Financial Performance - As of March 31, 2025, the company reported a net loss of $738,555, which included interest expense of $285,197 and general and administrative expenses of $270,256[176] - For the three months ended March 31, 2024, the company had a net loss of $375,307, driven by operating expenses of $603,471 and interest expense of $33,395[177] - The company generated non-operating income of $32,099 from interest on cash held in the Trust Account for the three months ended March 31, 2025[176] IPO and Fundraising - The company completed its IPO on December 9, 2021, raising gross proceeds of $100,000,000 from the sale of 10,000,000 units at $10.00 per unit[178] - The company raised a total of $15,000,000 from the issuance of 1,500,000 units at a price of $10.00 per unit during the IPO[179] - Offering costs for the IPO and the exercise of the underwriters' Over-allotment Option amounted to $6,887,896, including $2,300,000 in underwriting fees[180] - The company has raised an aggregate of $3,479,911 from PIPE Investors at a purchase price of $10.00 per share, excluding a terminated $40 million subscription[167] Business Combination and Compliance - The company has extended the deadline to complete its initial business combination to June 9, 2025, having done so six times under its amended certificate of incorporation[164] - The company entered into a Merger Agreement on January 30, 2024, with Alps Global Holding Pubco, which will result in Alps Holdco becoming a wholly-owned subsidiary of PubCo[165] - The company received a delisting notice from Nasdaq on December 10, 2024, due to non-compliance with the requirement to complete a business combination within 36 months of its IPO[172] - Following the delisting, the company's securities have been quoted on the OTC Pink market since December 17, 2024[173] - The Company has until June 9, 2025, to complete the initial business combination, with substantial doubt raised about its ability to continue as a going concern if not completed[212] Debt and Liabilities - As of March 31, 2025, the company had borrowed a total of $3,844,923 under various promissory notes, which includes $16,570 in additional interest expense[206] - The company entered into multiple promissory notes with Public Gold Marketing Sdn Bhd, totaling $2,500,000 for working capital and extension fees, all repayable upon consummation of an initial business combination[190][191][192][193][194][196][197][198][199][201][202][203] - The company recorded a gain on modification of terms of promissory notes and advances from affiliates amounting to $880,656[206] - As of March 31, 2025, the company had $334,885 in convertible debt and $390,000 in advances reflected in its consolidated balance sheets[208] - The net amount of the convertible notes related to parties, after accounting for the debt discount, was $4,179,808 as of March 31, 2025[219] - The aggregate principal amount owed to related parties in connection with promissory notes was $4,507,595, reflecting an increase from $4,445,458 as of December 31, 2024[219] Cash Management - As of March 31, 2025, cash held in the Trust Account was $3,561,690, with interest income of $32,099 for the three months ended March 31, 2025[186] - The company intends to use substantially all funds in the Trust Account to complete its business combination[187] - The company has instructed to liquidate U.S. government securities held in the Trust Account and hold all funds in cash until the consummation of the initial business combination or liquidation[182] - The company plans to repay working capital loans from the proceeds of the Trust Account if the initial business combination is completed[189] Reporting and Compliance - The Company intends to evaluate the benefits of relying on reduced reporting requirements under the JOBS Act, which may exempt it from certain disclosures for up to five years following the IPO[222] - The Company adopted ASU 2023-07 for the year ended December 31, 2024, which requires enhanced segment reporting disclosures[227] - The Company has no long-term debt, capital lease obligations, operating lease obligations, or long-term liabilities as of March 31, 2025[214] - The Company has not entered into any off-balance sheet financing arrangements or established any special purpose entities as of March 31, 2025[213] Underwriting and Fees - The underwriters are entitled to a deferred underwriting discount of $0.35 per unit, totaling $4,025,000, contingent upon the completion of an initial business combination[216] - The promissory note issued to a third party was non-interest bearing, with an aggregate amount owed of $30,000 as of March 31, 2025[220]

Financial Performance - Total revenue for the three months ended April 30, 2025, was $293.5 million, a 22% increase from $240.7 million in the same period of 2024[18]. - Subscription and support revenue reached $181.8 million, up 32% from $138.0 million year-over-year[18]. - Net income for the three months ended April 30, 2025, was $46.0 million, compared to a net loss of $5.5 million in the same period of 2024[20]. - Gross profit for the nine months ended April 30, 2025, was $520.2 million, compared to $396.9 million for the same period in 2024, reflecting a 31% increase[18]. - Comprehensive income for the three months ended April 30, 2025, was $52.8 million, compared to a loss of $7.6 million in the same period of 2024[20]. - Net income for the nine months ended April 30, 2025, was $17.853 million, a significant improvement from a net loss of $22.862 million in the same period of 2024[26]. - Cash flows from operating activities provided $56.036 million, compared to only $1.971 million