Nutanix delivered a solid Q2 2025 performance with meaningful top-line growth and robust cash generation, underscoring the strength of its enterprise cloud platform thesis. Revenue for QQ2 2025 was 654.7 million USD, up 15.8% year over year and 10.8% quarter over quarter, supported by a high gross margin of about 87% and a positive operating trajectory. Net income of 56.4 million USD and EPS of 0.21 (0.19 diluted) reflect ongoing profitability improvements as the company continues to monetize its software and cloud governance offerings. Free cash flow reached 187.1 million USD, with operating cash flow of 221.7 million USD, highlighting a healthy cash conversion cycle and substantial liquidity position (cash and short-term investments totaling ~1.74 billion USD).
Key Performance Indicators
Revenue
Increasing
654.72M
QoQ: 10.79% | YoY: 15.83%
Gross Profit
Increasing
569.43M
86.97% margin
QoQ: 12.03% | YoY: 17.75%
Operating Income
Increasing
65.44M
QoQ: 140.14% | YoY: 76.64%
Net Income
Increasing
56.43M
QoQ: 88.56% | YoY: 72.06%
EPS
Increasing
0.21
QoQ: 90.91% | YoY: 61.54%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: 654.72m (YoY +15.83%, QoQ +10.79%)
Gross Profit: 569.43m (YoY +17.75%, QoQ +12.03%)
Operating Income: 65.44m (YoY +76.64%, QoQ +140.14%)
Net Income: 56.43m (YoY +72.06%, QoQ +88.56%)
EPS: 0.21 (Diluted 0.19; YoY EPS +61.54%, QoQ +90.91%)
EBITDA: 85.00m; EBITDA Margin: 12.98%
Gross Margin: ~86.97%
Operating Margin: ~9.99%
Net Margin: ~8.62%
Free Cash Flow: 187.06m; Operating Cash Flow: 221.67m; Cumulative cash at period end: 1.072b
Total cash & equivalents + short-term investments: 1.742b
Net debt: 393.55m; Total debt: 1.4657b; Cash position robust but equity remains negative at -0.808b
Current ratio: 1.656; Quick ratio: 1.656; Cash ratio: 0.814
Total assets: 2.989b; Total liabilities: 3.797b; Total stockholders’ equity: -0.808b (negative due to accumulated deficits despite quarterly profit)
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
654.72M
15.83%
10.79%
Gross Profit
569.43M
17.75%
12.03%
Operating Income
65.44M
76.64%
140.14%
Net Income
56.43M
72.06%
88.56%
EPS
0.21
61.54%
90.91%
Key Financial Ratios
Gross Profit Margin
Excellent
87.00%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Fair
9.99%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
8.62%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
1.89%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.07%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.66
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
-1.82
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
High Growth
82.10x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
Undervalued
-22.94x
Trading below book value, potential value opportunity or distressed
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