Everpure Announces Second Quarter Fiscal 2027 Financial Results

Rhea-AI Summary

Everpure (NYSE: P) reported second quarter fiscal 2027 revenue of $1.19 billion, up 38% year-over-year, with product revenue of $687 million (+54%) and subscription services revenue of $499 million (+20%). Subscription ARR reached $2.1 billion (+20%), and remaining performance obligations were $4.1 billion (+44%). GAAP gross margin was 68.4% and non-GAAP gross margin 69.9%.

GAAP operating income was $63 million (5.3% margin) and non-GAAP operating income $230 million (19.4% margin). Operating cash flow was $(136) million and free cash flow $(238) million. Everpure ended the quarter with $1.0 billion in cash, cash equivalents, and marketable securities and repurchased 0.9 million shares for about $69 million.

Everpure issued Q3 guidance for revenue of $1.325–$1.335 billion (37–38% YoY growth) and non-GAAP operating income of $265–$275 million. FY27 revenue guidance increased from $4.41–$4.51 billion to $5.03–$5.07 billion, and non-GAAP operating income guidance rose from $820–$860 million to $940–$960 million.

Positive

• Total revenue $1.19B, up 38% year-over-year in Q2 FY27
• Product revenue $687M, growing 54% year-over-year, outpacing subscription growth
• Subscription ARR $2.1B and RPO $4.1B, up 20% and 44% year-over-year
• FY27 revenue guidance raised from $4.41–$4.51B to $5.03–$5.07B (37–38% YoY growth)
• FY27 non-GAAP operating income guidance increased to $940–$960M (48–51% YoY growth)
• Non-GAAP operating income $230M in Q2, with 19.4% operating margin

Negative

• Operating cash flow $(136)M and free cash flow $(238)M in Q2 FY27
• Cash and cash equivalents $386M, down from $855M at end of fiscal 2026
• Total stock-based compensation expense $160M in Q2, up from $117M in prior-year quarter

Market Context

The platform recorded a -14.81% 24-hour reaction to the prior earnings event, despite positive opera...

Analysis

The platform recorded a -14.81% 24-hour reaction to the prior earnings event, despite positive operating disclosures. Current low short positioning and net insider selling add context for evaluating guidance durability and execution.

Key Figures

Revenue: $1.2 billion, up 38% Product Revenue: $687 million, up 54% Subscription ARR: $2.1 billion, up 20% +5 more

8 metrics

Revenue $1.2 billion, up 38% Q2 FY27 year-over-year

Product Revenue $687 million, up 54% Q2 FY27 year-over-year

Subscription ARR $2.1 billion, up 20% Q2 FY27 year-over-year

RPO $4.1 billion, up 44% Q2 FY27 year-over-year

GAAP Operating Income $63 million Q2 FY27

Free Cash Flow $(238) million Q2 FY27

Cash and Securities $1.0 billion At the end of Q2 FY27

FY27 Revenue Guidance $5.03B to $5.07B New guidance versus prior guidance of $4.41B to $4.51B

Previous Earnings Reports

1 past event · Latest: May 27 (Positive)

Same Type Pattern 1 events

Date	Event	Sentiment	24h Move	Catalyst
May 27	Q1 earnings results	Positive	-14.8%	Revenue growth and raised full-year guidance preceded a negative 24-hour stock reaction

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

The prior tag-matched earnings event diverged from favorable operating results, followed by a -14.81% 24-hour reaction.

Key Terms

subscription annual recurring revenue, remaining performance obligations, non-gaap operating income, free cash flow

4 terms

subscription annual recurring revenue financial

"Subscription annual recurring revenue (ARR) $2.1 billion, up 20% year-over-year"

Subscription annual recurring revenue (ARR) is the total amount of predictable revenue a company expects to receive from its subscription contracts over the next 12 months, assuming no upgrades or cancellations. Investors care because ARR reveals how much steady, rent-like income the business can count on, making it easier to judge growth trends, profitability potential and the impact of customer losses or gains.

remaining performance obligations financial

"Remaining performance obligations (RPO) $4.1 billion, up 44% year-over-year"

