Pure Storage reported Q3 FY2025 revenue of $831.1 million, up 9% year-over-year. Product revenue remained flat at $454.7 million, while subscription services revenue grew 22% to $376.3 million. Net income was $63.6 million, down from $70.4 million in Q3 FY2024. Subscription Annual Recurring Revenue (ARR) reached $1.57 billion, up 22% year-over-year.Gross margin decreased to 70% from 72% in the prior year quarter, primarily due to increased sales of lower-margin FlashBlade//E, FlashArray//E, and FlashArray//C solutions. Operating expenses rose 9% to $523.2 million, with increases across research and development, sales and marketing, and general and administrative functions. The company maintained a strong liquidity position with $1.6 billion in cash, cash equivalents, and marketable securities.Pure Storage announced a design win with a major hyperscaler, extending its DirectFlash technology into large-scale environments. The company also unveiled Pure Storage Cloud for Microsoft Azure VMware Solution and advanced its AI capabilities with FlashBlade//S500 certification for NVIDIA DGX SuperPOD architecture. Looking ahead, Pure Storage expects modest sequential decline in product gross margins for Q4 FY2025.

Pure Storage reported Q3 FY2025 revenue of $831.1 million, up 9% year-over-year. Product revenue remained flat at $454.7 million, while subscription services revenue grew 22% to $376.3 million. Net income was $63.6 million, down from $70.4 million in Q3 FY2024. Subscription Annual Recurring Revenue (ARR) reached $1.57 billion, up 22% year-over-year.Gross margin decreased to 70% from 72% in the prior year quarter, primarily due to increased sales of lower-margin FlashBlade//E, FlashArray//E, and FlashArray//C solutions. Operating expenses rose 9% to $523.2 million, with increases across research and development, sales and marketing, and general and administrative functions. The company maintained a strong liquidity position with $1.6 billion in cash, cash equivalents, and marketable securities.Pure Storage announced a design win with a major hyperscaler, extending its DirectFlash technology into large-scale environments. The company also unveiled Pure Storage Cloud for Microsoft Azure VMware Solution and advanced its AI capabilities with FlashBlade//S500 certification for NVIDIA DGX SuperPOD architecture. Looking ahead, Pure Storage expects modest sequential decline in product gross margins for Q4 FY2025.