Slide 1: Fortify Your Cybersecurity
Fortify Your Cybersecurity September 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement Information, statements and projections contained in these presentation slides concerning Fortinet’s business outlook, the third quarter and full year 2025 guidance, and future prospects and expectations are forward-looking statements that involve risks and uncertainties. These
Slide 3: Fortinet Overview
Fortinet Overview $60+ Billion Market Cap1 $6.0 Billion Nasdaq: FTNT 2024 Revenue Included in the S&P 500 and Nasdaq 100 $6.5 Billion 2024 Billings 12 Gartner Magic Quadrants 35% 20+ Years of 140+ Industry Analyst Report Inclusions 2024 Non-GAAP Operating Margin Strong Growth Leader in SD-WAN and Ne
Slide 4: >35% Increase in Earnings Per Share Due to Share Repurchases
>35% Increase in Earnings Per Share Due to Share Repurchases Returned over $8 billion to shareholders via share repurchases Robust Share Buyback Program Cash Paid for Stock Repurchases $ In millions $1,991 $1,801 $8.2B 289M $1,501 cash returned to shares repurchased shareholders $1,080 $742 >35% $1.
Slide 5: The Most Trusted U.S.-Based Cybersecurity Company
The Most Trusted U.S.-Based Cybersecurity Company Fortinet is ranked #7 in the Forbes Most Trusted Companies TOP TOP TOP TOP TOP TOP TOP 10/10 10/10 8/10 10/10 10/10 10/10 10/10 Business Financial Healthcare & Manufacturing Retail & Technology Telcos & Services Services Life Sciences Wholesale Carri
Slide 6: 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 7: Large Investment in Organic Innovation and AI
Large Investment in Organic Innovation and AI Innovation: $3.1B Since 2020 Innovation Across Pillars 550+ issued and pending AI-related patents 1,401 Global Patents M&A Secure 16% Networking AI R&D Hardware Unified 84% 3,400+ Security SASE Engineers Operations AI AI Software © Fortinet Inc. All Righ
Slide 8: Broadest, Most Integrated AI-Driven Cybersecurity Platform in the Industry
Broadest, Most Integrated AI-Driven Cybersecurity Platform in the Industry Protects the entire attack surface while integrating tightly into your current and future infrastructure Secure Networking Network Firewall Wireless and Wired LAN 5G OT Security NAC Unified SASE SD-WAN SSE Single-Vendor SASE
Slide 9: 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 10: The Only Purpose-built Proprietary ASIC
The Only Purpose-built Proprietary ASIC FortiASIC accelerates 14 FortiOS functions – supports 2x more applications than the previous generation Content Network Security Processor 9 Processor 7 Processor 5 14 apps SD-Branch Zero Trust OT Delivers low latency, All-in-one ASIC 5G Offload resource inten
Slide 11: Leader in Network Firewall Security
Leader in Network Firewall Security Convergence of Networking Firewall Units Shipped Product Revenue & Security Secure Networking > Traditional Market Share Leader Leader Networking Market by 2026 $49 $50 $2,000 50% $1,500 40% $ in Billions $29 30% $25 $1,000 $19 20% $500 $9 10% 0% $0 2020 2021 2022
Slide 12: 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. ROI 300% Your Journey FortiOS to Secure Reduction in threats Networking 99.9%
Slide 13: FortiAI Everywhere: 15+ Years of Innovation & 550+ AI Patents
FortiAI Everywhere: 15+ Years of Innovation & 550+ AI Patents 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 FortiAna
Slide 14: Fortinet’s Addressable Markets
Fortinet’s Addressable Markets Secure Unified AI-Driven Security Networking SASE Operations $66B 2025–2029 CAGR: +8% $78B 2025–2029 CAGR: +18% $165B 2025–2029 CAGR: +10% Converge security and AI-driven security operations Secure users anywhere and networking to protect every to detect, investigate,
