F5, Inc. has recently released its 10-Q report, providing a detailed overview of its financial performance and operational highlights. F5, Inc. is a global leader in application delivery and security solutions, offering multicloud application security and delivery solutions across various regions, including the United States, Europe, the Middle East, Africa, and the Asia Pacific region. The company's offerings include distributed cloud services, unified security, networking, and application management solutions, professional services, and partnerships with public cloud providers.
In the 10-Q report, F5, Inc. discussed various aspects of its financial condition and results of operations. The company reported that its net revenues for the three months ended December 31, 2025, amounted to $822.5 million, representing an increase from the comparable period in the prior year. The net product revenues for the same period increased by 11.3% to $410.3 million, while net service revenues increased by 3.6% to $412.2 million.
The cost of net product revenues for the three months ended December 31, 2025, increased primarily due to systems revenue growth, while the cost of net service revenues increased by 3.2% from the comparable period in the prior year. Additionally, operating expenses, including sales and marketing, research and development, and general and administrative expenses, also saw increases compared to the prior year.
The report also highlighted the impact of a cyber incident that occurred on October 15, 2025, in which a threat actor maintained long-term, persistent access to F5 systems and exfiltrated certain files. The company provided further information about this incident in the "Risk Factors" section of the report.
Furthermore, the 10-Q report discussed the critical accounting estimates made by the company, emphasizing the significant impact of revenue recognition on reported results. F5, Inc. also addressed recent accounting pronouncements and the potential impact of macroeconomic conditions on its overall performance.
The market has reacted to these announcements by moving the company's shares -2.11% to a price of $268.22. Check out the company's full 10-Q submission here.
