Slide 1: Q2 2025 Earnings Presentation
Q2 2025 Earnings Presentation August 6, 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 third quarter and full year 2025 guidance, and future prospects and expectations are forward-looking statements that involve ri
Slide 3: Q2'25 Key Financial Highlights
Q2’25 Key Financial Highlights 15% 21% 31% Y/Y Billings Y/Y Unified SASE Y/Y SecOps Growth Billings Growth Billings Growth 14% 51% 68% 33% XX% Y/Y Total Revenue Y/Y Growth in Value Operating Margin Growth FortiSASE Billings of Deals >$1M Unified SASE Billings (Non-GAAP) Growth Growth © Fortinet Inc.
Slide 4: New-Gen SASE Firewall – NGFW, SD-WAN, and SASE
New-Gen SASE Firewall – NGFW, SD-WAN, and SASE SD-WAN and SASE adoption is accelerating across enterprises. To keep pace, Fortinet enhances FortiOS annually, integrating advanced networking and security into a unified, more secure >50% FIREWALL Market Global and easy-to-adopt platform. This drives c
Slide 5: The Most Integrated Operating System
The Most Integrated Operating System Single OS with leadership in five network security Gartner Magic Quadrants Network SASE Secure Service Wired and SD-WAN Firewall Platforms Edge (SSE) Wireless LAN LEADER LEADER LEADER CHALLENGER LEADER No Customers’ Choice available for this market. See SD-WAN an
Slide 6: The New-Generation SASE Firewall for Cloud, Edge, & Everywhere in Between
The New-Generation SASE Firewall for Cloud, Edge, & Everywhere in Between AI-powered, FortiGuard fabric-wide AI threat protection FortiIdentity Single agent for Cloud Unified Endpoint endpoint visibility Agent and control Secure by design, built for FortiCloud collaboration FortiConnect Secure Forti
Slide 7: Investing in Owned Global Infrastructure
Investing in Owned Global Infrastructure ~5M 1,900 FortiCare Total sq ft Experts Cost savings 160+ Global Cloud Vancouver, Drive competitive Burnaby advantage Locations London Calgary UK Canada Toronto Ottawa Frankfurt Canada Germany Seattle Paris Chicago France US US Istanbul Denver New York Madrid
Slide 8: Secure by Default, Unified by Design
Secure by Default, Unified by Design Native security for the cloud-connected FortiIdentity FortiDrive workforce FortiIdentity is a scalable, cloud-delivered IAM solution with FortiPAM-as-a-Service to secure privileged access with continuous Zero Trust checks. FortiCloud FortiDrive, with secure stora
Slide 9: FortiAI is Embedded Across the Security Fabric Platform
FortiAI is Embedded Across the Security Fabric Platform FortiAI-Protect FortiAI-Assist FortiAI-SecureAI FortiGuard Security Bundles Add-on for FortiDLP, FortiSIEM, FortiNDR, FortiCNAPP, FortiManager, FortiAnalyzer, and Secure AI infrastructure at high (Enterprise, UTP) SOC Tools scale FortiAnalyzer
Slide 10: Strong Billings Growth Driven by Unified SASE & SecOps
Strong Billings Growth Driven by Unified SASE & SecOps +15% Y/Y +21% Y/Y +31% Y/Y Total Billings Growth Unified SASE Billings Growth SecOps Billings Growth 11% 24% of total billings $1,778 of total billings 10% 23% XX% of total billings $1,541 of total billings $ in Millions of total 10% billings of
Slide 11: Growth in Remaining Performance Obligations (RPO)
