Summary
F5 reported record first quarter results for fiscal 2025. Revenue rose 10.7% to $766.5 million. Gross profit was $626.0 million, up 12.5%, and gross margin rose 1.4 percentage points to 81.7%. Operating income was $205.1 million, up 24.7%, with operating margin up 3.0 percentage points to 26.8%. Net income was $166.4 million, up 20.3%, and diluted EPS was $2.82, up from the prior-year quarter. Operating cash flow was $202.8 million, up 22.7%. Capital expenditures were $8.1 million, down 10.8%. Deferred revenue was $1.95 billion, up 6.3%. Remaining performance obligations were $1.90 billion, up 5.6%. The company said the quarter reflected alignment with hybrid multicloud and AI trends.
Non-GAAP results were stronger. Non-GAAP gross profit was $643 million, compared with $575 million in the prior-year quarter. Non-GAAP gross margin was 83.9%, compared with 83.1%. Non-GAAP operating profit was $286 million, compared with $246 million. Non-GAAP operating margin was 37.4%, compared with 35.5%. Non-GAAP net income was $227 million, or $3.84 per diluted share, compared with $205 million, or $3.43 per diluted share. Management said the company saw a more stable IT spending environment and strong execution. Software and systems revenue both grew, and global services revenue also increased. The company pointed to new opportunities in hybrid multicloud and AI. It said its innovation can simplify complex multicloud environments and securely move enterprise data for AI inferencing and retrieval augmented generation.
Guidance for the second quarter of fiscal 2025 calls for revenue in the range of $705 million to $725 million and non-GAAP earnings of $3.02 to $3.14 per diluted share. For the full fiscal year 2025, F5 raised its revenue growth expectations to 6% to 7% from fiscal year 2024, up from prior guidance of 4% to 5% growth. It also raised its fiscal year 2025 non-GAAP earnings per share expectations to 6.5% to 8.5% growth over fiscal year 2024, up from prior guidance of 5% to 7% growth. On a tax-neutral basis, the midpoint of fiscal year 2025 non-GAAP earnings per share guidance reflects better than 10% growth year over year. The company said all forward-looking non-GAAP measures exclude amortization of intangible assets, share-based compensation, and certain tax items.
Risks remain. The company faces uncertain economic conditions, including inflation, tariffs, higher interest rates, slower growth, and foreign exchange fluctuations. Supply chain disruptions could affect product availability and costs. Competition and pricing pressures are ongoing concerns. Customer acceptance of new offerings and the ability to integrate acquisitions also matter. Restructuring charges weighed on GAAP results, though the company completed restructuring plans to align resources for long-term growth. Deferred revenue and RPO growth suggest a healthy backlog. The company also noted risks related to cybersecurity attacks, natural catastrophic events, and the ability to attract and retain personnel. The MD&A adds that overall performance depends on worldwide economic and geopolitical conditions, and that uncertain economic conditions may adversely affect results.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $766.5M | $746.7M | +2.7% | $692.6M | +10.7% |
| Gross profit | $626.0M | $603.0M | +3.8% | $556.2M | +12.5% |
| Gross margin | 81.7% | 80.8% | +0.9 pp | 80.3% | +1.4 pp |
| Research & development | $130.5M | $124.0M | +5.3% | $119.6M | +9.2% |
| Sales & marketing | $206.0M | $217.0M | -5.1% | $198.9M | +3.6% |
| General & administrative | $73.0M | $71.0M | +2.9% | $64.7M | +12.8% |
| Total operating expenses | $420.9M | $411.9M | +2.2% | $391.7M | +7.5% |
| Operating income (loss) | $205.1M | $191.0M | +7.4% | $164.5M | +24.7% |
| Operating margin | 26.8% | 25.6% | +1.2 pp | 23.8% | +3.0 pp |
| Net income (loss) | $166.4M | $165.3M | +0.7% | $138.4M | +20.3% |
| Net margin | 21.7% | 22.1% | -0.4 pp | 20.0% | +1.7 pp |
| Diluted EPS | $2.82 | $2.78 | +$0.04 | $2.32 | +$0.50 |
Risks
Two distributors, Ingram Micro and Synnex, accounted for 16.2% and 16.8% of total net revenue in the quarter ended December 31, 2024, up from 15.3% and 15.6% in the prior-year quarter, and each exceeded 10% of receivables. Loss or reduction in purchases by either distributor could materially reduce revenues.
SaaS KPIs
All quarters →Non-GAAP Operating Margin
Summary, forecast, risks and KPIs are extracted from F5, INC.'s SEC filings for Q1 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.