Remaining performance obligations are the work a company still needs to complete for its customers, like finishing a service or delivering a product. It’s important because it shows how much future income the company has coming in from current agreements, giving a clearer picture of its ongoing business.

non-gaap operating income financial

"non-GAAP operating income $230 million"

Non-GAAP operating income is a measure of a company's profit from its core business activities, calculated by excluding certain expenses or income that are not part of regular operations. It provides a clearer picture of how well the business is performing by focusing on ongoing operations, helping investors compare companies more consistently and make better-informed decisions.

free cash flow financial

"free cash flow $(238) million"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

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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., Aug. 26, 2026 /PRNewswire/ -- 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.

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 Rate	29% to 36%	48% to 51%

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.

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.

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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 Fusion™), 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.

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.

EVERPURE, INC. Condensed Consolidated Balance Sheets (in thousands, unaudited)
		At the End of
		Second Quarter of Fiscal 2027		Fiscal 2026
Assets
Current assets:
Cash and cash equivalents		$         385,694		$          854,873
Marketable securities		622,197		692,446
Accounts receivable, net of allowance of $204 and $203		1,027,665		944,844
Inventory		106,300		75,935
Deferred commissions, current		150,472		139,379
Prepaid expenses and other current assets		1,025,645		356,015
Total current assets		3,317,973		3,063,492
Property and equipment, net		687,950		587,022
Operating lease right-of-use-assets		196,341		185,975
Deferred commissions, non-current		296,422		280,190
Intangible assets, net		23,338		7,346
Goodwill		466,313		365,075
Restricted cash		8,214		7,687
Other assets, non-current		223,858		177,472
Total assets		$       5,220,409		$       4,674,259
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$          329,848		$          153,312
Accrued compensation and benefits		300,060		347,205
Accrued expenses and other liabilities		192,577		184,338
Operating lease liabilities, current		50,273		44,080
Deferred revenue, current		1,323,750		1,181,055
Total current liabilities		2,196,508		1,909,990
Operating lease liabilities, non-current		175,034		172,063
Deferred revenue, non-current		1,197,521		1,046,442
Other liabilities, non-current		110,508		100,096
Total liabilities		3,679,571		3,228,591
Stockholders' equity:
Common stock and additional paid-in capital		2,627,994		2,624,790
Accumulated other comprehensive income (loss)		(4,552)		1,709
Accumulated deficit		(1,082,604)		(1,180,831)
Total stockholders' equity		1,540,838		1,445,668
Total liabilities and stockholders' equity		$       5,220,409		$       4,674,259

 

EVERPURE, INC. Condensed Consolidated Statements of Operations (in thousands, except per share data, unaudited)
	Second Quarter of Fiscal				First Two Quarters of Fiscal
	2027		2026		2027		2026
Revenue:
Product	$   686,773		$   446,303		$ 1,263,317		$   818,447
Subscription services	499,125		414,699		975,477		821,040
Total revenue	1,185,898		861,002		2,238,794		1,639,487
Cost of revenue:
Product (1)	238,223		150,296		442,767		291,346
Subscription services (1)	136,287		106,370		261,307		207,652
Total cost of revenue	374,510		256,666		704,074		498,998
Gross profit	811,388		604,336		1,534,720		1,140,489
Operating expenses:
Research and development (1)	293,749		242,026		552,841		463,766
Sales and marketing (1)	346,077		285,890		693,933		564,402
General and administrative (1)	108,407		71,549		204,852		138,621
Total operating expenses	748,233		599,465		1,451,626		1,166,789
Income (loss) from operations	63,155		4,871		83,094		(26,300)
Other income (expense), net	9,006		45,700		22,937		77,355
Income before provision (benefit) for income taxes	72,161		50,571		106,031		51,055
Income tax provision (benefit)	(1,988)		3,453		7,804		17,932
Net income	$     74,149		$     47,118		$      98,227		$      33,123
Net income per share attributable to common stockholders, basic	$         0.22		$         0.14		$          0.30		$          0.10
Net income per share attributable to common stockholders, diluted	$         0.21		$         0.14		$          0.28		$          0.10
Weighted-average shares used in computing net income per share attributable to common stockholders, basic	332,942		327,594		332,047		327,066
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted	345,587		337,734		344,811		337,306

