The equity of digital engagement platform provider ON24 is presenting investors with a complex and contradictory narrative. While the company’s latest quarterly performance exceeded expectations, forward-looking guidance continues to signal revenue contraction. Market participants are weighing the firm’s strategic pivot and its exploration of potential acquisition offers against a backdrop of persistent challenges.
Strategic Review and AI Initiatives Amidst Uncertainty
A significant development adding a layer of speculation is the board’s active review of concrete takeover interest, for which it has engaged Goldman Sachs as an advisor. This process introduces both uncertainty and potential upside for shareholders.
Concurrently, ON24 is advancing its artificial intelligence roadmap. The company reports that one in five of its customers is already utilizing its AI offerings. New strategic partnerships, including one with LinkedIn, and planned AI tool releases are central to its strategy for reigniting growth.
Profitability Gains Contrast with Booking Weakness
For the third quarter of 2025, ON24 posted revenue of $34.6 million, surpassing its own forecast. Adjusted net income reached $1.2 million, or $0.03 per share, a result that was markedly better than anticipated. Key profitability metrics showed improvement, with the adjusted operating loss narrowing to just $0.4 million.
Should investors sell immediately? Or is it worth buying ON24?
However, these stronger results are shadowed by a concerning trend in business intake. Quarterly bookings came in at $30.21 million, representing another year-over-year decline. This drop points to ongoing difficulties in customer acquisition, particularly within the critical life sciences segment. The company’s annual recurring revenue (ARR) stood at $124.5 million at the quarter’s close.
Cautious Outlook Weighs on Sentiment
The forward perspective for ON24 suggests continued headwinds. Analysts project an approximate 3.5% revenue decline for the coming year. Management’s own guidance for the fourth quarter anticipates revenue between $33.9 million and $34.5 million, with an adjusted operating loss of up to $0.8 million.
For the full 2025 fiscal year, revenue is forecast to be in the range of $138.6 million to $139.2 million. This cautious outlook underscores the persistent market challenges facing SaaS providers in the B2B marketing space.
Analyst Ratings Reflect a Wait-and-See Stance
The consensus view among market experts remains guarded. An aggregate rating from six analysts currently sits at “Reduce” or “Hold.” The average price target is $6.00, implying only minimal upside from a recent price near $5.94. In contrast, Zacks Investment Research recently issued a “Buy” rating, citing positive earnings estimate revisions for the current quarter and the full year. From a performance perspective, ON24 shares have trailed the S&P 500 since mid-June 2025.
Ad
ON24 Stock: Buy or Sell?! New ON24 Analysis from December 8 delivers the answer:
The latest ON24 figures speak for themselves: Urgent action needed for ON24 investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 8.
ON24: Buy or sell? Read more here...