in the prior year[26]. - Total revenue for the nine months ended April 30, 2025, reached $845.9 million, a 23% increase compared to $689.0 million for the same period in 2024[46]. - For the three months ended April 30, 2025, the company reported a net income of $45.991 million, compared to a net loss of $5.478 million for the same period in 2024[77]. - Basic earnings per share for the three months ended April 30, 2025, was $0.55, while for the same period in 2024, it was a loss of $0.07 per share[77]. Revenue Breakdown - Subscription revenue increased to $166.5 million for the three months ended April 30, 2025, up 38% from $120.4 million in the prior year[45]. - Total revenue from the United States for the three months ended April 30, 2025, was $191.7 million, up from $163.4 million in the same period of 2024[45]. - Total revenue from the Americas for the three months ended April 30, 2025, was $225.8 million, compared to $190.5 million in the prior year, reflecting a growth of 18%[45]. - Services revenue increased by $8.0 million (17%) to $54.5 million for the three months ended April 30, 2025, compared to $46.5 million in the same period of 2024[161]. - Subscription revenue for the nine months ended April 30, 2025, increased by $137.8 million (40%) to $480.9 million compared to $343.2 million in the same period of 2024[156]. - Support revenue decreased by $2.2 million (12%) to $15.4 million for the three months ended April 30, 2025, compared to $17.5 million in the same period of 2024[157]. - Term license revenue increased by $2.1 million (4%) during the three months ended April 30, 2025, compared to the same period a year ago[159]. Expenses and Costs - Operating expenses for the three months ended April 30, 2025, were $178.2 million, an increase from $158.9 million in the same period of 2024[18]. - Total cost of revenue increased by $12.4 million (13%) to $110.8 million for the three months ended April 30, 2025, compared to the same period in 2024[165]. - Subscription and support cost increased by $6.2 million (12%) to $57.4 million for the three months ended April 30, 2025, primarily due to cloud infrastructure expenses[165]. - Research and development expenses increased by $18.0 million (9%) during the nine months ended April 30, 2025, compared to the same period in 2024, primarily due to personnel costs rising by $15.3 million[184]. - Sales and marketing expenses rose by $20.4 million (14%) during the nine months ended April 30, 2025, driven by personnel costs increasing by $15.4 million[188]. - General and administrative expenses increased by $10.5 million (9%) during the nine months ended April 30, 2025, mainly due to professional services costs rising by $3.9 million[192]. Assets and Liabilities - Total current assets increased to $1.3 billion as of April 30, 2025, from $1.3 billion as of July 31, 2024[16]. - Long-term investments rose significantly to $323.3 million from $125.9 million year-over-year[16]. - Total liabilities decreased to $1.1 billion as of April 30, 2025, from $883.6 million as of July 31, 2024[16]. - Cash and cash equivalents at the end of the period totaled $511.512 million, down from $549.184 million at the beginning of the period[27]. - Cash, cash equivalents, and investments totaled $1.24 billion as of April 30, 2025, an increase from $1.13 billion on July 31, 2024[213]. - Working capital improved to $907.1 million as of April 30, 2025, compared to $457.9 million on July 31, 2024[213]. Strategic Investments and Acquisitions - The company made strategic investments, acquiring businesses for a net cash outflow of $26.724 million[26]. - The Company completed the acquisition of Quantee for approximately $27.9 million, with $21.4 million attributed to goodwill[69][72]. - The carrying amount of goodwill increased from $372.2 million as of July 31, 2024, to $393.6 million as of April 30, 2025[73]. Stock and Financing - The company issued $690 million in 1.25% Convertible Senior Notes due 2029 in October 2024, with a fair value of $760.0 million as of April 30, 2025[61][62]. - The company had a total principal amount of $690 million in 2029 Convertible Senior Notes as of April 30, 2025, with an effective interest rate of 1.8%[79]. - The company recognized total interest expense of $3.494 million for the three months ended April 30, 2025, compared to $1.684 million for the same period in 2024[79]. - The Company retired $220.9 million aggregate principal amount of the 2025 Convertible Senior Notes in cash for $354.0 million during the nine months ended April 30, 2025[102]. Future Outlook - The company anticipates that subscription arrangements will constitute a significant majority of annual new sales going forward, indicating a strategic shift towards cloud-based offerings[124]. - The company continues to invest in product development and cloud operations to enhance existing products and introduce new solutions, which is critical for maintaining competitive advantage[125]. - The company anticipates that subscriptions will continue to represent a significant majority of new arrangements, impacting future revenue growth due to the ratable recognition of subscription revenue[155]. - The company expects research and development expenses to increase in absolute dollars but decrease as a percentage of revenue as hiring slows[185]. - The company anticipates sales and marketing expenses to continue increasing in absolute dollars but decrease as a percentage of revenue due to slowed hiring[189]. - General and administrative expenses are expected to rise in absolute dollars due to inflation and strategic investments but decrease as a percentage of revenue as hiring slows[194].

