# Nutanix (NTNX) Q4 2025 Financial Results Summary
Released on August 27, 2025, Nutanix (NASDAQ: NTNX) announced its financial results for the fourth quarter and fiscal year ended July 31, 2025.
## Key Financial Highlights
### Fourth Quarter Fiscal 2025
– **Annual Recurring Revenue (ARR):**
– $2.22 billion, an increase of **17%** from $1.91 billion in Q4 FY’24.
– **Average Contract Duration:**
– Increased to **3.2 years** from 3.1 years.
– **Revenue:**
– $653.3 million, reflecting a **19%** increase compared to $548.0 million in Q4 FY’24.
– **GAAP Gross Margin:**
– Improved to **87.2%**, up from **85.2%** (an increase of 200 basis points).
– **Non-GAAP Gross Margin:**
– Increased to **88.3%**, compared to **86.9%**, (an increase of 140 basis points).
– **GAAP Operating Expenses:**
– $538.2 million, a **12%** rise from $479.2 million in Q4 FY’24.
– **Non-GAAP Operating Expenses:**
– Increased to $457.2 million from $405.5 million, a **13%** increase.
– **GAAP Operating Income:**
– $31.2 million, a recovery from a loss of $12.2 million in the same quarter last year (an increase of **$43.4 million**).
– **Non-GAAP Operating Income:**
– Increased to $119.5 million from $70.5 million, an increase of **$49.0 million**.
– **GAAP Operating Margin:**
– Improved to **4.8%** from a loss of **(2.2%)** (an increase of 700 basis points).
– **Non-GAAP Operating Margin:**
– Increased to **18.3%** from **12.9%** (an increase of 540 basis points).
– **Net Cash Provided by Operating Activities:**
– $219.5 million, down from $244.7 million (a decrease of **$25.2 million**).
– **Free Cash Flow:**
– $207.8 million, compared to $224.3 million in FY’24 (a decrease of **$16.5 million**).
### Fiscal Year 2025 Summary
– **Annual Recurring Revenue (ARR):**
– $2.22 billion for FY’25, an increase of **17%** from $1.91 billion for FY’24.
– **Average Contract Duration:**
– Increased to **3.1 years** from 3.0 years.
– **Revenue:**
– $2.54 billion, representing an **18%** growth from $2.15 billion for FY’24.
– **GAAP Gross Margin:**
– Positioned at **86.8%**, up from **84.9%** (an increase of 190 basis points).
– **Non-GAAP Gross Margin:**
– Increased to **88.1%**, compared to **86.7%**, (an increase of 140 basis points).
– **GAAP Operating Expenses:**
– $2.03 billion, a **12%** increase from $1.82 billion in FY’24.
– **Non-GAAP Operating Expenses:**
– Increased by **12%** to $1.70 billion from $1.52 billion.
– **GAAP Operating Income:**
– $172.5 million, significantly up from $7.6 million in FY’24 (an increase of **$164.9 million**).
– **Non-GAAP Operating Income:**
– Increased to $536.1 million from $347.1 million (an increase of **$189.0 million**).
– **GAAP Operating Margin:**
– Improved to **6.8%** from **0.4%** (an increase of 640 basis points).
– **Non-GAAP Operating Margin:**
– Increased to **21.1%** from **16.2%** (an increase of 490 basis points).
– **Net Cash Provided by Operating Activities:**
– $821.5 million, an increase of **$148.6 million** from $672.9 million in FY’24.
– **Free Cash Flow:**
– $750.2 million, compared to $597.7 million for FY’24 (an increase of **$152.5 million**).
### Future Outlook
– **First Quarter Fiscal 2026 Outlook:**
– Revenue is expected to be between **$670 million** and **$680 million**.
– Non-GAAP Operating Margin expected between **19.5%** and **20.5%**.
– Weighted Average Shares Outstanding approximately **296 million**.
– **Fiscal 2026 Outlook:**
– Revenue projected between **$2.90 billion** and **$2.94 billion**.
– Non-GAAP Operating Margin projected between **21%** and **22%**.
– Expected Free Cash Flow between **$790 million** and **$830 million**.
### Dividends and Share Repurchase
– There was no announcement of a quarterly dividend.
– Nutanix carried out repurchases of common stock amounting to **$307.9 million** for the fiscal year.
Overall, Nutanix demonstrated solid performance in Q4 FY’25 and for the full fiscal year with significant revenue growth, improved operating margins, and strong Free Cash Flow, while continuing to expand its customer base and partnership ecosystem.
| Three Months Ended | Fiscal Year Ended | |||
|---|---|---|---|---|
| July 31, 2024 | July 31, 2025 | July 31, 2024 | July 31, 2025 | |
| 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 | 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 |
—
| July 31, 2024 | July 31, 2025 | |
|---|---|---|
| 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 |
