Pure Storage(US:PSTG)2025-09-09 21:45Note About Forward-Looking Statements This section outlines forward-looking statements in the Form 10-Q, emphasizing inherent risks and uncertainties in macroeconomic conditions, product demand, and investment plans - Forward-looking statements cover a wide range of topics including macroeconomic conditions, demand for products and subscription services (Evergreen//One), market share expansion, international investment plans, and the shift to as-a-Service offerings9 - The company acknowledges that actual results may differ materially due to known and unknown risks, uncertainties, and assumptions, as detailed in the 'Risk Factors' section910 PART I. FINANCIAL INFORMATION Item 1. Financial Statements This section presents the company's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive income, stockholders' equity, and cash flows Condensed Consolidated Balance Sheets | Metric | Fiscal 2025 (in thousands) | Q2 Fiscal 2026 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------- | :------- | | Total current assets | $2,567,279 | $2,524,738 | $(42,541) | -1.65% | | Total assets | $3,963,942 | $4,026,537 | $62,595 | 1.58% | | Total current liabilities | $1,596,541 | $1,534,408 | $(62,133) | -3.89% | | Total liabilities | $2,657,467 | $2,707,716 | $50,249 | 1.89% | | Total stockholders' equity | $1,306,475 | $1,318,821 | $12,346 | 0.94% | Condensed Consolidated Statements of Operations | Metric | Q2 Fiscal 2025 (in thousands) | Q2 Fiscal 2026 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------- | :------- | | Product revenue | $402,595 | $446,303 | $43,708 | 10.86% | | Subscription services revenue | $361,176 | $414,699 | $53,523 | 14.82% | | Total revenue | $763,771 | $861,002 | $97,231 | 12.73% | | Gross profit | $540,080 | $604,336 | $64,256 | 11.90% | | Income (loss) from operations | $24,878 | $4,871 | $(20,007) | -80.42% | | Net income | $35,674 | $47,118 | $11,444 | 32.08% | | Basic EPS | $0.11 | $0.14 | $0.03 | 27.27% | | Diluted EPS | $0.10 | $0.14 | $0.04 | 40.00% | | Metric | First Two Quarters Fiscal 2025 (in thousands) | First Two Quarters Fiscal 2026 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :-------------------- | :------- | | Product revenue | $749,979 | $818,447 | $68,468 | 9.13% | | Subscription services revenue | $707,271 | $821,040 | $113,769 | 16.09% | | Total revenue | $1,457,250 | $1,639,487 | $182,237 | 12.51% | | Gross profit | $1,035,786 | $1,140,489 | $104,703 | 10.11% | | Income (loss) from operations | $(16,896) | $(26,300) | $(9,404) | -55.66% | | Net income | $665 | $33,123 | $32,458 | 4880.90% | | Basic EPS | $0.00 | $0.10 | $0.10 | N/A | | Diluted EPS | $0.00 | $0.10 | $0.10 | N/A | Condensed Consolidated Statements of Comprehensive Income | Metric | Q2 Fiscal 2025 (in thousands) | Q2 Fiscal 2026 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------- | :------- | | Net income | $35,674 | $47,118 | $11,444 | 32.08% | | Change in unrealized net gains on available-for-sale securities | $8,291 | $85 | $(8,206) | -98.97% | | Comprehensive income | $43,965 | $47,203 | $3,238 | 7.37% | | Metric | First Two Quarters Fiscal 2025 (in thousands) | First Two Quarters Fiscal 2026 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :-------------------- | :------- | | Net income | $665 | $33,123 | $32,458 | 4880.90% | | Change in unrealized net gains on available-for-sale securities | $6,489 | $962 | $(5,527) | -85.17% | | Comprehensive income | $7,154 | $34,085 | $26,931 | 376.45% | Condensed Consolidated Statements of Stockholders' Equity | Metric | Q2 Fiscal 2025 (in thousands) | Q2 Fiscal 2026 (in thousands) | Change (in thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------- | | Balance at end of Q1 | $1,373,973 | $1,244,055 | $(129,918) | | Stock-based compensation expense | $106,861 | $119,509 | $12,648 | | Tax withholding on equity awards | $(76,183) | $(57,799) | $18,384 | | Repurchases of common stock | — | $(42,242) | $(42,242) | | Net income | $35,674 | $47,118 | $11,444 | | Balance at end of Q2 | $1,453,161 | $1,318,821 | $(134,340) | | Metric | First Two Quarters Fiscal 2025 (in thousands) | First Two Quarters Fiscal 2026 (in thousands) | Change (in thousands) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :-------------------- | | Balance at end of Fiscal 2024/2025 | $1,270,094 | $1,306,475 | $36,381 | | Stock-based compensation expense | $221,478 | $217,687 | $(3,791) | | Tax withholding on equity awards | $(88,661) | $(117,946) | $(29,285) | | Repurchases of common stock | — | $(162,178) | $(162,178) | | Net income | $665 | $33,123 | $32,458 | | Balance at end of Q2 | $1,453,161 | $1,318,821 | $(134,340) | Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | First Two Quarters Fiscal 2025 (in thousands) | First Two Quarters Fiscal 2026 (in thousands) | Change (in thousands) | % Change | | :--------------------------------