Sep 2, 2026 earnings call — Turnaround progress and Agentic AI product focus
Revenue was $52.4 million and bookings grew 73% this quarter.
Revenue $0.1B (est $0.1B) · EPS $-0.20 (est $-0.26) · Next-quarter revenue outlook $0.1B–$0.1B
Key quotes
"Our restructuring is almost complete, and we have been able to achieve annualized cost savings of approximately $135 million across our business."
"C3 Code is our Agentic AI application builder that turns a natural language prompt into a working enterprise AI application in minutes to hours."
"We closed 22 enterprise agreements in the quarter, including with Heidelberg Materials, Johnson & Johnson, Ford Motor Company, Seaspan, Holcim, the Department of War, the Defense Logistics Agency, and the U.S. Department of Agriculture."
Analyst Q&A 3
Federal government wins
Q (Patrick Walravens · Citizens): The analyst asked what the biggest federal win was, how they won it, and what the pipeline looks like in federal. He also asked about investing in a forward-deployed engineering organization: whether they had such engineers before and what will change for C3.
A: Management said the federal pipeline looks very good because an incumbent with high customer dissatisfaction is creating opportunities and government spending in intelligence and defense is driving traction. They said they've had forward-deployed engineers going back to about 2014 and will increase people investment in the short run to support deployments. They also said C3 Code will reduce the need for forward-deployed engineers in the medium and long run.
"The pipeline in federal looks very good, and I would say there's an incumbent there that has a large market share with very high levels of dissatisfaction, both with their product and their business practices." — Thomas Siebel (CEO·CHAIR)
Displacing incumbents and hitting guide
Q (Radi Sultan · UBS): The analyst asked how much of the federal opportunity is displacing incumbents versus greenfield work and why they can displace incumbents. He also asked what needs to go right for the company to hit the high end of its full-year guide and why they are confident.
A: Management said they have been displacing incumbents for a while and that customer desire to replace the incumbent creates opportunity; there is also lots of greenfield work and federal remains a strong sector. On the guide, management said they care more about building the pipeline and sales organization to show consistent quarter-over-quarter revenue growth from Q3 onward than about just hitting the high end in one year. They added that sustained revenue growth and reaching non-GAAP profitability and free cash flow would materially change investor valuation expectations.
"I'm less interested in hitting the high end of that guide than I am making sure that we built the pipeline and we have the sales organization in place to demonstrate consistent quarter-over-quarter revenue growth from Q3 on into perpetuity." — Thomas Siebel (CEO·CHAIR)
C3 Code stage and customers
Q (Mike Latimore · Northland): The analyst asked whether C3 Code is a meaningful part of the pipeline or still early in marketing, and whether the company is shifting toward a platform strategy. He also asked for customer concentration metrics like any customers over 5% or 10% of revenue or top-10 percentages.
A: Management said C3 Code is in the early stages of marketing, but customers can start small and grow; initial customers like it and one internal use replaced an enterprise application in a day. They agreed the strategy is moving toward a platform approach, breaking applications into atomic elements that can be reassembled on demand. On customer concentration, Hitesh said there was "not a meaningful change from before" and that they will disclose details in the 10-Q that will be released in a few days; management also said they don't think there is any one customer.
"Honestly, Mike, we're in the early stages of marketing that, but hold on to your socks because it doesn't have to be a multimillion-dollar acquisition." — Thomas Siebel (CEO·CHAIR)