Fortinet, Inc.FTNT

Fortinet, Inc. Revenue Disclosure

10-KFiled Feb 25, 20261 min read
REVENUE RECOGNITION
Disaggregation of Revenue

The following table presents our revenue disaggregated by major product and service lines (in millions):
Year Ended December 31,
202520242023
Product$2,218.4 $1,908.7 $1,927.3 
Service:
Security subscription2,633.2 2,316.7 1,898.1 
Technical support and other1,948.0 1,730.4 1,479.4 
Total service revenue4,581.2 4,047.1 3,377.5 
Total revenue$6,799.6 $5,955.8 $5,304.8 

Deferred Revenue

During 2025 and 2024, we recognized $3.26 billion and $2.84 billion in revenue that was included in the deferred revenue balance as of December 31, 2024 and 2023, respectively.

Transaction Price Allocated to the Remaining Performance Obligations

As of December 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $7.18 billion, which was substantially comprised of deferred security subscription and technical support services revenue as well as unbilled contract revenue from non-cancellable contracts that will be recognized in future periods. We expect to recognize approximately $3.66 billion as revenue over the next 12 months, $2.80 billion in years two and three, and the remainder thereafter.
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Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 21, 2025
2023Feb 26, 2024
2022Feb 24, 2023
2021Feb 25, 2022
2020Feb 19, 2021
2019Feb 26, 2020
2018Feb 27, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

Income TaxesEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew Standards