Slide 1: Q1 2025 Financial Results
Q1 2025 Financial Results May 7, 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 second quarter and full year 2025 guidance, and future prospects and expectations are forward-looking statements that involve r
Slide 3: Industry categories based on 2024 billings from G2000 list
Industry categories are based on 2024 billings from the G2000 list. G2000 – based off the 2024 Forbes list; total number of accounts is 1,939 after factoring in M&A activity since publication. F100 – based off the 2024 Fortune list; total number of accounts is 100 after factoring in M&A activity sin
Slide 4: The Most Integrated Operating System
The Most Integrated Operating System Single OS with leadership in five network security Gartner Magic Quadrants © Fortinet Inc. All Rights Reserved. 4
Slide 5: Easy Adoption With the Same OS for NGFW, SD-WAN, & SASE
Easy Adoption With the Same OS for NGFW, SD-WAN, & SASE © Fortinet Inc. All Rights Reserved. 5
Slide 6: Leading SASE: Easy to Deploy, Unmatched ROI, & Unrivaled Security
Leading SASE: Easy to Deploy, Unmatched ROI, & Unrivaled Security. © Fortinet Inc. All Rights Reserved. 6
Slide 7: The Fortinet Journey: A Seamless Security Evolution
The Fortinet Journey: A Seamless Security Evolution With FortiGate NGFW, customers gain industry-leading protection and can seamlessly activate SD-WAN for optimized performance and extend to SASE for secure remote access. © Fortinet Inc. All Rights Reserved. 7
Slide 8: Fortinet's Growth in our Addressable Markets
Fortinet’s Growth in our Addressable Markets © Fortinet Inc. All Rights Reserved. 8
Slide 9: Unified SASE and Security Operations RPO, ARR, and Billings Growth
Unified SASE and Security Operations RPO, ARR, and Billings Growth Note: Unified SASE includes SD-WAN (based on a percentage of FortiGate billings), SSE and related solutions. ARR is defined as the annualized value of renewable / recurring customer agreements as of the measurement date, assuming any
Slide 10: Cross-selling SASE and SecOps to our Existing Customer Base
1 Cross-selling SASE and SecOps to our Existing Customer Base Note 1: Based on invoiced amounts for the quarter ended March 31, 2025. © Fortinet Inc. All Rights Reserved. 10
Slide 11: Leader in Network Firewall Security
Leader in Network Firewall Security 1 Note 1: PANW's calendar year product revenue is calculated from February 1st of the year shown and ending on January 31st of the following year. © Fortinet Inc. All Rights Reserved. 11
Slide 12: Secure Networking – Upgrade
Secure Networking – Upgrade 2026 Upgrade is Underway, Adding Product Revenue and Service Upsell/Expansion 1 Average Cumulative Closed Won Multiple after quarter of 1st Sale per Account by Market Segment. Data is based on Global Parent. Large enterprise is defined as companies with annual revenues of
Slide 13: Introducing the FortiGate 700G Series
Introducing the FortiGate 700G Series Best performance with Fortinet’s 7th-gen ASIC Security Processor 1 © Fortinet Inc. All Rights Reserved. 13
Slide 14: FortiAI Is Embedded Across the Security Fabric Platform
FortiAI Is Embedded Across the Security Fabric Platform 1 © Fortinet Inc. All Rights Reserved. 14
Slide 15: Q1 2025 Non-GAAP Results
Q1 2025 Non-GAAP Results Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Billings (1) $1.503B $1.541B $1.491B $1.865B $1.407B $1.541B $1.582B $2.003B $1.597B Y/Y % Change 29.6% 18.1% 5.7% 8.5% (6.4)% —% 6.1% 7.4% 13.5% Revenue $1.262B $1.293B $1.335B $1.415B $1.353B $1.434B $1.508B $1.660B $1.
Slide 16: Q1 2025 Non-GAAP Results
Q1 2025 Non-GAAP Results Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Gross Profit (1) $963.6M $1.01B $1.03B $1.11B $1.06B $1.17B $1.26B $1.36B $1.26B Gross Margin (1) 76.3% 77.9% 76.9% 78.5% 78.1% 81.5% 83.2% 81.9% 81.9% Operating Income (1)(2) $334.0M $348.1M $371.4M $453.5M $386.1M $503.
