Q4 2025 F5 Inc Earnings Call Transcript
Key Points
- F5 Inc (FFIV) achieved record fiscal-year 2025 results, surpassing $3 billion in revenue and $1 billion in operating profit for the first time.
- Revenue grew by 10%, driven by data center reinvestment, hybrid cloud adoption, and enterprise AI infrastructure demand.
- The company maintained strong profitability with gross margins of 83.6% and an operating margin of 35.2%, both showing year-over-year improvements.
- F5 Inc (FFIV) generated record free cash flow of $906 million, up 19% compared to the previous fiscal year.
- The company is seeing strong adoption of its distributed cloud services, with significant growth in SaaS customers and increased usage among its top 1,000 customers.
- F5 Inc (FFIV) experienced a security incident that may cause near-term disruption to sales cycles, potentially impacting revenue growth in the first half of fiscal 2026.
- The company anticipates some near-term disruption to demand due to the security breach, with potential impacts on new projects and footprint acquisition.
- Subscription-based software revenue declined by 3% year-over-year, reflecting a transition of legacy SaaS and managed service offerings.
- The guidance for fiscal 2026 revenue growth is conservative, ranging from 0% to 4%, due to anticipated near-term impacts from the security incident.
- The US Federal segment is expected to experience disruption in the first quarter of fiscal 2026 due to the government shutdown, impacting project approvals and revenue.
Good afternoon, and welcome to the F5 fourth-quarter fiscal 2025 financial results conference call. (Operator Instructions) Also, today's conference is being recorded. If anyone has any objections, please disconnect at this time.
I'll now turn the call over to Ms. Suzanne DuLong. Ma'am, you may begin.
Hello, and welcome. I'm Suzanne DuLong, F5's Vice President of Investor Relations. We're here with you today to discuss our fourth-quarter and fiscal-year 2025 financial results. Francois Locoh-Donou, F5's President and CEO; and Cooper Werner, F5's Executive Vice President and CFO, will be making prepared remarks on today's call. Other members of the F5 executive team are also here to answer questions during the Q&A session.
Today's press release is available on our website at f5.com, where an archived version of today's audio will be available through January 27, 2026. We will post the slide deck accompanying today's webcast to our IR site following this call. To access the
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