AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 3/6 · 18/10/2026
Moat63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Seven generations of non-disruptive upgrades, actual historical renewal growth and substantial non-cancelable customer commitments support a demonstrated installed-base switching advantage. Competitors have similar incumbent advantages, limiting its breadth.
durability · 2/4 · Multiple product generations and seven-year customer leases support multiyear persistence. They do not establish durable superiority after contracts expire, particularly as competing technologies improve.
customer dependency · 3/4 · Preserving running production systems through upgrades and accepting substantial non-cancelable obligations indicate meaningful operating and contractual dependence. This is partly indirect evidence; migration costs and installed-base retention rates are not disclosed.
erosion resilience · 2/4 · Successful product evolution and continuing revenue growth demonstrate resilience so far. Competitor discounting, incumbent relationships and alternative technologies constrain confidence; design wins and management's claimed advantages do not resolve those threats.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · — · The passages provide no observed Everpure price changes or realized price-versus-volume analysis. Competitor discounts and potential adverse renewal terms do not establish Everpure's actual pricing outcomes.
retention · 3/4 · Actual higher Evergreen renewals, successive upgrade continuity and substantial contracted demand support repeat demand. NPS improvement adds indirect satisfaction evidence. None establishes retention following a price increase, and no retention rate is inferred.
margin resilience · 2/4 · Historical subscription-margin improvement reflected renewals and operational efficiencies, and fiscal 2026 non-GAAP operating profit exceeded its target despite reported component-cost increases. Earlier product-margin support also came from cheaper materials. This mixed evidence does not isolate pricing or demonstrate current gross-margin protection.
contractual freedom · — · Non-cancelable commitments establish enforceable demand, but the supplied terms do not disclose unilateral repricing rights, escalators or discretion to change service terms. Seven-year leases cannot be assumed to permit repricing.
Predictability98
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 8.40
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 2.61
Financial strength—
Missing required inputs: debtFcfGrade, netDebtEbitGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- interestCoverageGrade
- 100.00
- currentRatioGrade
- 68.31
- Interest coverage (x)
- 34.02
- Current ratio (x)
- 1.60
Capital allocation—
Missing required inputs: operatingReturn. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year average dilution (%)
- 3.15
- 3-year average SBC / revenue (%)
- 12.72
- cashConversionGrade
- 100.00
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Fiscal 2026 operating cash generation improved to $880.1 million, but first-half fiscal 2027 operating cash flow fell to $43.8 million while repurchases consumed $153.0 million and the completed acquisition cost $125.9 million. Rising RSU expense and acquisition benefits not yet demonstrated make the overall record mixed; the cash-flow decline's causes are not supplied.
incentive alignment · 3/4 · Actual compensation practices include performance-based incentives, multiyear equity, ownership guidelines and clawbacks. Fiscal 2026 awards earned above target and granted long-term market-value awards establish implementation rather than proposals alone. Rising equity compensation and missing executive ownership data limit confidence in the net shareholder outcome.
execution · 3/4 · Fiscal 2026 revenue and non-GAAP operating profit exceeded established targets, audited NPS reached 84, and subsequent reported revenue grew materially. Seven-generation upgrade delivery, reported Fusion adoption and a second hyperscaler design win corroborate execution. Adoption and design wins do not establish future returns, and execution quality is partly inferred from operating results.
governance · 2/4 · Eight of ten directors are independent, compensation oversight has disclosed safeguards, and actual meeting attendance supports functioning oversight. The combined chairman and CEO role and disclosed classified-board election structure temper those positives. The annual-meeting election proposal is not treated as an adopted outcome.
Evidence
•Non-Disruptive Upgrades - We have the ability to upgrade both hardware and software non-disruptively, resulting in continuous online improvement, without creating disruption or affecting running production systems.
Business: non-disruptive hardware and software upgrades · Filed 25/03/2026
FlashArray has evolved through seven generations of controllers, a 100x increase in density, and a transition to all-NVMe flash-all delivered to customers non-disruptively through our Evergreen service.
