Core Viewpoint - Seattle-based security and application delivery giant F5 will acquire CalypsoAI for $180 million, enhancing its capabilities in AI-driven security solutions [1] Company Summary - F5 is a prominent player in the security and application delivery industry, focusing on providing advanced security solutions [1] - CalypsoAI, founded in 2018, specializes in AI technologies, which will complement F5's existing offerings [1] Financial Summary - The acquisition deal is valued at $180 million, indicating F5's commitment to expanding its portfolio in the AI sector [1]

Group 1 - F5, Inc. has experienced a strong upward trend, gaining 6.5% over the past six trading days, adding approximately $1.2 billion to its market capitalization, now valued at around $19 billion [2] - The stock's year-to-date return is 29.9%, significantly outperforming the S&P 500's gain of 11.1% during the same period [2] - F5 participated in the Goldman Sachs Communacopia + Technology Conference, outlining its strategy for addressing challenges in hybrid and multi-cloud environments [3] Group 2 - F5 provides multi-cloud application security and delivery solutions, along with professional services for large enterprises to ensure the performance, availability, and protection of their network applications [4] - The recent strong performance of F5's stock raises questions for investors about whether to buy more or secure their gains [4] - A multi-day advance in stock price can reflect rising investor confidence, potentially leading to follow-on buying [6]

Core Insights - The article discusses the significant impact of AI programming tools on development efficiency while highlighting new challenges such as security vulnerabilities, low-quality code, and the complexity of debugging AI-generated code [2][4]. Group 1: AI Tools and Challenges - AI programming tools have been reported to significantly enhance development efficiency, but they also introduce new security vulnerabilities and low-quality code issues [2]. - The increase in API numbers due to AI tools has led to a heavier operational burden for enterprises [2]. - The "black box" issue complicates the understanding of AI-generated code, making debugging and security checks more time-consuming [2]. Group 2: Security and Performance - Performance is crucial for user experience, and balancing security with user-friendly authentication processes is a pressing challenge [4]. - Over 91% of users have implemented WAAP (Web Application and API Protection) to secure AI and machine learning models [5]. Group 3: AI in Operations - A significant percentage of operational staff are utilizing AI to streamline processes: 57% use AI for script generation, 56% for custom policy creation, and 55% for executing scripts [7]. - Observability is key for AI-driven automation, with 65% of respondents leveraging it for this purpose [7]. Group 4: Application Trends - The proportion of modern applications is expected to surpass traditional applications by 2025, with modern applications rising from 29% in 2020 to 53% [7]. - By 2025, 54% of application and API performance analysis will be based on large models [7]. Group 5: AI Implementation Challenges - Complex IT architectures, unique security needs, and cost control are identified as major challenges for enterprises adopting AI applications [9]. - By 2028, 80% of enterprises are expected to embed AI capabilities, with 94% of AI applications deployed in hybrid cloud environments [12]. Group 6: F5's Response - F5 has transitioned to an Application Delivery and Security Platform (ADSP) to meet the growing demand for integrated performance and security solutions [11]. - The ADSP platform aims to provide seamless operation across various environments, addressing the complexities of modern application security [14]. Group 7: AI Gateway and Security - F5 has introduced the AI Gateway, which offers capabilities for routing based on large language models and provides protection against prompt injection and PII data leakage [16]. - The AI Gateway enhances GPU utilization rates by 30-60% while improving service success rates by at least 8% in specific applications [16]. Group 8: Comprehensive Services - F5 offers comprehensive application delivery and security services, including load balancing, DNS, CDN, and API gateways, adaptable to various deployment environments [17]. - The platform integrates capabilities across NetOps, SecOps, and DevOps, providing unified policy management and deep security analysis [17]. Group 9: AI Assistant - F5 has launched an AI assistant that enhances the platform's intelligence, capable of explanation, generation, and optimization across all F5 products [19].

