Nutanix 2025 Conference Summary Company Overview - **Company**: Nutanix (NasdaqGS: NTNX) - **Industry**: Hybrid Cloud Infrastructure Key Points and Arguments Vision and Market Position - Nutanix aims to become a de facto platform for applications and data management across various environments, including on-premises, edge, and public clouds, over the next five years [5][4] - The company has been recognized as a leader in Gartner's distributed hybrid infrastructure Magic Quadrant, competing against larger firms like AWS and Microsoft [5] Private vs. Public Cloud - The debate between private and public cloud continues, with private cloud being more cost-effective when properly engineered [9] - Data sovereignty, privacy, and security concerns are driving the need for hybrid cloud solutions, where applications and data can be managed flexibly [10] AI Workloads - Currently, most AI workloads are in public cloud environments for training purposes, but as enterprises adopt AI for daily needs, workloads will likely become more distributed [11][12] Financial Metrics and Methodology Changes - Nutanix has aligned its Annual Recurring Revenue (ARR) recognition with the provision of licenses to customers, reflecting industry practices [14][15] - Fiscal year 2026 guidance anticipates a midpoint growth of approximately 15%, driven by the deployment of HCI architecture and partnerships [19][16] Growth Drivers - Key growth drivers include: - Continued deployment of HCI architecture in legacy environments [16] - The hybrid cloud trend, which is still in early stages [17] - Growth in cloud-native applications through the Nutanix Kubernetes Platform (NKP) [17] - New partnerships that will drive incremental revenue [18] Partnerships and Market Strategy - Nutanix is now supporting external storage, allowing easier integration into existing environments without requiring customers to switch to HCI immediately [20][21] - The company aims to penetrate the remaining 75% of the traditional storage market while maintaining its core HCI offerings [21][24] Customer Momentum - Nutanix has added approximately 2,700 new customers over the past year, with a focus on migrating customers from VMware [52][36] - The company expects to sustain mid to high three-digit new logo additions quarterly [39] Product Portfolio Expansion - The number of use cases within customer environments has increased, with Nutanix now offering solutions that integrate external storage and modern applications [41] - The company is seeing initial success in public cloud migrations, particularly from VMware customers [42] Pricing Strategy - Nutanix aims to maintain competitive pricing while emphasizing the value it provides, rather than competing solely on price [60][59] Margin and Operational Efficiency - Nutanix is focused on driving growth while improving operating margins, with investments in sales, marketing, and R&D [62][63] - The company is not yet at its long-term operating margin goals but is working towards improving sales rep productivity and renewal efficiencies [66] AI and Future Opportunities - Nutanix's AI initiatives, such as GPT-in-a-Box, are still in early stages, with customers exploring use cases like document summarization and fraud detection [67][68] - The company anticipates a rise in inference applications as enterprises optimize workflows and tasks [69] Additional Important Insights - The transition to supporting external storage is seen as a strategic move to capture a larger market share without forcing customers to make significant architectural changes [24][20] - The gradual migration of VMware customers is characterized as a multi-year opportunity, with infrastructure being sticky and requiring careful planning for transitions [52][56]

Group 1 - Nutanix Inc (NTNX) shares are trading higher following the announcement that it will be added to the S&P MidCap 400 index, effective prior to the market opening on September 22 [1][2] - The inclusion in the S&P MidCap 400 is a significant milestone for Nutanix, as it typically leads to increased demand from index funds and institutional investors [2] - Nutanix will replace Acadia Healthcare Company Inc (ACHC) in the index [2] Group 2 - Nutanix shares have increased by 7.24% to $74.98, with a 52-week high of $83.36 and a low of $54.66 [4] - According to Benzinga Edge rankings, Nutanix has a Growth score of 57.77 but a low Value score of 8.29 [3]

