Everpure Announces Second Quarter Fiscal 2027 Financial Results
— Everpure (NYSE: P), the company revolutionizing storage and data management, today announced financial results for its second quarter fiscal year 2027 ended August 2, 2026.
“Q2 marks eight straight quarters of accelerating revenue growth for Everpure, and confirmed our position as the most innovative and vital company in our industry,” said Charles Giancarlo, Chairman and CEO of Everpure. “Our expansion into Data Intelligence, and our increasing momentum in AI and hyperscale products, ensures we are well-positioned to capture enduring long-term growth.”
• Subscription annual recurring revenue (ARR) $2.1 billion, up 20% year-over- year
• Returned approximately $69 million to stockholders through share repurchases of 0.9 million shares.
“Q2 was another outstanding quarter for Everpure, where we delivered record revenue and operating profit, exceeding the high-end of our guidance," said Everpure CFO Tarek Robbiati. "Demand remains strong across our solutions portfolio despite historic industry price increases in the first half of FY’27. We are raising guidance significantly for the second half of the year to reflect our confidence in continued revenue momentum.”
Announced on August 10 a landmark design win with a second top-five hyperscaler , leveraging Everpure's advanced DirectFlash® architecture to drastically lower operational costs and reclaim vital power and rack space for hyperscale workloads.
• Unveiled the Data Primacy architecture at //Accelerate 2026, Everpure Data Intelligence for automated data discovery and governance.
• Announced general availability of Everpure Data Stream to automate data pipelines from ingestion to inference and accelerate data preparation.
• Evolved Pure1 AI Copilot from a conversational assistant into an active operator that analyzes performance anomalies, provides step-by-step root-cause analysis, and guides teams to resolution.
• Introduced Portworx for Edge on Red Hat OpenShift and expanded Portworx by Everpure to bring native Kubernetes data management, including storage, data protection, and disaster recovery, directly into the Red Hat OpenShift console.
• Announced general availability of Everpure Cloud Azure Native for Azure Virtual Machines , extending the fully managed enterprise block storage service across public cloud environments. 1
• Achieved general availability of Everpure FlashBlade integration into Cisco Intersight , delivering native onboarding, complete inventory visibility, and unified health dashboards.
• Announced the Everpure OpenSharing Connector , enabling Databricks to query Iceberg and Delta tables directly on Everpure object storage without data replication or egress fees.
• Named a Leader in the 2026 Gartner® Magic Quadrant™ for Enterprise Storage Platforms , positioned highest in execution and furthest in vision for the second consecutive year.
• Named to the PEOPLE® Companies That Care by Great Place to Work® and PEOPLE® magazine.
• Named Virtualization Transformation Partner of the Year in the 2026 Red Hat Ecosystem Innovation Awards and recognized as a Leader in The Forrester Wave™: Object Storage Solutions , Q2 2026.
• CEO Charles Giancarlo was recognized on CRN’s The 25 Most Influential Executives Of 2026 list.
Q3FY27 Revenue $1.325B to $1.335B Revenue YoY Growth Rate 37% to 38% Non-GAAP Operating Income $265M to $275M Non-GAAP Operating Income YoY Growth Rate 35% to 40%
FY27 Prior Guidance New Guidance Revenue $4.41B to $4.51B $5.03B to $5.07B Revenue YoY Growth Rate 20% to 23% 37% to 38% Non-GAAP Operating Income $820M to $860M $940M to $960M Non-GAAP Operating Income YoY Growth 29% to 36% 48% to 51% Rate
These statements are forward-looking and actual results may differ materially. Refer to the Forward Looking Statements section below for information on the factors that could cause our actual results to differ materially from these statements. Everpure has not reconciled its guidance for non-GAAP operating income and related year-over-year growth rate to their most directly comparable GAAP measures because certain items that impact these measures are not within Everpure’s control and/or cannot be reasonably predicted. Accordingly, reconciliations of these non-GAAP financial measures guidance to the corresponding GAAP measures are not available without unreasonable effort.
Everpure will host a teleconference to discuss the second quarter fiscal 2027 results at 2:00 pm PT today, August 26, 2026. A live audio broadcast of the conference call will be available on the Everpure Investor Relations website . Everpure will also post its earnings presentation and prepared remarks to this website concurrent with this release.
