Nutanix — Financial Results
Revenue Grew 18% to $2.54 Billion, Driven by Subscription Software
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Total Revenue | $1.86B | $2.15B | $2.54B |
| Subscription Revenue | $1.73B | $2.02B | $2.41B |
| Other Non-Subscription Revenue | $40.2M | $31.2M | $15.0M |
Total revenue grew 18% year-over-year, matching the same growth rate as two years prior — a sign of re-accelerating momentum. Nearly all of that revenue ($2.41B, or 95%) now comes from subscriptions, while the old-style non-subscription product revenue has shrunk to almost nothing ($15M). This reflects a completed transformation into a pure subscription software company.
Profitability Has Turned a Corner — Operating Income Hit $172.5 Million
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Operating Income (Loss) | -$207.2M | $7.6M | $172.5M |
| Operating Margin | -11.1% | 0.4% | 6.8% |
| Non-GAAP Operating Margin | 8.6% | 16.2% | 21.1% |
Three years ago Nutanix was losing over $200M from operations; today it is firmly profitable. The non-GAAP operating margin (which strips out stock-based compensation and similar non-cash items) reached 21.1%, up from 16.2% the prior year. Revenue is growing faster than costs, which is the dynamic investors want to see in a maturing software business.
Gross Margins Keep Expanding — Now at 86.8%
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Gross Margin | 82.2% | 84.9% | 86.8% |
Software businesses are valued heavily on gross margin (the percentage of revenue left after direct costs), and Nutanix's is moving in the right direction every year. At 86.8%, nearly 87 cents of every revenue dollar flows through to fund operations and potential profit — a hallmark of a high-quality software model.
Free Cash Flow Surged to $750 Million
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Operating Cash Flow | $272.4M | $672.9M | $821.5M |
| Free Cash Flow | $207.0M | $597.7M | $750.2M |
Free cash flow (cash generated after capital spending) more than tripled over two years, from $207M to $750M. This is the clearest sign that the business is genuinely generating cash — not just reporting accounting profits. It gives Nutanix the financial flexibility to invest in growth, repay debt, or return cash to shareholders.
Net Dollar Retention Rate Slipped to 108% — Still Healthy, But Worth Watching
The company's net dollar-based retention rate (a measure of whether existing customers are spending more or less than the prior year) fell from 114% to 108%. A rate above 100% still means customers are expanding their spending on average, but the decline suggests the pace of upselling to existing customers has slowed. Management notes a growing mix of renewals (vs. new or expanded deals) and longer sales cycles for large accounts as contributing factors.
Customer Base Grew to 29,000+ with Strong Long-Term Spending Patterns
Nutanix added roughly 2,760 net new end customers during the year, bringing the total to over 29,000. Among customers who have been with the company for at least 18 months, total lifetime spending averages more than 9.6 times their initial order — and for Global 2000 companies, that figure rises to 37.2 times. This suggests the product tends to expand deeply within organizations over time, which underpins long-term revenue durability.