F5 Reports Third Quarter Fiscal Year 2025 Results F5 reported strong Q3 FY2025 results with significant revenue growth driven by product demand, alongside an optimistic business outlook and updated full-year guidance Executive Summary and Key Highlights F5 reported robust third quarter fiscal year 2025 results with 12% year-over-year revenue growth, primarily driven by strong product demand, particularly in systems and software - Total revenue grew 12% year-over-year to $780 million3 - Product revenue increased by 26%, with systems revenue growing 39% and software revenue growing 16%3 - Growth was fueled by customer modernization of data centers, adoption of hybrid multicloud architectures, and scaling to meet application performance and security needs, including those driven by AI adoption3 Third Quarter Financial Performance (GAAP & Non-GAAP) F5 demonstrated strong financial performance in Q3 FY2025, with significant year-over-year increases across key GAAP and Non-GAAP metrics, reflecting improved margins and operational efficiency Q3 FY2025 Revenue Breakdown (YoY Growth) | Revenue Type | Q3 FY2025 (Millions) | YoY Growth | | :---------------- | :------------------- | :--------- | | Total Revenue | $780 | 12% | | Systems Revenue | $181 | 39% | | Software Revenue | $208 | 16% | | Global Services | $392 | 1% | Q3 FY2025 vs Q3 FY2024 Key Financial Metrics (GAAP & Non-GAAP) | Metric | Q3 FY2025 (GAAP) | Q3 FY2024 (GAAP) | Q3 FY2025 (Non-GAAP) | Q3 FY2024 (Non-GAAP) | | :----------------------- | :--------------- | :--------------- | :------------------- | :------------------- | | Revenue | $780M | $695M | - | - | | Gross Profit | $632M | $559M | $649M | $578M |\ | Gross Margin | 81.0% | 80.4% | 83.1% | 83.1% | | Income from Operations | $196M | $163M | $267M | $233M | | Operating Margin | 25.2% | 23.4% | 34.3% | 33.4% | | Net Income | $190M | $144M | $243M | $199M | | EPS (Diluted) | $3.25 | $2.44 | $4.16 | $3.36 | Business Outlook and Guidance F5 provided an optimistic outlook for Q4 FY2025, projecting revenue between $780 million and $800 million and non-GAAP EPS of $3.87 to $3.99, while raising its full fiscal year 2025 guidance Q4 FY2025 Business Outlook | Metric | Guidance Range | | :------------ | :------------------- | | Revenue | $780M to $800M | | Non-GAAP EPS | $3.87 to $3.99 | FY2025 Guidance Update (YoY Growth) | Metric | New Guidance | Prior Guidance | | :----------------- | :----------- | :------------- | | Revenue Growth | ~9% | 6.5% to 7.5% | | Non-GAAP EPS Growth| 14% to 15% | 8% to 10% | - Guidance is driven by continued tech refresh demand, data center modernization, and adoption across the Company's Application Delivery and Security Platform11 Conference Call and Forward-Looking Statements This section details the scheduled conference call for financial results and outlook, alongside a standard disclaimer regarding forward-looking statements and associated risks Live Webcast and Conference Call Details F5 announced a live webcast and conference call on July 30, 2025, at 4:30 pm ET to discuss financial results and outlook, with access details provided for investors and the public - A live webcast and conference call to review financial results and outlook was scheduled for July 30, 2025, at 4:30 pm ET14 - Access to the webcast, supplemental financial information, and earnings slides is available on the investor relations page of F5.com14 Forward-Looking Statements Disclaimer This section outlines the forward-looking nature of certain statements in the press release, emphasizing that actual results may differ materially due to various risks and uncertainties - The press release contains forward-looking statements regarding future financial performance, customer demand, and product benefits, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 19951516 - Actual results could differ materially due to risk factors such as customer acceptance of offerings, global supply chain disruptions, economic conditions, competitive factors, and potential security flaws or cybersecurity attacks16 - F5 assumes no obligation to revise or update these forward-looking statements16 About F5 F5, Inc. is a global leader in delivering and securing applications and APIs, leveraging decades of expertise to provide its Application Delivery and Security Platform across diverse environments Company Overview F5, Inc. is a global leader in delivering and securing applications and APIs, leveraging three decades of expertise to provide its Application Delivery and Security Platform (ADSP) across various environments, aiming to enable fast, available, and secure digital experiences - F5, Inc. (NASDAQ:FFIV) is the global leader in delivering and securing every app and API25 - The company offers the F5 Application Delivery and Security Platform (ADSP) to deliver and secure apps and APIs across on-premises, cloud, edge, and hybrid/multicloud environments25 - F5 is committed to innovating and partnering with organizations to deliver fast, available, and secure digital experiences25 GAAP to Non-GAAP Reconciliation Principles This section explains F5's management's rationale for using non-GAAP financial measures and details the specific adjustments made to reconcile them with GAAP results Management's Use of Non-GAAP Measures F5's management uses non-GAAP financial measures to evaluate and make operating decisions, believing they provide useful supplemental information for understanding core business performance and facilitating comparisons - Management evaluates and makes operating decisions using non-GAAP measures, which are based on revenues and costs of operations, excluding certain items17 - Non-GAAP net income excludes stock-based compensation, amortization/impairment of purchased intangible assets, facility-exit costs, acquisition-related charges, restructuring charges, and certain non-recurring tax