AGP Picks
View all

Applied Technology News
Provided by AGP

Nutanix Reports Third Quarter Fiscal 2026 Financial Results

Reports 15% YoY ARR Growth and Solid Free Cash Flow Performance

Delivers Outperformance Across All Guided Metrics

SAN JOSE, Calif., May 27, 2026 (GLOBE NEWSWIRE) -- Nutanix, Inc. (NASDAQ: NTNX), a leader in hybrid multicloud computing, today announced financial results for its third quarter ended April 30, 2026.

“We saw solid demand in the third quarter, including strong bookings, healthy new logo additions, and good free cash flow performance,” said Rajiv Ramaswami, CEO of Nutanix. “We also announced significant new innovations and partnerships in the areas of AI, modern applications and support for external storage, which will help us pursue the substantial market opportunity in front of us.”

“Our business performed well in our third quarter, as reflected in results that exceeded the high end of the range for all of our guided metrics,” said Rukmini Sivaraman, CFO of Nutanix. “We are pleased to raise our full year guidance and remain focused on driving sustainable growth and improving profitability.”

Third Quarter Fiscal 2026 Financial Summary

  Q3 FY’26 Q3 FY’25 Y/Y Change
Annual Recurring Revenue (ARR)1 $2.43 billion $2.12 billion 15%
Average Contract Duration2 3.4 years 3.1 years 0.3 years
Revenue $703.1 million $639.0 million 10%
GAAP Gross Margin 86.9% 87.0% (10) bps
Non-GAAP Gross Margin 87.8% 88.2% (40) bps
GAAP Operating Expenses $540.3 million $507.3 million 6.5%
Non-GAAP Operating Expenses $460.5 million $426.5 million 8.0%
GAAP Operating Income $70.5 million $48.6 million $21.9 million
Non-GAAP Operating Income $156.5 million $137.1 million $19.4 million
GAAP Operating Margin 10.0% 7.6% 240 bps
Non-GAAP Operating Margin 22.3% 21.5% 80 bps
Net Cash Provided by Operating Activities $207.5 million $218.5 million ($11.0) million
Free Cash Flow $197.2 million $203.4 million ($6.2) million


Reconciliations between GAAP and non-GAAP financial measures and key performance measures, to the extent available, are provided in the tables of this press release.

Recent Company Highlights

Fourth Quarter Fiscal 2026 Outlook

   
Revenue $725 - $745 million
Non-GAAP Operating Margin 21% to 23%
Weighted Average Shares Outstanding (Diluted)3 Approximately 292 million


Fiscal 2026 Outlook

   
Revenue $2.82 - $2.84 billion
Non-GAAP Operating Margin Approximately 22.5%
Free Cash Flow $760 - $780 million


Supplementary materials to this press release, including our third quarter fiscal 2026 earnings presentation, can be found at https://ir.nutanix.com/financial/quarterly-results.

Webcast and Conference Call Information

Nutanix executives will discuss the Company’s third quarter fiscal 2026 financial results on a conference call today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. Interested parties may access the conference call by registering at this link to receive dial in details and a unique PIN number. The conference call will also be webcast live on the Nutanix Investor Relations website at ir.nutanix.com. An archived replay of the webcast will be available on the Nutanix Investor Relations website at ir.nutanix.com shortly after the call.

Footnotes

1Annual Recurring Revenue, or ARR, is defined as the sum of ACV for all subscription contracts from all customers in effect as of the end of a specific period, assuming any subscription contract that expires is renewed on its existing terms. ARR excludes the value of professional services, non-portable software and support contracts and hardware sales. For the purposes of this calculation, we generally assume that the contract term begins on the date when the software is made available to the customer. ACV is defined as the total annualized value of a contract. The total annualized value for a contract is calculated by dividing the total value of the contract by the number of years in the term of such contract. Beginning with the first quarter of fiscal 2026, our methodology for calculating ARR was updated to align more closely with the timing of when licenses are made available to customers. For comparability purposes, ARR for all prior periods have been adjusted to conform to the updated methodology.

2Average Contract Duration represents the dollar-weighted term, calculated on a billings basis, across all subscription contracts, as well as our limited number of life-of-device contracts, using an assumed term of five years for life-of-device licenses, executed in the period.

