Pure Storage Announces Second Quarter Fiscal 2026 Financial Results
Pure Storage (NYSE: PSTG) reported strong Q2 fiscal 2026 results with revenue of $861.0 million, up 13% year-over-year. The company's subscription services revenue grew 15% to $414.7 million, while subscription ARR reached $1.8 billion, up 18%.
Key financial metrics include a non-GAAP operating income of $130.0 million with a 15.1% margin, and free cash flow of $150.1 million. Pure Storage increased its FY26 guidance, now expecting revenue between $3.60B to $3.63B (13.5-14.5% YoY growth) and non-GAAP operating income of $605M to $625M.
The company introduced the Enterprise Data Cloud (EDC) architecture and expanded its product portfolio with next-generation storage solutions. Pure Storage also returned $42 million to stockholders through share repurchases of 0.8 million shares.
Pure Storage (NYSE: PSTG) ha annunciato solidi risultati per il secondo trimestre fiscale 2026 con ricavi per 861,0 milioni di dollari, in crescita del 13% su base annua. I ricavi dai servizi in abbonamento sono aumentati del 15% raggiungendo 414,7 milioni di dollari, mentre l'ARR da abbonamenti ha raggiunto 1,8 miliardi di dollari, in aumento del 18%.
I principali indicatori finanziari includono un utile operativo non-GAAP di 130,0 milioni di dollari con un margine del 15,1% e un flusso di cassa libero di 150,1 milioni di dollari. Pure Storage ha rivisto al rialzo le previsioni per l'anno fiscale 2026, aspettandosi ora ricavi compresi tra 3,60 e 3,63 miliardi di dollari (crescita YoY del 13,5-14,5%) e un utile operativo non-GAAP tra 605 e 625 milioni di dollari.
La societ脿 ha presentato l'architettura Enterprise Data Cloud (EDC) e ha ampliato il suo portafoglio con soluzioni di storage di nuova generazione. Pure Storage ha inoltre restituito 42 milioni di dollari agli azionisti tramite il riacquisto di 0,8 milioni di azioni.
Pure Storage (NYSE: PSTG) report贸 s贸lidos resultados en el segundo trimestre fiscal de 2026 con ingresos de 861,0 millones de d贸lares, un aumento del 13% interanual. Los ingresos por servicios de suscripci贸n crecieron un 15% hasta 414,7 millones de d贸lares, mientras que el ARR de suscripciones alcanz贸 1,8 mil millones de d贸lares, un aumento del 18%.
Los principales indicadores financieros incluyen un ingreso operativo non-GAAP de 130,0 millones de d贸lares con un margen del 15,1% y un flujo de caja libre de 150,1 millones de d贸lares. Pure Storage aument贸 su gu铆a para el a帽o fiscal 2026, esperando ahora ingresos entre 3,60 y 3,63 mil millones de d贸lares (crecimiento interanual del 13,5-14,5%) y un ingreso operativo non-GAAP de 605 a 625 millones de d贸lares.
La compa帽铆a present贸 la arquitectura Enterprise Data Cloud (EDC) y ampli贸 su cartera de productos con soluciones de almacenamiento de pr贸xima generaci贸n. Pure Storage tambi茅n devolvi贸 42 millones de d贸lares a los accionistas mediante la recompra de 0,8 millones de acciones.
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欤检殧 鞛 歆�響滊電� 牍凣AAP 鞓侅梾鞚挫澋 1鞏�3,000毵� 雼煬鞕� 15.1%鞚� 毵堨, 攴鸽Μ瓿� 1鞏�5,010毵� 雼煬鞚� 鞛夓棳順勱笀頋愲鞚� 韽暔霅╇媹雼�. Pure Storage電� 2026 須岅硠鞐半弰 臧�鞚措崢鞀るゼ 靸來枼 臁办爼頃�, 毵れ稖鞚� 鞚挫牅 36鞏祣36.3鞏� 雼煬(鞝勲厔 雽�牍� 13.5~14.5% 靹膘灔)搿�, 牍凣AAP 鞓侅梾鞚挫澋鞚� 6鞏�5氚彪~6鞏�2觳�5氚彪 雼煬搿� 鞓堨儊頃橁碃 鞛堨姷雼堧嫟.