Core Insights - F5 is participating in the Goldman Sachs Communacopia and Technology Conference, showcasing its leadership through CEO Francois Locoh-Donou and CFO Cooper Werner [1][2] Group 1 - The presentation is hosted by Michael Ng, a research analyst covering F5 and IT Hardware and Networking at Goldman Sachs [2] - The session is scheduled for approximately 35 minutes, including time for investor Q&A [2]

Summary of F5 Conference Call Company Overview - **Company**: F5 (NasdaqGS: FFIV) - **Industry**: Application Delivery and Security Key Points and Arguments Industry Challenges and F5's Position - **Hybrid Multi-Cloud Complexity**: Large enterprises are adopting hybrid multi-cloud architectures, leading to complexities in securing and delivering applications across different environments [7][10] - **Increased Application Services**: The number of application services required has significantly increased, necessitating advanced security measures such as API security and bot attack protection [7][8] - **AI Proliferation**: The rapid growth of AI applications adds further complexity, requiring new security services [8][10] ADC Market Insights - **ADC Role**: Application Delivery Controllers (ADCs) are essential for deep traffic inspection and are evolving beyond traditional roles to include security functions [12][13] - **Market Share Growth**: F5 has gained 16% market share in the ADC market over the past five years due to strategic investments across hardware, software, and SaaS [15][18] Competitive Landscape - **Strategic Choices**: F5's decision to invest in all ADC form factors contrasts with competitors who have focused on specific categories, allowing F5 to offer a comprehensive solution [18][22] - **Customer Consolidation**: Customers are consolidating their spending on F5 due to its broad portfolio and competitive advantages [19][20] Refresh Cycle and Non-Refresh Demand - **Legacy Systems**: Over 50% of F5's installed base is on older systems, with a refresh cycle expected as end-of-software support approaches [24][27] - **Capacity Expansion**: Customers are increasingly investing in capacity expansion during refresh cycles, driven by data sovereignty and AI considerations [27][31] Software Revenue Dynamics - **Growth Outlook**: F5 anticipates mid-single-digit growth in software revenue for fiscal 2026, driven by a strong base and expansion opportunities [33][36] - **Subscription Model Success**: The flexible consumption program has facilitated customer expansion and reduced friction in the purchasing process [35][36] Security Capabilities - **Security Integration**: Security now represents about 41% of F5's revenue, with a focus on application and API protection, zero trust access, and AI security [45][46] - **AI Security Solutions**: F5 is developing solutions like the F5 AI Gateway to secure connections between AI applications and data stores [46][47] Financial Performance and Guidance - **Revenue Growth**: F5 is guiding for 9% revenue growth, up from an initial outlook of 4-5%, driven by strong performance in both software and systems [48][50] - **Margin Improvement**: Operating margins are targeted at 35%, with a focus on driving efficiencies while investing in new use cases [52][53] Future Priorities - **Application Delivery and Security Platform**: F5's primary focus is on integrating its product families into a single platform to simplify customer operations [55] - **AI Opportunities**: F5 sees potential in AI data delivery and security, although these markets are still in early stages [56] Additional Important Insights - **Customer Transition**: Transitioning ADC vendors is complex and often takes years, providing F5 with long-term revenue opportunities as customers adopt its solutions [39][40] - **Cross-Selling Potential**: F5's entry into customer estates often leads to significant cross-sell opportunities as customers discover the breadth of its offerings [41][42]

Core Insights - F5 Networks reported strong Q3 earnings, with non-GAAP earnings per share of $4.16, exceeding expectations by 19.2% and up 23.8% year-over-year [2] - Revenues for Q3 reached $780 million, surpassing the consensus estimate by 3.6% and reflecting a 12.2% year-over-year increase [3] Financial Performance - Product revenues, accounting for 49.8% of total revenues, increased by 26% year-over-year to $389 million, outperforming estimates of $346.7 million [4] - Systems revenues surged 39% year-over-year to $181 million, representing 46.5% of total product revenues, driven by demand for infrastructure upgrades [5] - Software revenues rose 16% year-over-year to $208 million, exceeding estimates of $202 million [6] - Global Services revenues grew 1% year-over-year to $392 million, slightly below estimates of $399.5 million [6] Profitability Metrics - Non-GAAP gross profit increased 12.3% year-over-year to $649 million, with a gross margin of 83.1%, unchanged from the previous year [7] - Non-GAAP operating profit rose 14.6% year-over-year to $267 million, with an operating margin improvement of 90 basis points to 34.3% [7] Balance Sheet and Cash Flow - F5 ended the quarter with cash and short-term investments of $1.44 billion, up from $1.26 billion in the previous quarter [8] - The company generated