Core Insights - Pure Storage, Inc. (PSTG) has partnered with TierPoint to launch an Imaging Storage-as-a-Service solution tailored for the healthcare sector, addressing challenges such as rising storage costs, performance limitations, and stringent security requirements [1][10] Group 1: Product Offering - The new solution integrates Pure Storage's high-performance infrastructure with TierPoint's HIPAA-compliant data centers, providing a scalable, cloud-enabled storage service that supports AI-driven imaging workloads and long-term data retention [2][10] - The per-study billing model enhances cost predictability for healthcare organizations while improving image retrieval speed and data protection for critical assets [2][10] Group 2: Market Impact - This service allows healthcare providers to align storage costs with patient care delivery models, enabling them to scale operations efficiently and focus on improving patient outcomes [3][4] - The collaboration aims to enhance diagnostic capabilities, boost operational efficiency, and support better patient outcomes in healthcare IT [4] Group 3: Technological Advancements - Pure Storage continues to innovate in enterprise storage, particularly for modern data workloads such as AI and high-performance computing, with the release of Portworx Enterprise 3.3 enhancing its Kubernetes-native storage capabilities [5] - The rollout of FlashBlade//EXA and the adoption of the //E family, which support AI and HPC workloads, indicate strong growth potential, with Storage-as-a-Service TCV sales increasing by 70% in the fiscal first quarter [6] Group 4: Strategic Partnerships - Pure Storage has partnered with Nutanix to provide a solution for managing virtual workloads, enhancing operational efficiency for IT teams in hybrid cloud environments [7] - The firm has also expanded its partnership with Rubrik to improve protection for unstructured data, enhancing threat detection and recovery capabilities in a ransomware-prone environment [8]

ST. LOUIS, June 23, 2025 (GLOBE NEWSWIRE) -- TierPoint, a leading provider of secure, connected IT infrastructure solutions, today announced the launch of a new Imaging Storage-as-a-Service solution utilizing Pure Storage technology. Developed specifically for healthcare organizations, the service helps address the challenges of managing the extensive demands of medical imaging data, including storage costs, performance constraints, and security risks. "We are proud to collaborate with TierPoint to bring a ...

Financial Data and Key Metrics Changes - The meeting discussed the voting results on three proposals, but specific financial data and key metrics changes were not provided in the documents [8][10]. Business Line Data and Key Metrics Changes - No specific data or key metrics changes for various business lines were mentioned in the documents [8][10]. Market Data and Key Metrics Changes - The documents did not include any specific market data or key metrics changes [8][10]. Company Strategy and Development Direction and Industry Competition - The company is focused on maintaining strong stockholder engagement and has proposed the election of directors and the ratification of independent auditors, indicating a commitment to governance and oversight [8][10]. Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting, as no questions were received from stockholders [12]. Other Important Information - The meeting was conducted via live webcast to ensure broad stockholder access and participation, and the rules of conduct were outlined for orderly proceedings [3][4]. Summary of Q&A Session Question: Were there any questions from stockholders? - No questions were received during the Q&A session, leading to its conclusion [12].

