Nutanix Reports Fourth Quarter and Fiscal 2025 Financial Results

Reports 18% YoY Revenue Growth and Strong Free Cash Flow for Fiscal 2025 Delivers Outperformance Across All Guided Metrics SAN JOSE, Calif., Aug. 27, 2025 (GLOBE NEWSWIRE) -- Nutanix, Inc. (NASDAQ: NTNX), a leader in hybrid multicloud computing, today announced financial results for its fourth quarter and fiscal year ended July 31, 2025. “Our fourth quarter was a good finish to a fiscal year in which we delivered high-teens top line growth and added over 2,700 new customers,” said Rajiv Ramaswami, President and CEO of Nutanix. “In fiscal 2025, we also made progress with respect to partnerships, signing new or enhanced agreements with AWS, Pure Storage, NVIDIA and Google, and continued to innovate across our cloud platform, including modern applications and AI.” “Our fiscal 2025 results demonstrated a good balance of top and bottom line performance with 18% year-over-year revenue growth and strong free cash flow generation,” said Rukmini Sivaraman, CFO of Nutanix. “These results drove a Rule of 401 score of 48, our second year in a row above 40.” Fourth Quarter Fiscal 2025 Financial Summary Q4 FY’25Q4 FY’24Y/Y ChangeAnnual Recurring Revenue (ARR)2$2.22 billion$1.91 billion17%Average Contract Duration33.2 years3.1 years0.1 yearRevenue$653.3 million$548.0 million19%GAAP Gross Margin87.2%85.2%200 bpsNon-GAAP Gross Margin88.3%86.9%140 bpsGAAP Operating Expenses$538.2 million$479.2 million12%Non-GAAP Operating Expenses$457.2 million$405.5 million13%GAAP Operating Income (Loss)$31.2 million$(12.2) million$43.4 millionNon-GAAP Operating Income$119.5 million$70.5 million$49.0 millionGAAP Operating Margin4.8%(2.2)%700 bpsNon-GAAP Operating Margin18.3%12.9%540 bpsNet Cash Provided by Operating Activities$219.5 million$244.7 million$(25.2) millionFree Cash Flow$207.8 million$224.3 million$(16.5) million Fiscal 2025 Financial Summary FY’25FY’24Y/Y ChangeAnnual Recurring Revenue (ARR)2$2.22 billion$1.91 billion17%Average Contract Duration33.1 years3.0 years0.1 yearRevenue$2.54 billion$2.15 billion18%GAAP Gross Margin86.8%84.9%190 bpsNon-GAAP Gross Margin88.1%86.7%140 bpsGAAP Operating Expenses$2.03 billion$1.82 billion12%Non-GAAP Operating Expenses$1.70 billion$1.52 billion12%GAAP Operating Income$172.5 million$7.6 million$164.9 millionNon-GAAP Operating Income$536.1 million$347.1 million$189.0 millionGAAP Operating Margin6.8%0.4%640 bpsNon-GAAP Operating Margin21.1%16.2%490 bpsNet Cash Provided by Operating Activities$821.5 million$672.9 million$148.6 millionFree Cash Flow$750.2 million$597.7 million$152.5 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 Nutanix is Named a Leader in Multicloud Container Platforms Evaluation: Nutanix announced it has been positioned as a Leader in The Forrester Wave™: Multicloud Container Platforms, Q3 2025, following the launch of its Nutanix Kubernetes Platform (NKP) solution at the company’s annual .NEXT conference last year.Nutanix is Named a Challenger in the 2025 Gartner® Magic Quadrant™ for Container Management: Nutanix announced it has been recognized as a Challenger in the 2025 Gartner Magic Quadrant for Container Management following the launch of its NKP solution, marking the company’s first recognition in this Magic Quadrant.Finanz Informatik Signs Long-Term Contract with Nutanix: Nutanix announced that Finanz Informatik, the digitalization partner of the German Savings Bank Finance Group and one of the largest banking-IT service providers in Europe, has entered into a strategic collaboration with Nutanix and signed a long-term contract.Nutanix Announces Increase to Share Repurchase Authorization: Nutanix announced that its Board of Directors has authorized an increase of $350 million of common stock to the company’s existing share repurchase program. First Quarter Fiscal 2026 Outlook Revenue$670 - $680 millionNon-GAAP Operating Margin19.5% to 20.5%Weighted Average Shares Outstanding (Diluted)4Approximately 296 million Fiscal 2026 Outlook Revenue$2.90 - $2.94 billionNon-GAAP Operating Margin21% to 22%Free Cash Flow$790 - $830 million Supplementary materials to this press release, including our fourth quarter and fiscal 2025 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 fourth quarter and fiscal 2025 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. Footnotes1Rule of 40 is defined as the sum of revenue growth rate and free cash flow margin for the period. 