operating cash flow of $282 million during the quarter and $742 million in the first nine months of fiscal 2025 [8] - F5 repurchased shares worth $125 million in the fiscal third quarter and $377 million in the first nine months of fiscal 2025 [8] Future Guidance - F5 raised its fiscal 2025 revenue growth forecast to approximately 9%, up from the previous estimate of 6.5-7.5% [9] - Non-GAAP EPS is now projected to grow by 14-15%, compared to the earlier guidance of 8-10% [10] - For Q4 fiscal 2025, F5 expects revenues between $780 million and $800 million, with a non-GAAP EPS range of $3.87-$3.99 [10] Market Sentiment - Recent estimates for F5 have trended upward, indicating positive market sentiment [11] - F5 holds a Zacks Rank 1 (Strong Buy), suggesting expectations for above-average returns in the coming months [13]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part provides F5, Inc.'s unaudited consolidated financial statements, including balance sheets, income statements, cash flows, and detailed accounting notes [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section details F5, Inc.'s unaudited consolidated financial statements, encompassing balance sheets, income statements, cash flows, and comprehensive accounting notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The company's financial position shows **total assets of $6.11 billion** and **total liabilities of $2.64 billion** as of June 30, 2025 | Metric | June 30, 2025 (in thousands) | September 30, 2024 (in thousands) | | :-------------------------- | :----------------------------- | :-------------------------------- | | Total Assets | $6,113,499 | $5,613,004 | | Total Liabilities | $2,641,815 | $2,483,626 | | Total Shareholders' Equity | $3,471,684 | $3,129,378 | | Cash and cash equivalents | $1,426,957 | $1,074,602 | | Deferred revenue (total) | $1,956,962 | $1,797,959 | [Consolidated Income Statements](index=5&type=section&id=Consolidated%20Income%20Statements) This section reports the company's financial performance over specific periods, including revenues, expenses, and net income | Metric (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net Revenues | $780,370 | $695,495 | $2,277,982 | $2,069,446 | | Net Income | $189,912 | $144,079 | $501,887 | $401,482 | | Net income per share — basic | $3.29 | $2.46 | $8.65 | $6.82 | | Net income per share — diluted | $3.25 | $2.44 | $8.54 | $6.75 | - Net Revenues increased **12.2%** for the three months ended June 30, 2025, and **10.1%** for the nine months ended June 30, 2025, compared to the prior year[11](index=11&type=chunk) - Net Income increased **31.8%** for the three months ended June 30, 2025, and **25.0%** for the nine months ended June 30, 2025, compared to the prior year[11](index=11&type=chunk) [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the company's comprehensive income, including net income and other comprehensive income items | Metric (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net income | $189,912 | $144,079 | $501,887 | $401,482 | | Foreign currency translation adjustment | $3,752 | $(1,232) | $2,354 | $886 | | Comprehensive income | $193,664 | $142,856 | $504,241 | $402,446 | [Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) This section details changes in the company's shareholders' equity over specific periods, including net income and stock repurchases | Metric (in thousands) | June 30, 2025 | June 30, 2024 | | :-------------------- | :------------ | :------------ | | Total Shareholders' Equity | $3,471,684 | $3,010,745 | | Repurchase of common stock (3 months) | $(125,105) | $(150,608) | | Repurchase of common stock (9 months) | $(375,595) | $(402,198) | | Net income (3 months) | $189,912 | $144,079 | | Net income (9 months) | $501,887 | $401,482 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section reports the company's cash inflows and outflows from operating, investing, and financing activities | Metric (in thousands) | Nine months ended June 30, 2025 | Nine months ended June 30, 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 | - Net cash provided by operating activities increased by **35.8%** for the nine months ended June 30, 2025, compared to the prior year[23](index=23&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements [1. Summary of Significant Accounting Policies](index=10&type=section&id=1.%20Summary%20of%20Significant%20Accounting%20Policies) This section outlines the key accounting principles and methods used in preparing the financial statements - F5, Inc. is a global leader in application delivery and security solutions, offering cloud, software, and hardware solutions for hybrid, multicloud environments[26](index=26&type=chunk) - Accounting policies for investments and fair value of financial instruments have been updated to include equity investments with no readily determinable fair value[28](index=28&type=chunk) - The Company is evaluating the impact of new accounting pronouncements: ASU 2023-07 (Segment Reporting), ASU 2023-09 (Income Tax Disclosures), and ASU 2024-03/2025-01 (Expense Disaggregation Disclosures)[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) [2. Revenue from Contracts with Customers](index=11&type=section&id=2.