须岇偓电� Enterprise Data Cloud(EDC) 鞎勴偆韰嶌矘毳� 霃勳瀰頃橁碃 彀劯雽� 鞀ろ啝毽 靻旊（靺橃溂搿� 鞝滍拡 韽姼韽措Μ鞓るゼ 頇曥灔頄堨姷雼堧嫟. 霕愴暅 Pure Storage電� 80毵� 欤检潣 鞛愳偓欤� 毵れ瀰鞚� 韱淀暣 欤检＜霌れ棎瓴� 4200毵� 雼煬毳� 頇橃洂頄堨姷雼堧嫟.
Pure Storage (NYSE: PSTG) a publi茅 de solides r茅sultats pour le deuxi猫me trimestre fiscal 2026 avec un chiffre d'affaires de 861,0 millions de dollars, en hausse de 13% en glissement annuel. Les revenus des services d'abonnement ont augment茅 de 15% pour atteindre 414,7 millions de dollars, tandis que l'ARR des abonnements s'est 茅lev茅 脿 1,8 milliard de dollars, en progression de 18%.
Les principaux indicateurs financiers incluent un r茅sultat d'exploitation non-GAAP de 130,0 millions de dollars avec une marge de 15,1%, et un flux de tr茅sorerie disponible de 150,1 millions de dollars. Pure Storage a relev茅 ses pr茅visions pour l'exercice 2026, anticipant d茅sormais un chiffre d'affaires compris entre 3,60 et 3,63 milliards de dollars (croissance annuelle de 13,5-14,5%) et un r茅sultat d'exploitation non-GAAP de 605 脿 625 millions de dollars.
La soci茅t茅 a pr茅sent茅 l'architecture Enterprise Data Cloud (EDC) et 茅largi son portefeuille de produits avec des solutions de stockage de nouvelle g茅n茅ration. Pure Storage a 茅galement restitu茅 42 millions de dollars aux actionnaires via le rachat de 0,8 million d'actions.
Pure Storage (NYSE: PSTG) meldete starke Ergebnisse f眉r das zweite Quartal des Gesch盲ftsjahres 2026 mit Umsatz von 861,0 Millionen US-Dollar, ein Anstieg von 13% gegen眉ber dem Vorjahr. Die Ums盲tze aus Abonnementdiensten stiegen um 15% auf 414,7 Millionen US-Dollar, w盲hrend das Abonnement-ARR 1,8 Milliarden US-Dollar erreichte, ein Plus von 18%.
Wichtige Finanzkennzahlen umfassen ein non-GAAP-Betriebsergebnis von 130,0 Millionen US-Dollar mit einer Marge von 15,1% sowie einen freien Cashflow von 150,1 Millionen US-Dollar. Pure Storage hat seine Prognose f眉r das Gesch盲ftsjahr 2026 angehoben und erwartet nun Ums盲tze zwischen 3,60 Mrd. und 3,63 Mrd. US-Dollar (YoY-Wachstum 13,5鈥�14,5%) und ein non-GAAP-Betriebsergebnis von 605 bis 625 Millionen US-Dollar.
Das Unternehmen stellte die Architektur Enterprise Data Cloud (EDC) vor und erweiterte sein Produktportfolio um Next鈥慓eneration鈥慡torage鈥慙枚sungen. Pure Storage hat au脽erdem 42 Millionen US-Dollar an Aktion盲re zur眉ckgegeben durch Aktienr眉ckk盲ufe in H枚he von 0,8 Millionen Aktien.
- Revenue grew 13% YoY to $861.0 million, exceeding guidance
- Subscription services revenue increased 15% YoY to $414.7 million
- Strong non-GAAP operating margin of 15.1%
- Raised full-year revenue guidance to $3.60B-$3.63B
- Generated $150.1 million in free cash flow
- Subscription ARR grew 18% to $1.8 billion
- Returned $42 million to shareholders via share repurchases
- GAAP operating margin remained low at 0.6%
- GAAP operating income of only $4.9 million despite strong revenue
Insights
Pure Storage posts strong Q2 with 13% revenue growth, raises full-year guidance amid solid enterprise adoption of its platform strategy.
