Core Viewpoint - A class action lawsuit has been filed against F5, Inc. for allegedly providing misleading statements regarding its security capabilities while concealing a significant security breach that impacted its business performance [6]. Group 1: Allegations and Impact - The lawsuit claims that F5 made overwhelmingly positive statements to investors while failing to disclose material adverse facts about its security capabilities, particularly regarding a significant security breach affecting key offerings [6]. - The security breach was revealed to have a substantial impact on F5's ability to capitalize on the security market, leading to significantly below-market growth expectations for fiscal 2026 [6]. - Following the announcement of the breach and its implications, F5's stock price dropped from $290.41 per share on October 27, 2025, to $258.76 per share on October 28, 2025, marking a decline of 10.9% in just two days [6]. Group 2: Legal Proceedings - Investors who purchased F5 securities between October 28, 2024, and October 27, 2025, are encouraged to apply to be appointed as lead plaintiff in the lawsuit by February 17, 2026 [6]. - The law firm Bragar Eagel & Squire, P.C. is representing the investors in this class action lawsuit, which has been filed in the United States District Court for the Western District of Washington [6].

Core Insights - The performance of F5 Networks' international operations is crucial for assessing its financial resilience and growth prospects [1][2] Group 1: International Revenue Performance - F5 Networks reported total revenue of $822.47 million for the quarter, reflecting a 7.3% increase year-over-year [4] - Revenue from the Asia Pacific region was $128.97 million, accounting for 15.7% of total revenue, which was a surprise decrease of -1.64% compared to analyst expectations [5] - The Europe, Middle East, and Africa region contributed $253.71 million, representing 30.9% of total revenue, with a positive surprise of +25.26% over analyst forecasts [7] - The "Other" category generated $26.59 million, making up 3.2% of total revenue, exceeding expectations by +17.2% [6] Group 2: Future Revenue Forecasts - Analysts project total revenue for the current fiscal quarter to reach $781.41 million, a 6.9% increase from the same quarter last year [8] - For the entire year, total revenue is forecasted at $3.24 billion, indicating a 5% improvement from the previous year [9] - Expected contributions from various regions for the year include Asia Pacific at 16.9% ($547.84 million), Other at 2.9% ($93.37 million), and Europe, Middle East, and Africa at 25.7% ($832.76 million) [9] Group 3: Market Dynamics and Stock Performance - The reliance on international markets presents both opportunities and challenges for F5 Networks, necessitating close monitoring of international revenue trends [10] - The company's stock has gained 0.7% over the past month, contrasting with a 1.5% decrease in the S&P 500 composite [14] - Over the past three months, F5's shares increased by 13.5%, while the S&P 500 saw a modest increase of 0.3% [14]

Core Viewpoint - Hagens Berman is notifying investors about a pending securities class action against F5, Inc. due to allegations of misleading the market regarding the security of its BIG-IP products, which resulted in significant financial losses for investors [1][2]. Group 1: Allegations and Impact - The lawsuit claims that F5 executives misled the market about the security of its core products, particularly after a sophisticated nation-state threat actor allegedly gained long-term access to F5's systems and exfiltrated sensitive source code [2][8]. - Following the revelation of the security breach in October 2025, F5's market value plummeted by over $2 billion, with stock prices declining nearly 14% over two trading days [2][8]. - F5's disappointing Q4 FY25 results, released on October 27, 2025, indicated a significant reduction in expected sales and renewals, leading to a further drop in stock price by $22.83 (-7%) the next day [8]. Group 2: Legal Proceedings and Deadlines - The lead plaintiff deadline for the class action is set for February 17, 2026, with the class period defined as October 28, 2024, to October 27, 2025 [5][7]. - The core allegation centers around the undisclosed breach of BIG-IP source code, which is critical to F5's revenue generation [5][8]. Group 3: Company Performance and Future Outlook - The lawsuit highlights that F5's claims of having a best-in-industry security platform were misleading, as the company was facing a significant security incident that jeopardized both client security and F5's future prospects [8]. - The ongoing remediation efforts and the impact of the security breach have led to elongated sales cycles and increased expenses, further complicating F5's financial outlook for fiscal 2026 [8].

Core Viewpoint - The complaint against F5 alleges violations of federal securities laws due to false or misleading statements regarding its security capabilities, particularly in light of a significant security breach affecting its key offerings [2] Group 1: Allegations and Legal Proceedings - The complaint claims that F5 and its executives failed to disclose the true state of the company's security capabilities, which were compromised by a significant security breach [2] - The breach is said to have a substantial impact on F5's ability to capitalize on the security market [2] - A court-appointed lead plaintiff has been designated, representing the largest financial interest in the relief sought by the class [3] Group 2: Call for Information - The law firm Faruqi & Faruqi encourages individuals with information regarding F5's conduct to come forward, including whistleblowers and former employees [4]

