01—Abstract
Summary
Summary of the 10-Q filed August 8, 2025. Cited figures are marked; the original filing is the authoritative source.
Fortinet, Inc. reported strong performance for the second quarter and first half of 2025, demonstrating consistent revenue growth driven by both its product and service segments.
Total revenue increased by 14%a year-over-year for both the three and six months ended June 30, 2025. The company's service revenue, in particular, showed robust growth, up 14% in both periods, fueled by security subscriptions and support services, indicating the continued demand for its integrated cybersecurity platform. Operationally, Fortinet managed its expenses effectively, with significant investments in R&D and Sales & Marketing to support future growth.
While the operating margin saw a slight decrease quarter-over-quarter due to increased R&D and S&M expenses as a percentage of revenue and a slight dip in gross margin, the year-to-date operating margin improved significantly. The company also maintained a strong liquidity position, with substantial cash, cash equivalents, and investments, and generated robust operating cash flow. Share repurchases continued, reflecting the company's commitment to returning capital to shareholders.
02—Key points
Key Highlights
- Total revenue grew 14% year-over-year in both the three and six months ended June 30, 2025, reaching $1.63 billion and $3.17 billion, respectively.
- Service revenue increased by 14% year-over-year for both periods, driven by strong demand for security subscriptions and support services.
- Operating income increased by 5% to $458.0 million for the three months ended June 30, 2025, and by 20% to $911.8 million for the six months ended June 30, 2025, compared to the prior year periods.
- The company maintained a strong cash position, with total cash, cash equivalents, and investments of $4.67 billion as of June 30, 2025.
- Net cash provided by operating activities was $1.32 billion for the first six months of 2025, a 12% increase year-over-year.
- Fortinet repurchased $401.1 million of its common stock during the first six months of 2025 under its share repurchase program.
- The EMEA region showed the strongest revenue growth, increasing by 18% year-over-year for the three months ended June 30, 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Fortinet, Inc. kept $0.27.
- Revenue$1.63B100.0%
- Cost of revenue−$314.9M19.3%
- Gross profit$1.32B80.7%
- Operating costs−$857.1M52.6%
- Operating income$458.0M28.1%
- Interest, other & tax−$17.9M1.1%
- Net income$440.1M27.0%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 8, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $1.63B$1.43B | +13.6% |
| Cost of Revenue | $314.90M$275.00M | +14.5% |
| Gross Profit | $1.32B$1.16B | +13.4% |
| R&D Expenses | $209.50M$165.40M | +26.7% |
| Operating Expenses | $857.10M$722.10M | +18.7% |
| Operating Income | $458.00M$437.20M | +4.8% |
| Net Income | $440.10M$379.80M | +15.9% |
| EPS (Basic) | $0.57$0.50 | +14.0% |
| EPS (Diluted) | $0.57$0.49 | +16.3% |
| Shares Outstanding (Basic) | 765.50M763.80M | +0.2% |
| Shares Outstanding (Diluted) | 772.70M769.90M | +0.4% |
05—Questions
Frequently Asked Questions
What was Fortinet's revenue growth in the second quarter of 2025?
Fortinet reported total revenue of $1.63 billion for the three months ended June 30, 2025, representing a 14% increase compared to the same period in the prior year. Product revenue grew 13% to $508.9 million, and service revenue grew 14% to $1.12 billion.
How did Fortinet's profitability perform in the reported period?
For the three months ended June 30, 2025, operating income was $458.0 million, a 5% increase year-over-year, resulting in an operating margin of 28.1%. For the six months ended June 30, 2025, operating income increased by 20% to $911.8 million, with an improved operating margin of 28.8% compared to 27.2% in the prior year period.
What is the company's current liquidity position?
As of June 30, 2025, Fortinet maintained a strong liquidity position with $4.67 billion in cash, cash equivalents, and investments. The company also generated $1.32 billion in net cash from operating activities for the first six months of 2025.
What is the outlook for Fortinet's growth, particularly in services?
Fortinet expects its service revenue to continue to grow, driven by its expanding deferred revenue balance for security subscriptions and support services, as well as growth opportunities in its unified SASE and SecOps offerings. The company anticipates continued growth in product revenue as well.
06—Continue