10-QPeriod: Q3 FY2025

F5, INC. Quarterly Report for Q3 Ended Jun 30, 2025

Filed August 6, 2025For Securities:FFIV

Summary

F5, INC. (FFIV) reported a strong third quarter for fiscal year 2025, demonstrating robust revenue growth and improved profitability. Total net revenues increased by 12.2% year-over-year to $780.4 million, driven by a significant surge in product revenues, particularly in systems and software. This growth indicates successful market penetration and demand for F5's advanced application delivery and security solutions. The company's profitability also saw a notable improvement, with net income rising to $190 million, a substantial increase from $144 million in the prior year's comparable quarter. This enhanced profitability, coupled with a healthy increase in operating income, reflects effective cost management and the benefits of its revenue growth strategy. For the nine-month period, total net revenues grew by 10.1% to $2.28 billion, and net income reached $501.9 million. The company maintained a strong cash position, with cash and cash equivalents increasing to $1.43 billion. F5 also continued its commitment to shareholder returns through a significant share repurchase program, repurchasing $125 million worth of stock in the quarter. Despite ongoing macroeconomic uncertainties, F5's performance suggests resilience and a positive outlook for its core business.

Financial Highlights

50 data points
Beta

Revenue

$780.37M

81.0% Gross Margin

Net Income

$189.91M

24.3% Net Margin

EPS (Diluted)

$3.25

Total Assets

$6.11B

Cash & Equivalents

$1.43B

Free Cash Flow

$273.68M

Financial Statements
Beta
Revenue$780.37M
Cost of Revenue$148.63M
Gross Profit$631.74M
R&D Expenses$136.34M
Operating Expenses$435.43M
Operating Income$196.32M
Net Income$189.91M
EPS (Basic)$3.29
EPS (Diluted)$3.25
Shares Outstanding (Basic)57.77M
Shares Outstanding (Diluted)58.49M

Key Highlights

  • 1Total net revenues for the three months ended June 30, 2025, increased by 12.2% to $780.4 million compared to the prior year quarter.
  • 2Net income for the three months ended June 30, 2025, rose significantly to $189.9 million, an increase from $144.1 million in the same period last year.
  • 3Product revenues experienced strong growth, increasing by 26.0% year-over-year for the quarter, driven by both systems and software.
  • 4Gross margin remained strong, reported at 81.0% for the three months ended June 30, 2025, indicating effective cost management.
  • 5Operating expenses as a percentage of net revenue decreased to 55.8% from 56.9% in the prior year quarter, signaling improved operational efficiency.
  • 6The company maintained a robust cash and cash equivalents balance of $1.43 billion as of June 30, 2025.
  • 7F5 continued its share repurchase program, repurchasing $125.0 million of common stock during the three months ended June 30, 2025.

Frequently Asked Questions

The significant increase in revenue, particularly product revenue, was driven by strong performance in both systems and software, reflecting increased demand for F5's application delivery and security solutions. This growth was further supported by an increase in service revenues from maintenance contracts.

F5 demonstrated improved operational efficiency, as operating expenses as a percentage of net revenue decreased to 55.8% for the quarter, down from 56.9% in the prior year period. This was achieved through controlled growth in sales and marketing, research and development, and general and administrative expenses relative to revenue expansion.

F5 maintains a strong financial position with total assets of $6.11 billion as of June 30, 2025. The company's cash and cash equivalents stood at $1.43 billion, indicating ample liquidity to fund operations and strategic initiatives. Furthermore, the company's retained earnings have grown substantially to $3.45 billion.

F5 is actively returning value to shareholders through its share repurchase program. During the three months ended June 30, 2025, the company repurchased $125.0 million of its common stock. Additionally, it reported an increased net income per share on both a basic ($3.29) and diluted ($3.25) basis for the quarter.