Everpure (P) Q2 2025 earnings summary

Executive summary

• Q2 FY25 revenue grew 11% year-over-year to $763.8M, driven by strong subscription services growth and steady product sales.

• Subscription ARR reached $1.51B, up 24% year-over-year, with robust performance from Evergreen//One and high-velocity business.

• Net income for Q2 FY25 was $35.7M, reversing a net loss in the prior year, and non-GAAP operating margin reached 18.1%.

• Platform innovation included new AI storage services, enhanced automation, and the launch of a generative AI copilot for storage.

• Customer base expanded to over 13,000, including 62% of Fortune 500 companies, with 261 new customer additions in the quarter.

Financial highlights

• Q2 FY25 revenue: $763.8M (11% YoY growth); subscription services revenue: $361.2M (25% YoY growth); product revenue: $402.6M (1% YoY growth).

• Subscription ARR: $1.51B (24% YoY growth); RPO: $2.3B, up 24% YoY.

• Non-GAAP gross margin: 72.8%; GAAP gross margin: 70.7%; subscription services gross margin: 76.4%.

• Operating cash flow: $226.6M; free cash flow: $166.6M; cash and investments totaled $1.8B at quarter end.

• Net income per diluted share was $0.10 in Q2 FY25.

Outlook and guidance

• Q3 FY25 revenue expected at $815M, with non-GAAP operating income forecast at $140M (17.2% margin).

• FY25 revenue guidance reaffirmed at $3.1B (10.5% YoY growth), with non-GAAP operating income projected at $532M (17% margin).

• Evergreen//One TCV sales forecast for FY25 adjusted to $500M, up ~25% YoY.

• Anticipates a modest sequential decline in product gross margins in the second half, reflecting strategic expansion into cost-sensitive workloads.

• Management expects continued growth in subscription services and recurring revenue, with RPO at $2.3B.