Personalis: Q2 Earnings Snapshot
On a per-share basis, the Fremont, California-based company said it had a loss of 23 cents.
The provider of contract research and genomic information posted revenue of $17.2 million in the period, which missed Street forecasts. Three analysts surveyed by Zacks expected $20.2 million.
Personalis expects full-year revenue in the range of $70 million to $80 million.
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Revolution Medicines Reports Second Quarter 2025 Financial Results and Update on Corporate Progress
Strong execution of two ongoing Phase 3 trials of daraxonrasib; for RASolute 302, company is winding down enrollment in U.S. and expects to complete enrollment of the trial this year FDA Breakthrough Therapy Designations granted for two RAS(ON) inhibitors, daraxonrasib and elironrasib Company entered into $2 billion flexible funding agreement with Royalty Pharma to support bold vision for global development and commercialization Revolution Medicines to hold webcast today at 4:30 p.m. Eastern Time REDWOOD CITY, Calif., Aug. 06, 2025 (GLOBE NEWSWIRE) -- Revolution Medicines, Inc. (Nasdaq: RVMD), a late-stage clinical oncology company developing targeted therapies for patients with RAS-addicted cancers, today announced its financial results for the quarter ended June 30, 2025, and provided an update on corporate progress. The company continues to make meaningful progress on its near-term strategic priorities: Execute pivotal trials with daraxonrasib monotherapy in patients with previously treated metastatic pancreatic ductal adenocarcinoma (PDAC) and non-small cell lung cancer (NSCLC) RASolute 302, a global Phase 3 trial of daraxonrasib in patients with previously treated PDAC, continues to enroll well. The company is winding down enrollment in the U.S. while continuing to enroll patients outside the U.S. to support global registration. The company expects to complete enrollment in this trial this year to enable an expected data readout in 2026. The company recently announced that daraxonrasib received Breakthrough Therapy Designation from the U.S. Food and Drug Administration for previously treated metastatic PDAC in patients with KRAS G12 mutations. In RASolve 301, a global Phase 3 trial of daraxonrasib in patients with previously treated NSCLC, the company continues enrolling patients in the U.S. and is now activating trial sites in Europe and Japan. Advance daraxonrasib into earlier line randomized pivotal trials in patients with PDAC and NSCLC The company remains on track to initiate a registrational trial this year with daraxonrasib as first line treatment for patients with metastatic PDAC; this is planned as a three-arm trial comparing daraxonrasib or daraxonrasib plus chemotherapy to chemotherapy. Later this year, the company expects to share the trial design and clinical combination data that informed this planned trial. The company also remains on track to initiate a registrational trial this year with daraxonrasib as adjuvant treatment for patients with resectable PDAC and expects to share the trial design later this year. Based on new clinical data disclosed by the company last quarter indicating that daraxonrasib can be combined productively with pembrolizumab with or without platinum doublet chemotherapy as a first line treatment of patients with RAS mutant NSCLC, the company expects to initiate a Phase 3 registrational trial in this indication in 2026. Generate sufficient data to inform development priorities for the mutant-selective inhibitors elironrasib and zoldonrasib and prepare to initiate one or more pivotal trials either as monotherapy or in a drug combination The company continues to study its mutant-selective inhibitors elironrasib and zoldonrasib as monotherapy and in drug combinations. The company recently reported an updated clinical data set from patients with previously treated KRAS G12C NSCLC treated with elironrasib as monotherapy that showed a highly competitive profile, including differentiated safety and tolerability along with a compelling objective response rate and progression-free survival. The company also showed clinical evidence that elironrasib can be combined productively with pembrolizumab in first line NSCLC patients with an acceptable safety and tolerability profile. Further, the company recently announced that elironrasib received FDA Breakthrough Therapy Designation for the treatment of adult patients with KRAS G12C-mutated locally advanced or metastatic NSCLC who have received prior chemotherapy and immunotherapy but have not been previously treated with a KRAS G12C inhibitor. The company believes this designation is a recognition of the significant unmet medical need and elironrasib's potential to serve these patients. Currently there are no RAS-targeted inhibitors with full FDA approval for treating patients with KRAS G12C NSCLC. For zoldonrasib, clinical data presented in April demonstrated acceptable tolerability and encouraging initial antitumor activity in patients with previously treated