Thomas M. Siebel Resumes Role of Chief Executive Officer

C3.ai, Inc. ("C3 AI," "C3," or the "Company") (NYSE:AI), the Enterprise AI application software company, today announced financial results for its fiscal fourth quarter and full fiscal year ended April 30, 2026.

"We have a well-defined strategy, a restructured organization, new executive leadership, and a detailed execution plan now in place with the singular focus of increasing shareholder value through topline revenue growth, cash generation, and non-GAAP profitability. Game on," said Thomas M. Siebel, Chairman and Chief Executive Officer, C3 AI.

Fiscal Fourth Quarter 2026 Financial Highlights:

Total Revenue was $51.6 million.
Subscription Revenue was $48.4 million. Subscription revenue constituted 94% of total revenue.
Subscription and Prioritized Engineering Services Revenue Combined was $50.5 million, constituting 98% of total revenue.
GAAP gross profit was $11.3 million, representing a 22% gross margin. Non-GAAP gross profit was $19.3 million, representing a 37% non-GAAP gross margin.
GAAP net loss per share was $(0.79). Non-GAAP net loss per share was $(0.33).
Cash, cash equivalents, and marketable securities was $575.4 million.

Full Fiscal Year 2026 Financial Highlights:

Total Revenue was $250.3 million.
Subscription Revenue was $227.1 million. Subscription revenue constituted 91% of total revenue.
Subscription and Prioritized Engineering Services Revenue Combined was $245.1 million, constituting 98% of total revenue.
Gross Profit: GAAP gross profit was $77.4 million, representing 31% gross margin. Non-GAAP gross profit was $116.2 million, representing a 46% non-GAAP gross margin.
Net Loss per Share: GAAP net loss per share was $(3.35). Non-GAAP net loss per share was $(1.35).

"The sales performance over recent quarters has been entirely unacceptable, to the point of surreal," Siebel continued. "We are here to fix it."

Cash Balance

The Company also announced that its cash, cash equivalents, and marketable securities balance as of June 3, 2026 was $673 million. This includes the proceeds from Mr. Siebel's purchase of 6.17 million shares of C3 AI stock at a price of $11.16 per share.

Financial Outlook:

The Company's guidance includes GAAP and non-GAAP financial measures.

The following table summarizes C3 AI's guidance for the first quarter of fiscal 2027 and full-year fiscal 2027:

(in millions)	First Quarter Fiscal 2027 Guidance	Full Year Fiscal 2027 Guidance
Total revenue	$50.0 - $54.0	$210.0 - $240.0
Non-GAAP loss from operations	$(40.5) - $(48.5)	$(128.0) - $(160.0)

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation expense-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP results included in this press release. Our fiscal year ends April 30, and numbers are rounded for presentation purposes.

Conference Call Details

What:		C3 AI Fiscal Fourth Quarter and Fiscal Year 2026 Earnings Call
When:		Wednesday, June 3, 2026
Time:		2:00 p.m. PT / 5:00 p.m. ET
Participant Registration:		https://register-conf.media-server.com/register/BI0e0b9c57fb3c40dfadcec96101df5606 (live)
Webcast:		https://edge.media-server.com/mmc/p/5jvywhah/ (live and replay)

Investor Presentation Details

An investor presentation providing additional information and analysis can be found at our investor relations page at ir.c3.ai.

Statement Regarding Use of Non-GAAP Financial Measures

The Company reports the following non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"), in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

Non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations, and non-GAAP net loss per share. Our non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations, and non-GAAP net loss per share exclude the effect of restructuring expenses, stock-based compensation expense-related charges and employer payroll tax expense related to employee stock-based compensation. We believe the presentation of operating results that exclude these non-cash items provides useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across reporting periods.
Free cash flow. We believe free cash flow, a non-GAAP financial measure, is useful in evaluating liquidity and provides information to management and investors about our ability to fund future operating needs and strategic initiatives. We calculate free cash flow as net cash used in operating activities less purchases of property and equipment and capitalized software development costs. This non-GAAP financial measure may be different than similarly titled measures used by other companies. Additionally, the utility of free cash flow is further limited as it does not represent the total increase or decrease in our cash balances for a given period.

We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP financial measures.

Other Information

Professional Services Revenue

Our professional services revenue includes service fees and prioritized engineering services. Service fees include revenue from services such as consulting, training, and paid implementation services.