A replay will be available following the call on the Everpure Investor Relations website or for two weeks at 1-800-770-2030 (or 1-647-362-9199 for international callers) with passcode 5667482. Additionally, Everpure is scheduled to participate at the following investor conferences:
Please save the date for Everpure's Financial Analyst Meeting on Wednesday, September 23, 2026. Members of the executive leadership team will provide an update on the company's long-term strategy, path to growth, and long-term financial framework.
A live webcast and presentation materials will be available on the company's Investor Relations website. Additional event details, including registration information, will be provided closer to the event. 2
Everpure (NYSE: P) allows organizations to take control of their data with an industry-leading, ever-evolving storage and data management platform. We help companies unleash the power of their data by ensuring it is secure, accessible, intelligent, and ready to perform in the AI era. We make data management effortless while simultaneously scaling performance and significantly reducing energy consumption. With one of the highest Net Promoter Scores for over a decade, Everpure is the choice of the world’s most innovative organizations. For more information, visit www.everpuredata.com .
Facebook Everpure, the Everpure P Logo, Portworx, Pure Storage and the marks in the Everpure Trademark List are trademarks or registered trademarks of Everpure, Inc. or its licensed subsidiaries in the U.S. and/or other countries. The Trademark List can be found at Everpuredata.com/trademarks . Other names may be trademarks of their respective owners.
Investors and others should note that we announce material business and financial information through our investor relations website at www.investors.everpuredata.com, SEC filings, public conference calls and webcasts, and press releases, including earnings press releases. We also announce business and financial information through our newsroom website ( https://www.everpuredata.com/company/newsroom.html ), blog ( http://blog.everpuredata.com ), LinkedIn ( linkedin.com/company/everpure-data ), X ( x.com/EverpureData ), Facebook (@ purestorage ), Instagram (@ purestorage ) and YouTube (@ everpure-data ). It is possible that the information we post on these channels could be deemed to be material information. Therefore, we encourage investors to follow these channels, in addition to our SEC filings, public conference calls and webcasts, and press releases.
This press release contains forward-looking statements regarding our products, business and operations, including but not limited to our views relating to our future period financial and business results, our ability to manage potential disruptions to our supply chain, our ability to procure a sufficient supply of flash and other components, the impact of recent increases in component costs, the anticipated effects of our recent acquisition of 1touch, our opportunity relating to hyperscale and AI environments, our ability to meet hyperscalers' performance, price and other requirements, our ability to expand with our current hyperscale customers and land new hyperscale customers, our ability to meet the needs of hyperscalers for the entire spectrum of their online storage use cases, the timing and magnitude of large orders, including sales to hyperscalers and large enterprises, the timing and amount of hyperscale customer revenue, demand for our products and subscription services, including Evergreen//One, our sales pipeline, the relative sales mix between our subscription and consumption offerings and traditional capital expenditure sales, our technology and product strategy, specifically ongoing development and customer adoption of new products and the Enterprise Data Cloud architecture (including Pure FusionTM), priorities around sustainability and energy saving benefits to our customers of using our products, our ability to expand market share, the impact of inflation, currency fluctuations, tariffs, or other adverse economic conditions, our expectations regarding our product and technology differentiation, new investments and partnerships, and other statements regarding our products, business, operations and results. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements.
Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings and reports with the U.S. Securities and Exchange Commission, which are available on our Investor Relations website at investor.everpuredata.com and on the SEC website at www.sec.gov . Additional information is also set forth in our Annual Report on Form 10-K for the fiscal year ended February 1, 2026. All information provided in this release and in the attachments is as of August 26, 2026, and Everpure undertakes no duty to update this information unless required by law. 3
Subscription ARR is a key business metric that refers to the annualized recurring contract value of all active, non-cancelable customer subscription agreements with subscription terms of any length at the end of the quarter, plus on-demand billings for the quarter multiplied by four.
Total Contract Value (TCV) Sales, or bookings, of Everpure's Evergreen//One and similar consumption- and subscription-based offerings is an operating metric, representing the value of orders received during the period.
To supplement our unaudited condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, Everpure uses the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non- GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share, and free cash flow.
