F5, Inc.

- There is no mention on page 15 or surrounding pages about any current or future fundraising through debt or equity. - The company highlights strong cash flow, including a record $348 million in free cash flow in Q2 FY26. - They have an ongoing share repurchase program with $522 million remaining authorization as of Q2 end. - There is no indication of plans to raise capital via issuing new debt or equity during this period. - The focus is on operational growth, innovation, and managing costs/pricing rather than external financing.

- Q2 CapEx was $18 million, indicating ongoing capital investment. - The company is investing continuously and innovating in systems and software, viewing this as critically important. - Focus on hybrid multicloud architectures and AI-powered security solutions shows strategic investment in emerging technology areas. - Planning for new ranges of appliances and systems is underway, although specifics were not disclosed. - Investments target hybrid multicloud capabilities, expanding security solutions including AI-powered WAF, Bot Defense, and runtime security. - Manufacturing team has proactively increased build forecasts and secured memory supply ahead of demand, supporting system growth. - Digital sovereignty and data residency demands drive investments in flexible, scalable systems architecture.

- Strong growth visibility two quarters out into next year, driven by refresh cycles and expansion at refresh time. - Expect growth opportunities in systems revenue for fiscal 2027 due to current strong refresh momentum and new use cases (e.g., AI, data sovereignty). - Software business primarily subscription-based (90% subscription), with slower growth this year expected to accelerate next year due to a larger renewal base. - FY 2026 revenue growth guidance raised to 7-8% (up from 5-6%), with mid-single-digit software growth, double-digit systems growth, and low single-digit services growth. - AI-related sales grew 200% year-over-year, with ~$50 million sales in H1 FY 2026 and nearly 100 AI customers, indicating strong AI-driven demand. - Continued secular trends: hybrid multicloud adoption, threat landscape expansion, and AI inference inflection will sustain growth. - Strong pipeline and market trends support further revenue and market share gains globally.

- FY ’26 revenue growth raised to 7%–8%, up from previous 5%–6% outlook. - Mid-single-digit software revenue growth and double-digit systems revenue growth expected for FY ’26. - Low single-digit services revenue growth anticipated for FY ’26. - Q3 revenue expected between $820M to $840M, approx. 6.5% growth at midpoint. - Q3 non-GAAP EPS guidance range: $3.91 to $4.03 per share. - FY ’26 non-GAAP EPS range increased to $16.25 to $16.55, from prior $15.65 to $16.05. - Non-GAAP operating margin forecast remains at 34% to 35%. - Anticipated inflection to stronger software growth rate in FY ’27 with higher expansion against a larger renewal base. - Record free cash flow of $348M achieved in Q2; full-year share repurchase expected to be at least 50% of free cash flow.

- Deferred revenue was $2.12 billion at quarter end, up 10% year-over-year, primarily tied to the services business and maintenance renewals. - Strength in deferred revenue reflects multi-year maintenance renewals, with some customers accelerating renewals ahead of anticipated price increases. - Product backlog does not show up in deferred revenue; no indication of significant product backlog buildup currently. - Supply availability for near term is good, with proactive measures taken since mid-FY ’25 to secure memory and components for higher build forecasts and demand upside. - Longer-term visibility (4-5 quarters out) is less certain but build forecasts are aligned with high-end expectations for the systems business. - Strong pipeline creation and deal momentum leading to raised FY ’26 revenue outlook to 7%-8%, up from 5%-6%. - A strong refresh cycle is driving expansion and new use cases, contributing to healthy demand beyond just renewals.