Slides
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Q3 2025 Earnings Presentation November 5, 2025
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2© Fortinet Inc. All Rights Reserved. Safe Harbor Statement Information, statements and projections contained in these presentation slides and related conference call concerning Fortinet’s business outlook, the fourth quarter and full year 2025 guidance, and future prospects and expectations are forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding any indications related to future growth and market share gains, our strategy going forward, and guidance and expectations around future financial results, including guidance and expectations for the fourth quarter and full year 2025, and any statements regarding our market opportunity and market size, and business momentum. Although we attempt to be accurate in making forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based such that actual results are materially different from our forward-looking statements in these presentation slides. Important factors that could cause results to differ materially from the statements herein include the following: general economic risks, including those caused by economic challenges, a possible economic downturn or recession and the effects of inflation or stagflation, rising interest rates or reduced information technology spending; supply chain challenges; negative impacts from the ongoing war in Ukraine and its related macroeconomic effects and our decision to reduce operations in Russia; competitiveness in the security market; the dynamic nature of the security market and its products and services; specific economic risks worldwide and in different geographies, and among different customer segments; uncertainty regarding demand and increased business and renewals from existing customers; sales execution risks, including risks in connection with the timing and completion of large strategic deals; uncertainties around continued success in sales growth and market share gains; uncertainties in market opportunities and the market size; actual or perceived vulnerabilities in our supply chain, products or services, and any actual or perceived breach of our network or our customers’ networks; longer sales cycles, particularly for larger enterprise, service providers, government and other large organization customers; the effectiveness of our salesforce and failure to convert sales pipeline into final sales; risks associated with successful implementation of multiple integrated software products andother product functionality risks; risks associated with integrating acquisitions and changes in circumstances and plans associated therewith, including, among other risks, changes in plans related to product and services integrations, product and services plans and sales strategies; sales and marketing execution risks; execution risks around new product development and introductions and innovation; litigation and disputes and the potential cost, distraction and damage to salesand reputation caused thereby or by other factors; cybersecurity threats, breaches and other disruptions; market acceptance of new products and services; the ability to attract and retain personnel; changes in strategy; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; technological changes that make our products and services less competitive, including advances in artificial intelligence; risks associatedwith the adoption of, and demand for, our products and services in general and by specific customer segments, including those caused by competition and pricing pressure; excess product inventory for any reason, including those caused by the effects of increased inflation and interest rates in certain geographies and the war in Ukraine; risks associated with business disruption caused by natural disasters and health emergencies such as earthquakes, fires, power outages, typhoons, floods, health epidemics and viruses, and by manmade events such as civil unrest, labor disruption, international trade disputes, international conflicts such as the war in Ukraine or tensions between China and Taiwan, terrorism, wars, and critical infrastructure attacks; tariffs, trade disputes and other trade barriers, andnegative impact on sales based on geo- political dynamics and disputes and protectionist policies, including the impact of any future shutdowns of the U.S. government; and the other risk factors set forth from time to time in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission (“SEC”), copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of these presentation slides, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events.
