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A10 Networks
(NYSE:ATEN)
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Rating:64Neutral
Price Target:
$37.00
▲(34.30% Upside)
Action:Downgraded
Date:06/27/26
ATEN scores as moderately attractive, led by solid profitability and constructive reiterated guidance supported by strong Q1 execution. The score is held back by higher balance-sheet leverage and weakening recent free-cash-flow momentum, while technicals show an uptrend but overbought conditions and valuation is expensive given the high P/E and modest yield.
Positive Factors
High Profitability & Margins
A10’s very high gross margin (~80%) and adjusted EBITDA near 30% indicate durable pricing power and a software-lean product mix. These margins support sustained cash generation, room to fund R&D and channel expansion, and resilience to moderate demand swings over coming quarters.
Negative Factors
Increased Financial Leverage
Leverage rising to roughly equal equity materially reduces financial flexibility. Higher debt increases sensitivity to slower revenue or margin deterioration, elevates interest expense risk, and constrains strategic optionality (M&A, buybacks, or large investments) if operating momentum fades.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability & Margins
A10’s very high gross margin (~80%) and adjusted EBITDA near 30% indicate durable pricing power and a software-lean product mix. These margins support sustained cash generation, room to fund R&D and channel expansion, and resilience to moderate demand swings over coming quarters.
Read all positive factors
A10 Networks Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyA10 Networks (ATEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.59B
Dividend Yield0.67%
Average Volume (3M)1.24M
Price to Earnings (P/E)57.1
Beta (1Y)1.07
Revenue Growth12.08%
EPS Growth-8.14%
CountryUS
Employees494
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.63
Shares Outstanding71,998,180
10 Day Avg. Volume1,137,582
30 Day Avg. Volume1,239,709
Financial Highlights & Ratios
PEG Ratio-2.07
Price to Book (P/B)6.04
Price to Sales (P/S)4.40
P/FCF Ratio19.73
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$34.00Price Target Upside23.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)1.04
Revenue Forecast (FY)$324.76M
A10 Networks Business Overview & Revenue Model
Company Description
A10 Networks, Inc. delivers networking solutions across global markets, including North and South America, Japan, the broader Asia Pacific region, and Europe, the Middle East, and Africa (EMEA). The company's product suite features the Thunder App...
How the Company Makes Money
A10 Networks primarily makes money by selling its application security and infrastructure products and the related ongoing support and services. Key revenue streams include: (1) Product revenue from licensing and selling its software and hardware-...
A10 Networks Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial picture: strong revenue and product growth (13.4% and 22.3% YoY), high gross margins (80.6%), robust adjusted EBITDA (30% of revenue) and solid balance sheet metrics, supported by a strategic AI infrastructure win that underscores market relevance. Notable near-term headwinds include supply-chain and memory cost/lead-time pressures, temporary cash-flow timing impacts, regional demand softness (EMEA/APJ), services lagging product growth, and customer concentration (one customer = ~5% of revenue). Management reiterated full-year guidance and emphasized confidence in the long-term operating model while remaining cautious on near-term variability. Overall, the positive financial results and strategic positioning outweigh the manageable near-term challenges.Positive Updates
Strong Quarterly Revenue Growth
Revenue grew 13.4% year-over-year to $75.0 million in Q1 FY2026, marking the third quarter in four with double-digit growth and contributing to a trailing 12-month revenue growth of 12.1%.
Negative Updates
Supply Chain and Component Cost Pressure
The company is experiencing delivery and cost challenges, primarily related to DDR memory and other component shortages, causing higher input costs, longer lead times and allocation constraints that pressured fulfillment and required active supply management.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Quarterly Revenue Growth
Revenue grew 13.4% year-over-year to $75.0 million in Q1 FY2026, marking the third quarter in four with double-digit growth and contributing to a trailing 12-month revenue growth of 12.1%.
