Filing Flows › Fortinet (FTNT) › Q1 2025
Fortinet (FTNT) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 8, 2025
Fortinet (FTNT) reported revenue of $1.5B for the first quarter 2025 (Q1 2025), +14% from a year earlier and -7% from the quarter before. Operating margin was 29.5%, net earnings $433M (28.1% of revenue).
Fortinet, Q1 2025: revenue $1.5B (+14% year over year), operating margin 29.5%, net earnings $433M, operating cash flow $863M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.5B | -7% | +14% |
| Gross profit | $1.2B | -7% | +19% |
| Operating profit | $454M | -21% | +41% |
| Net earnings | $433M | -18% | +45% |
| Operating cash flow | $863M | +81% | +4% |
| Free cash flow | $783M | — | — |
What changed
Revenue was $1.5B in Q1 2025, up 14% year over year and down 7% from the previous quarter. Security subscription was the largest line at 40% of revenue. Security subscription added $0.09B year over year (up 16%), 46% of the total change.
Gross margin was 81.0%, up 3.5 points from a year earlier. Operating profit was $0.45B, a 29.5% margin (up 5.7 points year over year). Of the extra revenue versus a year earlier, 71% reached operating profit, above the 24% margin then. Operating expenses grew 9% against revenue growth of 14%. Net earnings were $0.43B, up 45% year over year. The effective tax rate was 18.2%.
Operating cash flow was $0.86B (up 4% year over year), 199% of net earnings. Non-cash charges added back $0.04B of depreciation and amortization and $0.07B of share-based compensation. Working capital and other items added $0.33B. After purchases of property and equipment ($0.07B) and proceeds from intellectual property matter ($0.01B), free cash flow as the company reports it was $0.78B.
Questions
What was Fortinet's revenue in the first quarter 2025?
Fortinet (FTNT) reported revenue of $1.5B for the first quarter 2025 (Q1 2025), +14% from a year earlier and -7% from the quarter before.
Was Fortinet profitable in the first quarter 2025?
Operating profit was $454M (29.5% of revenue) and net earnings $433M.
Source: Fortinet 10-Q on SEC EDGAR.