Everpure, Inc.

What they do

Everpure sells integrated storage hardware with embedded licensed software, primarily its FlashArray and FlashBlade systems, plus Portworx by Everpure term software licenses. It also sells subscription and consumption offerings under Evergreen (including Evergreen//One and Evergreen//Flex), Everpure Cloud, support and maintenance, and professional services. Product revenue includes royalties from hyperscaler shipments of third-party hardware carrying a perpetual license to Everpure functional IP.

Revenue drivers

• Product revenue (FlashArray, FlashBlade, Portworx licenses, hyperscaler royalties) — $687 million in Q2 FY27, up 54% year-over-year, and the faster-growing of the two reported revenue lines.
• Subscription services revenue (Evergreen, Everpure Cloud, support, professional services) — $499 million in Q2 FY27, up 20% year-over-year; subscription ARR reached $2.1 billion, also up 20%.
• Hyperscaler and AI-driven use cases — A first hyperscaler DirectFlash design win began shipping in fiscal 2026 with shipments above the annual forecast, and a second top-five hyperscaler design win was announced August 10, 2026.
• Data Intelligence and data management software — Newer offerings including Everpure Data Intelligence (Data Primacy architecture), Everpure Data Stream and Pure1 AI Copilot, positioned to address AI data preparation and governance.

Recent performance

Q2 FY27 revenue was $1.2 billion, up 38% year-over-year, with product revenue up 54% to $687 million and subscription services revenue up 20% to $499 million. GAAP gross margin was 68.4% and non-GAAP gross margin 69.9%; GAAP operating income was $63 million and non-GAAP operating income $230 million. Operating cash flow was $(136) million and free cash flow $(238) million for the quarter. Total cash, cash equivalents and marketable securities were $1.0 billion, and the company repurchased approximately 0.9 million shares for about $69 million. Remaining performance obligations were $4.1 billion, up 44% year-over-year.

Strategy

The company is pursuing an all-flash data center vision built on four trends: all-flash infrastructure modernization, cloud-native applications, storage-as-a-service, and AI-driven storage demand amid rising energy costs. Six strategic growth pillars include expanding All-Flash into use cases served by disk today, delivering hybrid cloud architecture and data services, and growing hyperscale/AI engagements through DirectFlash and Purity software. Technology differentiation is framed around direct-to-NAND software, integrated DirectFlash modules, and next-generation flash management; its 300TB DirectFlash Module was released in 2025. The company is also extending Portworx and Everpure Cloud into third-party platforms, including Red Hat OpenShift, Azure Virtual Machines, and Cisco Intersight, through ecosystem partnerships.

Risks

• Hyperscaler concentration and ramp uncertainty — The company is devoting significant resources to flash storage for hyperscalers, with no assurance of meaningful revenue, operating margin, cash flow, or additional design wins.
• Supply chain and single-source suppliers — Everpure relies on a limited number of suppliers, in some cases single-source, and supplier allocation failures could delay shipments or reduce product margins.
• Macroeconomic, geopolitical and tariff exposure — Uncertain macroeconomic and geopolitical conditions, and adverse changes to tariffs and trade policy, may negatively affect business and results.
• Competition and product obsolescence — The company faces intense competition from established and emerging storage and public cloud vendors, and failure to introduce new or enhanced offerings could harm customer retention.

Outlook

Management raised FY27 revenue guidance to $5.03–$5.07 billion, representing 37% to 38% growth, from prior guidance of $4.41–$4.51 billion. FY27 non-GAAP operating income guidance rose to $940–$960 million (48% to 51% growth), from $820–$860 million. For Q3 FY27, the company guided revenue of $1.325–$1.335 billion, 37% to 38% growth, and non-GAAP operating income of $265–$275 million. Management said demand remains strong across the portfolio despite historic industry price increases in the first half of FY27.