Executive Summary
Pure Storage delivered a solid QQ4 2025 performance, with revenue of $879.8 million, up 15.2% year over year, and a continuing high gross margin of 67.5%. Operationally, the company generated $42.5 million in operating income and $42.4 million in net income, translating to an EPS of $0.13 for the quarter. The company’s cash flow profile remained exceptionally strong, with $208.0 million of cash flow from operations and $151.9 million in free cash flow, supported by a substantial cash and short-term investment position (~$1.52 billion) and a net cash balance (net debt negative) of approximately $442.8 million. Deferred revenue stood at $953.8 million, signaling durable revenue visibility from software and services offerings, including Evergreen Storage, Purity software, and Cloud/NAS capabilities. Management commentary continues to emphasize software-led growth, AI-ready infrastructure (AIRI), and multi-cloud data services as key growth pillars, while maintaining disciplined cost control as R&D remains a meaningful expense to sustain product leadership.
Key Performance Indicators
Key Insights
Revenue: $879.8M, up 15.2% YoY; Gross Margin: 67.5%; Operating Margin: 4.83%; Net Margin: 4.82%; EBITDA: $42.43M (margin ~4.8%); EPS: $0.13 (GAAP), Diluted EPS $0.12; Cash from operations: $208.0M; Free cash flow: $151.9M; Capex: $56.1M; Net cash position: roughly -$442.8M (net cash); Deferred revenue: $953.8M; Current ratio: 1.61; Quick ratio: 1.58; Cash & investments: $1.521B; Total assets: $3.964B; Total liabilities & equity: $3.964B; Revenue YoY: +15.2%, Net income YoY: +18.95%, EPS ...
Financial Highlights
Revenue: $879.8M, up 15.2% YoY; Gross Margin: 67.5%; Operating Margin: 4.83%; Net Margin: 4.82%; EBITDA: $42.43M (margin ~4.8%); EPS: $0.13 (GAAP), Diluted EPS $0.12; Cash from operations: $208.0M; Free cash flow: $151.9M; Capex: $56.1M; Net cash position: roughly -$442.8M (net cash); Deferred revenue: $953.8M; Current ratio: 1.61; Quick ratio: 1.58; Cash & investments: $1.521B; Total assets: $3.964B; Total liabilities & equity: $3.964B; Revenue YoY: +15.2%, Net income YoY: +18.95%, EPS YoY: +18.18% (where data permits); FCF yield: ~17.3% of revenue.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
879.84M |
15.20% |
0.00% |
| Gross Profit |
594.00M |
9.98% |
0.00% |
| Operating Income |
42.47M |
70.70% |
0.00% |
| Net Income |
42.44M |
18.95% |
0.00% |
| EPS |
0.13 |
18.18% |
0.00% |
Key Financial Ratios
operatingProfitMargin
4.83%
operatingCashFlowPerShare
$0.64
freeCashFlowPerShare
$0.47
priceEarningsRatio
118.16
Management Commentary
Transcript data not provided in the input. No management quotes are available from the QQ4 2025 earnings call in the supplied data. The following themes are based on the resulting quantitative outcomes and common investor focus areas for Pure Storage: (1) Strategy: emphasis on software-defined data services (Purity software, Evergreen Storage) and AI-ready infrastructure (AIRI) to monetize a recurring revenue stream; (2) Operations: solid gross margin and positive operating income indicate operating leverage as software/automation components scale; (3) Market Conditions: favorable demand for AI workloads and multi-cloud data management supports continued revenue growth, though macro headwinds and competitive intensity remain relevant.
Forward Guidance
There is no explicit forward guidance provided in the supplied data for Pure Storage QQ4 2025. Based on the quarter's results and industry trends, the following forward-looking assessment is prudent: (a) Revenue trajectory: mid- to high-teens growth remains plausible given continued demand for AI-ready storage, multi-cloud data services, and Portworx adoption in Kubernetes environments. (b) Margins: gross margin should remain elevated around or above the current ~67.5% due to software-leaning mix, with operating margins potentially expanding modestly if operating leverage from scale continues and SG&A efficiency improves. (c) Cash flow: sustaining strong operating cash flow with healthy FCF generation supported by high deferred revenue and recurring revenue mix; watch for working capital dynamics related to subscription inflows. (d) Capital allocation: ongoing balance between reinvestment in R&D and selective share repurchases; the observed share repurchases (~$192M) signal management confidence in long-term cash generation. Key factors to monitor include subscription growth, renewal rates on Evergreen offerings, AI workload adoption, and competitive intensity with other primary storage vendors.) ,