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3© Fortinet Inc. All Rights Reserved. Q3’25 Key Financial Highlights Y/Y Billings Growth 14% 68% FortiSASE Billings Growth XX% Unified SASE Billings Growth Y/Y Total Revenue Growth 14% Y/Y Product Revenue Growth 18% Y/Y Growth in Value of Deals >$1M 32% Operating Margin (Non-GAAP) 37% Adjusted Free Cash Flow Margin 37%
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4 © Fortinet Inc. All Rights Reserved. Unified SASE AI-Driven Security Operations SD-WAN SSE Cloud Security Data Security CTEMSOC Secure Networking Converge security and networking to protect every edge and device Firewall LAN WLAN Unified networking & security providing consistent security, flexible deployment, and lower TCO The broadest and most integrated security operations platform $66B ‘25-’29 CAGR: +8% $78B ‘25-’29 CAGR: +18% $165B ‘25-’29 CAGR: +10% Leading in All Three Pillars with Continued Market Share Gains Note: 2029 total addressable markets shown. Gartner, June 2025 - Forecast: Enterprise Network Equipment, Worldwide, 2023-2029, 2Q25 Update Gartner, June 2025 - Forecast: Information Security and Risk Management, Worldwide, 2023-2029, 2Q25 Update +10% Q3’25 Billings Growth +19% Q3’25 Billings Growth +33% Q3’25 Billings Growth
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5 © Fortinet Inc. All Rights Reserved. Market Leader Across Major Security and Networking Category Network Security Operational Technology SecOps Most Discerning Customers 10/10 Most Validated Security 890K+ Lifetime customers 2024 Billings $6.53B+ SD-WAN SASE Security at Scale Built to Last Proven at Scale #1 in Innovation Worldwide Scale, Support $7.2B TTM Billings 900K+ Lifetime Customers 1,360 Patents GAAP Profitable Every Year Since 2009 IPO 15,000+ Employees 100,000+ Partners NASDAQ 100 S&P 500 As of Q3’25 Top-Tier Public Company
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6 © Fortinet Inc. All Rights Reserved. The Only Leader Across Every Major Networking and Security Market Gartner ® Magic Quadrant for SD- WAN – Published 27 September 2023 – Jonathan Forest, Naresh Singh, Andrew Lerner, Karen Brown Gartner, Magic Quadrant for Enterprise Wired and Wireless LAN Infrastructure, By Mike Leibovitz, Christian Canales, Nauman Raja, Tim Zimmerman, 25 June 2025. Gartner, Magic Quadrant for SASE Platforms, Jonathan Forest, Neil MacDonald, Dale Koeppen, 9 July 2025. FortiOS Operating System Wired & Wireless LAN SASE PlatformsSD-WAN Gartner® Magic Quadrant for Hybrid Mesh Firewall – Published August 25 2025 – Rajpreet Kaur, Adam Hils, Charanpal Bhogal, Esraa ElTahawy, Feng Gao, Tiffany Taylor Hybrid Mesh Firewall
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7 © Fortinet Inc. All Rights Reserved. Leading the Convergence of Networking and Security Simplified Operations Lower TCO Better Security Posture Networking Security Over thirty networking and security features Switch WiFi SD-WAN 5G Sandbox IPSAnti-Malware URL Filtering Firewall SSL Vendor Consolidation Drives Better Integration Customer Benefits
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8 © Fortinet Inc. All Rights Reserved. ROI 300% Reduction in network disruption 65% Increase productivity of security & network teams 50% Reduce Cost More Secure and Reliable Simplified Operations Only vendor to run NGFW & SD-WAN integrated natively on a single OS & one appliance Only vendor with ASIC to Accelerate Secure SD-WAN functions with no license Network Stability Vendor Consolidation Better performance Lowest power consumption Lower TCO Only vendor to provide centralized policy management and autonomous architecture Single Pane Management Day Zero Provisioning at Scale High Availability How Fortinet Delivers Proven Results Customer Benefit The Most Deployed and Most Validated Secure SD-WAN Solution
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9 © Fortinet Inc. All Rights Reserved. One of the Fastest Growing SASE Leaders Better Security Posture Consistent Security on-prem and cloud 3 to 1 Vendor consolidation 1/3 the Cost Easy to Adopt Proven Security Better Value Organically developed Single OS across Firewall, SD-WAN, & SASE Expand from SD-WAN in minutes Flexible Connectivity with Hardware and Software Agent The broadest SASE solution with validated security efficacy powered by FortiGuard Labs Improved Time to remediate 170+ global cloud locations for resilient user experience Lower TCO Highest availability Data Sovereignty How Fortinet Delivers Proven Results Customer Benefit
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10 © Fortinet Inc. All Rights Reserved. New-Gen Converged SASE Firewall: NGFW, SD-WAN, and SASE Enable SD-WAN instantly at zero cost Extend to SASE at <1/3 market cost >50% Market Global Firewall Units Shipped FIREWALL SD-WAN SASE 15% Large Enterprise Penetration >70% Large Enterprise Penetration Stateful Firewall URL Filtering IPS IPsec NGFW SSL Sandbox OT Security SD-WAN Mobile Malware CASB ZTNA 5G SWG DLP RBI UZTNA DEM Sovereign SASEUTM Anti-Malware 2000 20252020201520102005 20222002