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Presents unaudited condensed consolidated financial statements for Q1 FY2026, covering balance sheets, operations, comprehensive loss, equity, and cash flows [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$3.81 billion** from **$3.96 billion** as of May 4, 2025, with liabilities and stockholders' equity also declining Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | End of Fiscal 2025 | End of Q1 Fiscal 2026 | | :--- | :--- | :--- | | **Total current assets** | $2,567,279 | $2,400,227 | | **Total assets** | **$3,963,942** | **$3,810,365** | | **Total current liabilities** | $1,596,541 | $1,494,511 | | **Total liabilities** | **$2,657,467** | **$2,566,310** | | **Total stockholders' equity** | **$1,306,475** | **$1,244,055** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 FY2026 total revenue grew **12.3%** to **$778.5 million**, driven by subscription services, with net loss improving to **$14.0 million** Q1 Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 Fiscal 2025 | Q1 Fiscal 2026 | Change (%) | | :--- | :--- | :--- | :--- | | Product Revenue | $347,384 | $372,144 | 7.1% | | Subscription Services Revenue | $346,095 | $406,341 | 17.4% | | **Total Revenue** | **$693,479** | **$778,485** | **12.3%** | | Gross Profit | $495,706 | $536,153 | 8.2% | | Loss from Operations | $(41,774) | $(31,171) | (25.4%) | | **Net Loss** | **$(35,009)** | **$(13,995)** | **(60.0%)** | | Net Loss Per Share | $(0.11) | $(0.04) | (63.6%) | [Condensed Consolidated Statements of Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Comprehensive loss for Q1 FY2026 significantly improved to **$13.1 million** from **$36.8 million**, driven by a smaller net loss and unrealized gains Comprehensive Loss Summary (in thousands) | Metric | Q1 Fiscal 2025 | Q1 Fiscal 2026 | | :--- | :--- | :--- | | Net loss | $(35,009) | $(13,995) | | Change in unrealized net gains (losses) on available-for-sale securities | $(1,802) | $877 | | **Comprehensive loss** | **$(36,811)** | **$(13,118)** | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased to **$1.24 billion** from **$1.31 billion**, primarily due to **$119.9 million** in common stock repurchases and net loss - The company repurchased and retired approximately **2.5 million shares** of its common stock for an aggregate price of **$119.9 million** during the first quarter of fiscal 2026[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to **$283.9 million**, while investing activities used **$111.8 million**, and financing activities shifted to a **$149.8 million** outflow Cash Flow Summary (in thousands) | Activity | Q1 Fiscal 2025 | Q1 Fiscal 2026 | | :--- | :--- | :--- | | Net cash provided by operating activities | $221,500 | $283,936 | | Net cash used in investing activities | $(48,395) | $(111,782) | | Net cash provided by (used in) financing activities | $24,974 | $(149,762) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, financial components, and significant events, including a new **$500 million** unsecured credit facility in June 2025 - Total remaining performance obligations (RPO) were **$2.7 billion** at the end of Q1 FY2026, with approximately **48%** expected to be recognized as revenue over the next 12 months[69](index=69&type=chunk) - In June 2025, the company entered into a new five-year, **$500 million** senior unsecured revolving credit facility, terminating and repaying the previous **$300 million** facility[131](index=131&type=chunk) - During Q1 FY2026, the company repurchased and retired approximately **2.5 million shares** of common stock for **$119.9 million**. At the end of the quarter, **$151.6 million** remained available for future repurchases[98](index=98&type=chunk) - In February 2024, the company initiated a workforce realignment plan, reducing headcount by nearly **250 employees** and incurring restructuring costs of **$27.9 million**, of which **$9.9 million** was recognized in Q1 FY2025[93](index=93&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 FY2026 financial results, noting a **12%** revenue increase to **$778.5 million**, improved net loss, and shifts in gross margins Revenue Performance (in thousands) | Revenue Type | Q1 Fiscal 2025 | Q1 Fiscal 2026 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Product revenue | $347,384 | $372,144 | $24,760 | 7% | | Subscription services revenue | $346,095 | $406,341 | $60,246 | 17% | | **Total revenue** | **$693,479** | **$778,485** | **$85,006** | **12%** | - Subscription Annual Recurring Revenue (ARR) grew **18%** year-over-year to **$1.71 billion** at the end of Q1 FY2026[158](index=158&type=chunk) - Total Remaining Performance Obligations (RPO) grew **17%** year-over-year to **$2.7 billion** at the