Revenue and Growth - Revenue for the three months ended April 30, 2025, was $356.6 million, representing a 6% year-over-year increase[142]. - Annualized renewal run-rate (ARR) as of April 30, 2025, was $1,692.7 million, up 12% year-over-year, with 24% of this growth attributed to new customers[142][146]. - Total revenue for the three months ended April 30, 2025, was $356.6 million, an increase of $21.5 million or 6% compared to $335.1 million in the same period of 2024[167]. - Subscription services revenue increased by $32.2 million or 17%, reaching $217.3 million, while licenses revenue decreased by $11.8 million or 8% to $128.3 million[167]. - The company attributed 43% of total revenue growth to new customers and 57% to existing customers[167]. - The increase in subscription services revenue was driven by both prior period sales and new sales in the current period[167]. Financial Performance - Gross margin for the three months ended April 30, 2025, was 82%, slightly down from 83% in the same period of 2024[142]. - Operating loss improved to $(16.4) million for the three months ended April 30, 2025, compared to $(49.5) million in the same period of 2024[166]. - Net loss for the period was $(22.6) million, an improvement from $(28.7) million in the prior year[166]. - Interest income decreased by $1.2 million, or 9%, to $12.6 million for the three months ended April 30, 2025, compared to $13.8 million in the same period of 2024[173]. - Provision for income taxes decreased by $1.0 million, or 25%, to $2.8 million for the three months ended April 30, 2025, compared to $3.8 million in the same period of 2024[175]. Cash Flow and Liquidity - Cash flow from operations for the three months ended April 30, 2025, was $119.0 million, compared to $100.0 million for the same period in 2024[142]. - Cash and cash equivalents, restricted cash, and marketable securities totaled $1,591.9 million as of April 30, 2025, down from $1,724.1 million as of January 31, 2025[142]. - Net cash provided by operating activities was $119.0 million for the three months ended April 30, 2025, compared to $100.0 million in the same period of 2024[180]. - Net cash used in investing activities was $79.9 million for the three months ended April 30, 2025, driven by $153.4 million in purchases of marketable securities[184]. - Net cash used in financing activities was $235.2 million for the three months ended April 30, 2025, primarily due to $227.5 million in repurchases of Class A common stock[186]. - As of April 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $1,591.5 million, with an accumulated deficit of $2,010.4 million[176]. Customer Metrics - The number of customers with ARR of $1 million or more increased to 316 as of April 30, 2025, from 288 in 2024[148]. - The dollar-based net retention rate was 108% as of April 30, 2025, down from 118% in 2024[148]. Expenses and Cost Management - Total cost of revenue rose by $8.5 million or 15% to $63.9 million, driven by a $8.2 million increase in professional services costs[168]. - Sales and marketing expenses decreased by $20.5 million or 11% to $159.7 million, representing 45% of total revenue[170]. - Professional services and other costs increased by 51% to $24.1 million, primarily due to higher third-party subcontractor costs[168]. - Research and development expenses are expected to increase in absolute dollars as the company invests in new technology and product enhancements[160]. - Research and development expenses increased by $9.2 million, or 11%, to $94.8 million for the three months ended April 30, 2025, compared to $85.6 million in the same period of 2024[171]. - General and administrative expenses decreased by $8.8 million, or 14%, to $54.7 million for the three months ended April 30, 2025, compared to $63.5 million in the same period of 2024[172]. Strategic Initiatives - The Fiscal Year 2025 Workforce Restructuring is substantially completed, aimed at streamlining operations and focusing on AI and innovation[144]. - The company continues to monitor macroeconomic impacts, including foreign currency fluctuations and interest rate volatility, which may affect demand and profitability[139][141]. Foreign Currency Impact - Approximately 55% of the company's revenues and 39% of its expenses were denominated in non-U.S. dollar currencies, with net foreign currency transaction losses of $13.1 million recognized[196]. - Other expense, net increased by $26.6 million for the three months ended April 30, 2025, primarily due to a $15.9 million increase in losses from foreign currency transactions[174].