Pure Storage delivered solid Q2 results with revenue reaching
Profitability metrics demonstrate improved operational efficiency, with non-GAAP operating income of
Looking forward, management has raised full-year guidance, projecting revenue between
The improved outlook reflects strong customer adoption of Pure's Enterprise Data Cloud architecture and expanded product portfolio. New offerings like FlashArray//XL, FlashArray//ST, and FlashBlade//S target high-performance enterprise workloads, while innovations like Portworx for KubeVirt address the growing Kubernetes market. These product developments position Pure Storage well in the evolving enterprise data management landscape where organizations increasingly need flexible, unified storage solutions across block, file, and object storage.
Q2 total revenue growth of
Storage as a Service Offerings TCV sales growth of
Increases full-year revenue and operating profit guidance
"Our strong second quarter results demonstrate ever more customers' confidence in the value of the Pure Storage platform to advance their data storage and management now and into the future," said Pure Storage CEO and Chairman Charles Giancarlo. "Today, enterprise applications are stuck in inflexible legacy systems that lock data in silos. With Purity and Pure Fusion, customers virtualize their storage to create their own Enterprise Data Cloud to unlock their data for business value."
Second听Quarter Financial Highlights
- Revenue
$861.0 million 13% year-over-year - Subscription services revenue
$414.7 million 15% year-over-year - Subscription annual recurring revenue (ARR)
$1.8 billion 18% year-over-year - Remaining performance obligations (RPO)
$2.8 billion 22% year-over-year - GAAP gross margin
70.2% ; non-GAAP gross margin72.1% - GAAP operating income
$4.9 million $130.0 million - GAAP operating margin
0.6% ; non-GAAP operating margin15.1% - Operating cash flow
$212.2 million $150.1 million - Total cash, cash equivalents, and marketable securities
$1.5 billion - Returned approximately
$42 million
"Pure Storage exceeded both its revenue and operating profit guidance in the second quarter, reflecting strong customer adoption of our platform strategy," said Pure Storage CFO Tarek Robbiati. "Looking ahead, we remain committed to executing on our strategic priorities to drive profitable growth and maintaining the flexibility to navigate evolving market conditions."
Second听Quarter Company Highlights
- A New Architectural Approach for Data & Storage Management
- Introduced the听, an industry-changing architecture that transforms how organizations store and manage their data. Enabled by Pure Fusion, EDC sets a new standard for simplicity in intelligent and autonomous data and storage management, enabling organizations to prioritize business outcomes by abstracting away infrastructure.
- Introduced the听, an industry-changing architecture that transforms how organizations store and manage their data. Enabled by Pure Fusion, EDC sets a new standard for simplicity in intelligent and autonomous data and storage management, enabling organizations to prioritize business outcomes by abstracting away infrastructure.
- Accelerating Innovation with Next-Generation Products听
- Expanded Pure Storage's portfolio with听, including FlashArray//XL, FlashArray//ST, and FlashBlade//S, built to support high-performance and scalable workloads across diverse enterprise use cases and offering unified block, file, and object storage capabilities.
- Expanded Pure Storage's portfolio with听, including FlashArray//XL, FlashArray//ST, and FlashBlade//S, built to support high-performance and scalable workloads across diverse enterprise use cases and offering unified block, file, and object storage capabilities.
- Enhancing Efficiency and Resilience
- , a virtualization-centric storage solution for Kubernetes, enabling more cost-effective and simplified management of VM workloads using Red Hat OpenShift Virtualization Engine.
- , a virtualization-centric storage solution for Kubernetes, enabling more cost-effective and simplified management of VM workloads using Red Hat OpenShift Virtualization Engine.
- Industry Recognition & Accolades
- Listed in Fortune's听Best Workplaces in the Bay Area鈩� 2025 and .
- Named one of America's Greatest Workplaces 2025 by听.