end of Q1 FY2026[160](index=160&type=chunk) Gross Margin Performance | Margin Type | Q1 Fiscal 2025 | Q1 Fiscal 2026 | | :--- | :--- | :--- | | Product gross margin | 71% | 62% | | Subscription services gross margin | 72% | 75% | | **Total gross margin** | **71%** | **69%** | - Net cash provided by operating activities increased to **$283.9 million** in Q1 FY2026, up from **$221.5 million** in Q1 FY2025, driven by lower net loss and improved working capital management[183](index=183&type=chunk)[184](index=184&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate fluctuations on its **$1.6 billion** in marketable securities and foreign currency volatility, without using derivatives - **Interest Rate Risk:** A hypothetical **1.00%** (**100 basis points**) increase in interest rates would result in a decrease of approximately **$8.8 million** in the fair value of the company's marketable securities[198](index=198&type=chunk) - **Foreign Currency Risk:** A hypothetical adverse **10%** change in foreign exchange rates would result in an adverse impact of approximately **$6.8 million** on income before income taxes[200](index=200&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of May 4, 2025, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the first quarter of fiscal 2026[201](index=201&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[202](index=202&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings deemed to have a material adverse effect on its business or financial position - The company is not presently party to any legal proceedings that, in the opinion of management, would have a material adverse effect on its business[205](index=205&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from macroeconomic conditions, intense competition, supply chain reliance, subscription model transition, security breaches, and new product adoption - The business is subject to risks from uncertain macroeconomic conditions, tariffs, and trade policies which can affect customer demand and costs[208](index=208&type=chunk)[209](index=209&type=chunk) - The company faces intense competition from established companies and cloud providers, which may have greater resources, brand recognition, and existing customer relationships[218](index=218&type=chunk)[220](index=220&type=chunk) - Significant resources are being devoted to developing solutions for hyperscalers, including a design win with Meta, but there is no assurance this will lead to successful sales[214](index=214&type=chunk)[215](index=215&type=chunk) - Reliance on a limited number of suppliers, including single-source suppliers, for key components exposes the company to risks of supply disruption, price volatility, and quality control issues[223](index=223&type=chunk) - A compromise of security measures could lead to data loss, reputational harm, loss of customers, and significant liabilities[254](index=254&type=chunk)[255](index=255&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 FY2026, the company repurchased **2.5 million shares** for **$119.9 million**, with **$151.6 million** remaining for future repurchases Q1 FY2026 Stock Repurchase Activity (in thousands, except price) | Period | Average Price Paid per Share | Total Shares Repurchased | Value of Shares Remaining for Repurchase | | :--- | :--- | :--- | :--- | | Feb 3 - Mar 2, 2025 | $63.35 | 434 | $244,013 | | Mar 3 - Mar 30, 2025 | $49.77 | 954 | $196,516 | | Mar 31 - May 4, 2025 | $40.66 | 1,104 | $151,642 | [Item 3. Defaults Upon Senior Securities](index=62&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities for the period - No defaults upon senior securities were reported for the period[302](index=302&type=chunk) [Item 4. Mine Safety Disclosures](index=62&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company reported no mine safety disclosures for the period - No mine safety disclosures were reported for the period[303](index=303&type=chunk) [Item 5. Other Information](index=62&type=section&id=Item%205.%20Other%20Information) On June 10, 2025, the company entered a new **$500 million** senior unsecured revolving credit facility, and no directors or officers adopted or terminated Rule 10b5-1 trading plans - On June 10, 2025, the company entered into a new **$500 million** senior unsecured revolving credit facility, replacing its existing one. The new agreement matures on June 10, 2030[304](index=304&type=chunk)[305](index=305&type=chunk) - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the first quarter of fiscal 2026[309](index=309&type=chunk) [Item 6. Exhibits](index=64&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the 10-Q report, including the new Credit Agreement, CEO/CFO certifications, and XBRL data files - Key exhibits filed with this report include the new Credit Agreement (Exhibit 10.12) and CEO/CFO certifications (Exhibits 31.1, 31.2, 32.1)[311](index=311&type=chunk)