Store Operations and Growth Strategy - Ollie's operates 584 stores across 32 states as of May 3, 2025, with a growth strategy focused on opening new stores and acquiring locations from distressed retailers[83]. - The company targets new store sales of approximately $4.0 million in their first full year of operations, with an average initial cash investment of about $1.0 million per store[85]. - The addition of a fourth distribution center in Princeton, IL, is expected to support up to 750 stores, enhancing distribution capabilities[84]. - The company opened 25 new stores in Q1 fiscal 2025, compared to 4 new stores in Q1 fiscal 2024[112]. - Capital expenditures for fiscal 2025 are planned to be approximately $83 to $88 million, primarily for the opening of 75 new stores[129]. Financial Performance - Net sales increased to $576.8 million in Q1 fiscal 2025 from $508.8 million in Q1 fiscal 2024, a growth of $67.9 million or 13.4%[118]. - Comparable store sales rose by 2.6% in Q1 fiscal 2025 compared to a 3.0% increase in Q1 fiscal 2024, driven by an increase in the number of transactions[119]. - Gross profit increased to $237.0 million in Q1 fiscal 2025, with a stable gross margin of 41.1%[120]. - Net income increased to $47.6 million in Q1 fiscal 2025 from $46.3 million in Q1 fiscal 2024, a rise of $1.2 million or 2.6%[126]. - Adjusted EBITDA rose to $72.2 million in Q1 fiscal 2025 from $69.4 million in Q1 fiscal 2024, an increase of $2.7 million or 3.9%[127]. Expenses and Cost Management - The company expects SG&A expenses to increase in future periods as the store base and net sales grow, while maintaining strict discipline in monitoring these expenses[103]. - SG&A expenses rose to $164.8 million in Q1 fiscal 2025 from $142.4 million in Q1 fiscal 2024, an increase of $22.4 million or 15.7%[121]. - Pre-opening expenses increased to $6.7 million in Q1 fiscal 2025 from $2.7 million in Q1 fiscal 2024, representing 1.2% of net sales compared to 0.5%[122]. Cash Flow and Financial Position - As of May 3, 2025, the company had $369.5 million in cash and cash equivalents, with $91.9 million available to borrow under its Revolving Credit Facility[128]. - Net cash provided by operating activities was $28.7 million in Q1 fiscal 2025, down from $40.2 million in Q1 fiscal 2024, primarily due to changes in working capital[138]. - Net cash used in investing activities decreased to $18.3 million in Q1 fiscal 2025 from $68.5 million in Q1 fiscal 2024, attributed to reduced net investment[139]. - Net cash used in financing activities was $16.5 million in Q1 fiscal 2025, a decrease from $25.7 million in Q1 fiscal 2024, mainly due to lower share repurchases[140]. - The net decrease in cash and cash equivalents was $6.1 million in Q1 fiscal 2025, compared to a decrease of $54.0 million in Q1 fiscal 2024[137]. Market Position and Consumer Behavior - Ollie's business model has shown consistent growth during various economic cycles, benefiting from offering products at prices 20% to 70% below traditional retailers[82]. - Ollie's anticipates that consumer spending habits, influenced by macroeconomic conditions, will impact its sales performance, but believes it is less affected by economic downturns due to its value proposition[94]. - The company plans to leverage its Ollie's Army database marketing strategies to drive sales growth and enhance customer engagement[87]. Share Repurchase and Debt Management - The Company repurchased 159,757 shares of common stock for $17.1 million in Q1 fiscal 2025, compared to 336,934 shares for $25.0 million in Q1 fiscal 2024[135]. - As of May 3, 2025, the Company had $315.5 million remaining under its share repurchase authorization[135]. - The Company had no outstanding variable rate debt as of May 3, 2025, indicating no current interest rate risk exposure[145]. - The Company’s cash flow from operating activities was impacted by the timing of merchandise payments, despite higher net income year over year[138]. Investment Activities - The Company’s purchases of investments in Q1 fiscal 2025 were $119.0 million, offset by maturities of $127.4 million[139]. - There have been no material changes to the Company’s contractual obligations as disclosed in the Annual Report[141].

