A10 Networks (ATEN) AI Stock Analysis

• Market Cap: $1.27B
• Dividend Yield: 1.35%
• Average Volume (3M): 641.35K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 1.14
• Revenue Growth: 10.27%
• EPS Growth: 3.52%
• Country: US
• Employees: 481
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.23
• Shares Outstanding: 71,726,490
• 10 Day Avg. Volume: 475,877
• 30 Day Avg. Volume: 641,346
• PEG Ratio: 1.05
• Price to Book (P/B): 5.88
• Price to Sales (P/S): 5.21
• P/FCF Ratio: 17.43
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 4.16
• Enterprise Value/Gross Profit: 5.22
• Enterprise Value/Ebitda: 16.89
• 1Y Price Target: $23.67
• Price Target Upside: 33.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.87
• Revenue Forecast (FY): $287.05M

• Rating: 77 Outperform
• Price Target: $20.50 ▲(15.36% Upside)

A10 Networks' overall stock score of 77 reflects its strong financial performance and positive earnings call sentiment, driven by revenue growth and profitability improvements. However, technical analysis presents mixed signals, and the valuation suggests the stock may be overvalued. Continued focus on strategic investments in AI and cybersecurity, along with effective debt management, will be crucial for future growth.

Positive Factors

Revenue Growth

Consistent revenue growth, particularly in the Americas, highlights strong market demand and effective business strategies, supporting long-term expansion.

Profitability Metrics

Improved profitability metrics indicate effective cost management and operational efficiency, enhancing long-term financial sustainability.

Security-Led Revenue Growth

Strong demand for integrated security solutions positions A10 Networks as a leader in cybersecurity, ensuring sustained revenue streams.

Negative Factors

Rising Debt Levels

Increased debt levels may constrain financial flexibility and require careful management to prevent long-term financial strain.

Macroeconomic Headwinds

Macroeconomic challenges in non-Americas regions could hinder global growth and require strategic adjustments to maintain performance.

Slow Growth in Japan

Economic challenges in Japan may impact regional performance, necessitating strategic focus to mitigate potential revenue declines.

A10 Networks Business Overview & Revenue Model

Company Description

A10 Networks, Inc. provides networking solutions in the Americas, Japan, other Asia Pacific, and EMEA countries. The company offers Thunder Application Delivery Controller (ADC) that provides advanced server load balancing; Lightning ADC, a cloud-native software-as-a-service platform to boost the delivery and security of applications and microservices; and Thunder Carrier Grade Networking product, which offers standards-compliant address and protocol translation services for service provider networks. It also provides Thunder Threat Protection System (TPS) for the protection of networks and server resources against massive distributed denial of service attacks; Thunder Secure Sockets Layer (SSL) Insight solution that decrypts SSL-encrypted traffic and forwards it to a third-party security device for deep packet inspection; and Thunder Convergent Firewall, which addresses various critical security capabilities in one package by consolidating various security and networking functions in a single appliance. In addition, the company offers intelligent management and automation tools comprising harmony controller that provides intelligent management, automation, and analytics for secure application delivery in multi-cloud environment; and aGalaxy TPS, a multi-device network management solution. A10 Networks, Inc. delivers its solutions on optimized hardware appliances, bare metal software, containerized software, virtual appliances, and cloud-native software. It serves cloud providers; service providers include cloud, telecommunications, and multiple system and cable operators; government organizations; and enterprises in the technology, industrial, retail, financial, gaming, and education industries. The company markets its products through sales organizations, as well as distribution channel partners, including distributors, value added resellers, and system integrators. A10 Networks, Inc. was incorporated in 2004 and is headquartered in San Jose, California.

How the Company Makes Money

A10 Networks primarily generates revenue through the sale of its hardware and software solutions, including application delivery controllers and security appliances. The company also earns money through subscription-based licensing for its software solutions, maintenance, and support services. A10 Networks has established partnerships with major cloud service providers and technology vendors, enabling it to expand its market reach and integrate its solutions into larger ecosystems. Additionally, the company benefits from recurring revenue through annual support contracts and software updates, contributing to a stable income stream.