We use these non-GAAP financial measures for financial and operational decision- making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses such as stock-based compensation expense, payroll tax expense related to stock-based activities, amortization of debt issuance costs related to debt, amortization of acquired intangible assets and gains from mark-to-market adjustments on strategic investments that may not be indicative of our ongoing core business operating results. Everpure believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and planning, forecasting, and analyzing future periods. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.
For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned "Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures" and "Reconciliation from net cash provided by (used in) operating activities to free cash flow," included at the end of this release.
At the End of Assets Second Quarter of Current assets: Fiscal 2027 Fiscal 2026 ────────────────────────────────────────────────────────────────────────────── Cash and cash $ 385,694 $ 854,873 equivalents Marketable 622,197 692,446 securities Accounts receivable, net 1,027,665 944,844 of allowance of $204 and $203 Inventory 106,300 75,935 Deferred commissions, 150,472 139,379 current Prepaid expenses and other 1,025,645 356,015 current assets Total current 3,317,973 3,063,492 assets Property and 687,950 587,022 equipment, net Operating lease 196,341 185,975 right-of-use-as… Deferred commissions, 296,422 280,190 non-current Intangible 23,338 7,346 assets, net Goodwill 466,313 365,075 Restricted cash 8,214 7,687 Other assets, 223,858 177,472 non-current Total assets $ 5,220,409 $ 4,674,259 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 329,848 $ 153,312 Accrued compensation and 300,060 347,205 benefits Accrued expenses and other 192,577 184,338 liabilities Operating lease liabilities, 50,273 44,080 current Deferred 1,323,750 1,181,055 revenue, current Total current 2,196,508 1,909,990 liabilities Operating lease liabilities, 175,034 172,063 non-current Deferred revenue, 1,197,521 1,046,442 non-current Other liabilities, 110,508 100,096 non-current Total 3,679,571 3,228,591 liabilities Stockholders’ equity: Common stock and additional 2,627,994 2,624,790 paid-in capital Accumulated other comprehensive -4,552 1,709 income (loss) Accumulated -1,082,604 -1,180,831 deficit Total stockholders’ 1,540,838 1,445,668 equity Total liabilities and $ 5,220,409 $ 4,674,259 stockholders’ equity
(1) Includes capitalized internal-use software costs of $12.5 million and $8.7 million for the second quarter of fiscal 2027 and 2026 and $22.8 million and $15.6 million for the first two quarters of fiscal 2027 and 2026. 7 Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures
The following table presents non-GAAP gross margins by revenue source before certain items (in thousands except percentages, unaudited):
(b) Non-GAAP gross margin is defined as non-GAAP gross profit divided by revenue.
(e) To eliminate amortization expense of acquired intangible assets. 8 The following table presents certain non-GAAP consolidated results before certain items (in thousands, except per share amounts and percentages, unaudited):
(a) GAAP operating margin is defined as GAAP operating income divided by revenue. (b) Non-GAAP operating margin is defined as non-GAAP operating income divided by revenue.
(f) To eliminate amortization expense of debt issuance costs related to our debt.
(g) To eliminate unrealized gain from mark-to-market adjustment on strategic investment. 9 Reconciliation from net cash provided by (used in) operating activities to free cash flow (in thousands except percentages, unaudited):
(1) Includes capitalized internal-use software costs of $12.5 million and $8.7 million for the second quarter of fiscal 2027 and 2026. 10
Full text with the tables
Exhibit 99.1
Everpure Announces Second Quarter Fiscal 2027 Financial Results
Total revenue growth of 38% year-over-year
Product revenue growth of 54% year-over-year
Significantly increased FY27 revenue and operating profit guidance
SANTA CLARA, Calif.
—
August 26, 2026
— Everpure (NYSE: P), the company revolutionizing storage and data management,
today announced financial results for its second quarter fiscal year 2027 ended
August 2, 2026.
“Q2 marks eight straight quarters of accelerating revenue growth for Everpure,
and confirmed our position as the most innovative and vital company in our
industry,” said Charles Giancarlo, Chairman and CEO of Everpure. “Our expansion
into Data Intelligence, and our increasing momentum in AI and hyperscale
products, ensures we are well-positioned to capture enduring long-term growth.”