Read all positive updates
Company Guidance
A10 reiterated its 2026 guidance: revenue growth of 10%–12%, adjusted EBITDA margins of 28%–30%, and EPS growth of 12%–14%, while saying full‑year free cash flow is expected to expand year‑over‑year; that outlook is supported by Q1 results of $75.0M revenue (13.4% YoY), product revenue $44.0M (59% of total, +22.3% YoY), adjusted EBITDA $22.5M (30% of revenue), non‑GAAP gross margin 80.6%, operating margin 25.2%, net income $17.7M, EPS $0.25 basic / $0.24 diluted on 72.9M diluted shares, and trailing‑12‑month revenue growth of 12.1% with TTM adjusted EBITDA margin of 29.7%; balance‑sheet and capital‑return metrics cited included $369.8M cash and marketable securities, $147.2M deferred revenue, $4.3M in cash dividends and $2.5M in share repurchases in Q1, an approved quarterly dividend of $0.06/share (payable June 1, 2026) and $53.4M remaining on a $75M repurchase authorization.A10 Networks Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
56
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 299.42M | 290.56M | 261.70M | 251.70M | 280.34M | 250.04M |
| Gross Profit | 238.04M | 230.51M | 210.28M | 203.74M | 223.51M | 196.54M |
| EBITDA | 72.98M | 67.28M | 76.78M | 53.14M | 61.76M | 42.70M |
| Net Income | 44.63M | 42.14M | 50.14M | 39.97M | 46.91M | 94.89M |
Balance Sheet | ||||||
| Total Assets | 634.42M | 629.81M | 432.81M | 389.81M | 369.11M | 393.08M |
| Cash, Cash Equivalents and Short-Term Investments | 369.76M | 377.85M | 195.56M | 159.30M | 150.99M | 185.04M |
| Total Debt | 219.15M | 222.63M | 11.94M | 16.82M | 21.64M | 23.30M |
| Total Liabilities | 413.58M | 418.27M | 200.99M | 181.93M | 188.09M | 184.20M |
| Stockholders Equity | 220.84M | 211.55M | 231.83M | 207.88M | 181.01M | 208.89M |
Cash Flow | ||||||
| Free Cash Flow | 51.37M | 64.77M | 78.22M | 33.62M | 55.30M | 44.93M |
| Operating Cash Flow | 69.92M | 84.89M | 90.49M | 44.51M | 66.10M | 50.10M |
| Investing Cash Flow | -217.57M | -243.64M | -48.35M | 13.61M | 11.09M | -38.07M |
| Financing Cash Flow | -38.30M | 134.75M | -44.26M | -28.85M | -88.14M | -16.38M |
A10 Networks Technical Analysis
Positive
27.55
Price Trends
32.32
Positive
27.90
Positive
22.87
Positive
Market Momentum
1.27
Positive
55.86
Neutral
30.15
Neutral
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 27.55 is below the 20-day moving average (MA) of 36.04, below the 50-day MA of 32.32, and above the 200-day MA of 22.87, indicating a neutral trend. The MACD of 1.27 indicates Positive momentum. The RSI at 55.86 is Neutral, neither overbought nor oversold. The STOCH value of 30.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATEN.
A10 Networks Risk Analysis
A10 Networks disclosed 59 risk factors in its most recent earnings report. A10 Networks reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
A10 Networks Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.95B | 31.32 | 5.96% | ― | 4.47% | ― | |
73 Outperform | $1.31B | 67.07 | 5.71% | ― | 9.83% | 65.00% | |
72 Outperform | $1.10B | 16.96 | 6.22% | 4.71% | 5.43% | 208.11% | |
64 Neutral | $2.59B | 57.08 | 21.19% | 1.33% | 12.08% | -8.14% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $815.33M | 35.38 | 16.38% | ― | 1.19% | -25.24% |
* Technology Sector Average
ATEN
A10 Networks
35.96
17.38
93.49%
NTCT
Netscout Systems
41.30
18.32
79.72%
RDWR
Radware
30.29
0.50
1.68%
RPD
Rapid7
12.20
-10.47
-46.18%
TUYA
Tuya
1.74
-0.65
-27.32%
A10 Networks Corporate Events
Executive/Board ChangesRegulatory Filings and Compliance
A10 Networks EVP Terminated With Limited Equity Severance
Neutral
May 7, 2026
A10 Networks, Inc. disclosed that its Executive Vice President of Worldwide Sales and Marketing, Sheen Khoury, was terminated effective April 27, 2026, and subsequently entered into a Separation Agreement and Release on May 2, 2026. Under the agre...
Business Operations and StrategyExecutive/Board Changes
A10 Networks Terminates Executive Vice President of Sales
Negative
May 1, 2026
On April 27, 2026, A10 Networks, Inc. terminated Sheen Khoury from the role of Executive Vice President of Worldwide Sales and Marketing, effective immediately. The company stated that it does not expect any disruption to its current operations as...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
A10 Networks Reports Strong Q1 Results, Declares Dividend
Positive
Apr 28, 2026
On April 28, 2026, A10 Networks reported first-quarter 2026 revenue of $75.0 million, up 13.4% year over year, with GAAP net income of $12.0 million and non-GAAP net income of $17.7 million. The company posted GAAP gross margin of 79.6%, non-GAAP ...
Executive/Board ChangesShareholder Meetings
A10 Networks Stockholders Approve Directors and Governance Proposals
Positive
Apr 23, 2026
A10 Networks, Inc. held its 2026 Annual Meeting of Stockholders on April 22, 2026, with 92.56% of eligible shares represented in person or by proxy. Stockholders elected five directors, including Tor R. Braham, Peter Y. Chung, Eric Singer, Dhrupad...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.