2Annual Recurring Revenue, or ARR, for any given period, is defined as the sum of ACV for all subscription contracts in effect as of the end of a specific period. For the purposes of this calculation, we assume that the contract term begins on the date a contract is booked, unless the terms of such contract prevent us from fulfilling our obligations until a later period, and irrespective of the periods in which we would recognize revenue for such contract. Excludes all life-of-device contracts. 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. Excludes amounts related to professional services and hardware. Our methodology for calculating ARR will be updated prospectively beginning with the first quarter of fiscal year ending July 31, 2026 to align it more closely with the timing of when licenses are made available to customers. For more information, please see the Appendix section of our earnings presentation found on our Investor Relations website at ir.nutanix.com. 3Average 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. 4Weighted 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 and the related income tax impact, costs associated with our acquisitions (such as amortization of acquired intangible assets, income tax-related impact, and other acquisition-related costs), restructuring charges, litigation settlement accruals and legal fees related to certain litigation matters, the amortization and conversion 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 (used in) 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 topline growth of our subscription business because it takes into account variability in term lengths. 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 first 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 momentum and prospects, including our continued innovation across our cloud platform, including modern applications and AI; our first 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; 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, 2024 filed with the U.S. Securities and Exchange Commission, or the SEC, on September 19, 2024 and our subsequent Quarterly Reports on Form 10-Q filed with the SEC. Additional information will be set forth in our Annual Report on Form 10-K for the fiscal year ended July 31, 2025, 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 secure, unified 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 29,000 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. © 2025 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 Valerair@nutanix.com Media Contact:Jennifer Massaropr@nutanix.com NUTANIX, INC.CONSOLIDATED BALANCE SHEETS (Unaudited) As of July 31, 2024 July 31, 2025 (in thousands) Assets Current assets: Cash and cash equivalents $655,270 $769,502 Short-term investments 339,072 1,223,234 Accounts receivable, net 229,796 337,967 Deferred commissions—current 159,849 153,072 Prepaid expenses and other current assets 97,307 105,391 Total current assets 1,481,294 2,589,166 Property and equipment, net 136,180 142,814 Operating lease right-of-use assets 109,133 134,526 Deferred commissions—non-current 198,962 189,221 Intangible assets, net 5,153 2,615 Goodwill 185,235 185,235 Other assets—non-current 27,961 39,617 Total assets $2,143,918 $3,283,194 Liabilities and Stockholders’ Deficit Current liabilities: Accounts payable $45,066 $81,599 Accrued compensation and benefits 195,602 230,498 Accrued expenses and other current liabilities 24,967 24,187 Deferred revenue—current 954,543 1,054,023 Operating lease liabilities—current 24,163 23,234 Total current liabilities 1,244,341 