AI English summary of an SEC filing — figures as filed
Fortinet FTNTFortinet said total revenue for the 3 months ended March 31, 2025 increased 14% to $1.54 billion, operating income increased 41% to $453.8 million, and operating margin was 29.5%, compared to 23.7% in the same period last year.
Key points
AI summaryFortinet said total revenue for the 3 months ended March 31, 2025 increased 14% to $1.54 billion, operating income increased 41% to $453.8 million, and operating margin was 29.5%, compared to 23.7% in the same period last year.
The company said total gross margin increased 3.5 percentage points to 81.0%, with product gross margin rising 12.0 percentage points and service gross margin declining 0.4 percentage points.
Fortinet cited a gain on bargain purchase of $39.9 million related to its acquisition of Linksys as a factor in the change in other income (expense)—net, and said its effective tax rate was 19%, compared to 11% in the same period last year, with a tax provision of $30.6 million related to the derecognition of deferred tax assets from the Linksys business combination included.
The company said cash flows from operating activities for the 3 months were $863.3 million, cash, cash equivalents and investments were $4.82 billion as of March 31, 2025, and the remaining authorization under its share repurchase program was approximately $2.03 billion, with no shares repurchased during the quarter.
Key figures
Quarter ended March 31, 2025
- Revenue
- $1.5B
- Operating income
- $454M
- Net income
- $433M
- EPS
- $0.56
- Gross profit
- $1.2B
- Operating cash flow
- $863M
From the XBRL financial data filed with the SEC · not processed by AI.
Summary
AI-writtenAnalysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.
Revenue, Operating Income and Operating Margin for Q1 2025
Fortinet said total revenue for the 3 months ended March 31, 2025 increased 14% to $1.54 billion, operating income increased 41% to $453.8 million, and operating margin was 29.5%, compared to 23.7% in the same period last year.
Source · Based on the MD&A text of the filing
Gross Margin Up 3.5 percentage points; Product and Service Margins
The company said total gross margin increased 3.5 percentage points to 81.0%, with product gross margin rising 12.0 percentage points and service gross margin declining 0.4 percentage points.
Source · Based on the MD&A text of the filing
Linksys Acquisition: Gain on Bargain Purchase and Income Tax Provision
Fortinet cited a gain on bargain purchase of $39.9 million related to its acquisition of Linksys as a factor in the change in other income (expense)—net, and said its effective tax rate was 19%, compared to 11% in the same period last year, with a tax provision of $30.6 million related to the derecognition of deferred tax assets from the Linksys business combination included.
Source · Based on the MD&A text of the filing
Operating Cash Flow, Liquidity and Share Repurchase Authorization
The company said cash flows from operating activities for the 3 months were $863.3 million, cash, cash equivalents and investments were $4.82 billion as of March 31, 2025, and the remaining authorization under its share repurchase program was approximately $2.03 billion, with no shares repurchased during the quarter.
Source · Based on the MD&A text of the filing
AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.
Original filing
The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.
Loading the filing text…