Couchbase delivered a solid QQ2 2025 performance with meaningful ARR growth and a strategic pivot toward Capella-driven monetization, underpinned by rapid product innovation aimed at AI-enabled, real-time data applications. Total ARR reached $214 million, up 18% year-over-year and 19% in constant currency, while quarterly revenue rose 20% YoY to $51.6 million. The mix shift toward Capella continued, with Capella ARR at $28.9 million (13.5% of total ARR) and Capella representing 31% of Couchbase’s customer base, up 2 percentage points sequentially. Management highlighted a robust pipeline of strategic opportunities and accelerated Capella migrations, including the largest Capella land in company history and early positive feedback for Capella Columnar, Capella Free Tier, and Capella Columnar integration with vector search. On the flip side, the quarter featured an outsized churn/downsell headwind, with two large accounts driving losses beyond typical quarterly guidance, which tempered ARR growth despite a very strong gross new ARR result. Management reaffirmed full-year ARR guidance and emphasized a back-half concentration of net-new ARR driven by renewals, Capella migrations, and large strategic deals. The company continues to emphasize efficiency, targeting a Rule of 40 trajectory, and remains confident in achieving free cash flow positive status in fiscal 2026. This reflects a well-defined AI-enabled data platform strategy that aims to be the single source of truth for modern applications, with Capella Columnar and vector search extending Couchbase’s appeal to enterprise developers and architects.