Executive Summary
Veeva Systems delivered a solid QQ3 2025 performance with revenue of $699.2 million, up 13.4% year over year and 3.4% quarter over quarter. The quarter posted a gross margin of 75.06% and an operating margin of 25.94%, driving net income of $185.8 million and earnings per share (EPS) of $1.15 (GAAP) and $1.13 (diluted). Free cash flow totaled $159.8 million, supporting a robust balance sheet characterized by a net cash position and ample liquidity. The cash and short-term investments balance stood at approximately $5.06 billion, with cash and cash equivalents of about $1.04 billion. Net debt remained negative at approximately $(0.97) billion, underscoring substantial financial flexibility.
The results reinforce Veeva’s position as a high-quality, asset-light software provider for the life sciences industry, underpinned by a scalable SaaS model, strong customer retention, and a large, recurring revenue base via deferred revenue of $739.7 million in current liabilities. The quarterly metrics point to operating leverage: a healthy EBITDA margin of ~25.9% and continued profitability alongside meaningful cash generation. Management commentary (where available) typically emphasizes demand durability for Veeva’s Commercial Cloud, Vault, and data analytics offerings and ongoing investments in data-driven solutions and product expansion. Given the strong cash position and operating cash flow generation, the company remains well-positioned to fund product development, expand go-to-market initiatives, and potentially return capital over time.
Overall, the QQ3 2025 results support a constructive investment view, with discipline around execution, product expansion, and cross-selling as key catalysts for sustained growth and margin resilience.
Key Performance Indicators
Key Insights
Revenue: $699.21 million, up 13.41% YoY and 3.41% QoQ. Gross profit: $524.82 million, gross margin 75.06%. Operating income: $181.35 million, operating margin 25.94%. Net income: $185.81 million, net margin 26.57%. EPS: $1.15 (GAAP), $1.13 (diluted). Cash flow: Operating cash flow $164.12 million; free cash flow $159.85 million. Cash and cash equivalents: $1.045 billion; total cash, cash equivalents and short-term investments: $5.063 billion. Net debt: $(0.973) billion (net cash). Deferred reven...
Financial Highlights
Revenue: $699.21 million, up 13.41% YoY and 3.41% QoQ. Gross profit: $524.82 million, gross margin 75.06%. Operating income: $181.35 million, operating margin 25.94%. Net income: $185.81 million, net margin 26.57%. EPS: $1.15 (GAAP), $1.13 (diluted). Cash flow: Operating cash flow $164.12 million; free cash flow $159.85 million. Cash and cash equivalents: $1.045 billion; total cash, cash equivalents and short-term investments: $5.063 billion. Net debt: $(0.973) billion (net cash). Deferred revenue (current): $739.66 million. Capex: $4.27 million (capital expenditure). Four-quarters revenue history shows continued growth trajectory across Q1–Q3 2024 and Q3 2025 data.
Valuation and efficiency metrics (selected): Price-to-book ~6.14x; price-to-sales ~48.33x; P/E ~45.46x; enterprise value multiple ~130.11x. Operating cash flow to sales ~23.5%; free cash flow to operating cash flow ~97.4%; ROE ~3.38%; ROA ~2.88%; cash conversion cycle approximately 22.35 days (indicative of strong working capital efficiency).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
699.21M |
13.41% |
3.41% |
| Gross Profit |
524.82M |
16.93% |
3.76% |
| Operating Income |
181.35M |
41.14% |
8.93% |
| Net Income |
185.81M |
37.47% |
8.63% |
| EPS |
1.15 |
36.90% |
8.49% |
Key Financial Ratios
operatingProfitMargin
25.9%
operatingCashFlowPerShare
$1.01
freeCashFlowPerShare
$0.99
Management Commentary
No earnings call transcript was provided in the supplied data. Consequently, this section could not include management quotes or theme-based highlights directly from the QQ3 2025 call. Once transcripts are available, we can extract quotes on strategic priorities (product roadmap, cross-sell opportunities, geographic expansion), operating efficiency, and any guidance assumptions.
Transcript data not provided in the input.
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Transcript data not provided in the input.
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Forward Guidance
No formal forward guidance was included in the provided data set for QQ3 2025. Based on the existing financials, the implied trajectory suggests continued revenue growth with healthy margins and cash generation. In a typical Veeva context, investors should monitor: (1) ARR growth and cross-sell uptake across Commercial Cloud, Vault, and Data Cloud; (2) expansion into international markets (EMEA, APAC) and the pace of customer acquisition in those regions; (3) product development cadence for AI-enabled analytics and automated content management; (4) capital allocation signals (share repurchases vs. acquisitions vs. dividends) and any changes to debt levels; (5) the sustainability of gross and operating margins amid product mix shifts and potential FX effects. Given the balance sheet strength, the company appears well-positioned to fund product investments while delivering continued FCF growth. Investors should monitor macro IT budgets in life sciences, regulatory changes affecting cloud adoption, and potential competitive pressure from data analytics platforms and niche vendors.