KRAS G12D NSCLC, which follows encouraging data reported previously in patients with KRAS G12D PDAC. The company expects to initiate one or more pivotal combination trials in 2026 that incorporate either zoldonrasib or elironrasib. Progress earlier stage pipeline, including advancing next-generation innovations from the company's highly productive discovery organization Clinical development of RMC-5127, a RAS(ON) G12V-selective inhibitor, remains on track to reach a clinic-ready stage in 2025 to enable an expected Phase 1 initiation in 2026. The company also continues to invest in collaborations designed to enhance its discovery efforts, recently announcing a drug discovery collaboration with Iambic Therapeutics, in which Iambic will use its cutting-edge AI capabilities to generate customized models through training with Revolution Medicines' proprietary data. This collaboration aims to enhance Revolution Medicines' lead discovery and optimization processes directed against both current and new drug targets to ensure the company continues building a highly impactful and sustainable pipeline. Grow global commercialization and operational capabilities and advance launch readiness The company recently announced a partnership with Royalty Pharma, which provides $2 billion in committed capital to Revolution Medicines upon achievement of agreed-upon milestones through a flexible mix of synthetic royalty and debt instruments. This flexible funding agreement provides the company with strategic agility and ability to secure the resources needed to advance its ambitious global clinical development and commercialization plans. The company continues to grow its commercial and operational capabilities and increase activities in support of a potential launch. 'As we advance our innovative RAS(ON) inhibitors through late-stage development and prepare for potential commercialization, we are scaling the effort to meet the ever-growing opportunities afforded by our pipeline,' said Mark A. Goldsmith, M.D., Ph.D., chief executive officer and chairman of Revolution Medicines. 'With our maturing pipeline, organizational capabilities and recently bolstered financial wherewithal, we are on a path toward becoming a fully integrated, global oncology company with an industry-leading franchise of targeted therapies for patients with RAS-addicted cancers.' Other Corporate Updates Building on recently disclosed clinical data supporting combinations of its RAS(ON) inhibitors with pembrolizumab, a leading PD-1 antibody, the company announced that it had entered into a clinical collaboration with Summit Therapeutics in multiple solid tumor settings to evaluate the safety and efficacy of Revolution Medicines' clinical-stage RAS(ON) inhibitors in combination with Summit Therapeutics' ivonescimab, an innovative PD-1 / VEGF bispecific antibody. Financial Highlights Second Quarter Results Cash Position: Cash, cash equivalents and marketable securities were $2.1 billion as of June 30, 2025. This balance includes receipt of the first $250 million royalty monetization tranche from Royalty Pharma. R&D Expenses: Research and development expenses were $224.1 million for the quarter ended June 30, 2025, compared to $134.9 million for the quarter ended June 30, 2024. The increase in expenses was primarily due to increases in clinical trial expenses and manufacturing expenses for daraxonrasib, zoldonrasib and elironrasib, and personnel-related expenses and stock-based compensation expense related to additional headcount. G&A Expenses: General and administrative expenses were $40.6 million for the quarter ended June 30, 2025, compared to $21.7 million for the quarter ended June 30, 2024. The increase was primarily due to increases in personnel-related expenses and stock-based compensation expense associated with additional headcount, and an increase in commercial preparation activities. Net Loss: Net loss was $247.8 million for the quarter ended June 30, 2025, compared to net loss of $133.2 million for the quarter ended June 30, 2024. Financial GuidanceRevolution Medicines is projecting full year 2025 GAAP net loss guidance of between $1.03 billion and $1.09 billion, which includes estimated non-cash stock-based compensation expense of between $115 million and $130 million. WebcastRevolution Medicines will host a webcast this afternoon, August 6, 2025, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). To listen to the live webcast, or access the archived webcast, please visit: Following the live webcast, a replay will be available on the company's website for at least 14 days. About Revolution Medicines, Inc. Revolution Medicines is a late-stage clinical oncology company developing novel targeted therapies for patients with RAS-addicted cancers. The company's R&D pipeline comprises RAS(ON) inhibitors designed to suppress diverse oncogenic variants of RAS proteins. The company's RAS(ON) inhibitors daraxonrasib (RMC-6236), a RAS(ON) multi-selective inhibitor; elironrasib (RMC-6291), a RAS(ON) G12C-selective inhibitor; and zoldonrasib (RMC-9805), a RAS(ON) G12D-selective inhibitor, are currently in clinical development. The company anticipates that RMC-5127, a RAS(ON) G12V-selective inhibitor, will be its next RAS(ON) inhibitor to enter clinical development. Additional development opportunities in the company's pipeline focus on RAS(ON) mutant-selective inhibitors, including RMC-0708 (Q61H) and RMC-8839 (G13C). For more information, please visit and follow us on LinkedIn. