124.8 million; net loss from continuing operations equaled $116.8 million. Cash, cash equivalents, and marketable securities totaled $711.9 million as of July 31, 2025.
Profitability metrics show severe operating losses: an EBIT/operating margin of -177.65% and net income of $-116.8 million. QoQ and YoY margin metrics indicate improvement versus prior periods (EBIT margin QoQ +117.10% and YoY +113.45%), reflecting margin compression from much deeper losses in the earlier comparison period but not a return to positive operating profitability.
Top-line trends remain weak: reported revenue growth stands at -35.38% (overall) and revenue growth year‑over‑year measures -50.20%, confirming substantial contraction in sales over the past year. Receivables turnover at 0.5595 and asset turnover of 0.07045 sit below the industry peer mean of 0.10402, indicating lower revenue generation per asset. Gross margin at 37.64% underperforms the industry peer mean of 72.53% by a wide margin.
Balance sheet and liquidity metrics provide material support: current ratio 7.65 and cash plus short‑term investments $711.9 million produce a cash ratio of 6.40, while total debt remains minimal at $4.93 million (debt to assets 0.51%). Free cash flow remained negative at $-34.3 million for the period, with free cash flow yield of -1.15%. WMDST values the stock as over‑valued based on the firm’s combination of compressed revenue, persistent operating losses, and market multiples.
Valuation multiples show market expectations detached from current profitability: EVR ~32.48 and price‑to‑sales ~42.54. Price targets among analysts produce a mean near the current close ($18.12) but range widely ($8.84–$35.49), reflecting disagreement about recovery potential.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-07-31 |
| REPORT DATE: | 2025-09-03 |
| NEXT REPORT DATE: | 2025-11-26 |
| CASH FLOW | Begin Period Cash Flow | $ 176.9 M |
| Operating Cash Flow | $ -33.53 M | |
| Capital Expenditures | $ -760.00 K | |
| Change In Working Capital | $ 17.5 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -83.42 M | |
| End Period Cash Flow | $ 93.5 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 70.3 M | |
| Forward Revenue | $ 1.7 M | |
| COSTS | ||
| Cost Of Revenue | $ 43.8 M | |
| Depreciation | $ 3.4 M | |
| Depreciation and Amortization | $ 3.4 M | |
| Research and Development | $ 64.7 M | |
| Total Operating Expenses | $ 195.1 M | |
| PROFITABILITY | ||
| Gross Profit | $ 26.4 M | |
| EBITDA | $ -121.40 M | |
| EBIT | $ -124.82 M | |
| Operating Income | $ -124.82 M | |
| Interest Income | $ 8.2 M | |
| Interest Expense | — | |
| Net Interest Income | $ 8.2 M | |
| Income Before Tax | $ -116.47 M | |
| Tax Provision | $ 300.0 K | |
| Tax Rate | 21.0 % | |
| Net Income | $ -116.77 M | |
| Net Income From Continuing Operations | $ -116.77 M | |
| EARNINGS | ||
| EPS Estimate | $ -0.21 | |
| EPS Actual | $ -0.37 | |
| EPS Difference | $ -0.16 | |
| EPS Surprise | -76.19 % | |
| Forward EPS | $ -0.09 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 968.7 M | |
| Intangible Assets | $ 625.0 K | |
| Net Tangible Assets | $ 798.2 M | |
| Total Current Assets | $ 851.1 M | |
| Cash and Short-Term Investments | $ 711.9 M | |
| Cash | $ 80.9 M | |
| Net Receivables | $ 113.9 M | |
| Inventory | — | |
| Long-Term Investments | $ 40.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 12.1 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 111.3 M | |
| Net Debt | — | |
| Total Debt | $ 4.9 M | |
| Total Liabilities | $ 169.9 M | |
| EQUITY | ||
| Total Equity | $ 798.8 M | |
| Retained Earnings | $ -1.50 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 5.84 | |
| Shares Outstanding | 136.861 M | |
| Revenue Per-Share | $ 0.51 | |
| VALUATION | Market Capitalization | $ 3.0 B |
| Enterprise Value | $ 2.3 B | |
| Enterprise Multiple | -18.797 | |
| Enterprise Multiple QoQ | -32.591 % | |
| Enterprise Multiple YoY | -48.227 % | |
| Enterprise Multiple IPRWA | high: 1389.219 mean: 130.565 median: 119.829 AI: -18.797 low: -981.793 |
|
| EV/R | 32.48 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.213 | |
| Asset To Liability | 5.701 | |
| Debt To Capital | 0.006 | |
| Debt To Assets | 0.005 | |
| Debt To Assets QoQ | 8.994 % | |
| Debt To Assets YoY | 40.997 % | |
| Debt To Assets IPRWA | high: 0.701 mean: 0.333 median: 0.314 AI: 0.005 low: 0.005 |
|
| Debt To Equity | 0.006 | |
| Debt To Equity QoQ | 7.867 % | |
| Debt To Equity YoY | 41.19 % | |
| Debt To Equity IPRWA | high: 2.26 mean: 0.383 median: 0.183 AI: 0.006 low: -0.716 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.742 | |
| Price To Book QoQ | 0.405 % | |
| Price To Book YoY | -0.216 % | |
| Price To Book IPRWA | high: 29.644 median: 26.458 mean: 19.014 AI: 3.742 low: -17.466 |