Core Viewpoint - S&P Dow Jones Indices will implement changes to the S&P 100, S&P 500, S&P MidCap 400, and S&P SmallCap 600 indices effective September 22, 2025, to enhance market capitalization representation [1][2]. Changes Summary - **S&P 100 Changes**: - Addition of Uber Technologies (Ticker: UBER) in the Industrials sector - Deletion of Charter Communications (Ticker: CHTR) from the index [2][3]. - **S&P 500 Changes**: - Additions: - AppLovin (Ticker: APP) in the Information Technology sector - Robinhood Markets (Ticker: HOOD) in the Financials sector - Emcor Group (Ticker: EME) in the Industrials sector - Deletions: - MarketAxess Holdings (Ticker: MKTX) in the Financials sector - Caesars Entertainment (Ticker: CZR) in the Consumer Discretionary sector - Enphase Energy (Ticker: ENPH) in the Information Technology sector [2][3]. - **S&P MidCap 400 Changes**: - Additions: - Nutanix (Ticker: NTNX) in the Information Technology sector - TransUnion (Ticker: TRU) in the Industrials sector - MP Materials (Ticker: MP) in the Materials sector - Kratos Defense & Security Solutions (Ticker: KTOS) in the Industrials sector - Deletions: - Emcor Group (Ticker: EME) in the Industrials sector - The Wendy's Company (Ticker: WEN) in the Consumer Discretionary sector - Acadia Healthcare Company (Ticker: ACHC) in the Health Care sector - ManpowerGroup (Ticker: MAN) in the Industrials sector [3][4]. - **S&P SmallCap 600 Changes**: - Additions: - MarketAxess Holdings (Ticker: MKTX) in the Financials sector - Caesars Entertainment (Ticker: CZR) in the Consumer Discretionary sector - Enphase Energy (Ticker: ENPH) in the Information Technology sector - The Wendy's Company (Ticker: WEN) in the Consumer Discretionary sector - Acadia Healthcare Company (Ticker: ACHC) in the Health Care sector - Noble Corporation (Ticker: NE) in the Energy sector - Q2 Holdings (Ticker: QTWO) in the Information Technology sector - Waystar Holding (Ticker: WAY) in the Health Care sector - Hecla Mining (Ticker: HL) in the Materials sector - Deletions: - MP Materials (Ticker: MP) in the Materials sector - Kratos Defense & Security Solutions (Ticker: KTOS) in the Industrials sector - ProPetro Holding (Ticker: PUMP) in the Energy sector - Xerox Holdings (Ticker: XRX) in the Information Technology sector - TechTarget (Ticker: TTGT) in the Communication Services sector - Mesa Laboratories (Ticker: MLAB) in the Health Care sector - Owens & Minor (Ticker: OMI) in the Health Care sector - B&G Foods (Ticker: BGS) in the Consumer Staples sector - Jack in the Box (Ticker: JACK) in the Consumer Discretionary sector - Simulations Plus (Ticker: SLP) in the Health Care sector [3][4].

Core Viewpoint - Nutanix is experiencing significant growth, adding 2,700 new customers in the past year, driven by channel partners and a shift from VMware to hyper-converged infrastructure [2][3][4]. Customer Growth - The total customer count for Nutanix has reached 29,000, including over 50 Global 2000 companies, following the addition of 2,700 new customers [3][4]. - Nutanix expects to maintain a mid-to-high single-digit growth rate in new customer acquisition for the upcoming fiscal year [3]. Market Opportunity - Nutanix is in a "second inning" of capturing market share from VMware, with a market opportunity expected to last 5 to 10 years [3][4]. - Despite the growth, VMware still has 200,000 customers, indicating substantial market space for Nutanix to explore [4]. Financial Performance - For the fiscal year ending July 31, Nutanix reported revenues of $2.54 billion, an 18% increase year-over-year, and a net profit of $39 million, recovering from a net loss of $108 million the previous year [6]. - In the fourth quarter, Nutanix's revenue grew by 19% to $653.2 million, with a net profit of $13.9 million [7]. Strategic Partnerships - Nutanix has formed a partnership with Dell Technologies to support PowerFlex storage arrays, successfully migrating two Global 2000 companies to its platform [5][6]. - The collaboration with Pure Storage is in beta testing, aiming to integrate Pure's flash arrays with Nutanix's hyper-converged infrastructure [6].

