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- **Record FY25 Performance**: $3.1 billion revenue (+10%), $906M free cash flow, 83.6% gross margin. Operating profit surpasses $1B.
- **AI-Driven Growth**: Systems revenue +42% YoY, 30+ AI use case wins, 900+ XOps adopters.
- **FY26 Outlook**: 0-4% revenue growth (near-term security disruption), $14.50-$15.50 EPS. Mid-single-digit growth resuming in H2.
- **Security Investment**: Doubled security spend in FY25; maintaining aggressive posture post-breach.
- **Customer Resilience**: 90%+ of customers updated BIG-IP within 2 weeks; minimal sensitive data impact.

**【CEO Summary Section】**
- **FY25 Financial Highlights**: Revenue reached $3.1 billion (+10% YoY), operating profit exceeded $1 billion, and free cash flow was $906 million (+19% YoY). Gross margin improved to 83.6%, up 80bps YoY.
- **Security Incident Response**: F5 prioritized containment, customer updates, and rapid software patch deployment. Over 800 customers completed updates within 6 hours, with minimal disruption. A North American tech provider updated 814 devices in 6 hours.
- **AI and Hybrid Cloud Growth**: Systems revenue grew 42% YoY, driven by AI readiness, data center modernization, and competitive takeouts. F5 secured 30+ AI use case wins, including AI data delivery, runtime security, and load balancing for AI factories.
- **Customer Expansion**: 900+ customers adopted F5 XOps capabilities (vs. 20 in FY24). 26% of top 1,000 customers now use F5 Distributed Cloud Services (up from 17% in FY24).

**【CFO Financial Commentary】**
- **Q4 FY25 Results**: Revenue $810 million (+8% YoY), Non-GAAP EPS $4.39 (+20% YoY). Gross margin 84.3% (up 138bps YoY). Free cash flow $906 million (+19% YoY).
- **FY26 Guidance**: Revenue growth 0-4% (mid-single-digit long-term trend). Non-GAAP EPS $14.50-$15.50. FY26 gross margin 83-83.5%, operating margin 33.5-34.5%.
- **Share Buybacks**: 55% of FY25 free cash flow ($1.36 billion) used for buybacks. Q4 repurchased $125 million in shares.
- **Security Investment**: FY25 security spend doubled; FY26 will maintain aggressive investment to enhance product and customer security.

**【Q&A Highlights】**
- **Security Impact on Sales**: Near-term disruption expected in Q1-Q2 FY26, with normalization in H2. 70%+ of revenue recurring, limiting impact. Customer focus on upgrades may delay new projects.
- **Systems Business Growth**: 2/3 of FY25 systems growth from tech refresh, 1/3 from AI readiness. Over half of installed base still on legacy systems, driving long-term refresh opportunity.
- **Software Trends**: Term-based subscriptions grew 18% YoY, SaaS ARR +21%. FY26 SaaS growth to resume post-legacy transition. XOps adoption accelerated (90% expansion rate among distributed cloud customers).
- **Customer Feedback**: 90%+ of customers completed BIG-IP updates within 2 weeks. Minimal sensitive data exfiltrated; most customers deemed data non-critical.
- **Competitive Position**: F5 ADSP uniquely combines high-performance traffic management with advanced security across hybrid/multi-cloud. 70% of top 1,000 customers now use multiple F5 product families.


F5, Inc. (FFIV) Q4 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

FFIV

FFIV fundamentals

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