Executive Summary
Nutanix delivered a solid QQ1 2025 (quarter ended around October 31, 2024, calendar year 2025) with Revenue of $590.96 million, up 15.63% year over year and 7.85% quarter over quarter. The business maintained a very high gross margin, reporting 86.01% gross profit margin, and generated meaningful operating cash flow and free cash flow (FCF) of $161.75 million and $151.92 million, respectively. Net income was $29.93 million, with basic and diluted EPS of $0.11 and $0.10, underscoring meaningful profitability at the quarter level even as the company continues to invest in its growth engine. Free cash flow margin approximates 25.7% of revenue, signaling strong cash-generation discipline for a software/services platform.
Key Performance Indicators
QoQ: 323.58% | YoY:577.57%
QoQ: 123.73% | YoY:288.77%
QoQ: 121.57% | YoY:267.68%
Key Insights
Revenue: $590.96M (YoY +15.63%, QoQ +7.85%); Gross Profit: $508.29M (Gross Margin 86.01%, YoY +18.46%, QoQ +8.85%); Operating Income: $27.25M (margin 4.61%, YoY +577.57%, QoQ +323.58%); Net Income: $29.93M (net margin 5.06%, YoY +288.77%, QoQ +123.73%); EPS (GAAP): $0.11 basic, $0.10 diluted (YoY +267.68%, QoQ +121.57%); EBITDA: $55.75M (EBITDA Margin 9.43%); Operating Cash Flow: $161.75M; Free Cash Flow: $151.92M; Cash at end of period: $716.99M; Total Debt: $704.15M; Net Debt: -$12.46M; Deferr...
Financial Highlights
Revenue: $590.96M (YoY +15.63%, QoQ +7.85%); Gross Profit: $508.29M (Gross Margin 86.01%, YoY +18.46%, QoQ +8.85%); Operating Income: $27.25M (margin 4.61%, YoY +577.57%, QoQ +323.58%); Net Income: $29.93M (net margin 5.06%, YoY +288.77%, QoQ +123.73%); EPS (GAAP): $0.11 basic, $0.10 diluted (YoY +267.68%, QoQ +121.57%); EBITDA: $55.75M (EBITDA Margin 9.43%); Operating Cash Flow: $161.75M; Free Cash Flow: $151.92M; Cash at end of period: $716.99M; Total Debt: $704.15M; Net Debt: -$12.46M; Deferred Revenue (current + non-current): $1,894.38M; Current Ratio: 1.12; Quick Ratio: 1.12; DSO: 31.40 days; CCC: -17.21 days; Negative stockholders’ equity: -$685.30M; P/S: ~28.3; P/B: negative (due to negative book value).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
590.96M |
15.63% |
7.85% |
| Gross Profit |
508.29M |
18.46% |
8.85% |
| Operating Income |
27.25M |
577.57% |
323.58% |
| Net Income |
29.93M |
288.77% |
123.73% |
| EPS |
0.11 |
267.68% |
121.57% |
Key Financial Ratios
operatingProfitMargin
4.61%
operatingCashFlowPerShare
$0.61
freeCashFlowPerShare
$0.57
priceEarningsRatio
139.87
Management Commentary
Note: The earnings transcript data were not provided in the prompt. The synthesis below reflects the financials and typical management focus areas for Nutanix in QQ1 2025, including cloud-native product momentum, multi-cloud strategy, and monetization of deferred revenue. Management commentary themes would typically cover: (1) progress on Nutanix Clusters and multi-cloud adoption, (2) execution of Prism Pro, Nutanix Beam, and Calm to drive higher ARR, (3) cost discipline alongside investment in go-to-market and R&D, (4) customer expansion and renewal dynamics, and (5) macro headwinds or tailwinds affecting IT budgets and cloud migrations.
Not available
— Management
Not available
— Management
Forward Guidance
No formal forward guidance was provided in the supplied data. Given the strong top-line growth, robust gross margins, and solid FCF generation, the near-term trajectory appears favorable if Nutanix continues to convert deferred revenue into recognized revenue and sustains operating leverage. Investors should monitor: (i) progression of Nutanix Clusters on public clouds and private cloud expansion, (ii) renewal rates and ARR growth, (iii) cadence of R&D investments vs. monetization, (iv) changes in deferred revenue balance and its recognition timing, and (v) competitive dynamics with hyperscale cloud providers and adjacent software players.