3Weighted average share count used in computing diluted non-GAAP net income per share.

Non-GAAP Financial Measures and Other Key Performance Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, this press release includes the following non-GAAP financial and other key performance measures: non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, free cash flow, Annual Recurring Revenue (or ARR), and Average Contract Duration. In computing non-GAAP financial measures, we exclude certain items such as stock-based compensation, costs associated with our acquisitions (such as amortization of acquired intangible assets and other acquisition-related costs), litigation settlement accruals and legal fees related to certain litigation matters, the amortization of the debt discount and issuance costs related to debt, interest expense related to debt, inducement expense related to the repurchase of convertible senior notes, and other non-recurring transactions and the related tax impact. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, and non-GAAP operating margin are financial measures which we believe provide useful information to investors because they provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures such as stock-based compensation expense that may not be indicative of our ongoing core business operating results. Free cash flow is a performance measure that we believe provides useful information to our management and investors about the amount of cash generated by the business after capital expenditures, and we define free cash flow as net cash provided by operating activities less purchases of property and equipment. ARR is a performance measure that we believe provides useful information to our management and investors as it allows us to better track the top-line growth of our subscription business (including our ability to acquire subscriptions with new customers and to retain and expand with existing customers), while normalizing for differences in contract durations. Our calculation of ARR is not adjusted for the impact of any known or projected future events (such as customer cancellations, expansion or contraction of existing customers relationships or price increases or decreases) that may cause any subscription contract not to be renewed on its existing terms. ARR is a performance measure that should be viewed independently of revenue and does not represent our revenue under GAAP on an annualized basis or a forecast of GAAP revenue. Investors should not place undue reliance on ARR as an indicator of our future or expected results. ARR does not have any standardized meaning and is therefore unlikely to be comparable to similarly titled performance measures presented by other companies. We use these non-GAAP financial and key performance measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. However, these non-GAAP financial and key performance measures have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, and free cash flow are not substitutes for gross margin, operating expenses, operating income, operating margin, and net cash provided by operating activities, respectively. There is no GAAP measure that is comparable to ARR or Average Contract Duration, so we have not reconciled the ARR or Average Contract Duration data included in this press release to any GAAP measure. In addition, other companies, including companies in our industry, may calculate non-GAAP financial measures and key performance measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures and key performance measures as tools for comparison. We urge you to review the reconciliation of our non-GAAP financial measures and key performance measures to the most directly comparable GAAP financial measures included below in the tables captioned “Reconciliation of GAAP to Non-GAAP Profit Measures” and “Reconciliation of GAAP Net Cash Provided By Operating Activities to Non-GAAP Free Cash Flow,” and not to rely on any single financial measure to evaluate our business. This press release also includes the following forward-looking non-GAAP financial measures as part of our fourth quarter fiscal 2026 outlook and/or our fiscal 2026 outlook: non-GAAP operating margin and free cash flow. We are unable to reconcile these forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures without unreasonable efforts, as we are currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact the GAAP financial measures for these periods but would not impact the non-GAAP financial measures.

Forward-Looking Statements

This press release contains express and implied forward-looking statements, including, but not limited to, statements regarding: our business trends, momentum and prospects; our expectations regarding demand for our solutions; our ability to pursue the substantial market opportunity ahead, including through our innovations and partnerships in AI, modern applications and external storage; our focus on driving sustainable growth and improving profitability; our fourth quarter fiscal 2026 outlook; and our fiscal 2026 outlook.

