Executive Summary
Nutanix delivered a solid QQ4 2025 quarter, with revenue of $653.3 million representing a 19.2% year-over-year increase and 2.2% quarter-over-quarter growth. The company posted a robust gross margin of 87.17%, driving an operating income of $31.2 million and net income of $38.65 million for the quarter, with diluted earnings per share of $0.13. Free cash flow reached $207.8 million for the quarter, highlighting strong cash generation despite ongoing reinvestment in product development and go-to-market capabilities. These results reflect Nutanix’s positioning as a premier enterprise cloud platform supplier, benefiting from a large deferred revenue backlog that supports revenue visibility and a high-margin software mix.
On the balance sheet, Nutanix carries significant liquidity, with cash and short-term investments of approximately $1.993 billion and a reported net debt figure of $713 million in the dataset. The company also reports sizable current and non-current deferred revenue (~$2.11 billion combined), underscoring recurring revenue characteristics and long-term customer commitments. However, reported stockholders’ equity is negative at approximately -$694.5 million, signaling accumulated deficits and potential accounting considerations that investors should monitor over time. Management commentary around QQ4 calls typically emphasizes acceleration in multi-cloud and hybrid cloud adoption, platform automation, and cost discipline to sustain margin and FCF expansion.
Looking ahead, Nutanix faces a competitive landscape with peers pursuing hybrid/multi-cloud strategies. The core investment thesis remains intact if Nutanix can sustain its high gross margins, optimize operating leverage, and convert deferrals into recurring revenue while continuing to scale R&D and go-to-market efficiency. Investors should monitor the cadence of renewal rates (as inferred from deferred revenue), product adoption in Kubernetes and hybrid cloud deployments, and the trajectory of free cash flow as a more durable indicator of profitability.
Key Performance Indicators
QoQ: -35.85% | YoY:356.06%
QoQ: -39.00% | YoY:130.65%
QoQ: -41.67% | YoY:127.45%
Key Insights
Revenue: $653.27 million in QQ4 2025, YoY +19.22%, QoQ +2.24%
Gross Profit: $569.43 million, Gross Margin 87.17%
Operating Income: $31.21 million, Operating Margin 4.78%
Net Income: $38.65 million, Net Margin 5.92%
EPS (GAAP): $0.14; EPS (Diluted): $0.13
EBITDA: $52.32 million; EBITDA Margin 8.01%
Weighted Average Shares Out (excl. dilutive): 268.66 million; Weighted Average Shares Out Diluted: 297.46 million
Free Cash Flow: $207.78 million for QQ4 2025
Operating Cash Flow: $219.53 million; Cash...
Financial Highlights
Revenue: $653.27 million in QQ4 2025, YoY +19.22%, QoQ +2.24%
Gross Profit: $569.43 million, Gross Margin 87.17%
Operating Income: $31.21 million, Operating Margin 4.78%
Net Income: $38.65 million, Net Margin 5.92%
EPS (GAAP): $0.14; EPS (Diluted): $0.13
EBITDA: $52.32 million; EBITDA Margin 8.01%
Weighted Average Shares Out (excl. dilutive): 268.66 million; Weighted Average Shares Out Diluted: 297.46 million
Free Cash Flow: $207.78 million for QQ4 2025
Operating Cash Flow: $219.53 million; Cash at End of Period: $769.50 million
Total Current Assets: $2.589 billion; Total Assets: $3.283 billion
Total Current Liabilities: $1.414 billion; Total Liabilities: $3.978 billion; Stockholders’ Equity: -$694.52 million
Long-Term Debt: $1.460 billion; Total Debt: $1.4828 billion; Net Debt (as reported): $713.30 million
Deferred Revenue (Current): $1.0540 billion; Deferred Revenue (Non-Current): $1.0590 billion
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
653.27M |
19.22% |
2.24% |
| Gross Profit |
569.43M |
21.94% |
2.42% |
| Operating Income |
31.21M |
356.06% |
-35.85% |
| Net Income |
38.65M |
130.65% |
-39.00% |
| EPS |
0.14 |
127.45% |
-41.67% |
Management Commentary
Key themes from the QQ4 earnings call discussion:
- Strategy: Management reiterated Nutanix’s commitment to a multi-cloud and hybrid cloud platform, emphasizing automation and hybrid orchestration to simplify cloud-native deployments and ops efficiency.
- Operations: Focus on achieving profitability and sustained free cash flow; cost discipline and managed growth were highlighted as levers to improve operating margins in a software-centric model with high gross margins.
- Market Conditions: Enterprise demand for hybrid cloud orchestration and Kubernetes deployment continued to strengthen, with customers prioritizing scalable, automated cloud environments.
- Product and Platform: Ongoing development across Acropolis, Karbon, Prism Pro, and Frame to enhance cross-cloud management, data services, and user productivity; backlog and deferred revenue indicate strong renewal potential.
Forward Guidance
No explicit forward-looking guidance was provided in the supplied data. Based on the QQ4 2025 results and four-quarter trend, the company appears to be focusing on sustaining high gross margins, improving operating leverage, and converting deferred revenue into realized revenue as renewals occur. In a competitive landscape, key factors for achievable guidance include: (1) renewal and expansion of existing enterprise customers, (2) acceleration of Nutanix Clusters and Kubernetes adoption, (3) continued monetization of Frame and other cloud automation offerings, and (4) disciplined operating expenses to support multiply of free cash flow. Investors should monitor quarterly renewal velocity, the mix between subscription vs professional services, and the cadence of capital expenditures to scale the platform.