Business: FlashArray evolution across seven controller generations · Filed 25/03/2026
The increase in subscription services gross margin for fiscal 2024 compared to fiscal 2023 was driven by higher subscription services revenue growth from sales of Evergreen//One and higher renewals in Evergreen subscriptions coupled with continued focus on operational efficiencies.
MD&A: fiscal 2024 subscription renewals and gross-margin improvement · Filed 01/04/2024
Remaining Performance Obligations Total remaining performance obligations (RPO) which is contracted but not recognized revenue was $4.1 billion at the end of the second quarter of fiscal 2027, of which $44.5 million relates to a lessor arrangement.
Notes: second-quarter fiscal 2027 remaining performance obligations · Filed 04/09/2026
RPO consists of both deferred revenue and non-cancelable amounts that are expected to be invoiced and recognized as revenue in future periods.
Notes: deferred revenue and non-cancelable amounts within RPO · Filed 04/09/2026
Of the $4.1 billion RPO at the end of the second quarter of fiscal 2027, we expect to recognize approximately 42% over the next 12 months, and the remainder thereafter.
Notes: expected recognition timing of RPO · Filed 04/09/2026
79 Supplemental cash flow information related to leases is as follows (in thousands): Fiscal Year Ended 2025 2026 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases $ 51,949 $ 58,302 Financing cash outflows for finance leases $ 5,155 $ 1,207 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 56,813 $ 81,968 Finance leases $ — $ 3,059 Future lease payments under our non-cancelable leases at the end of fiscal 2026 are as follows (in thousands): Fiscal Years Ending Operating Leases Finance Leases 2027 $ 52,429 $ 704 2028 58,123 704 2029 49,412 704 2030 46,458 704 2031 34,889 410 Thereafter 10,377 — Total future lease payments $ 251,688 $ 3,226 Less: imputed interest (35,545) (333) Present value of total lease liabilities $ 216,143 $ 2,893 Lessor Arrangement We, as a lessor, have entered into non-cancelable arrangements to lease our storage and data management solutions and subscription services.
Note 8: lessor arrangements are non-cancelable · Filed 25/03/2026
The arrangements include multiple seven-year leases that commenced during fiscal 2025 and 2026, or will commence in the first quarter of fiscal 2027, with total net consideration of $340.3 million.
Note 8: seven-year customer leases and total consideration · Filed 25/03/2026
We face intense competition from a number of established companies that sell competing storage products, including Dell EMC, HP Enterprise, Huawei, Hitachi Vantara, IBM, and NetApp.
Risk factors: named storage competitors · Filed 04/09/2026
Additionally, most of our prospective customers have existing storage products supplied by our competitors who have an advantage in retaining the customer because, among other things, the incumbent vendor already understands the customer’s IT infrastructure, user demands and needs, or the customer is concerned about actual or perceived costs of switching to a new vendor and technology.
Risk factors: incumbent infrastructure knowledge and customer switching concerns · Filed 04/09/2026
The enhancement of all-flash storage products by incumbent vendors and changes or advances in alternative technologies or adoption of cloud storage offerings that do not utilize our Everpure Platform could adversely affect the demand for our products.
Risk factors: incumbent product improvements and alternative technologies · Filed 04/09/2026
Further, some of our competitors offer their storage products either at significant discounts or even for free in competing against us.
Risk factors: competitors offer significant discounts or free storage products · Filed 05/06/2026
If our customers renew their contracts, they may renew on terms that are less economically beneficial to us.
Risk factors: potential renewal on less beneficial terms · Filed 04/09/2026
During fiscal 2026, the cost of our components increased significantly, and we anticipate continued component pricing volatility throughout fiscal 2027.
Risk factors: significant fiscal 2026 component-cost increases · Filed 25/03/2026
Lower material pricing, including flash, has also favorably impacted gross margins.
MD&A: lower material prices favorably affected historical gross margins · Filed 01/04/2024
In March 2026, our compensation committee reviewed our corporate performance for fiscal 2026, which was achieved as follows: (i) full year revenue of $3.663 billion, against a target of $3.516 billion, (ii) full year non-GAAP operating profit of $635 million, against a target of $598 million, and (iii) an audited NPS of 84, against a target range of 78 to 84.
