01—Abstract
Summary
Summary of the 10-Q filed August 6, 2025. Cited figures are marked; the original filing is the authoritative source.
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 milliona, 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 billionb, 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 millionc worth of stock in the quarter. Despite ongoing macroeconomic uncertainties, F5's performance suggests resilience and a positive outlook for its core business.
02—Key points
Key Highlights
- Total net revenues for the three months ended June 30, 2025, increased by 12.2% to $780.4 million compared to the prior year quarter.
- Net 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.
- Product revenues experienced strong growth, increasing by 26.0% year-over-year for the quarter, driven by both systems and software.
- Gross margin remained strong, reported at 81.0% for the three months ended June 30, 2025, indicating effective cost management.
- Operating expenses as a percentage of net revenue decreased to 55.8% from 56.9% in the prior year quarter, signaling improved operational efficiency.
- The company maintained a robust cash and cash equivalents balance of $1.43 billion as of June 30, 2025.
- F5 continued its share repurchase program, repurchasing $125.0 million of common stock during the three months ended June 30, 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, F5, Inc. kept $0.24.
- Revenue$780.4M100.0%
- Cost of revenue−$148.6M19.0%
- Gross profit$631.7M81.0%
- Operating costs−$435.4M55.8%
- Operating income$196.3M25.2%
- Interest, other & tax−$6.4M0.8%
- Net income$189.9M24.3%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed August 6, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $780.37M$695.50M | +12.2% |
| Cost of Revenue | $148.63M$136.43M | +8.9% |
| Gross Profit | $631.74M$559.07M | +13.0% |
| R&D Expenses | $136.34M$124.39M | +9.6% |
| Operating Expenses | $435.43M$395.98M | +10.0% |
| Operating Income | $196.32M$163.09M | +20.4% |
| Net Income | $189.91M$144.08M | +31.8% |
| EPS (Basic) | $3.29$2.46 | +33.7% |
| EPS (Diluted) | $3.25$2.44 | +33.2% |
| Shares Outstanding (Basic) | 57.77M58.58M | −1.4% |
| Shares Outstanding (Diluted) | 58.49M59.15M | −1.1% |
05—Questions
Frequently Asked Questions
What drove the significant increase in revenue this quarter?
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.
How is F5 managing its operating expenses in light of revenue growth?
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.
What is F5's current financial health and cash position?
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.
How is F5 returning value to shareholders?
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.
06—Continue