Everpure (P) investor relations material

Executive summary

• Q2 FY27 revenue grew 38% year-over-year to $1.19B–$1.2B, with product revenue up 54% and operating profit up 77%, both exceeding guidance and marking the third consecutive quarter above the Rule of 40.

• Growth was broad-based across all geographies, products, and business segments, with international revenue up 75% to $498M and U.S. revenue up 19%.

• Secured a second top-five hyperscaler design win and supply agreement, validating technology leadership and expanding long-term growth opportunities.

• Launched new AI and data management solutions, including DataStream, Data Intelligence, and Data Primacy architecture, driving new growth avenues.

• Completed the acquisition of 1touch to enhance data management capabilities.

Financial highlights

• Product revenue rose 54% to $687M; subscription services revenue grew 20% to $499M, representing 42% of total revenue.

• Annual recurring revenue (ARR) reached $2.13B, up 20% year-over-year; remaining performance obligations (RPO) increased 44% to $4.1B.

• Operating profit grew 77% to $230M, with a non-GAAP operating margin of 19.4%.

• Net income for Q2 FY27 was $74.1M, up from $47.1M in Q2 FY26; diluted EPS was $0.21.

• Free cash flow was negative $238M due to strategic component purchases; normalization expected with FY27 guidance of $600M–$800M.

Outlook and guidance

• FY27 revenue guidance raised to $5.03B–$5.07B, up 38% year-over-year at midpoint, a $500M increase from prior guidance.

• FY27 non-GAAP operating profit guidance raised to $940M–$960M, up 48–51% year-over-year at midpoint.

• Q3 revenue expected at $1.325B–$1.335B, with non-GAAP operating profit of $265M–$275M, both up 37–38% year-over-year.

• Significant hyperscale product revenue expected in Q3 and Q4.

• Free cash flow for FY27 projected at $600M–$800M.