- Recognized as part of听DBTA's 100 2025: The Companies That Matter Most in Data.
- Recognized as part of听CRN's Top 25 IT Innovators of 2025.
- Won Gold for Best Certification Program by听: "Pure Storage's IT Professional Certifications: Beyond the Badge".
Third Quarter and FY26 Guidance
Q3FY26 | |
Revenue | |
Revenue YoY Growth Rate | |
Non-GAAP Operating Income | |
Non-GAAP Operating Income YoY Growth Rate | |
听
FY26 | ||
Prior Guidance | New Guidance | |
Revenue | ||
Revenue YoY Growth Rate | 11听% | |
Non-GAAP Operating Income | ||
Non-GAAP Operating Income YoY Growth Rate | 6听% | |
These statements are forward-looking and actual results may differ materially. Refer to the Forward Looking Statements section below for information on the factors that could cause our actual results to differ materially from these statements. Pure has not reconciled its guidance for non-GAAP operating income and non-GAAP operating income year-over-year growth rate to their most directly comparable GAAP measures because certain items that impact these measures are not within Pure's control and/or cannot be reasonably predicted. Accordingly, reconciliations of these non-GAAP financial measures guidance to the corresponding GAAP measures are not available without unreasonable effort.
Conference Call Information
Pure will host a teleconference to discuss the second quarter fiscal 2026 results at 2:00 pm PT today, August 27, 2025. A live audio broadcast of the conference call will be available on the . Pure will also post its earnings presentation and prepared remarks to this website concurrent with this release.
A replay will be available following the call on the Pure Storage Investor Relations website or for two weeks at 1-800-770-2030 (or 1-647-362-9199 for international callers) with passcode 5667482.
Additionally, Pure is scheduled to participate in a:
Product & Technology-Focused Meeting for Financial Analysts at Pure//Accelerate NYC
Date: Thursday, September 25, 2025
Register for Pure//Accelerate庐 2025 and rethink what is possible. Join us on Thursday, September 25, 2025, in
The financial analyst meeting presentation will be webcast live and archived on the Pure Storage Investor Relations website at .
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About Pure Storage
Pure Storage (NYSE: PSTG) delivers the industry's most advanced data storage platform to store, manage, and protect the world's data at any scale. With Pure Storage, organizations have ultimate simplicity and flexibility, saving time, money, and energy. From AI to archive, Pure Storage delivers a cloud experience with one unified Storage as-a-Service platform across on premises, cloud, and hosted environments. Our platform is built on our Evergreen architecture that evolves with your business 鈥� always getting newer and better with zero planned downtime, guaranteed. Our customers are actively increasing their capacity and processing power while significantly reducing their carbon and energy footprint. It's easy to fall in love with Pure Storage, which is why we've received one of the highest Net Promoter Scores in the industry across the years. For more information, visit听.
Connect with Pure
Pure Storage, the Pure P Logo, Portworx, and the marks on the Pure Storage Trademark List are trademarks or registered trademarks of Pure Storage Inc. in the
Forward Looking Statements
This press release contains forward-looking statements regarding our products, business and operations, including but not limited to our views relating to our opportunity relating to hyperscale and AI environments, our ability to meet hyperscalers' performance and price requirements, our ability to expand with our current hyperscale customer and to land new hyperscale customers, our ability to meet the needs of hyperscalers for the entire spectrum of their online storage use cases, the timing and magnitude of large orders, including sales to hyperscalers, the timing and amount of revenue from hyperscaler licensing and support services, future period financial and business results, demand for our products and subscription services, including Evergreen//One, the relative sales mix between our subscription and consumption offerings and traditional capital expenditure sales, our technology and product strategy, specifically ongoing development and customer adoption of new products and the Enterprise Data Cloud architecture (including Pure Fusion鈩�), priorities around sustainability and energy saving benefits to our customers of using our products, our ability to perform during current macro conditions and expand market share, our sustainability goals and benefits, the impact of inflation, currency fluctuations, tariffs, economic or supply chain disruptions, our expectations regarding our product and technology differentiation, new technology investments and partnerships, and other statements regarding our products, business, operations and results. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements.
Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings and reports with the
Key Performance Metrics
Subscription ARR is a key business metric that refers to total annualized contract value of all active subscription agreements on the last day of the quarter, plus on-demand revenue for the quarter multiplied by four.
Total Contract Value (TCV) Sales, or bookings, of Pure's Evergreen//One and similar consumption- and subscription-based offerings is an operating metric, representing the value of orders received during the period.
Non-GAAP Financial Measures
To supplement our unaudited condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, Pure uses the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, and free cash flow.
We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses such as stock-based compensation expense,听payroll tax expense related to stock-based activities, amortization of debt issuance costs related to debt, amortization of intangible assets acquired from acquisitions, restructuring costs related to severance and termination benefits, costs associated with the impairment and early exit of certain leased facilities, and unrealized gains and losses from mark-to-market adjustments on strategic investments that may not be indicative of our ongoing core business operating results. Pure believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and planning, forecasting, and analyzing future periods. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.
For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned "Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures" and "Reconciliation from net cash provided by operating activities to free cash flow," included at the end of this release.
PURE STORAGE, INC. | ||||
Condensed Consolidated Balance Sheets | ||||
(in thousands, unaudited) | ||||
At the End of | ||||
Second Quarter of | Fiscal 2025 | |||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | $听听听听听听听听听听听听听听 887,849 | $听听听听听听听听听听听听听听 723,583 | ||
Marketable securities | 649,661 | 798,237 | ||
Accounts receivable, net of allowance of | 530,481 | 680,862 | ||
Inventory | 46,812 | 42,810 | ||
Deferred commissions, current | 104,795 | 99,286 | ||
Prepaid expenses and other current assets | 305,140 | 222,501 | ||
Total current assets | 2,524,738 | 2,567,279 | ||
Property and equipment, net | 544,119 | 461,731 | ||
Operating lease right-of-use-assets | 191,202 | 146,655 | ||
Deferred commissions, non-current | 235,220 | 229,334 | ||
Intangible assets, net | 11,143 | 19,074 | ||
Goodwill | 361,427 | 361,427 | ||
Restricted cash | 19,770 | 12,553 | ||
Other assets, non-current | 138,918 | 165,889 | ||
Total assets | $听听听听听听听听听听 4,026,537 | $听听听听听听听听听听 3,963,942 | ||
Liabilities and Stockholders' Equity | ||||
Current liabilities: | ||||
Accounts payable | $听听听听听听听听听听听听听听 112,162 | $听听听听听听听听听听听听听听 112,385 | ||
Accrued compensation and benefits | 212,869 | 230,040 | ||
Accrued expenses and other liabilities | 156,720 | 156,791 | ||
Operating lease liabilities, current | 46,460 | 43,489 | ||
Deferred revenue, current | 1,006,197 | 953,836 | ||
Debt, current | 鈥� | 100,000 | ||
Total current liabilities | 1,534,408 | 1,596,541 | ||
Operating lease liabilities, non-current | 176,253 | 137,277 | ||
Deferred revenue, non-current | 904,867 | 841,467 | ||
Other liabilities, non-current | 92,188 | 82,182 | ||
Total liabilities | 2,707,716 | 2,657,467 | ||
Stockholders' equity: | ||||
Common stock and additional paid-in capital | 2,652,794 | 2,674,533 | ||