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11 © Fortinet Inc. All Rights Reserved. Broadest AI-Driven Security Operations FortiAI SOC Platform (SIEM, SOAR) Exposure Management Mail Security Data Security Endpoint Security Network Detection Cloud Security Delivers deep integrations for faster response Built on owned infrastructure to deliver better value Improve productivity with faster detection
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12 © Fortinet Inc. All Rights Reserved. #1 patent innovator in AI and security with 500+ patents FortiAI: 15+ Years of Innovation, Powering 20+ Solutions FortiAI is embedded into the Security Fabric AI for Security FortiAI-SecureAI Secure LLM, AI systems Security for AI FortiAI-Assist AI Assisted Operations FortiAI-Protect Secure AI Usage Auto Configuration LAN, SD-WAN Optimization Policy Creation Incident Response Optimization Automated Alert Triage Threat Hunting Zero-day Protection AI App Control AI-Powered Security Services GenAI App Detection Emerging AI Threat Protection Threat Detection and Response LLM Data Privacy ZTNA CNAPP API Protection AI Web App Protection LLM Recon
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13© Fortinet Inc. All Rights Reserved. Protect Your Most Demanding Workloads In Enterprise & AI Data Centers Data Center Firewall Identity Management API Protection Data Security LLM Security Developers Users Fortinet Multi-Layered Implementation Cloud Models Customer Data IP New! FortiAI-SecureAI Gateway to optimize and secure LLM workloads New! 400Gbps FortiGate 69% power savings, <2 μs Latency Integrated Security Fabric for multi-layered, comprehensive protection FortiGate 3800G FortiPAM FortiWeb FortiDLP FortiAI
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14 © Fortinet Inc. All Rights Reserved. Sunnyvale, San Jose US Sao Paulo Brazil Ashburn Bangalore, Pune India Tokyo Osaka Japan London UKVancouver, Burnaby Dallas, Plano US Paris France Sydney Australia Hong Kong Singapore Singapore Dubai UAE Johannesburg South Africa Taipei Taiwan Seoul S. Korea Auckland New Zealand Istanbul TurkeyMadrid Spain Miami US Atlanta US Toronto Canada Calgary Canada Chicago US Denver US Seattle US Ottawa Sophia France Frankfurt Germany New York Lagos Nigeria Mombasa Kenya Bogota Colombia Rio De Janeiro Brazil Santiago Chile Buenos Aires Argentina Queretaro Mexico Delhi India Tel Aviv Israel Muscat Oman Dammam Saudi Arabia Perth Australia Brisbane Australia Melbourne Australia Canberra Australia Fortinet Data Center / POP Co-location Public Cloud (GCP, AWS) Owned Global Cloud Delivers Control, Performance, and Cost Benefits Cost savings for customers 5M+ Total sq ft 170+ global cloud locations. Flexibility to choose cloud provider . 99.999% FortiSASE SLA Target Owned Infrastructure High Availability Scale Lower TCO
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15© Fortinet Inc. All Rights Reserved. $1,582 $1,808 Q3'24 Q3'25 +14% Y/Y Total Billings Growth Strong Billings Growth Driven by Unified SASE & SecOps +19% Y/Y Unified SASE Billings Growth +33% Y/Y SecOps Billings Growth $ in Millions XX% of total billings10% of total billings Q3'24 Q3'25Q3'24 Q3'25 25% of total billings 26% of total billings 9% of total billings 11% of total billings Note: The Unified SASE and SecOps pillars have been updated to include a product realignment.
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16© Fortinet Inc. All Rights Reserved. Strong Growth in Unified SASE & SecOps ARR$ in Millions $1,078 $1,223 Q3'24 Q3'25 +13% Y/Y Unified SASE ARR Growth $379 $472 Q3'24 Q3'25 +25% Y/Y SecOps ARR Growth Note: Annual Recurring Revenue (ARR) is defined as the annualized value of renewable / recurring customer agreements as of the measurement date, assuming any contract that expires during the next 12 months is renewed at its existing value.
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17© Fortinet Inc. All Rights Reserved. +14% Y/Y Total Revenue Growth +13% Y/Y Service Revenue Growth Security subscriptions and technical support & other both grew 13% Y/Y. Strong Revenue Growth in Q3’25 $ in Millions $1,508 $1,725 Q3'24 Q3'25 $1,034 $1,166 Q3'24 Q3'25 Revenue growth was led by EMEA and APAC with growth of 19% Y/Y and 16% Y/Y, respectively. Americas EMEA APAC Q3'24 Q3'25 +18% Y/Y Product Revenue Growth Product revenue benefited from strong performance in multi-product deals and OT security. FortiGates, networking equipment, and software all delivered strong double- digit growth. Hardware Software $474 $559