Compensation discussion: fiscal 2026 revenue, non-GAAP operating profit and audited NPS against targets · Filed 01/05/2026
Notes to Condensed Consolidated Financial Statements (Unaudited) Disaggregation of Revenue The following table depicts the disaggregation of revenue by geographic area based on the billing address of our customers and is consistent with how we evaluate our financial performance (in thousands): Second Quarter of Fiscal First Two Quarters of Fiscal 2026 2027 2026 2027 United States $ 577,036 $ 688,409 $ 1,107,694 $ 1,427,799 Rest of the world 283,966 497,489 531,793 810,995 Total revenue $ 861,002 $ 1,185,898 $ 1,639,487 $ 2,238,794 Long-Lived Assets by Geographic Area Long-lived assets, which are comprised of property and equipment, net, by geographic area are summarized as follows (in thousands): At the End of Fiscal 2026 Second Quarter of Fiscal 2027 United States $ 569,932 $ 661,089 Rest of the world 17,090 26,861 Total long-lived assets $ 587,022 $ 687,950 26 Table of Contents Item 2.
Notes: fiscal 2027 quarterly and first-half revenue results · Filed 04/09/2026
50 Cash Flows The following table summarizes our cash flows for the periods presented (in thousands): Fiscal Year Ended 2025 2026 Net cash provided by operating activities $ 753,598 $ 880,085 Net cash used in investing activities $ (218,200) $ (108,069) Net cash used in financing activities $ (509,779) $ (644,787) Operating Activities Net cash provided by operating activities consists of net income, adjusted for non-cash items and changes in operating assets and liabilities.
MD&A: fiscal 2025 and fiscal 2026 operating cash flows · Filed 25/03/2026
Cash Flows The following table summarizes our cash flows for the periods presented (in thousands, unaudited): First Two Quarters of Fiscal 2026 2027 Net cash provided by operating activities $ 496,093 $ 43,816 Net cash provided by (used in) investing activities $ 17,993 $ (230,537) Net cash used in financing activities $ (342,146) $ (281,822) Operating Activities Net cash provided by operating activities consists of net income, adjusted for non-cash items and changes in operating assets and liabilities.
MD&A: fiscal 2026 and fiscal 2027 first-half cash flows · Filed 04/09/2026
The following table summarizes the stock repurchase activity for the second quarter and first two quarters of fiscal 2026 and 2027 (in thousands except for per share amounts): Second Quarter of Fiscal First Two Quarters of Fiscal 2026 2027 2026 2027 Number of shares repurchased and retired 772 932 3,264 2,214 Average price per share (1) $ 54.70 $ 74.01 $ 49.66 $ 69.13 Aggregate purchase price (1) $ 42,227 $ 68,962 $ 162,114 $ 153,039 20 Table of Contents EVERPURE, INC.
Notes: completed first-half share repurchases · Filed 04/09/2026
Business Combination 1touch Acquisition On May 7, 2026, we acquired all outstanding equity interests in 1touch, an innovator in data intelligence and orchestration that provides a comprehensive, unified view of enterprise information, for total cash consideration of $125.9 million.
Business combination: completed 1touch acquisition and cash consideration · Filed 04/09/2026
The financial results of 1touch have been included in our consolidated statements of operations since the acquisition date and are not material.
Business combination: acquired financial results were not material · Filed 04/09/2026
Stock-based compensation expense related to RSUs was $89.1 million and $103.6 million during the second quarter of fiscal 2026 and 2027, and $166.3 million and $189.2 million during the first two quarters of fiscal 2026 and 2027.