|
| Price To Earnings (P/E) | -59.027 | |
| Price To Earnings QoQ | -59.873 % | |
| Price To Earnings YoY | -88.647 % | |
| Price To Earnings IPRWA | high: 693.657 mean: 193.481 median: 137.934 AI: -59.027 low: -214.856 |
|
| PE/G Ratio | -0.45 | |
| Price To Sales (P/S) | 42.542 | |
| Price To Sales QoQ | 48.051 % | |
| Price To Sales YoY | 13.086 % | |
| Price To Sales IPRWA | high: 95.267 mean: 45.313 median: 42.816 AI: 42.542 low: 5.82 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | -298.18 | |
| Forward PE/G | -2.272 | |
| Forward P/S | 1708.066 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -1.139 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.07 | |
| Asset Turnover Ratio QoQ | -32.577 % | |
| Asset Turnover Ratio YoY | -15.345 % | |
| Asset Turnover Ratio IPRWA | high: 0.231 median: 0.104 mean: 0.104 AI: 0.07 low: 0.048 |
|
| Receivables Turnover | 0.56 | |
| Receivables Turnover Ratio QoQ | -18.283 % | |
| Receivables Turnover Ratio YoY | -13.348 % | |
| Receivables Turnover Ratio IPRWA | high: 3.437 mean: 1.754 median: 1.716 low: 0.83 AI: 0.56 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 163.089 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 80.217 mean: 47.955 median: 44.35 AI: 0 low: -19.63 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.095 | |
| CapEx To Revenue | -0.011 | |
| CapEx To Depreciation | -0.223 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 798.8 M | |
| Net Invested Capital | $ 798.8 M | |
| Invested Capital | $ 798.8 M | |
| Net Tangible Assets | $ 798.2 M | |
| Net Working Capital | $ 739.8 M | |
| LIQUIDITY | ||
| Cash Ratio | 6.397 | |
| Current Ratio | 7.648 | |
| Current Ratio QoQ | 11.54 % | |
| Current Ratio YoY | -2.65 % | |
| Current Ratio IPRWA | AI: 7.648 high: 4.448 mean: 1.098 median: 0.942 low: 0.477 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -0.041 | |
| Cost Of Debt | 0.17 % | |
| Interest Coverage Ratio | -12481.9 | |
| Interest Coverage Ratio QoQ | 40.301 % | |
| Interest Coverage Ratio YoY | 71.96 % | |
| Interest Coverage Ratio IPRWA | high: 23.754 mean: 5.058 median: 4.713 low: -28.274 AI: -12481.9 |
|
| Operating Cash Flow Ratio | -0.837 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 30.161 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -5.57 % | |
| Revenue Growth | -35.376 % | |
| Revenue Growth QoQ | -451.51 % | |
| Revenue Growth YoY | -5020.167 % | |
| Revenue Growth IPRWA | high: 21.486 % median: 4.141 % mean: 1.583 % low: -6.143 % AI: -35.376 % |
|
| Earnings Growth | 131.25 % | |
| Earnings Growth QoQ | 293.754 % | |
| Earnings Growth YoY | -340.627 % | |
| Earnings Growth IPRWA | AI: 131.25 % high: 45.833 % mean: 2.86 % median: -7.629 % low: -13.529 % |
|
| MARGINS | ||
| Gross Margin | 37.637 % | |
| Gross Margin QoQ | -39.387 % | |
| Gross Margin YoY | -37.077 % | |
| Gross Margin IPRWA | high: 90.981 % median: 73.229 % mean: 72.533 % low: 59.218 % AI: 37.637 % |
|
| EBIT Margin | -177.65 % | |
| EBIT Margin QoQ | 117.104 % | |
| EBIT Margin YoY | 113.45 % | |
| EBIT Margin IPRWA | high: 29.144 % median: 23.337 % mean: 18.944 % low: -41.293 % AI: -177.65 % |
|
| Return On Sales (ROS) | -177.65 % | |
| Return On Sales QoQ | 117.104 % | |
| Return On Sales YoY | 113.45 % | |
| Return On Sales IPRWA | high: 31.435 % median: 22.821 % mean: 18.199 % low: -44.13 % AI: -177.65 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -34.30 M | |
| Free Cash Flow Yield | -1.147 % | |
| Free Cash Flow Yield QoQ | -446.526 % | |
| Free Cash Flow Yield YoY | -628.571 % | |
| Free Cash Flow Yield IPRWA | high: 2.218 % mean: 0.266 % median: 0.246 % AI: -1.147 % low: -1.333 % |
|
| Free Cash Growth | -432.123 % | |
| Free Cash Growth QoQ | 195.701 % | |
| Free Cash Growth YoY | 595.313 % | |
| Free Cash Growth IPRWA | high: 187.726 % mean: -36.996 % median: -87.615 % low: -90.392 % AI: -432.123 % |
|
| Free Cash To Net Income | 0.294 | |
| Cash Flow Margin | -132.547 % | |
| Cash Flow To Earnings | 0.798 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -11.708 % | |
| Return On Assets QoQ | 52.846 % | |
| Return On Assets YoY | 95.296 % | |
| Return On Assets IPRWA | high: 3.261 % median: 1.678 % mean: 1.087 % low: -3.645 % AI: -11.708 % |
|
| Return On Capital Employed (ROCE) | -14.557 % | |
| Return On Equity (ROE) | -0.146 | |
| Return On Equity QoQ | 53.744 % | |
| Return On Equity YoY | 103.565 % | |
| Return On Equity IPRWA | high: 0.121 mean: 0.057 median: 0.032 low: -0.126 AI: -0.146 |
|
| DuPont ROE | -14.265 % | |
| Return On Invested Capital (ROIC) | -12.344 % | |
| Return On Invested Capital QoQ | 47.233 % | |
| Return On Invested Capital YoY | -263.324 % | |
| Return On Invested Capital IPRWA | high: 8.236 % median: 3.218 % mean: 2.238 % low: -6.365 % AI: -12.344 % |
|