Nutanix Reports Fourth Quarter and Fiscal 2025 Financial Results
Reports 18% YoY Revenue Growth and Strong Free Cash Flow for Fiscal 2025
Delivers Outperformance Across All Guided Metrics
SAN JOSE, Calif., Aug. 27, 2025 (GLOBE NEWSWIRE) -- Nutanix, Inc. (NASDAQ:NTNX), a leader in hybrid multicloud computing, today announced financial results for its fourth quarter and fiscal year ended July 31, 2025.
"Our fourth quarter was a good finish to a fiscal year in which we delivered high-teens top line growth and added over 2,700 new customers," said Rajiv Ramaswami, President and CEO of Nutanix. "In fiscal 2025, we also made progress with respect to partnerships, signing new or enhanced agreements with AWS, Pure Storage, NVIDIA and Google, and continued to innovate across our cloud platform, including modern applications and AI."
"Our fiscal 2025 results demonstrated a good balance of top and bottom line performance with 18% year-over-year revenue growth and strong free cash flow generation," said Rukmini Sivaraman, CFO of Nutanix. "These results drove a Rule of 401 score of 48, our second year in a row above 40."
Fourth Quarter Fiscal 2025 Financial Summary
Q4 FY'25
Q4 FY'24
Y/Y Change
Annual Recurring Revenue (ARR)2
$2.22 billion
$1.91 billion
17%
Average Contract Duration3
3.2 years
3.1 years
0.1 year
Revenue
$653.3 million
$548.0 million
19%
GAAP Gross Margin
87.2%
85.2%
200 bps
Non-GAAP Gross Margin
88.3%
86.9%
140 bps
GAAP Operating Expenses
$538.2 million
$479.2 million
12%
Non-GAAP Operating Expenses
$457.2 million
$405.5 million
13%
GAAP Operating Income (Loss)
$31.2 million
$(12.2) million
$43.4 million
Non-GAAP Operating Income
$119.5 million
$70.5 million
$49.0 million
GAAP Operating Margin
4.8%
(2.2)%
700 bps
Non-GAAP Operating Margin
18.3%
12.9%
540 bps
Net Cash Provided by Operating Activities
$219.5 million
$244.7 million
$(25.2) million
Free Cash Flow
$207.8 million
$224.3 million
$(16.5) million
Fiscal 2025 Financial Summary
FY'25
FY'24
Y/Y Change
Annual Recurring Revenue (ARR)2
$2.22 billion
$1.91 billion
17%
Average Contract Duration3
3.1 years
3.0 years
0.1 year
Revenue
$2.54 billion
$2.15 billion
18%
GAAP Gross Margin
86.8%
84.9%
190 bps
Non-GAAP Gross Margin
88.1%
86.7%
140 bps
GAAP Operating Expenses
$2.03 billion
$1.82 billion
12%
Non-GAAP Operating Expenses
$1.70 billion
$1.52 billion
12%
GAAP Operating Income
$172.5 million
$7.6 million
$164.9 million
Non-GAAP Operating Income
$536.1 million
$347.1 million
$189.0 million
GAAP Operating Margin
6.8%
0.4%
640 bps
Non-GAAP Operating Margin
21.1%
16.2%
490 bps
Net Cash Provided by Operating Activities
$821.5 million
$672.9 million
$148.6 million
Free Cash Flow
$750.2 million
$597.7 million
$152.5 million
Reconciliations between GAAP and non-GAAP financial measures and key performance measures, to the extent available, are provided in the tables of this press release.
Recent Company Highlights
Nutanix is Named a Leader in Multicloud Container Platforms Evaluation: Nutanix announced it has been positioned as a Leader in The Forrester Wave™: Multicloud Container Platforms, Q3 2025, following the launch of its Nutanix Kubernetes Platform (NKP) solution at the company's annual .NEXT conference last year.
Nutanix is Named a Challenger in the 2025 Gartner® Magic Quadrant™ for Container Management: Nutanix announced it has been recognized as a Challenger in the 2025 Gartner Magic Quadrant for Container Management following the launch of its NKP solution, marking the company's first recognition in this Magic Quadrant.
