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Mar 31

F5 Q2 2025 Earnings Report

F5 delivered strong Q2 results with solid revenue growth and higher profitability.

Key Takeaways

F5 achieved 7% revenue growth driven by strong systems demand and innovations in hybrid multicloud and AI security solutions.

Revenue grew 7% year-over-year to $731 million.

GAAP EPS reached $2.48; Non-GAAP EPS rose to $3.42.

Net income increased to $146 million, up from $119 million a year ago.

Systems revenue surged 27% year-over-year while software revenue remained flat.

Total Revenue
$731M
Previous year: $681M
+7.3%
EPS
$3.42
Previous year: $2.91
+17.5%
Gross Profit
$590M
Previous year: $540M
+9.3%
Cash and Equivalents
$1.26B
Previous year: $903M
+39.4%
Total Assets
$5.91B
Previous year: $5.38B
+9.7%

F5

F5

F5 Revenue by Segment

Forward Guidance

F5 expects continued growth driven by a strong subscription software renewal base and robust systems demand.

Positive Outlook

  • Projected Q3 revenue of $740M to $760M.
  • Midpoint of Q3 revenue guidance implies 8% annual growth.
  • Raised full-year 2025 revenue growth guidance to 6.5%-7.5%.
  • Raised non-GAAP EPS growth guidance to 8%-10%.
  • Expect strong contribution from subscription renewals and systems demand.

Challenges Ahead

  • Software revenue growth was flat in Q2.
  • Global economic uncertainty could impact IT spending.
  • Supply chain disruptions could still pose risks.
  • Competitive pressures in the cybersecurity and multicloud markets remain high.
  • Potential variability from future acquisitions or restructuring activities.

Revenue & Expenses

Visualization of income flow from segment revenue to net income