Fortinetreason 02 of 4it gets paid again without selling againderived 2026-09-08accession 0001262039-26-000021
Deferred revenue was $7.68 billion as of June 30, 2026, an increase of $559.9 million, or 8%, from December 31, 2025.
The majority of our deferred revenue balance consists of the unrecognized portion of service revenue from FortiGuard and other security subscriptions and FortiCare technical support service contracts, which is recognized as revenue ratably over the service term.
Service revenue increased 14% during the three months ended June 30, 2026 compared to the same period last year, primarily driven by the strength of our security subscription revenue and our technical support and other services revenue.
The increase was primarily due to the recognition of revenue from our growing deferred revenue balance related to FortiGuard and other security subscriptions.
two findings, in the order they were read
The disclosed deferred revenue balance increased from $7.35 billion to $7.68 billion, and the year-to-date growth rate accelerated from 3% to 8%.
before · MD&A · 2026-03-31 → 2026-06-30
“Deferred revenue was $7.35 billion as of March 31, 2026, an increase of $235.7 million, or 3%, from December 31, 2025.”
→ after
this sentence is in the evidence below · not printed twice
Short-term deferred revenue growth accelerated from 2% to 6% year-to-date, consistent with the deferred revenue trajectory cited in the reason.
before · MD&A · 2026-03-31 → 2026-06-30
“Short-term deferred revenue was $3.73 billion as of March 31, 2026, an increase of $90.3 million, or 2%, from December 31, 2025.”
→ after
“Short-term deferred revenue was $3.84 billion as of June 30, 2026, an increase of $205.8 million, or 6%, from December 31, 2025.”
the evidence · every sentence checkedfour sentences · whole, uncut
the claims it rests on
“Deferred revenue was $7.68 billion as of June 30, 2026, an increase of $559.9 million, or 8%, from December 31, 2025.”
“The majority of our deferred revenue balance consists of the unrecognized portion of service revenue from FortiGuard and other security subscriptions and FortiCare technical support service contracts, which is recognized as revenue ratably over the service term.”
“Service revenue increased 14% during the three months ended June 30, 2026 compared to the same period last year, primarily driven by the strength of our security subscription revenue and our technical support and other services revenue.”
“The increase was primarily due to the recognition of revenue from our growing deferred revenue balance related to FortiGuard and other security subscriptions.”