1,413,541 Deferred revenue—non-current 918,163 1,058,731 Operating lease liabilities—non-current 90,359 115,754 Convertible senior notes, net 570,073 1,343,818 Other liabilities—non-current 49,130 45,870 Total liabilities 2,872,066 3,977,714 Stockholders’ deficit: Common stock 7 7 Additional paid-in capital 4,118,898 4,200,466 Accumulated other comprehensive loss 146 700 Accumulated deficit (4,847,199) (4,895,693)Total stockholders’ deficit (728,148) (694,520)Total liabilities and stockholders’ deficit $2,143,918 $3,283,194 NUTANIX, INC.CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended July 31, Fiscal Year Ended July 31, 2024 2025 2024 2025 (in thousands, except per share data) Revenue: Product $265,901 $339,789 $1,067,948 $1,341,374 Support, entitlements and other services 282,051 313,478 1,080,868 1,196,553 Total revenue 547,952 653,267 2,148,816 2,537,927 Cost of revenue: Product (1)(2) 8,336 4,372 36,441 28,341 Support, entitlements and other services (1) 72,642 79,461 287,671 306,441 Total cost of revenue 80,978 83,833 324,112 334,782 Gross profit 466,974 569,434 1,824,704 2,203,145 Operating expenses: Sales and marketing (1)(2) 259,360 281,280 977,286 1,056,465 Research and development (1) 167,396 193,666 638,992 736,823 General and administrative (1) 52,406 63,280 200,863 237,316 Total operating expenses 479,162 538,226 1,817,141 2,030,604 (Loss) income from operations (12,188) 31,208 7,563 172,541 Other (expense) income, net (106,361) 13,935 (108,881) 39,107 (Loss) income before provision for income taxes (118,549) 45,143 (101,318) 211,648 Provision for income taxes 7,552 6,493 23,457 23,282 Net (loss) income $(126,101) $38,650 $(124,775) $188,366 Net (loss) income per share attributable to Class A common stockholders, basic $(0.51) $0.14 $(0.51) $0.70 Net (loss) income per share attributable to Class A common stockholders, diluted $(0.51) $0.13 $(0.51) $0.65 Weighted average shares used in computing net (loss) income per share attributable to Class A common stockholders, basic 247,886 268,659 244,743 267,479 Weighted average shares used in computing net (loss) income per share attributable to Class A common stockholders, diluted 247,886 297,456 244,743 294,083 ________________(1) Includes the following stock-based compensation expense: Three Months Ended July 31, Fiscal Year Ended July 31, 2024 2025 2024 2025 (in thousands) Product cost of revenue $1,621 $399 $6,822 $2,824 Support, entitlements and other services cost of revenue 6,595 6,814 27,285 27,582 Sales and marketing 19,080 19,372 80,190 80,930 Research and development 39,120 42,872 156,784 175,361 General and administrative 15,158 15,714 62,752 64,893 Total stock-based compensation expense $81,574 $85,171 $333,833 $351,590 ________________(2) Includes the following amortization of intangible assets: Three Months Ended July 31, Fiscal Year Ended July 31, 2024 2025 2024 2025 (in thousands) Product cost of revenue $766 $105 $3,392 $2,185 Sales and marketing 99 88 317 353 Total amortization of intangible assets $865 $193 $3,709 $2,538 NUTANIX, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Fiscal Year Ended July 31, 2024 2025 (in thousands) Cash flows from operating activities: Net (loss) income $(124,775) $188,366 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization 73,199 72,701 Stock-based compensation 333,833 351,590 Amortization of debt discount and issuance costs 41,600 3,877 Conversion of convertible senior notes attributable to debt discount and issuance costs 107,877 — Inducement expense from partial repurchase of the 2027 Notes — 11,347 Operating lease cost, net of accretion 31,462 29,029 Non-cash interest expense 18,550 — Other (13,312) (4,829)Changes in operating assets and liabilities: Accounts receivable, net (53,811) (71,886)Deferred commissions (820) 16,517 Prepaid expenses and other assets 46,623 (8,101)Accounts payable 14,749 30,018 Accrued compensation and benefits 51,923 33,286 Accrued expenses and other liabilities (82,632) (4,269)Operating leases, net (30,475) (29,954)Deferred revenue 258,940 203,764 Net cash provided by operating activities 672,931 821,456 Cash flows from investing activities: Maturities of investments 774,237 476,173 Purchases of investments (871,259) (1,359,593)Sales of investments 706,363 3,016 Payments for acquisitions, net of cash acquired (4,500) — Purchases of property and equipment (75,252) (71,283)Net cash provided by (used in) investing activities 529,589 (951,687)Cash flows from financing activities: Proceeds from sales of shares through employee equity incentive plans 51,571 68,935 Taxes paid related to net share settlement of equity awards (161,552) (256,636)Repayment of convertible notes (817,633) — 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 (131,139) (307,900)Payment of finance lease obligations (3,876) (4,628)Deferred payment of purchases of property and equipment — (2,000)Net cash (used in) provided by financing activities (1,062,629) 244,086 Net increase in cash, cash equivalents and restricted cash $139,891 $113,855 Cash, cash equivalents and restricted cash—beginning of period 515,771 655,662 Cash, cash equivalents and restricted cash—end of period $655,662 $769,517 Restricted cash (1) 392 15 Cash and cash equivalents—end of period $655,270 $769,502 Supplemental disclosures of cash flow information: Cash paid for income taxes $23,647 $32,537 Supplemental disclosures of non-cash investing and financing information: Purchases of property and equipment included in accounts payable and accrued and other liabilities $19,275 $6,945 Forfeited paid-in-kind interest recognized in equity upon note conversion $6,019 $— Unpaid taxes related to net share settlement of equity awards included in accrued expenses and other liabilities $— $13,423 ________________(1) Included within other assets—non-current in the condensed consolidated balance sheets. Disaggregation of Revenue(Unaudited) Three Months Ended July 31, Fiscal Year Ended July 31, 2024 2025 2024 2025 (in thousands) Disaggregation of revenue: Subscription revenue $518,695 $615,974 $2,016,776 $2,410,751 Professional services revenue 26,769 28,886 100,852 112,202 Other non-subscription product revenue 2,488 8,407 31,188 14,974 Total revenue $547,952 $653,267 $2,148,816 $2,537,927 Subscription revenue — Subscription revenue includes any performance obligation which has a defined term, and is generated from the sales of software entitlement subscriptions, support subscriptions, subscription software licenses and cloud-based software-as-a-service, or SaaS, offerings. Ratable — We recognize revenue from software entitlement subscriptions, support subscriptions and SaaS offerings ratably over the contractual service period, the substantial majority of which relate to software entitlement subscriptions and support subscriptions.Upfront — Revenue from our subscription software licenses is generally recognized upfront upon transfer of control to the customer, which happens when we make the software available to the customer. Professional services revenue — We also sell professional services with our products. We recognize revenue related to professional services as they are performed. Other non-subscription product revenue — Other non-subscription product revenue includes approximately $1.6 million and $27.9 million of non-portable software revenue for the three and twelve months ended July 31, 2024, respectively, $7.9 million and $10.8 million of non-portable software revenue for the three and twelve months ended July 31, 2025, respectively, $0.9 million and $3.3 million of hardware revenue for the three and twelve months ended July 31, 2024, respectively, and $0.5 million and $4.1 million of hardware revenue for the three and twelve months ended July 31, 2025, respectively. Non-portable software revenue — Non-portable software revenue includes sales of our platform when delivered on a configured-to-order appliance by us or one of our OEM partners. The software licenses associated with these sales are typically non-portable