SANTA CLARA, Calif. – February 26, 2025 – Today Pure Storage (NYSE: PSTG), the IT pioneer that delivers the world’s most advanced data storage technologies and services, announced financial results for its fiscal fourth quarter and full year 2025 ended February 2, 2025.

“Pure Storage delivered solid fourth quarter and full year results as we fundamentally transform data storage and management for enterprises and hyperscalers,” said Pure Storage CEO and Chairman Charles Giancarlo. “We are enabling customers to modernize legacy storage architectures into enterprise data clouds with Fusion, our most revolutionary advancement this year, which unlocks the full potential of data, while significantly improving operations, data management, and economics for customers.”

•Q4 revenue $879.8 million, up 11% year-over-year

•Full-year revenue $3.2 billion, up 12% year-over-year

•Q4 subscription services revenue $385.1 million, up 17% year-over-year

•Full-year subscription services revenue $1.5 billion, up 22% year-over-year

•Q4 subscription annual recurring revenue (ARR) $1.7 billion, up 21% year-over-year

•Remaining performance obligations (RPO) $2.6 billion, up 14% year-over-year

•Q4 GAAP gross margin 67.5%; non-GAAP gross margin 69.2%

•Full-year GAAP gross margin 69.8%; non-GAAP gross margin 71.8%

•Q4 GAAP operating income $42.5 million; non-GAAP operating income $153.1 million

•Full-year GAAP operating income $85.3 million; non-GAAP operating income $559.4 million

•Q4 GAAP operating margin 4.8%; non-GAAP operating margin 17.4%

•Full-year GAAP operating margin 2.7%; non-GAAP operating margin 17.7%

•Q4 operating cash flow $208.0 million; free cash flow $151.9 million

•Full-year operating cash flow $753.1 million; free cash flow $526.4 million

•Total cash, cash equivalents, and marketable securities $1.5 billion

•Returned approximately $192 million and $374 million in Q4 and FY25, respectively, to stockholders through share repurchases of 3.1 million shares and 6.7 million shares, respectively.

•Authorized incremental share repurchases of up to an additional $250 million under its stock repurchase program.

“We achieved a major financial milestone in fiscal year 2025, surpassing $3 billion in total revenue for the first time while delivering strong operating profit,” said Pure Storage CFO Kevan Krysler. “It was a pivotal year marked by industry-leading innovation, setting the stage for sustainable long-term growth.”

•Continued Hyperscale Progress

◦Achieved an industry-first design win with a top-four hyperscaler, bringing Pure's DirectFlash® software into massive-scale environments traditionally dominated by hard disk drives (HDDs).

◦Announced a strategic collaboration with Kioxia and expanded its partnership with Micron Technology, enabling high-capacity, energy-efficient solutions for hyperscale environments.

•Market-Leading Platform Innovation

◦Released Pure Fusion™ v2, unlocking the ability for customers to operate their storage environments as enterprise data clouds, mirroring the benefits and efficiencies of hyperscaler operations.

◦Expanded the Pure//E™ family, which offers customers better economics, superior power and density efficiencies compared to disk and is displacing disk in data centers.

◦Unveiled seamless VMware-to-Azure migration solutions, providing enterprises with greater flexibility in hybrid cloud strategies.

◦Announced major enhancements to the Portworx® platform, which has experienced significant growth as enterprises increasingly adopt cloud-native applications and AI/ML solutions and transition from traditional VMware to modern VMs-on-Container and Kubernetes architectures.

•Accelerating Enterprise AI Adoption

◦Achieved certification of FlashBlade//S500 with NVIDIA DGX SuperPOD, optimizing AI training environments for performance, power efficiency, and scalability; also introduced validated reference architectures for NVIDIA OVX-ready solutions and BasePod certification.

◦Launched the Pure Storage GenAI Pod, a full-stack generative AI solution designed to simplify and accelerate enterprise AI deployments.

◦Partnered with CoreWeave, making its storage a standard option for AI workloads in CoreWeave's high-performance cloud.

•Strengthening Partner Ecosystem & Channel Growth

◦Unveiled a revamped Reseller Partner Program, designed to improve profitability for partners and give them increased autonomy while accelerating the transition from hard disk to all-flash storage.

