Databricks Surpasses $4B Revenue Run-Rate, AI Products Hit $1B Milestone
Its net revenue retention remains above 140%, and more than 650 customers now generate over $1 million annually on its platform.
Databricks has crossed a $4 billion revenue run-rate in Q2 2025, marking more than 50% year-over-year growth. The company also revealed its AI products have reached a $1 billion revenue run-rate, underscoring the rapid adoption of its data and AI platform across industries.
The strong financial performance is paired with positive free cash flow over the past 12 months, making Databricks one of the few AI companies operating profitably at scale. Its net revenue retention remains above 140%, and more than 650 customers now generate over $1 million annually on its platform.
Earlier this year, the company also said its data warehousing business will nearly double this year, with Databricks SQL expected to hit a $1 billion revenue run rate by January 2026, up from $600 million in December 2024, driven by its cost
To fuel future growth, Databricks is closing a $1 billion Series K round at a valuation of over $100 billion, co-led by Andreessen Horowitz, Insight Partners, MGX, Thrive Capital, and WCM Investment Management.
“Databricks’ results show enterprises are standardizing on our platform as the foundation for data and AI,” said Ali Ghodsi, Co-Founder and CEO. “With new capital, we’ll accelerate Agent Bricks and Lakebase, helping customers turn data into production-ready AI agents and next-generation applications.”
Last month, the company said it is set to acquire machine learning startup Tecton as part of its ongoing push to enhance its AI agent platform, Agent Bricks. The acquisition will strengthen Databricks’ ability to deliver real-time, low-latency AI applications for enterprise customers, CEO Ali Ghodsi told Reuters.
This follows the $1 billion acquisition of Neon, a leading serverless Postgres startup, earlier in May.
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