# Nutanix, Inc. (NTNX)

Informational only - not investment advice.

CIK: 0001618732
SIC: 7372 Services-Prepackaged Software
SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7372 Services-Prepackaged Software](/industry/7372/)
Latest 10-K filed: 2025-09-24
SEC page: https://www.sec.gov/edgar/browse/?CIK=1618732
Filing source: https://www.sec.gov/Archives/edgar/data/1618732/000119312525213801/ntnx-20250731.htm

## At a glance

FY2025 · period end 2025-07-31 · filed 2025-09-24 · accession 0001193125-25-213801 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001618732.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 2,537,927,000 USD | 2025 | verified |
| Net income | 188,366,000 USD | 2025 | verified |
| Assets | 3,283,194,000 USD | 2025 | verified |
| Free cash flow | 750,173,000 USD | 2025 | computed |
| Net margin | 7.42% | 2025 | computed |
| Operating margin | 6.80% | 2025 | computed |
| Revenue YoY | +18.11% | 2025 | computed |

Stockholders' equity was not positive at FY2025 year-end (-694,520,000 USD, as filed); ROE and liabilities / equity are omitted rather than computed.

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only).

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | NTNX | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 7.4% | 1.5% | 60 | 122 |
| Operating margin | 6.8% | 1.3% | 62 | 121 |
| Revenue growth | 18.1% | 13.5% | 68 | 124 |
| FCF margin | 29.6% | 19.3% | 82 | 120 |
| ROA | 5.7% | 0.9% | 70 | 124 |
| Current ratio | 1.83 | 1.57 | 61 | 124 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7372 Services-Prepackaged Software, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 2537927000 | USD | 2025 | 2025-09-24 |
| Net income | 188366000 | USD | 2025 | 2025-09-24 |
| Assets | 3283194000 | USD | 2025 | 2025-09-24 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-09-24. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001618732.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 503,410,000 | 845,903,000 | 1,155,457,000 | 1,236,143,000 | 1,307,682,000 | 1,394,364,000 | 1,580,796,000 | 1,862,895,000 | 2,148,816,000 | 2,537,927,000 |
| Net income | -108,233,000 | -379,638,000 | -297,161,000 | -621,179,000 | -872,883,000 | -1,035,589,000 | -798,946,000 | -254,560,000 | -124,775,000 | 188,366,000 |
| Operating income | -104,626,000 | -348,409,000 | -280,408,000 | -598,041,000 | -828,921,000 | -662,111,000 | -458,852,000 | -207,150,000 | 7,563,000 | 172,541,000 |
| Gross profit | 332,623,000 | 518,572,000 | 769,427,000 | 932,015,000 | 1,020,993,000 | 1,102,458,000 | 1,259,640,000 | 1,530,708,000 | 1,824,704,000 | 2,203,145,000 |
| Diluted EPS |  |  |  |  | -4.48 | -5.02 | -3.62 | -1.09 | -0.51 | 0.65 |
| Operating cash flow | 3,636,000 | 14,779,000 | 92,540,000 | 42,168,000 | -159,885,000 | -99,810,000 | 67,543,000 | 272,403,000 | 672,931,000 | 821,456,000 |
| Capital expenditures | 42,294,000 | 50,181,000 | 62,372,000 | 118,452,000 | 89,488,000 | 58,647,000 | 49,058,000 | 65,404,000 | 75,252,000 | 71,283,000 |
| Share buybacks |  |  |  |  |  | 125,079,000 | 58,570,000 | 0.00 | 131,139,000 | 307,900,000 |
| Assets | 399,086,000 | 738,212,000 | 1,599,880,000 | 1,786,042,000 | 1,768,547,000 | 2,277,496,000 | 2,365,749,000 | 2,526,915,000 | 2,143,918,000 | 3,283,194,000 |
| Liabilities | 465,022,000 | 521,149,000 | 1,273,101,000 | 1,599,149,000 | 2,043,524,000 | 3,289,537,000 | 3,166,253,000 | 3,234,334,000 | 2,872,066,000 | 3,977,714,000 |
| Stockholders' equity | -285,827,000 | 217,063,000 | 326,779,000 | 186,893,000 | -282,576,000 | -1,020,969,000 | -800,504,000 | -707,419,000 | -728,148,000 | -694,520,000 |
| Cash and cash equivalents | 99,209,000 | 138,359,000 | 305,975,000 | 396,678,000 | 318,737,000 | 285,723,000 | 402,850,000 | 512,929,000 | 655,270,000 | 769,502,000 |
| Free cash flow | -38,658,000 | -35,402,000 | 30,168,000 | -76,284,000 | -249,373,000 | -158,457,000 | 18,485,000 | 206,999,000 | 597,679,000 | 750,173,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | -21.50% | -44.88% | -25.72% | -50.25% | -66.75% | -74.27% | -50.54% | -13.66% | -5.81% | 7.42% |
| Operating margin | -20.78% | -41.19% | -24.27% | -48.38% | -63.39% | -47.48% | -29.03% | -11.12% | 0.35% | 6.80% |
| Return on assets | -27.12% | -51.43% | -18.57% | -34.78% | -49.36% | -45.47% | -33.77% | -10.07% | -5.82% | 5.74% |
| Current ratio | 1.55 | 1.86 | 2.76 | 2.13 | 1.44 | 1.68 | 1.43 | 1.64 | 1.19 | 1.83 |