Slide 15: Strong Growth in Unified SASE and Security Operations in 2024
Strong Growth in Unified SASE and Security Operations in 2024 RPO ARR Billings Unified Security Unified Security Unified Security SASE Operations SASE Operations SASE Operations +21% +19% +28% +32% +11% +13% $1,453 $1,119 $1,201 $875 $ in Millions $629 $527 $422 $320 Q4’23 Q4’24 Q4’23 Q4’24 Q4’23 Q4
Slide 16: Revenue Mix Shifts to Higher Margin Service Revenue
Revenue Mix Shifts to Higher Margin Service Revenue cRPO Grew 16% YoY Revenue RPO $6.42B $5.96B +12% Y/Y $5.75B +12% Y/Y +24% Y/Y $5.31B $4.65B +35% Y/Y $4.42B 68% $3.31B +16% Y/Y 64% $2.86B $2.36B 60% 2022 2023 2024 Q4'22 Q4'23 Q4'24 Service Revenue Product Revenue Current RPO Long-term RPO © Forti
Slide 17: Rich Cash Flow Margins Powering Innovation & S/H Returns
Rich Cash Flow Margins Powering Innovation & S/H Returns Contract Duration Remains Stable Total Billings Adj. Free Cash Flow $2.21B $6.40B $6.53B $1.86B $5.59B $1.64B 28 mos. 28 mos. 37% 37% 28 mos. 35% 2022 2023 2024 2022 2023 2024 Free Cash Flow Real Estate Adj. Free Cash Flow Margin Billings Avg
Slide 18: Significantly Expanded Gross & Operating Margins
Significantly Expanded Gross & Operating Margins Non-GAAP Gross Margin Non-GAAP Operating Margin 35.0% 81.3% 28.4% 77.4% 2023 2024 2023 2024 © Fortinet Inc. All Rights Reserved. 18 Non-GAAP gross margin and non-GAAP operating margin are non-GAAP financial measures. See Appendix for reconciliation of
Slide 19: Highly Diversified Business
Highly Diversified Business Across Customer Types, Geographies and Industries Customer Types Geographies Industries 8% 11% 9% 25% Other Other 21% 100+ Industries Industries Countries 9% 33% 40% 53% 29% 11% 11% 18% Large Enterprise Mid Enterprise 100+ Countries Canada Worldwide Gov't Fin Serv Small E
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 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. 20 Fortinet defines the Rule of 45 as GAAP revenue
Slide 21: Financial Targets
Financial Targets Long-term Target: Achieve the Rule of 45 (1) (2) (3) 2023 2024 2025E 3 – 5 Year Targets YoY Growth Billings 14% 2% 13% >12% CAGR Faster than market Revenue (GAAP) 20% 12% 13% >12% CAGR Faster than market Operating Margin 28% 35% 33% >30% Rule of 45 48 47 46 45+ Adjusted Free Cash F
Slide 22: Appendix
F:-SRTINET Appendix
Slide 23: Reconciliation of Non-GAAP Results to GAAP Results
Reconciliation of Non-GAAP Results to GAAP Results $ in millions 2022 2023 2024 Total revenue $4,417.4 $5,304.8 $5,955.8 Add change in deferred revenue 1,187.4 $1,094.7 625.9 Less deferred revenue balance acquired in business acquisition (10.8) - (49.2) Total billings $5,594.0 $6,399.5 $6,532.5 $ in
Slide 24: Reconciliation of Non-GAAP Results to GAAP Results
Reconciliation of Non-GAAP Results to GAAP Results $ in millions 2020 2021 2022 2023 2024 Q2’25 YTD GAAP research and development expense $341.4 $424.2 $512.4 $613.8 $716.8 $408.1 Stock‐based compensation (47.6) (56.7) (64.2) (76.8) (85.9) (48.1) Non‐GAAP research and development expense $293.8 $367
Slide 25: Reconciliation of Non-GAAP Results to GAAP Results
Reconciliation of Non-GAAP Results to GAAP Results $ in millions 2022 2023 2024 GAAP Cash Flow from Operations $1,730.6 $1,935.5 $2,258.1 Less: Purchases of Property and Equipment (281.2) (204.1) (378.9) Free Cash Flow $1,449.4 $1,731.4 $1,879.2 Add: Real Estate Related Add Backs 195.1 126.9 328.7 A
Slide 26: F=-RTINET
F=-RTINET