Table of Contents
How Does Fortinet Make its Money?
Fortinet is one of the largest cybersecurity companies in the world, best known for its FortiGate next-generation firewalls and its integrated Fortinet Security Fabric platform. The company provides broad, integrated, and automated protection across the entire digital attack surface, from network edge to cloud. Fortinet differentiates itself through custom-designed security ASICs (application-specific integrated circuits) that deliver high performance at lower cost compared to competitors relying on off-the-shelf processors. With over 730,000 customers worldwide, Fortinet is a leader in the fast-growing network security market.
Fortinet (FTNT) Business Model
Fortinet operates in the cybersecurity sector. Below is a summary of Fortinet’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Fortinet’s 2024 fiscal year filings with the SEC.
Fortinet Competitors
Fortinet’s key competitors and comparable public companies in the cybersecurity sector include CrowdStrike, Palo Alto Networks, and Cloudflare. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Fortinet stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
Fortinet’s total revenue in 2024 grew 11.1% year-over-year. Here is how their revenue breaks down by segment:
| Revenue Stream | 2024 | 2023 |
|---|---|---|
| Service Revenue | $4,150 | $3,600 |
| Product Revenue | $1,740 | $1,590 |
| Total | $5,890 | $5,300 |
All values in millions USD unless otherwise stated.
Income Statement Breakdown
Here is a summary of Fortinet’s income statement comparing 2024 to 2023:
| Item | 2024 | 2023 |
|---|---|---|
| Total Revenue | $5,890 | $5,300 |
| Cost of Revenue | $1,400 | $1,350 |
| Gross Profit | $4,490 | $3,950 |
| Operating Expenses | $2,750 | $2,650 |
| Operating Income | $1,740 | $1,300 |
| Net Income | $1,550 | $1,150 |
All values in millions USD.
Key Financial Metrics
Gross Margin: 76.2% — This tells us how much profit Fortinet keeps after direct costs of delivering their product or service.
Operating Margin: 29.5% — After accounting for all operating expenses like R&D, sales, and administration, this is the profit margin from core operations.
Revenue Growth: 11.1% — Year-over-year revenue growth from 2023 to 2024.
Is Fortinet Profitable?
Yes, Fortinet is profitable. The company reported net income of $1,550 on total revenue of $5,890.
Fortinet (FTNT) Financial Summary
Fortinet (FTNT) is a cybersecurity company that generated $5,890 in total revenue in fiscal year 2024. The company earned $1,550 in net income, making it profitable. For a deeper look at Fortinet’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.