Anthropic reported third-quarter revenue of $16.8 billion, representing a 45% increase from the second quarter and more than 3.6 times its total annual revenue for 2025. The company shared its quarterly numbers with potential investors during a private meeting in San Francisco, according to multiple US media reports.
The firm's adjusted operating margin reached 11% for the year through Q3, excluding major costs like stock-based compensation. This marks the second consecutive quarter of adjusted profitability for the AI lab, with the company also reporting it is cash-flow positive.
Anthropic generated $1.70 in revenue for every dollar spent on compute during the third quarter, a positive sign for the AI industry as it shows trained models can turn a profit despite ongoing price wars. However, challenges remain, including high training and staff costs and the risk of open-weight alternatives replacing proprietary models like Claude.
"Blocking model theft will hurt Anthropic's short-term revenue," the company told investors. Distillation revenue, which accounts for 5 to 7% of its total, is expected to drop now and weigh on the current quarter's numbers. Over the long run, blocking distillation should make it harder for rivals to match Claude's quality.
Investor skepticism could lead to a lower IPO valuation, with some bankers suggesting a valuation under $1.5 trillion. The planned November IPO, before Thanksgiving, faces challenges including high inflation, rising borrowing costs, and public sentiment toward AI that remains more negative than positive.
Anthropic did not provide details on its September annualized revenue rate or full-year outlook, raising questions about the company's financial trajectory. The IPO, which will be the biggest test of investor appetite for the AI boom, faces a difficult market environment with ongoing price wars and open models closing the performance gap.
Source: thedecoder
