Cash and investments increased by $51 million to $543.5 million; free cash flow was $71.7 million.
Days sales outstanding improved significantly to 41 days from 63 days a year ago.
Enterprise customer vertical revenue grew 17.7%, while service provider vertical revenue declined 5.6%.
Gross profit margin expanded by 1.6 percentage points to 78.7%, driven primarily by product volume and mix.
NETSCOUT reported Q1 fiscal 2026 revenue of approximately $187 million, a 7% year-over-year increase driven by strong growth in cybersecurity and timing of orders.
Non-GAAP diluted EPS was $0.34, up 21% year-over-year, reflecting benefits from restructuring and cost management initiatives.
Operating profit margin improved to 14.2% from 8% in the prior year quarter.
Product revenue increased 19.3% to $73 million, while service revenue grew slightly by 0.3% to $113.8 million.
Cash flow from operations increased 13% to $261 million, with unlevered free cash flow of $276 million or $1.00 per share.
Dropbox reported Q2 2025 revenue of $626 million, a 1.4% year-over-year decline, impacted by strategic scaling back of FormSwift and reduced outbound sales support.
Dropbox repurchased approximately 14 million shares for $400 million in Q2, with $470 million remaining under the current authorization.
Non-GAAP net income was $198 million, up 2% year-over-year, with diluted EPS of $0.71, an 18% increase from the prior year quarter.
Operating margin was 41.5%, exceeding guidance by 400 basis points and up 560 basis points year-over-year, driven by headcount reductions and lower marketing spend.
Total ARR was $2.542 billion, down 1.2% year-over-year, with FormSwift contributing a 160 basis point headwind.
Communications segment revenue was $1.153 billion, up 14% year-over-year, with messaging growth accelerating for the fourth consecutive quarter and double-digit voice growth for the first time in two years.
Free cash flow was a record $263 million for the quarter.
GAAP income from operations was $37 million, marking the third consecutive quarter of GAAP operating profitability.
Non-GAAP gross profit was $623 million, up 8% year-over-year, with a gross margin of 50.7%, down 260 basis points year-over-year due to messaging mix, increased carrier fees, and FX impacts.
Non-GAAP income from operations reached a record $221 million, up 26% year-over-year, with a non-GAAP operating margin of 18%.
Segment revenue was flat at $75 million year-over-year but achieved non-GAAP income from operations of $6 million, surpassing the breakeven target.
Stock-based compensation was 12.1% of revenue, slightly up quarter-over-quarter but down year-over-year.
Twilio reported record Q2 2025 revenue of $1.228 billion, up 13% year-over-year on both reported and organic bases.
Twilio repurchased $177 million of shares in Q2, totaling $307 million year-to-date.
Dafinchi