Core Insights - Nutanix ended fiscal 2025 with a stronger-than-expected fourth quarter, achieving double-digit revenue growth and indicating progress from large strategic deals and industry partnerships [1][2] - Despite the positive performance, near-term contract timing issues affected investor sentiment, leading to a decline in share price [1][8] Financial Performance - The company reported fourth-quarter revenue of $653.3 million, a 19% increase from the previous year, surpassing guidance due to steady new customer additions and expanding enterprise adoption [2] - Annual recurring revenue (ARR) and net revenue retention (NRR) faced temporary challenges due to contracts with deferred start dates [2] Analyst Ratings and Forecasts - Needham analyst Mike Cikos maintained a Buy rating on Nutanix but reduced the price target from $92 to $80, citing near-term valuation pressures while remaining confident in the company's long-term prospects [3][8] - For fiscal 2026, management projected revenue between $2.90 billion and $2.94 billion, operating margins of 21%–22%, and free cash flow of $790–$830 million [6] Growth Catalysts - Key growth drivers include strong execution, expanding partnerships with Cisco, Dell, and Pure Storage, and early adoption of the Nutanix Cloud Infrastructure (NCI) Compute platform [4][6] - The NCI Compute platform has gained traction since its launch in April 2025, with Dell PowerFlex integration and expected support from Pure Storage by year-end [6] Future Expectations - In the first quarter of fiscal 2026, Nutanix anticipates revenue of $670–$680 million, operating margins of 19.5%–20.5%, and earnings per share of 37 cents [7] - The company expects to add several hundred new customers per quarter while continuing to grow renewal annual contract value (ACV) and partner-led revenue contributions [7]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported quarterly revenue of $653 million, representing a 19% year-over-year increase [7][14] - Full fiscal year 2025 revenue was $2.54 billion, up 18% year-over-year, with an annual recurring revenue (ARR) of $2.22 billion, increasing 17% year-over-year [8][17] - Free cash flow for Q4 was $208 million, yielding a free cash flow margin of 32%, while for the full year, free cash flow was $750 million, representing a 30% margin [16][19] - Non-GAAP net income for Q4 was $109 million, or $0.37 per share, while GAAP net income was $39 million, or $0.13 per share [15][16] Business Line Data and Key Metrics Changes - The company added over 2,700 new customers in fiscal year 2025, the highest in four years, including over 50 Global 2000 accounts [8][17] - The average contract duration increased to 3.2 years in Q4, slightly above expectations [15] - The net dollar retention rate (NRR) at the end of Q4 was 108% [15] Market Data and Key Metrics Changes - The company enhanced its platform with new capabilities, including support for Google Cloud and a partnership with Pure Storage [9][10] - The company was recognized as a leader in the 2024 Gartner Magic Quadrant for Distributed Hybrid Infrastructure and as a challenger in the 2025 Gartner Magic Quadrant for container management [10] Company Strategy and Development Direction - The company is focused on capitalizing on multi-year opportunities in the face of industry disruption, with a strategic decision to enable customers to utilize existing external storage hardware [9][13] - The company aims to continue landing new customers at a rate of mid to high three digits per quarter in fiscal year 2026 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term potential of the business despite macroeconomic uncertainties, particularly in U.S. Federal government spending [21][44] - The company expects some decline in average contract duration due to larger contracts in fiscal year 2025 that may not recur [22][23] Other Important Information - The company announced a $350 million increase to its existing share repurchase authorization [25] - The first quarter fiscal 2026 guidance includes revenue of $670 million to $680 million and a non-GAAP operating margin of 19.5% to 20.5% [20] Q&A Session Summary Question: Can you talk about the FI win and the size of the deal? - Management noted that the FI win was significant, involving a long-term partnership, but did not quantify the deal size [30][31] Question: NRR was down a couple of points sequentially; can you explain? - Management explained that NRR can be affected by the net impact of ARR contributions from prior quarters and noted that larger initial deal sizes could lead to lower future expansion [34][35] Question: How should we think about Dell PowerFlex customers compared to traditional Nutanix customers? - Management indicated that Dell PowerFlex targets large customers, and initial wins were achieved quickly, with expectations for continued growth [40][41] Question: What is the outlook for the U.S. Federal business? - Management acknowledged longer deal cycles and variability in the U.S. Federal sector but remained optimistic about modernization opportunities [44][45] Question: Can you discuss the enterprise AI maturity and its impact on Nutanix? - Management stated that enterprise AI adoption is still in early stages but is expected to accelerate over the next few years [54][55] Question: What are the dynamics around average contract duration and its impact on revenue? - Management explained that average contract duration can vary based on business mix and noted that a slight decline is expected, impacting revenue [85][88]