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not historical facts may be considered 'forward-looking statements,' including without limitation statements regarding the company's financial projections and guidance; the company's development opportunities, plans and timelines and its ability to build or advance its portfolio and R&D pipeline; progression of clinical studies and findings from these studies, including the tolerability, safety, and potential efficacy of the company's candidates being studied; the company's expectations regarding timing of clinical trial initiation, enrollment and data readouts or disclosures and clinical trial designs; collaborations, including the aims and expected benefits of the Company's collaboration with Iambic; sources of capital, including the availability of capital under the Royalty Pharma arrangement and whether the company achieves the milestones associated with certain payments thereunder. Forward-looking statements are typically, but not always, identified by the use of words such as 'aims,' 'anticipate,' "believe," "estimate," "expect," "plan," 'potential,' 'project,' 'up to,' "will" and other similar terminology indicating future results. Such forward-looking statements are subject to substantial risks and uncertainties that could cause the company's development programs, future results, performance, or achievements to differ materially from those anticipated in the forward-looking statements. Such risks and uncertainties include without limitation risks and uncertainties inherent in the drug development process, including the company's programs' development stages, the process of designing and conducting preclinical and clinical trials, the regulatory approval processes, the timing of regulatory filings, the challenges associated with manufacturing drug products, the company's ability to successfully establish, protect and defend its intellectual property, other matters that could affect the sufficiency of the company's capital resources to fund operations, reliance on third parties for manufacturing and development efforts, changes in the competitive landscape, and the effects on the company's business of the global events, such as international conflicts or global pandemics. For a further description of the risks and uncertainties that could cause actual results to differ from those anticipated in these forward-looking statements, as well as risks relating to the business of Revolution Medicines in general, see Revolution Medicines' Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (the 'SEC') on August 6, 2025, and its future periodic reports to be filed with the SEC. Except as required by law, Revolution Medicines undertakes no obligation to update any forward-looking statements to reflect new information, events, or circumstances, or to reflect the occurrence of unanticipated events. Revolution Medicines Media & Investor Contact:media@ investors@ REVOLUTION MEDICINES, CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except share and per share data)(unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Operating expenses: Research and development $ 224,134 $ 134,932 $ 429,883 $ 252,953 General and administrative 40,580 21,711 75,591 44,549 Total operating expenses 264,714 156,643 505,474 297,502 Loss from operations (264,714 ) (156,643 ) (505,474 ) (297,502 ) Other income (expense), net: Interest income 22,404 21,487 47,319 45,247 Interest and other income (expense), net (899 ) 16 (909 ) (2,793 ) Change in fair value of warrant liabilities and contingent earn-out shares (4,578 ) 1,907 (2,139 ) 5,812 Total other income, net 16,927 23,410 44,271 48,266 Loss before income taxes (247,787 ) (133,233 ) (461,203 ) (249,236 ) Net loss $ (247,787 ) $ (133,233 ) $ (461,203 ) $ (249,236 ) Net loss per share attributable to common stockholders, basic and diluted $ (1.31 ) $ (0.81 ) $ (2.45 ) $ (1.51 ) Weighted-average common shares used to compute net loss per share, basic and diluted 188,583,288 165,141,936 188,365,805 164,935,542 REVOLUTION MEDICINES, CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, unaudited) June 30, 2025 December 31, 2024 Cash, cash equivalents and marketable securities $ 2,137,171 $ 2,289,299 Working capital (1) 1,991,905 2,163,718 Total assets 2,429,568 2,558,301 Total liabilities 564,199 293,097 Total stockholders' equity 1,865,369 2,265,204 (1) Working capital is defined as current assets less current in to access your portfolio
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Motorola Solutions Completes Acquisition of Silvus Technologies Holding Inc.
