F5, Inc. stock research
FY2025 Q1
F5 (FFIV) Gross Margin — Quarter Ended Dec 31, 2024
Revenue, gross profit, and gross margin all increased compared to both the prior quarter and the same quarter last year. Cost of revenue was lower than the prior quarter but higher than a year ago.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q1
Revenue, gross profit, and gross margin all increased compared to both the prior quarter and the same quarter last year. Cost of revenue was lower than the prior quarter but higher than a year ago.
- The strongest observable margin driver is the improvement in gross margin, which reached its highest level among the three periods shown, supported by higher revenue and lower cost of revenue relative to the prior quarter.
- Compared to the prior quarter, revenue and gross profit were higher, while cost of revenue was lower, leading to an improved gross margin. Versus the same quarter last year, all three metrics—revenue, gross profit, and cost of revenue—were higher, with gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.7%
Gross profit
$626.0M
Revenue
$766.5M
Cost of revenue
$140.5M
Quarter-over-quarter change
+0.9 pts
Year-over-year change
+1.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2024 | $681.4M | $540.2M | $141.1M | 79.3% |
| Jun 30, 2024 | $695.5M | $559.1M | $136.4M | 80.4% |
| Sep 30, 2024 | $746.7M | $603.0M | $143.7M | 80.8% |
| Dec 31, 2024 | $766.5M | $626.0M | $140.5M | 81.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+0.9 pts
Year-over-year change
Dec 31, 2023
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the improvement in gross margin, which reached its highest level among the three periods shown, supported by higher revenue and lower cost of revenue relative to the prior quarter.
Compared to the prior quarter, revenue and gross profit were higher, while cost of revenue was lower, leading to an improved gross margin. Versus the same quarter last year, all three metrics—revenue, gross profit, and cost of revenue—were higher, with gross margin also improved.
Monitor the trend in cost of revenue, which increased year over year despite a sequential decline.