## As-reported value updates

12 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/NTNX/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-29. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001618732.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q1 | 2022-10-31 |  |  | -0.43 | reported discrete quarter |
| 2023-Q2 | 2023-01-31 |  |  | -0.31 | reported discrete quarter |
| 2023-Q3 | 2023-04-30 | 448,581,000 | -70,969,000 | -0.30 | reported discrete quarter |
| 2023-Q4 | 2023-07-31 | 494,210,000 | -13,287,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q2 | 2023-10-31 |  | -15,853,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-01-31 | 565,233,000 |  | 0.12 | reported discrete quarter |
| 2024-Q3 | 2024-01-31 |  | 32,795,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-04-30 | 524,577,000 |  | -0.06 | reported discrete quarter |
| 2024-Q4 | 2024-07-31 | 547,952,000 | -126,101,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-10-31 | 590,956,000 | 29,926,000 | 0.10 | reported discrete quarter |
| 2025-Q2 | 2024-10-31 |  | 29,926,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-01-31 | 654,721,000 |  | 0.19 | reported discrete quarter |
| 2025-Q3 | 2025-01-31 |  | 56,427,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-04-30 | 638,983,000 |  | 0.22 | reported discrete quarter |
| 2025-Q4 | 2025-07-31 | 653,267,000 | 38,650,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-10-31 | 670,576,000 | 62,096,000 | 0.21 | reported discrete quarter |
| 2026-Q2 | 2025-10-31 |  | 62,096,000 |  | reported discrete quarter |
| 2026-Q2 | 2026-01-31 | 722,825,000 |  | 0.36 | reported discrete quarter |
| 2026-Q3 | 2026-01-31 |  | 103,022,000 |  | reported discrete quarter |
| 2026-Q3 | 2026-04-30 | 703,066,000 |  | 0.25 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from NTNX's latest 10-K: [/company/NTNX/business/](/company/NTNX/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from NTNX's latest 10-K: [/company/NTNX/risk-factors/](/company/NTNX/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1618732/000119312526248282/ntnx-20260430.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-05-29
Report date: 2026-04-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition, results of operations and cash flows should be read in conjunction with (1) the unaudited condensed consolidated financial statements and the related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and (2) the audited consolidated financial statements and notes thereto and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K for the fiscal year ended July 31, 2025 filed on September 24, 2025. The last day of our fiscal year is July 31. Our fiscal quarters end on October 31, January 31, April 30 and July 31. This discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under the heading "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended July 31, 2025 and in Part II, Item 1A of this Quarterly Report on Form 10-Q. See also "Special Note Regarding Forward-Looking Statements" above.