Finanz Informatik Signs Long-Term Contract with Nutanix: Nutanix announced that Finanz Informatik, the digitalization partner of the German Savings Bank Finance Group and one of the largest banking-IT service providers in Europe, has entered into a strategic collaboration with Nutanix and signed a long-term contract.
Nutanix Announces Increase to Share Repurchase Authorization: Nutanix announced that its Board of Directors has authorized an increase of $350 million of common stock to the company's existing share repurchase program.
First Quarter Fiscal 2026 Outlook
Revenue
$670 - $680 million
Non-GAAP Operating Margin
19.5% to 20.5%
Weighted Average Shares Outstanding (Diluted)4
Approximately 296 million
Fiscal 2026 Outlook
Revenue
$2.90 - $2.94 billion
Non-GAAP Operating Margin
21% to 22%
Free Cash Flow
$790 - $830 million
Supplementary materials to this press release, including our fourth quarter and fiscal 2025 earnings presentation, can be found at https://ir.nutanix.com/financial/quarterly-results.
Webcast and Conference Call Information
Nutanix executives will discuss the Company's fourth quarter and fiscal 2025 financial results on a conference call today at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time. Interested parties may access the conference call by registering at this link to receive dial in details and a unique PIN number. The conference call will also be webcast live on the Nutanix Investor Relations website at ir.nutanix.com. An archived replay of the webcast will be available on the Nutanix Investor Relations website at ir.nutanix.com shortly after the call.
Footnotes1Rule of 40 is defined as the sum of revenue growth rate and free cash flow margin for the period.
2Annual Recurring Revenue, or ARR, for any given period, is defined as the sum of ACV for all subscription contracts in effect as of the end of a specific period. For the purposes of this calculation, we assume that the contract term begins on the date a contract is booked, unless the terms of such contract prevent us from fulfilling our obligations until a later period, and irrespective of the periods in which we would recognize revenue for such contract. Excludes all life-of-device contracts. ACV is defined as the total annualized value of a contract. The total annualized value for a contract is calculated by dividing the total value of the contract by the number of years in the term of such contract. Excludes amounts related to professional services and hardware. Our methodology for calculating ARR will be updated prospectively beginning with the first quarter of fiscal year ending July 31, 2026 to align it more closely with the timing of when licenses are made available to customers. For more information, please see the Appendix section of our earnings presentation found on our Investor Relations website at ir.nutanix.com.
3Average Contract Duration represents the dollar-weighted term, calculated on a billings basis, across all subscription contracts, as well as our limited number of life-of-device contracts, using an assumed term of five years for life-of-device licenses, executed in the period.
4Weighted average share count used in computing diluted non-GAAP net income per share.
Non-GAAP Financial Measures and Other Key Performance Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, this press release includes the following non-GAAP financial and other key performance measures: non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, free cash flow, Annual Recurring Revenue (or ARR), and Average Contract Duration. In computing non-GAAP financial measures, we exclude certain items such as stock-based compensation and the related income tax impact, costs associated with our acquisitions (such as amortization of acquired intangible assets, income tax-related impact, and other acquisition-related costs), restructuring charges, litigation settlement accruals and legal fees related to certain litigation matters, the amortization and conversion of the debt discount and issuance costs related to debt, interest expense related to debt, inducement expense related to the repurchase of convertible senior notes, and other non-recurring transactions and the related tax impact. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, and non-GAAP operating margin are financial measures which we believe provide useful information to investors because they provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures such as stock-based compensation expense that may not be indicative of our ongoing core business operating results. Free cash flow is a performance measure that we believe provides useful information to our management and investors about the amount of cash generated by the business after capital expenditures, and we define free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment. ARR is a performance measure that we believe provides useful information to our management and investors as it allows us to better track the topline growth of our subscription business because it takes into account variability in term lengths. We use these non-GAAP financial and key performance measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. However, these non-GAAP financial and key performance measures have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, and free cash flow are not substitutes for gross margin, operating expenses, operating income, operating margin, and net cash provided by operating activities, respectively. There is no GAAP measure that is comparable to ARR or Average Contract Duration, so we have not reconciled the ARR or Average Contract Duration data included in this press release to any GAAP measure. In addition, other companies, including companies in our industry, may calculate non-GAAP financial measures and key performance measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures and key performance measures as tools for comparison. We urge you to review the reconciliation of our non-GAAP financial measures and key performance measures to the most directly comparable GAAP financial measures included below in the tables captioned "Reconciliation of GAAP to Non-GAAP Profit Measures" and "Reconciliation of GAAP Net Cash Provided By Operating Activities to Non-GAAP Free Cash Flow," and not to rely on any single financial measure to evaluate our business. This press release also includes the following forward-looking non-GAAP financial measures as part of our first quarter fiscal 2026 outlook and/or our fiscal 2026 outlook: non-GAAP operating margin and free cash flow. We are unable to reconcile these forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures without unreasonable efforts, as we are currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact the GAAP financial measures for these periods but would not impact the non-GAAP financial measures.
