Slide 1: Q3 2025 Earnings Presentation
Q3 2025 Earnings Presentation November 5, 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement Information, statements and projections contained in these presentation slides and related conference call concerning Fortinet’s business outlook, the fourth quarter and full year 2025 guidance, and future prospects and expectations are forward-looking statements that involve r
Slide 3: Q3'25 Key Financial Highlights
Q3’25 Key Financial Highlights 14% 14% 18% Y/Y Billings Y/Y Total Revenue Y/Y Product Revenue Growth Growth Growth 32% 37% 68% 37% XX% Y/Y Growth in Value Operating Margin Adjusted Free Cash of Deals >$1M FortiSASE Billings (Non-GAAP) Unified FlowSASE MarginBillings Growth Growth © Fortinet Inc. All
Slide 4: Leading in All Three Pillars with Continued Market Share Gains
Leading in All Three Pillars with Continued Market Share Gains Secure Unified AI-Driven Security Networking SASE Operations Firewall LAN WLAN SD-WAN SSE Cloud Security SOC Data Security CTEM Unified networking & security The broadest and most Converge security and providing consistent security, inte
Slide 5: Market Leader Across Major Security and Networking
Market Leader Across Major Security Network Security SD-WAN SASE and Networking Category Operational SecOps Technology Worldwide Scale, Top-Tier Public Security at Scale Built to Last Proven at Scale #1 in Innovation Support Company GAAP 15,000+ $7.2B Profitable 900K+ 1,360 Employees NASDAQ 100 Ever
Slide 6: The Only Leader Across Every Major Networking and Security Market
The Only Leader Across Every Major Networking and Security Market FortiOS Operating System Hybrid Mesh Firewall SD-WAN Wired & Wireless LAN SASE Platforms Gartner® Magic Quadrant for Hybrid Mesh Gartner ® Magic Quadrant for SD- WAN – Gartner, Magic Quadrant for Enterprise Wired Gartner, Magic Quadra
Slide 7: Leading the Convergence of Networking and Security
Leading the Convergence of Networking and Security Vendor Consolidation Drives Better Integration Networking Security Better Security Posture Firewall SSL Switch WiFi Lower Anti-Malware IPS TCO SD-WAN 5G URL Sandbox Simplified Filtering Operations Customer Benefits Over thirty networking and securit
Slide 8: The Most Deployed and Most Validated Secure SD-WAN Solution
The Most Deployed and Most Validated Secure SD-WAN Solution More Secure Reduce Simplified and Reliable Cost Operations Only vendor to run NGFW Only vendor with ASIC to Only vendor to provide How Fortinet & SD-WAN integrated natively on Accelerate Secure SD-WAN centralized policy management Delivers
Slide 9: One of the Fastest Growing SASE Leaders
One of the Fastest Growing SASE Leaders Proven Easy to Better Security Adopt Value The broadest SASE solution Organically developed Single 170+ global cloud locations for How Fortinet with validated security efficacy OS across Firewall, SD-WAN, resilient user experience Delivers powered by FortiGuar
Slide 10: New-Gen Converged SASE Firewall: NGFW, SD-WAN, and SASE
New-Gen Converged SASE Firewall: NGFW, SD-WAN, and SASE Enable SD-WAN instantly at zero cost >50% Market Global Extend to SASE at <1/3 market cost FIREWALL Firewall Units Shipped SD-WAN >70% Large Enterprise Penetration 15% Large Enterprise SASE Penetration 2000 2002 2005 2010 2015 2020 2022 2025 St
Slide 11: Broadest AI-Driven Security Operations
Broadest AI-Driven Security Operations Delivers deep integrations for Built on owned infrastructure Improve productivity with faster response to deliver better value faster detection FortiAI Endpoint Data Security Security Network Exposure Detection Management SOC Platform (SIEM, SOAR) Cloud Mail Se
Slide 12: FortiAI: 15+ Years of Innovation, Powering 20+ Solutions
FortiAI: 15+ Years of Innovation, Powering 20+ Solutions #1 patent innovator in AI and security with 500+ patents AI for Security Security for AI FortiAI-Protect FortiAI-Assist FortiAI-SecureAI Secure AI Usage AI Assisted Operations Secure LLM, AI systems GenAI App Zero-day AI-Powered LAN, SD-WAN Th