These forward-looking statements are not historical facts and instead are based on our current expectations, estimates, opinions, and beliefs. Consequently, you should not rely on these forward-looking statements. The accuracy of these forward-looking statements depends upon future events and involves risks, uncertainties, and other factors, including factors that may be beyond our control, that may cause these statements to be inaccurate and cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by such statements, including, among others: the inherent uncertainty or assumptions and estimates underlying our projections and guidance, which are necessarily speculative in nature; supply chain constraints, component availability and related impacts on the timing of orders, shipments and customer deployments; any failure to successfully implement or realize the full benefits of, or unexpected difficulties or delays in successfully implementing or realizing the full benefits of, our business plans, strategies, initiatives, vision, objectives, momentum, prospects and outlook; our ability to achieve, sustain and/or manage future growth effectively; the rapid evolution of the markets in which we compete, including the introduction, or acceleration of adoption of, competing solutions, including public cloud infrastructure; failure to timely and successfully meet our customer needs; delays in or lack of customer or market acceptance of our new solutions, products, services, product features or technology; macroeconomic or geopolitical uncertainty; our ability to attract, recruit, train, retain, and, where applicable, ramp to full productivity, qualified employees and key personnel; factors that could result in the significant fluctuation of our future quarterly operating results (including anticipated changes to our revenue and product mix, the timing and magnitude of orders, shipments and acceptance of our solutions in any given quarter, our ability to attract new and retain existing end-customers, changes in the pricing and availability of certain components of our solutions, and fluctuations in demand and competitive pricing pressures for our solutions); our ability to form new or maintain and strengthen existing strategic alliances and partnerships, as well as our ability to manage any changes thereto; our ability to make share repurchases; and other risks detailed in our Annual Report on Form 10-K for the fiscal year ended July 31, 2025 filed with the U.S. Securities and Exchange Commission, or the SEC, on September 24, 2025 and subsequent quarterly reports. Additional information will be set forth in our Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2026, which should be read in conjunction with this press release and the financial results included herein. Our SEC filings are available on the Investor Relations section of our website at ir.nutanix.com and on the SEC's website at www.sec.gov. These forward-looking statements speak only as of the date of this press release and, except as required by law, we assume no obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any of these forward-looking statements to reflect actual results or subsequent events or circumstances.

About Nutanix

Nutanix is a hybrid multicloud computing leader, offering organizations a unified software platform for running applications and AI and managing data anywhere. With Nutanix, organizations can simplify operations for traditional and modern applications, freeing them to focus on business goals. Trusted by more than 30,000 customers worldwide, Nutanix helps empower organizations to transform digitally and power hybrid multicloud environments consistently, simply, and cost-effectively. Learn more at www.nutanix.com or follow us on social media.

© 2026 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo, and all Nutanix product and service names mentioned herein are registered trademarks or unregistered trademarks of Nutanix, Inc. (“Nutanix”) in the United States and other countries. Other brand names or marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). This press release is for informational purposes only and nothing herein constitutes a warranty or other binding commitment by Nutanix.

Investor Contact:
Richard Valera
ir@nutanix.com

Media Contact:
Jennifer Massaro
pr@nutanix.com

   
NUTANIX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
  
       
    As of  
    July 31,
2025 		    April 30,
2026 		 
    (in thousands)  
Assets            
Current assets:            
Cash and cash equivalents   $ 769,502     $ 718,812  
Short-term investments     1,223,234       1,299,091  
Accounts receivable, net     337,967       251,588  
Deferred commissions—current     153,072       146,360  
Prepaid expenses and other current assets     105,391       195,669  
Total current assets     2,589,166       2,611,520  
Property and equipment, net     142,814       127,316  
Operating lease right-of-use assets     134,526       175,261  
Deferred commissions—non-current     189,221       191,062  
Intangible assets, net     2,615       2,033  
Goodwill     185,235       185,235  
Other assets—non-current     39,617       126,201  
Total assets   $ 3,283,194     $ 3,418,628  
Liabilities and Stockholders’ Deficit            
Current liabilities:            
Accounts payable   $ 81,599     $ 84,382  
Accrued compensation and benefits     230,498       165,336  
Accrued expenses and other current liabilities     24,187       28,199  
Deferred revenue—current     1,054,023       1,154,755  
Operating lease liabilities—current     23,234       37,346  
Total current liabilities     1,413,541       1,470,018  
Deferred revenue—non-current     1,058,731       1,152,223  
Operating lease liabilities—non-current     115,754       144,063  
Convertible senior notes, net     1,343,818       1,347,484  
Other liabilities—non-current     45,870       30,453  
Total liabilities     3,977,714       4,144,241  
Stockholders’ deficit:            
Common stock     7       7  
Additional paid-in capital     4,200,466       4,219,337  
Accumulated other comprehensive income (loss)     700       (307 )
Accumulated deficit     (4,895,693 )     (4,944,650 )
Total stockholders’ deficit     (694,520 )     (725,613 )
Total liabilities and stockholders’ deficit   $ 3,283,194     $ 3,418,628  


