Core Viewpoint - A class action securities lawsuit has been filed against Fortinet, Inc. for alleged securities fraud affecting investors between November 8, 2024, and August 6, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that Fortinet's management made false statements regarding the refresh cycle of their products, suggesting it would be more profitable than it actually was, as it involved old products that represented a "small percentage" of the company's business [2]. - It is alleged that Fortinet misrepresented the number of FortiGate firewalls eligible for upgrades and that the company had pushed through approximately half of the refresh in just a few months, contrary to claims of a two-year momentum [2]. Group 2: Investor Information - Investors who suffered losses during the specified timeframe have until November 21, 2025, to request appointment as lead plaintiff, although participation in any recovery does not require this role [3]. - Class members may be entitled to compensation without any out-of-pocket costs or fees, indicating no financial obligation to participate in the lawsuit [3]. Group 3: Legal Firm Background - Levi & Korsinsky, LLP has a history of securing hundreds of millions of dollars for shareholders and is recognized as one of the top securities litigation firms in the United States, with over 70 employees dedicated to serving clients [4].

Core Insights - CyberArk Software Ltd. reported better-than-expected quarterly results with expanding subscription revenue, indicating strong business fundamentals despite acquisition-related costs impacting free cash flow ahead of its merger with Palo Alto Networks [1] Financial Performance - CyberArk's revenue reached $342.8 million, operating profit was $64.8 million, and EPS was $1.20, surpassing estimates of $338.3 million, $54.3 million, and $1.04 respectively [2] - Subscription revenue increased by 60% year-over-year to $280.1 million, now accounting for 82% of total revenue, while total recurring revenue rose 46% year-over-year to $326.3 million, representing 95% of total revenue [3] Free Cash Flow - Free cash flow was reported at $42.4 million with a 12% margin, below estimates of $66.3 million and a 20% margin; adjusted for acquisition-related costs, FCF improved to $51.3 million, or a 15% margin [4] Annual Recurring Revenue (ARR) - Total annual recurring revenue (ARR) was $1.341 billion, up 45% year-over-year, exceeding expectations of $1.334 billion; total net new ARR (NNARR) was $67 million, a 16% increase year-over-year [5] - Subscription ARR stood at $1.16 billion, representing 86% of total ARR, up 58% year-over-year, while subscription NNARR reached $70 million, up 21% year-over-year [6] Updated Forecasts - D.A. Davidson updated its 2025 and 2026 estimates, projecting 2025 EPS of $4.48 and revenue of $1.36 billion, increasing to $5.56 EPS and $1.58 billion in revenue for 2026 [7]

Group 1 - Cloudflare stock has experienced a decline, falling below a buy point after a strong earnings-fueled breakout on October 31 [2][5] - The stock is currently on track for a fifth consecutive loss, but may find support at its 50-day moving average [2] - Cloudflare has received a composite rating upgrade, indicating improved performance metrics [5] Group 2 - The broader market has pulled back, affecting several stocks, including Cloudflare [2] - Amazon and Apple are leading the earnings winners, contributing to a rise in Dow Jones futures [5] - The focus is shifting towards 2026 outlooks for cybersecurity stocks as earnings reports approach [5]

Core Insights - Fortinet (FTNT) has seen a decline of -6.3% recently, while Microsoft (MSFT) is positioned as a more favorable investment option due to stronger revenue growth, enhanced profitability, and lower valuation [1][3] Company Performance Comparison - Microsoft has demonstrated a quarterly revenue growth of 18.4% and a 12-month revenue growth of 15.6%, outperforming Fortinet's 13.6% and 14.5% respectively [6] - In terms of profitability, Microsoft boasts a Last Twelve Months (LTM) margin of 46.3% and a 3-year average margin of 44.6%, indicating superior profitability compared to Fortinet [6] Market Trends and Positioning - Microsoft is recognized as a foundational technology player with strong momentum in artificial intelligence, cloud computing, and enterprise software partnerships, showing resilience during market volatility [3] - Fortinet is primarily focused on cybersecurity solutions but is more vulnerable to fluctuations in IT spending cycles and specific product demand, which has affected its stock performance [3]