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More information about the acquisition will be shared during Motorola Solutions' quarterly conference call with financial analysts at 4 p.m. Central (5 p.m. Eastern) on Aug. 7. The conference call will be webcast live and a replay will be available at Download video and images from the media kit. Transaction Terms Under the terms of the purchase agreement, the consideration for the Silvus acquisition includes $4.4 billion in upfront consideration, comprising approximately $4.38 billion in cash (subject to customary adjustments) and approximately $20 million in restricted stock to certain employee equity holders. The terms of the purchase agreement also include the ability to earn earnout consideration of up to $600 million in the aggregate based on business performance over consecutive twelve-month periods ending in 2027 and 2028. About Motorola Solutions | Solving for safer Safety and security are at the heart of everything we do at Motorola Solutions. We build and connect technologies to help protect people, property and places. Our solutions foster the collaboration that's critical for safer communities, safer schools, safer hospitals, safer businesses, and ultimately, safer nations. Learn more about our commitment to innovating for a safer future for us all at About TJC TJC, formerly known as The Jordan Company, has worked for more than 40 years with CEOs, founders and entrepreneurs across a range of industries including Consumer & Healthcare, Diversified Industrials, Industrial Technology, Aerospace & Defense, Logistics & Supply Chain and Technology & Infrastructure. With $32.0 billion of assets under management as of March 31, 2025, TJC is managed by a senior leadership team that has invested together for over 23 years on over 85 investments. TJC has offices in New York, Chicago, Miami and Stamford. For more information, please visit Motorola Solutions Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of applicable federal securities law. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as "believes," "expects," "intends," "anticipates," "estimates" and similar expressions. Motorola Solutions can give no assurance that any actual or future results or events discussed in these statements will be achieved. Any forward-looking statements represent Motorola Solutions' views only as of today and should not be relied upon as representing Motorola Solutions' views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from the statements contained in this release. Such forward-looking statements include, but are not limited to, expected benefits of the transaction to Motorola Solutions and the Silvus business, the ability to expand the reach of Silvus' offerings, and our ability to integrate and combine the two companies. Motorola Solutions cautions the reader that the risks and uncertainties, including those in Part I Item 1A of Motorola Solutions' 2024 Annual Report on Form 10-K and in its other U.S. Securities and Exchange Commission ("SEC") filings, which are available for free on the SEC's website at and on Motorola Solutions' website at could cause actual results to differ materially from those estimated or predicted in the forward-looking statements. Many of these risks and uncertainties cannot be controlled by Motorola Solutions and factors that may impact forward-looking statements include, but are not limited to, Motorola Solutions' ability to successfully integrate and operate Silvus and realize the anticipated benefits of the acquisition. Motorola Solutions undertakes no obligation to publicly update any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise. View source version on Contacts Media Contact Alexandra +1 312 965 3968 Investor Contact Tim YocumMotorola +1 847-576-6899
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Fortinet Reports Second Quarter 2025 Financial Results
Highlights Revenue grew 14% year over year to $1.63 billion Billings grew 15% year over year to $1.78 billion1 Unified SASE ARR up 22% and Security Operations ARR up 35%, year over year2 GAAP operating margin of 28% Non-GAAP operating margin of 33%1 Raised 2025 full year billings guidance midpoint by $100 million SUNNYVALE, Calif., Aug. 06, 2025 (GLOBE NEWSWIRE) -- Fortinet® (Nasdaq: FTNT), a global cybersecurity leader driving the convergence of networking and security, today announced financial results for the second quarter ended June 30, 2025. 'Our strong second quarter performance and consistent track record of growth are a direct result of our continued innovation and customer-first strategy, enabling us to beat our billings guidance for the quarter and raise our full year billings outlook,' said Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet. 