Fortinet, Inc.

fortinet.com

What Do They Do?

Sells cybersecurity products and services, including network firewalls, secure access and security operations tools, to businesses, service providers and government organizations.

How Do They Make Money?

Fortinet generally invoices customers for products and services at the time of sale, with standard payment terms of no more than 60 days. Hardware and software licenses are sold as products; security subscriptions and support are delivered over service terms, while SaaS can be provided over a term or on a monthly usage basis.

revenue

Segment	Share	How money arrives
Product Sold outright	33% FY2022: 40%	Sold outright
Security subscription Recurring	39% FY2022: 32%	Recurring
Technical support and other Recurring	29% FY2022: 27%	Recurring

Who Are Their Customers?

Businesses and government organizations across industries buy through distributors, resellers, service providers and managed security providers. Fortinet also sells directly to large service providers, major systems integrators and large end users.

Do Revenues Turn Into Profits?

Yes. It kept 27 cents of every revenue dollar as net income in FY2025 and turned 33 cents into free cash flow.

Operating income, FY2025

31% of revenue

▲ +16% vs FY2024 ($1.8B, 30%)

Net income, FY2025

27% of revenue

▲ +6% vs FY2024 ($1.7B, 29%)

Free cash flow, FY2025

33% of revenue

▲ +18% vs FY2024 ($1.9B, 32%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +26%; vs $1.6B in Q2 FY2025
Net income: ▲ +38%; vs $440.1M in Q2 FY2025

Security subscription share of revenue vs 39.5% in Q2 FY2025

Jul 29, 2026 Raised its full-year revenue outlook The release raised full-year revenue guidance to 19% year-over-year growth.

Growing. Revenue grew 2.0x in 4 years, from $3.3B in FY2021 to $6.8B in FY2025, about 19% a year.

Broader SASE offering The earlier report presents SASE as one capability within secure networking; the newer report describes a unified SASE offering combining firewall, SD-WAN, secure access and cloud security.

AI security products The earlier report describes AI as part of security operations and threat services; the newer report also details products for using AI in security work and protecting customers’ AI systems.

Revenue over time

Product Security subscription Technical support and other

$10B$5B$0

FY2021 FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with Check Point, Cisco, CrowdStrike, F5 Networks, HPE, Huawei, Microsoft, Netskope, Palo Alto Networks, SonicWALL, Sophos, and Zscaler

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