Fortinet, Inc. 10-Q

Financial Statements (unaudited)

ITEM 1. Financial Statements FORTINET, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in millions, except per share amounts) June 30, 2026 December 31, 2025 ASSETS 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 LIABILITIES AND STOCKHOLDERS’ EQUITY 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 — 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 See notes to condensed consolidated financial statements. 4 Table of Contents FORTINET, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited, in millions, except per share amounts) Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 REVENUE: Product $ 773.0 $ 508.9 $ 1,418.1 $ 968.0 Service 1,274.9 1,121.1 2,479.4 2,201.7 Total revenue 2,047.9 1,630.0 3,897.5 3,169.7 COST OF REVENUE: Product 233.8 165.9 442.1 315.8 Service 170.9 149.0 327.1 292.2 Total cost of revenue 404.7 314.9 769.2 608.0 GROSS PROFIT: Product 539.2 343.0 976.0 652.2 Service 1,104.0 972.1 2,152.3 1,909.5 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