F5 reports cybersecurity incident and board changes in SEC filing

F5, Inc. (NASDAQ:FFIV), a $19.7 billion technology company with impressive gross profit margins of 81%, disclosed Wednesday that it experienced a cybersecurity incident involving unauthorized access to certain company systems by a sophisticated nation-state threat actor. According to InvestingPro data, F5 maintains a strong financial position, holding more cash than debt on its balance sheet. The company stated in a press release included with its SEC filing that it first learned of the incident on August 9 and immediately initiated its incident response processes, engaging external cybersecurity experts to assist with containment.

F5 reported that the threat actor maintained persistent access to some internal systems, including the BIG-IP product development environment and engineering knowledge management platform. The company confirmed that files were exfiltrated, including portions of BIG-IP source code and information about undisclosed vulnerabilities under development. F5 stated, “We are not aware of any undisclosed critical or remote code vulnerabilities, and we are not aware of active exploitation of any undisclosed F5 vulnerabilities.” The company also said that independent cybersecurity research firms have validated there was no evidence of modification to its software supply chain.

According to the filing, F5 found no evidence of access to or exfiltration of data from its customer relationship management, financial, support case management, or iHealth systems. Some exfiltrated files did contain configuration or implementation information for a small percentage of customers. F5 said it is reviewing these files and will communicate directly with affected customers as appropriate.

The company further noted that there was no evidence the threat actor accessed or modified the NGINX source code, product development environment, F5 Distributed Cloud Services, or Silverline systems.

F5 stated that the U.S. Department of Justice determined on September 12 that a delay in public disclosure was warranted, and the company is now filing the report in a timely manner. As of this disclosure, F5 said the incident has not had a material impact on its operations and it is evaluating any potential impact on its financial condition or results of operations. The company’s robust financial health is reflected in its year-to-date stock performance, with shares up over 36% and currently trading near their 52-week high of $346. InvestingPro subscribers have access to 13 additional key insights about F5’s financial outlook and comprehensive Pro Research Reports, which provide deep-dive analysis of 1,400+ top stocks.

Additionally, the filing reported that Michael Montoya resigned from F5’s Board of Directors on October 9. Montoya was immediately appointed as Chief Technology Operations Officer, effective October 13, reporting directly to the CEO. The board size was reduced from eleven to ten members following his resignation.

All information is based on a statement released in F5’s SEC filing.

In other recent news, F5 Networks reported its third-quarter fiscal 2025 earnings, surpassing analysts’ expectations with a notable earnings per share (EPS) of $4.16, compared to the forecasted $3.50. The company’s revenue also exceeded projections, reaching $780 million against the anticipated $752.79 million. Following these results, Needham raised its price target for F5 Networks to $345 from $320, maintaining a Buy rating, citing the company’s strong performance and optimistic guidance for the fourth quarter. Additionally, F5 Networks’ acquisition of CalypsoAI is viewed positively by Raymond James, as it is expected to enhance the company’s advanced security solutions. Despite the positive earnings report, the stock experienced a slight decline during trading. These developments highlight significant movements within the company, including strategic acquisitions and strong financial results.

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