and can be used over the life of the appliance on which the software is delivered. Revenue from our non-portable software products is generally recognized upon transfer of control to the customer.Hardware revenue — In the infrequent transactions where the hardware appliance is purchased directly from Nutanix, we consider ourselves to be the principal in the transaction and we record revenue and costs of goods sold on a gross basis. We consider the amount allocated to hardware revenue to be equivalent to the cost of the hardware procured. Hardware revenue is generally recognized upon transfer of control to the customer. Reconciliation of Revenue to Billings(Unaudited) Three Months Ended July 31, Fiscal Year Ended July 31, 2024 2025 2024 2025 (in thousands) Total revenue $547,952 $653,267 $2,148,816 $2,537,927 Change in deferred revenue 124,903 73,625 258,940 203,764 Total billings $672,855 $726,892 $2,407,756 $2,741,691 Annual Recurring Revenue (Unaudited) Three Months Ended July 31, Fiscal Year Ended July 31, 2024 2025 2024 2025 (in thousands) Annual Recurring Revenue (ARR) $1,907,982 $2,223,197 $1,907,982 $2,223,197 Reconciliation of GAAP to Non-GAAP Profit Measures(Unaudited) GAAP Non-GAAP Adjustments Non-GAAP Three Months Ended July 31, 2025 (1) (2) (3) (4) (5) (6) Three Months Ended July 31, 2025 (in thousands, except percentages and per share data) Gross profit $569,434 $7,213 $105 $— $— $— $— $576,752 Gross margin 87.2% 1.1% — — — — — 88.3%Operating expenses: Sales and marketing 281,280 (19,372) (88) — — — — 261,820 Research and development 193,666 (42,872) — — — — — 150,794 General and administrative 63,280 (15,714) — (2,971) — — — 44,595 Total operating expenses 538,226 (77,958) (88) (2,971) — — — 457,209 Income from operations 31,208 85,171 193 2,971 — — — 119,543 Operating margin 4.8% 13.0% — 0.5% — — — 18.3%Net income $38,650 $85,171 $193 $2,971 $(100) $3,008 $(20,784) $109,109 Weighted shares outstanding, basic 268,659 268,659 Weighted shares outstanding, diluted (7) 297,456 297,456 Net income per share, basic $0.14 $0.33 $- $0.01 $- $0.01 $(0.08) $0.41 Net income per share, diluted (8) $0.13 $0.37 ________________(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 debt(6) Income tax effect of non-GAAP adjustments. Beginning in the third quarter of fiscal 2025, we adopted 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% better aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides better 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 28,797 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 Fiscal Year Ended July 31, 2025 (1) (2) (3) (4) (5) (6) (7) Fiscal Year Ended July 31, 2025 (in thousands, except percentages and per share data) Gross profit $2,203,145 $30,406 $2,185 $— $— $— $— $— $2,235,736 Gross margin 86.8% 1.2% 0.1% — — — — — 88.1%Operating expenses: Sales and marketing 1,056,465 (80,930) (353) — — — — — 975,182 Research and development 736,823 (175,361) — — — — — — 561,462 General and administrative 237,316 (64,893) — (9,451) — — — — 162,972 Total operating expenses 2,030,604 (321,184) (353) (9,451) — — — — 1,699,616 Income from operations 172,541 351,590 2,538 9,451 — — — — 536,120 Operating margin 6.8% 13.8% 0.1% 0.4% — — — — 21.1%Net income $188,366 $351,590 $2,538 $9,451 $(310) $11,347 $8,377 $(95,646) $475,713 Weighted shares outstanding, basic 267,479 267,479 Weighted shares outstanding, diluted (8) 294,083 294,083 Net income per share, basic $0.70 $1.32 $0.01 $0.04 $- $0.04 $0.03 $(0.36) $1.78 Net income per share, diluted (9) $0.65 $1.62 ________________(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 debt(7) Income tax effect of non-GAAP adjustments. Beginning in the third quarter of fiscal 2025, we adopted 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. This rate has been retrospectively applied to the full period presented in this table to enhance consistency and comparability. We believe the use of a long-term projected tax rate of 20% better aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides better 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 26,604 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 $3,172 of interest expense related to the convertible senior notes GAAP Non-GAAP Adjustments Non-GAAP Three Months Ended July 31, 2024 (1) (2) (3) (4) (5) (6) Three Months Ended July 31, 2024 (in thousands, except percentages and per share data) Gross profit $466,974 $8,216 $766 $— $— $— $— $475,956 Gross margin 85.2% 1.6% 0.1% — — — — 86.9%Operating expenses: Sales and marketing 259,360 (19,080) (99) — — — — 240,181 Research and development 167,396 (39,120) — — — — — 128,276 General and administrative 52,406 (15,158) — (216) — — — 37,032 Total operating expenses 479,162 (73,358) (99) (216) — — — 405,489 (Loss) income from operations (12,188) 81,574 865 216 — — — 70,467 Operating margin (2.2)% 14.9% 0.2% — — — — 12.9%Net (loss) income $(126,101) $81,574 $865 $216 $(120) $119,505 $(9,146) $66,793 Weighted shares outstanding, basic 247,886 247,886 Weighted shares outstanding, diluted (7) 247,886 284,808 Net (loss) income per share, basic $(0.51) $0.34 $- $- $- $0.48 $(0.04) $0.27 Net (loss) income per share, diluted $(0.51) $0.23 ________________(1) Stock-based compensation expense(2) Amortization of intangible assets(3) Legal fees(4) Other(5) Amortization and conversion of debt discount and issuance costs and interest expense related to convertible senior notes(6) Income tax effect of non-GAAP adjustments. Beginning in the third quarter of fiscal 2025, and retrospectively applied to comparable prior year periods, we adopted 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% better aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides better 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 36,922 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans GAAP Non-GAAP Adjustments Non-GAAP Fiscal Year Ended July 31, 2024 (1) (2) (3) (4) (5) (6) (7) Fiscal Year Ended July 31, 2024 (in thousands, except percentages and per share data) Gross profit $1,824,704 $34,107 $3,392 $— $— $— $— $— $1,862,203 Gross margin 84.9% 1.6% 0.2% — — — — — 86.7%Operating expenses: Sales and marketing 977,286 (80,190) (317) 194 — — — — 896,973 Research and development 638,992 (156,784) — — — — — — 482,208 General and administrative 200,863 (62,752) — — (1,971) (225) — — 135,915 Total operating expenses 1,817,141 (299,726) (317) 194 (1,971) (225) — — 1,515,096 Income from operations 7,563 333,833 3,709 (194) 1,971 225 — — 347,107 Operating margin 0.4% 15.5% 0.2% — 0.1% — — — 16.2%Net income $(124,775) $333,833 $3,709 $(194) $1,971 $805 $169,379 $(58,180) $326,548 Weighted shares outstanding, basic 244,743 244,743 Weighted shares outstanding, diluted (8) 244,743 293,901 Net income per share, basic $(0.51) $1.36 $0.02 $- $0.01 $- $0.69 $(0.24) $1.33 Net income per share, diluted $(0.51) $1.11 ________________(1) Stock-based compensation expense(2) Amortization of intangible assets(3) Restructuring charges (reversals)(4) Legal fees(5) Other(6) Amortization and conversion of debt discount and issuance costs and interest expense related to convertible senior notes(7) Income tax effect of non-GAAP adjustments. Beginning in the third quarter of fiscal 2025, and retrospectively applied to comparable prior year periods, we adopted 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% better aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides better 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 49,158 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans Reconciliation of GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow(Unaudited) Three Months Ended July 31, Fiscal Year Ended July 31, 2024 2025 2024 2025 (in thousands) Net cash provided by operating activities $244,697 $219,529 $672,931 $821,456 Purchases of property and equipment (20,439) (11,750) (75,252) (71,283)Free cash flow $224,258 $207,779 $597,679 $750,173

Nutanix Reports Fourth Quarter and Fiscal 2025 Financial Results

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