adjustments1718 - Management believes non-GAAP measures provide useful supplemental information for understanding core business performance and facilitating comparisons, but acknowledges that excluded items could materially affect GAAP results, thus using both GAAP and non-GAAP measures23 Specific Non-GAAP Adjustments Explained This section details the specific adjustments made to reconcile GAAP to non-GAAP financial measures, explaining why management excludes these items for a clearer view of ongoing operations - Stock-based compensation is excluded to better understand the long-term performance of the core business and facilitate comparison with peer companies18 - Amortization and impairment of purchased intangible assets are excluded because they generally cannot be changed or influenced by management after acquisition and do not accurately reflect ongoing operations19 - Facility-exit costs, acquisition-related charges, and restructuring charges are excluded as they are non-recurring, vary significantly, and do not reflect ongoing business activities or expected future operating expenses202122 Consolidated Financial Statements This section presents F5's key consolidated financial statements, including balance sheets, income statements, and cash flow statements, for the reported periods Consolidated Balance Sheets The consolidated balance sheet shows F5's financial position as of June 30, 2025, compared to September 30, 2024, indicating an increase in total assets and shareholders' equity Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | September 30, 2024 | | :--------------------------- | :------------ | :----------------- | | Total Assets | $6,113,499 | $5,613,004 | | Cash and cash equivalents | $1,426,957 | $1,074,602 | | Total Current Assets | $2,485,038 | $2,109,471 | | Total Liabilities | $2,641,815 | $2,483,626 | | Total Shareholders' Equity | $3,471,684 | $3,129,378 | Consolidated Income Statements The consolidated income statements for Q3 and YTD FY2025 show significant growth in net revenues, gross profit, and net income compared to the prior year, driven by strong product and services performance Consolidated Income Statement (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :---------------------- | :---------- | :---------- | | Net Revenues | $780,370 | $695,495 | | Products Revenue | $388,838 | $308,489 | | Services Revenue | $391,532 | $387,006 | | Gross Profit | $631,742 | $559,070 | | Income from Operations | $196,317 | $163,090 | | Net Income | $189,912 | $144,079 | | Diluted EPS | $3.25 | $2.44 | Consolidated Income Statement (Nine Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :---------------------- | :------------ | :------------ | | Net Revenues | $2,277,982 | $2,069,446 | | Products Revenue | $1,094,531 | $914,510 | | Services Revenue | $1,183,451 | $1,154,936 | | Gross Profit | $1,847,885 | $1,655,519 | | Income from Operations | $560,296 | $467,566 | | Net Income | $501,887 | $401,482 | | Diluted EPS | $8.54 | $6.75 | Consolidated Statements of Cash Flows For the nine months ended June 30, 2025, F5 generated significantly more cash from operating activities compared to the prior year, leading to a substantial increase in cash and cash equivalents Consolidated Statements of Cash Flows (Nine Months Ended June 30, in thousands) | Activity | 2025 | 2024 | | :------------------------------------- | :---------- | :---------- | | Net cash provided by operating activities | $741,598 | $545,914 | | Net cash used in investing activities | $(55,689) | $(53,471) | | Net cash used in financing activities | $(337,660) | $(355,131) | | Net increase in cash, cash equivalents and restricted cash | $348,249 | $137,312 | | Cash, cash equivalents and restricted cash, end of period | $1,429,031 | $938,523 | Detailed GAAP to Non-GAAP Reconciliation Tables This section provides comprehensive tables detailing the reconciliation of GAAP to non-GAAP financial measures for key performance indicators, including per-share amounts GAAP to Non-GAAP Reconciliation Summary This section provides comprehensive tables reconciling GAAP to non-GAAP financial measures for gross profit, income from operations, and net income, detailing the impact of adjustments like stock-based compensation and amortization GAAP to Non-GAAP Reconciliation (Three Months Ended June 30, in thousands, except percentages and per share amounts) | Metric (Non-GAAP) | 2025 (Amount) | 2025 (%) | 2024 (Amount) | 2024 (%) | | :----------------------- | :------------ | :------- | :------------ | :------- | | Gross Profit | $648,706 | 83.1% | $578,083 | 83.1% | | Income from Operations | $267,293 | 34.3% | $232,559 | 33.4% | | Net Income | $243,241 | - | $198,839 | - | | Diluted EPS | $4.16 | - | $3.36 | - | Key Adjustments (2025): * Stock-based compensation: $57,451 (Income from Operations), $0.98 (Diluted EPS) * Amortization and impairment of purchased intangible assets: $10,250 (Income from Operations), $0.18 (Diluted EPS) * Tax effects related to above items: $(17,647) (Net Income), $(0.30) (Diluted EPS) GAAP to Non-GAAP Reconciliation (Nine Months Ended June 30, in thousands, except percentages and per share amounts) | Metric (Non-GAAP) | 2025 (Amount) | 2025 (%) | 2024 (Amount) | 2024 (%) | | :----------------------- | :------------ | :------- | :------------ | :------- | | Gross Profit | $1,898,770 | 83.4% | $1,712,655 | 82.8% | | Income from Operations | $787,012 | 34.5% | $688,674 | 33.3% | | Net Income | $671,307 | - | $576,729 | - | | Diluted EPS | $11.42 | - | $9.70 | - | Key Adjustments (2025): * Stock-based compensation: $174,243 (Income from Operations), $2.96 (Diluted EPS) * Amortization and impairment of purchased intangible assets: $30,488 (Income from Operations), $0.52 (Diluted EPS) * Tax effects related to above items: $(57,296) (Net Income), $(0.97) (Diluted EPS)
F5(FFIV) - 2025 Q3 - Quarterly Results