F5 Reports 7.3% Revenue Growth to $731.1 Million in Q2 Fiscal 2025

F5, Inc. reported a notable increase in financial performance for the second quarter of fiscal 2025, with total net revenues reaching $731.1 million, a 7.3% increase compared to $681.4 million in the same period last year. For the six months ending March 31, 2025, revenues rose to $1.5 billion, up 9.0% from $1.37 billion in the prior year. The growth was primarily driven by a 12.3% increase in product revenues, particularly from systems, and a 3.3% rise in service revenues, attributed to higher maintenance contract purchases. The company reported a net income of $145.5 million for the quarter, translating to $2.51 per share, compared to $119 million and $2.02 per share in the previous year.

In terms of operational metrics, F5's deferred revenue increased to $1.92 billion as of March 31, 2025, up from $1.80 billion at the end of September 2024. This growth reflects a rise in maintenance renewal contracts and subscription offerings. The company also reported a slight decrease in accounts receivable, which stood at $379.6 million, down from $389 million in the previous quarter. The total cash and cash equivalents increased to $1.26 billion, compared to $1.07 billion at the end of September 2024, indicating improved liquidity.

Strategically, F5 completed one acquisition during the second quarter of fiscal 2025, resulting in $7.5 million of goodwill. The company continues to focus on enhancing its product offerings, particularly in application delivery and security solutions, which are critical for its enterprise customers across various sectors. The company’s workforce saw a slight reduction, with total employee headcount at 4,963 as of March 31, 2025, down from 5,036 a year earlier, reflecting ongoing restructuring efforts aimed at optimizing resources.

F5's geographic revenue distribution showed that international sales accounted for 48.9% of total revenues in the latest quarter, up from 46.6% a year prior. The Americas region, particularly the United States, remains the largest market, contributing $396.1 million in revenues. The company’s focus on expanding its presence in the EMEA and APAC regions is evident, with revenues from these areas also showing growth.

Looking ahead, F5 anticipates continued revenue growth driven by increased demand for its cloud and security solutions. The company remains committed to investing in research and development to enhance its product offerings and maintain competitive advantage. Management expressed optimism about the ongoing stabilization of macroeconomic conditions, which they believe will support customer demand in the upcoming quarters.