%20Revenue%20from%20Contracts%20with%20Customers) This section details the company's policies and disclosures related to revenue recognition from customer contracts | Metric (in thousands) | June 30, 2025 | June 30, 2024 | | :-------------------- | :------------ | :------------ | | Capitalized Contract Acquisition Costs (end of period) | $72,292 | $61,316 | | Deferred Revenue (end of period) | $1,956,962 | $1,772,584 | - Total non-cancelable remaining performance obligations were **$2.0 billion** as of June 30, 2025, with **61.4%** expected to be recognized as revenue over the next 12 months[38](index=38&type=chunk) [3. Fair Value Measurements](index=12&type=section&id=3.%20Fair%20Value%20Measurements) This section provides information on the fair value of financial instruments and the methodologies used for their measurement | Investment Type (in thousands) | June 30, 2025 Fair Value | September 30, 2024 Fair Value | | :----------------------------- | :----------------------- | :---------------------------- | | Money Market Funds (Level 1) | $760,409 | $437,273 | | Equity investments | $15,034 | $8,580 | | Total investments | $775,443 | $445,853 | - Interest income from cash, cash equivalents, and investments for the nine months ended June 30, 2025, was **$29.7 million**, up from **$25.0 million** in the prior year[50](index=50&type=chunk) [4. Business Combinations](index=14&type=section&id=4.%20Business%20Combinations) This section discloses details of business acquisitions completed by the company, including goodwill recognized - Completed two acquisitions in fiscal 2025, recording **$12.0 million** in goodwill, with an immaterial impact on operating results[54](index=54&type=chunk) - Completed two acquisitions in fiscal 2024, recording **$23.6 million** in goodwill, with an immaterial impact on operating results[55](index=55&type=chunk) [5. Balance Sheet Details](index=14&type=section&id=5.%20Balance%20Sheet%20Details) This section provides further disaggregation and details of specific accounts within the consolidated balance sheets | Account (in thousands) | June 30, 2025 | September 30, 2024 | | :--------------------- | :------------ | :----------------- | | Cash, Cash Equivalents and Restricted Cash | $1,429,031 | $1,078,340 | | Inventories | $66,920 | $76,378 | | Other Current Assets | $631,302 | $569,467 | | Accrued Liabilities | $281,413 | $300,076 | [6. Debt Facilities](index=15&type=section&id=6.%20Debt%20Facilities) This section describes the company's debt arrangements, including credit facilities and their status - The **$350.0 million** Revolving Credit Facility expired on January 31, 2025, with no outstanding borrowings at expiration[63](index=63&type=chunk) [7. Leases](index=16&type=section&id=7.%20Leases) This section provides details on the company's lease arrangements, including liabilities, terms, and expenses | Metric (in thousands) | June 30, 2025 | September 30, 2024 | | :-------------------- | :------------ | :----------------- | | Total Operating Lease Liabilities | $259,818 | $249,564 | | Weighted average remaining lease term | 7.8 years | 7.9 years | - Total lease expense for the nine months ended June 30, 2025, was **$49.6 million**, compared to **$50.2 million** in the prior year[65](index=65&type=chunk) - The Company expects to receive **$8.2 million** in sublease income, with **$0.7 million** in the remainder of fiscal 2025 and **$7.5 million** thereafter[67](index=67&type=chunk) [8. Commitments and Contingencies](index=17&type=section&id=8.%20Commitments%20and%20Contingencies) This section discloses the company's contractual commitments, warranties, and potential legal or regulatory contingencies - The Company has a one-year warranty for systems products, with additional coverage available through service maintenance agreements[70](index=70&type=chunk) - Total non-cancelable long-term purchase commitments outstanding as of June 30, 2025, were **$10.0 million**[71](index=71&type=chunk) - The Lynwood Investment CY Limited v. F5 Networks et al. lawsuit, concerning NGINX software intellectual property, was partially remanded to the District Court for further proceedings on a copyright claim[75](index=75&type=chunk)[76](index=76&type=chunk) [9. Income Taxes](index=18&type=section&id=9.%20Income%20Taxes) This section provides details on the company's income tax expense, effective tax rates, and unrecognized tax benefits | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Effective Tax Rate | 10.8% | 16.0% | 15.4% | 18.4% | - The decrease in the effective tax rate is primarily due to changes in unrecognized tax benefits and the tax impact of stock-based compensation[80](index=80&type=chunk) - Unrecognized tax benefits totaled **$84.8 million** at June 30, 2025, with no material changes expected within the next twelve months[81](index=81&type=chunk) [10. Shareholders' Equity](index=18&type=section&id=10.%20Shareholders'%20Equity) This section details changes in the company's shareholders' equity, including share repurchase programs and their impact - The Board of Directors authorized an additional **$1.0 billion** for the common stock share repurchase program on October 25, 2024, bringing the total remaining authorization to **$1,047.4 million** as of June 30, 2025[84](index=84&type=chunk)[85](index=85&type=chunk) | Metric (in thousands, except per share data) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Shares repurchased | 488 | 873 | 1,459 | 2,338 | | Amount repurchased | $125,010 | $150,018 | $375,029 | $400,047 | [11. Net Income Per Share](index=19&type=section&id=11.