Overview

Nutanix, Inc. ("we," "us," "our," or "Nutanix") is a hybrid multicloud computing leader, offering organizations a unified software platform for running applications, deploying enterprise AI workloads and managing data anywhere. Our vision is to simplify the deployment and operation of the increasingly distributed landscape of apps and data while freeing organizations to focus on business goals. Our mission is to delight customers with an open, secure platform with rich data services that increases their ability to take advantage of new technologies such as cloud native and AI, optimizes how they run their organizations today, and accelerates innovation, efficiency, and growth.

The Nutanix Cloud Platform is designed to enable organizations to build hybrid multicloud infrastructure, providing a consistent cloud operating model with a single platform for running applications and enterprise AI workloads, and managing data in core data centers, at the edge, and in public clouds, while supporting customer choice across server platforms, storage options, public and managed clouds, and container and virtualization platforms. The Nutanix Cloud Platform supports a wide variety of workloads with varied compute, storage, and network requirements, including business-critical applications, data platforms (including SQL, NoSQL, and vector databases and business intelligence applications), enterprise AI workloads (including machine learning, generative AI, and agentic AI), general-purpose workloads (including system infrastructure, networking, and security), end-user computing and virtual desktop infrastructure services, and cloud native applications (including modern, containerized applications).

We originally pioneered hyperconverged infrastructure ("HCI") to break down legacy silos by merging compute, storage and networking into a single software-defined data center platform. We continued to innovate and developed Nutanix AHV, our native hypervisor that offers enterprise-grade virtualization and built-in Kubernetes support. To provide our customers with more choice, we further engineered our software solutions to run on a variety of server platforms and with a variety of external storage providers, decoupling our software from the underlying hardware and powering a variety of hybrid multi cloud deployments, as part of our previously-completed transition from a hardware company to a software company. Most recently, we have extended our software platform support to include external storage from qualified partners. To provide our customers with the flexibility to choose their preferred license levels and durations based on their specific business needs, we reshaped our licensing by completing a transition to a subscription-based business model. In addition to enabling enterprise AI and simplifying hybrid multicloud deployments, we have a further long-term vision to enable developers to build modern container-based applications once and run them anywhere through Project Beacon, our multi-year effort to provide consistent Kubernetes platform management and data-centric platform services across clouds.

Our business is organized into a single operating and reportable segment. We operate a subscription-based business model, meaning one in which our products, including associated support and maintenance arrangements, are sold with a defined duration.

Our platform typically includes one or more years of support and maintenance, which provides customers with the right to software upgrades and enhancements as well as technical support. Purchases of term-based licenses and software-as-a-service ("SaaS") subscriptions have support and maintenance included within the subscription fees and are not sold separately. Purchases of non-portable software are typically accompanied by the purchase of separate support and maintenance.

33

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Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued)

We had a broad and diverse base of over 31,000 end customers as of April 30, 2026. We define the number of end customers as the number of end customers for which we have received an order by the last day of the period, excluding partners to which we have sold products for their own demonstration purposes. A single organization or customer may represent multiple end customers for separate divisions, segments or subsidiaries, and the total number of end customers may contract due to mergers, acquisitions, or other consolidation among existing end customers.

Our solutions are primarily sold through our channel partners or original equipment manufacturers ("OEMs") and delivered directly to our end customers. We have end customers across a broad range of industries, such as automotive, consumer goods, education, energy, financial services, healthcare, manufacturing, media, public sector, retail, technology, and telecommunications. We also sell to service providers, who utilize our platform to provide a variety of cloud-based services to their customers.