Accumulated other comprehensive income | 1,916 | 954 | ||
Accumulated deficit | (1,335,889) | (1,369,012) | ||
Total stockholders' equity | 1,318,821 | 1,306,475 | ||
Total liabilities and stockholders' equity | $听听听听听听听听听听 4,026,537 | $听听听听听听听听听听 3,963,942 | ||
听
PURE STORAGE, INC. | |||||||
Condensed Consolidated Statements of Operations | |||||||
(in thousands, except per share data, unaudited) | |||||||
Second听Quarter of Fiscal | First Two Quarters of Fiscal | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Revenue: | |||||||
Product | $听听听听听 446,303 | $听听听听听 402,595 | $听听听听听 818,447 | $听听听听听 749,979 | |||
Subscription services | 414,699 | 361,176 | 821,040 | 707,271 | |||
Total revenue | 861,002 | 763,771 | 1,639,487 | 1,457,250 | |||
Cost of revenue: | |||||||
Product (1) | 150,296 | 129,723 | 291,346 | 230,476 | |||
Subscription services (1) | 106,370 | 93,968 | 207,652 | 190,988 | |||
Total cost of revenue | 256,666 | 223,691 | 498,998 | 421,464 | |||
Gross profit | 604,336 | 540,080 | 1,140,489 | 1,035,786 | |||
Operating expenses: | |||||||
Research and development (1) | 242,026 | 195,490 | 463,766 | 389,310 | |||
Sales and marketing (1) | 285,890 | 250,267 | 564,402 | 501,239 | |||
General and administrative (1) | 71,549 | 69,445 | 138,621 | 146,232 | |||
Restructuring and impairment (2) | 鈥� | 鈥� | 鈥� | 15,901 | |||
Total operating expenses | 599,465 | 515,202 | 1,166,789 | 1,052,682 | |||
Income (loss) from operations | 4,871 | 24,878 | (26,300) | (16,896) | |||
Other income (expense), net | 45,700 | 19,437 | 77,355 | 33,528 | |||
Income before provision for income taxes | 50,571 | 44,315 | 51,055 | 16,632 | |||
Income tax provision | 3,453 | 8,641 | 17,932 | 15,967 | |||
Net income | $听听听听听听听 47,118 | $听听听听听听听 35,674 | $听听听听听听听 33,123 | $听听听听听听听听听听听听听 665 | |||
Net income per share attributable to common stockholders, basic | $听听听听听听听听听听听听 0.14 | $听听听听听听听听听听听听 0.11 | $听听听听听听听听听听听听 0.10 | $听听听听听听听听听听听听 0.00 | |||
Net income per share attributable to common stockholders, diluted | $听听听听听听听听听听听听 0.14 | $听听听听听听听听听听听听 0.10 | $听听听听听听听听听听听听 0.10 | $听听听听听听听听听听听听 0.00 | |||
Weighted-average shares used in computing net income per share attributable to common stockholders, basic | 327,594 | 326,326 | 327,066 | 324,458 | |||
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted | 337,734 | 343,443 | 337,306 | 341,509 | |||
(1) Includes stock-based compensation expense as follows: | |||||||
Cost of revenue -- product | $听听听听听听听听听听 4,149 | $听听听听听听听听听听 3,445 | $听听听听听听听听听听 7,415 | $听听听听听听听听听听 6,227 | |||
Cost of revenue -- subscription services | 8,559 | 7,961 | 15,721 | 16,832 | |||
Research and development | 60,354 | 50,869 | 109,596 | 101,163 | |||
Sales and marketing | 26,527 | 24,418 | 48,611 | 47,937 | |||
General and administrative | 17,804 | 18,197 | 32,325 | 45,725 | |||
Total stock-based compensation expense | $听听听听听 117,393 | $听听听听听 104,890 | $听听听听听 213,668 | $听听听听听 217,884 | |||
(2) Includes expenses for severance and termination benefits related to workforce realignment and lease impairment and abandonment charges associated with cease-use of our former corporate headquarters. |
听
PURE STORAGE, INC. | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(in thousands, unaudited) | |||||||
Second Quarter of Fiscal | First Two Quarters of Fiscal | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Cash flows from operating activities | |||||||