Second
Quarter Financial Highlights
• Revenue $1.2 billion, up 38% year-over-year
• Product revenue $687 million, up 54% year-over-year
• Subscription services revenue $499 million, up 20% year-over-year
• Subscription annual recurring revenue (ARR) $2.1 billion, up 20% year-over-
year
• Remaining performance obligations (RPO) $4.1 billion, up 44% year-over-year
• GAAP gross margin 68.4%; non-GAAP gross margin 69.9%
• GAAP operating income $63 million; non-GAAP operating income $230 million
• GAAP operating margin 5.3%; non-GAAP operating margin 19.4%
• Operating cash flow $(136) million; free cash flow $(238) million
• Total cash, cash equivalents, and marketable securities $1.0 billion
• Returned approximately $69 million to stockholders through share repurchases
of 0.9 million shares.
“Q2 was another outstanding quarter for Everpure, where we delivered record
revenue and operating profit, exceeding the high-end of our guidance," said
Everpure CFO Tarek Robbiati. "Demand remains strong across our solutions
portfolio despite historic industry price increases in the first half of FY’27.
We are raising guidance significantly for the second half of the year to reflect
our confidence in continued revenue momentum.”
Second Quarter Company Highlights
Second Top-Five Hyperscale Win
•
Announced on August 10 a landmark design win with a second top-five hyperscaler
, leveraging Everpure's advanced DirectFlash® architecture to drastically lower
operational costs and reclaim vital power and rack space for hyperscale
workloads.
Advancing Enterprise Data & AI Infrastructure
• Unveiled the Data Primacy architecture at //Accelerate 2026, Everpure Data
Intelligence for automated data discovery and governance.
• Announced general availability of Everpure Data Stream to automate data
pipelines from ingestion to inference and accelerate data preparation.
• Evolved Pure1 AI Copilot from a conversational assistant into an active
operator that analyzes performance anomalies, provides step-by-step root-cause
analysis, and guides teams to resolution.
Expanding Hybrid Cloud & Virtualization
• Introduced Portworx for Edge on Red Hat OpenShift and expanded Portworx by
Everpure to bring native Kubernetes data management, including storage, data
protection, and disaster recovery, directly into the Red Hat OpenShift console.
• Announced general availability of Everpure Cloud Azure Native for Azure
Virtual Machines , extending the fully managed enterprise block storage service
across public cloud environments.
1
Driving Strategic Ecosystem Partnerships
• Achieved general availability of Everpure FlashBlade integration into Cisco
Intersight , delivering native onboarding, complete inventory visibility, and
unified health dashboards.
• Announced the Everpure OpenSharing Connector , enabling Databricks to query
Iceberg and Delta tables directly on Everpure object storage without data
replication or egress fees.
Industry Recognition & Impact
• Named a Leader in the 2026 Gartner® Magic Quadrant™ for Enterprise Storage
Platforms , positioned highest in execution and furthest in vision for the
second consecutive year.
• Named to the PEOPLE® Companies That Care by Great Place to Work® and PEOPLE®
magazine.
• Named Virtualization Transformation Partner of the Year in the 2026 Red Hat
Ecosystem Innovation Awards and recognized as a Leader in The Forrester Wave™:
Object Storage Solutions , Q2 2026.
• CEO Charles Giancarlo was recognized on CRN’s The 25 Most Influential
Executives Of 2026 list.
Third Quarter and FY27 Guidance
Q3FY27
Revenue $1.325B to $1.335B
Revenue YoY Growth Rate 37% to 38%
Non-GAAP Operating Income $265M to $275M
Non-GAAP Operating Income YoY Growth Rate 35% to 40%
FY27
Prior Guidance New Guidance
Revenue $4.41B to $4.51B $5.03B to $5.07B
Revenue YoY Growth Rate 20% to 23% 37% to 38%
Non-GAAP Operating Income $820M to $860M $940M to $960M
Non-GAAP Operating Income YoY Growth 29% to 36% 48% to 51%
Rate
These statements are forward-looking and actual results may differ materially.
Refer to the Forward Looking Statements section below for information on the
factors that could cause our actual results to differ materially from these
statements. Everpure has not reconciled its guidance for non-GAAP operating
income and related year-over-year growth rate to their most directly comparable
GAAP measures because certain items that impact these measures are not within
Everpure’s control and/or cannot be reasonably predicted. Accordingly,
reconciliations of these non-GAAP financial measures guidance to the
corresponding GAAP measures are not available without unreasonable effort.
