Summary
F5 closed fiscal 2025 with fourth quarter revenue of $810.09 million, up 8.5% from the prior-year quarter. Gross profit was $666.21 million, up 10.5%, and gross margin reached 82.2%, up 1.5 percentage points. Operating income was $205.65 million, up 7.7%, while operating margin slipped to 25.4%, down 0.2 percentage points. Net income was $190.49 million, up 15.2%. On a non-GAAP basis, gross profit was $683 million, gross margin was 84.3%, operating profit was $299 million, operating margin was 37.0%, and net income was $257 million, or $4.39 per diluted share.
For the full fiscal year, revenue was $3.09 billion, up 9.7%. Gross profit was $2.51 billion, up 11.3%, and gross margin was 81.4%, up 1.2 percentage points. Operating income was $765.95 million, up 16.3%, and operating margin was 24.8%, up 1.4 percentage points. Net income was $692.38 million, up 22.2%, and diluted EPS was $11.80, up 23.6%. Non-GAAP gross profit was $2.58 billion, non-GAAP operating profit was $1.09 billion, non-GAAP net income was $928 million, and non-GAAP diluted EPS was $15.81. Management attributed the revenue growth to improving customer demand and higher systems and software sales.
Cash generation was mixed. Fourth quarter operating cash flow was $208.07 million, down 15.6% from the prior-year quarter. Capital expenditures were $16.14 million, up 166.4%. For the fiscal year, operating cash flow was $949.67 million, up 19.8%, and capital expenditures were $43.26 million, up 42.2%. Deferred revenue ended the quarter at $2.00 billion, up 11.2%, and remaining performance obligations were $2.00 billion, up 11.1%. The company ended the year with a strong balance sheet and continued to invest in facilities and technology.
Guidance reflects caution around the recent security incident. For fiscal year 2026, F5 guides to total revenue growth of 0% to 4%, non-GAAP operating margin of 33.5% to 34.5%, and non-GAAP earnings per share of $14.50 to $15.50. For the first quarter of fiscal year 2026, the company guides to non-GAAP earnings of $3.35 to $3.85 per diluted share. Management expects demand impacts from the cyber incident to be more pronounced in the first half of fiscal year 2026 before normalizing in the second half. The company also expects to incur additional professional services and other expenses tied to incident response during fiscal year 2026. F5 expects any demand impact to be short term and believes any effect on its operating model would also be temporary.
The cyber incident remains the central risk. F5 disclosed that a nation-state threat actor gained persistent access to certain systems and exfiltrated files, some containing portions of BIG-IP source code and information about undisclosed vulnerabilities. The company says containment actions have been successful and it has no evidence of new unauthorized activity, active exploitation of undisclosed vulnerabilities, or modification to its software supply chain. F5 has prioritized delivering reliable software release updates to address all undisclosed high vulnerabilities in BIG-IP source code, with a significant number of its largest customers having completed these updates with minimal disruption. Still, near-term sales cycle disruption could pressure results. Other risks include macroeconomic uncertainty, tariffs, supply chain constraints, competition, and customer acceptance of new products. The board also announced that CEO and President François Locoh-Donou will add the Chairman role effective March 2026, succeeding Al Higginson.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $810.1M | $780.4M | +3.8% | $746.7M | +8.5% |
| Gross profit | $666.2M | $631.7M | +5.5% | $603.0M | +10.5% |
| Gross margin | 82.2% | 81.0% | +1.3 pp | 80.8% | +1.5 pp |
| Research & development | $136.4M | $136.3M | +0.0% | $124.0M | +10.0% |
| Sales & marketing | $216.0M | $220.4M | -2.0% | $217.0M | -0.5% |
| General & administrative | $94.0M | $78.7M | +19.5% | $71.0M | +32.5% |
| Total operating expenses | $460.6M | $435.4M | +5.8% | $411.9M | +11.8% |
| Operating income (loss) | $205.7M | $196.3M | +4.8% | $191.0M | +7.7% |
| Operating margin | 25.4% | 25.2% | +0.2 pp | 25.6% | -0.2 pp |
| Net income (loss) | $190.5M | $189.9M | +0.3% | $165.3M | +15.2% |
| Net margin | 23.5% | 24.3% | -0.8 pp | 22.1% | +1.4 pp |
| Diluted EPS | $3.25 | $3.25 | ±$0.00 | $2.78 | +$0.47 |
Risks
The Cyber Incident involved a nation-state threat actor gaining long-term persistent access and exfiltrating files, including portions of BIG-IP source code and information about undisclosed vulnerabilities. MD&A states the incident has not had a material impact to date but anticipates near-term disruption to sales cycles with demand impacts more pronounced in early fiscal year 2026 and normalizing in the second half, plus a near-term impact on operating margin within fiscal year 2026.
As a result of the Cyber Incident, MD&A expects near-term disruption to sales cycles with demand impacts more pronounced in the early part of fiscal year 2026 and normalizing in the second half of fiscal year 2026. The company also expects to continue incurring additional professional services and other incident response expenses during fiscal year 2026.
Two worldwide distributors accounted for 33.3% of total net revenue for fiscal year 2025, with Customer B at 17.5% and Customer A at 15.8%. A substantial reduction or delay in sales to these distribution partners, if not replaced, could harm business, operating results and financial condition.
The company incorporates AI in products and operations and expects competition to increase as AI technologies are integrated into its markets. AI-related legal and regulatory uncertainty, including proposed legislation in jurisdictions such as the European Union, could entail significant costs or limit AI capabilities in offerings.
Success depends on attracting, engaging, retaining and integrating qualified executives and key employees, and the company has recently experienced changes in its senior leadership team. Competition for qualified personnel is intense in Silicon Valley and Seattle, and restructuring activities may lead to increased attrition among employees not directly affected.
Cloud-based and SaaS computing trends present competitive and execution risks, and costs to build and maintain infrastructure to support cloud and SaaS services may reduce the gross and operating margins previously achieved. The company also faces competition from large cloud providers and smaller born-in-the-cloud companies.
The company subcontracts manufacturing of its products to a single contract manufacturer and purchases several hardware components from single or limited sources. Loss of this single source of hardware assembly or interruptions in component supply could delay order fulfillment and harm business and results of operations.
Adverse macroeconomic conditions, including rising interest rates, inflationary pressures, tariffs, trade uncertainty and supply chain disruptions, could soften demand for products and services and increase operating costs. MD&A notes uncertain economic conditions, including inflation, tariffs and other duties, may adversely affect results.
Failure to adequately protect personal information could result in enforcement actions, fines, claims for damages and reputational harm. Evolving data protection and privacy laws, including changing definitions of personal data, may require significant management attention and financial resources and could reduce operating margins.
The company has offices and employees located in Israel, and political, economic and military conditions in the region directly affect operations. Many employees in Israel are obligated to perform annual reserve duty and may be called for active duty under emergency circumstances, which could disrupt operations and reduce capacity.
The company has initiated restructuring plans to align strategic and financial objectives, recording charges of $11.3 million and $14.3 million in the first and fourth quarters of fiscal 2025, respectively. Ability to achieve anticipated cost savings is subject to estimates and assumptions, and if incorrect or poorly implemented, business and results of operations could be adversely affected.
SaaS KPIs
All quarters →Summary, forecast, risks and KPIs are extracted from F5, INC.'s SEC filings for Q4 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 2, 2026.