Net income | $听听听听听听听听听 47,118 | $听听听听听听听听听 35,674 | $听听听听听听听听听 33,123 | $听听听听听听听听听听听听听听 665 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 35,927 | 35,884 | 69,697 | 69,827 | |||
Stock-based compensation expense | 117,393 | 104,890 | 213,668 | 217,884 | |||
Noncash portion of lease impairment and abandonment | 鈥� | 鈥� | 鈥� | 3,270 | |||
Unrealized gain on strategic investment | (27,966) | 鈥� | (30,401) | 鈥� | |||
Other | 3,887 | 1,120 | 7,027 | 2,726 | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net | (119,161) | 6,953 | 150,381 | 245,721 | |||
Inventory | (14,937) | (4,956) | (12,268) | (6,661) | |||
Deferred commissions | (7,738) | (1,554) | (11,395) | 6,153 | |||
Prepaid expenses and other assets | (13,961) | (17,787) | (33,401) | (27,006) | |||
Operating lease right-of-use assets | 11,561 | 8,406 | 19,958 | 16,528 | |||
Accounts payable | 23,845 | 13,423 | (3,146) | (13,158) | |||
Accrued compensation and other liabilities | 84,945 | 30,392 | 602 | (78,732) | |||
Operating lease liabilities | (12,275) | (8,031) | (23,513) | (18,257) | |||
Deferred revenue | 83,519 | 22,183 | 115,761 | 29,137 | |||
Net cash provided by operating activities | 212,157 | 226,597 | 496,093 | 448,097 | |||
Cash flows from investing activities | |||||||
Purchases of property and equipment (1) | (62,027) | (60,035) | (134,373) | (108,853) | |||
Purchase of strategic investments | 鈥� | (1,081) | 鈥� | (6,081) | |||
Purchases of marketable securities and other | (141,232) | (104,247) | (256,128) | (264,370) | |||
Sales of marketable securities | 252,780 | 10,735 | 270,987 | 48,424 | |||
Maturities of marketable securities | 80,254 | 70,127 | 137,507 | 197,984 | |||
Net cash provided by (used in) investing activities | 129,775 | (84,501) | 17,993 | (132,896) | |||
Cash flows from financing activities | |||||||
Proceeds from exercise of stock options | 8,099 | 4,545 | 13,458 | 17,768 | |||
Proceeds from issuance of common stock under employee stock purchase plan | 鈥� | 鈥� | 27,240 | 25,328 | |||
Payments of deferred financing costs for revolving credit facility | (2,080) | 鈥� | (2,080) | 鈥� | |||
Principal payments on borrowings and finance lease obligations | (100,000) | (2,836) | (101,125) | (3,935) | |||
Tax withholding on vesting of equity awards | (56,161) | (74,208) | (117,461) | (86,686) | |||
Repurchases of common stock | (42,242) | 鈥� | (162,178) | 鈥� | |||
Net cash used in financing activities | (192,384) | (72,499) | (342,146) | (47,525) | |||
Net increase in cash, cash equivalents and restricted cash | 149,548 | 69,597 | 171,940 | 267,676 | |||
Cash, cash equivalents and restricted cash, beginning of period | 760,142 | 910,210 | 737,750 | 712,131 | |||
Cash, cash equivalents and restricted cash, end of period | $听听听听听听 909,690 | $听听听听听听 979,807 | $听听听听听听 909,690 | $听听听听听听 979,807 | |||
(1) Includes capitalized internal-use software costs of |
听
Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures | ||||||||||||||||||||||||
The following table presents non-GAAP gross margins by revenue source before certain items (in thousands except percentages, unaudited): | ||||||||||||||||||||||||
Second听Quarter of Fiscal 2026 | Second听Quarter of Fiscal 2025 | |||||||||||||||||||||||
GAAP results | GAAP gross margin (a) | Adjustment | Non- GAAP results | Non- GAAP gross margin (b) | GAAP results | GAAP gross margin (a) | Adjustment | Non- GAAP results | Non- GAAP gross margin (b) | |||||||||||||||
$听听听听听 4,149 | (c) | $听听听听听 3,445 | (c) | |||||||||||||||||||||
127 | (d) | 224 | (d) | |||||||||||||||||||||
