Core Viewpoint - A securities class action lawsuit has been filed against F5, Inc. for allegedly misleading investors about its cybersecurity capabilities and the impact of a significant security breach on its operations and financial performance [1][2][3]. Group 1: Allegations of Misleading Information - The Complaint claims that F5's Defendants provided investors with overly positive statements regarding the Company's cybersecurity effectiveness and capabilities, emphasizing their confidence in security measures [2][3]. - It is alleged that while making these positive statements, the Defendants concealed material adverse facts about F5's actual security capabilities, including a significant security breach affecting key offerings [3][6]. Group 2: Impact of Security Breach - The Complaint details that on October 15, 2025, F5 disclosed a "long-term, persistent" breach, compromising critical product development and engineering knowledge, including the BIG-IP source code [4]. - Following this revelation, F5's stock price dropped from $343.17 per share on October 14, 2025, to $295.35 per share on October 16, 2025, marking a decline of approximately 13.9% [5]. Group 3: Financial Projections and Market Reaction - On October 27, 2025, F5 announced fourth quarter fiscal year 2025 results, revealing significantly below-market growth expectations for fiscal 2026, attributed largely to the security breach [7]. - The stock price further declined from $290.41 per share on October 27, 2025, to $258.76 per share on October 28, 2025, representing an additional drop of 10.9% [8].

Core Viewpoint - A class action lawsuit has been filed against F5, Inc. due to allegations of misleading statements regarding the company's security capabilities and a significant security breach that impacted its financial performance [1][4]. Group 1: Lawsuit Details - The lawsuit, Matthew Smith v. F5, Inc., was initiated in the United States District Court for the Western District of Washington for individuals who purchased F5 securities between October 28, 2024, and October 27, 2025 [1]. - The complaint alleges that F5 provided overly positive statements while concealing material adverse facts about its security capabilities, particularly regarding a significant security breach affecting key offerings [4]. Group 2: Financial Impact - On October 27, 2025, F5 reported fourth quarter fiscal year 2025 results that fell significantly below market growth expectations for fiscal 2026, largely due to the security breach [5]. - The company announced expected reductions in sales and renewals, elongated sales cycles, and increased expenses related to remediation efforts [5]. - Following the announcement, F5's stock price dropped from $290.41 per share to $258.76 per share, marking a decline of 10.9% within two days [6]. Group 3: Investor Actions - Investors affected by the alleged misrepresentations are encouraged to step forward before the February 17, 2026 deadline to request appointment as lead plaintiff [7]. - The firm Levi & Korsinsky has a strong track record in securities litigation, having secured hundreds of millions for shareholders over the past 20 years [8].

Company Overview - F5, Inc. is a Seattle-based company that provides multi-cloud application security and delivery solutions, enhancing the performance, availability, and security of applications on Internet Protocol networks [1] - The company has a market capitalization of $15.3 billion, categorizing it as a large-cap stock with significant influence in the software infrastructure industry [2] Stock Performance - F5's stock has experienced a decline of 25.4% from its all-time high of $346 reached on October 10, and a 20.2% drop over the past three months, underperforming the Nasdaq Composite's 3.5% increase during the same period [3] - Year-to-date, F5's stock has gained only 2.7% and has decreased by 1.9% over the past 52 weeks, significantly lagging behind the Nasdaq's 19.7% surge in 2025 and 14.6% returns over the past year [4] Financial Performance - In Q4, F5 reported a year-over-year revenue increase of 8.5% to $810.1 million, surpassing expectations by 2.2%, and an adjusted EPS growth of 19.6% to $4.39, exceeding consensus estimates by 10.9% [5] - Despite these better-than-expected financial results, F5's stock price fell by 7.9% in the trading session following the Q4 results release due to disappointing full-year financial guidance for 2026 [5] Competitive Position - Compared to its peer Cloudflare, Inc., which saw an 83.4% increase year-to-date and 72.3% returns over the past 52 weeks, F5 has significantly underperformed [6] - Among 13 analysts covering F5 stock, the consensus rating is a "Hold," with a mean price target of $292.78 indicating a 13.4% upside potential from current price levels [6]

