F5, Inc. stock research
FY2025 Q4
F5 (FFIV) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved as cost of revenue declined relative to the prior quarter and remained stable compared to the year-ago quarter.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved as cost of revenue declined relative to the prior quarter and remained stable compared to the year-ago quarter.
- The current quarter's gross margin improved compared to both the prior quarter and the same quarter last year, with revenue increasing while cost of revenue declined sequentially and was nearly unchanged year-over-year.
- Sequentially, gross margin was higher due to revenue growth and a lower cost of revenue. Year-over-year, gross margin also improved as revenue increased more than the slight change in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
82.2%
Gross profit
$666.2M
Revenue
$810.1M
Cost of revenue
$143.9M
Quarter-over-quarter change
+1.3 pts
Year-over-year change
+1.5 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $810.1M | $666.2M | $143.9M | 82.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+1.3 pts
Year-over-year change
Sep 30, 2024
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The current quarter's gross margin improved compared to both the prior quarter and the same quarter last year, with revenue increasing while cost of revenue declined sequentially and was nearly unchanged year-over-year.
Sequentially, gross margin was higher due to revenue growth and a lower cost of revenue. Year-over-year, gross margin also improved as revenue increased more than the slight change in cost of revenue.
Monitor the trajectory of cost of revenue, particularly in light of recent acquisitions and facility expansion expenditures noted in the filing.