Everpure (6PU) Q2 2027 Earnings Report

The call conveyed strong, broad-based growth across revenue, product sales, subscription metrics (ARR, RPO), and large deals, coupled with meaningful strategic validation via a second top-5 hyperscaler win and a >$1B Evergreen//One run rate. Short-term challenges include negative operating and free cash flow driven by strategic component purchases, supply-chain cost inflation, and reduced unit volumes due to higher pricing. Management presented a clear plan to accept lower near-term product margins to accelerate market share and expects cash flow normalization and hyperscaler ramps in future periods. On balance, the positive operational and demand indicators, raised guidance, and sizable recurring contract metrics outweigh the near-term financial headwinds.

Everpure raised Q3 revenue guidance to $1.325B–$1.335B (≈38% YoY at the midpoint) and Q3 operating profit to $265M–$275M (≈38% YoY at midpoint), and updated FY‑2027 guidance to $5.03B–$5.07B (≈38% YoY at midpoint) with operating profit $940M–$960M (≈50% YoY at midpoint), representing roughly a $500M revenue and $110M operating‑profit increase versus prior guidance. Management cited Q2 results that underpin the raise: revenue +38% YoY, product revenue $687M (+54% YoY), operating profit $230M (+77%, 19.4% margin), total gross margin 69.9%, product gross margin 66.2% (target range 65–70%) and subscription services margin 74.9%. SaaS and backlog metrics were strong: Evergreen//One TCV run‑rate >$1B, Storage‑as‑a‑Service TCV +121% YoY to $277M, subscription revenue $499M (+20%, 42% of company revenue), ARR >$2B (+20%), and RPO >$4B (+44%). Balance‑sheet and cash metrics included >$1B cash & investments, Q2 OpCF -$136M (strategic component buys), Q2 CapEx $101M (~9% of revenue), negative Q2 FCF -$238M but FY‑27 FCF expected $600M–$800M; the company repurchased 932k shares (~$69M) with ~$176M remaining authorization and ended the quarter with ~6,900 employees.