Financial Data and Key Metrics Changes - In Q3 2025, revenues increased to $363.7 million, up nearly 3% from $353.6 million in the prior year [16] - Adjusted EBITDA for Q3 2025 was $124.1 million, a slight decline of less than 1% from $124.7 million year-over-year [17] - Adjusted diluted EPS rose by more than 7% to $1.76 from $1.64 in Q3 2024, aided by share buybacks that reduced the weighted average diluted shares by 7.5% [17][25] Business Line Data and Key Metrics Changes - Tech and shopping revenue fell by 2% in Q3, with adjusted EBITDA down 12%, primarily due to the wind down of game publishing activities [8][19] - Health and wellness segment saw a 13% year-over-year revenue growth and 18% adjusted EBITDA growth, marking high watermarks for the division [10] - Cybersecurity and martech revenue grew by 2% in Q3, driven by strong performance in consumer VPN and cloud backup [12] Market Data and Key Metrics Changes - The connectivity division achieved 2% year-over-year revenue growth, with year-to-date revenues up 7% [11] - Gaming and entertainment revenues were approximately 4% lower year-over-year, but adjusted EBITDA grew nearly 3% [9] - Advertising and performance marketing revenues grew by 5.9% year-over-year, while subscription and licensing revenues increased by 2% [18] Company Strategy and Development Direction - The company is evaluating potential opportunities to unlock shareholder value, having engaged outside advisors for this purpose [4][5] - There is a focus on maximizing value for shareholders while maintaining a profitable and growing business structure [5][26] - The company is committed to a disciplined acquisition strategy, having closed seven acquisitions in the first nine months of 2025 [22][23] Management's Comments on Operating Environment and Future Outlook - Management noted that the disconnect between the current market value and intrinsic value of the company is at its widest [29] - The company anticipates fiscal year 2025 total revenues and adjusted diluted EPS to be within the lower half of its guidance range [24] - Management expressed optimism about the performance of various segments despite broader industry headwinds [39] Other Important Information - The company has significant cash reserves of $503.4 million and long-term investments of $119.6 million, with a gross leverage of 1.7 times trailing 12 months adjusted EBITDA [22] - Free cash flow for Q3 2025 was $108.2 million, representing a 35% increase year-over-year [25] - The company plans to continue its stock repurchase program, having repurchased 3 million shares year-to-date [23] Q&A Session Summary Question: Insights on valuation disconnect - Management acknowledged the valuation disconnect and noted that the recent segment-level disclosures have attracted interest from strategic and private equity investors [28][29] Question: Strategic review and potential divestitures - Management stated that no specific properties are off-limits for divestiture, but exploring opportunities for select units is likely to be more value-accretive [31] Question: Impact of AI on traffic and revenue - Management indicated that the company is well-positioned against fluctuations in search traffic, with only 35% of total revenue dependent on web traffic [32] Question: Future M&A opportunities - Management expressed optimism about acquiring smaller properties that may not have weathered recent market changes as well as continuing to buy back shares [44][45] Question: Philosophical shift in acquisitions - Management clarified that the focus remains on cash-on-cash returns and that there is no change in the overall approach to acquisitions [51]

Core Insights - Geopolitics and security have evolved beyond physical threats to encompass digital realms, affecting software and cloud environments [1] Group 1 - The nature of geopolitical and security threats now includes online and software vulnerabilities, indicating a shift in focus from traditional material harm [1]

Group 1 - The First Trust NASDAQ Cybersecurity ETF (CIBR) is characterized as a higher risk investment due to growth concerns in the cybersecurity landscape [1] - The article emphasizes the importance of understanding macroeconomic trends, corporate earnings, and financial statement analysis for identifying investment opportunities [1] Group 2 - The analyst has over 20 years of experience in quantitative research, financial modeling, and risk management, focusing on equity valuation and market trends [1] - The research approach combines rigorous risk management with a long-term perspective on value creation [1]

Group 1 - The First Trust NASDAQ Cybersecurity ETF (CIBR) is characterized as a higher risk investment due to growth concerns in the cybersecurity landscape [1] - The cybersecurity sector is currently facing amplified growth concerns, indicating potential challenges for investors [1] Group 2 - The article does not provide specific financial data or performance metrics related to the companies or the ETF mentioned [2][3]

Core Insights - Castellum, Inc. achieved its first-ever quarterly GAAP net income in Q3 2025, marking a significant milestone for the company [1][5][7] - The company reported record revenue and improved operating performance, alongside a strong cash position and further debt reduction [1][4][5] Financial Performance - Q3 2025 revenue reached $14.6 million, an increase from $14.0 million in Q2 2025 and $11.6 million in Q3 2024, representing the third consecutive quarter of year-over-year organic revenue growth [2][5] - Operating profit for the quarter was $0.4 million, a turnaround from an operating loss of $(0.4) million in Q2 2025 and $(7.3) million in Q3 2024, reflecting improved cost discipline and operating leverage [3][5] - Adjusted EBITDA for the quarter was $1.1 million, excluding non-cash and one-time items [3] Cash and Debt Management - Castellum ended Q3 2025 with a record cash balance of $17.8 million, up from $14.7 million at the end of Q2 2025, demonstrating strong liquidity management [4][5] - Total debt was reduced to $2.4 million during the quarter, enhancing the company's financial flexibility [4][5] Management Commentary - The CFO highlighted the company's commitment to disciplined operating performance and cash management, which has led to its best performance and balance sheet strength to date [6] - The CEO emphasized the importance of long-term growth through strategic investments and maintaining positive cash flow, while also achieving net income this quarter [7]

Core Insights - BIO-key International, Inc. has secured a significant deployment with a major defense-sector security organization in the Middle East, enhancing its presence in high-assurance government and defense environments [1][2]. Group 1: Deployment Details - The contract is one of BIO-key's largest security-sector deployments in the region, aimed at strengthening access security and streamlining credential management through biometric-based authentication without reliance on mobile devices or hardware tokens [2]. - The deployment is facilitated by a strategic partnership with Cloud Distribution, a Saudi-based Value-Added Distributor, which combines BIO-key's IAM solutions with local cybersecurity expertise [3]. Group 2: Strategic Commitment - The deployment underscores BIO-key's commitment to supporting national security and critical infrastructure protection in the Middle East, reflecting the trust in its technology for securing sensitive environments [4]. Group 3: Company Overview - BIO-key is a leader in biometric-centric, multi-factor identity and access management (IAM) software, securing access for over 40 million users and offering various authentication options, including phoneless, tokenless, and passwordless solutions [5].