We plan to continue investing in initiatives that support the long-term growth of our business, including the development of our solutions and sales and marketing efforts aimed at capitalizing on market opportunities. Simultaneously, we are focused on improving our operating cash flow through operational efficiencies, including in our go-to-market functions. By maintaining this balance, we believe we can sustain profitable growth.

Key Financial and Performance Metrics

We monitor the following key financial and performance metrics:

[[GREPCENT_TABLE]]
[["","","As of and for the"],["","","Three Months Ended April 30,","","","Nine Months Ended April 30,"],["","","2025","","","2026","","","2025","","","2026"],["","","(in thousands, except percentages and end customer count)"],["Total revenue","","$","638,983","","","$","703,066","","","$","1,884,660","","","$","2,096,467"],["Year-over-year percentage increase","","","22","%","","","10","%","","","18","%","","","11","%"],["Annual recurring revenue (\"ARR\") (1)","","$","2,119,028","","","$","2,434,939","","","$","2,119,028","","","$","2,434,939"],["Gross profit","","$","555,992","","","$","610,787","","","$","1,633,711","","","$","1,825,445"],["Non-GAAP gross profit","","$","563,562","","","$","616,967","","","$","1,658,984","","","$","1,847,045"],["Gross margin","","","87.0","%","","","86.9","%","","","86.7","%","","","87.1","%"],["Non-GAAP gross margin","","","88.2","%","","","87.8","%","","","88.0","%","","","88.1","%"],["Operating expenses","","$","507,347","","","$","540,278","","","$","1,492,378","","","$","1,621,464"],["Non-GAAP operating expenses","","$","426,495","","","$","460,498","","","$","1,242,407","","","$","1,369,689"],["Operating income","","$","48,645","","","$","70,509","","","$","141,333","","","$","203,981"],["Non-GAAP operating income","","$","137,067","","","$","156,469","","","$","416,577","","","$","477,356"],["Operating margin","","","7.6","%","","","10.0","%","","","7.5","%","","","9.7","%"],["Non-GAAP operating margin","","","21.5","%","","","22.3","%","","","22.1","%","","","22.8","%"],["Net cash provided by operating activities","","$","218,506","","","$","207,504","","","$","601,927","","","$","601,675"],["Free cash flow","","$","203,411","","","$","197,181","","","$","542,394","","","$","563,105"],["Total end customers (2)","","","28,490","","","","31,710","","","","28,490","","","","31,710"]]
[[/GREPCENT_TABLE]]

(1)
Beginning with the first quarter of fiscal 2026, our methodology for calculating ARR was updated to align more closely with the timing of when licenses are made available to customers. For comparability purposes, ARR for all prior periods have been adjusted to conform to the updated methodology.

(2)
The total end customer count reflects standard adjustments/consolidation to certain customer accounts within our system of record and is rounded to the nearest 10.

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Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Disaggregation of Revenue

The following table depicts the disaggregation of revenue by type, consistent with how we evaluate our financial performance:

[[GREPCENT_TABLE]]
[["","","Three Months Ended April 30,","","","Nine Months Ended April 30,"],["","","2025","","","2026","","","2025","","","2026"],["","","(in thousands)"],["Disaggregation of revenue:"],["Subscription revenue","","$","609,663","","","$","664,792","","","$","1,794,777","","","$","1,993,163"],["Professional services and other revenue (1)","","","29,320","","","","38,274","","","","89,883","","","","103,304"],["Total revenue","","$","638,983","","","$","703,066","","","$","1,884,660","","","$","2,096,467"]]
[[/GREPCENT_TABLE]]

(1)
Prior to fiscal 2026, these amounts were presented as separate line items, Professional services and Other non-subscription product, as described below. Prior period amounts have been updated to conform to the current period presentation.

Subscription revenue — Subscription revenue includes any performance obligation which has a defined duration and is generated from the sales of software maintenance subscriptions, support subscriptions, subscription software licenses and cloud-based SaaS offerings.