•Industry Recognition and Accolades

◦Named a leader for the eleventh consecutive year in the Gartner® Magic Quadrant™ for Primary Storage Platforms and the fourth consecutive year in the Gartner® Magic Quadrant™ for File and Object Storage Platforms.

◦Achieved a world-class Net Promoter Score (NPS) of 81, representing nine consecutive years of achieving an 80+ NPS while growing from hundreds to 13,000 customers.

◦Recognized in Forbes’ Most Trusted Companies in America 2025 and Fortune’s Best Places to Work in Technology 2024.

◦Recognized by the Science Based Targets Initiative (SBTi) for Pure Storage’s Scope 1 and 2 greenhouse gas (GHG) emissions reduction targets as aligned with a 1.5°C trajectory - the most ambitious designation available.

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. Pure has not reconciled its guidance for non-GAAP operating income and non-GAAP operating margin to their most directly comparable GAAP measures because certain items that impact these measures are not within Pure’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.

Pure's audit committee has approved incremental share repurchases of up to an additional $250 million under its stock repurchase program. The authorization allows Pure to repurchase shares of its Class A common stock opportunistically and will be funded from available working capital. Repurchases may be made at management's discretion from time to time on the open market through privately negotiated transactions, transactions structured through investment banking institutions, block purchase techniques, 10b5-1 trading plans, or a combination of the foregoing. The repurchase program does not have an expiration date, does not obligate Pure to acquire any of its common stock, and may be suspended or discontinued by the company at any time without prior notice.

Pure will host a teleconference to discuss the fiscal fourth quarter and full year 2025 results at 2:00 pm PT today, February 26, 2025. A live audio broadcast of the conference call will be available on the Pure Storage Investor Relations website. Pure 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 Pure Storage Investor Relations website or for two weeks at 1-800-770-2030 (or 1-647-362-9199 for international callers) with passcode 5667482.

Additionally, Pure is scheduled to participate at the following investor conferences:

Date: Thursday, February 27, 2025

Time: 3:00 p.m. PT / 6:00 p.m. ET

Chairman and CEO Charles Giancarlo

Chief Financial Officer Kevan Krysler

Date: Friday, February 28, 2025

Time: 8:20 a.m. PT / 11:20 a.m. ET

Chief Technology Officer Rob Lee

The presentations will be webcast live and archived on Pure's Investor Relations website at investor.purestorage.com.

Pure Storage (NYSE: PSTG) delivers the industry’s most advanced data storage platform to store, manage, and protect the world’s data at any scale. With Pure Storage, organizations have ultimate simplicity and flexibility, saving time, money, and energy. From AI to archive, Pure Storage delivers a cloud experience with one unified Storage as-a-Service platform across on premises, cloud, and hosted environments. Our platform is built on our Evergreen architecture that evolves with your business – always getting newer and better with zero planned downtime, guaranteed. Our customers are actively increasing their capacity and processing power while significantly reducing their carbon and energy footprint. It’s easy to fall in love with Pure Storage, as evidenced by the highest Net Promoter Score in the industry. For more information, visit www.purestorage.com.

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Pure Storage, the Pure P Logo, Portworx, and the marks on the Pure Storage Trademark List are trademarks or registered trademarks of Pure Storage Inc. in the U.S. and/or other countries. The Trademark List can be found at purestorage.com/trademarks. Other names may be trademarks of their respective owners.

This press release contains forward-looking statements regarding our products, business and operations, including but not limited to our views relating to our opportunity relating to hyperscale and AI environments, our ability to meet hyperscalers’ performance and price requirements, 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, the timing and amount of revenue from hyperscaler licensing and support services, future period financial and business results, demand for our products and subscription services, including Evergreen//One, the relative sales mix between our subscription and consumption offerings and traditional capital expenditure sales, our technology and product strategy, specifically customer adoption of Pure Fusion™ and priorities around sustainability, the environmental and energy saving benefits to our customers of using our products, our ability to perform during current macro conditions and expand market share, our sustainability goals and benefits, the impact of inflation, economic or supply chain disruptions, our expectations regarding our product and technology differentiation, new customer acquisition, 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.purestorage.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 4, 2024. All information provided in this release and in the attachments is as of February 26, 2025, and Pure undertakes no duty to update this information unless required by law.