Summary of Pure Storage (PSTG) 2025 Conference Company Overview - **Company**: Pure Storage (PSTG) - **Event**: BFA's Global Tech Conference - **Date**: June 03, 2025 Key Industry Insights - **Industry**: Enterprise Storage - **Market Size**: The enterprise storage market is approximately $50 billion, with Pure Storage currently holding over $3 billion in revenue, indicating a significant growth opportunity of around $47 billion to $57 billion [12][13]. Core Points and Arguments 1. **Macro Environment Uncertainty**: The macroeconomic and geopolitical landscape is highly uncertain, affecting customer conversations and projections for the second half of the year [3][4]. 2. **AI's Impact on Storage**: AI is expected to transform the storage industry, with a shift in focus from software to data. Pure Storage's new product, FlashBlade Exa, is designed for high-performance environments, particularly for AI applications [5][6][10]. 3. **Enterprise vs. Hyperscale Opportunities**: While AI-related storage is currently a small segment (estimated at $2 billion), it is expected to grow. However, the larger opportunity lies in the enterprise environment, which may not require specialized storage [12][13]. 4. **Hyperscale Market Potential**: The top five hyperscalers account for 60-70% of the total hard disk market, representing a significant opportunity for Pure Storage. The company has secured a design win with Meta, aiming to ship 1-2 exabytes in the near term [15][16][17]. 5. **Total Cost of Ownership (TCO)**: Pure Storage emphasizes its competitive TCO compared to hard disk drives (HDDs), highlighting advantages in density, performance, and lower failure rates [25][32][34]. 6. **NAND Supply Chain Management**: The company is working closely with major suppliers (Micron, Kioxia, Hynix) to ensure adequate NAND supply for future growth, despite the ramp-up period required [36][37]. 7. **Investment Strategy**: Pure Storage is currently in an investment phase, focusing on R&D and market penetration, which may compress margins temporarily. The company aims to resume margin expansion in the following year [41][42]. 8. **Tariff Uncertainty**: Ongoing tariff changes create additional uncertainty in the market, but Pure Storage has a flexible supply chain to manage potential impacts [44][45]. Additional Important Insights - **Product Pricing Strategy**: The lower gross margins on the E Series product are part of a strategy to penetrate lower-tier storage markets aggressively [51][52]. - **Future Growth Confidence**: The introduction of PureFusion allows customers to manage their storage as a cloud, potentially creating a network effect in enterprise storage [56]. This summary encapsulates the key points discussed during the conference, providing insights into Pure Storage's strategic positioning and market opportunities.

Summary of Pure Storage Conference Call Company Overview - **Company**: Pure Storage - **Industry**: Data Storage Solutions Key Opportunities and Strategic Focus - **Enterprise Growth**: Pure Storage sees significant growth potential in the enterprise sector, focusing on expanding its portfolio and addressing a full suite of enterprise storage needs [4][5] - **AI Integration**: The company is positioned as a leader in providing a comprehensive suite of AI storage solutions, catering to both small and large-scale environments [5] - **Hyperscaler Engagement**: Pure Storage has been actively engaging with hyperscalers, transitioning from initial discussions to design wins and production [5][6] Hyperscaler Market Insights - **Infrastructure Design**: Hyperscalers design their infrastructure stacks holistically, integrating compute, networking, storage, and software, which differs from traditional enterprise environments [6][7] - **Flash Adoption Lag**: Historically, hyperscalers have lagged in adopting flash technology compared to enterprises, but are now recognizing the limitations of hard disk drives and the need for flash solutions [8][9] - **Transition to Flash**: The transition from hard disk drives to flash is driven by the need for improved performance, capacity, and efficiency, particularly in light of power and space constraints [10][11] Design Win with Meta - **Collaboration with Meta**: Pure Storage has been working with Meta for several years, culminating in a design win that emphasizes cost savings, power efficiency, and seamless integration into Meta's existing technology stack [12][14][17] - **Technology Licensing Model**: The business model involves technology licensing and royalties rather than direct hardware sales, allowing Meta to leverage