Customer Metrics - As of April 30, 2025, the company had 24,297 Core customers, contributing approximately 75% of revenues, up from 22,162 Core customers contributing 74% of revenues as of April 30, 2024[141]. - The dollar-based net retention rate for Core customers was 96% as of April 30, 2025, down from 102% in the prior year, indicating a decline in revenue retention from existing customers[145]. Revenue and Growth - The company reported revenues of $187.3 million for the three months ended April 30, 2025, representing a $14.8 million increase or 9% growth compared to $172.4 million for the same period in 2024[167]. - The company entered into its largest subscription agreement in history in May 2025, valued at $100 million over a three-year term, billed annually[142]. Profitability and Expenses - Gross profit for the three months ended April 30, 2025, was $168.0 million, with a gross margin of 90%, consistent with the prior year[163]. - Operating expenses totaled $211.9 million for the three months ended April 30, 2025, a decrease from $220.8 million in the same period in 2024[163]. - The net loss for the three months ended April 30, 2025, was $40.0 million, compared to a net loss of $63.7 million for the same period in 2024[163]. - Research and development expenses were $75.1 million for the three months ended April 30, 2025, down from $82.8 million in the prior year, reflecting a focus on efficiency[163]. - Sales and marketing expenses were $99.8 million for the three months ended April 30, 2025, compared to $104.3 million in the same period in 2024, indicating a strategic investment approach[163]. - General and administrative expenses increased by $3.3 million, or 10%, driven by a $1.8 million increase in personnel-related costs[174]. Cash Flow and Financial Position - Free cash flow was $3,995 thousand for the three months ended April 30, 2025, compared to a negative $4,275 thousand in the same period of 2024[186]. - As of April 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $470.8 million[188]. - As of April 30, 2025, the company had $290.3 million in deferred revenue, with $289.0 million recorded as a current liability[194]. - Net cash provided by operating activities for the three months ended April 30, 2025, was $6.8 million, reflecting a net loss of $40.0 million adjusted by non-cash items[199]. - The company reported a decrease in deferred revenue of $12.5 million due to decreased billings for subscriptions during the three months ended April 30, 2025[199]. - Net cash provided by investing activities for the three months ended April 30, 2025, was $4.2 million, primarily from $41.0 million in maturities of marketable securities[201]. - Net cash used in financing activities for the three months ended April 30, 2025, was $5.5 million, mainly due to $14.5 million in repurchases of Class A common stock[203]. - The company had cash and cash equivalents of $193.8 million as of April 30, 2025[212]. Future Outlook and Strategic Plans - The company anticipates continued investment in research and development, particularly in AI integration, with expenses expected to increase in dollar amount but decrease as a percentage of revenues over time[153]. - The company may seek to raise additional funds through equity or debt in the future to support its capital requirements[195]. - The company believes its current cash and marketable securities will be sufficient to meet working capital and capital expenditure requirements for at least the next 12 months[195]. Currency and Risk Management - 27% of the company's sales for the three months ended April 30, 2025, were denominated in currencies other than U.S. dollars[216]. - The company does not currently enter into derivative or hedging transactions for foreign currency risks but may consider it if exposure increases[217].

Financial Performance - Revenue for Q1 FY2026 increased 18.2% to a record $35.3 million, compared to $29.8 million in Q1 FY2025[7] - Gross profit rose 23.1% to $9.2 million, representing 26.1% of total revenues, up from 25.0% in the same year-ago quarter[8] - Net income surged 123.7% to $1.2 million, or $0.03 per diluted share, compared to $0.6 million, or $0.01 per diluted share, in Q1 FY2025[10] - Adjusted EBITDA increased 12.2% to $2.8 million for Q1 FY2026, compared to $2.5 million in the same year-ago quarter[10] - Net sales for the three months ended April 30, 2025, increased to $35,255,000, a 18.1% rise from $29,838,000 in the same period of 2024[24] - Gross profit for the same period was $9,184,000, representing a 23.1% increase from $7,463,000 year-over-year[24] - Net income for the three months ended April 30, 2025, was $1,237,000, up 123.5% from $553,000 in the prior year[24] Cash and Liquidity - Cash and cash equivalents grew to $12.0 million as of April 30, 2025, up from $7.2 million as of January 31, 2025[11] - Cash and cash equivalents increased to $12,011,000 as of April 30, 2025, compared to $7,150,000 at the beginning of the period[26] - The company generated $6.0 million of cash flow from operations during the quarter, while total debt was reduced to $4.6 million[6] - Net cash provided by operating activities