Forward-Looking Statements
This press release contains express and implied forward-looking statements, including, but not limited to, statements regarding: our business momentum and prospects, including our continued innovation across our cloud platform, including modern applications and AI; our first quarter fiscal 2026 outlook; and our fiscal 2026 outlook.
These forward-looking statements are not historical facts and instead are based on our current expectations, estimates, opinions, and beliefs. Consequently, you should not rely on these forward-looking statements. The accuracy of these forward-looking statements depends upon future events and involves risks, uncertainties, and other factors, including factors that may be beyond our control, that may cause these statements to be inaccurate and cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by such statements, including, among others: the inherent uncertainty or assumptions and estimates underlying our projections and guidance, which are necessarily speculative in nature; any failure to successfully implement or realize the full benefits of, or unexpected difficulties or delays in successfully implementing or realizing the full benefits of, our business plans, strategies, initiatives, vision, objectives, momentum, prospects and outlook; our ability to achieve, sustain and/or manage future growth effectively; the rapid evolution of the markets in which we compete, including the introduction, or acceleration of adoption of, competing solutions, including public cloud infrastructure; failure to timely and successfully meet our customer needs; delays in or lack of customer or market acceptance of our new solutions, products, services, product features or technology; macroeconomic or geopolitical uncertainty; our ability to attract, recruit, train, retain, and, where applicable, ramp to full productivity, qualified employees and key personnel; factors that could result in the significant fluctuation of our future quarterly operating results (including anticipated changes to our revenue and product mix, the timing and magnitude of orders, shipments and acceptance of our solutions in any given quarter, our ability to attract new and retain existing end-customers, changes in the pricing and availability of certain components of our solutions, and fluctuations in demand and competitive pricing pressures for our solutions); our ability to form new or maintain and strengthen existing strategic alliances and partnerships, as well as our ability to manage any changes thereto; our ability to make share repurchases; and other risks detailed in our Annual Report on Form 10-K for the fiscal year ended July 31, 2024 filed with the U.S. Securities and Exchange Commission, or the SEC, on September 19, 2024 and our subsequent Quarterly Reports on Form 10-Q filed with the SEC. Additional information will be set forth in our Annual Report on Form 10-K for the fiscal year ended July 31, 2025, which should be read in conjunction with this press release and the financial results included herein. Our SEC filings are available on the Investor Relations section of our website at ir.nutanix.com and on the SEC's website at www.sec.gov. These forward-looking statements speak only as of the date of this press release and, except as required by law, we assume no obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any of these forward-looking statements to reflect actual results or subsequent events or circumstances.
About Nutanix
Nutanix is a hybrid multicloud computing leader, offering organizations a secure, unified platform for running applications and AI and managing data anywhere. With Nutanix, organizations can simplify operations for traditional and modern applications, freeing them to focus on business goals. Trusted by more than 29,000 customers worldwide, Nutanix helps empower organizations to transform digitally and power hybrid multicloud environments consistently, simply, and cost-effectively. Learn more at www.nutanix.com or follow us on social media.
© 2025 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo, and all Nutanix product and service names mentioned herein are registered trademarks or unregistered trademarks of Nutanix, Inc. ("Nutanix") in the United States and other countries. Other brand names or marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). This press release is for informational purposes only and nothing herein constitutes a warranty or other binding commitment by Nutanix.