'We are the industry leader in network security, with the most deployed firewalls worldwide, a New-Generation SASE Firewall, and recognized leadership in the 2025 Gartner® Magic Quadrant™ for SASE Platforms. This recognition, along with our strong business momentum, financial outlook, innovation, and leadership across five separate network security Magic Quadrant™ reports, underscores the strength of our AI-driven security approach and the strategic advantage of our unified FortiOS operating system.' Recent Market Leadership Highlights Recognized as a Leader in the 2025 Gartner® Magic Quadrant™ for SASE Platforms, #1 in the Critical Capabilities for SASE Platforms report for the Secure Branch Network Modernization use case, and the only vendor in five different network security Magic Quadrant™ reports. Expanded FortiCloud with three new natively integrated services: FortiIdentity, FortiDrive, and FortiConnect. Recognized as the Overall Leader in the Westlands Advisory IT/OT Network Protection Platform Navigator 2025™ report for the third time in a row. Named a Leader in the 2025 Gartner® Magic Quadrant™ for Enterprise Wired and Wireless LAN Infrastructure for the second year in a row. Recognized as a Gartner Peer Insights™ Customers' Choice for SD-WAN for the sixth consecutive year and for Endpoint Protection for the third consecutive year. Crossed 1,400 issued patents worldwide, and over 500 issued and pending AI patents, driven by R&D investments. Guidance For the third quarter of 2025, Fortinet currently expects: Revenue in the range of $1.670 billion to $1.730 billion Billings in the range of $1.760 billion to $1.840 billion Non-GAAP gross margin in the range of 80.0% to 81.0% Non-GAAP operating margin in the range of 32.5% to 33.5% Diluted non-GAAP net income per share in the range of $0.62 to $0.64, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 772 million to 776 million. For the fiscal year 2025, Fortinet currently expects: Revenue in the range of $6.675 billion to $6.825 billion Service revenue in the range of $4.550 billion to $4.650 billion Billings in the range of $7.325 billion to $7.475 billion Non-GAAP gross margin in the range of 79.0% to 81.0% Non-GAAP operating margin in the range of 32.0% to 33.5% Diluted non-GAAP net income per share in the range of $2.47 to $2.53, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 773 million to 777 million. These statements are forward looking and actual results may differ materially. Refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements. Our guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets, gain on intellectual property matters, gain on bargain purchase related to acquisition, 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. Conference Call Details Fortinet will host a conference call today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the earnings results. A live webcast of the conference call and supplemental slides will be accessible from the Investor Relations page of Fortinet's website at and a replay will be archived and accessible at Third Quarter 2025 Conference Participation Schedule: Deutsche Bank Technology ConferenceAugust 27, 2025 Citi Global TMT ConferenceSeptember 5, 2025 Goldman Sachs Communacopia + Technology ConferenceSeptember 11, 2025 Members of Fortinet's management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Fortinet's conference presentations are expected to be available via webcast on the company's website. To access the most updated information, pre-register and listen to the webcast of each event, please visit the Investor Presentation & Events page of Fortinet's website at The schedule is subject to change. About Fortinet ( Fortinet (Nasdaq: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Well over half a million customers trust Fortinet's solutions, which are among the most deployed, most patented and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including Computer Emergency Response Teams ('CERTs'), government entities, and academia, is a fundamental aspect of Fortinet's commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet's elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at the Fortinet Blog or FortiGuard Labs. Forward-Looking Statements This press release contains 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 third 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 this release. 