   
NUTANIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
  
             
    Three Months Ended
April 30, 		    Nine Months Ended
April 30, 		 
    2025     2026     2025     2026  
    (in thousands, except per share data)  
Revenue:                        
Product   $ 345,479     $ 364,938     $ 1,001,585     $ 1,101,305  
Support, maintenance and other services     293,504       338,128       883,075       995,162  
Total revenue     638,983       703,066       1,884,660       2,096,467  
Cost of revenue:                        
Product (1)(2)     6,776       5,816       23,969       15,782  
Support, maintenance and other services (1)     76,215       86,463       226,980       255,240  
Total cost of revenue     82,991       92,279       250,949       271,022  
Gross profit     555,992       610,787       1,633,711       1,825,445  
Operating expenses:                        
Sales and marketing (1)(2)     260,402       283,605       775,185       846,381  
Research and development (1)     186,413       196,098       543,157       585,839  
General and administrative (1)     60,532       60,575       174,036       189,244  
Total operating expenses     507,347       540,278       1,492,378       1,621,464  
Income from operations     48,645       70,509       141,333       203,981  
Other income, net     15,954       10,805       25,172       40,412  
Income before provision for income taxes     64,599       81,314       166,505       244,393  
Provision for income taxes     1,236       9,227       16,789       7,188  
Net income   $ 63,363     $ 72,087     $ 149,716     $ 237,205  
Net income per share attributable to Class
A common stockholders, basic		   $ 0.24     $ 0.27     $ 0.56     $ 0.88  
Net income per share attributable to Class
A common stockholders, diluted		   $ 0.22     $ 0.25     $ 0.52     $ 0.82  
Weighted average shares used in computing net
income per share attributable to Class A
common stockholders, basic		     267,566       265,950       267,081       268,058  
Weighted average shares used in computing net
income per share attributable to Class A
common stockholders, diluted		     296,804       287,481       292,942       291,992  

__________________________
(1)   Includes the following stock-based compensation expense:

    Three Months Ended
April 30, 		    Nine Months Ended
April 30, 		 
    2025     2026     2025     2026  
    (in thousands)  
Product cost of revenue   $ 401     $ 364     $ 2,425     $ 1,150  
Support, maintenance and other services cost of revenue     6,623       5,710       20,768       20,132  
Sales and marketing     19,513       19,556       61,558       60,070  
Research and development     42,162       44,757       132,489       135,363  
General and administrative     15,543       12,431       49,179       46,427  
Total stock-based compensation expense   $ 84,242     $ 82,818     $ 266,419     $ 263,142  


(2)   Includes the following amortization of intangible assets:

    Three Months Ended
April 30, 		    Nine Months Ended
April 30, 		 
    2025     2026     2025     2026  
    (in thousands)  
Product cost of revenue   $ 546     $ 106     $ 2,080     $ 318  
Sales and marketing     89       88       265       264  
Total amortization of intangible assets   $ 635     $ 194     $ 2,345     $ 582  


