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F5, INC. 8-K Report, Financial Results (Jan 28, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed January 28, 2025
Period End
January 28, 2025
Security
FFIV
In the record · 2016–202610-K1010-Q338-K108

FFIV filed 10 annual reports (10-K), 33 quarterly reports (10-Q) and 108 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · May ’19May ’19
  2. Deal closed8-K · Jan ’21Jan ’21
  3. Leadership change8-K · Oct ’22Oct ’22
  4. Leadership change8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed January 28, 2025. Cited figures are marked; the original filing is the authoritative source.

F5, Inc. (NASDAQ: FFIV) reported record first-quarter fiscal 2025 results for the period ended December 31, 2024, with revenue of $766.5 milliona, up 11% year over year from $692.6 million.

The growth was led by software revenue of $209 millionb (up 22%) and systems revenue of $160 million (up 18%), while global services revenue of $398 million grew a more modest 3%. Management attributed the strength to alignment with hybrid multicloud trends, a more stable IT spending environment, and emerging AI-related opportunities tied to moving large volumes of enterprise data for AI inferencing and retrieval-augmented generation. Profitability improved meaningfully.

GAAP gross margin expanded to 81.7% from 80.3%, and GAAP operating margin rose to 26.8% from 23.8%. GAAP diluted EPS was $2.82c versus $2.32 a year earlier, while non-GAAP diluted EPS was $3.84 versus $3.43, up about 12%. Operating cash flow was $202.8 million, and the company repurchased $125 million of stock during the quarter.

Cash and equivalents reached $1.15 billiond at quarter end, and deferred revenue (current plus long-term) rose to roughly $1.95 billion, a signal of forward revenue visibility. For the outlook, F5 guided fiscal Q2 2025 revenue to $705 million to $725 million and non-GAAP EPS to $3.02 to $3.14. It raised full-year fiscal 2025 revenue growth expectations to 6% to 7% (from 4% to 5%) and non-GAAP EPS growth to 6.5% to 8.5% (from 5% to 7%).

Investors should note that GAAP results remain the primary measure, and the gap between GAAP and non-GAAP figures is driven largely by share-based compensation of about $58 million per quarter. Restructuring charges of $11.3 million were also recorded in the quarter.

02—Key points

Key Highlights

  1. Record Q1 FY25 revenue of $766.5 million, up 11% YoY, with software up 22% to $209 million and systems up 18% to $160 million.
  2. GAAP operating margin expanded about 300 basis points to 26.8%, and GAAP gross margin rose to 81.7% from 80.3%.
  3. GAAP diluted EPS of $2.82 (vs. $2.32) and non-GAAP diluted EPS of $3.84 (vs. $3.43), up roughly 12%.
  4. Full-year FY25 guidance raised: revenue growth of 6% to 7% (from 4% to 5%) and non-GAAP EPS growth of 6.5% to 8.5% (from 5% to 7%).
  5. Q2 FY25 guidance of $705 million to $725 million in revenue and $3.02 to $3.14 non-GAAP EPS, which implies a sequential revenue decline from Q1.
  6. Deferred revenue (current and long-term) grew to about $1.95 billion, and operating cash flow was $202.8 million, supporting forward visibility.
  7. Services revenue grew only 3% to $398 million, the slowest of the three revenue lines, and restructuring charges of $11.3 million were recorded.

03—Questions

Frequently Asked Questions

  1. What drove F5's revenue growth in the first quarter of fiscal 2025?

    Growth was driven primarily by software revenue, which rose 22% to $209 million, and systems revenue, which rose 18% to $160 million. Management credited alignment with hybrid multicloud adoption and emerging AI-related demand for moving large volumes of enterprise data. Global services revenue grew a slower 3% to $398 million.

  2. How did F5's profitability change compared with the prior year?

    GAAP operating margin improved to 26.8% from 23.8%, and GAAP net income rose to $166 million from $138 million. Non-GAAP operating margin reached 37.4%, up from 35.5%. Gross margin also expanded on both a GAAP and non-GAAP basis.

  3. Did F5 change its outlook for fiscal 2025?

    Yes, F5 raised its fiscal 2025 revenue growth expectation to 6% to 7% from 4% to 5%, and its non-GAAP EPS growth expectation to 6.5% to 8.5% from 5% to 7%. Its Q2 guidance calls for revenue of $705 million to $725 million, which is below Q1 levels, and non-GAAP EPS of $3.02 to $3.14.

  4. How strong is F5's balance sheet and cash generation?

    Cash and cash equivalents rose to about $1.15 billion from $1.07 billion at fiscal year-end. Operating cash flow was $202.8 million for the quarter, and the company repurchased $125 million of its stock. Deferred revenue grew to roughly $1.95 billion in total, which supports future revenue visibility.

  5. What is the difference between GAAP and non-GAAP results, and why does it matter?

    The main adjustments are share-based compensation of about $58 million per quarter, amortization of acquired intangibles, restructuring charges, and facility-exit and acquisition costs. Non-GAAP EPS of $3.84 is well above GAAP EPS of $2.82. Investors should treat GAAP as the primary measure because stock compensation is a recurring cost of doing business, even though it is excluded from non-GAAP figures.

04—Continue

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