Financial Data and Key Metrics Changes - In Q4 2025, Nutanix reported quarterly revenue of $653 million, representing a 19% year-over-year increase [5][13] - For the full fiscal year 2025, revenue was $2.54 billion, up 18% year-over-year, with an annual recurring revenue (ARR) of $2.22 billion, increasing 17% year-over-year [6][16] - Free cash flow for FY 2025 was $750 million, a 26% increase year-over-year, yielding a free cash flow margin of 30% [6][18] - Non-GAAP net income for Q4 was $109 million, or $0.37 per share, while GAAP net income was $39 million, or $0.13 per share [14][15] Business Line Data and Key Metrics Changes - The company added over 2,700 new customers in FY 2025, the highest in four years, including over 50 Global 2000 accounts [6][16] - The average contract duration increased to 3.2 years in Q4, slightly above expectations [14] - Non-GAAP gross margin for Q4 was 88.3%, and for FY 2025, it was 88.1%, reflecting a year-over-year increase of 140 basis points [14][18] Market Data and Key Metrics Changes - Nutanix enhanced its platform with new capabilities, including support for Google Cloud and partnerships with Pure Storage and Dell PowerFlex [7][8][9] - The company was recognized as a leader in the 2024 Gartner Magic Quadrant for Distributed Hybrid Infrastructure and as a challenger in the 2025 Gartner Magic Quadrant for container management [8][9] Company Strategy and Development Direction - Nutanix is focused on capitalizing on multi-year opportunities in the face of industry disruption, emphasizing partnerships and ongoing innovation [12] - The company aims to enhance its Gen AI capabilities and extend hybrid multi-cloud capabilities [7][8] - Nutanix plans to continue landing new customers at a rate of mid to high three digits per quarter in FY 2026 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term potential of the U.S. Federal business despite current uncertainties and longer deal cycles [44][70] - The company anticipates some macroeconomic uncertainties but remains confident in solid demand for its solutions [69][70] - Guidance for Q1 FY 2026 includes revenue expectations of $670 million to $680 million, with an initial FY 2026 revenue guidance of $2.9 billion to $2.94 billion, reflecting a 15% year-over-year growth rate at the midpoint [19][21] Other Important Information - Nutanix announced a $350 million increase to its existing share repurchase authorization [25] - The company will update its methodology for calculating ARR and NRR starting Q1 FY 2026 to align with the timing of license provisioning [24] Q&A Session Summary Question: Can you talk about the FI win and the size of the deal? - Management noted that the FI win is significant, involving a long-term partnership, but did not quantify the deal size [30][31] Question: NRR was down a couple of points sequentially; can you explain? - Management explained that NRR can be affected by the timing of ARR contributions from prior deals and noted that larger initial deal sizes may impact future expansion [33][35] Question: How should we think about Dell PowerFlex customers compared to traditional Nutanix customers? - Management indicated that Dell PowerFlex targets large customers, and initial wins were achieved quickly, reflecting strong interest [40][41] Question: Can you provide insights on the federal government business? - Management acknowledged longer deal cycles and variability in the U.S. Federal sector but remains optimistic about modernization opportunities [44][45] Question: What is the outlook for enterprise AI maturity? - Management stated that enterprise AI adoption is still in early stages, with expectations for significant growth in the coming years [54][55] Question: How are you managing revenue timing dynamics for larger deals? - Management confirmed that they have visibility into transactions scheduled for FY 2026 and have factored this into their guidance [56][57] Question: Can you elaborate on the impact of average contract duration on revenue? - Management explained that average contract duration can vary and that a slight decline is expected, which may impact revenue [82][84]

Q4 FY2025 Earnings August 27, 2025 2 Safe Harbor Forward Looking Statements This presentation 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. Safe Harbor Non-GAAP Financial Measures and Other Key Performance Measures To supplement our consolidat ...