Equity incentive plans: realized RSU compensation expense · Filed 04/09/2026
Listed below are highlights of our compensation policies and practices: WHAT WE DO WHAT WE DON’T DO •Primarily performance-based cash and equity incentives •Caps on performance-based cash and equity incentive compensation related to the corporate performance factor •100% independent directors on our compensation committee •Independent compensation consultant engaged by our compensation committee •Annual review and approval of our compensation strategy •Significant portion of compensation based on corporate performance metrics •Three-year equity vesting period for PSUs •Stock ownership guidelines •Policy regarding incentive compensation clawback •No “single trigger” change of control payments or benefits •No post-termination retirement or pension-type non-cash benefits •No perquisites other than those available to our employees generally •No tax gross-ups for change of control payments or benefits PERFORMANCE-BASED EXECUTIVE OFFICER PAY The chart below shows the pay components and mix for our Chief Executive Officer for fiscal 2026 (based on base salary, target cash bonus and grant date fair value of equity award at target).
Proxy summary: compensation policies, committee independence and ownership guidelines · Filed 01/05/2026
For our equity program, we significantly exceeded our revenue and TCV Subscription Sales targets, resulting in a 187% payout for the fiscal 2026 performance-based restricted stock unit (PSU) awards.
Compensation discussion: actual fiscal 2026 performance-based award payout · Filed 01/05/2026
Notes to Condensed Consolidated Financial Statements (Unaudited) In fiscal 2024, 2026, and 2027, we granted 4.2 million, 1.2 million and 0.7 million LTP Awards, respectively, contingent on achieving specified market capitalization or stock price thresholds measured over approximately three- to five-year periods.
Equity incentive plans: granted long-term awards with market-value performance thresholds · Filed 04/09/2026
•8 of 10 directors are independent.
Board structure: eight of ten directors independent · Filed 01/05/2026
During our last fiscal year, each director attended 75% or more of the aggregate of the meetings of our board of directors and of the committees on which he or she served.
Board meetings: actual director attendance · Filed 01/05/2026
NAMED EXECUTIVE OFFICERS DURING FISCAL 2026 Our named executive officers for fiscal 2026 are: •Charles Giancarlo, our Chairman and Chief Executive Officer (our CEO); •Tarek Robbiati, our Chief Financial Officer; •John Colgrove, our Chief Visionary Officer and Founder; •Ajay Singh, our Chief Product Officer; •Patrick Finn, our Chief Revenue Officer; and •Kevan Krysler, our former Chief Financial Officer.
Named executive officers: combined chairman and CEO role · Filed 01/05/2026
VOTING PROPOSALS Board Recommendation PROPOSAL 1: To elect three Class II directors to serve until our annual meeting of stockholders in 2029; FOR each nominee PROPOSAL 2: To ratify the selection of Deloitte & Touche LLP as our independent registered public accounting firm for our fiscal year ending January 31, 2027; and FOR PROPOSAL 3: To consider an advisory vote on the compensation of our named executive officers, as described in this proxy statement.
Annual meeting notice: Class II director election proposal · Filed 01/05/2026
The adoption of Fusion continues to grow, reaching more than 600 customers since its introduction.
Shareholder letter: reported Fusion adoption · Filed 01/05/2026
In August 2026, we secured a second hyperscaler design win.
Risk factors: August 2026 second hyperscaler design win · Filed 04/09/2026
Further, even if we do secure additional hyperscaler design wins, a design win does not guarantee sales.
Risk factors: design wins do not guarantee sales · Filed 04/09/2026
Our competitive lead continues to grow, and is buttressed by our four sustainable, competitive advantages: our Purity operating system which is the consistent basis for all of our data storage products, our unique DirectFlash™ technology which maximizes the price-performance of Flash storage, our unique Evergreen technology and business model, and Pure Fusion which allows customers to build their own Enterprise Data Cloud.
Shareholder letter: management's asserted sustainable competitive advantages · Filed 01/05/2026
We have over 3,000 issued patents and patent applications in the United States and foreign countries.
Business: issued patents and patent applications · Filed 25/03/2026
Our NPS increase to 84 from 81 in the prior fiscal year underscores our exceptional customer loyalty and satisfaction, and is especially notable given that we added over 1,000 new customers over the same period.
Compensation discussion: NPS improvement and new customer additions · Filed 01/05/2026