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 and other 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 sales and 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 associated with 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, and negative 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 or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events. Use of Non-GAAP Financial Measures We believe that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. For further information regarding why we believe that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the 'Explanation of Non-GAAP Financial Measures' section of this press INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in millions) June 30,2025 December 31,2024 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 3,368.5 $ 2,875.9 Short-term investments 1,194.4 1,190.6 Accounts receivable—net 1,215.7 1,463.4 Inventory 405.2 315.5 Prepaid expenses and other current assets 162.5 126.1 Total current assets 6,346.3 5,971.5 LONG-TERM INVESTMENTS 112.0 — PROPERTY AND EQUIPMENT—NET 1,544.8 1,349.5 DEFERRED CONTRACT COSTS 665.4 622.9 DEFERRED TAX ASSETS 1,457.2 1,335.6 GOODWILL AND OTHER INTANGIBLE ASSETS—NET 382.2 350.4 OTHER ASSETS 133.5 133.2 TOTAL ASSETS $ 10,641.4 $ 9,763.1 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 245.2 $ 190.9 Accrued liabilities 339.1 337.9 Accrued payroll and compensation 281.3 255.7 Current portion of long-term debt 499.0 — Deferred revenue 3,412.5 3,276.2 Total current liabilities 4,777.1 4,060.7 DEFERRED REVENUE 3,155.1 3,084.7 LONG-TERM DEBT 496.3 994.3 OTHER LIABILITIES 152.5 129.6 Total liabilities 8,581.0 8,269.3 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Common stock 0.8 0.8 Additional paid-in capital 1,715.9 1,636.2 Accumulated other comprehensive loss (20.7 ) (26.1 ) Retained earnings (accumulated deficit) 364.4 (117.1 ) Total stockholders' equity 2,060.4 1,493.8 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 10,641.4 $ 9,763.1 FORTINET, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited, in millions, except per share amounts) Three Months Ended Six Months Ended June 30,2025 June 30,2024 June 30,2025 June 30,2024 REVENUE: Product $ 508.9 $ 451.9 $ 968.0 $ 860.8 Service 1,121.1 982.4 2,201.7 1,926.8 Total revenue 1,630.0 1,434.3 3,169.7 2,787.6 COST OF REVENUE: Product 165.9 155.1 315.8 337.9 Service 149.0 119.9 292.2 241.8 Total cost of revenue 314.9 275.0 608.0 579.7 GROSS PROFIT: Product 343.0 296.8 652.2 522.9 Service 972.1 862.5 1,909.5 1,685.0 Total gross profit 1,315.1 1,159.3 2,561.7 2,207.9 OPERATING EXPENSES: Research and development 209.5 165.4 408.1 338.4 Sales and marketing 592.0 501.3 1,134.7 1,002.4 General and administrative 56.9 56.6 114.7 111.0 Gain on intellectual property matters (1.3 ) (1.2 ) (7.6 ) (2.3 ) Total operating expenses 857.1 722.1 1,649.9 1,449.5 OPERATING INCOME 458.0 437.2 911.8 758.4 INTEREST INCOME 45.0 38.3 89.3 70.5 INTEREST EXPENSE (4.6 ) (5.0 ) (9.5 ) (10.1 ) OTHER INCOME (EXPENSE)—NET 18.9 (2.2 ) 45.0 (5.1 ) INCOME BEFORE INCOME TAXES AND GAIN (LOSS) FROM EQUITY METHOD INVESTMENTS 517.3 468.3 1,036.6 813.7 PROVISION FOR INCOME TAXES 77.1 76.5 173.6 116.0 GAIN (LOSS) FROM EQUITY METHOD INVESTMENTS (0.1 ) (12.0 ) 10.5 (18.6 ) NET INCOME $ 440.1 $ 379.8 $ 873.5 $ 679.1 Net income per share: Basic $ 0.57 $ 0.50 $ 1.14 $ 0.89 Diluted $ 0.57 $ 0.49 $ 1.13 $ 0.88 Weighted-average shares outstanding: Basic 765.5 763.8 766.9 763.1 Diluted 772.7 769.9 774.8 770.2 FORTINET, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in millions) Six Months Ended June 30,2025 June 30,2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 873.5 $ 679.1 Adjustments to reconcile net income to net cash provided by operating activities: Stock-based compensation 135.2 126.2 Amortization of deferred contract costs 160.0 144.7 Depreciation and amortization 74.1 57.8 Amortization of investment discounts (19.4 ) (24.9 ) Other (44.8 ) 25.6 Changes in operating assets and liabilities, net of impact of business combinations: Accounts receivable—net 262.7 318.9 Inventory (79.6 ) 85.2 Prepaid expenses and other current assets (32.1 ) (12.3 ) Deferred contract costs (202.5 ) (136.0 ) Deferred tax assets (75.3 ) (130.3 ) Other assets (11.7 ) (7.6 ) Accounts payable 46.8 (67.2 ) Accrued liabilities (9.7 ) (24.9 ) Accrued payroll and compensation 22.9 (24.3 ) Deferred revenue 204.8 161.7 Other liabilities 10.3 0.7 Net cash provided by operating activities 1,315.2 1,172.4 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of investments (976.5 ) (974.3 ) Sales of investments 5.7 — Maturities of investments 869.6 904.6 Purchases of property and equipment (234.3 ) (245.0 ) Payments made in connection with business combinations, net of cash acquired (41.6 ) (5.7 ) Other 0.1 — Net cash used in investing activities (377.0 ) (320.4 ) CASH FLOWS FROM FINANCING ACTIVITIES: Repurchase and retirement of common stock (401.1 ) — Proceeds from issuance of common stock 31.3 19.6 Taxes paid related to net share settlement of equity awards (77.0 ) (63.1 ) Other (0.1 ) (0.8 ) Net cash used in financing activities (446.9 ) (44.3 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 1.3 (2.4 ) NET INCREASE IN CASH AND CASH EQUIVALENTS 492.6 805.3 CASH AND CASH EQUIVALENTS—Beginning of period 2,875.9 1,397.9 CASH AND CASH EQUIVALENTS—End of period $ 3,368.5 $ 2,203.2 Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures(Unaudited, in millions, except per share amounts) Reconciliation of GAAP operating income to non-GAAP operating income, operating margin, net