<div id="readability-page-1"><div>F5, INC., a global leader in application delivery and security solutions, has released its 2025 10-K report, showcasing robust financial performance, strategic acquisitions, and a focus on enhancing its cybersecurity measures. The report provides a comprehensive overview of the company's financial health, business operations, strategic initiatives, and the challenges it faces in a rapidly evolving market. Financial Highlights Total Net Revenues: $3,088.1 million, reflecting an increase from $2,816.1 million in 2024, driven by higher product and service sales.Gross Profit: $2,514.1 million, with a gross margin of 81.4%, up from 80.2% in 2024, indicating improved cost management and product mix.Income from Operations: $765.9 million, representing a 16.3% increase from $658.6 million in 2024, due to higher revenues and controlled operating expenses.Net Income: $692.4 million, up from $566.8 million in 2024, benefiting from increased operating income and a lower effective tax rate.Net Income Per Share — Diluted: $11.80, compared to $9.55 in 2024, reflecting the company's strong financial performance and share repurchase activities. Business Highlights Revenue Segments: F5's revenue is primarily derived from its application delivery and security solutions, including F5 BIG-IP software and systems, F5 NGINX software, and F5 Distributed Cloud Services. The company offers these solutions on a subscription and perpetual license basis, with SaaS and managed services also contributing to revenue.Geographical Performance: F5 operates globally, managing its business across three primary geographic regions: Americas, EMEA (Europe, the Middle East, and Africa), and APAC (Asia Pacific). The company conducts its business globally and manages its operations by geography, indicating a broad international presence.New Product Launches: In 2025, F5 introduced the F5 Application Delivery and Security Platform (ADSP), which aims to unify high-performance traffic management with advanced application and API security across hybrid and multicloud environments. This platform is designed to simplify hybrid multicloud complexity.Sales Units: The company reported an increase in customer demand and pricing increases on system offerings, contributing to a 31.3% increase in total systems revenue in fiscal year 2025 compared to 2024.Future Outlook: F5 anticipates near-term disruption to its sales cycles due to a cyber incident, with demand impacts more pronounced in the early part of fiscal year 2026 and normalizing in the second half. The company expects to continue incurring additional professional services and other expenses associated with incident response during fiscal year 2026.Operational Strategy: F5 continues to invest in expanding its SaaS-based F5 Distributed Cloud Services, which extend visibility and simplify management for F5 BIG-IP and F5 NGINX customers. The company is focused on optimizing application deployment across public, private, and edge clouds.Cybersecurity Measures: Following a cyber incident, F5 has prioritized delivering reliable software release updates to address vulnerabilities in its BIG-IP source code. The company is taking steps to bolster its security posture and protect its customers.Acquisitions: In September 2025, F5 completed the acquisition of CalypsoAI Corp., which is expected to integrate into the F5 ADSP to create a complete solution for securing AI inference. This acquisition aligns with F5's strategy to enhance its platform capabilities. Strategic Initiatives Acquisitions: In fiscal year 2025, the company completed the acquisition of CalypsoAI Corp for $145.2 million, enhancing its capabilities in AI security. Additionally, three other acquisitions were completed, contributing $17.4 million in goodwill. These acquisitions are part of the company's strategy to integrate advanced technologies and expand its product offerings.Capital Management: The company repurchased $502.1 million of its outstanding common stock, including the payment of related excise taxes, as part of its stock repurchase program. Cash and cash equivalents increased to $1,360.0 million, primarily due to $949.7 million generated from operating activities. The company also used $171.1 million for acquisitions and $43.3 million for capital expenditures. The Revolving Credit Facility of $350.0 million expired on January 31, 2025, with no outstanding borrowings at the time of expiration.Future Outlook: The company anticipates that net income from operations will continue to be the primary driver of cash flows. It plans to evaluate potential acquisitions and investments in strategic businesses, products, or technologies. The company expects near-term disruptions in sales cycles due to a recent cyber incident but anticipates normalization in the second half of fiscal year 2026. It will continue to incur expenses related to incident response and aims to bolster its security posture. Challenges and Risks Operational Risks: F5 Networks is exposed to significant operational risks, including security vulnerabilities in its IT infrastructure and multicloud application delivery products. The Cyber Incident, where a threat actor maintained persistent access to F5 systems, highlights the potential for reputational and financial harm. The company also faces risks related to the dependency on key personnel and the ability to hire and retain qualified staff, particularly in competitive markets like Silicon Valley and Seattle.Strategic Risks: The company must continuously innovate to maintain its competitive edge in application delivery and security markets. The rapid development and adoption of AI technologies present both opportunities and risks, including potential legal and regulatory challenges. F5's success depends on its ability to manage product life cycles and integrate new technologies effectively.Regulatory Risks: F5 is subject to various legal and regulatory risks, including data protection and privacy laws, export and import controls, and government procurement regulations. Changes in these regulations could adversely affect the company's operations and financial performance.Financial Risks: The company faces financial risks related to currency exchange rate fluctuations, which could impact its financial condition. Additionally, changes in financial accounting standards and tax liabilities could lead to unexpected revenue fluctuations and affect reported results.Management's Discussion and Analysis: Management acknowledges the challenges posed by the Cyber Incident and is focused on enhancing security measures and rebuilding trust with customers and partners. The company is investing in AI and SaaS-based solutions to drive growth and address evolving customer needs. F5 is also focused on expanding its SaaS-based F5 Distributed Cloud Services to capture growth in security and cloud services.Market Risks: F5 Networks is exposed to market risks, including fluctuations in demand for its products due to changing economic conditions and customer preferences. The company is also subject to risks associated with international operations, such as currency exchange rate fluctuations and geopolitical uncertainties, which could impact its financial performance.SEC Filing: F5, INC. [ FFIV ] - 10-K - Nov. 25, 2025</div></div>

FFIV

F5, INC. released its 2025 10-K report, highlighting strong financial performance with total net revenues of $3,088.1 million, up from $2,816.1 million in 2024. Key achievements include strategic acquisitions, new product launches, and enhanced cybersecurity measures. The company anticipates near-term sales disruptions due to a cyber incident but expects normalization in the second half of fiscal year 2026. F5 continues to invest in SaaS-based services and aims to bolster its security posture following the incident.

F5, INC. SEC 10-K Report