Executive Summary
Nutanix delivered a solid QQ3 2025 performance with strong gross margins and meaningful profitability, underpinned by robust free cash flow generation. Revenue rose 21.8% year over year to $638.98 million, while quarterly sequential growth moderated with a 2.4% QoQ decline. The company reported an operating income of $48.65 million and net income of $63.36 million, translating to an implied net margin near 9.9% and an EPS of $0.24 (non-diluted) / $0.22 (diluted). Free cash flow for the quarter stood at $203.41 million, and net cash provided by operating activities was $218.51 million, highlighting healthy cash-generation capability despite a sizable investment program. At quarter-end, Nutanix held $872.63 million in cash and equivalents, with total debt of $1.50 billion and net debt of approximately $623 million, reflecting a conservative liquidity stance alongside an elevated leverage profile. Deferred revenue remains substantial at roughly $2.03 billion (current + non-current), signaling durable subscription and multi-year ARR in place as the company advances its hybrid cloud governance and automation platform. However, the balance sheet shows negative stockholders’ equity (-$711.4 million) driven by large goodwill/intangible assets, implying the potential for impairment risk and ongoing sensitivity to amortization and impairment charges. The QQ3 results underscore Nutanix’s continued progress on its transition to a software-plus-services model, with a focus on expanding multi-cloud capabilities and automation across Prism Pro, Karbon, Frame, and related offerings. Investors should monitor the cadence of ARR growth, the sustainability of high gross margins, balance sheet optimization, and competitive dynamics in the enterprise cloud space.
Key Performance Indicators
QoQ: -25.66% | YoY:519.79%
QoQ: 12.29% | YoY:505.76%
QoQ: 14.29% | YoY:477.95%
Key Insights
Revenue: $638.98M, YoY +21.81%, QoQ -2.40% ; Gross Profit: $555.99M, Gross Margin 87.01% (YoY +24.98%, QoQ -2.36%); Operating Income: $48.65M, Operating Margin 7.61% (YoY +519.79%, QoQ -25.66%); Net Income: $63.36M, Net Margin 9.92% (YoY +505.76%, QoQ +12.29%); EPS (Diluted): $0.22; Weighted Avg Shares Diluted: 296.804M; OCF: $218.51M; Free Cash Flow: $203.41M; Capex: $15.10M; Cash at End of Period: $872.63M; Net Debt: $622.98M; Total Debt: $1,495.58M; Cash & Short-Term Investments: $1,882.4...
Financial Highlights
Revenue: $638.98M, YoY +21.81%, QoQ -2.40% ; Gross Profit: $555.99M, Gross Margin 87.01% (YoY +24.98%, QoQ -2.36%); Operating Income: $48.65M, Operating Margin 7.61% (YoY +519.79%, QoQ -25.66%); Net Income: $63.36M, Net Margin 9.92% (YoY +505.76%, QoQ +12.29%); EPS (Diluted): $0.22; Weighted Avg Shares Diluted: 296.804M; OCF: $218.51M; Free Cash Flow: $203.41M; Capex: $15.10M; Cash at End of Period: $872.63M; Net Debt: $622.98M; Total Debt: $1,495.58M; Cash & Short-Term Investments: $1,882.47M; Deferred Revenue (Current + Non-Current): ~$2,029.20M; Total Assets: $3,096.63M; Total Liabilities: $3,808.06M; Total Stockholders’ Equity: -$711.43M; ROIC/ROE not disclosed in data.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
638.98M |
21.81% |
-2.40% |
| Gross Profit |
555.99M |
24.98% |
-2.36% |
| Operating Income |
48.65M |
519.79% |
-25.66% |
| Net Income |
63.36M |
505.76% |
12.29% |
| EPS |
0.24 |
477.95% |
14.29% |
Management Commentary
Transcript not provided in the dataset. No direct management quotes or thematic notes from the QQ3 2025 earnings call are available in the provided inputs. The following highlights are therefore based on the disclosed financials and typical earnings-call themes seen in Nutanix communications: (1) Strategy focus on multi-cloud governance, automation, and Kubernetes-enabled environments; (2) Emphasis on ARR durability via deferred revenue and product stickiness (Prism Pro, Frame, Era, and Clusters offerings); (3) Emphasis on cash generation and balance-sheet strength, balanced against leverage and balance-sheet goodwill.
Forward Guidance
No explicit numeric forward guidance was provided in the supplied dataset. Given the QQ3 2025 cadence, the company showed a solid revenue trajectory with 21.8% YoY growth and a strong gross margin profile, alongside robust free cash flow generation. Scenarios: Base case assumes continued mid-to-high single-digit ARR growth with steady gross margins around 85–88% and operating leverage emerging as scale increases, potentially driving mid-to-high single-digit operating margins. Upside case could stem from accelerating adoption of Prism Pro and Frame, deeper multi-cloud governance contracts, and higher ARR retention translating into sustained high gross margins and improving operating income. Key factors to monitor: trajectory of ARR and deferred revenue mix, customer acquisition/retention in large enterprise segments, cadence of R&D investment versus monetization of existing products, debt management and potential refinancings, and competitive dynamics in enterprise cloud and virtualization markets.