•
Ratable — We recognize revenue from software maintenance subscriptions, support subscriptions and SaaS offerings ratably over the contractual service period, the substantial majority of which relate to software maintenance subscriptions and support subscriptions. These offerings represented approximately $279.7 million and $840.3 million of our subscription revenue for the three and nine months ended April 30, 2025, respectively, and $322.6 million and $950.6 million of our subscription revenue for the three and nine months ended April 30, 2026, respectively.

•
Upfront — We generally recognize revenue from our subscription software licenses upfront upon the transfer of control to the customer. For sales of our software purchased alongside a server from an OEM or other partner, revenue is typically recognized upon shipment of the server. For software sold separately from a server, revenue is typically recognized when the software is made available to the customer. These subscription software licenses represented approximately $330.0 million and $954.5 million of our subscription revenue for the three and nine months ended April 30, 2025, respectively, and $342.2 million and $1,042.6 million of our subscription revenue for the three and nine months ended April 30, 2026, respectively.

Professional services and other

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1618732/000119312525213801/ntnx-20250731.htm
Complete FY 2025 MD&A: /company/NTNX/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2025-09-24
Report date: 2025-07-31

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition, results of operations and cash flows should be read in conjunction with the consolidated financial statements and the related notes thereto included elsewhere in this Annual Report on Form 10-K. The last day of our fiscal year is July 31. Our fiscal quarters end on October 31, January 31, April 30 and July 31. This discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under "Risk Factors" or in other parts of this Annual Report on Form 10-K. See also "Special Note Regarding Forward-Looking Statements" above. For a discussion of our results of operations for the fiscal year ended July 31, 2024 as compared to the fiscal year ended July 31, 2023, please refer to Part II, Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations,” of our Annual Report on Form 10-K filed with the SEC on September 19, 2024.

Overview

Nutanix, Inc. ("we," "us," "our," or "Nutanix") is a hybrid multicloud computing leader, offering organizations a unified software platform for running applications and AI and managing data anywhere. Our vision is to simplify the deployment and operation of the increasingly distributed landscape of apps and data while freeing organizations to focus on business goals. Our mission is to delight customers with an open, secure platform with rich data services that increases their ability to take advantage of new technologies such as cloud native and AI, optimizes how they run their organizations today, and accelerates innovation, efficiency, and growth.

The Nutanix Cloud Platform is designed to enable organizations to build hybrid multicloud infrastructure, providing a consistent cloud operating model with a single platform for running applications and managing data in core data centers, at the edge, and in public clouds, while supporting customer choice across server platforms, storage options, public and managed clouds, and container and virtualization platforms. The Nutanix Cloud Platform supports a wide variety of workloads with varied compute, storage, and network requirements, including business-critical applications, data platforms (including SQL, NoSQL, and vector databases and business intelligence applications), enterprise AI workloads (including machine learning, generative AI, and agentic AI), general-purpose workloads (including system infrastructure, networking, and security), end-user computing and virtual desktop infrastructure services, and cloud native applications (including modern, containerized applications).

We originally pioneered hyperconverged infrastructure ("HCI") to break down legacy silos by merging compute, storage and networking into a single software-defined data center platform. We continued to innovate and developed Nutanix AHV, our native hypervisor that offers enterprise-grade virtualization and built-in Kubernetes support. To provide our customers with more choice, we further engineered our software solutions to run on a variety of server platforms and with a variety of external storage providers, decoupling our software from the underlying hardware and powering a variety of hybrid multi cloud deployments, as part of our previously-completed transition from a hardware company to a software company. Most recently, we have extended our software platform support to include external storage from qualified partners. To provide our customers with the flexibility to choose their preferred license levels and durations based on their specific business needs, we reshaped our licensing by completing a transition to a subscription-based business model. In addition to enabling enterprise AI and simplifying hybrid multicloud deployments, we have a further long-term vision to enable developers to build modern container-based applications once and run them anywhere through Project Beacon, our multi-year effort to provide consistent Kubernetes platform management and data-centric platform services across clouds.