Prioritized engineering services are undertaken when a customer requests that we accelerate the design, development, and delivery of software features and functions that are planned in our future product roadmap. When we agree to this, we negotiate an agreed upon fee to accelerate the development of the software. When the software feature is delivered, it becomes integrated to our core product offering, is available to all subscribers of the underlying software product, and enhances the operation of that product going forward. Such prioritized engineering services result in production-level computer software – compiled code that enhances the functionality of our production products – which is available for our customers to use over the life of their software licenses. Per Accounting Standards Codification (ASC) 606, Prioritized engineering services revenue is recognized as professional services over the period in which the software development is completed.

Total professional services revenue consists of:

	Three Months Ended April 30,				Fiscal Year Ended April 30,
	2026		2025		2026		2025
	(in thousands)				(in thousands)
Prioritized engineering services	$	2,141	$	17,024	$	18,034	$	43,032
Service fees		1,075		4,366		5,144		18,394
Total professional services revenue	$	3,216	$	21,390	$	23,178	$	61,426

Use of Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "anticipate," "believe," "continue," "estimate," "expect," "intend," "may," "plan," "will" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements in this press release include, but are not limited to, statements regarding our restructuring plan, execution plan, and anticipated cost savings in connection therewith, our financial outlook for the first quarter of fiscal 2027 and full 2027 fiscal year, our ability to accelerate going forward, our ability to increase shareholder value through topline revenue growth, cash generation, and non-GAAP profitability, our sales and customer opportunity pipeline, the impact of our adoption of agentic artificial intelligence tools, the return of Tom Siebel as our Chief Executive Officer, the expected benefits of our offerings, and our business strategies, plans, and objectives for future operations. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, including our history of losses and ability to achieve and maintain profitability in the future, our historic dependence on a limited number of existing customers that account for a substantial portion of our revenue, our ability to attract new customers and retain existing customers, the ability of our restructured global sales and services organization to achieve desired productivity levels in a reasonable period of time, the impact of return of Tom Siebel as our Chief Executive Officer our ability to retain key members of our senior management, market awareness and acceptance of enterprise AI solutions in general and our products in particular, the length and unpredictability of our sales cycles and the time and expense required for our sales efforts. Some of these risks are described in greater detail in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended April 30, 2025, our Quarterly Report on Form 10-Q for the fiscal quarters ended July 31, 2025, October 31, 2025, January 31, 2026, and other filings and reports we make with the Securities and Exchange Commission from time to time, including, when available, our Annual Report on Form 10-K that will be filed for the fiscal year ended April 30, 2026, although new and unanticipated risks may arise. The future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Except to the extent required by law, we do not undertake to update any of these forward-looking statements after the date of this press release to conform these statements to actual results or revised expectations.

About C3.ai, Inc.

C3.ai, Inc. (NYSE:AI) is the Enterprise AI application software company. C3 AI delivers a family of fully integrated products including the C3 Agentic AI Platform, an end-to-end platform for developing, deploying, and operating enterprise AI applications, C3 AI applications, a portfolio of industry-specific SaaS enterprise AI applications that enable the digital transformation of organizations globally, and C3 Generative AI, a suite of domain-specific generative AI offerings for the enterprise.

C3.AI, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)
	Three Months Ended April 30,						Fiscal Year Ended April 30,
		2026			2025			2026			2025
Revenue
Subscription	$	48,384		$	87,333		$	227,090		$	327,630
Professional services		3,216			21,390			23,178			61,426
Total revenue		51,600			108,723			250,268			389,056
Cost of revenue
Subscription		39,162			37,712			166,291			143,841
Professional services		1,115			3,501			6,595			9,352
Total cost of revenue		40,277			41,213			172,886			153,193
Gross profit		11,323			67,510			77,382			235,863
Operating expenses
Sales and marketing		49,342			70,690			237,369			239,659
Research and development		47,261			58,393			229,087			226,391
General and administrative		25,050			27,392			98,596			94,237
Restructuring		10,828			—			10,828			—
Total operating expenses		132,481			156,475			575,880			560,287
Loss from operations		(121,158	)		(88,965	)		(498,498	)		(324,424	)
Interest income		5,989			7,949			28,447			36,189
Other (expense) income, net		(290	)		1,425			504			509
Loss before provision for income taxes		(115,459	)		(79,591	)		(469,547	)		(287,726	)
Provision for income taxes		111			111			822			976
Net loss	$	(115,570	)	$	(79,702	)	$	(470,369	)	$	(288,702	)
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted	$	(0.79	)	$	(0.60	)	$	(3.35	)	$	(2.24	)
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted		146,224			133,233			140,513			129,089

