Core Viewpoint - F5 forecasts annual revenue below Wall Street estimates due to a recent systems breach that may impact demand for its services [1][4] Group 1: Revenue Forecast - F5 anticipates full-year revenue growth of 0% to 4%, which is below the average analyst estimate of a 4.8% increase [4] - The company forecasts first-quarter revenue between $730 million and $780 million, also below the estimate of $791 million [5] Group 2: Impact of Security Breach - The recent breach allowed hackers to have "long-term, persistent access" to certain company systems, including source code for a key cybersecurity service [2] - U.S. officials indicated that federal networks were targeted in the aftermath of the hack, prompting calls for immediate action [2] - F5 expects near-term disruption to sales cycles as customers assess and remediate their environments following the security incident [3] - The breach primarily affected BIG-IP customers, with some needing to upgrade to the latest releases [3] - A small subset of customers experienced limited data exfiltration, but initial feedback suggested the data was not sensitive [4]

Core Insights - F5, a cybersecurity firm, has projected first-quarter revenue to fall short of Wall Street expectations due to recent disruptions in sales cycles caused by a cybersecurity breach at the company [1] Group 1 - The company forecasts first-quarter revenue below Wall Street estimates [1] - The disruption in sales cycles is attributed to a recent cybersecurity breach [1]

Revenue Growth - Fourth quarter revenue reached $810 million, an 8% increase year over year, driven by a 16% growth in product revenue and a 42% increase in systems revenue[3] - Fiscal year 2025 revenue totaled $3.09 billion, reflecting a 10% growth compared to $2.82 billion in fiscal year 2024[8] - F5's total net revenues for the three months ended September 30, 2025, were $810,090,000, representing a 8.5% increase from $746,674,000 in the same period of 2024[38] - Net revenues for Q3 2025 reached $810.09 million, a 8.5% increase from $746.67 million in Q3 2024[42] Profitability - GAAP net income for Q4 FY2025 was $190 million, or $3.26 per diluted share, compared to $165 million, or $2.80 per diluted share in Q4 FY2024[7] - Non-GAAP net income for FY2025 was $928 million, or $15.81 per diluted share, up from $794 million, or $13.37 per diluted share in FY2024[11] - Net income for the year ended September 30, 2025, was $692,380,000, up 22.2% from $566,778,000 in 2024[40] - Basic net income per share increased to $3.30 for the three months ended September 30, 2025, from $2.83 in the same period of 2024, reflecting a 16.6% growth[38] - GAAP net income for the quarter was $190.49 million, an increase from $165.30 million in Q3 2024[42] - Non-GAAP net income reached $256.64 million, up from $216.94 million year-over-year[42] - Diluted GAAP net income per share was $3.26, compared to $2.80 in the prior year[42] - Non-GAAP net income per share increased to $4.39 from $3.67 in Q3 2024[42] Operating Performance - GAAP gross profit for FY2025 was $2.51 billion, representing a GAAP gross margin of 81.4%, compared to 80.2% in FY2024[9] - Non-GAAP operating profit for FY2025 was $1.09 billion, with a non-GAAP operating margin of 35.2%, up from 33.6% in FY2024[10] - The gross profit for the three months ended September 30, 2025, was $666,209,000, compared to $602,954,000 for the same period in 2024, indicating a gross margin improvement[38] - GAAP gross profit was $666.21 million with a gross margin of 82.2%, compared to $602.95 million and 80.8% in the previous year[42] - Non-GAAP gross profit increased to $683.26 million, representing a gross margin of 84.3%, up from 83.0% in Q3 2024[42] - GAAP income from operations was $205.65 million, with an operating margin of 25.4%, slightly down from 25.6% in Q3 2024[42] - Non-GAAP income from operations rose to $299.37 million, achieving a 37.0% operating margin, compared to 34.4% in the same quarter last year[42] Future Guidance - The company anticipates total revenue growth of 0% to 4% for fiscal year 2026, with potential near-term disruptions in sales cycles due to a recent security incident[14] - For Q1 FY2026, revenue is guided to be between $730 million and $780 million, with non-GAAP earnings projected between $3.35 and $3.85 per diluted share[16] Cash and Assets - Cash and cash equivalents at the end of the period were $1,346,368,000, an increase from $1,078,340,000 at the beginning of the period[40] - Total assets as of September 30, 2025, were $6,319,492,000, compared to $5,613,004,000 as of September 30, 2024, marking a 12.5% increase[36] - F5's total current liabilities increased to $1,612,581,000 as of September 30, 2025, from $1,489,653,000 in 2024, representing an 8.2% rise[36] - The company incurred restructuring charges of $14,163,000 for the three months ended September 30, 2025, compared to no charges in the same period of 2024[38] - F5's cash provided by operating activities for the year ended September 30, 2025, was $949,666,000, an increase from $792,419,000 in 2024[40] - The company reported a deferred revenue of $1,213,226,000 for the three months ended September 30, 2025, up from $1,121,683,000 in the same period of 2024, indicating a 8.2% growth[36] Leadership Changes - F5's Board of Directors announced that CEO François Locoh-Donou will become Chairman of the Board effective March 2026[17] Security Measures - The company is committed to enhancing security measures across all business aspects following a recent security incident[3]

