A10 Networks (ATEN)
NYSE:ATEN
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A10 Networks
(NYSE:ATEN)
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Rating:71Outperform
Price Target:
$30.00
▲(8.89% Upside)
Action:Upgraded
Date:05/02/26
ATEN scores well on profitability and a constructive price trend, with a supportive earnings outlook and reiterated growth/margin guidance. The main offsets are increased balance-sheet leverage and weaker recent free-cash-flow momentum, while valuation is on the expensive side relative to the modest dividend yield.
Positive Factors
High gross & EBITDA margins
Sustained ~80% gross margins and ~30% adjusted EBITDA indicate durable pricing power and capital-light product economics typical of infrastructure software. These margins support reinvestment, R&D, and shareholder returns while insulating profitability from modest revenue swings over the next several quarters.
Negative Factors
Rising leverage
Debt roughly equal to equity represents a material shift from prior lower-leverage levels and reduces financial flexibility. Higher leverage increases interest and refinancing sensitivity, constraining capital allocation and heightening downside risk if revenue or cash conversion weakens over the coming 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross & EBITDA margins
Sustained ~80% gross margins and ~30% adjusted EBITDA indicate durable pricing power and capital-light product economics typical of infrastructure software. These margins support reinvestment, R&D, and shareholder returns while insulating profitability from modest revenue swings over the next several 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
$2.02B
Dividend Yield1.33%
Average Volume (3M)1.07M
Price to Earnings (P/E)34.4
Beta (1Y)1.06
Revenue Growth12.08%
EPS Growth-8.14%
CountryUS
Employees481
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.63
Shares Outstanding71,998,180
10 Day Avg. Volume937,408
30 Day Avg. Volume1,065,016
Financial Highlights & Ratios
PEG Ratio-2.06
Price to Book (P/B)6.04
Price to Sales (P/S)4.40
P/FCF Ratio19.73
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue7.34
Enterprise Value/Gross Profit9.23
Enterprise Value/Ebitda30.41
Forecast
1Y Price Target
$29.60Price Target Upside7.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)1.03
Revenue Forecast (FY)$324.70M
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-...
How the Company Makes Money
A10 Networks makes money primarily by selling software and appliances (or virtualized equivalents) that provide application delivery and security functions, plus recurring support and maintenance services tied to those deployments. Revenue general...
A10 Networks Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 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 | 72.25M | 67.28M | 55.26M | 47.99M | 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
25.03
Positive
21.81
Positive
19.68
Positive
Market Momentum
0.82
Positive
65.17
Neutral
74.54
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 above the 20-day moving average (MA) of 27.41, above the 50-day MA of 25.03, and above the 200-day MA of 19.68, indicating a bullish trend. The MACD of 0.82 indicates Positive momentum. The RSI at 65.17 is Neutral, neither overbought nor oversold. The STOCH value of 74.54 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 | $2.78B | 23.87 | 5.96% | ― | 4.47% | ― | |
71 Outperform | $2.02B | 34.43 | 21.19% | 1.33% | 12.08% | -8.14% | |
71 Outperform | $1.21B | 79.46 | 5.71% | ― | 9.83% | 65.00% | |
69 Neutral | $1.31B | 22.46 | 6.22% | 4.71% | 5.43% | 208.11% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $449.77M | 80.67 | 16.38% | ― | 1.19% | -25.24% |
* Technology Sector Average
ATEN
A10 Networks
28.28
11.03
63.93%
NTCT
Netscout Systems
39.00
15.48
65.82%
RDWR
Radware
28.34
4.66
19.68%
RPD
Rapid7
6.96
-16.40
-70.21%
TUYA
Tuya
2.10
-0.36
-14.67%
A10 Networks Corporate Events
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...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
A10 Networks Reports Record 2025 Results and Dividend
Positive
Feb 4, 2026
On February 4, 2026, A10 Networks reported record financial results for the fourth quarter and full year ended December 31, 2025, with quarterly revenue reaching $80.4 million and annual revenue rising 11% year over year to $290.6 million. For 202...
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.