C3.AI, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except for share and per share data) (Unaudited)
	April 30, 2026			April 30, 2025
Assets
Current assets
Cash and cash equivalents	$	66,197		$	164,358
Marketable securities		509,252			578,330
Accounts receivable, net of allowance of $1,065 and $877 as of April 30, 2026 and April 30, 2025, respectively		100,548			137,226
Prepaid expenses and other current assets		31,965			24,338
Total current assets		707,962			904,252
Property and equipment, net		66,904			79,298
Goodwill		625			625
Other assets, non-current		40,782			41,707
Total assets	$	816,273		$	1,025,882
Liabilities and stockholders' equity
Current liabilities
Accounts payable	$	5,509		$	15,160
Accrued compensation and employee benefits		48,560			53,868
Deferred revenue, current		34,861			36,561
Accrued and other current liabilities		17,641			26,295
Total current liabilities		106,571			131,884
Deferred revenue, non-current		1,560			—
Other long-term liabilities		54,391			55,695
Total liabilities		162,522			187,579
Commitments and contingencies
Stockholders' equity
Class A common stock		145			130
Class B common stock		3			3
Additional paid-in capital		2,502,657			2,216,284
Accumulated other comprehensive (loss) income		(50	)		521
Accumulated deficit		(1,849,004	)		(1,378,635	)
Total stockholders' equity		653,751			838,303
Total liabilities and stockholders' equity	$	816,273		$	1,025,882

C3.AI, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
	Fiscal Year Ended April 30,
		2026			2025
Cash flows from operating activities:
Net loss	$	(470,369	)	$	(288,702	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization		13,554			12,607
Non-cash operating lease cost		370			358
Stock-based compensation expense		263,715			230,988
Non-cash restructuring expense		5,636			—
Accretion of discounts on marketable securities		(8,484	)		(13,459	)
Other		520			2,800
Changes in operating assets and liabilities
Accounts receivable		36,490			(9,120	)
Prepaid expenses, other current assets and other assets		(7,799	)		1,909
Accounts payable		(9,443	)		3,635
Accrued compensation and employee benefits		(4,444	)		8,705
Operating lease liabilities		(1,443	)		450
Other liabilities		(8,391	)		10,823
Deferred revenue		(140	)		(2,401	)
Net cash used in operating activities		(190,228	)		(41,407	)
Cash flows from investing activities:
Purchases of property and equipment		(1,908	)		(3,039	)
Purchases of marketable securities		(540,640	)		(647,015	)
Maturities and sales of marketable securities		617,632			666,450
Net cash provided by investing activities		75,084			16,396
Cash flows from financing activities:
Taxes paid related to net share settlement of equity awards		—			(9,079	)
Proceeds from issuance of Class A common stock under employee stock purchase plan		9,290			10,879
Proceeds from exercise of Class A common stock options		7,693			20,423
Net cash provided by financing activities		16,983			22,223
Net decrease in cash, cash equivalents and restricted cash		(98,161	)		(2,788	)
Cash, cash equivalents and restricted cash at beginning of period		176,924			179,712
Cash, cash equivalents and restricted cash at end of period	$	78,763		$	176,924
Cash and cash equivalents	$	66,197		$	164,358
Restricted cash included in other assets, non-current		12,566			12,566
Total cash, cash equivalents and restricted cash	$	78,763		$	176,924
Supplemental disclosure of cash flow information—cash paid for income taxes	$	985		$	920
Supplemental disclosures of non-cash investing and financing activities:
Purchases of property and equipment included in accounts payable and accrued liabilities	$	153		$	311
Right-of-use assets obtained in exchange for lease obligations (including remeasurement of right-of-use assets and lease liabilities due to changes in the timing of receipt of lease incentives)	$	(166	)	$	1,016
Vesting of early exercised stock options	$	6		$	195

C3.AI, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except percentages) (Unaudited)
	Three Months Ended April 30,						Fiscal Year Ended April 30,
		2026			2025			2026			2025
Reconciliation of GAAP gross profit to non-GAAP gross profit:
Gross profit on a GAAP basis	$	11,323		$	67,510		$	77,382		$	235,863
Stock-based compensation expense ⁽¹⁾		7,631			7,437			37,513			33,660
Employer payroll tax expense related to employee stock-based compensation ⁽²⁾		313			228			1,283			1,111
Gross profit on a non-GAAP basis	$	19,267		$	75,175		$	116,178		$	270,634

Gross margin on a GAAP basis		22	%		62	%		31	%		61	%
Gross margin on a non-GAAP basis		37	%		69	%		46	%		70	%