Conference Call Information
Everpure will host a teleconference to discuss the second quarter fiscal 2027
results at 2:00 pm PT today, August 26, 2026. A live audio broadcast of the
conference call will be available on the Everpure Investor Relations website .
Everpure will also post its earnings presentation and prepared remarks to this
website concurrent with this release.
A replay will be available following the call on the Everpure Investor Relations
website or for two weeks at 1-800-770-2030 (or 1-647-362-9199 for international
callers) with passcode 5667482.
Additionally, Everpure is scheduled to participate at the following investor
conferences:
Save the Date: Everpure Financial Analyst Meeting
Please save the date for Everpure's Financial Analyst Meeting on Wednesday,
September 23, 2026. Members of the executive leadership team will provide an
update on the company's long-term strategy, path to growth, and long-term
financial framework.
A live webcast and presentation materials will be available on the company's
Investor Relations website. Additional event details, including registration
information, will be provided closer to the event.
2
About Everpure
Everpure (NYSE: P) allows organizations to take control of their data with an
industry-leading, ever-evolving storage and data management platform. We help
companies unleash the power of their data by ensuring it is secure, accessible,
intelligent, and ready to perform in the AI era. We make data management
effortless while simultaneously scaling performance and significantly reducing
energy consumption. With one of the highest Net Promoter Scores for over a
decade, Everpure is the choice of the world’s most innovative organizations. For
more information, visit www.everpuredata.com .
Connect with Everpure
Blog
LinkedIn
Twitter
Facebook
Everpure, the Everpure P Logo, Portworx, Pure Storage and the marks in the
Everpure Trademark List are trademarks or registered trademarks of Everpure,
Inc. or its licensed subsidiaries in the U.S. and/or other countries. The
Trademark List can be found at Everpuredata.com/trademarks . Other names may be
trademarks of their respective owners.
Investors and others should note that we announce material business and
financial information through our investor relations website at
www.investors.everpuredata.com, SEC filings, public conference calls and
webcasts, and press releases, including earnings press releases. We also
announce business and financial information through our newsroom website (
https://www.everpuredata.com/company/newsroom.html ), blog (
http://blog.everpuredata.com ), LinkedIn ( linkedin.com/company/everpure-data ),
X ( x.com/EverpureData ), Facebook (@ purestorage ), Instagram (@ purestorage )
and YouTube (@ everpure-data ). It is possible that the information we post on
these channels could be deemed to be material information. Therefore, we
encourage investors to follow these channels, in addition to our SEC filings,
public conference calls and webcasts, and press releases.
Forward Looking Statements
This press release contains forward-looking statements regarding our products,
business and operations, including but not limited to our views relating to our
future period financial and business results, our ability to manage potential
disruptions to our supply chain, our ability to procure a sufficient supply of
flash and other components, the impact of recent increases in component costs,
the anticipated effects of our recent acquisition of 1touch, our opportunity
relating to hyperscale and AI environments, our ability to meet hyperscalers'
performance, price and other requirements, our ability to expand with our
current hyperscale customers and land new hyperscale customers, our ability to
meet the needs of hyperscalers for the entire spectrum of their online storage
use cases, the timing and magnitude of large orders, including sales to
hyperscalers and large enterprises, the timing and amount of hyperscale customer
revenue, demand for our products and subscription services, including
Evergreen//One, our sales pipeline, the relative sales mix between our
subscription and consumption offerings and traditional capital expenditure
sales, our technology and product strategy, specifically ongoing development and
customer adoption of new products and the Enterprise Data Cloud architecture
(including Pure FusionTM), priorities around sustainability and energy saving
benefits to our customers of using our products, our ability to expand market
share, the impact of inflation, currency fluctuations, tariffs, or other adverse
economic conditions, our expectations regarding our product and technology
differentiation, new investments and partnerships, and other statements
regarding our products, business, operations and results. Forward-looking
statements are subject to known and unknown risks and uncertainties and are
based on potentially inaccurate assumptions that could cause actual results to
differ materially from those expected or implied by the forward-looking
statements.