was $6,005,000 for the three months ended April 30, 2025, compared to $3,641,000 in the prior year[26] Operating Expenses - Operating expenses totaled $7.6 million, with a decrease in operating expenses as a percentage of sales to 21.6% from 22.4%[9] - Operating expenses for the three months ended April 30, 2025, totaled $7,606,000, a 13.7% increase from $6,690,000 in the same period of 2024[24] - Research and development expenses decreased to $73,000 from $104,000 year-over-year[24] Investments and Growth Strategy - The company achieved record trade promotion investment at 6% of gross revenue, up from 2% in the previous quarter[3] - The company plans to utilize its cash reserves for prospective acquisitions, further innovation, and margin expansion in the upcoming quarters[6] Customer Acquisition - New customer acquisitions included Lidl, Amazon Fresh, and Sheetz, contributing to a balanced geographic distribution[4] Balance Sheet - Total assets rose to $52,725,000 as of April 30, 2025, up from $47,062,000 at the end of January 2025[22] - Total liabilities increased to $26,287,000 as of April 30, 2025, compared to $22,166,000 at the end of January 2025[22] Share Information - The company reported a weighted average of 37,597,000 basic common shares outstanding for the three months ended April 30, 2025[24]

Revenue and Sales Performance - Revenue for Q1 FY2026 increased 18.2% to a record $35.3 million, compared to $29.8 million in Q1 FY2025[7] - Net sales for the three months ended April 30, 2025, increased to $35,255,000, a 18.1% rise from $29,838,000 in the same period of 2024[24] Profitability - Gross profit rose 23.1% to $9.2 million, representing 26.1% of total revenues, up from 25.0% in the same year-ago quarter[8] - Gross profit for the same period was $9,184,000, representing a 23.1% increase compared to $7,463,000 in 2024[24] - Net income surged 123.7% to $1.2 million, or $0.03 per diluted share, compared to $0.6 million, or $0.01 per diluted share, in Q1 FY2025[10] - Net income for the three months ended April 30, 2025, was $1,237,000, up 123.5% from $553,000 in the prior year[24] Cash Flow and Liquidity - Cash and cash equivalents grew to $12.0 million as of April 30, 2025, up from $7.2 million as of January 31, 2025[11] - Cash and cash equivalents increased to $12,011,000 as of April 30, 2025, from $7,150,000 at the beginning of the period, marking a 68.5% increase[26] - The company generated $6.0 million of cash flow from operations during the quarter, while total debt was reduced to $4.6 million[6] - Net cash provided by operating activities for the three months ended April 30, 2025, was $6,005,000, a 64.7% increase from $3,641,000 in 2024[26] Operating Expenses - Operating expenses totaled $7.6 million, with a decrease in operating expenses as a percentage of sales to 21.6% from 22.4%[9] - Operating expenses for the three months ended April 30, 2025, totaled $7,606,000, a 13.7% increase from $6,690,000 in 2024[24] - Research and development expenses decreased to $73,000 from $104,000 in the same period last year, a decline of 29.8%[24] Strategic Initiatives - The company achieved record trade promotion investment at 6% of gross revenue, up from 2% in the previous quarter[3] - New customer acquisitions included Lidl, Amazon Fresh, and Sheetz, contributing to a balanced geographic distribution[4] - The company plans to utilize its cash reserves for prospective acquisitions, further innovation, and margin expansion in the upcoming quarters[6] Balance Sheet Highlights - Total assets rose to $52,725,000 as of April 30, 2025, compared to $47,062,000 as of January 31, 2025, reflecting a 12.5% growth[22] - Total liabilities increased to $26,287,000 as of April 30, 2025, from $22,166,000 as of January 31, 2025, indicating an 18.5% rise[22] Shareholder Information - The weighted average common shares outstanding for basic earnings per share increased to 37,597,000 from 37,259,000 in the prior year[24] Adjusted Metrics - Adjusted EBITDA increased 12.2% to $2.8 million for Q1 FY2026, compared to $2.5 million in the same year-ago quarter[10]

Sales Performance - Q1 2025 same store sales increased by 2% compared to a decline of 13.5% in Q1 2024[1] - Net sales for Q1 2025 were $249.1 million, up from $244.2 million in Q1 2024, representing a 2.0% increase[3] - The company expects net sales for fiscal year 2025 to range from a decline of 1.0% to an increase of 3.5%[6] Profitability - Gross profit for Q1 2025 was $75.6 million, or 30.4% of net sales, compared to $73.8 million, or 30.2% of net sales in Q1 2024[3] - Net loss for Q1 2025 was $(21.3) million, compared to a net loss of $(18.1) million in Q1 2024[3] - Adjusted EBITDA for Q1 2025 was $(9.0) million, slightly worse than $(8.7) million in Q1 2024[3] - The company reported a net loss of $21,254 thousand for the thirteen weeks ended May 3, 2025, compared to a net loss of $18,066 thousand for the same period in 2024, reflecting a decline of approximately 12.1%[22] - Adjusted EBITDA for the same period was $(8,960) thousand, slightly worse than the $(8,737) thousand reported in the prior year[27] - The diluted loss per share was $(0.56) for the