its supply chain [24][25] Competitive Landscape - **Limited Competition**: Pure Storage faces minimal competition from third-party vendors, primarily competing against hyperscalers' internal development efforts and existing technologies [28][46] - **Value Proposition**: The value of Pure's solutions is framed around total cost of ownership (TCO) compared to SSD and hard disk drive systems, emphasizing simplicity, reliability, and efficiency [29][31] Storage as a Service (STaaS) - **Growth of STaaS**: Pure Storage has pioneered storage as a service models, which have gained traction due to their flexibility and adaptability to changing customer needs [34][39] - **Outcome-Based Sales**: The approach focuses on SLA-based sales rather than traditional product sales, allowing for ongoing adjustments to meet customer requirements [35][38] Enterprise Storage Market Outlook - **Market Growth**: The enterprise storage market is expected to grow at low to mid-single-digit rates over the next few years, with Pure Storage aiming to capture a larger market share [41][42] - **Strategic Positioning**: The company is well-positioned to engage in strategic conversations with enterprises, offering a comprehensive solution that spans various storage needs [43] Additional Insights - **Storage Tiers**: Hyperscalers design storage solutions across multiple tiers, from high-performance to archival storage, and Pure's technology aims to provide a unified architecture for these diverse needs [50][52] - **Operational Margin Accretion**: The licensing model is expected to be accretive to operating margins, with potential improvements in gross margins as well [32][33]

Core Viewpoint - The investment outlook for Pure Storage (NYSE: PSTG) remains positive due to strong demand and attractive valuation, with no signs of growth slowdown [1] Company Analysis - Pure Storage continues to demonstrate robust growth, indicating a solid demand for its products and services [1] - The company is positioned well for medium to long-term investments, focusing on fundamental strengths and sustainable competitive advantages [1] Investment Strategy - The investment approach emphasizes bottom-up analysis to identify companies with strong fundamentals and growth potential [1] - The strategy includes a mix of long-term investments and short-term shorts to uncover alpha opportunities [1]

Group 1 - The Q1 earnings season has been characterized by significant volatility, influenced by unstable stock markets and fluctuating headlines regarding tariffs [1] Group 2 - Gary Alexander has extensive experience in covering technology companies and has been a contributor to Seeking Alpha since 2017, providing insights into industry trends [2]

Core Insights - Pure Storage (PSTG) reported revenue of $778.49 million for the quarter ended April 2025, reflecting a year-over-year increase of 12.3% [1] - The earnings per share (EPS) for the quarter was $0.29, down from $0.32 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $771.15 million, resulting in a surprise of +0.95% [1] - The company achieved an EPS surprise of +16.00%, with the consensus EPS estimate being $0.25 [1] Financial Performance Metrics - Product revenue was $372.14 million, slightly above the nine-analyst average estimate of $370.97 million, representing a year-over-year change of +7.1% [4] - Subscription services revenue reached $406.34 million, exceeding the average estimate of $391.59 million, with a year-over-year increase of +17.4% [4] - Non-GAAP Gross profit from subscription services was $313.60 million, surpassing the average estimate of $297.86 million [4] - Non-GAAP Gross profit from product sales was $238.11 million, slightly below the average estimate of $241.54 million [4] Stock Performance - Shares of Pure Storage have returned +22% over the past month, outperforming the Zacks S&P 500 composite's +7.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Pure Storage (PSTG) reported quarterly earnings of $0.29 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, but down from $0.32 per share a year ago, representing a 16% earnings surprise [1] - The company achieved revenues of $778.49 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 0.95% and increasing from $693.48 million year-over-year [2] - Pure Storage has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.39 on revenues of $844.54 million, and for the current fiscal year, it is $1.72 on revenues of $3.51 billion [7] - The estimate revisions trend for Pure Storage is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Computer-Storage Devices industry, to which Pure Storage belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Pure Storage's stock may be influenced by the overall outlook for the industry [8]