Couchbase, Inc. (BASE) saw its stock surge 8.31% in pre-market trading on Wednesday, following the release of its impressive fiscal fourth-quarter 2025 results. The database software company reported record annual recurring revenue (ARR) growth of $237.9 million, up 17% year-over-year, driven by robust renewals, expansions, and continued strong adoption of its Capella cloud database offering.

Couchbase's net new ARR stood at $17.6 million, a 14% increase from the prior year, while revenue grew 10% to $54.9 million. Significantly, the company achieved its first quarter of positive non-GAAP net income and its second quarter of positive free cash flow, highlighting the operational progress and increasing efficiency.

The strong performance was fueled by a combination of factors, including major customer wins and expansions across industries such as financial services, travel, e-commerce, gaming, and media. Notably, Couchbase reported accelerating momentum in migrations to its Capella cloud database, including a 7-figure migration from a customer previously using its Community Edition.

Looking ahead, Couchbase is doubling down on enhancing its AI/ML capabilities, including a partnership with NVIDIA to deploy NVIDIA Inference Microservices in Capella AI Model Services. This collaboration aims to provide enterprises with a powerful solution for privately running generative AI models, combining GPU-accelerated performance and enterprise-grade security.