Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-26041 F5, INC. (Exact name of registrant as specified in its charter) Washington 91-1714307 (State or other jurisdiction o ...

Group 1: F5 (FFIV) - F5 provides products and services to manage Internet traffic worldwide and has a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for F5's current year earnings increased by 4.9% over the last 60 days [1] - F5's shares gained 20.1% over the last three months compared to the S&P 500's gain of 12%, and the company has a Momentum Score of A [1] Group 2: Indivior (INDV) - Indivior is a specialty pharmaceutical company focused on medications for alcohol addiction, opioid overdose, and related conditions, holding a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Indivior's current year earnings increased by 26.1% over the last 60 days [2] - Indivior's shares gained 78.4% over the last three months compared to the S&P 500's gain of 12%, with a Momentum Score of A [3] Group 3: nVent Electric (NVT) - nVent Electric provides electrical connection and protection solutions and has a Zacks Rank 1 [4] - The Zacks Consensus Estimate for nVent Electric's current year earnings increased by 6.5% over the last 60 days [4] - nVent Electric's shares gained 48.6% over the last three months compared to the S&P 500's gain of 12%, and the company has a Momentum Score of A [4]

F5 Networks (FFIV) came out with quarterly earnings of $4.16 per share, beating the Zacks Consensus Estimate of $3.49 per share. This compares to earnings of $3.36 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +19.20%. A quarter ago, it was expected that this computer networking company would post earnings of $3.1 per share when it actually produced earnings of $3.42, delivering a surprise of +10.32%.Over the last four quart ...

Financial Data and Key Metrics Changes - F5 reported a total revenue growth of 12% year-over-year, reaching $780 million, with product revenue growing by 26%, marking the strongest growth in 14 years [8][27] - The company achieved a GAAP net income of $190 million, translating to $3.25 per share, while non-GAAP net income was $243 million or $4.16 per share, reflecting a 24% EPS growth year-over-year [32][38] - Cash flow from operations reached a record $282 million, with cash and investments totaling approximately $1.44 billion at the end of the quarter [32][33] Business Line Data and Key Metrics Changes - Global services revenue grew by 1% to $392 million, while product revenue increased by 26% to $389 million [27] - Software revenue grew by 16% year-over-year to $208 million, with subscription-based software revenue increasing by 19% to $185 million, representing 89% of total software revenue [28] - Systems revenue totaled $181 million, up 39% year-over-year, driven by tech refresh and data center modernization [28] Market Data and Key Metrics Changes - Revenue from the Americas grew by 13%, accounting for 55% of total revenue, while EMEA delivered 6% growth (26% of revenue) and APAC grew by 21% (19% of revenue) [29] - Enterprise customers represented 70% of product bookings, with government customers at 15% and service providers also at 15% [29] Company Strategy and Development Direction - F5 is focusing on modernizing data centers and adopting hybrid multi-cloud architectures, which are seen as significant growth drivers [7][11] - The company is leveraging its application delivery and security platform to simplify operations and enhance security for customers, particularly in the context of AI workloads [11][12] - F5 aims to continue innovating and expanding its offerings in AI-driven applications and infrastructure [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for data center modernization and hybrid multi-cloud solutions, expecting continued strong demand in Q4 [10][36] - The company anticipates Q4 revenue in the range of $780 million to $800 million, implying approximately 9% revenue growth for FY '25 [10][36] - Management noted that the long-term structural shift towards data center modernization will persist, creating ongoing investment opportunities [11][37] Other Important Information - F5 repurchased $125 million worth of shares during the quarter, with $1 billion remaining on the authorized stock repurchase program [34] - The company ended the quarter with approximately 6,540 employees [35] Q&A Session Summary Question: Can you discuss the strength in hardware and its sustainability? - Management noted strong tech refresh dynamics and secular trends in hybrid cloud and AI driving hardware growth, with expectations for continued growth next year but at a more modest rate [45][50] Question: What is the outlook for software renewals and new deal activity? - Management highlighted a healthy renewal base and strong expansion trends, with new use cases contributing to software growth [52][55] Question: What factors affected gross margins this quarter? - Gross margins were slightly lower due to high-performance use cases with compliance demands and the strength in the systems business, which has a lower margin than software [58][60] Question: How significant is the AI-related business for F5? - Management indicated that direct AI use cases are currently small but growing, with indirect AI-related spending also increasing as customers invest in data capacity for AI [98][99] Question: What is the expected growth for hardware and software in FY '26? - Management expects hardware to grow modestly next year, while software growth is anticipated in the mid-single digits, with potential for reacceleration in FY '27 [67][70]