[Executive Summary](index=1&type=section&id=executive_summary) [Overall Performance Highlights](index=1&type=section&id=overall_performance) Nutanix reported strong financial results for its fourth quarter and fiscal year ended July 31, 2025, achieving high-teens top-line growth, adding over **2,700 new customers**, and demonstrating a good balance of top and bottom-line performance with a **Rule of 40 score of 48** - Delivered high-teens top line growth and added over **2,700 new customers** in fiscal 2025[2](index=2&type=chunk) - Made progress with partnerships, signing new or enhanced agreements with AWS, Pure Storage, NVIDIA, and Google[2](index=2&type=chunk) - Continued to innovate across the cloud platform, including modern applications and AI[2](index=2&type=chunk) - Achieved **18% year-over-year revenue growth** and strong free cash flow generation for fiscal 2025, resulting in a **Rule of 40 score of 48**[2](index=2&type=chunk) [Financial Performance Overview](index=1&type=section&id=financial_performance_overview) [Fourth Quarter Fiscal 2025 Financial Summary](index=1&type=section&id=q4_fy25_financial_summary) Nutanix reported robust financial performance for Q4 FY25, with significant year-over-year growth in revenue, ARR, and non-GAAP operating income, alongside improved gross and operating margins | Metric | Q4 FY'25 | Q4 FY'24 | Y/Y Change | | :--- | :--- | :--- | :--- | | Annual Recurring Revenue (ARR) | $2.22 billion | $1.91 billion | 17% | | Average Contract Duration | 3.2 years | 3.1 years | 0.1 year | | Revenue | $653.3 million | $548.0 million | 19% | | GAAP Gross Margin | 87.2% | 85.2% | 200 bps | | Non-GAAP Gross Margin | 88.3% | 86.9% | 140 bps | | GAAP Operating Expenses | $538.2 million | $479.2 million | 12% | | Non-GAAP Operating Expenses | $457.2 million | $405.5 million | 13% | | GAAP Operating Income (Loss) | $31.2 million | $(12.2) million | $43.4 million | | Non-GAAP Operating Income | $119.5 million | $70.5 million | $49.0 million | | GAAP Operating Margin | 4.8% | (2.2)% | 700 bps | | Non-GAAP Operating Margin | 18.3% | 12.9% | 540 bps | | Net Cash Provided by Operating Activities | $219.5 million | $244.7 million | $(25.2) million | | Free Cash Flow | $207.8 million | $224.3 million | $(16.5) million | [Fiscal Year 2025 Financial Summary](index=1&type=section&id=fy25_financial_summary) For the full fiscal year 2025, Nutanix delivered strong results, including **18% revenue growth**, substantial increases in GAAP and non-GAAP operating income, and significant free cash flow generation | Metric | FY'25 | FY'24 | Y/Y Change | | :--- | :--- | :--- | :--- | | Annual Recurring Revenue (ARR) | $2.22 billion | $1.91 billion | 17% | | Average Contract Duration | 3.1 years | 3.0 years | 0.1 year | | Revenue | $2.54 billion | $2.15 billion | 18% | | GAAP Gross Margin | 86.8% | 84.9% | 190 bps | | Non-GAAP Gross Margin | 88.1% | 86.7% | 140 bps | | GAAP Operating Expenses | $2.03 billion | $1.82 billion | 12% | | Non-GAAP Operating Expenses | $1.70 billion | $1.52 billion | 12% | | GAAP Operating Income | $172.5 million | $7.6 million | $164.9 million | | Non-GAAP Operating Income | $536.1 million | $347.1 million | $189.0 million | | GAAP Operating Margin | 6.8% | 0.4% | 640 bps | | Non-GAAP Operating Margin | 21.1% | 16.2% | 490 bps | | Net Cash Provided by Operating Activities | $821.5 million | $672.9 million | $148.6 million | | Free Cash Flow | $750.2 million | $597.7 million | $152.5 million | [Recent Company Highlights](index=1&type=section&id=recent_company_highlights) [Industry Recognition and Strategic Partnerships](index=2&type=section&id=industry_recognition_and_partnerships) Nutanix received significant industry recognition for its multicloud container platforms and container management solutions, and secured a major long-term contract with a key European banking-IT service provider - Named a Leader in The Forrester Wave™: Multicloud Container Platforms, Q3 2025, following the launch of Nutanix Kubernetes Platform (NKP)[11](index=11&type=chunk) - Recognized as a Challenger in the 2025 Gartner® Magic Quadrant™ for Container Management, marking its first recognition in this category[11](index=11&type=chunk) - Finanz Informatik, a major European banking-IT service provider, signed a long-term strategic collaboration contract with Nutanix[11](index=11&type=chunk) [Share Repurchase Authorization Increase](index=2&type=section&id=share_repurchase_authorization) Nutanix's Board of Directors authorized an additional **$350 million** for the company's existing share repurchase program - Board of Directors authorized an increase of **$350 million** of common stock to the existing share repurchase program[11](index=11&type=chunk) [Financial Outlook](index=2&type=section&id=financial_outlook) [First Quarter Fiscal 2026 Outlook](index=2&type=section&id=q1_fy26_outlook) Nutanix provided guidance for the first quarter of fiscal 2026, projecting revenue between **$670 million** and **$680 million** and a non-GAAP operating margin of **19.5% to 20.5%** | Metric | Range | | :--- | :--- | | Revenue | $670 - $680 million | | Non-GAAP Operating Margin | 19.5% to 20.5% | | Weighted Average Shares Outstanding (Diluted) | Approximately 296 million | [Fiscal