Growth in Remaining Performance Obligations (RPO) +12% Y/Y +17% Y/Y +22% Y/Y Total RPO Growth Unified SASE RPO Growth SecOps RPO Growth cRPO LT RPO $6,642 $1,488 $660 $5,916 +15% $1,271 $543 Y/Y $ in Millions cRPO Growth $2,992 $3,450 Q2'24 Q2'25 Q2'24 Q2'25 Q2'24 Q2'25 © Fortinet Inc. All Rights Re
Slide 12: Unified SASE & SecOps ARR Exceeded $1.6 Billion in Q2'25
Unified SASE & SecOps ARR Exceeded $1.6 Billion in Q2’25 +22% Y/Y +35% Y/Y Unified SASE ARR Growth SecOps ARR Growth $463 $1,150 $940 $344 $ in Millions Q2'24 Q2'25 Q2'24 Q2'25 © Fortinet Inc. All Rights Reserved. 12 Note: Unified SASE includes SD-WAN (based on a percentage of FortiGate billings), S
Slide 13: Strong Revenue Growth in Q2'25
Strong Revenue Growth in Q2’25 +14% Y/Y +13% Y/Y +14% Y/Y Total Revenue Growth Product Revenue Growth Service Revenue Growth Americas EMEA APAC Hardware Software $1,121 $1,630 $509 $452 $982 $1,434 $ in Millions Q2'24 Q2'25 Q2'24 Q2'25 Q2'24 Q2'25 Revenue growth was led by EMEA with Product revenue
Slide 14: Record Second Quarter Total Gross Margin
Record Second Quarter Total Gross Margin 81.6% 67.8% 87.8% Total Gross Margin Product Gross Margin Service Gross Margin 88.6% 87.8% 81.6% 67.8% 81.5% 66.0% Q2'24 Q2'25 Q2'24 Q2'25 Q2'24 Q2'25 Up 10 bps Y/Y, benefiting from product / Up 180 bps Y/Y as inventory related Service gross margin reflects i
Slide 15: Strong Second Quarter Operating Margin & Adj. Free Cash Flow
Strong Second Quarter Operating Margin & Adj. Free Cash Flow 33.1% $428M Operating Margin Adj. Free Cash Flow Real Estate Investments Free Cash Flow 35.1% $428 33.1% $324 $144 $ in Millions $319 $284 Q2'24 Q2'25 Q2'24 Q2'25 Y/Y decline reflects planned increased Realized an Adj. Free Cash Flow margi
Slide 16: '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% 47% >45% 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. 16 Fortinet defines the Rule of 45 as GAAP revenue
Slide 17: Q3'25 and Full Year 2025 Guidance (Non-GAAP)
Q3’25 and Full Year 2025 Guidance (Non-GAAP) (1) Q3'25E 2025E Billings (2) $1.760B – $1.840B $7.325B – $7.475B Y/Y Mid-Pt Growth 13.8% 13.3% Revenue (GAAP) $1.670B – $1.730B $6.675B – $6.825B Y/Y Mid-Pt Growth 12.7% 13.3% Service Revenue (GAAP) $4.550B – $4.650B Y/Y Mid-Pt Growth 13.7% Gross Margin
Slide 18: Additional Modeling Points
Additional Modeling Points Q3’25E 2025E Cash Paid for Income Taxes $60M - $90M $400M - $450M Infrastructure Investments $110M - $130M $380M - $430M Non-GAAP Tax Rate 18% 18% © Fortinet Inc. All Rights Reserved. 18
Slide 19: Appendix
Appendix
Slide 20: Reconciliation of Non-GAAP Results to GAAP Results
Reconciliation of Non-GAAP Results to GAAP Results ($ in millions) Q2'24 Q2’25 Total revenue $1,434.3 $1,630.0 Add: Change in deferred revenue 106.3 149.2 Less: Deferred revenue balance acquired in business combinations — (0.8) Total billings $1,540.6 $1,778.4 GAAP Cash Flow from Operations $342.0 $
Slide 21: Reconciliation of Non-GAAP Results to GAAP Results
Reconciliation of Non-GAAP Results to GAAP Results ($ in millions) Q2'24 Q2’25 GAAP product gross profit $296.8 $343.0 Stock‐based compensation 0.4 0.5 Amortization of acquired intangible assets 1.2 1.7 Non‐GAAP product gross profit $298.4 $345.2 Non‐GAAP product gross margin 66.0% 67.8% GAAP servic