Actual results may differ materially from the results predicted, and reported
results should not be considered as an indication of future performance. The
potential risks and uncertainties that could cause actual results to differ from
the results predicted include, among others, those risks and uncertainties
included under the caption "Risk Factors" and elsewhere in our filings and
reports with the U.S. Securities and Exchange Commission, which are available on
our Investor Relations website at investor.everpuredata.com and on the SEC
website at www.sec.gov . Additional information is also set forth in our Annual
Report on Form 10-K for the fiscal year ended February 1, 2026. All information
provided in this release and in the attachments is as of August 26, 2026, and
Everpure undertakes no duty to update this information unless required by law.
3
Key Performance Metrics
Subscription ARR is a key business metric that refers to the annualized
recurring contract value of all active, non-cancelable customer subscription
agreements with subscription terms of any length at the end of the quarter, plus
on-demand billings for the quarter multiplied by four.
Total Contract Value (TCV) Sales, or bookings, of Everpure's Evergreen//One and
similar consumption- and subscription-based offerings is an operating metric,
representing the value of orders received during the period.
Non-GAAP Financial Measures
To supplement our unaudited condensed consolidated financial statements, which
are prepared and presented in accordance with GAAP, Everpure uses the following
non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-
GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income,
non-GAAP net income per share, and free cash flow.
We use these non-GAAP financial measures for financial and operational decision-
making and as a means to evaluate period-to-period comparisons. Our management
believes that these non-GAAP financial measures provide meaningful supplemental
information regarding our performance and liquidity by excluding certain
expenses such as stock-based compensation expense, payroll tax expense related
to stock-based activities, amortization of debt issuance costs related to debt,
amortization of acquired intangible assets and gains from mark-to-market
adjustments on strategic investments that may not be indicative of our ongoing
core business operating results. Everpure believes that both management and
investors benefit from referring to these non-GAAP financial measures in
assessing our performance and when analyzing historical performance and
liquidity and planning, forecasting, and analyzing future periods. The
presentation of these non-GAAP financial measures is not meant to be considered
in isolation or as a substitute for our financial results prepared in accordance
with GAAP, and our non-GAAP measures may be different from non-GAAP measures
used by other companies.
For a reconciliation of these non-GAAP financial measures to GAAP measures,
please see the tables captioned "Reconciliations of non-GAAP results of
operations to the nearest comparable GAAP measures" and "Reconciliation from net
cash provided by (used in) operating activities to free cash flow," included at
the end of this release.
Contacts
Sandra Kerrigan – Investor Relations, Everpure
ir@everpuredata.com
Tricia Stream – Global Communications, Everpure
pr@everpuredata.com
###
4
EVERPURE, INC.
Condensed Consolidated Balance Sheets
(in thousands, unaudited)
At the End of
Assets Second Quarter of
Current assets: Fiscal 2027 Fiscal 2026
──────────────────────────────────────────────────────────────────────────────
Cash and cash $ 385,694 $ 854,873
equivalents
Marketable 622,197 692,446
securities
Accounts
receivable, net 1,027,665 944,844