Core Insights - The discussion revolves around a recent breach affecting the company, with a focus on customer feedback and guidance changes from the previous quarter [1] Group 1: Breach Impact - The company has received customer feedback regarding the breach, indicating a need for further clarification on its implications [1] - There is an interest in benchmarking the breach against similar incidents experienced by other companies in the industry [1] Group 2: Guidance Changes - The breach was mentioned as a factor in the change of guidance in the last quarter, suggesting it has had a significant impact on the company's outlook [1]

Summary of F5 Conference Call Company Overview - **Company**: F5 Networks, Inc. - **Industry**: IT Hardware and Software, specifically focusing on application delivery and security solutions Key Points Security Breach and Customer Response - A sophisticated nation-state actor gained unauthorized access to F5 systems, affecting the BIG-IP product line [4][2] - Customers responded positively to F5's transparency and guidance on protecting their environments, with many quickly applying updates [6][5] - The company observed a significant initial uptick in customer updates, which has since stabilized to a "business as usual" state [7][6] - F5 is optimistic about emerging from the incident with a more secure environment for customers [7][6] Software Business Growth - F5's software growth is primarily driven by customer expansion and the adoption of the Advanced Application Services Platform (ADSP) [15][14] - The company experienced a 9% growth in FY 2023, with expectations for mid-single-digit growth in FY 2026 due to renewal cohort dynamics [16][17] - Strong growth is anticipated in the distributed cloud business, with expectations for double-digit growth beyond FY 2026 [18][17] Hardware Demand and Market Trends - There is a renewed demand for hardware driven by data center modernization and AI applications [19][20] - F5 is seeing a shift back towards data center investments, which may indicate a healthier market for hardware [33][34] - The refresh business is currently experiencing strong growth, with a cycle duration of approximately 2.5 to 3 years [34][35] Federal Business Outlook - F5's federal business is a small portion of overall revenue, and past government shutdowns have shown that demand typically rebounds once budgets are restored [36][37] Services Business Dynamics - The services business is stable and profitable, with a focus on meeting high customer expectations [39][40] - The growth of the services business is closely tied to product sales, particularly in the context of SaaS offerings [40][41] Security Solutions and Market Position - F5 is focusing on consolidating point solutions and enhancing analytics capabilities for application security [42][43] - Recent acquisitions, such as Calypso AI, are expected to strengthen F5's position in the emerging AI security market [43][42] Financial Performance and Margin Structure - F5 has a high gross margin business, with opportunities to improve operating margins through AI and automation [44][45] - The business model is designed to drive leverage over time, particularly as the mix of subscription revenue increases [45][44] AI Integration and Use Cases - F5 is actively engaging in AI-related use cases, including AI data delivery, runtime security, and load balancing for AI factories [24][25][26] - The company is well-positioned to capitalize on the growing demand for AI infrastructure and security solutions [28][27] Additional Insights - The company is monitoring customer behavior closely, particularly regarding project deferrals or cancellations due to perceived risks from the security breach [10][11] - F5 is optimistic about the long-term growth potential in both software and hardware segments, driven by evolving customer needs and market dynamics [34][33]

Core Insights - The T5 blockchain is launching its first native token, F5, on Coinstore's trading platform, with trading starting on December 12, 2025, following a private sale on December 9, 2025 [1][6] - T5 aims to bridge blockchain technology with global capital markets, focusing on supporting developing nations through its G77swap market and various financial access programs [3][4][7] Token Details - The total supply of the F5 token is 300 million, with a circulating supply of 180 million [6] - F5 is designed to reward early holders and contributors, emphasizing collaborative participation and transparency in its ecosystem [5][7] Ecosystem and Functionality - The GPCJ ecosystem, supported by the F5 token, includes participation in token drops, rewards for early contributors, and access to unique experiences [7] - T5 blockchain aims to provide liquidity access for emerging nations while mitigating currency risk, acting as a hybrid between a blockchain asset and a risk-management tool [7] Strategic Initiatives - T5 has established global standards for bank capital and market controls, leveraging its experience to influence major international organizations [4] - The G77 Wiki hackathon is part of T5's strategy to define the financing ecosystem for developing nations, encouraging community-driven efforts [4][5]

