Fortinet, Inc.

Hello and welcome to Fortinet's third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, we will conduct a question and answer session. Please be advised that this call is being recorded. I would now like to hand the call over to Anthony Luskery, Vice President of Investor Relations. Please go ahead.

Thank you. Good afternoon, and thank you for joining us on today's conference call to discuss Fortinet's third quarter 2025 financial results. Joining me on the call today are Ken Zee, Fortinet's founder, chairman, and CEO, Christiana Olgaard, our CFO, and John Whittle, our COO. Ken will begin our call today by providing a high-level perspective on our business. Christiana will then review our financial results for the third quarter of 2025 before providing guidance for the fourth quarter and updating the full year. We will then open the call for questions. During the Q&A session, we ask that you please limit yourself to one question and one follow-up question to allow others to participate. Before we begin, I'd like to remind everyone on today's call that we will be making forward-looking statements, and those forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those projected. Please refer to our SEC filings, in particular the risk factors in our most recent Form 10-K and Form 10-Q for more information. All forward-looking statements reflect our opinions only as of the date of this presentation, and we undertake no obligation and specifically disclaim any obligation to update forward-looking statements. Also, all references to financial metrics that we make on today's call are non-GAAP unless stated otherwise. Our GAAP results and GAAP to non-GAAP reconciliations are located in our earnings press release and in the presentation that accompanied today's remarks, both of which are posted on our investor relations website. As a reminder, this is a live call that will be updated for replay via webcast on our investor relations website. The prepared remarks will also be posted on the quarterly earnings section of our investor relations website following today's call. Lastly, all references to growth are on a year-over-year basis unless noted otherwise. I'll now turn over the call to Ken.

Thank you, Anthony. Thank you to everyone joining our call. We are pleased with our excellent third quarter performance, driven by strong execution and broad-based demand across organizations of all sizes, as we grow faster than the market in all three pillars of our business, as shown on slide four. Building and revenue both grow by 14%, with a record third quarter operation margin of 37%. Unified SASE building growth 19%, driven by 40 SASE building growths of over 100%, making us one of the fastest growing SASE leaders on the scale. Our strong growth is driven by our key differentiated advantages. Fortinet is the only vendor to natively integrate Next-Gen Firewall, SD-WAN, and SASE on a single operation system, FortiOS, with the flexibility to run both on-premise and in the cloud. This single OS integration allows customers to expand from our leading Next-Gen Firewall and SD-WAN to SASE in minutes. providing a significant upsell opportunity within our large customer base. Our solution also enables sovereign SASE for service providers and large enterprises to deploy FortiSASE within your own data center for data privacy. Plus, Fortinet's investment in its own global cloud infrastructure, FortiCloud, delivers long-term security, performance, and cost benefit, reducing total cost of ownership by roughly one-third that are not compared to our peers. These key advantages have led to our recognition as a leader in the 2025 Gartner Magic Quadrant for SASE platform, as shown on slide six. Our strong leadership position is reflected in customer adoption, with 15% of large enterprise customers now using 4D SASE represent 55% growth, as shown on slide 10. Based on this momentum, we are confident in our ability to become the number one SaaS market leader in the next few years. In secure networking, building growth 10%, outperforming the overall secure networking market as we continue to gain market share. Fortinet is the number one leader in firewall with a union market share of over 50% and has the highest product revenue among our separate security peers. Fortinet leadership in firewall is enabled by FortiOS, thus unified networking and security, and is accelerated by FortiASIC with a huge secure computing power, which enables more function and delivers 5 to 10x better performance than our competitors, while lower the total cost of ownership and energy consumption. This security and performance advantage was further validated by Gartner as Fortinet recognized as a leader in the inaugural magic quadrant for hybrid mesh firewall, where we ranked the highest in ability to execute. Building on this foundation, we recently launched the secure AI data center solution. specifically designed for AI workload, where we leverage our ASIC advantage, helping Fortinet capture a massive growth opportunity as customers scale AI globally. AI-driven secure op was the fastest-growing pillar in the third quarter, with building growth of 33%. Fortinet's industry-leading AI patent portfolio of more than 500 issued and pending AI patents, powering over 20 AI-driven solutions, as shown on slide 12, offers the broadest and the most integrated AI-driven security operation portfolio in the industry. Fortinet's security leadership also extends to operational technology and cyber-physical system security, where our solutions provide deep visibility, advanced threat protection, and security connectivity. Operational technology and critical infrastructure solutions are another significant growth driver for Fortinet, with over 30% building growth. Lastly, as a result of a strong growth opportunity that lies ahead, we remain confident that we will continue to meet the Rule of 45 and continue to gain market share and outperform overall market growth in 2025, 2026, and beyond, consistent with our mid-term target provided on last year's Annals Day. I would like to thank our employees, customers, partners, and suppliers worldwide for their continued support and hard work. I will now turn the call over to Christiana.