Financial Data and Key Metrics Changes - F5 reported a total revenue growth of 12% year-over-year, reaching $780 million in Q3 2025, with product revenue growing by 26%, marking the strongest growth in 14 years [6][25] - The company achieved a GAAP net income of $190 million, or $3.25 per share, and a non-GAAP net income of $243 million, or $4.16 per share, reflecting a 24% growth in EPS year-over-year [30][34] - Cash flow from operations reached a record $282 million in Q3, with total cash and investments at approximately $1.44 billion [30][31] Business Line Data and Key Metrics Changes - Global services revenue grew by 1% to $392 million, while product revenue increased by 26% to $389 million [25] - Software revenue grew by 16% year-over-year to $208 million, with subscription-based software revenue increasing by 19% to $185 million, representing 89% of total software revenue [26] - Systems revenue totaled $181 million, up 39% year-over-year, driven by tech refresh and data center modernization [26] Market Data and Key Metrics Changes - Revenue from the Americas grew by 13%, accounting for 55% of total revenue, while EMEA and APAC regions grew by 6% and 21%, representing 26% and 19% of revenue, respectively [27] - Enterprise customers represented 70% of Q3 product bookings, while government and service providers each accounted for 15% [27] Company Strategy and Development Direction - F5 is focusing on modernizing data centers and adopting hybrid multi-cloud architectures, which are driving demand for both hardware and software solutions [6][9] - The company is leveraging its unique application delivery and security platform to simplify operations and enhance security for customers, particularly in AI workloads [9][10] - F5 anticipates continued strong demand in Q4, with revenue guidance between $780 million and $800 million, implying approximately 9% growth for FY 2025 [8][34] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing structural shift in data center modernization and the increasing complexity of managing applications and APIs as key challenges for IT teams [9][10] - The company expects to see durable growth in hardware driven by tech refresh, hybrid cloud investments, and AI readiness [46][48] - Management expressed confidence in the long-term potential of their application delivery and security platform, particularly in supporting AI-driven applications [19][20] Other Important Information - F5's GAAP gross margin was 81%, with non-GAAP gross margin at 83.1%, reflecting strong operating discipline [28] - The company repurchased $125 million worth of shares in Q3, with $1 billion remaining on its authorized stock repurchase program [31] Q&A Session Summary Question: Can you discuss the strength in hardware and its sustainability? - Management noted a 39% year-over-year growth in hardware, driven by tech refresh and secular trends in hybrid cloud and AI readiness, with expectations for continued growth but at a more modest rate next year [42][48] Question: What is the outlook for software renewals and new deal activity? - Management indicated a healthy renewal base and strong expansion in software, with increased consumption driving higher contract values at renewal [50][52] Question: Why did gross margins come in at the lower end despite revenue upside? - The lower gross margins were attributed to high-performance use cases with compliance demands and the strength in the systems business, which has a lower margin than software [56][57] Question: What is the status of the NVIDIA DPU product and AI gateway platform? - The NVIDIA DPU solution is generally available, with positive early feedback from customers, while the AI gateway platform is in the early stages with several proof of concepts underway [81][87] Question: How is the federal business performing? - The federal business is on plan, with a healthy pipeline despite some softness in Q3 due to project delays related to government efficiency initiatives [90][91]

Q3FY25 Results Published July 30, 2025 PERIOD ENDING June 30, 2025 We deliver and secure every app. F5 specializes in application delivery and security. Our solutions are backed by three decades of expertise to ensure that every app is fast, available, secure, and ready for the AI-era. Forward-looking statements This presentation contains forward-looking statements including, among other things, that F5's strong topline performance along with continued operating leverage, is testament to the team's executio ...

Q3 FY25 Earnings Release Page 1 of 5 Contacts Investors Suzanne DuLong +1 (206) 272-7049 s.dulong@f5.com Media Dan Sorenson +1 (206) 272-6208 d.sorenson@f5.com F5 Reports Robust Third Quarter Results with 12% Revenue Growth Fueled by Strong Product Demand in Alignment with Key Industry Trends SEATTLE, WA - July 30, 2025 - F5, Inc. (NASDAQ: FFIV), the global leader in delivering and securing every app and API, today announced financial results for its third quarter fiscal year 2025 for the period ended June ...