   
NUTANIX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
  
       
    Nine Months Ended
April 30, 		 
    2025     2026  
    (in thousands)  
Cash flows from operating activities:            
Net income   $ 149,716     $ 237,205  
Adjustments to reconcile net income to net cash provided by operating activities:            
Depreciation and amortization     54,451       53,581  
Stock-based compensation     266,419       263,142  
Amortization of debt discount and issuance costs     2,519       4,085  
Inducement expense from partial repurchase of the 2027 Notes     11,347       —  
Operating lease cost, net of accretion     21,355       25,497  
Other     (4,690 )     (7,935 )
Changes in operating assets and liabilities:            
Accounts receivable, net     (14,084 )     (1,506 )
Deferred commissions     31,339       4,870  
Prepaid expenses and other assets     (10,589 )     (92,429 )
Accounts payable     3,774       3,128  
Accrued compensation and benefits     (10,528 )     (53,410 )
Accrued expenses and other liabilities     (5,601 )     (9,324 )
Operating leases, net     (23,640 )     (23,812 )
Deferred revenue     130,139       198,583  
Net cash provided by operating activities     601,927       601,675  
Cash flows from investing activities:            
Maturities of investments     272,846       607,475  
Purchases of investments     (941,406 )     (679,600 )
Sales of investments     2,011       2,750  
Purchases of property and equipment     (59,533 )     (38,570 )
Net cash used in investing activities     (726,082 )     (107,945 )
Cash flows from financing activities:            
Proceeds from sales of shares through employee equity incentive plans     68,525       61,447  
Taxes paid related to net share settlement of equity awards     (212,919 )     (169,402 )
Proceeds from the issuance of convertible notes, net of issuance costs     848,010       —  
Payment of third-party debt issuance costs     (3,448 )     —  
Partial repurchase of the 2027 Notes     (95,453 )     —  
Payment of revolver issuance costs     (2,794 )     —  
Repurchases of common stock     (257,859 )     (433,240 )
Other financing activities, net     (2,943 )     (2,637 )
Net cash provided by (used in) financing activities     341,119       (543,832 )
Net increase (decrease) in cash, cash equivalents and restricted cash   $ 216,964     $ (50,102 )
Cash, cash equivalents and restricted cash—beginning of period     655,662       769,517  
Cash, cash equivalents and restricted cash—end of period   $ 872,626     $ 719,415  
Restricted cash (1)     27       603  
Cash and cash equivalents—end of period   $ 872,599     $ 718,812  
Supplemental disclosures of cash flow information:            
Cash paid for income taxes   $ 25,550     $ 25,972  
Supplemental disclosures of non-cash investing and
financing information: 		           
Purchases of property and equipment included in accounts payable and
accrued and other liabilities		   $ 1,186     $ 6,601  
Unpaid taxes related to net share settlement of equity awards included
in accrued expenses and other liabilities		   $ 2,554     $ 1,672  

_________________________
(1)   Included within prepaid expenses and other current assets and other assets—non-current in the condensed consolidated balance sheets.

Disaggregation of Revenue
(Unaudited)
  
             
    Three Months Ended
April 30, 		    Nine Months Ended
April 30, 		 
    2025     2026     2025     2026  
    (in thousands)  
Disaggregation of revenue:                        
Subscription revenue   $ 609,663     $ 664,792     $ 1,794,777     $ 1,993,163  
Professional services and other revenue (1)     29,320       38,274       89,883       103,304  
Total revenue   $ 638,983     $ 703,066     $ 1,884,660     $ 2,096,467  

_________________________
(1)   Prior to fiscal 2026, these amounts were presented as separate line items, Professional services and Other non-subscription product. Prior period amounts have been updated to conform to the current period presentation.

Annual Recurring Revenue
(Unaudited)
  
       
    As of April 30,  
    2025     2026  
    (in thousands)  
Annual Recurring Revenue (ARR) (1)   $ 2,119,028     $ 2,434,939  

______________________
(1)   Beginning with the first quarter of fiscal 2026, our methodology for calculating ARR was updated to align more closely with the timing of when licenses are made available to customers. Prior period amounts have been updated to conform to current quarter methodology.

Remaining Performance Obligations
(Unaudited)
  
       
    As of April 30,  
    2025     2026  
    (in thousands)  
Remaining performance obligations:            
Current   $ 1,200,538     $ 1,504,035  
13-36 months     920,653       1,192,484  
Thereafter     305,548       381,271  
Total   $ 2,426,739     $ 3,077,790  


   
Reconciliation of GAAP to Non-GAAP Profit Measures
(Unaudited)
  
