10-QPeriod: Q1 FY2026

F5, INC. Quarterly Report for Q1 Ended Dec 31, 2025

Filed February 5, 2026For Securities:FFIV

Summary

F5, Inc. (FFIV) reported solid financial results for the quarter ended December 31, 2025. Total revenues increased by 7.3% year-over-year to $822.5 million, driven by a significant 11.3% surge in product revenues to $410.3 million, primarily due to strong performance in systems. Service revenues also saw a modest increase of 3.6% to $412.2 million. Net income grew by 8.2% to $180.1 million, resulting in diluted earnings per share of $3.10, up from $2.82 in the prior year period. The company's gross margin remained strong at 81.5%. The company successfully integrated the acquisition of CalypsoAI Corp. in September 2025, enhancing its AI security offerings. While F5 continues to invest in research and development and sales and marketing, it also executed a substantial share repurchase program, returning capital to shareholders. Management expressed confidence in the company's liquidity and ability to meet its obligations, with cash and equivalents totaling $1.2 billion at quarter-end. Investors should monitor the ongoing legal proceedings and the potential impact of the previously disclosed Cyber Incident.

Financial Highlights

48 data points
Beta

Revenue

$822.47M

81.5% Gross Margin

Net Income

$180.05M

21.9% Net Margin

EPS (Diluted)

$3.10

Total Assets

$6.29B

Cash & Equivalents

$1.20B

Free Cash Flow

$149.49M

Financial Statements
Beta
Revenue$822.47M
Cost of Revenue$151.78M
Gross Profit$670.68M
R&D Expenses$141.16M
Operating Expenses$456.49M
Operating Income$214.19M
Net Income$180.05M
EPS (Basic)$3.12
EPS (Diluted)$3.10
Shares Outstanding (Basic)57.65M
Shares Outstanding (Diluted)58.16M

Key Highlights

  • 1Total revenues grew 7.3% year-over-year to $822.5 million.
  • 2Product revenues increased significantly by 11.3% to $410.3 million, led by a 36.7% rise in systems revenue.
  • 3Net income rose 8.2% to $180.1 million, with diluted EPS reaching $3.10.
  • 4Gross margin remained robust at 81.5%.
  • 5F5 acquired CalypsoAI Corp. in September 2025 to bolster its AI security capabilities.
  • 6The company repurchased $301 million of its common stock during the quarter.
  • 7Cash and cash equivalents stood at $1.2 billion at the end of the period.

Frequently Asked Questions

F5's total revenues increased by 7.3% year-over-year to $822.5 million for the quarter ended December 31, 2025. Product revenues were particularly strong, up 11.3% to $410.3 million, driven by systems, while service revenues increased by 3.6% to $412.2 million.

F5 acquired CalypsoAI Corp. on September 26, 2025, for $145.2 million. This acquisition enhances F5's application delivery and security solutions by integrating CalypsoAI's enterprise AI security platform, focusing on threat defense, red teaming, and data security for generative AI.

F5 reported strong liquidity with $1.2 billion in cash and cash equivalents. During the quarter, the company significantly increased its share repurchase activity, spending $301 million to buy back common stock. As of December 31, 2025, $622.4 million remained authorized under its share repurchase program.

F5 is involved in ongoing legal proceedings, including a remanded copyright claim related to NGINX and a putative class action lawsuit concerning cybersecurity disclosures. Additionally, the company disclosed a significant Cyber Incident on October 15, 2025, involving a threat actor's access to F5 systems and data exfiltration. The company incurred $17.5 million in response costs during the quarter and anticipates further expenses, though some may be recoverable under insurance.