of allowance of
$204 and $203
Inventory 106,300 75,935
Deferred
commissions, 150,472 139,379
current
Prepaid expenses
and other 1,025,645 356,015
current
assets
Total current 3,317,973 3,063,492
assets
Property and 687,950 587,022
equipment, net
Operating lease 196,341 185,975
right-of-use-as…
Deferred
commissions, 296,422 280,190
non-current
Intangible 23,338 7,346
assets, net
Goodwill 466,313 365,075
Restricted cash 8,214 7,687
Other assets, 223,858 177,472
non-current
Total assets $ 5,220,409 $ 4,674,259
Liabilities and
Stockholders’
Equity
Current
liabilities:
Accounts payable $ 329,848 $ 153,312
Accrued
compensation and 300,060 347,205
benefits
Accrued expenses
and other 192,577 184,338
liabilities
Operating lease
liabilities, 50,273 44,080
current
Deferred 1,323,750 1,181,055
revenue, current
Total current 2,196,508 1,909,990
liabilities
Operating lease
liabilities, 175,034 172,063
non-current
Deferred
revenue, 1,197,521 1,046,442
non-current
Other
liabilities, 110,508 100,096
non-current
Total 3,679,571 3,228,591
liabilities
Stockholders’
equity:
Common stock and
additional 2,627,994 2,624,790
paid-in
capital
Accumulated
other
comprehensive -4,552 1,709
income
(loss)
Accumulated -1,082,604 -1,180,831
deficit
Total
stockholders’ 1,540,838 1,445,668
equity
Total
liabilities and $ 5,220,409 $ 4,674,259
stockholders’
equity
5
EVERPURE, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data, unaudited)
First
Second Two
Quarter Quart…
of of
Fiscal Fiscal
Reve… 2027 2026 2027 2026
──────────────────────────────────────────────────────────────────────────────
Prod… $ 686,7… $ 446,303 $ 1,263,… $ 818,4…
Subs… 499,1… 414,699 975,477 821,0…
serv…
Total 1,185… 861,002 2,238,… 1,639…
reve…
Cost
of
reve…
Prod… 238,2… 150,296 442,767 291,3…
Subs… 136,2… 106,370 261,307 207,6…
serv…
Total
cost 374,5… 256,666 704,074 498,9…
of
reve…
Gross 811,3… 604,336 1,534,… 1,140…
prof…
Oper…
expe…
Rese…
and 293,7… 242,026 552,841 463,7…
deve…
Sales
and 346,0… 285,890 693,933 564,4…
mark…
Gene…
and 108,4… 71,549 204,852 138,6…
admi…
Total
oper… 748,2… 599,465 1,451,… 1,166…
expe…
Inco…
(los… 63,155 4,871 83,094 -26,3…
from
oper…
Other
inco… 9,006 45,700 22,937 77,355
(exp…
net
Inco…
befo…
prov…
(ben… 72,161 50,571 106,031 51,055
for
inco…
taxes
Inco…
tax -1,988 3,453 7,804 17,932
prov…
(ben…
Net $ 74,149 $ 47,118 $ 98,227 $ 33,123
inco…
Net
inco…
per
share
attr… $ 0.22 $ 0.14 $ 0.30 $ 0.10
to
comm…
stoc…
basic
Net
inco…
per
share
attr… $ 0.21 $ 0.14 $ 0.28 $ 0.10
to
comm…
stoc…
dilu…
Weig…
shar…
used
in
comp…
net
inco… 332,9… 327,594 332,047 327,0…
per
share
attr…
to
comm…
stoc…
basic
Weig…
shar…
used
in
comp…
net
inco… 345,5… 337,734 344,811 337,3…
per
share
attr…
to
comm…
stoc…
dilu…
(1) Includes stock-based compensation expense as follows:
Cost of revenue -- $ 5,336 $ 4,149 $ 9,468 $ 7,415
product
Cost of revenue --
subscription 10,287 8,559 18,442 15,721
services
Research and 80,010 60,354 140,341 109,596
development
Sales and marketing 33,461 26,527 62,624 48,611
General and 30,721 17,804 51,004 32,325
administrative
Total stock-based $ 159,815 $ 117,393 $ 281,879 $ 213,668
compensation expense
6
EVERPURE, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
First
Cash Second Two
flows Quart… Quarte…
from of of
oper… Fiscal Fiscal
acti… 2027 2026 2027 2026
──────────────────────────────────────────────────────────────────────────────
Net $ 74,149 $ 47,118 $ 98,227 $ 33,123
inco…
Adju…
to
reco…
net
inco…
to
cash
prov…
by
oper…
acti…
Depr…
and 41,579 35,927 81,777 69,697
amor…
Stoc…
comp… 159,815 117,3… 281,8… 213,668
expe…
Unre…
gain
on — -27,9… — -30,401
stra…
inve…
Other -32 3,887 4,349 7,027
Chan…
in
oper…
asse…
and
liab…
net
of
effe…
of
acqu…
Acco…
rece… -137,3… -119,… -79,3… 150,381
net