                   
    GAAP     Non-GAAP Adjustments     Non-GAAP  
    Three Months
Ended April 30,
2026		     (1)       (2)       (3)       (4)       (5)       Three Months
Ended April 30,
2026		  
    (in thousands, except percentages and per share data)  
Gross profit   $ 610,787     $ 6,074       $ 106       $ —       $ —       $ —       $ 616,967  
Gross margin     86.9 %     0.9 %       —         —         —         —         87.8 %
Operating expenses:                                          
Sales and marketing     283,605       (19,556 )       (88 )       —         —         —         263,961  
Research and development     196,098       (44,757 )       —         —         —         —         151,341  
General and administrative     60,575       (12,431 )       —         (2,948 )       —         —         45,196  
Total operating expenses     540,278       (76,744 )       (88 )       (2,948 )       —         —         460,498  
Income from operations     70,509       82,818         194         2,948         —         —         156,469  
Operating margin     10.0 %     11.9 %       —         0.4 %       —         —         22.3 %
Net income   $ 72,087     $ 82,818       $ 194       $ 2,948       $ 2,997       $ (24,827 )     $ 136,217  
Weighted shares outstanding, basic     265,950                                     265,950  
Weighted shares outstanding, diluted (6)     287,481                                     287,481  
Net income per share, basic   $ 0.27     $ 0.31       $ -       $ 0.01       $ 0.01       $ (0.09 )     $ 0.51  
Net income per share, diluted (7)   $ 0.25                                   $ 0.47  

________________________
(1)   Stock-based compensation expense
(2)   Amortization of intangible assets
(3)   Legal fees
(4)   Amortization of debt issuance costs and interest expense related to debt
(5)   Income tax effect of non-GAAP adjustments. We use a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe the use of a long-term projected tax rate of 20% aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.
(6)   Includes 21,531 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(7)   In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $1,108 of interest expense related to the convertible senior notes

    GAAP     Non-GAAP Adjustments     Non-GAAP  
    Nine Months
Ended April 30,
2026		     (1)       (2)       (3)       (4)       (5)       Nine Months
Ended April 30,
2026		  
    (in thousands, except percentages and per share data)  
Gross profit   $ 1,825,445     $ 21,282       $ 318       $ —       $ —       $ —       $ 1,847,045  
Gross margin     87.1 %     1.0 %       —         —         —         —         88.1 %
Operating expenses:                                          
Sales and marketing     846,381       (60,070 )       (264 )       —         —         —         786,047  
Research and development     585,839       (135,363 )       —         —         —         —         450,476  
General and administrative     189,244       (46,427 )       —         (9,651 )       —         —         133,166  
Total operating expenses     1,621,464       (241,860 )       (264 )       (9,651 )       —         —         1,369,689  
Income from operations     203,981       263,142         582         9,651         —         —         477,356  
Operating margin     9.7 %     12.6 %       —         0.5 %       —         —         22.8 %
Net income   $ 237,205     $ 263,142       $ 582       $ 9,651       $ 8,985       $ (98,163 )     $ 421,402  
Weighted shares outstanding, basic     268,058                                     268,058  
Weighted shares outstanding, diluted (6)     291,992                                     291,992  
Net income per share, basic   $ 0.88     $ 0.99       $ -       $ 0.04       $ 0.03       $ (0.37 )     $ 1.57  
Net income per share, diluted (7)   $ 0.82                                   $ 1.44  

______________________
(1)   Stock-based compensation expense
(2)   Amortization of intangible assets
(3)   Legal fees
(4)   Amortization of debt issuance costs and interest expense related to debt
(5)   Income tax effect of non-GAAP adjustments. We use a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe the use of a long-term projected tax rate of 20% aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.
(6)   Includes 23,934 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(7)   In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $3,305 of interest expense related to the convertible senior notes