thirteen weeks ended May 3, 2025, compared to $(0.48) for the same period in 2024[24] - The company incurred $5,646 thousand in valuation allowance adjustments, impacting the adjusted net loss[24] Expenses and Management - SG&A expenses were $95.3 million, or 38.2% of net sales, down from 38.6% in Q1 2024, reflecting improved expense management[3] - Adjusted EBITDA guidance for fiscal year 2025 is projected to be between $33 million and $45 million[6] Inventory and Assets - As of May 3, 2025, total inventory was $412.3 million, reflecting strategic inventory investments in anticipation of increased tariffs[8] - Merchandise inventories increased to $412,268 thousand, up from $341,958 thousand, indicating a rise of approximately 20.5%[20] - Total assets increased to $929,669 thousand as of May 3, 2025, up from $852,102 thousand on February 1, 2025, representing a growth of approximately 9.1%[20] Liabilities and Equity - Current liabilities rose to $378,500 thousand, compared to $283,963 thousand in the previous period, marking an increase of about 33.3%[20] - Stockholders' equity decreased to $215,057 thousand from $235,704 thousand, a decline of approximately 8.8%[20] - The company had net borrowings on the line of credit amounting to $67,210 thousand during the period, compared to $37,992 thousand in the previous year[22] Future Plans - The company plans to open one new store in Surprise, Arizona during fiscal year 2025[6]

Financial Performance - Total revenue for the three months ended April 30, 2025, was $638,983,000, representing a 21.7% increase from $524,577,000 in the same period of the previous year[19] - Net income for the three months ended April 30, 2025, was $63,363,000, compared to a net loss of $15,616,000 in the same period last year, indicating a significant turnaround[21] - The company reported a gross profit of $555,992,000 for the three months ended April 30, 2025, which is a 25% increase from $444,958,000 in the prior year[19] - Total revenue for the nine months ended April 30, 2025, was $1,884,660,000, up from $1,600,864,000 in the same period of 2024, representing a growth of approximately 17.7%[43] - Net income for the nine months ended April 30, 2025, was $149,716,000, compared to $1,326,000 for the same period in 2024, indicating a significant increase[26] - Gross profit for the three months ended April 30, 2025, was $555,992,000, with a gross margin of 87.0%[141] - Non-GAAP gross profit for the nine months ended April 30, 2025, was $1,658.98 million, up from $1,386.25 million for the same period in 2024, reflecting a growth of 19.6%[163] Revenue Breakdown - Product revenue increased to $345,479,000 for the three months ended April 30, 2025, up from $255,465,000, marking a 35.3% growth year-over-year[19] - Subscription revenue for the nine months ended April 30, 2025, reached $1,794,777,000, compared to $1,498,081,000 in 2024, reflecting an increase of about 19.8%[43] - Subscription revenue for the three months ended April 30, 2025, was $609,663,000, accounting for the majority of total revenue[142] - Subscription revenue for the three months ended April 30, 2025, reached approximately $330.0 million, up from $231.8 million for the same period in 2024, representing a growth of 42.3%[148] - Support, entitlements, and other services revenue increased by approximately $24.4 million, or 9%, for the three months ended April 30, 2025, compared to the same period in 2024, due to a 10% growth in the end customer base[201] Expenses and Costs - Operating expenses for the three months ended April 30, 2025, totaled $507,347,000, up from $456,546,000, reflecting an 11.1% increase year-over-year[19] - The company reported stock-based compensation expenses of $83.998 million for the nine months ended April 30, 2024, compared to $85.969 million for the same period in the previous year, showing a slight decrease of 2.3%[23] - Sales and marketing expenses rose to $775,185 thousand for the nine months ended April 30, 2025, reflecting an increase of $57,259 thousand or 8% compared to the prior year[209] - The percentage of total revenue attributed to sales and marketing expenses was 44.8% for the nine months ended April 30, 2025, compared to 41.1% in the prior year[209] Cash Flow and Liquidity - Cash and cash equivalents decreased to $655,270,000 as of July 31, 2024, from $872,599,000 as of April 30, 2025, indicating a reduction in liquidity[17] - Net cash provided by operating activities for the nine months ended April 30, 2025, was $601,927,000, compared to $428,234,000 for the same period in 2024, showing a growth of approximately 40.5%[26] - Cash, cash equivalents, and restricted cash at the end of the period on April 30, 2025, totaled $872,626,000, up from $600,158,000 at the end of the previous period, marking an increase of about 45.2%[26] Shareholder Information - Nutanix issued 3,274 thousand shares through employee equity incentive plans, contributing $547 thousand to paid-in capital during the nine months ended April 30, 2024[23] - The company repurchased approximately 0.6 million and 0.9 million shares of Class A common stock during the three and nine months ended April 30, 2025, for