A10 Networks Financial Statement Overview

Summary

A10 Networks exhibits strong financial health with consistent revenue growth and profitability. The company maintains a balanced capital structure, though the recent increase in debt should be monitored. Cash flow management remains effective, supporting ongoing operations and potential investments. Continued focus on margin improvement and debt management will be crucial for sustaining financial performance.

Income Statement

A10 Networks demonstrates strong revenue growth with a TTM revenue increase of 2.88%. The company maintains robust profitability with a gross profit margin of 79.66% and a net profit margin of 17.78% in the TTM period. However, the slight decline in margins compared to the previous year indicates potential cost pressures or competitive pricing strategies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.06 in the TTM period, indicating a balanced approach to leveraging. Return on equity is strong at 24.04%, reflecting efficient use of equity to generate profits. The equity ratio of 33.25% suggests a stable financial structure, though the increase in debt warrants monitoring.

Cash Flow

Cash flow analysis reveals a healthy operating cash flow to net income ratio of 0.68 and a free cash flow to net income ratio of 0.82 in the TTM period. Free cash flow growth of 2.01% indicates effective cash management, although the slight decrease in operating cash flow coverage ratio suggests room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	284.41M	261.70M	251.70M	280.34M	250.04M	225.53M
Gross Profit	226.56M	210.28M	203.74M	223.51M	196.54M	175.38M
EBITDA	70.08M	55.26M	47.99M	61.76M	42.70M	24.74M
Net Income	50.57M	50.14M	39.97M	46.91M	94.89M	17.82M
Balance Sheet
Total Assets	620.13M	432.81M	389.81M	369.11M	393.08M	290.81M
Cash, Cash Equivalents and Short-Term Investments	370.86M	195.56M	159.30M	150.99M	185.04M	158.13M
Total Debt	228.83M	11.94M	16.82M	21.64M	23.30M	28.76M
Total Liabilities	413.92M	200.99M	181.93M	188.09M	184.20M	174.84M
Stockholders Equity	206.21M	231.83M	207.88M	181.01M	208.89M	115.97M
Cash Flow
Free Cash Flow	72.05M	78.22M	33.62M	55.30M	44.93M	51.72M
Operating Cash Flow	87.90M	90.49M	44.51M	66.10M	50.10M	55.29M
Investing Cash Flow	-215.22M	-48.35M	13.61M	11.09M	-38.07M	5.20M
Financing Cash Flow	135.81M	-44.26M	-28.85M	-88.14M	-16.38M	-22.95M

A10 Networks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATEN, the sentiment is Positive. The current price of 17.77 is above the 20-day moving average (MA) of 17.13, above the 50-day MA of 17.62, and above the 200-day MA of 17.69, indicating a bullish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 58.18 is Neutral, neither overbought nor oversold. The STOCH value of 90.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATEN.

A10 Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEN	77 Outperform	$1.27B	26.04	23.88%	1.35%	10.27%	3.52%
NTCT	72 Outperform	$1.94B	21.89	5.91%	―	9.60%	―
VRNT	67 Neutral	$1.24B	31.11	4.72%	―	-2.32%	7.70%
RDWR	65 Neutral	$1.03B	63.35	5.09%	―	10.40%	―
TUYA	65 Neutral	$1.43B	28.38	4.87%	4.54%	13.36%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RPD	53 Neutral	$1.05B	46.14	37.09%	―	3.08%	-54.07%

A10 Networks Corporate Events

A10 Networks Reports Q3 2025 Financial Results

On November 4, 2025, A10 Networks announced its financial results for the third quarter of 2025, reporting a revenue increase of 11.9% year-over-year to $74.7 million. The company also declared a quarterly dividend of $0.06 per share, payable on December 1, 2025. The growth is attributed to the rising demand for AI infrastructure and cybersecurity solutions, with A10 Networks’ offerings aligning well with these market trends. The company returned $15.3 million to investors through share repurchases and dividends, and it maintains a strong focus on operational discipline to drive sustainable growth.