Year 2026 Outlook](index=2&type=section&id=fy26_outlook) For the full fiscal year 2026, the company anticipates revenue between **$2.90 billion** and **$2.94 billion**, a non-GAAP operating margin of **21% to 22%**, and free cash flow between **$790 million** and **$830 million** | Metric | Range | | :--- | :--- | | Revenue | $2.90 - $2.94 billion | | Non-GAAP Operating Margin | 21% to 22% | | Free Cash Flow | $790 - $830 million | [Webcast and Conference Call Information](index=2&type=section&id=webcast_and_conference_call_information) [Conference Call and Webcast Details](index=2&type=section&id=call_details) Nutanix held a conference call and live webcast on August 27, 2025, to discuss its financial results, with an archived replay available on its Investor Relations website - Conference call held on August 27, 2025, at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time[6](index=6&type=chunk) - Webcast and archived replay available on the Nutanix Investor Relations website at ir.nutanix.com[6](index=6&type=chunk) [Definitions of Key Metrics](index=2&type=section&id=definitions_of_key_metrics) [Rule of 40](index=2&type=section&id=rule_of_40_definition) The Rule of 40 is a financial metric defined as the sum of the revenue growth rate and free cash flow margin for a given period - Defined as the sum of revenue growth rate and free cash flow margin for the period[7](index=7&type=chunk) [Annual Recurring Revenue (ARR)](index=2&type=section&id=annual_recurring_revenue_definition) ARR is calculated as the sum of the annualized contract value (ACV) for all subscription contracts in effect at the end of a specific period, excluding professional services and hardware. The calculation methodology will be updated starting Q1 FY26 - Defined as the sum of ACV for all subscription contracts in effect as of the end of a specific period[8](index=8&type=chunk) - Excludes all life-of-device contracts, professional services, and hardware[8](index=8&type=chunk) - Methodology for calculating ARR will be updated prospectively beginning with Q1 FY26 to align more closely with license availability timing[8](index=8&type=chunk) [Average Contract Duration](index=2&type=section&id=average_contract_duration_definition) Average Contract Duration represents the dollar-weighted term, calculated on a billings basis, across all subscription contracts and life-of-device contracts, with an assumed **five years** term for life-of-device licenses - Represents the dollar-weighted term, calculated on a billings basis, across all subscription contracts and life-of-device contracts[9](index=9&type=chunk) - Uses an assumed term of **five years** for life-of-device licenses[9](index=9&type=chunk) [Non-GAAP Financial Measures and Other Key Performance Measures](index=2&type=section&id=non_gaap_financial_measures) [Non-GAAP Adjustments and Rationale](index=3&type=section&id=non_gaap_adjustments_and_rationale) Nutanix utilizes non-GAAP financial measures, such as non-GAAP gross margin, operating expenses, operating income, operating margin, and free cash flow, to provide investors with supplemental information by excluding certain expenses like stock-based compensation, acquisition-related costs, and other non-recurring transactions, which may not be indicative of ongoing core business results - Non-GAAP financial measures exclude items such as stock-based compensation, acquisition costs (amortization of acquired intangible assets, income tax impact, other acquisition-related costs), restructuring charges, litigation settlement accruals, debt-related costs (amortization/conversion of debt discount, interest expense, inducement expense), and other non-recurring transactions[12](index=12&type=chunk) - These measures provide meaningful supplemental information regarding performance and liquidity by excluding expenses not indicative of ongoing core business operating results[12](index=12&type=chunk) - Free cash flow is defined as net cash provided by operating activities less purchases of property and equipment[12](index=12&type=chunk) - Forward-looking non-GAAP financial measures for Q1 FY26 and FY26 outlook are not reconciled to GAAP due to the unreasonable effort required to predict certain GAAP impacts[12](index=12&type=chunk) [Forward-Looking Statements](index=3&type=section&id=forward_looking_statements) [Nature and Risks of Forward-Looking Statements](index=4&type=section&id=nature_and_risks) This section highlights that the press release contains forward-looking statements regarding business momentum, innovation, and financial outlooks, which are based on current expectations and are subject to various risks and uncertainties that could cause actual results to differ materially - Statements include those regarding business momentum, continued innovation across the cloud platform (including modern applications and AI), and financial outlooks for Q1 FY26 and full FY26[13](index=13&type=chunk) - Forward-looking statements are not historical facts and depend on future events, involving risks and uncertainties beyond the company's