Company Overview - F5, Inc. (NASDAQ:FFIV) is a leader in the multi-cloud application security and delivery solutions market, providing services that help businesses manage, secure, and optimize applications across various cloud environments [1] - The company has strong partnerships with major cloud providers and innovative product offerings, positioning it well in the industry [1] - Competitors include Cisco Systems and Citrix Systems [1] Analyst Sentiment - Over the past year, F5's consensus price target has increased significantly from $261.67 to $352, indicating a positive outlook from analysts [2][3] - The average price target rose from $336.5 last quarter to $352, reflecting increased confidence in F5's prospects [2][6] - Credit Suisse has set a lower price target of $225, indicating confidence in the company's potential while anticipating a decline in earnings compared to the previous year [4][6] Revenue Expectations - The expected increase in fourth-quarter revenues is driven by demand for hybrid and subscription services, supporting a positive outlook for F5 [4][6] - The substantial increase in price targets could be attributed to improved financial performance, strategic initiatives, or favorable market conditions [3] Investment Considerations - Investors should consider changes in analyst sentiment when evaluating F5 as a potential investment, as the company's strategic direction and market dynamics make it an interesting prospect for growth [5]

Core Insights - F5, Inc. is preparing to release its quarterly earnings on October 27, 2025, with analysts closely monitoring its financial performance [1] Earnings Estimates - Analysts estimate F5's earnings per share (EPS) to be $3.96 for the quarter, consistent with the Zacks Consensus Estimate that has remained stable for 60 days [2][6] - F5's own projections suggest a non-GAAP EPS range of $3.87 to $3.99, with a midpoint of $3.93, indicating a 7.9% decline from the previous year [2] Revenue Projections - Revenue projections for F5 are set between $780 million and $800 million, with the Zacks Consensus Estimate at $792.5 million, representing a 6.1% increase from the previous year [3][6] - The anticipated revenue growth is driven by strong demand for F5's products like BIG-IP and NGINX [3] Financial Metrics - F5 has a price-to-earnings (P/E) ratio of 26.14 and a price-to-sales ratio of 5.73, reflecting the market's valuation of its earnings and revenue [4][6] - The enterprise value to sales ratio is 5.35, and the enterprise value to operating cash flow ratio is 16.37, indicating cash flow efficiency [4] - F5 maintains a low debt-to-equity ratio of 0.075, suggesting a conservative approach to debt, and a current ratio of 1.60 indicates a strong ability to cover short-term liabilities [5][6]

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against F5, Inc. regarding possible violations of federal securities laws and unlawful business practices following a significant security breach [1][2]. Investigation Details - On October 15, 2025, F5 disclosed that a sophisticated nation-state threat actor had gained unauthorized access to its systems, maintaining long-term access to critical areas including the BIG-IP product development environment [2]. - The breach resulted in the exfiltration of files, including portions of the BIG-IP source code and information on undisclosed vulnerabilities, leading to a decline in F5's stock price by $35.40, or approximately 10.70%, from $330.75 to $295.35 between October 15 and October 16, 2025 [2]. Next Steps - Investors who purchased F5 shares and experienced losses are encouraged to contact Bragar Eagel & Squire for more information regarding their rights and potential claims [3]. About the Law Firm - Bragar Eagel & Squire, P.C. is a nationally recognized law firm that represents individual and institutional investors in various complex litigations across state and federal courts [4].

Core Viewpoint - Glancy Prongay & Murray LLP has initiated an investigation into F5, Inc. regarding potential violations of federal securities laws affecting investors [1] Company Summary - F5, Inc. is under scrutiny for possible legal issues that may have impacted its investors [1] - The investigation is aimed at assessing the extent of the violations and the potential for investors to recover losses [1]

Core Viewpoint - F5, Inc. is under investigation for possible securities fraud following a significant security breach that led to unauthorized access to its systems, resulting in a notable decline in share price [1][3]. Group 1: Investigation and Legal Actions - The Portnoy Law Firm has initiated an investigation into F5, Inc. and may file a class action on behalf of investors [1]. - Investors are encouraged to contact the law firm for legal rights discussions and to join the case [2]. Group 2: Security Breach Details - On October 15, 2025, F5 disclosed that a sophisticated nation-state threat actor gained unauthorized access to its systems, including the BIG-IP product development environment [3]. - The investigation revealed that the threat actor maintained long-term access and exfiltrated files containing portions of the BIG-IP source code and information on undisclosed vulnerabilities [3]. - Following the announcement, F5's share price dropped by $35.40, approximately 10.70%, from $330.75 to $295.35 [3].

Core Viewpoint - The Law Offices of Howard G. Smith is conducting an investigation on behalf of F5, Inc. investors regarding potential violations of federal securities laws by the company [1] Group 1 - The investigation is aimed at F5, Inc. (NASDAQ: FFIV) and concerns possible legal claims for investors who have suffered losses [1] - Investors are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights and potential recovery of losses [1]

Core Insights - F5, Inc. is under investigation for potential violations of federal securities laws following a significant cybersecurity breach that exposed sensitive information [1][2] - The breach involved unauthorized access by a sophisticated nation-state threat actor, leading to the exfiltration of files, including portions of the company's BIG-IP source code and information on undisclosed vulnerabilities [2] - Following the disclosure of the breach, F5's stock price dropped over 10%, from $330.75 to $295.35 within a day [2] Company Overview - F5, Inc. is a technology company known for its application services and delivery solutions, particularly its BIG-IP product line [2] - The company has faced scrutiny due to the recent security incident, which raises concerns about its cybersecurity measures and overall governance [2] Legal Context - Kessler Topaz Meltzer & Check, LLP is leading the investigation on behalf of F5 investors, focusing on potential securities fraud and breaches of fiduciary duties [1][3] - The law firm has a history of prosecuting class actions related to securities fraud and has recovered billions for investors [3]