Slide 17: Quarterly Revenue by Geography
Quarterly Revenue by Geography Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 ($ in millions) $ % $ % $ % $ % $ % $ % $ % $ % $ % % is Y/Y % Change Americas $523.5 36.8% $537.0 29.8% $545.6 16.7% $569.1 9.2% $557.0 6.4% $595.3 10.9% $624.0 14.4% $665.9 17.0% $629.8 13.1% EMEA $478.2 38.2% $50
Slide 18: Statement of Cash Flows (Non-GAAP)
Statement of Cash Flows (Non-GAAP) ($ in millions) Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 GAAP Net Income $247.7 $266.3 $322.9 $310.9 $299.3 $379.8 $539.9 $526.2 $433.4 Depreciation, Amortization and Stock-Based Compensation 83.8 92.4 92.6 93.6 90.9 93.1 95.7 101.0 101.9 Accounts Rece
Slide 19: Quarterly Free Cash Flow and Adjusted Free Cash Flow Growth
Quarterly Free Cash Flow and Adjusted Free Cash Flow Growth $820.6 $839.0 ($ in millions) $662.1 $604.8 $530.8 $497.7 $458.5 (1) Free Cash Flow $782.8 $324.0 Real Estate Related Add Backs (2) $647.2 $608.5 $571.8 $438.3 $481.1 $167.7 $380.0 $318.9 $164.8 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'
Slide 20: '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 Fortinet defines the Rule of 45 as GAAP revenue Y/Y growth plus Non-GAAP Operating Margin © Fortinet Inc. All Rights Reserved. 20
Slide 21: Q2 and 2025 Guidance (Non-GAAP)
Q2 and 2025 Guidance (Non-GAAP) (1) Actual Q2'24 Q2'25E Actual 2024 2025E Billings (2) $1.541B $1.685 - 1.765B $6.533B $7.200 - 7.400B Y/Y Mid-Pt Growth 12.0% 11.8% Revenue (GAAP) $1.434B $1.590 - 1.650B $5.956B $6.650 - 6.850B Y/Y Mid-Pt Growth 12.9% 13.3% Service Revenue (GAAP) $982.4M $4.047B $4.
Slide 22: Additional Modeling Points
Additional Modeling Points Actual Q2'24 Actual 2024 Actual Q1'25 Q2’25E 2025E Cash Paid for Taxes $252M $579M $27M $230 - $255M $525 - $575M Infrastructure Investments $23M $379M $67M $180 - $200M $380 - $430M Non-GAAP Tax Rate 17% 17% 18% 18% 18% © Fortinet Inc. All Rights Reserved. 22
Slide 23: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ($ in millions) Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Total revenue $1,262.3 $1,292.8 $1,334.6 $1,415.1 $1,353.3 $1,434.3 $1,508.1 $1,660.1 $1,539.7 Add: Change in deferred revenue 240.6 247.7 156.7 449.7 54.9 106.3 115.5 349.2 57.5 Less: Deferred rev
Slide 24: GAAP to Non-GAAP Reconciliations (Continued)
GAAP to Non-GAAP Reconciliations (Continued) ($ in millions) Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 GAAP product gross profit $307.1 $298.1 $267.6 $290.9 $226.1 $296.8 $337.8 $396.0 $309.2 Stock-based compensation 0.4 0.5 0.4 0.5 0.5 0.4 0.5 0.5 0.5 Amortization of acquired intangible
Slide 25: GAAP to Non-GAAP Reconciliations (Continued)
GAAP to Non-GAAP Reconciliations (Continued) ($ in millions) Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 GAAP general and administrative expense $52.8 $49.9 $53.5 $55.1 $54.4 $56.6 $71.7 $55.1 $57.8 Stock-based compensation (8.2) (9.9) (9.9) (9.9) (9.8) (10.2) (10.7) (11.0) (10.4) Litigati
Slide 26: GAAP to Non-GAAP Reconciliations (Continued)
GAAP to Non-GAAP Reconciliations (Continued) ($ in millions) Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 GAAP provision for (benefit from) income taxes $21.3 $27.6 $(0.3) $95.2 $39.5 $76.5 $81.2 $86.7 $96.5 Tax adjustments related to the above 38.5 35.0 67.6 (13.0) 30.3 14.3 19.8 31.5 2.8
Slide 27: Fortinet
F=SRTINET.