revenue
5030–5070 $million
FY 2027
official guidance
EVERPURE, INC.
Last · NYSE$141.46-15.51 (-9.88%)close · yahoo · 10h ago
Market cap$47.14B333.2M sh
P/E · TTM194fwd 33.6 · eps 0.73
Beta1.40vs S&P 500
Div yield0.00%annual · TTM
52w range
$56.78$157.57
Volume5.0Msession
| Revenue | $4.3B |
|---|---|
| Operating income | $224.2M |
| Net income | $253.3M |
| Free cash flow | $-125.9M |
| Operating margin | 5.3% |
| Net margin | 5.9% |
| Return on equity | 16.4% |
| Period | TTM 2026-08-02 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Strong guidance raise and share-gain evidence outweigh near-term supply, volume, and cash-flow risks.
Buy: Everpure delivered unusually strong execution, with revenue up 38% to $1.2 billion, non-GAAP operating profit up 77% to $230 million, and FY27 revenue guidance raised to $5.03–$5.07 billion with 38% growth and 50% operating-profit growth at the midpoint. The bull case is broad-based share gain, subscription momentum, and a second top-five hyperscaler win; the main tension is that price increases are masking lower system-unit volumes while free cash flow was negative $238 million and hyperscaler revenue remains largely opaque.
Themes
- Share Gains
- Evergreen One
- Hyperscale
- Directflash
- Semiconductor Supply
- Vmware Alternatives
Near term
Q3 guidance calls for $1.325–$1.335 billion of revenue and $265–$275 million of operating profit, with significant hyperscale product revenue expected in the second half.
Component availability and NAND pricing remain key swing factors; management expects operating cash flow to normalize over the next two quarters after strategic purchases.
Evergreen//One TCV reached a greater-than-$1 billion annualized run rate, while Storage-as-a-Service TCV rose 121% year over year to $277 million.
Product gross margin is being deliberately held near the low end of the 65%–70% range, limiting near-term gross-margin upside but supporting customer retention and share gains.
Longer term
The second hyperscaler design win validates DirectFlash beyond enterprise storage, but meaningful revenue contribution is expected only from FY28 onward; management says commitments could extend through calendar 2028 and involve tens of exabytes.
Subscription services already represent 42% of revenue, with ARR up 20% to $2.1 billion and RPO up 44% to $4.1 billion, creating a stronger recurring-revenue base if conversion proceeds as indicated.
VMware alternatives exceeded a $100 million annual run rate, and Data Intelligence/Data Stream could broaden Everpure’s role in AI data management beyond storage hardware.
The competitive moat depends on DirectFlash’s claimed reliability, density, power, and operational advantages versus SSD estates; the Q&A provided validation from customer wins but limited quantified evidence of market-wide adoption or economics.
Red flags
Revenue growth is increasingly price- and mix-led: management acknowledged that overall system units declined and that customers are buying fewer systems at higher prices. Sustained price elasticity could weaken once supply normalizes.
Free cash flow was negative $238 million, including $136 million of negative operating cash flow and $101 million of capex; the $600–$800 million FY27 FCF outlook depends on inventory and cash-flow normalization that was not quantified.
Management declined to provide detailed hyperscaler contribution, customer identities, recurring-revenue mix, or precise order timing, leaving the size and concentration risk of this opportunity difficult to underwrite.
The company is intentionally absorbing some semiconductor-cost pressure through lower product margins. If NAND costs rise further or pricing cannot keep pace, operating leverage could reverse despite the raised outlook.
Forward outlook
revenue growth
38 pct
FY 2027
official guidance
revenue
1325–1335 $million
Q3 2027
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-03-25
- Earnings Growth
- Hyperscaler Exposure
- Supply Chain Concentration
- Purchase Commitments
- Subscription Transition
- Ai Storage
- Potential Dilution
Red flags
- Everpure had $565.8 million of non-cancelable contractual purchase obligations, primarily for inventory, software services, and hosting; excess supply could require price reductions or inventory write-downs.
- The company relies on a limited number of suppliers and, in some cases, single-source suppliers, without generally having long-term purchase agreements for key components.
- Aggregate lease payments of approximately $408.1 million from leases entered into during fiscal 2027 were excluded from the reported future lease-payment table, adding substantial forward fixed commitments.
- The company raised prices in the first quarter of fiscal 2027 in response to supply-chain cost increases, explicitly risking reduced sales or customer losses.
Documents
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