Reconciliation of GAAP loss from operations to non-GAAP loss from operations:
Loss from operations on a GAAP basis	$	(121,158	)	$	(88,965	)	$	(498,498	)	$	(324,424	)
Stock-based compensation expense ⁽¹⁾		54,187			56,615			263,715			230,988
Employer payroll tax expense related to employee stock-based compensation ⁽²⁾		1,785			1,185			6,145			5,336
Restructuring ⁽³⁾		10,828			—			10,828			—
Loss from operations on a non-GAAP basis	$	(54,358	)	$	(31,165	)	$	(217,810	)	$	(88,100	)

Reconciliation of GAAP net loss per share to non-GAAP net loss per share:

Net loss on a GAAP basis	$	(115,570	)	$	(79,702	)	$	(470,369	)	$	(288,702	)
Stock-based compensation expense ⁽¹⁾		54,187			56,615			263,715			230,988
Employer payroll tax expense related to employee stock-based compensation ⁽²⁾		1,785			1,185			6,145			5,336
Restructuring ⁽³⁾		10,828			—			10,828			—
Net loss on a non-GAAP basis	$	(48,770	)	$	(21,902	)	$	(189,681	)	$	(52,378	)

GAAP net loss per share attributable to Class A and Class B common shareholders, basic and diluted	$	(0.79	)	$	(0.60	)	$	(3.35	)	$	(2.24	)
Non-GAAP net loss per share attributable to Class A and Class B common shareholders, basic and diluted	$	(0.33	)	$	(0.16	)	$	(1.35	)	$	(0.41	)
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted		146,224			133,233			140,513			129,089

(1)

Stock-based compensation expense for gross profits and gross margin includes costs of subscription and cost of professional services as follows. Stock-based compensation expense for loss from operations includes total stock-based compensation expense as follows:

	Three Months Ended April 30,				Fiscal Year Ended April 30,
		2026		2025		2026		2025
Cost of subscription	$	7,244	$	6,396	$	35,616	$	30,480
Cost of professional services		387		1,041		1,897		3,180
Sales and marketing		14,953		22,465		95,531		83,960
Research and development		18,266		15,303		79,221		71,629
General and administrative		13,337		11,410		51,450		41,739
Total stock-based compensation expense	$	54,187	$	56,615	$	263,715	$	230,988

(2)

Employer payroll tax expense related to employee stock-based compensation for gross profits and gross margin includes costs of subscription and cost of professional services as follows. Employer payroll tax expense related to employee stock-based compensation for loss from operations includes total employer payroll tax expense related to employee stock-based compensation as follows:

	Three Months Ended April 30,				Fiscal Year Ended April 30,
		2026		2025		2026		2025
Cost of subscription	$	300	$	202	$	1,222	$	1,020
Cost of professional services		13		26		61		91
Sales and marketing		660		410		2,248		1,946
Research and development		530		375		1,841		1,548
General and administrative		282		172		773		731
Total employer payroll tax expense	$	1,785	$	1,185	$	6,145	$	5,336

(3)

Non-GAAP Loss from Operations exclude approximately $10.8 million of pre-tax restructuring expenses related to the restructuring plan announced last quarter. Restructuring expenses primarily include $5.2 million of severance and related employee terminations costs, payments under the Worker Adjustment and Retraining Notification ("WARN") Act, and other benefits for terminated employees, and $4.8 million of stock-based compensation expense.

Reconciliation of free cash flow to the GAAP measure of net cash (used in) provided by operating activities: The following table below provides a reconciliation of free cash flow to the GAAP measure of net cash (used in) provided by operating activities for the periods presented:
	Three Months Ended April 30,						Fiscal Year Ended April 30,
		2026			2025			2026			2025
Net cash (used in) provided by operating activities	$	(54,440	)	$	11,264		$	(190,228	)	$	(41,407	)
Less:
Purchases of property and equipment		(323	)		(938	)		(1,908	)		(3,039	)
Free cash flow	$	(54,763	)	$	10,326		$	(192,136	)	$	(44,446	)
Net cash provided by investing activities	$	23,928		$	22,938		$	75,084		$	16,396
Net cash provided by financing activities	$	7,862		$	5,062		$	16,983		$	22,223

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Investor Contact

ir@c3.ai

C3 AI Public Relations

Axicom

Mindy Nelson

830-214-4823

pr@c3.ai

C3 AI Announces Fiscal Fourth Quarter and Full Fiscal Year 2026 Results