F5 INC

In addition to the other information in this report, the following risk factors should be carefully considered in evaluating our company and operations.

Operational and Execution Risks

•Security vulnerabilities or control failures in our IT infrastructure or multicloud application security and delivery solutions and services as well as unforeseen product errors could have a material adverse impact on our business results of operations, financial condition and reputation;

•We are dependent on various information technology systems, and failures of or interruptions to those systems could harm our business;

•Our success depends on our key personnel and our ability to hire, retain and motivate qualified executives, sales and marketing, operations, product development and professional services personnel;

•Cloud-based and SaaS computing trends present competitive and execution risks;

•Our success depends upon our ability to effectively plan and manage our resources and restructure our business;

•Our business may be harmed if our contract manufacturers are not able to provide us with adequate supplies of our products or if a single source of hardware assembly is lost or impaired;

•Our business could suffer if there are any interruptions or delays in the supply of hardware components from our third-party sources;

•It is difficult to predict our future operating results because we have an unpredictable sales cycle;

•We may not be able to sustain or develop new distribution relationships, and a reduction or delay in sales to significant distribution partners could hurt our business;

•Reliance on fulfillment at the end of the quarter could cause our revenue for the applicable period to fall below expected levels;

•Our operating results are exposed to risks associated with international commerce;

•The average selling price of our products may decrease and our costs may increase, which may negatively impact revenues and profits; and

•Acquisitions present many risks and we may not realize the financial and strategic goals that are contemplated at the time of the transaction.

Strategic and Industry Risks

•Our success depends on our timely development of new software and systems products and features, market acceptance of new software and systems product offerings and proper management of the timing of the life cycle of our software and systems products;

•Our success depends on sales and continued innovation of our application security and delivery product lines;

•Issues related to the development and use of artificial intelligence ("AI") could give rise to legal and/or regulatory action, damage our reputation or otherwise materially harm of our business;

•Our business could be adversely impacted by conditions affecting the markets in which we compete;

•Industry consolidation may result in increased competition;

•We may not be able to compete effectively in the application security and delivery market; and

•Misuse of our products could harm our reputation.

Legal and Regulatory Risks

•Our failure to adequately protect personal information could have a material adverse effect on our business;

•A portion of our revenue is generated by sales to government entities, which are subject to a number of challenges and risks;

•We face litigation risks;

•We may not be able to adequately protect our intellectual property, and our products may infringe on the intellectual property rights of third parties;

•We are subject to governmental export and import controls that could subject us to liability or impair our ability to compete in international markets; and

•Changes in governmental regulations could negatively affect our revenues.

Financial Risks

•We are exposed to fluctuations in currency exchange rates, which could negatively affect our financial condition and results of operations;

•Changes in financial accounting standards may cause adverse unexpected revenue fluctuations and affect our reported results of operations; and

•If we are unable to maintain effective internal control over financial reporting, the accuracy and timeliness of our financial reporting may be adversely affected.

Risks Related to our Common Stock

•Our quarterly and annual operating results may fluctuate in future periods, which may cause our stock price to fluctuate;

•Anti-takeover provisions could make it more difficult for a third party to acquire us;

•Our stock price could be volatile, particularly during times of economic uncertainty and volatility in domestic and international stock markets; and

•If securities or industry analysts publish inaccurate or unfavorable research about our business, or discontinue publishing research about our business, the price and trading volume of our securities could decline.

General Risks

•Continued macroeconomic downturns or uncertainties may harm our industry, business, and results of operations;

•We face risks associated with having operations and employees located in Israel;

•Our business is subject to the risks of earthquakes, fire, power outages, floods, and other catastrophic events, and to interruption by man-made problems such as terrorism; and