F5, Inc. stock research
FY2025 Q3
F5 (FFIV) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both increased, while cost of revenue rose at a slower pace, resulting in a higher gross margin compared to the prior quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q3
Revenue and gross profit both increased, while cost of revenue rose at a slower pace, resulting in a higher gross margin compared to the prior quarter and the same quarter last year.
- The primary observable driver is the faster growth of revenue relative to cost of revenue, which expanded gross profit and improved gross margin.
- Compared to the immediately preceding quarter, gross margin was higher as revenue increased more than cost of revenue. Versus the same quarter one year ago, gross margin also improved, supported by a similar revenue-cost dynamic.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.0%
Gross profit
$631.7M
Revenue
$780.4M
Cost of revenue
$148.6M
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+0.6 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 |
|---|---|---|---|---|
| Sep 30, 2024 | $746.7M | $603.0M | $143.7M | 80.8% |
| Dec 31, 2024 | $766.5M | $626.0M | $140.5M | 81.7% |
| Mar 31, 2025 | $731.1M | $590.2M | $141.0M | 80.7% |
| Jun 30, 2025 | $780.4M | $631.7M | $148.6M | 81.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.2 pts
Year-over-year change
Jun 30, 2024
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver is the faster growth of revenue relative to cost of revenue, which expanded gross profit and improved gross margin.
Compared to the immediately preceding quarter, gross margin was higher as revenue increased more than cost of revenue. Versus the same quarter one year ago, gross margin also improved, supported by a similar revenue-cost dynamic.
Monitor whether cost of revenue growth continues to lag revenue growth, as any shift could pressure gross margin.