Nutanix (NTNX) Q2 2025 earnings summary

Executive summary

• Q2 FY25 revenue reached $654.7 million, up 16% year-over-year, with ARR growing 19% to $2.06 billion and strong free cash flow performance.

• New logo additions exceeded 50% year-over-year for the second consecutive quarter, with total customer count reaching 27,870 and strong expansion in Global 2000 enterprises.

• Profitability improved, with non-GAAP operating margin at 24.6% and GAAP net income rising to $56.4 million.

• Balance sheet strengthened through issuance of $862.5 million in convertible notes and a $500 million revolving credit facility.

• Full-year FY25 guidance raised for revenue, non-GAAP operating margin, and free cash flow.

Financial highlights

• Q2 FY25 revenue: $654.7 million (+16% YoY); ARR: $2.06 billion (+19% YoY); free cash flow: $187.1 million.

• Non-GAAP gross margin: 88.3%; GAAP gross margin: 87.0%.

• Non-GAAP operating margin: 24.6% (up 270 bps YoY); GAAP operating margin: 10.0% (up 340 bps YoY).

• Net income: $56.4 million (Q2 FY25) vs. $32.8 million (Q2 FY24); diluted EPS: $0.19 (Q2 FY25); non-GAAP net income per diluted share: $0.56.

• Cash, cash equivalents, and short-term investments: $1.74 billion at Q2 end.

Outlook and guidance

• Q3 FY25 guidance: revenue of $620–$630 million; non-GAAP operating margin of 17–18%.

• FY25 guidance: revenue of $2.495–$2.515 billion, non-GAAP operating margin of 17.5–18.5%, free cash flow of $650–$700 million.

• Guidance assumes continued strong new logo performance, steady expansion, and increased investment in sales, marketing, and R&D in H2.