67

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NUTANIX, INC.

Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Our business is organized into a single operating and reportable segment. We operate a subscription-based business model, meaning one in which our products, including associated support and entitlement arrangements, are sold with a defined duration.

Our platform typically includes one or more years of support and entitlements, which provides customers with the right to software upgrades and enhancements as well as technical support. Purchases of term-based licenses and software-as-a-service ("SaaS") subscriptions have support and entitlements included within the subscription fees and are not sold separately. Purchases of non-portable software are typically accompanied by the purchase of separate support and entitlements.

We had a broad and diverse base of over 29,000 end customers as of July 31, 2025. We define the number of end customers as the number of end customers for which we have received an order by the last day of the period, excluding partners to which we have sold products for their own demonstration purposes. A single organization or customer may represent multiple end customers for separate divisions, segments, or subsidiaries, and the total number of end customers may contract due to mergers, acquisitions, or other consolidation among existing end customers.

Our solutions are primarily sold through our channel partners or original equipment manufacturers ("OEMs") and delivered directly to our end customers. We have end customers across a broad range of industries, such as automotive, consumer goods, education, energy, financial services, healthcare, manufacturing, media, public sector, retail, technology, and telecommunications. We also sell to service providers, who utilize our platform to provide a variety of cloud-based services to their customers.

We plan to continue investing in initiatives that support the long-term growth of our business, including the development of our solutions and sales and marketing efforts aimed at capitalizing on market opportunities. Simultaneously, we are focused on improving our operating cash flow through operational efficiencies, including in our go-to-market functions. By maintaining this balance, we believe we can sustain profitable growth.

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NUTANIX, INC.

Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Key Financial and Performance Metrics

We monitor the following key financial and performance metrics:

[[GREPCENT_TABLE]]
[["","","As of and for the Fiscal Year Ended July 31,"],["","","2023","","","2024","","","2025"],["","","(in thousands, except percentages and end customer count)"],["Total revenue","","$","1,862,895","","","$","2,148,816","","","$","2,537,927"],["Year-over-year percentage increase","","","18","%","","","15","%","","","18","%"],["Annual recurring revenue (\"ARR\")","","$","1,561,981","","","$","1,907,982","","","$","2,223,197"],["Gross profit","","$","1,530,708","","","$","1,824,704","","","$","2,203,145"],["Non-GAAP gross profit","","$","1,575,385","","","$","1,862,203","","","$","2,235,736"],["Gross margin","","","82.2","%","","","84.9","%","","","86.8","%"],["Non-GAAP gross margin","","","84.6","%","","","86.7","%","","","88.1","%"],["Operating expenses","","$","1,737,858","","","$","1,817,141","","","$","2,030,604"],["Non-GAAP operating expenses","","$","1,414,389","","","$","1,515,096","","","$","1,699,616"],["Operating (loss) income","","$","(207,150",")","","$","7,563","","","$","172,541"],["Non-GAAP operating income","","$","160,996","","","$","347,107","","","$","536,120"],["Operating margin","","","(11.1",")%","","","0.4","%","","","6.8","%"],["Non-GAAP operating margin","","","8.6","%","","","16.2","%","","","21.1","%"],["Net cash provided by operating activities","","$","272,403","","","$","672,931","","","$","821,456"],["Free cash flow","","$","206,999","","","$","597,679","","","$","750,173"],["Total end customers (1)","","","24,550","","","","26,530","","","","29,290"]]
[[/GREPCENT_TABLE]]

(1)
The total end customer count reflects standard adjustments/consolidation to certain customer accounts within our system of record and is rounded to the nearest 10.