Core Viewpoint - Rosen Law Firm is reminding investors who purchased F5, Inc. securities during the specified Class Period of the upcoming lead plaintiff deadline for a class action lawsuit [1]. Group 1: Class Action Details - The Class Period for the F5 securities is from October 28, 2024, to October 27, 2025, inclusive [1]. - Investors who purchased F5 securities during this period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [1]. - A class action lawsuit has already been filed, and interested parties must move the Court to serve as lead plaintiff by February 17, 2026 [2]. Group 2: Law Firm Credentials - Rosen Law Firm specializes in securities class actions and has a strong track record, including the largest securities class action settlement against a Chinese company [3]. - The firm has been ranked No. 1 for the number of securities class action settlements in 2017 and has consistently ranked in the top 4 since 2013, recovering hundreds of millions for investors [3]. - In 2019, the firm secured over $438 million for investors, and its founding partner was recognized as a Titan of Plaintiffs' Bar by Law360 in 2020 [3]. Group 3: Case Allegations - The lawsuit alleges that F5's management misrepresented the company's revenue outlook and growth potential while downplaying risks associated with seasonality and macroeconomic factors [4]. - It is claimed that F5's optimistic statements about its security capabilities were misleading, as the company was facing a significant security incident that jeopardized its clients' security and future prospects [4]. - The lawsuit asserts that when the true information became public, investors suffered damages [4].

Core Viewpoint - A class action lawsuit has been filed against F5, Inc. for allegedly making misleading statements regarding its cybersecurity posture and failing to disclose a known security breach that impacted its core product [3][4][6]. Group 1: Allegations of Misrepresentation - The lawsuit claims that F5's SEC filings during the class period contained materially misleading statements about the company's cybersecurity risks [3]. - Specific allegations include that risk disclosures did not accurately reflect the actual cybersecurity incident and that management discussions provided an incomplete picture of business challenges [8]. - Forward-looking statements reportedly omitted known impediments to growth, and internal control disclosures did not reflect the security compromise [8]. Group 2: Knowledge and Motivation of Defendants - The complaint alleges that individual defendants had actual knowledge of the security breach and its potential business impact, fulfilling the scienter requirement under the Private Securities Litigation Reform Act (PSLRA) [4]. - Plaintiffs assert that the defendants were motivated to conceal the breach to protect the company's stock price and their own compensation linked to company performance [6]. Group 3: Legal Context and Next Steps - The PSLRA provides protections for investors harmed by alleged securities violations, and the regulatory framework surrounding SEC filings supports inferences about executives' knowledge when signing these documents [6]. - Motions for lead plaintiff must be filed with the court by February 17, 2026 [7].

Financial Performance - Total revenues for the three months ended December 31, 2025, were $822.465 million, an increase from $766.489 million in 2024[86]. - Basic net income per share increased to $3.12 for the three months ended December 31, 2025, compared to $2.85 for the same period in 2024[82]. - Systems revenue rose to $218.356 million in the three months ended December 31, 2025, compared to $159.708 million in 2024, while software revenue decreased to $191.927 million from $208.789 million[86]. - The Americas region generated $439.788 million in revenue for the three months ended December 31, 2025, up from $431.973 million in 2024[86]. Revenue Recognition and Deferred Revenue - As of December 31, 2025, the total non-cancelable remaining performance obligations under the Company's contracts with customers was $2.1 billion, with an expectation to recognize revenues on 60.8% of these obligations over the next 12 months[34]. - The balance of deferred revenue increased to $2.1 billion as of December 31, 2025, up from $1.8 billion at the beginning of the period, reflecting an addition of $493.8 million during the quarter[33]. Acquisitions and Goodwill - The acquisition of CalypsoAI Corp. was completed for $145.2 million in cash, enhancing the Company's capabilities in enterprise AI security[43]. - The goodwill related to the CalypsoAI acquisition was primarily due to expected synergies and was not deductible for tax purposes[44]. - The Company completed three additional acquisitions during fiscal 2025, resulting in $17.4 million of goodwill, although these acquisitions did not materially impact operating results[47]. Cash and Investments - Cash and cash equivalents decreased to $1.2 billion as of December 31, 2025, from $1.3 billion at the end of September 2025[48]. - The Company recognized interest income of $8.9 million for the three months ended December 31, 2025, compared to $10.3 million for the same period in 2024[39]. Inventory and Assets - Finished goods inventory increased to $35,302,000 from $26,933,000, while raw materials decreased to $44,593,000 from $50,296,000, resulting in total inventories of $79,895,000 compared to $77,229,000[49]. - Unbilled receivables rose to $512,595,000 from $498,288,000, and prepaid expenses increased to $145,388,000 from $86,346,000, leading to total other current assets of $742,163,000, up from $682,766,000[50]. - Total other assets decreased to $509,782,000 from $552,280,000, primarily due to a decline in intangible assets from $96,266,000 to $84,206,000[51]. Liabilities and Commitments - Accrued liabilities decreased to $305,188,000 from $315,383,000, with payroll and benefits liabilities dropping from $189,337,000 to $167,096,000[52]. - The Company’s total operating lease liabilities increased to $267,718,000 from $261,791,000, with a weighted average remaining lease term of 7.8 years and a discount rate of 3.33%[58]. - The Company has a commitment to purchase $10.0 million of component inventory annually under a four-year agreement, totaling $40.0 million, with no remaining commitments as of December 31, 2025[63]. Legal and Regulatory Matters - The Company is engaged in ongoing legal proceedings, including a putative class action complaint alleging false statements regarding cybersecurity capabilities[69]. - The Company is currently evaluating the impact of new accounting standards on its disclosures, including ASU 2023-09 and ASU 2024-03, which will affect future financial reporting[28][29]. Taxation - The effective tax rate for the three months ended December 31, 2025, was 19.2%, down from 20.4% for the same period in 2024, primarily due to changes in unrecognized tax benefits[9]. - As of December 31, 2025, the company had $80.9 million in unrecognized tax benefits, which may change within the next twelve months due to audit settlements[76]. Share Repurchase - The company repurchased 1,203 thousand shares at an average price of $249.33 per share, totaling $300.024 million during the three months ended December 31, 2025[80]. - The company has $622.4 million remaining authorized for share repurchases under its program as of December 31, 2025[80]. Cybersecurity Incident - The Company incurred $17.5 million in costs related to a Cyber Incident for the three months ended December 31, 2025[74].