Slide 13: Protect Your Most Demanding Workloads In Enterprise & AI Data Centers
Protect Your Most Demanding Workloads In Enterprise & AI Data Centers Fortinet Multi-Layered Implementation Cloud Developers FortiGate FortiPAM FortiWeb FortiDLP FortiAI 3800G Models Data Center Identity API Data LLM Customer Data Users Firewall Management Protection Security Security IP New! 400Gbp
Slide 14: Owned Global Cloud Delivers Control, Performance, and Cost Benefits
Owned Global Cloud Delivers Control, Performance, and Cost Benefits Owned Infrastructure 5M+ Total sq ft Calgary London Vancouver, Canada UK Burnaby Toronto Ottawa Frankfurt Canada Germany Lower TCO Seattle Chicago Paris US France US Istanbul New York Madrid Denver Turkey Seoul Sunnyvale, Cost savi
Slide 15: Strong Billings Growth Driven by Unified SASE & SecOps
Strong Billings Growth Driven by Unified SASE & SecOps +14% Y/Y +19% Y/Y +33% Y/Y Total Billings Growth Unified SASE Billings Growth SecOps Billings Growth 26% 11% of total billings of total billings 25% $1,808 of total billings 9% XX% $1,582 of total billings $ in Millions of total 10% billings of
Slide 16: Strong Growth in Unified SASE & SecOps ARR
Strong Growth in Unified SASE & SecOps ARR +13% Y/Y +25% Y/Y Unified SASE ARR Growth SecOps ARR Growth $1,223 $472 $1,078 $379 Q3'24 Q3'25 Q3'24 Q3'25 © Fortinet Inc. All Rights Reserved. 16 Note: Annual Recurring Revenue (ARR) is defined as the annualized value of renewable / recurring customer agr
Slide 17: Strong Revenue Growth in Q3'25
Strong Revenue Growth in Q3’25 +14% Y/Y +18% Y/Y +13% Y/Y Total Revenue Growth Product Revenue Growth Service Revenue Growth Americas EMEA APAC Hardware Software $1,166 $559 $1,725 $1,034 $1,508 $474 $ in Millions Q3'24 Q3'25 Q3'24 Q3'25 Q3'24 Q3'25 Revenue growth was led by EMEA and Product revenue
Slide 18: Record Third Quarter Operating Margin & Adj. Free Cash Flow
Record Third Quarter Operating Margin & Adj. Free Cash Flow 81.6% 36.9% $646M Total Gross Margin Operating Margin Adj. Free Cash Flow Real Estate Investments Free Cash Flow 36.1% 36.9% $646 83.2% $605 81.6% $ in Millions $572 $568 Q3'24 Q3'25 Q3'24 Q3'25 Q3'24 Q3'25 Total gross margin reflects lower
Slide 19: Rule of 45 Exceeded 5 Years in a Row
‘Rule of 45’ — Exceeded 5 Years in a Row Expect to Achieve the ‘Rule of 45’ in 2025 60% 55% 48% 47% >45% 47% Rule of 45 35% 27% 26% 27% 28% 2020 2021 2022 2023 2024 2025E Non-GAAP Operating Margin Revenue Growth © Fortinet Inc. All Rights Reserved. 19 Fortinet defines the Rule of 45 as GAAP revenue
Slide 20: Q4'25 and Full Year 2025 Guidance
Q4’25 and Full Year 2025 Guidance (Non-GAAP) (1) Q4'25E 2025E Billings (2) $2.185B – $2.285B $7.370B – $7.470B Y/Y Mid-Pt Growth 11.6% 13.6% Revenue (GAAP) $1.825B – $1.885B $6.720B – $6.780B Y/Y Mid-Pt Growth 11.7% 13.3% Service Revenue (GAAP) $4.575B – $4.595B Y/Y Mid-Pt Growth 13.3% Gross Margin
Slide 21: Additional Modeling Points
Additional Modeling Points Q4’25E 2025E Cash Paid for Income Taxes $66M - $116M $400M - $450M Infrastructure Investments $60M - $110M $380M - $430M Non-GAAP Tax Rate 18% 18% © Fortinet Inc. All Rights Reserved. 21
Slide 22: Appendix
Appendix
Slide 23: Reconciliation of Non-GAAP Results to GAAP Results
Reconciliation of Non-GAAP Results to GAAP Results ($ in millions) Q3'24 Q3’25 Total revenue $1,508.1 $1,724.9 Add: Change in deferred revenue 115.5 82.8 Less: Deferred revenue balance acquired in business combinations (41.4) – Total billings $1,582.2 $1,807.7 GAAP Cash Flow from Operations $608.1 $
Slide 24: Reconciliation of Non-GAAP Results to GAAP Results
Reconciliation of Non-GAAP Results to GAAP Results ($ in millions) Q3'24 Q3’25 GAAP product gross profit $337.8 $378.6 Stock‐based compensation 0.5 0.6 Amortization of acquired intangible assets 1.1 1.4 Non‐GAAP product gross profit $339.4 $380.6 Non‐GAAP product gross margin 71.6% 68.0% GAAP servic