Inve… -33,795 -14,9… -36,5… -12,268
Defe… -14,645 -7,738 -27,3… -11,395
comm…
Prep…
expe…
and -577,2… -13,9… -694,… -33,401
other
asse…
Oper…
lease 11,007 11,561 21,581 19,958
righ…
asse…
Acco… 140,337 23,845 156,5… -3,146
paya…
Accr…
comp…
and 68,528 84,945 -33,5… 602
other
liab…
Oper…
lease -11,999 -12,2… -22,6… -23,513
liab…
Defe… 143,287 83,519 293,1… 115,761
reve…
Net
cash
prov…
by -136,3… 212,1… 43,816 496,093
(used
in)
oper…
acti…
Cash
flows
from
inve…
acti…
Purc…
of
prop… -101,2… -62,0… -169,… -134,3…
and
equi…
Purc…
of -1,000 — -1,000 —
stra…
inve…
Acqu… -125,3… — -125,… —
Purc…
of
mark… -154,5… -141,… -267,… -256,1…
secu…
and
other
Sales
of 124,321 252,7… 193,4… 270,987
mark…
secu…
Matu…
of 72,736 80,254 139,4… 137,507
mark…
secu…
Net
cash
prov…
by -185,0… 129,7… -230,… 17,993
(used
in)
inve…
acti…
Cash
flows
from
fina…
acti…
Proc…
from
exer… 8,523 8,099 15,169 13,458
of
stock
opti…
Proc…
from
issu…
of
comm…
stock — — 30,001 27,240
under
empl…
stock
purc…
plan
Paym…
of
fina…
costs — -2,080 — -2,080
for
revo…
cred…
faci…
Prin…
paym…
on
borr… — -100,… -612 -101,1…
and
fina…
lease
obli…
Tax
with…
on
vest… -70,376 -56,1… -173,… -117,4…
of
equi…
awar…
Repu…
of -68,981 -42,2… -153,… -162,1…
comm…
stock
Net
cash
used -130,8… -192,… -281,… -342,1…
in
fina…
acti…
Net
incr…
(dec…
in
cash, -452,2… 149,5… -468,… 171,940
cash
equi…
and
rest…
cash
Cash,
cash
equi…
and
rest… 848,661 760,1… 864,9… 737,750
cash,
begi…
of
peri…
Cash,
cash
equi…
and
rest… $ 396,436 $ 909,6… $ 396,4… $ 909,690
cash,
end
of
peri…
(1) Includes capitalized internal-use software costs of $12.5 million and $8.7
million for the second quarter of fiscal 2027 and 2026 and $22.8 million and
$15.6 million for the first two quarters of fiscal 2027 and 2026.
7
Reconciliations of non-GAAP results of operations to the nearest comparable GAAP
measures
The following table presents non-GAAP gross margins by revenue source before
certain items (in thousands except percentages, unaudited):
──────────────────────────────────────────────────────────────────────────────
…
…
…
(a) GAAP gross margin is defined as GAAP gross profit divided by revenue.
(b) Non-GAAP gross margin is defined as non-GAAP gross profit divided by
revenue.
(c) To eliminate stock-based compensation expense.
(d) To eliminate payroll tax expense related to stock-based activities.
(e) To eliminate amortization expense of acquired intangible assets.
8
The following table presents certain non-GAAP consolidated results before
certain items (in thousands, except per share amounts and percentages,
unaudited):
──────────────────────────────────────────────────────────────────────────────
…
(a) GAAP operating margin is defined as GAAP operating income divided by
revenue.
(b) Non-GAAP operating margin is defined as non-GAAP operating income divided by
revenue.
(c) To eliminate stock-based compensation expense.
(d) To eliminate payroll tax expense related to stock-based activities.
(e) To eliminate amortization expense of acquired intangible assets.
(f) To eliminate amortization expense of debt issuance costs related to our
debt.
(g) To eliminate unrealized gain from mark-to-market adjustment on strategic
investment.
9
Reconciliation from net cash provided by (used in) operating activities to free
cash flow (in thousands except percentages, unaudited):
Second Quarter of
Fiscal 2027 2026
──────────────────────────────────────────────────────────────────────────────
Net cash provided by (used in)
operating $ -136,348 $ 212,157
activities
Less: purchases of property and -101,254 -62,027
equipment(1)
Free cash flow (non-GAAP) $ -237,602 $ 150,130
(1) Includes capitalized internal-use software costs of $12.5 million and $8.7
million for the second quarter of fiscal 2027 and 2026.
10