Wed, Jun 11, 10:05 AM (10 days ago)
**Pure Storage, Inc. (PSTG) Q1 2026 Financial Summary** **Financial Health & Performance:** - **Revenue:** $778.5M, up 12% YoY, driven by 7% growth in product revenue and 17% growth in subscription services. - **Gross Margin:** 69%, down from 71% YoY due to increased sales of cost-sensitive workload solutions and higher QLC component costs. - **Operating Expenses:** $567.3M, up 11% YoY, with increases in R&D, sales & marketing, and G&A. - **Net Loss:** $13.9M, improved from $35.0M YoY. - **Cash Flow:** $283.9M from operations, $111.8M used in investing, and $149.8M used in financing. **Key Metrics & Trends:** - **Subscription ARR:** $1.7B, up 18% YoY. - **RPO:** $2.7B, up 17% YoY, with 48% expected to be recognized in the next 12 months. - **Cash & Marketable Securities:** $1.6B. **Uncertainties & Future Operations:** - **Macroeconomic Conditions:** Inflation, interest rates, tariffs, and economic slowdowns may impact demand. - **Supply Chain:** Managing component supply and scaling operations for hyperscale demand. - **Competition:** Intense competition from established companies and cloud providers. - **Subscription Transition:** Shifting to subscription services may impact revenue recognition and growth rates. - **Security & Compliance:** Ensuring data security and compliance with evolving regulations. **Management's Outlook:** - **Revenue Growth:** Expects continued growth driven by subscription services and hyperscale opportunities. - **Operating Expenses:** Plans to increase investments in R&D, sales & marketing, and G&A to support growth. - **Cash Flow:** Believes existing cash, marketable securities, and credit facility will support operations and capital needs. - **Risks:** Macroeconomic conditions, supply chain disruptions, competition, and regulatory changes pose risks to future performance.