Subscription ARR is a key business metric that refers to total annualized contract value of all active subscription agreements on the last day of the quarter, plus on-demand revenue for the quarter multiplied by four.

To supplement our unaudited condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, Pure 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 (loss), non-GAAP net income (loss) 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, payments to former shareholders of acquired companies, payroll tax expense related to stock-based activities, amortization of debt issuance costs related to debt, amortization of intangible assets acquired from acquisitions, restructuring costs related to severance and termination benefits, and costs associated with the impairment of certain leased facilities that may not be indicative of our ongoing core business operating results. Pure 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 operating activities to free cash flow,” included at the end of this release.

Sandra Kerrigan – Investor Relations, Pure Storage

ir@purestorage.com

Penny Bruce – Global Communications, Pure Storage

pr@purestorage.com

###

 

						At the End of Fiscal
						2025						2024
Assets
Current assets:
Cash and cash equivalents						$	723,583					$	702,536
Marketable securities						798,237						828,557
Accounts receivable, net of allowance of $940 and $1,060						680,862						662,179
Inventory						42,810						42,663
Deferred commissions, current						99,286						88,712
Prepaid expenses and other current assets						222,501						173,407
Total current assets						2,567,279						2,498,054
Property and equipment, net						461,731						352,604
Operating lease right-of-use assets						146,655						129,942
Deferred commissions, non-current						229,334						215,620
Intangible assets, net						19,074						33,012
Goodwill						361,427						361,427
Restricted cash						12,553						9,595
Other assets, non-current						165,889						55,506
Total assets						$	3,963,942					$	3,655,760
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable						$	112,385					$	82,757
Accrued compensation and benefits						230,040						250,257
Accrued expenses and other liabilities						156,791						135,755
Operating lease liabilities, current						43,489						44,668
Deferred revenue, current						953,836						852,247
Debt, current						100,000						—
Total current liabilities						1,596,541						1,365,684
Long-term debt						—						100,000
Operating lease liabilities, non-current						137,277						123,201
Deferred revenue, non-current						841,467						742,275
Other liabilities, non-current						82,182						54,506
Total liabilities						2,657,467						2,385,666
Stockholders’ equity:
Common stock and additional paid-in capital						2,674,533						2,749,627
Accumulated other comprehensive income (loss)						954						(3,782)
Accumulated deficit						(1,369,012)						(1,475,751)
Total stockholders’ equity						1,306,475						1,270,094
Total liabilities and stockholders’ equity						$	3,963,942					$	3,655,760

 

						Fourth Quarter of Fiscal												Fiscal Year Ended
						2025						2024						2025						2024
Revenue:
Product						$	494,780					$	460,891					$	1,699,494					$	1,622,869
Subscription services						385,062						328,914						1,468,670						1,207,752
Total revenue						879,842						789,805						3,168,164						2,830,621
Cost of revenue:
Product (1)						189,901						128,842						575,347						472,430
Subscription services (1)						95,940						92,459						380,108						337,000
Total cost of revenue						285,841						221,301						955,455						809,430
Gross profit						594,001						568,504						2,212,709						2,021,191
Operating expenses:
Research and development (1)						215,009						186,841						804,405						736,764
Sales and marketing (1)						263,845						248,136						1,020,914						945,021
General and administrative (1)						72,680						59,299						286,231						252,243
Restructuring and impairment (2)						—						16,846						15,901						33,612
Total operating expenses						551,534						511,122						2,127,451						1,967,640
Income from operations						42,467						57,382						85,258						53,551
Other income (expense), net						11,892						13,416						62,576						37,035
Income before provision for income taxes						54,359						70,798						147,834						90,586
Income tax provision						11,924						5,360						41,095						29,275
Net income						$	42,435					$	65,438					$	106,739					$	61,311
Net income per share attributable to common    stockholders, basic						$	0.13					$	0.21					$	0.33					$	0.20
Net income per share attributable to common    stockholders, diluted						$	0.12					$	0.20					$	0.31					$	0.19
Weighted-average shares used in computing net    income per share attributable to common    stockholders, basic						326,504						317,731						325,774						311,831
Weighted-average shares used in computing net    income per share attributable to common    stockholders, diluted						343,109						332,014						342,704						332,568

(1) Includes stock-based compensation expense as follows:

 

Cost of revenue -- product						$	3,168					$	2,614					$	12,611					$	9,670
Cost of revenue -- subscription services						7,979						6,065						32,611						25,412
Research and development						50,668						41,069						201,058						167,294
Sales and marketing						24,025						18,863						96,355						74,746
General and administrative						16,510						7,573						78,671						54,305
Total stock-based compensation expense						$	102,350					$	76,184					$	421,306					$	331,427

(2) Includes expenses for severance and termination benefits related to workforce realignment and lease impairment and abandonment charges associated with cease-use of our former corporate headquarters.

