$FTNT

Fortinet, Inc.

CIK:0001262039|SEC Filings

Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
REVENUE:
Total revenue	$ 2,047.9	$ 1,630.0	$ 3,897.5	$ 3,169.7
COST OF REVENUE:
Total cost of revenue	404.7	314.9	769.2	608.0
GROSS PROFIT:
Total gross profit	1,643.2	1,315.1	3,128.3	2,561.7
OPERATING EXPENSES:
Research and development	225.0	209.5	439.0	408.1
Sales and marketing	669.1	592.0	1,305.4	1,134.7
General and administrative	61.1	56.9	117.3	114.7
Gain on intellectual property matters	(1.3)	(1.3)	(2.7)	(7.6)
Total operating expenses	953.9	857.1	1,859.0	1,649.9
OPERATING INCOME	689.3	458.0	1,269.3	911.8
INTEREST INCOME	33.2	45.0	66.1	89.3
INTEREST EXPENSE	(3.2)	(4.6)	(7.4)	(9.5)
OTHER INCOME—NET	0.9	18.9	48.8	45.0
INCOME BEFORE INCOME TAXES AND GAIN (LOSS) FROM EQUITY METHOD INVESTMENTS	720.2	517.3	1,376.8	1,036.6
PROVISION FOR INCOME TAXES	115.0	77.1	237.0	173.6
GAIN (LOSS) FROM EQUITY METHOD INVESTMENTS	1.1	(0.1)	1.0	10.5
NET INCOME	$ 606.3	$ 440.1	$ 1,140.8	$ 873.5
Net income per share:
Basic (in dollars per share)	$ 0.83	$ 0.57	$ 1.55	$ 1.14
Diluted (in dollars per share)	$ 0.82	$ 0.57	$ 1.54	$ 1.13
Weighted-average shares outstanding:
Basic (in shares)	733.1	765.5	735.9	766.9
Diluted (in shares)	739.9	772.7	741.3	774.8
Product
REVENUE:
Total revenue	$ 773.0	$ 508.9	$ 1,418.1	$ 968.0
COST OF REVENUE:
Total cost of revenue	233.8	165.9	442.1	315.8
GROSS PROFIT:
Total gross profit	539.2	343.0	976.0	652.2
Service
REVENUE:
Total revenue	1,274.9	1,121.1	2,479.4	2,201.7
COST OF REVENUE:
Total cost of revenue	170.9	149.0	327.1	292.2
GROSS PROFIT:
Total gross profit	$ 1,104.0	$ 972.1	$ 2,152.3	$ 1,909.5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,140.8	$ 873.5
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	151.8	135.2
Amortization of deferred contract costs	190.9	160.0
Depreciation and amortization	81.2	74.1
Amortization of investment discounts	(9.3)	(19.4)
Other	(47.7)	(44.8)
Changes in operating assets and liabilities, net of impact of business combinations:
Accounts receivable—net	235.1	262.7
Inventory	(38.0)	(79.6)
Prepaid expenses and other current assets	(0.5)	(32.1)
Deferred contract costs	(240.5)	(202.5)
Deferred tax assets	(3.6)	(75.3)
Other assets	(9.0)	(11.7)
Accounts payable	49.7	46.8
Accrued liabilities	54.5	(9.7)
Accrued payroll and compensation	10.0	22.9
Deferred revenue	559.9	204.8
Other liabilities	(4.6)	10.3
Net cash provided by operating activities	2,120.7	1,315.2
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments	(756.0)	(976.5)
Sales of investments	118.4	5.7
Maturities of investments	587.5	869.6
Purchases of property and equipment	(148.6)	(234.3)
Payments made in connection with business combinations, net of cash acquired	0.0	(41.6)
Other	8.4	0.1
Net cash used in investing activities	(190.3)	(377.0)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase and retirement of common stock	(972.8)	(401.1)
Repayment of senior notes	(500.0)	0.0
Proceeds from issuance of common stock	62.3	31.3
Taxes paid related to net share settlement of equity awards	(59.1)	(77.0)
Other	(21.2)	(0.1)
Net cash used in financing activities	(1,490.8)	(446.9)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	0.0	1.3
NET INCREASE IN CASH AND CASH EQUIVALENTS	439.6	492.6
CASH AND CASH EQUIVALENTS—Beginning of period	2,495.3	2,875.9
CASH AND CASH EQUIVALENTS—End of period	2,934.9	3,368.5
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for income taxes—net	209.5	264.0
Operating lease liabilities arising from obtaining right-of-use assets	18.9	24.3
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Transfers of evaluation units and equipment from inventory to property and equipment	11.3	14.7
Liability for purchase of property and equipment	25.9	19.4
Excise tax payable on net stock repurchase	$ 6.7	$ 0.8

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
CURRENT ASSETS:
Cash and cash equivalents	$ 2,934.9	$ 2,495.3
Short-term investments	1,134.7	1,087.2
Accounts receivable—net	1,455.6	1,691.2
Inventory	426.3	399.5
Prepaid expenses and other current assets	256.8	227.0
Total current assets	6,208.3	5,900.2
LONG-TERM INVESTMENTS	399.1	339.7
PROPERTY AND EQUIPMENT—NET	1,699.5	1,619.0
DEFERRED CONTRACT COSTS	785.1	735.5
DEFERRED TAX ASSETS	1,319.4	1,314.9
GOODWILL	257.4	257.4
OTHER INTANGIBLE ASSETS—NET	77.1	97.3
OTHER ASSETS	113.3	125.2
TOTAL ASSETS	10,859.2	10,389.2
CURRENT LIABILITIES:
Accounts payable	282.5	230.8
Accrued liabilities	393.7	354.6
Accrued payroll and compensation	322.8	312.9
Current portion of long-term debt	0.0	499.7
Deferred revenue	3,841.8	3,636.0
Total current liabilities	4,840.8	5,034.0
DEFERRED REVENUE	3,833.9	3,479.8
LONG-TERM DEBT	496.9	496.6
OTHER LIABILITIES	136.5	141.3
Total liabilities	9,308.1	9,151.7
COMMITMENTS AND CONTINGENCIES (NOTE 10)
STOCKHOLDERS’ EQUITY:
Common stock, $0.001 par value—1,500.0 shares authorized; 733.6 and 743.0 shares issued and outstanding on June 30, 2026 and December 31, 2025, respectively	0.7	0.7
Additional paid-in capital	1,895.9	1,770.1
Accumulated other comprehensive loss	(28.8)	(25.4)
Accumulated deficit	(316.7)	(507.9)
Total stockholders’ equity	1,551.1	1,237.5
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 10,859.2	$ 10,389.2