control[14](index=14&type=chunk) - Risks include failures in business plan implementation, market evolution, customer acceptance of new solutions, macroeconomic uncertainty, talent retention, and fluctuations in quarterly operating results[14](index=14&type=chunk) - The company assumes no obligation to update, alter, or revise any forward-looking statements, except as required by law[15](index=15&type=chunk) [About Nutanix](index=4&type=section&id=about_nutanix) [Company Profile](index=4&type=section&id=company_profile) Nutanix is a leading provider of hybrid multicloud computing solutions, offering a secure, unified platform for running applications and AI and managing data. The company serves over **29,000 customers** globally, helping them simplify operations and achieve digital transformation - Nutanix is a hybrid multicloud computing leader[16](index=16&type=chunk) - Offers a secure, unified platform for running applications and AI and managing data anywhere[16](index=16&type=chunk) - Trusted by more than **29,000 customers** worldwide to simplify operations and power hybrid multicloud environments[16](index=16&type=chunk) [Investor and Media Contacts](index=4&type=section&id=investor_and_media_contacts) [Contact Information](index=4&type=section&id=contact_information) Contact details for investor relations and media inquiries are provided for Nutanix - Investor Contact: Richard Valera, ir@nutanix.com[18](index=18&type=chunk) - Media Contact: Jennifer Massaro, pr@nutanix.com[18](index=18&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=consolidated_financial_statements) [Consolidated Balance Sheets](index=5&type=section&id=consolidated_balance_sheets) The unaudited consolidated balance sheets show Nutanix's financial position as of July 31, 2024, and July 31, 2025, indicating a significant increase in total assets and liabilities, with a reduction in total stockholders' deficit | Metric | July 31, 2024 (in thousands) | July 31, 2025 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $655,270 | $769,502 | | Short-term investments | $339,072 | $1,223,234 | | Total current assets | $1,481,294 | $2,589,166 | | Total assets | $2,143,918 | $3,283,194 | | **Liabilities and Stockholders' Deficit** | | | | Total current liabilities | $1,244,341 | $1,413,541 | | Deferred revenue—non-current | $918,163 | $1,058,731 | | Convertible senior notes, net | $570,073 | $1,343,818 | | Total liabilities | $2,872,066 | $3,977,714 | | Total stockholders' deficit | $(728,148) | $(694,520) | [Consolidated Statements of Operations](index=5&type=section&id=consolidated_statements_of_operations) The unaudited consolidated statements of operations show Nutanix's transition from a net loss in FY24 to a significant net income in FY25, driven by strong revenue growth and improved operating income, despite increased operating expenses | Metric | Q4 FY'24 (in thousands) | Q4 FY'25 (in thousands) | FY'24 (in thousands) | FY'25 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Product revenue | $265,901 | $339,789 | $1,067,948 | $1,341,374 | | Support, entitlements and other services revenue | $282,051 | $313,478 | $1,080,868 | $1,196,553 | | Total revenue | $547,952 | $653,267 | $2,148,816 | $2,537,927 | | Gross profit | $466,974 | $569,434 | $1,824,704 | $2,203,145 | | 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 | | Net (loss) income | $(126,101) | $38,650 | $(124,775) | $188,366 | | Net (loss) income per share, diluted | $(0.51) | $0.13 | $(0.51) | $0.65 | | Category | Q4 FY'24 (in thousands) | Q4 FY'25 (in thousands) | FY'24 (in thousands) | FY'25 (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** | | Category | Q4 FY'24 (in thousands) | Q4 FY'25 (in thousands) | FY'24 (in thousands) | FY'25 (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** | [Consolidated Statements of Cash Flows](index=6&type=section&id=consolidated_statements_of_cash_flows) The unaudited consolidated statements of cash flows indicate a substantial increase in net cash provided by operating activities in FY25, while investing activities shifted from a net inflow to a significant net outflow, and financing activities moved from a net outflow to a net inflow | Metric | FY'24 (in thousands) | FY'25 (in thousands) | | :--- | :--- | :--- | | Net (loss) income | $(124,775) | $188,366 | | Net cash provided by operating activities | $672,931 | $821,456 | | Net cash provided by (used in) investing activities | $529,589 | $(951,687) | | 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 and cash equivalents—end of period | $655,270 | $769,502 | [Supplemental Financial Information](index=7&type=section&id=supplemental_financial_information) [Disaggregation of Revenue](index=7&type=section&id=disaggregation_of_revenue) Nutanix disaggregates its revenue into subscription, professional services, and other non-subscription product categories, with subscription revenue being the dominant and fastest-growing component | Revenue Type | Q4 FY'24 (in thousands) | Q4 FY'25 (in thousands) | FY'24 (in thousands) | FY'25 