%20Net%20Income%20Per%20Share) This section presents the basic and diluted net income per share calculations for the company | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Basic Net Income Per Share | $3.29 | $2.46 | $8.65 | $6.82 | | Diluted Net Income Per Share | $3.25 | $2.44 | $8.54 | $6.75 | [12. Segment Information](index=19&type=section&id=12.%20Segment%20Information) This section provides financial data by operating segment and geographic region, along with key customer information - The Company operates in **one reportable operating segment**[88](index=88&type=chunk) | Revenue Type (in thousands) | 3 months ended June 30, 2025 | 9 months ended June 30, 2025 | | :-------------------------- | :--------------------------- | :--------------------------- | | Americas | $430,971 | $1,259,070 | | EMEA | $202,073 | $620,431 | | APAC | $147,326 | $398,481 | | Systems revenue | $180,855 | $519,968 | | Software revenue | $207,983 | $574,563 | - Key customers for the three months ended June 30, 2025, included Synnex Corporation (**18.4%** of total net revenue) and Ingram Micro, Inc. (**17.0%** of total net revenue)[90](index=90&type=chunk) [13. Restructuring Charges](index=20&type=section&id=13.%20Restructuring%20Charges) This section details the costs associated with the company's restructuring plans, including workforce reductions - Restructuring plans were initiated in fiscal 2025 and 2024 to align strategic and financial objectives and optimize resources, including workforce reductions[91](index=91&type=chunk) | Metric (in thousands) | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :-------------------- | :------------------------------ | :------------------------------ | | Restructuring charges | $11,321 | $8,655 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses F5's financial condition and operational results, analyzing revenue growth, cost structures, liquidity, cash flows, and capital resources, noting macroeconomic impacts [Overview](index=21&type=section&id=Overview) This section provides a high-level introduction to F5's business, market position, and recent financial trends - F5 is a global leader in application delivery and security solutions, offering cloud, software, and hardware solutions for hybrid, multicloud environments[96](index=96&type=chunk) - Revenue is derived from sales of products (BIG-IP software/systems, F5 NGINX software, F5 Distributed Cloud Services) and services (maintenance, training, consulting)[97](index=97&type=chunk) - Customer demand improved in the second half of fiscal 2024 and continued into fiscal 2025, following macroeconomic stabilization[97](index=97&type=chunk) - Deferred revenues increased to **$1.96 billion** as of June 30, 2025, from **$1.80 billion** as of September 30, 2024, primarily due to maintenance renewal contracts and subscription offerings[101](index=101&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including revenue, gross profit, operating expenses, and net income | Metric (in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Nine months ended June 30, 2025 | Nine months ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Total Net Revenues | $780,370 | $695,495 | $2,277,982 | $2,069,446 | | Net Product Revenues | $388,838 | $308,489 | $1,094,531 | $914,510 | | Net Service Revenues | $391,532 | $387,006 | $1,183,451 | $1,154,936 | | Gross Profit | $631,742 | $559,070 | $1,847,885 | $1,655,519 | | Operating Expenses | $435,425 | $395,980 | $1,287,589 | $1,187,953 | | Net Income | $189,912 | $144,079 | $501,887 | $401,482 | - Total net revenues increased **12.2%** for the three months and **10.1%** for the nine months ended June 30, 2025, primarily due to increased product revenues (systems and software) and service revenues[103](index=103&type=chunk) - Gross margin for the three months ended June 30, 2025, was **81.0%**, up from **80.4%** in the prior year[108](index=108&type=chunk) - The effective tax rate decreased to **10.8%** for the three months and **15.4%** for the nine months ended June 30, 2025, primarily due to changes in unrecognized tax benefits and stock-based compensation tax impact[115](index=115&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's ability to generate and manage cash, including sources and uses of funds and capital structure - Cash and cash equivalents, short-term investments, and long-term investments increased by **$358.8 million** to **$1.44 billion** as of June 30, 2025, from **$1.08 billion** as of September 30, 2024[118](index=118&type=chunk) - Cash provided by operating activities for the first nine months of fiscal year 2025 was **$741.6 million**, an increase from the prior year, driven by higher cash receipts from customers and increased deferred revenue[118](index=118&type=chunk)[119](index=119&type=chunk) - Cash used for common stock repurchases, including excise taxes, was **$377.1 million** for the nine months ended June 30, 2025[118](index=118&type=chunk) - The **$350.0 million** Revolving