Investor Contact:Richard
Media Contact:Jennifer
NUTANIX, INC.CONSOLIDATED BALANCE SHEETS (Unaudited)
As of
July 31, 2024
July 31, 2025
(in thousands)
Assets
Current assets:
Cash and cash equivalents
$
655,270
$
769,502
Short-term investments
339,072
1,223,234
Accounts receivable, net
229,796
337,967
Deferred commissions—current
159,849
153,072
Prepaid expenses and other current assets
97,307
105,391
Total current assets
1,481,294
2,589,166
Property and equipment, net
136,180
142,814
Operating lease right-of-use assets
109,133
134,526
Deferred commissions—non-current
198,962
189,221
Intangible assets, net
5,153
2,615
Goodwill
185,235
185,235
Other assets—non-current
27,961
39,617
Total assets
$
2,143,918
$
3,283,194
Liabilities and Stockholders' Deficit
Current liabilities:
Accounts payable
$
45,066
$
81,599
Accrued compensation and benefits
195,602
230,498
Accrued expenses and other current liabilities
24,967
24,187
Deferred revenue—current
954,543
1,054,023
Operating lease liabilities—current
24,163
23,234
Total current liabilities
1,244,341
1,413,541
Deferred revenue—non-current
918,163
1,058,731
Operating lease liabilities—non-current
90,359
115,754
Convertible senior notes, net
570,073
1,343,818
Other liabilities—non-current
49,130
45,870
Total liabilities
2,872,066
3,977,714
Stockholders' deficit:
Common stock
7
7
Additional paid-in capital
4,118,898
4,200,466
Accumulated other comprehensive loss
146
700
Accumulated deficit
(4,847,199
)
(4,895,693
)
Total stockholders' deficit
(728,148
)
(694,520
)
Total liabilities and stockholders' deficit
$
2,143,918
$
3,283,194
NUTANIX, INC.CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended July 31,
Fiscal Year Ended July 31,
2024
2025
2024
2025
(in thousands, except per share data)
Revenue:
Product
$
265,901
$
339,789
$
1,067,948
$
1,341,374
Support, entitlements and other services
282,051
313,478
1,080,868
1,196,553
Total revenue
547,952
653,267
2,148,816
2,537,927
Cost of revenue:
Product (1)(2)
8,336
4,372
36,441
28,341
Support, entitlements and other services (1)
72,642
79,461
287,671
306,441
Total cost of revenue
80,978
83,833
324,112
334,782
Gross profit
466,974
569,434
1,824,704
2,203,145
Operating expenses:
Sales and marketing (1)(2)
259,360
281,280
977,286
1,056,465
Research and development (1)
167,396
193,666
638,992
736,823
General and administrative (1)
52,406
63,280
200,863
237,316
Total operating expenses
479,162
538,226
1,817,141
2,030,604
(Loss) income from operations
(12,188
)
31,208
7,563
172,541
Other (expense) income, net
(106,361
)
13,935
(108,881
)
39,107
(Loss) income before provision for income taxes
(118,549
)
45,143
(101,318
)
211,648
Provision for income taxes
7,552
6,493
23,457
23,282
Net (loss) income
$
(126,101
)
$
38,650
$
(124,775
)
$
188,366
Net (loss) income per share attributable to Class A common stockholders, basic
$
(0.51
)
$
0.14
$
(0.51
)
$
0.70
Net (loss) income per share attributable to Class A common stockholders, diluted
$
(0.51
)
$
0.13
$
(0.51
)
$
0.65
Weighted average shares used in computing net (loss) income per share attributable to Class A common stockholders, basic
247,886
268,659
244,743
267,479
Weighted average shares used in computing net (loss) income per share attributable to Class A common stockholders, diluted
247,886
297,456
244,743
294,083
________________(1) Includes the following stock-based compensation expense:
Three Months Ended July 31,
Fiscal Year Ended July 31,
2024
2025
2024
2025
(in thousands)
Product cost of revenue
$
1,621
$
399
$
6,822
$
2,824
Support, entitlements and other services cost of revenue
6,595
6,814
27,285
27,582
Sales and marketing
19,080
19,372
80,190
80,930
Research and development
39,120
42,872
156,784