    GAAP     Non-GAAP Adjustments     Non-GAAP  
    Three Months
Ended April 30,
2025		     (1)       (2)       (3)       (4)       (5)       (6)       Three Months
Ended April 30,
2025		  
    (in thousands, except percentages and per share data)  
Gross profit   $ 555,992     $ 7,024       $ 546       $ —       $ —       $ —       $ —       $ 563,562  
Gross margin     87.0 %     1.1 %       0.1 %       —         —         —         —         88.2 %
Operating expenses:                                                
Sales and marketing     260,402       (19,513 )       (89 )       —         —         —         —         240,800  
Research and development     186,413       (42,162 )       —         —         —         —         —         144,251  
General and administrative     60,532       (15,543 )       —         (3,545 )       —         —         —         41,444  
Total operating expenses     507,347       (77,218 )       (89 )       (3,545 )       —         —         —         426,495  
Income from operations     48,645       84,242         635         3,545         —         —         —         137,067  
Operating margin     7.6 %     13.2 %       0.1 %       0.6 %       —         —         —         21.5 %
Net income   $ 63,363     $ 84,242       $ 635       $ 3,545       $ (80 )     $ 2,950       $ (29,942 )     $ 124,713  
Weighted shares outstanding, basic     267,566                                           267,566  
Weighted shares outstanding, diluted (7)     296,804                                           296,804  
Net income per share, basic   $ 0.24     $ 0.32       $ -       $ 0.01       $ -       $ 0.01       $ (0.11 )     $ 0.47  
Net income per share, diluted (8)   $ 0.22                                         $ 0.42  

______________________
(1)   Stock-based compensation expense
(2)   Amortization of intangible assets
(3)   Legal fees
(4)   Other
(5)   Amortization of debt issuance costs and interest expense related to convertible senior notes
(6)   Income tax effect of non-GAAP adjustments. We use a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe the use of a long-term projected tax rate of 20% aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.
(7)   Includes 29,238 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(8)   In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $1,099 of interest expense related to the convertible senior notes

    GAAP     Non-GAAP Adjustments     Non-GAAP  
    Nine Months
Ended April 30,
2025		     (1)       (2)       (3)       (4)       (5)       (6)       (7)       Nine Months
Ended April 30,
2025		  
    (in thousands, except percentages and per share data)  
Gross profit   $ 1,633,711     $ 23,193       $ 2,080       $ —       $ —       $ —       $ —       $ —       $ 1,658,984  
Gross margin     86.7 %     1.2 %       0.1 %       —         —         —         —         —         88.0 %
Operating expenses:                                                      
Sales and marketing     775,185       (61,558 )       (265 )       —         —         —         —         —         713,362  
Research and development     543,157       (132,489 )       —         —         —         —         —         —         410,668  
General and administrative     174,036       (49,179 )       —         (6,480 )       —         —         —         —         118,377  
Total operating expenses     1,492,378       (243,226 )       (265 )       (6,480 )       —         —         —         —         1,242,407  
Income from operations     141,333       266,419         2,345         6,480         —         —         —         —         416,577  
Operating margin     7.5 %     14.2 %       0.1 %       0.3 %       —         —         —         —         22.1 %
Net income   $ 149,716     $ 266,419       $ 2,345       $ 6,480       $ (210 )     $ 11,347       $ 5,369       $ (74,862 )     $ 366,604  
Weighted shares outstanding, basic     267,081                                                 267,081  
Weighted shares outstanding, diluted (8)     292,942                                                 292,942  
Net income per share, basic   $ 0.56     $ 1.00       $ 0.01       $ 0.02       $ -       $ 0.04       $ 0.02       $ (0.28 )     $ 1.37  
Net income per share, diluted (9)   $ 0.52                                               $ 1.25  

_____________________
(1)   Stock-based compensation expense
(2)   Amortization of intangible assets
(3)   Legal fees
(4)   Other
(5)   Inducement expense related to partial repurchase of the 2027 Notes
(6)   Amortization of debt issuance costs and interest expense related to convertible senior notes
(7)   Income tax effect of non-GAAP adjustments. We use a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe the use of a long-term projected tax rate of 20% aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.
(8)   Includes 25,861 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(9)   In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $2,074 of interest expense related to the convertible senior notes

Reconciliation of GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow
(Unaudited)
  
             
    Three Months Ended
April 30, 		    Nine Months Ended
April 30, 		 
    2025     2026     2025     2026  
    (in thousands)  
Net cash provided by operating activities   $ 218,506     $ 207,504     $ 601,927     $ 601,675  
Purchases of property and equipment     (15,095 )     (10,323 )     (59,533 )     (38,570 )
Free cash flow   $ 203,411     $ 197,181     $ 542,394     $ 563,105  



Primary Logo

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.

Share this page:

Sign up for:

Applied Technology News

The daily local news briefing you can trust. Every day. Subscribe now.

By signing up, you agree to our Terms & Conditions.