an aggregate purchase price of approximately $37.5 million and $57.5 million, respectively[107] - As of April 30, 2025, approximately $161.4 million remained available for future share repurchases under the Board's authorization[107] Strategic Initiatives - The company plans to continue investing in research and development to enhance its solutions and expand its product offerings, particularly in generative artificial intelligence and multicloud environments[11] - Nutanix aims to improve operational efficiencies and reduce sales and marketing expenses as a percentage of revenue while focusing on major accounts and pipeline growth[11] - The company continues to focus on operational efficiencies and profitable growth through investments in solutions and sales and marketing[139] - The company plans to invest in sales and marketing to support growth, expecting an increase in sales and marketing expenses in the near term[167] Customer Metrics - Total end customers increased to 28,490 as of April 30, 2025, up from 25,860 in the previous year[141] - Approximately 77% of end customers who have been with the company for 18 months or longer have made a repeat purchase, with total lifetime orders averaging 9.4 times greater than the initial order[175] - The net dollar-based retention rate (NRR) as of April 30, 2025, was 110%, down from 117% a year earlier[176] Accounting and Compliance - The company has adopted new accounting standards related to convertible debt instruments, which may impact future financial reporting[38] - The company operates a subscription-based business model, allowing customers flexibility in choosing license levels and durations based on their needs[32]

Financial Performance - Q1 revenue was $187.3 million, an increase of 9% year over year[5] - GAAP operating loss was $43.9 million, or 23% of revenues, improved from a loss of $66.2 million, or 38% of revenues, in Q1 fiscal 2025[5] - Non-GAAP operating income was $8.1 million, or 4% of revenues, compared to a non-GAAP operating loss of $15.8 million, or 9% of revenues, in Q1 fiscal 2025[5] - Revenues for the three months ended April 30, 2025, were $187,267,000, representing a 8.6% increase from $172,448,000 in the same period of 2024[27] - GAAP revenue for Q2 2025 was $187,267, up from $172,448 in Q2 2024, reflecting an increase of approximately 8.5%[34] - Revenue adjusted for the impact of foreign currency in Q2 2025 was $187,630, compared to $172,477 in Q2 2024, showing a similar growth trend[34] Customer Growth - The number of Core customers grew to 24,297, an increase of 10% year over year[5] - Customers spending $100,000 or more annually increased to 728, a 20% year-over-year growth[5] - The dollar-based net retention rate for Core customers in Q1 was 96%[7] Cash Flow and Expenses - Cash flows from operating activities were $6.8 million, compared to negative $1.9 million in Q1 fiscal 2025[5] - Cash and cash equivalents increased to $193,791,000 as of April 30, 2025, up from $184,728,000 at the end of January 2025[29] - Total operating expenses decreased to $211,944,000 from $220,813,000 year-over-year, reflecting a 4% reduction[27] - Free cash flow for Q2 2025 was $3,995, compared to a negative free cash flow of $4,275 in Q2 2024, indicating a turnaround[34] - Adjusted free cash flow for Q2 2025 reached $9,882, contrasting with a negative adjusted free cash flow of $4,275 in Q2 2024[34] - The company reported a net cash provided by operating activities of $6,764 in Q2 2025, compared to $(1,898) in Q2 2024, indicating improved operational efficiency[34] Profitability - Non-GAAP net income per share is projected to be $0.04 to $0.05, assuming diluted weighted average shares outstanding of approximately 243 million[7] - Non-GAAP income from operations was $8,137,000 for the three months ended April 30, 2025, compared to a loss of $15,770,000 in the same period of 2024[32] - GAAP net loss for Q2 2025 was $40,018, compared to a loss of $63,722 in Q2 2024, representing a 37% improvement[34] - Non-GAAP net income for Q2 2025 was $12,023, a significant recovery from a loss of $13,323 in Q2 2024[34] - GAAP net loss per share, basic, improved to $(0.17) in Q2 2025 from $(0.28) in Q2 2024[34] - Non-GAAP net income per share, basic, was $0.05 in Q2 2025, recovering from a loss of $(0.06) in Q2 2024[34] Future Outlook - For fiscal 2026, Asana expects revenues of $775.0 million to $790.0 million, representing year-over-year growth of 7% to 9%[6] - Asana entered into the largest subscription agreement in its history with a renewal exceeding $100 million over a three-year term[7] Assets and Equity - Total assets decreased to $877,133,000 from $891,415,000 since January 31, 2025[29] - Asana's total stockholders' equity increased to $236,304,000 from $227,523,000 since January 31, 2025[29] Research and Development - The company plans to continue investing in research and development, with R&D expenses at $75,127,000 for the quarter, down from $82,791,000 in the previous year[27] - The company reported stock-based compensation expense of $48,167,000 for the three months ended April 30, 2025, slightly down from $48,640,000 in the prior year[27]