Pure Storage reported QQ1 2026 revenue of $778.5 million, up 1.93% year over year but down 11.5% quarter over quarter, reflecting seasonality and mix shifts as the company accelerates its pivot toward subscription/recurring revenue. Gross profit was $536.2 million with a margin of 68.9%, while operating income came in at a loss of $31.2 million and EBITDA was $36.1 million (EBITDA margin approximately 4.6%). Net income was negative at $14.0 million, or a loss per share of $0.04. The company generated $283.9 million in operating cash flow and $211.6 million of free cash flow, delivering a healthy cash conversion even as profitability remains under pressure from elevated R&D and SG&A spend. Cash and cash equivalents stood at $739.3 million, and total cash and short-term investments were $1.579 billion, yielding a net cash position of about $468 million. Deferred revenue remains sizeable, with current deferred revenue of $999.6 million and non-current deferred revenue of $858.2 million, underscoring a strong subscription pipeline and visibility into future revenue streams. The quarter highlighted Pure Storage’s continued investment in the core Flash portfolio, cloud-enabled offerings, and AI-ready infrastructure while balancing near-term profitability with long-term product and platform investments. The balance sheet remains robust, supporting ongoing R&D, product expansion, and cloud/storage initiatives. Investors should monitor: (1) the evolution of the subscription mix and ARR growth, (2) the trajectory of operating margins as scale and efficiency gains materialize, (3) the pace of free cash flow expansion, and (4) the management’s commentary on demand trends and product-cycle dynamics in a competitive storage market.