Disaggregation of Revenue

The following table depicts the disaggregation of revenue by type, consistent with how we evaluate our financial performance:

[[GREPCENT_TABLE]]
[["","","Fiscal Year Ended July 31,"],["","","2023","","","2024","","","2025"],["","","(in thousands)"],["Disaggregation of revenue:"],["Subscription revenue","","$","1,730,848","","","$","2,016,776","","","$","2,410,751"],["Professional services revenue","","","91,841","","","","100,852","","","","112,202"],["Other non-subscription product revenue","","","40,206","","","","31,188","","","","14,974"],["Total revenue","","$","1,862,895","","","$","2,148,816","","","$","2,537,927"]]
[[/GREPCENT_TABLE]]

Subscription revenue — Subscription revenue includes any performance obligation which has a defined duration and is generated from the sales of software entitlement subscriptions, support subscriptions, subscription software licenses and cloud-based SaaS offerings.

•
Ratable — We recognize revenue from software entitlement subscriptions, support subscriptions and SaaS offerings ratably over the contractual service period, the substantial majority of which relate to software entitlement subscriptions and support subscriptions. These offerings represented approximately $905.8 million, $1,029.0 million and $1,138.4 million of our subscription revenue for fiscal 2023, 2024 and 2025, respectively.

69

Table of Contents

NUTANIX, INC.

Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued)

•
Upfront — Revenue from our subscription software licenses is generally recognized upfront upon transfer of control to the customer, which happens when we make the software available to the customer. These subscription software licenses represented approximately $825.0 million, $987.8 million and $1,272.4 million of our subscription revenue for fiscal 2023, 2024 and 2025, respectively.

Professional services revenue — We also sell professional services with our products. We recognize revenue related to professional services as they are performed.

Other non-subscription product revenue — Other non-subscription product revenue includes approximately $37.4 million, $27.9 million and $10.8 million of non-portable software revenue for fiscal 2023, 2024 and 2025, respectively, and approximately $2.8 million, $3.3 million and $4.2 million of hardware revenue for fiscal 2023, 2024 and 2025, respectively.

•
Non-portable software revenue — Non-portable software revenue includes sales of our platform when delivered on a configured-to-order server by us or one of our OEM partners. The software licenses associated with these sales are typically non-portable and can be used over the life of the server on which the software is delivered. Revenue from our non-portable software products is generally recognized upon transfer of control to the customer.

•
Hardware revenue — In the infrequent transactions where the hardware platform is purchased directly from Nutanix, we consider ourselves to be the principal in the transaction and we record revenue and costs of goods sold on a gross basis. We consider the amount allocated to hardware revenue to be equivalent to the cost of the hardware procured. Hardware revenue is generally recognized upon transfer of control to the customer.

Non-GAAP Financial Mea

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/NTNX/mda/fy2025/
All MD&A years: /company/NTNX/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/NTNX/mda/fy2024/): filed 2024-09-19; accession 0000950170-24-108159 (https://www.sec.gov/Archives/edgar/data/1618732/000095017024108159/ntnx-20240731.htm)
- [FY 2023 MD&A](/company/NTNX/mda/fy2023/): filed 2023-09-21; accession 0000950170-23-049179 (https://www.sec.gov/Archives/edgar/data/1618732/000095017023049179/ntnx-20230731.htm)
- [FY 2022 MD&A](/company/NTNX/mda/fy2022/): filed 2022-09-21; accession 0000950170-22-018732 (https://www.sec.gov/Archives/edgar/data/1618732/000095017022018732/ntnx-20220731.htm)
- [FY 2021 MD&A](/company/NTNX/mda/fy2021/): filed 2021-09-21; accession 0000950170-21-001852 (https://www.sec.gov/Archives/edgar/data/1618732/000095017021001852/ntnx-20210731.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 7372 Services-Prepackaged Software) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/NTNX.md · JSON record: /company/NTNX.json · verified financials: /company/NTNX/financials.json / /company/NTNX/financials.csv · machine TOC for the whole site: /llms.txt