Databricks ARR Hits $4B

Databricks, the advanced data and AI analytics company, recently announced that its annual recurring revenue (ARR) has surpassed $4 billion as of Q2 2025, marking an impressive year-over-year increase of over 50%.

This milestone is propelled by surging demand for its AI offerings, which alone contribute $1 billion ARR. The company serves roughly 15,000 clients globally—including heavyweights like Shell and Rivian—and reports over 650 customers spending $1 million or more annually.

Databricks’ platform unifies the capabilities of data engineering, analytics, AI, and generative models under the “lakehouse” architecture. It offers enterprises robust tools for data ingestion, real-time processing, and scalable machine learning deployment.

With its AI-focused products generating significant revenue, Databricks stands out as both a foundational data platform and a trusted AI partner.

Meanwhile, the company also closed a $1 billion Series K funding round, valuing Databricks at over $100 billion. Investors include Andreessen Horowitz, Insight Partners, Thrive Capital, MGX, and WCM Investment Management.

These funds are designated to accelerate AI innovation, expand product lines—including a new operational database category—and support potential acquisitions and research.

Notably, Databricks continues to maintain positive free cash flow and targets over 140% net revenue retention, underlining its strong financial health and scalable growth model.