income and diluted net income per share Three Months Ended June 30,2025 June 30,2024 Reconciliation of non-GAAP operating income: GAAP operating income $ 458.0 $ 437.2 GAAP operating margin 28.1 % 30.5 % Add back: Stock‐based compensation 69.9 64.3 Amortization of acquired intangible assets 13.2 3.3 Gain on intellectual property matters (1.3 ) (1.2 ) Non‐GAAP operating income $ 539.8 $ 503.6 Non‐GAAP operating margin 33.1 % 35.1 % Reconciliation of non-GAAP net income: GAAP net income $ 440.1 $ 379.8 Add back: Stock‐based compensation 69.9 64.3 Amortization of acquired intangible assets 13.2 3.3 Gain on intellectual property matters (1.3 ) (1.2 ) Tax adjustment (a) (30.8 ) (14.3 ) Non-cash charge on equity method investment — 8.0 Non-GAAP net income $ 491.1 $ 439.9 Non-GAAP net income per share, diluted Non-GAAP net income $ 491.1 $ 439.9 Non-GAAP shares used in diluted net income per share calculations 772.7 769.9 Non-GAAP net income per share, diluted $ 0.64 $ 0.57 Reconciliation of non-GAAP net income per share, diluted GAAP net income per share, diluted $ 0.57 $ 0.49 Add back: Non-GAAP adjustments to net income per share 0.07 0.08 Non-GAAP net income per share, diluted $ 0.64 $ 0.57 (a) Non-GAAP financial information is adjusted to an effective tax rate of 18% and 17% in the three months ended June 30, 2025 and 2024, respectively, on a non-GAAP basis, which differs from the GAAP effective tax rate. Reconciliation of net cash provided by operating activities to free cash flow Three Months Ended June 30,2025 June 30,2024 Net cash provided by operating activities $ 451.9 $ 342.0 Less: Purchases of property and equipment (167.8 ) (23.1 ) Free cash flow $ 284.1 $ 318.9 Net cash used in investing activities $ (266.2 ) $ (50.1 ) Net cash used in financing activities $ (414.2 ) $ (14.0 )Reconciliation of total revenue to total billings Three Months Ended June 30,2025 June 30,2024 Total revenue $ 1,630.0 $ 1,434.3 Add: Change in deferred revenue 149.2 106.3 Less: Deferred revenue balance acquired in business acquisitions (0.8 ) — Total billings $ 1,778.4 $ 1,540.6 1 A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading 'Explanation of Non-GAAP Financial Measures'.2 Annual Recurring Revenue or 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. Explanation of Non-GAAP Financial Measures We have provided in this release financial information that has not been prepared in accordance with U.S. Generally Accepted Accounting Principles ('GAAP'). These non-GAAP financial and liquidity measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with peer companies, many of which present similar non-GAAP financial measures to investors. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables below. Billings (non-GAAP). We define billings 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. We consider billings to be a useful metric for management and investors because billings drive current and future revenue, which is an important indicator of the health and viability of our business and cash flows. There are a number of limitations related to the use of billings instead of GAAP revenue. First, billings include amounts that have not yet been recognized as revenue and are impacted by the term of security and support agreements. Second, we may calculate billings in a manner that is different from peer companies that report similar financial measures. Management accounts for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with GAAP revenue. Free cash flow (non-GAAP). We define free cash flow as net cash provided by operating activities minus purchases of property and equipment. We believe free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after capital expenditures, can be used for strategic opportunities, including repurchasing outstanding common stock, investing in our business, making strategic acquisitions and strengthening the balance sheet. A limitation of using free cash flow rather than the GAAP measures of cash provided by or used in operating activities, investing activities, and financing activities is that free cash flow does not represent the total increase or decrease in the cash and cash equivalents balance for the period because it excludes investing activities other than capital expenditures and cash flows from financing activities. Management accounts for this limitation by providing information about our capital expenditures and other investing and financing activities on the face of the cash flow statement and under the caption 'Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources' in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K and by presenting cash flows from investing and financing activities in our reconciliation of free cash flow. In addition, it is important to note that other companies, including companies in our industry, may not use free cash flow, may calculate free cash flow in a different manner than we do or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of free cash flow as a comparative measure. Non-GAAP operating income and operating margin. We define non-GAAP operating income as operating income plus stock-based compensation, amortization of acquired intangible assets, less gain on intellectual property matters and, when applicable, other significant non-recurring items in a given quarter. Non-GAAP operating margin is defined as non-GAAP operating income divided by GAAP revenue. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the items noted above so that our management and investors can compare our recurring core business operating results over multiple periods. There are a number of limitations related to the use of non-GAAP operating income instead of operating income calculated in accordance with GAAP. First, non-GAAP operating income excludes the items noted above. Second, the components of the costs that we exclude from our calculation of non-GAAP operating income may differ from the components that peer companies exclude when they report their non-GAAP results of operations. Management accounts for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP operating income and evaluating non-GAAP operating income together with operating income calculated in accordance with GAAP. Non-GAAP net income and diluted net income per share. We define non-GAAP net income as net income plus the items noted above under non-GAAP operating income and operating margin. In addition, we adjust non-GAAP net income and diluted net income per share for a non-cash charge of impairment on 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 define non-GAAP diluted net income per share as non-GAAP net income divided by the non-GAAP diluted weighted-average shares outstanding. We consider these non-GAAP financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income and non-GAAP operating margin. However, in order to provide a more complete picture of our recurring core business operating results, we include in non-GAAP net income and non-GAAP diluted net income per share, the tax adjustment required resulting in an effective tax rate on a non-GAAP basis, which often differs from the GAAP tax rate. We believe the non-GAAP effective tax rates we use are reasonable estimates of normalized tax rates for our current and prior fiscal years under our global operating structure. The same limitations described above regarding our use of non-GAAP operating income and non-GAAP operating margin apply to our use of non-GAAP net income and non-GAAP diluted net income per share. We account for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income and non-GAAP diluted net income per share and evaluating non-GAAP net income and non-GAAP diluted net income per share together with net income and diluted net income per share calculated in accordance with GAAP. Copyright © 2025 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet's trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiCore, FortiMail, FortiSandbox, FortiADC, FortiAgent, FortiAI, FortiAIOps, FortiAntenna, FortiAP, FortiAPCam, FortiAppSec, FortiAuthenticator, FortiBranchSASE, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCART, FortiCASB, FortiCentral, FortiCNP, FortiConnect, FortiController, FortiConverter, FortiCSPM, FortiCWP, FortiDAST, FortiDATA, FortiDB, FortiDDoS, FortiDeceptor, FortiDeploy, FortiDevice, FortiDevSec, FortiDLP, FortiEdge, FortiEDR, FortiEndpoint, FortiExplorer, FortiExtender, FortiFirewall, FortiFlex, FortiFone, FortiGSLB, FortiGuest, FortiHypervisor, FortiInsight, FortiIsolator, FortiLAN, FortiLink, FortiMonitor, FortiNAC, FortiNDR, FortiPAM, FortiPenTest, FortiPhish, FortiPoint, FortiPoints, FortiPolicy, FortiPortal, FortiPresence, FortiProxy, FortiRecon, FortiRecorder, FortiSASE, FortiScanner, FortiSDNConnector, FortiSEC, FortiSIEM, FortiSMS, FortiSOAR, FortiSRA, FortiStack, FortiSwitch, FortiTelemetry, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLM, FortiXDR, Lacework FortiCNAPP, Linksys, Intelligent Mesh, Velop, Max-Stream, Performance Perfected and SECURITY FABRIC. 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Gartner, Magic Quadrant for SASE Platforms, By Jonathan Forest, Neil MacDonald, Dale Koeppen, 09 July 2025 Gartner, Critical Capabilities for SASE Platforms, By Jonathan Forest, John Watts, Andrew Lerner, Charlie Winckless, 14 July 2025 Gartner, Magic Quadrant for Enterprise Wired and Wireless LAN Infrastructure, By Mike Leibovitz, Christian Canales, Nauman Raja, Tim Zimmerman, 25 June 2025 Gartner, Gartner Peer Insights™ 'Voice of the Customer': SD-WAN, Peer Contributors, 2025, 2024, & 2023 Gartner, Gartner Peer Insights™ 'Voice of the Customer': Endpoint Protection Platform, Peer Contributors, 2025, 2024, & 2023 Investor Contact: Media Contact: Aaron Ovadia Stephanie Lira Fortinet, Inc. Fortinet, Inc. 408-235-7700 408-235-7700 investors@ pr@