 

(1) Includes stock-based compensation expense as follows:
Cost of revenue -- product	$       5,336		$       4,149		$       9,468		$       7,415
Cost of revenue -- subscription services	10,287		8,559		18,442		15,721
Research and development	80,010		60,354		140,341		109,596
Sales and marketing	33,461		26,527		62,624		48,611
General and administrative	30,721		17,804		51,004		32,325
Total stock-based compensation expense	$   159,815		$   117,393		$   281,879		$   213,668

 

EVERPURE, INC. Condensed Consolidated Statements of Cash Flows (in thousands, unaudited)
	Second Quarter of Fiscal				First Two Quarters of Fiscal
	2027		2026		2027		2026
Cash flows from operating activities
Net income	$      74,149		$      47,118		$      98,227		$      33,123
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	41,579		35,927		81,777		69,697
Stock-based compensation expense	159,815		117,393		281,879		213,668
Unrealized gain on strategic investment	—		(27,966)		—		(30,401)
Other	(32)		3,887		4,349		7,027
Changes in operating assets and liabilities, net of effects of acquisition:
Accounts receivable, net	(137,350)		(119,161)		(79,318)		150,381
Inventory	(33,795)		(14,937)		(36,563)		(12,268)
Deferred commissions	(14,645)		(7,738)		(27,325)		(11,395)
Prepaid expenses and other assets	(577,229)		(13,961)		(694,305)		(33,401)
Operating lease right-of-use assets	11,007		11,561		21,581		19,958
Accounts payable	140,337		23,845		156,591		(3,146)
Accrued compensation and other liabilities	68,528		84,945		(33,541)		602
Operating lease liabilities	(11,999)		(12,275)		(22,683)		(23,513)
Deferred revenue	143,287		83,519		293,147		115,761
Net cash provided by (used in) operating activities	(136,348)		212,157		43,816		496,093
Cash flows from investing activities
Purchases of property and equipment (1)	(101,254)		(62,027)		(169,668)		(134,373)
Purchase of strategic investment	(1,000)		—		(1,000)		—
Acquisition	(125,308)		—		(125,308)		—
Purchases of marketable securities and other	(154,538)		(141,232)		(267,490)		(256,128)
Sales of marketable securities	124,321		252,780		193,481		270,987
Maturities of marketable securities	72,736		80,254		139,448		137,507
Net cash provided by (used in) investing activities	(185,043)		129,775		(230,537)		17,993
Cash flows from financing activities
Proceeds from exercise of stock options	8,523		8,099		15,169		13,458
Proceeds from issuance of common stock under employee stock purchase plan	—		—		30,001		27,240
Payments of financing costs for revolving credit facility	—		(2,080)		—		(2,080)
Principal payments on borrowings and finance lease obligations	—		(100,000)		(612)		(101,125)
Tax withholding on vesting of equity awards	(70,376)		(56,161)		(173,296)		(117,461)
Repurchases of common stock	(68,981)		(42,242)		(153,084)		(162,178)
Net cash used in financing activities	(130,834)		(192,384)		(281,822)		(342,146)
Net increase (decrease) in cash, cash equivalents and restricted cash	(452,225)		149,548		(468,543)		171,940
Cash, cash equivalents and restricted cash, beginning of period	848,661		760,142		864,979		737,750
Cash, cash equivalents and restricted cash, end of period	$    396,436		$    909,690		$    396,436		$    909,690

(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.

 

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):
		Second Quarter of Fiscal 2027												Second Quarter of Fiscal 2026
		GAAP results		GAAP gross margin (a)		Adjustment				Non- GAAP results		Non- GAAP gross margin (b)		GAAP results		GAAP gross margin (a)		Adjustment				Non- GAAP results		Non- GAAP gross margin (b)
						$     5,336		(c)										$    4,149		(c)
						188		(d)										127		(d)
						246		(e)										3,306		(e)
Gross profit -- product		$         448,550		65.3 %		$     5,770				$ 454,320		66.2 %		$         296,007		66.3 %		$    7,582				$         303,589		68.0 %
						$   10,287		(c)										$    8,559		(c)
						517		(d)										466		(d)
						435		(e)										—
Gross profit -- subscription services		$         362,838		72.7 %		$   11,239				$ 374,077		74.9 %		$         308,329		74.4 %		$    9,025				$         317,354		76.5 %
						$   15,623		(c)										$  12,708		(c)
						705		(d)										593		(d)
						681		(e)										3,306		(e)
Total gross profit		$         811,388		68.4 %		$   17,009				$ 828,397		69.9 %		$         604,336		70.2 %		$  16,607				$         620,943		72.1 %

(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.