Core Insights - F5 Inc. (FFIV) is set to report its third-quarter fiscal 2025 results on July 30, with projected non-GAAP EPS between $3.41 and $3.53, and a consensus estimate of $3.49, reflecting an 8.28% year-over-year increase [1] - The company anticipates non-GAAP revenues in the range of $740 million to $760 million, with a consensus estimate of $753.1 million, indicating an 8.3% year-over-year growth [1] Group 1: Revenue and Earnings Projections - F5's Product segment is expected to benefit from recovering demand for software solutions, particularly in hybrid and multi-cloud architectures, with software revenues estimated at $202 million [2] - The Systems segment is likely to see increased sales due to technology refresh activities for VIPRION and iSeries offerings, with estimated revenues of $144.7 million [3] - Overall Product revenues are projected at $346.6 million, driven by strong sales in both Software and Systems divisions [3] Group 2: Growth Drivers and Challenges - The growth in BIG-IP and NGINX subscription software deals is anticipated to be a significant growth driver, aided by performance data, automation capabilities, and lower ownership costs [4] - However, slower growth in perpetual software licenses due to IT budget cuts amid macroeconomic uncertainties may offset overall software revenues, although new avenues like AI adoption are expected to contribute positively [5] Group 3: Earnings Prediction Model - Current analysis indicates that F5 does not conclusively predict an earnings beat this season, with an Earnings ESP of -0.33% and a Zacks Rank of 3 (Hold) [6]

Core Viewpoint - Morgan Stanley's strategy team highlights 15 stocks with short-term catalytic potential, indicating that S&P 500 index earnings growth in Q2 may exceed expectations [1] Earnings Expectations - The market anticipates a 5% year-over-year increase in S&P 500 Q2 earnings per share and over 4% revenue growth, but actual growth may be stronger [1] - The seven major tech companies are expected to see a 14% increase in net profit, while the remaining 493 constituents may experience a 3% decline [1] - Despite analysts lowering earnings expectations from April to May, the earnings revision has rebounded from -25% to approximately 1%, suggesting Q2 earnings will likely exceed expectations, aligning with the historical average of 4%-5% [1] Recommended Stocks - **argenx SE (ARGX.US)**: undervalued R&D pipeline, target price $700 [2] - **Atlassian (TEAM.US)**: continuous revenue growth potential over 20% and expected margin expansion, target price $320 [3] - **Chewy (CHWY.US)**: benefits from marketing and product optimization, expected revenue to maintain or exceed Q1 levels, target price $50 [4] - **CVS Health (CVS.US)**: advantages from competitor store closures and growth in pharmacy benefit management, target price $80 [4] - **DraftKings (DKNG.US)**: potential earnings inflection point in Q2, with actual licensing rates offsetting tax and regulatory pressures, target price $52 [4] - **Eaton Corporation (ETN.US)**: benefits from improved profit margins in U.S. electrical business, target price $375 [5] - **Eli Lilly (LLY.US)**: core products Mounjaro and Zepbound expected to contribute $8.2 billion in revenue, exceeding expectations may lead to 2025 guidance upgrades, target price $1,135 [5] - **F5 (FFIV.US)**: positive outlook due to demand growth in cloud and load balancing products, target price $305 [6] - **NVIDIA (NVDA.US)**: strong end-user demand and accelerated shipments of rack-level products supporting supply-side growth, target price $170 [7] - **Omada Health (OMDA.US)**: operational leverage through technology empowerment and multi-disease sales, target price $25 [8] - **Southwest Airlines (LUV.US)**: potential stock rebound if internal guidance is met and baggage fee impacts are confirmed as limited, target price $38 [9] - **Valley National Bank (VLY.US)**: expected net interest income growth of 3% quarter-over-quarter, target price $11 [10] - **Western Digital (WDC.US)**: undervalued gross margin expansion prospects, target price $85 [11] Cautious Outlook - **National Storage Affiliates Trust (NSA.US)**: cautious due to expected funds from operations (FFO) per share being below market and company guidance, target price $30 [12] - **Teradyne (TER.US)**: revenue and earnings per share forecasts for FY2026 are 7% and 14% below Wall Street expectations, target price $74 [13] Summary - Overall, Morgan Stanley's recommendations combine company fundamentals, industry trends, and market sentiment, providing diversified options for investors [14]

Core Insights - Bumble Inc. (BMBL) is currently viewed as a more attractive investment compared to F5 Networks (FFIV) for value investors due to its stronger Zacks Rank and favorable valuation metrics [1][3][6] Valuation Metrics - BMBL has a forward P/E ratio of 6.83, significantly lower than FFIV's forward P/E of 20.73, indicating that BMBL may be undervalued [5] - The PEG ratio for BMBL is 0.24, while FFIV's PEG ratio is 3.01, suggesting that BMBL has a better growth-to-price ratio [5] - BMBL's P/B ratio stands at 0.54, compared to FFIV's P/B of 5.24, further highlighting BMBL's relative undervaluation [6] Zacks Rank and Style Scores - BMBL holds a Zacks Rank of 1 (Strong Buy), while FFIV has a Zacks Rank of 3 (Hold), indicating a more favorable earnings estimate revision trend for BMBL [3] - In terms of Value grades, BMBL receives an A, whereas FFIV is rated D, reinforcing the notion that BMBL is the better option for value investors [6]