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18© Fortinet Inc. All Rights Reserved. Record Third Quarter Operating Margin & Adj. Free Cash Flow 83.2% 81.6% Q3'24 Q3'25 81.6% Total Gross Margin Total gross margin reflects lower product gross margin and a mix shift towards product revenue. Note: All numbers are presented on a non-GAAP basis. Refer to the appendix of this presentation for a reconciliation of these Non-GAAP financial measures. 36.1% 36.9% Q3'24 Q3'25 36.9% Operating Margin Reflects operational efficiencies in the business and strong cost management. $572 $568 Q3'24 Q3'25 $646M Adj. Free Cash Flow Realized an Adj. Free Cash Flow margin of 37%. Real Estate Investments Free Cash Flow $605 $646 $ in Millions
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19© Fortinet Inc. All Rights Reserved. 27% 26% 27% 28% 35% 47% 55% 60% 48% 47% >45% 2020 2021 2022 2023 2024 2025E Non-GAAP Operating Margin Revenue Growth ‘Rule of 45’ — Exceeded 5 Years in a Row Rule of 45 Fortinet defines the Rule of 45 as GAAP revenue Y/Y growth plus Non-GAAP Operating Margin. Expect to Achieve the ‘Rule of 45’ in 2025
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20© Fortinet Inc. All Rights Reserved. (1) Guidance for non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets, settlements of litigation related matters, gain on IP matters, gain on bargain purchase, gain from an equity method investment and a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We have not reconciled our guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort. (2) Billings is a non-GAAP measure that we define as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period less any deferred revenue balances acquired from business combination(s) during the period. (3) Excludes stock-based compensation and amortization of acquired intangible assets. (4) Excludes charges in connection with litigation settlements and gains on IP matters. (5) Assumes an effective tax rate of 18% for 2025. We expect cash paid for income taxes to be within the range of $400 million to $450 million for 2025. (6) Excludes gains on bargain purchases related to our acquisitions of Lacework and Linksys, a gain from equity method investment related to our Linksys acquisition and a non-cash charge of the impairment recognized on our equity method investment in Linksys. Q4’25 and Full Year 2025 Guidance (Non-GAAP) (1) Q4'25E 2025E Billings (2) $2.185B – $2.285B $7.370B – $7.470B Y/Y Mid-Pt Growth 11.6% 13.6% Revenue (GAAP) $1.825B – $1.885B $6.720B – $6.780B Y/Y Mid-Pt Growth 11.7% 13.3% Service Revenue (GAAP) $4.575B – $4.595B Y/Y Mid-Pt Growth 13.3% Gross Margin (%) (3) 79.0% – 80.0% 80.25% – 80.75% Operating Margin (%) (3)(4) 34.5% – 35.5% 34.5% – 35.0% Net Income per Share (3)(4)(5)(6) $0.73 – $0.75 $2.66 – $2.70 Weighted Diluted Shares Outstanding 751M – 755M 764M – 768M
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21© Fortinet Inc. All Rights Reserved. Q4’25E 2025E Cash Paid for Income Taxes $66M - $116M $400M - $450M Infrastructure Investments $60M - $110M $380M - $430M Non-GAAP Tax Rate 18% 18% Additional Modeling Points
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Appendix
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23 © Fortinet Inc. All Rights Reserved. Reconciliation of Non-GAAP Results to GAAP Results Notes (1) Free Cash Flow is a non-GAAP measure that we define as net cash provided by operating activities minus purchases of property. (2) Adjusted Free Cash Flow is a non-GAAP measure that we define as Free Cash Flow plus cash payments associated with real estate purchases and development. ($ in millions) Q3'24 Q3’25 Total revenue $1,508.1 $1,724.9 Add: Change in deferred revenue 115.5 82.8 Less: Deferred revenue balance acquired in business combinations (41.4) – Total billings $1,582.2 $1,807.7 GAAP Cash Flow from Operations $608.1 $655.2 Less: Purchases of Property and Equipment (36.3) (87.7) Free Cash Flow (1) $571.8 $567.5 Add: Real Estate Related Add Backs 33.0 78.4 Adjusted Free Cash Flow (2) $604.8 $645.9
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24 © Fortinet Inc. All Rights Reserved. Reconciliation of Non-GAAP Results to GAAP Results ($ in millions) Q3'24 Q3’25 GAAP product gross profit $337.8 $378.6 Stock‐based compensation 0.5 0.6 Amortization of acquired intangible assets 1.1 1.4 Non‐GAAP product gross profit $339.4 $380.6 Non‐GAAP product gross margin 71.6% 68.0% GAAP service gross profit $906.9 $1.014.6 Stock‐based compensation 6.3 6.9 Amortization of acquired intangible assets 2.5 5.8 Non‐GAAP service gross profit $915.7 $1,027.3 Non‐GAAP service gross margin 88.5% 88.1% GAAP total gross profit $1,244.7 $1,393.2 Stock‐based compensation 6.8 7.5 Amortization of acquired intangible assets 3.6 7.2 Non‐GAAP total gross profit $1,255.1 $1,407.9 Non‐GAAP gross margin 83.2% 81.6% GAAP operating income $470.9 $547.3 Stock‐based compensation 66.4 72.2 Amortization of acquired intangible assets 5.3 13.1 Litigation-related matter 3.2 5.6 Gain on IP matters (1.1) (1.4) Non‐GAAP operating income $544.7 $636.8 Non‐GAAP operating margin 36.1% 36.9%