 

						Fourth Quarter of Fiscal												Fiscal Year Ended
						2025						2024						2025						2024
Cash flows from operating activities
Net income						$	42,435					$	65,438					$	106,739					$	61,311
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization						29,125						32,856						126,654						124,416
Stock-based compensation expense						102,350						76,184						421,306						331,427
Noncash portion of lease impairment and abandonment						1,360						—						4,630						16,766
Other						3,061						7,403						8,168						1,559
Changes in operating assets and liabilities:
Accounts receivable, net						(102,638)						(25,728)						(18,640)						(49,687)
Inventory						551						1,532						(1,039)						6,810
Deferred commissions						(31,111)						(39,415)						(24,289)						(58,476)
Prepaid expenses and other assets						(56,213)						(45,355)						(121,657)						(25,669)
Operating lease right-of-use assets						8,251						8,230						34,162						35,499
Accounts payable						9,842						(20,376)						30,439						13,468
Accrued compensation and other liabilities						100,712						96,074						29,761						43,317
Operating lease liabilities						(13,564)						(10,434)						(43,917)						(31,891)
Deferred revenue						113,847						98,016						200,781						208,872
Net cash provided by operating activities						208,008						244,425						753,098						677,722
Cash flows from investing activities
Purchases of property and equipment(1)						(56,086)						(43,570)						(226,727)						(195,161)
Purchases of investments						(24,999)						—						(31,080)						—
Purchase of intangible assets						—						—						(1,250)						—
Purchases of marketable securities						(164,995)						(119,776)						(471,747)						(471,501)
Sales of marketable securities						39,734						6,558						100,975						59,053
Maturities of marketable securities and other						82,151						114,956						412,129						610,855
Net cash provided by (used in) investing activities						(124,195)						(41,832)						(217,700)						3,246
Cash flows from financing activities
Proceeds from exercise of stock options						5,973						6,866						27,167						39,770
Proceeds from issuance of common stock under employee stock purchase plan						—						—						51,736						45,089
Proceeds from borrowings						—						—						—						106,890
Principal payments on borrowings and finance lease obligations						(2,397)						(1,617)						(8,118)						(586,199)
Tax withholding on equity awards						(64,996)						(13,402)						(206,587)						(29,984)
Repurchases of common stock						(191,978)						(21,460)						(373,977)						(135,801)
Net cash used in financing activities						(253,398)						(29,613)						(509,779)						(560,235)
Net increase (decrease) in cash and cash equivalents and restricted cash						(169,585)						172,980						25,619						120,733
Cash, cash equivalents and restricted cash, beginning of period						907,335						539,151						712,131						591,398
Cash, cash equivalents and restricted cash, end of period						$	737,750					$	712,131					$	737,750					$	712,131

(1) Includes capitalized internal-use software costs of $5.5 million and $3.7 million for the fourth quarter of fiscal 2025 and 2024 and $21.2 million and $19.4 million for fiscal 2025 and 2024.

(e) To eliminate amortization expense of acquired intangible assets.

(f) To eliminate expenses for severance and termination benefits related to workforce realignment.

(g) To eliminate lease impairment charges associated with cease-use of our former corporate headquarters.

(h) To eliminate amortization expense of debt issuance costs related to our debt.

(f) To eliminate lease impairment and abandonment charges associated with cease-use of our former corporate headquarters.

(g) To eliminate amortization expense of acquired intangible assets.

(1) Includes capitalized internal-use software costs of $5.5 million and $3.7 million for the fourth quarter of fiscal 2025 and 2024 and $21.2 million and $19.4 million for fiscal 2025 and 2024.