Core Viewpoint - A class action lawsuit has been filed against F5, Inc. for allegedly misrepresenting its cybersecurity practices, particularly regarding its BIG-IP platform, which is marketed as providing "best-in-class" security capabilities [1] Group 1: Allegations of Cybersecurity Breach - F5 allegedly knew about a significant security breach affecting its BIG-IP product development environment as early as August 2025 but continued to market its products as secure [1] - The lawsuit claims that a nation-state threat actor gained "long-term, persistent" access to F5's systems, potentially compromising source code and vulnerability information [1] - The breach reportedly led to reduced sales and renewals, elongated sales cycles, and increased remediation expenses for F5 [1] Group 2: Impact on Business Operations - Following the public disclosure of the breach, F5 revised its fiscal 2026 revenue guidance to a growth range of 0-4%, significantly below prior expectations for mid-single digit expansion [1] - Customer trust allegedly deteriorated after the breach disclosure, impacting sales cycles [1] - Management continued to promote the "best-in-class" security capabilities during the period when the breach was known but not disclosed [1] Group 3: Importance of Cybersecurity Credibility - For enterprise software companies, security credibility is a fundamental business asset, and F5's representations about its security posture were material to investor decisions during the class period [1] - The case raises important questions about cybersecurity disclosure obligations in the enterprise software sector [1]

Core Viewpoint - Hagens Berman is notifying investors about a pending securities class action against F5, Inc. due to allegations of misleading statements regarding the security of its BIG-IP products, which resulted in significant financial losses for investors [1][2]. Summary by Relevant Sections Allegations and Investigation - The lawsuit claims that F5 executives misled the market about the security of its core products, particularly after a sophisticated nation-state threat actor allegedly accessed F5's systems and exfiltrated sensitive source code [2][8]. - The firm is investigating whether F5 delayed disclosing a material cybersecurity incident, which could have impacted investor decisions [3][8]. Financial Impact - Following the revelation of the security breach in October 2025, F5's market value dropped by over $2 billion, with stock prices declining nearly 14% over two trading days [2][8]. - F5's disappointing Q4 FY25 results, released on October 27, 2025, indicated a significant reduction in expected sales and renewals, leading to a further drop in stock price by $22.83 (-7%) the next day [8]. Class Action Details - The lead plaintiff deadline for the class action is set for February 17, 2026, covering the class period from October 28, 2024, to October 27, 2025 [4][7]. - The core allegation centers around the undisclosed breach of BIG-IP source code, which is critical to F5's revenue generation [4][8].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against F5, Inc. due to allegations of federal securities law violations related to misleading statements about the company's security capabilities and a significant security breach impacting its operations [5][6]. Group 1: Legal Investigation and Class Action - The firm is encouraging investors who suffered losses in F5 between October 28, 2024, and October 27, 2025, to discuss their legal rights and options [1]. - A federal securities class action has been filed against F5, with a deadline of February 17, 2026, for investors to seek the role of lead plaintiff [2]. Group 2: Allegations and Impact - The complaint alleges that F5 and its executives failed to disclose a significant security breach affecting key offerings, which would impact the company's ability to capitalize on the security market [5]. - Following the announcement of the breach and below-market growth expectations for fiscal 2026, F5's stock price fell from $290.41 per share on October 27, 2025, to $258.76 per share on October 29, 2025, marking a decline of 10.9% [6][7]. Group 3: Company Background - Faruqi & Faruqi, LLP is a national securities law firm with a history of recovering hundreds of millions of dollars for investors since its founding in 1995 [4].