3,306 | (e) | 3,306 | (e) | |||||||||||||||||||||
Gross profit --product | $听 296,007 | 66.3听% | $听听听听听 7,582 | $听 303,589 | 68.0听% | $听 272,872 | 67.8听% | $听听听听听 6,975 | $听 279,847 | 69.5听% | ||||||||||||||
$听听听听听 8,559 | (c) | $听听听听听 7,961 | (c) | |||||||||||||||||||||
466 | (d) | 658 | (d) | |||||||||||||||||||||
Gross profit -- | $听 308,329 | 74.4听% | $听听听听听 9,025 | $听 317,354 | 76.5听% | $听 267,208 | 74.0听% | $听听听听听 8,619 | $听 275,827 | 76.4听% | ||||||||||||||
$听听听 12,708 | (c) | $听听听 11,406 | (c) | |||||||||||||||||||||
593 | (d) | 882 | (d) | |||||||||||||||||||||
3,306 | (e) | 3,306 | (e) | |||||||||||||||||||||
Total gross profit | $听 604,336 | 70.2听% | $听听听 16,607 | $听 620,943 | 72.1听% | $听 540,080 | 70.7听% | $听听听 15,594 | $听 555,674 | 72.8听% | ||||||||||||||
(a) GAAP gross margin is defined as GAAP gross profit divided by revenue. |
(b) Non-GAAP gross margin is defined as non-GAAP gross profit divided by revenue. |
(c) To eliminate stock-based compensation expense. |
(d) To eliminate payroll tax expense related to stock-based activities. |
(e) To eliminate amortization expense of acquired intangible assets. |
听
The following table presents certain non-GAAP consolidated results before certain items (in thousands, except per share amounts and percentages, unaudited): | ||||||||||||||||||||||
Second听Quarter of Fiscal 2026 | Second听Quarter of Fiscal 2025 | |||||||||||||||||||||
GAAP results | GAAP operating margin (a) | Adjustment | Non- GAAP results | Non- GAAP operating margin (b) | GAAP results | GAAP operating margin (a) | Adjustment | Non- GAAP results | Non- GAAP operating margin (b) | |||||||||||||
$听 117,393 | (c) | $听 104,890 | (c) | |||||||||||||||||||
4,164 | (d) | 5,292 | (d) | |||||||||||||||||||
3,536 | (e) | 3,536 | (e) | |||||||||||||||||||
Operating income | $听听听听 4,871 | 0.6听% | $听 125,093 | 15.1听% | $听听 24,878 | 3.3听% | $听 113,718 | 18.1听% | ||||||||||||||
$听 117,393 | (c) | $听 104,890 | (c) | |||||||||||||||||||
4,164 | (d) | 5,292 | (d) | |||||||||||||||||||
3,536 | (e) | 3,536 | (e) | |||||||||||||||||||
230 | (f) | 153 | (f) | |||||||||||||||||||
(27,966) | (g) | 鈥� | ||||||||||||||||||||
Net income | $听听 47,118 | $听听听 97,357 | $听听 35,674 | $听 113,871 | ||||||||||||||||||
Net income per share -- diluted | $听听听听听听 0.14 | $听听听听听听 0.43 | $听听听听听听 0.10 | $听听听听听听 0.44 | ||||||||||||||||||
Weighted- | 337,734 | 鈥� | 337,734 | 343,443 | 鈥� | 343,443 | ||||||||||||||||
(a) GAAP operating margin is defined as GAAP operating income divided by revenue. |
(b) Non-GAAP operating margin is defined as non-GAAP operating income divided by revenue. |
(c) To eliminate stock-based compensation expense. |
(d) To eliminate payroll tax expense related to stock-based activities. |
(e) To eliminate amortization expense of acquired intangible assets. |
(f) To eliminate amortization expense of debt issuance costs related to our debt. |
(g) To eliminate unrealized gain from mark-to-market adjustment on strategic investment. |
听
Reconciliation from net cash provided by operating activities to free cash flow (in thousands except percentages, unaudited): | |||
Second听Quarter of Fiscal | |||
2026 | 2025 | ||
Net cash provided by operating activities | $听听听听听听听听听听听听听听 212,157 | $听听听听听听听听听听听听听听 226,597 | |
Less: purchases of property and equipment (1) | (62,027) | (60,035) | |
Free cash flow (non-GAAP) | $听听听听听听听听听听听听听听 150,130 | $听听听听听听听听听听听听听听 166,562 | |
(1) Includes capitalized internal-use software costs of |
听
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