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | 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 includes software entitlement subscriptions, support subscriptions, subscription software licenses, and cloud-based SaaS offerings, recognized ratably or upfront[29](index=29&type=chunk)[32](index=32&type=chunk) - Other non-subscription product revenue includes non-portable software and hardware, generally recognized upon transfer of control to the customer[31](index=31&type=chunk)[39](index=39&type=chunk) [Reconciliation of Revenue to Billings](index=8&type=section&id=reconciliation_of_revenue_to_billings) This reconciliation illustrates the relationship between reported revenue and total billings by adjusting for changes in deferred revenue, showing an increase in total billings for both the quarter and the fiscal year | Metric | Q4 FY'24 (in thousands) | Q4 FY'25 (in thousands) | FY'24 (in thousands) | FY'25 (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 (ARR)](index=8&type=section&id=annual_recurring_revenue_supplemental) Nutanix's Annual Recurring Revenue (ARR) reached **$2.22 billion** as of July 31, 2025, reflecting a **17% year-over-year increase** | Metric | July 31, 2024 (in thousands) | July 31, 2025 (in thousands) | | :--- | :--- | :--- | | Annual Recurring Revenue (ARR) | $1,907,982 | $2,223,197 | - ARR increased by **17% year-over-year**[3](index=3&type=chunk) [Reconciliation of GAAP to Non-GAAP Profit Measures](index=8&type=section&id=reconciliation_of_gaap_to_non_gaap_profit_measures) This section provides detailed reconciliations of GAAP to non-GAAP profit measures for Q4 and FY25, highlighting adjustments for stock-based compensation, amortization of intangible assets, legal fees, and the income tax effect, which now uses a long-term projected non-GAAP tax rate of **20%** retrospectively applied | Metric | GAAP Q4 FY'25 (in thousands) | Non-GAAP Adjustments (in thousands) | Non-GAAP Q4 FY'25 (in thousands) | | :--- | :--- | :--- | :--- | | Gross profit | $569,434 | $7,213 (SBC) + $105 (Amort.) | $576,752 | | Gross margin | 87.2% | 1.1% (SBC) | 88.3% | | Income from operations | $31,208 | $85,171 (SBC) + $193 (Amort.) + $2,971 (Legal) | $119,543 | | Operating margin | 4.8% | 13.0% (SBC) + 0.5% (Legal) | 18.3% | | Net income | $38,650 | $85,171 (SBC) + $193 (Amort.) + $2,971 (Legal) - $100 (Other) + $3,008 (Debt) - $20,784 (Tax) | $109,109 | | Net income per share, diluted | $0.13 | | $0.37 | | Metric | GAAP FY'25 (in thousands) | Non-GAAP Adjustments (in thousands) | Non-GAAP FY'25 (in thousands) | | :--- | :--- | :--- | :--- | | Gross profit | $2,203,145 | $30,406 (SBC) + $2,185 (Amort.) | $2,235,736 | | Gross margin | 86.8% | 1.2% (SBC) + 0.1% (Amort.) | 88.1% | | Income from operations | $172,541 | $351,590 (SBC) + $2,538 (Amort.) + $9,451 (Legal) | $536,120 | | Operating margin | 6.8% | 13.8% (SBC) + 0.1% (Amort.) + 0.4% (Legal) | 21.1% | | Net income | $188,366 | $351,590 (SBC) + $2,538 (Amort.) + $9,451 (Legal) - $310 (Other) + $11,347 (Inducement) + $8,377 (Debt) - $95,646 (Tax) | $475,713 | | Net income per share, diluted | $0.65 | | $1.62 | - Beginning in Q3 FY25, a long-term projected non-GAAP tax rate of **20%** was adopted for non-GAAP net income and EPS, applied retrospectively to enhance consistency and comparability[40](index=40&type=chunk)[42](index=42&type=chunk) [Reconciliation of GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow](index=11&type=section&id=reconciliation_of_gaap_net_cash_to_non_gaap_free_cash_flow) This reconciliation details the calculation of non-GAAP free cash flow by subtracting purchases of property and equipment from GAAP net cash provided by operating activities, showing a significant increase in free cash flow for FY25 | Metric | Q4 FY'24 (in thousands) | Q4 FY'25 (in thousands) | FY'24 (in thousands) | FY'25 (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** |

Core Insights - Nutanix and Finanz Informatik (FI) have entered into a strategic collaboration, marking a significant customer deal for Nutanix in Germany [1][3] - FI will migrate its Windows and Linux workloads to the Nutanix platform over the next two years, focusing on a hyperconverged architecture [1][2] - The partnership is built on trust and aims to enhance security, availability, and cost-effectiveness of IT solutions [3] Company Overview - Nutanix is a leader in hybrid multicloud computing, providing a secure platform for applications and data management, serving over 29,000 customers globally [4] - Finanz Informatik, based in Frankfurt, is a major IT service provider for the German Savings Banks Finance Group, generating approximately €2.6 billion in revenue in 2024 [2][5][7] - FI services 114 million accounts and processes 205 billion technical transactions annually, employing over 5,000 people [7] Strategic Importance - The collaboration is seen as a strong market signal, emphasizing the value of trust and partnership in long-term business relationships [3] - The migration to Nutanix's AHV hypervisor is part of FI's strategy to modernize its IT infrastructure [2][3]