Core Insights - F5, Inc. will participate in the Barclays 2025 Global Technology Conference [1] - The presentation is scheduled for December 10, 2025, at 2:00 p.m. ET [1] - The live webcast will be accessible through the Investor Relations section of f5.com [1]

Core Viewpoint - F5 (FFIV) is currently rated as a Zacks Rank 5 (Strong Sell) despite having recently exceeded the Zacks Consensus Estimate for earnings [1] Company Overview - F5, Inc. specializes in multi-cloud application services, offering products such as F5 distributed cloud services, F5 NGINX, F5 BIG-IP, and F5 Systems [2] - The company operates in three geographical segments: Americas, EMEA, and APAC, and was founded on February 26, 1996, with its headquarters in Seattle, WA [2] Earnings History - F5 has consistently beaten the Zacks Consensus Estimate in the last four quarters, reporting an EPS of $4.39 against a consensus of $3.96 in the most recent quarter [4] Earnings Estimates - Recent trends show a decline in annual earnings estimates for F5, with the current fiscal year consensus dropping from $16.00 to $14.99 and the next fiscal year estimate decreasing from $16.94 to $16.10 over the past 90 days [5] - The negative movement in earnings estimates is a significant factor contributing to F5's Zacks Rank of 5 (Strong Sell) [5] Market Context - Many stocks within the Zacks universe are experiencing negative earnings estimate revisions, leading to a broader trend of stocks falling to a Zacks Rank 5 (Strong Sell) [6]

Core Viewpoint - F5 Networks reported better-than-expected fourth-quarter results for fiscal 2025, but the stock has underperformed the S&P 500, raising questions about future performance leading up to the next earnings release [1][2]. Financial Performance - F5 reported non-GAAP EPS of $4.39 for Q4, exceeding the Zacks Consensus Estimate by 10.86% and management's guidance of $3.87-$3.99, marking a 19.6% year-over-year increase [3]. - Revenues for Q4 reached $810 million, surpassing the consensus mark by 2.22% and increasing 8% year-over-year, also exceeding management's guidance of $780-$800 million [4]. - Product revenues, accounting for 51.1% of total revenues, grew 15.6% year-over-year to $414.1 million, outperforming estimates of $397.9 million [5]. - Systems revenues surged 42% year-over-year to $186 million, representing approximately 45% of total Product revenues, driven by demand for infrastructure upgrades [6]. - Software revenues increased slightly by 0.3% year-over-year to $229 million, falling short of estimates of $234.5 million [7]. - Global Services revenues grew 2% year-over-year to $396 million, slightly above estimates of $393.4 million [7]. - Non-GAAP gross profit rose 10.3% year-over-year to $683 million, with a gross margin of 84.3%, up 130 basis points from the previous year [8]. - Non-GAAP operating income increased 16.5% to $299.4 million, with an operating margin improvement of 260 basis points to 37% [8]. Balance Sheet and Cash Flow - F5 ended the September quarter with cash and short-term investments of $1.36 billion, down from $1.44 billion in the previous quarter [9]. - The company generated an operating cash flow of $208 million for the quarter and $950 million for the full fiscal 2025 [9]. - F5 repurchased shares worth $125 million in Q4 and $502 million during the first nine months of fiscal 2025 [9]. Guidance - For Q1 of fiscal 2026, F5 expects revenues between $730 million and $780 million, with a projected non-GAAP EPS range of $3.35-$3.85 [10]. - Fiscal 2026 revenues are anticipated to grow in the mid-single-digit range, with non-GAAP EPS projected between $14.50 and $15.50 [10]. Market Sentiment - There has been a downward trend in estimates, with the consensus estimate shifting down by 13.23% [11]. - F5 currently holds a Growth Score of A but has a C for Momentum and an F for Value, placing it in the bottom 20% for the value investment strategy [12]. - The overall VGM Score for F5 is D, indicating a below-average return expectation in the coming months, reflected in a Zacks Rank of 5 (Strong Sell) [13].