 

The following table presents certain non-GAAP consolidated results before certain items (in thousands, except per share amounts and percentages, unaudited):
	Second Quarter of Fiscal 2027												Second Quarter of Fiscal 2026
	GAAP results		GAAP operating margin (a)		Adjustment				Non- GAAP results		Non- GAAP operating margin (b)		GAAP results		GAAP operating margin (a)		Adjustment			Non- GAAP results		Non- GAAP operating margin (b)
					$ 159,815		(c)										$ 117,393		(c)
					5,400		(d)										4,164		(d)
					1,261		(e)										3,536		(e)
Operating income	$  63,155		5.3 %		$ 166,476				$ 229,631		19.4 %		$   4,871		0.6 %		$ 125,093			$ 129,964		15.1 %
					$ 159,815		(c)										$ 117,393		(c)
					5,400		(d)										4,164		(d)
					1,261		(e)										3,536		(e)
					105		(f)										230		(f)
					—												(27,966)		(g)
Net income	$  74,149				$ 166,581				$ 240,730				$  47,118				$   97,357			$ 144,475
Net income per share -- diluted	$    0.21								$    0.70				$    0.14							$    0.43
Weighted- average shares used in per share calculation -- diluted	345,587				—				345,587				337,734				—			337,734

(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.

 

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 activities	$         (136,348)		$          212,157
Less: purchases of property and equipment (1)	(101,254)		(62,027)
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.

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SOURCE Everpure

FAQ

How did Everpure (NYSE: P) perform financially in Q2 fiscal 2027?

Everpure reported Q2 FY27 revenue of $1.19 billion, up 38% year-over-year. According to Everpure, product revenue was $687 million (+54%), subscription services revenue was $499 million (+20%), and GAAP net income reached $74.1 million with diluted EPS of $0.21.

What guidance did Everpure (P) provide for Q3 fiscal 2027 revenue and profit?

Everpure guided Q3 FY27 revenue to $1.325–$1.335 billion, implying 37–38% year-over-year growth. According to Everpure, non-GAAP operating income is expected between $265 million and $275 million, representing a projected non-GAAP operating income growth rate of 35–40% year-over-year.

How much did Everpure raise its full-year FY27 revenue and profit guidance?

Everpure raised FY27 revenue guidance to $5.03–$5.07 billion, from $4.41–$4.51 billion previously. According to Everpure, this reflects expected revenue growth of 37–38%. FY27 non-GAAP operating income guidance increased to $940–$960 million, up from $820–$860 million.

What were Everpure’s key subscription metrics like ARR and RPO in Q2 FY27?

Everpure reported subscription annual recurring revenue (ARR) of $2.1 billion in Q2 FY27, up 20% year-over-year. According to Everpure, remaining performance obligations (RPO) totaled $4.1 billion, representing 44% year-over-year growth and indicating contracted future revenue visibility.

How strong were Everpure’s margins and operating income in Q2 fiscal 2027?

Everpure delivered GAAP gross margin of 68.4% and non-GAAP gross margin of 69.9% in Q2 FY27. According to Everpure, GAAP operating income was $63 million (5.3% margin), while non-GAAP operating income reached $230 million (19.4% margin).

What is Everpure’s cash position, cash flow, and share repurchase activity in Q2 FY27?

Everpure ended Q2 FY27 with $1.0 billion in cash, cash equivalents, and marketable securities. According to Everpure, operating cash flow was $(136) million, free cash flow was $(238) million, and the company repurchased about 0.9 million shares for roughly $69 million.