F5 makes application delivery and security software and hardware for large enterprises, governments, and service providers. F5's core product is BIG-IP, a suite of application delivery controllers (ADCs) and security tools that sits in front of applications to manage traffic, enforce security policies, and optimize performance. F5 also sells NGINX, a lighter-weight ADC for modern, containerized applications, and F5 Distributed Cloud Services, a SaaS offering for cloud-delivered application security and networking. F5 sells primarily through a direct enterprise sales force, with large enterprises as its core customer base. Revenue splits roughly evenly between product revenue (hardware appliances and software) and global services (maintenance and support contracts on the installed base). Recurring revenue — subscriptions plus maintenance — accounts for roughly 72% of total revenue. Software is sold primarily through multi-year subscriptions under a flexible consumption model, with revenue recognition front-loaded under accounting rules, creating lumpiness tied to 3-year renewal cycles. Hardware revenue is driven by refresh cycles, with two legacy hardware families reaching end-of-software-support in 2026 and 2027, sustaining a multi-year refresh opportunity. Security products represent roughly 39% of total revenue. F5's growth strategy centers on hybrid multicloud adoption, the hardware refresh cycle, and emerging AI infrastructure use cases including load balancing for GPU clusters and securing AI applications and APIs. F5 returns the majority of free cash flow to shareholders through buybacks, targeting at least 50% annually. In October 2025, F5 disclosed a security breach affecting BIG-IP environments, which is expected to weigh on near-term sales cycles and revenue growth in the first half of FY26.