Credit Facility expired on January 31, 2025, with no outstanding borrowings[123](index=123&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section assesses the company's exposure to market risks, including interest rate, inflation, and foreign currency, noting no material changes or significant financial impact - An immediate **10%** change in interest rates is not expected to materially affect the fair market value of the investment portfolio or operating results/cash flows[129](index=129&type=chunk) - Inflation has not had a material effect on the business, financial condition, or results of operations to date, but the company is actively monitoring the macroeconomic inflationary environment[130](index=130&type=chunk) - Foreign currency transaction gains or losses have not been significant, as the majority of transactions are in U.S. dollars, but may become significant with international expansion[131](index=131&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures and reports no material changes in internal control over financial reporting - The company's disclosure controls and procedures were effective as of June 30, 2025[134](index=134&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended June 30, 2025[135](index=135&type=chunk) [PART II. OTHER INFORMATION](index=29&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part provides additional disclosures not included in the financial statements, covering legal, equity, and other relevant information [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 8 of the financial statements for detailed information regarding the company's legal proceedings - Information regarding legal proceedings is provided in Note 8 - Commitments and Contingencies of the Notes to Financial Statements[136](index=136&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) This section states no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes to risk factors from those described in the Annual Report on Form 10-K for the fiscal year ended September 30, 2024[137](index=137&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section updates the common stock share repurchase program, detailing a **$1.0 billion** authorization increase and shares repurchased during the quarter - The Board of Directors authorized an additional **$1.0 billion** for the common stock share repurchase program on October 25, 2024[138](index=138&type=chunk) - As of June 30, 2025, **$1,047.4 million** remained authorized for share repurchases[138](index=138&type=chunk) | Period | Total Number of Shares Purchased (in thousands) | Average Price Paid per Share | | :----- | :-------------------------------------------- | :--------------------------- | | April 1, 2025 – April 30, 2025 | 487.84 | $256.23 | [Item 4. Mine Safety Disclosures](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This item is not applicable[141](index=141&type=chunk) [Item 5. Other Information](index=30&type=section&id=Item%205.%20Other%20Information) This section discloses Rule 10b5-1 and non-Rule 10b5-1 trading arrangements adopted by certain officers and directors during the fiscal quarter - Chad Whalen, EVP, Chief Revenue Officer, adopted a Rule 10b5-1 plan on April 30, 2025, for the sale of **16,265** Company shares[142](index=142&type=chunk) - Lyra Schramm, EVP, Chief People Officer, adopted a Rule 10b5-1 plan on June 9, 2025, for the sale of **15,753** Company shares[143](index=143&type=chunk) - Thomas Fountain, EVP, Chief Operating Officer, adopted a Rule 10b5-1 plan on June 13, 2025, for the sale of **33,951** Company shares[143](index=143&type=chunk) [Item 6. Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including various certifications and XBRL documents - Exhibits include Certifications Pursuant to Section 302 and 906 of the Sarbanes-Oxley Act of 2002, and various Inline XBRL Taxonomy Extension Documents[144](index=144&type=chunk) [SIGNATURES](index=31&type=section&id=SIGNATURES) This section contains the official signatures certifying the accuracy and completeness of the financial report - The report was signed on August 6, 2025, by Edward C. Werner, Executive Vice President, Chief Financial Officer of F5, Inc.[147](index=147&type=chunk)[149](index=149&type=chunk)

Core Viewpoint - F5 Networks (FFIV) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - Rising earnings estimates for F5 suggest an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [5][10]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [9][10]. Recent Earnings Estimate Revisions for F5 - For the fiscal year ending September 2025, F5 is expected to earn $15.26 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 5.6% over the past three months [8].

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]

Hello and welcome to Asking for a Trend. I'm Josh Lipton. For the next half hour, we are breaking down the trends of today that'll move stocks tomorrow.We've got key earnings reports on deck and we're bringing you all of that live breaking data. Uh just now, Apple's third quarter earnings, they are crossing the wire just moments ago. Let's get you those numbers with the stock popping at least initially here.Q3 EPS looks like 157 versus estimates of 143. I see uh revenue 94.04% billion versus an estimate of ...