Security Incidents - On October 15, 2025, a security incident was disclosed where a threat actor maintained long-term access to F5 systems and exfiltrated certain files[24]. Product and Service Offerings - F5's strategy focuses on solving multicloud application delivery and security challenges through its product families, including F5 BIG-IP, F5 NGINX, and F5 Distributed Cloud Services[25]. - The F5 Application Delivery and Security Platform (ADSP) was introduced in 2025 to unify traffic management with advanced application and API security across hybrid and multicloud environments[29]. - F5 is investing in expanding its SaaS-based F5 Distributed Cloud Services, which simplifies management for F5 BIG-IP and F5 NGINX customers[30]. - F5's portfolio includes solutions for web application and API protection, hybrid multicloud networking, enterprise AI delivery and security, and zero trust architecture readiness[31]. - F5 Distributed Cloud Services leverage a global private backbone to deliver performance and reliability across hybrid, multicloud, or edge environments[32]. - F5 NGINX technology suite supports hundreds of millions of websites and applications, providing a lightweight, agile ADC and API connectivity solution[33]. - The F5 BIG-IP Automation Tool Chain integrates with orchestration frameworks, enhancing deployment and configuration speed for application services[45]. Competitive Landscape - F5's competitive landscape includes vendors like Citrix, AWS, and Cloudflare, focusing on application delivery, security, and multicloud networking[38][42]. - The company emphasizes a platform approach to simplify complexity and enhance operational efficiency while competing on a point-solution basis[41]. AI Strategy - F5's AI strategy enhances application delivery and security solutions, addressing performance challenges associated with AI workloads and pursuing partnerships with global AI leaders[28]. - The company completed the acquisition of CalypsoAI Corp. in September 2025, aimed at enhancing its F5 ADSP for AI inference security[48]. - Kunal Anand has been appointed as Executive Vice President and Chief Product Officer since October 2025, focusing on AI innovation across F5's product solutions[71]. Employee Engagement and Corporate Culture - As of September 30, 2025, the company employed 6,578 individuals, with 47% based in the United States, and over 99% of employees being full-time[51]. - In fiscal year 2025, 72% of employees participated in the Global Good programs, contributing over 13,400 volunteer hours and directing $3.9 million in donations to over 3,900 non-profits[64]. - The company’s employee engagement survey indicated that 80% of employees feel a sense of belonging at F5, up from 73% the previous year[54]. Leadership Team - The company’s executive team includes François Locoh-Donou as CEO, Edward Werner as CFO, and Tom Fountain as COO, among others[66]. - John Maddison, serving as Chief Marketing Officer since October 2025, is responsible for enhancing F5's market impact and brand promise through products and partnerships[72]. - Angelique Okeke has been the Executive Vice President and General Counsel since March 2025, bringing over 20 years of legal experience, including strategic counsel at Nike[73]. - Michael Montoya, appointed as Executive Vice President and Chief Technology Operations Officer in October 2025, previously served as Chief Operating Officer at BlueVoyant[74]. Financial Outlook and Economic Factors - The company does not expect a 10% change in interest rates to materially affect its operating results or cash flows due to its current investment portfolio[241]. - Inflation has not had a material effect on the company's financial condition, but significant inflationary pressures could impact costs and customer procurement decisions[242]. - The majority of sales and expenses are in U.S. dollars, and foreign currency fluctuations have not significantly impacted financial results to date[243]. Environmental Sustainability - The company reported a 16% year-over-year reduction in Scope 1 and 2 emissions and a 10% reduction in Scope 3 emissions from fiscal year 2023 to fiscal year 2024[63]. - The company aims to reduce absolute Scope 1 and 2 emissions by 50% and Scope 3 emissions by 43% from a 2021 baseline by 2030[60]. - The company has established a robust global hardware supply chain and continuously monitors potential risks to minimize disruptions[46].