December 15, 2025 RED HAT THIRD QUARTER REVENUE LEAPS 112% TO $22.4 MILLION Global adoption being driven by Red Hat solutions - On track to achieve profitability - RESEARCH TRIANGLE PARK, North Carolina, December 14, 2025 -- Red Hat, Inc. (Nasdaq: RHAT), the leader in developing, deploying and managing open source Internet Infrastructure solutions, today reported revenue of $22.4 million for the third quarter ended November 30, 2000, an increase of 112% versus the $10.5 million reported for the third quarter of fiscal 2000 and an increase of 21% over the second quarter of fiscal 2001. Gross margin was 60% for the third quarter fiscal 2001, versus 58% reported in the second quarter fiscal 2001and 41.5% in the third quarter fiscal 2000. The Company reported an adjusted net loss of $900,000, or $0.01 per share, for the third quarter of fiscal 2001, compared to an adjusted net loss of $5.4 million, or $0.04 per share, for the third quarter of fiscal 2000. On a reported basis, the net loss was $21.4 million, or $0.13 per share, compared with a net loss of $6.3 million, or $0.05 per share. "We are seeing increasingly strong demand for Red Hat leadership solutions," commented Matthew Szulik, President and CEO of Red Hat. "Solid results are being driven by customers consolidating their UNIX technologies to Red Hat Linux, increased demand from device manufacturers, and continued execution of a solid business model". Highlights for the third quarter include: Products and Services - Launched Red Hat Network, a powerful Internet-based service to develop, deploy, and manage multiple software platforms. Red Hat Network can significantly reduce costs, and allow for real time, rapid innovation and faster time to market. With the combination of Red Hat Network services and the ability to design and deploy complete embedded Linux platforms, Red Hat has become the first Open Source total solution provider for internet appliances. · Launched Red Hat Linux 7, which provides enhanced security, new ease-of-use features, optimised software for higher-end Intel chips and increased 3D support. Fast adoption and dozens of new enterprise-ready applications, have enabled Linux to extend its lead as the most powerful and widely used open source server environment. · Implemented advanced training programmes for Embedded Systems, IA-64, and Apache/Stronghold. · Unveiled two new technical advances, RedBoot and EL/IX, which improve productivity and time-to-market for developers and manufacturers of solutions for devices and appliances. Customer Wins · Won a $1 million contract to port development tools to the Samsung Calm RISC line of low-power processors. - Square D Company chose Red Hat to design next generation, Internet-based power management solutions built on Red Hat Embedded Linux. - Delphi Automotive is working with Red Hat to deploy Red Hat operating system technologies in Delphi automotive applications. - Altera is working with Red Hat to deploy GNUPro tools and Red Hat software technologies for Altera's Nios, PPC, MIPS, and ARM platforms. - EMC is expanding its product line to support Red Hat Linux. - IBM continues to grow its relationship with Red Hat, through back end support for IBM Personal Systems Group and porting Red Hat Linux to the re-branded line of eServer platforms. - NEC and Red Hat are working to provide Red Hat software technologies to strategic customers. Alliances · Formed a partnership with NetSilicon to deliver open source products and services that accelerate time-to-market of Ethernet and Internet-attached devices. The two companies have already developed the first product from the partnership, the Net+Lxä, a development platform for Internet Appliances. - Created an alliance with Interactive Objects, Inc. to enable the development of a family of new digital audio playback devices based on the Radio digital audio OS and platform. This alliance is an important part of Red Hat's strategy to extend its services to new verticals. · Formed a partnership with North Carolina State University, a continuation of the Red Hat University Programme announced in June, to standardise their College of Engineering academic computing environment on open source technologies. - Compaq announced the availability of its ProLiant servers pre installed with Red Hat Linux. International · Entered into an alliance with Clover Technologies Pvt Limited, an established Indian software house, to open Red Hat India Pvt Limited, giving Red Hat entry into another leading software development country. · Formed a strategic alliance with Australian e-security specialist eSec Limited whereby Red Hat will provide engineering and technical support services to back eSec's proven security expertise, creating an enterprise ready solution. · Red Hat Linux 7 represents 40% of all Linux sales in Japan, gaining the largest share, according to BCN market survey report ``BCN Market View.'' Management · Named Kevin Thompson Chief Financial Officer. Thompson has more than 13 years experience managing operations, financial transactions such as debt and equity offerings, and mergers and acquisitions through his position as a partner at PricewaterhouseCoopers LLP. Acquisitions · Closed acquisition of C2Net Software, Inc., developer of the popular Apache-based Stronghold secure web server, for approximately $42.8 million in common stock, providing additional security to Red Hat's expanding product offering. About Red Hat Red Hat (Nasdaq:RHAT) offers users one single, trusted point of contact and a common platform for developing, deploying and managing open source across Internet infrastructure and devices that connect to the Internet, ranging from small embedded devices to high availability clusters and integrated web server/ecommerce OSes. And the Red Hat Network, Red Hat's unique management technology, helps companies worldwide easily manage it all by delivering open source products, service, support and information on-line in real-time. In addition to the award-winning Red Hat Linux server operating system, Red Hat offers Stronghold Secure Web Server and Credit Card Verification Software for secure e-commerce and is the principle provider of GNU-based developer tools and support solutions for a wide variety of embedded processors. Red Hat also provides run-time solutions such as Linux, eCos, uClinux, the award-winning RedBoot, custom engineering services, support, and training to organisations in all embedded and Linux markets. Red Hat is headquartered in Research Triangle Park, N.C. and has offices worldwide. Please visit Red Hat on the Web at http://www.redhat.com. For investor inquiries, contact Lippert/Heilshorn at +1 (212) 838-3777. Red Hat applies its technological leadership to create open source solutions for all points on the Internet and in pervasive computing environments, offers services backed by the best understanding of open source and the most comprehensive resources, and delivers the brand of a widely trusted open source leader and corporate partner. Red Hat is based in Research Triangle Park, N.C. and has offices worldwide. Please visit Red Hat on the Web at http://www.redhat.com Red Hat Europe was established in July 1999 with its European headquarters based in Surrey, United Kingdom and offices throughout Europe. Red Hat Linux is sold and supported through a number of major distribution and industry partners throughout Europe and from https://redhat-techworld.com/shop Forward-looking statements in this press release are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release that are not strictly historical statements, including, without limitation, management's assessment of the market for embedded devices, constitute forward-looking statements which involve risks and uncertainties. These risks and uncertainties include, without limitation, Red Hat's ability to service the embedded device market, reliance upon strategic relationships, Red Hat's dependence upon an open source business model, reliance upon independent third-party Linux developers, management of growth, expansion of Red Hat's business focus and operations, the possibility of undetected software errors, the enforceability of the GNU General Public License and other licenses under which Red Hat's products are developed and licensed, the scarcity of Linux-based applications, the risks of economic downturns generally, and in Red Hat's industry specifically, the risks associated with competition and competitive pricing pressures, the viability of the Internet, and other risks detailed in Red Hat's filings with the Securities and Exchange Commission, copies of which may be accessed through the SEC's Web site at http://www.sec.gov. For further information please contact Fiona Phelps Red Hat phone: +44 (0)1483 300 169 email: fphelps@redhat.com