A10 Networks (ATEN) AI Stock Analysis

• Market Cap: $1.29B
• Dividend Yield: 1.32%
• Average Volume (3M): 867.42K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 1.05
• Revenue Growth: 11.04%
• EPS Growth: 18.70%
• Country: US
• Employees: 481
• Sector: Technology
• Sector Strength: 97
• Industry: Software - Infrastructure
• EPS (TTM): 0.21
• Shares Outstanding: 72,152,620
• 10 Day Avg. Volume: 963,003
• 30 Day Avg. Volume: 867,424
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 4.62
• Enterprise Value/Gross Profit: 5.80
• Enterprise Value/Ebitda: 19.90
• 1Y Price Target: $22.29
• Price Target Upside: 22.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: $20.00 ▲(10.25% Upside)

A10 Networks' overall stock score is driven by its strong financial performance and positive earnings call, which highlight robust profitability and strategic alignment with industry trends. The technical analysis suggests a neutral trend with potential for upward movement, while the valuation indicates moderate pricing relative to earnings. The company's focus on AI and cybersecurity positions it well for future growth, despite some geographic concentration risks.

Positive Factors

Earnings

A10 Networks (ATEN) reported second quarter revenue of $69.4 million compared to an estimate of $64.2 million, showcasing strong financial performance.

Growth Potential

Analyst's confidence is growing in ATEN's ability to maintain high-single-digit growth and potentially achieve double-digit growth over time.

Product Demand

The company is experiencing an increase in demand from its service provider customers, especially those building out data centers for AI.

Negative Factors

Competition

Competition remains fierce in cybersecurity, and there is not much anticipation for significant cross-sell activity for the newly acquired ThreatX Protect asset near-term.

Market Challenges

Execution has been largely choppy in recent years, and it could take some time before business activity firmly stabilizes, particularly as the macro environment remains challenging.

Services Revenue

The only complaint on the quarter was on services revenue, which came in at $30.2MM, missing the estimate of $32.2MM.

A10 Networks Business Overview & Revenue Model

Company Description

A10 Networks (ATEN) is a technology company that specializes in application delivery and cybersecurity solutions. Founded in 2004 and headquartered in San Jose, California, A10 Networks operates primarily in the networking and security sectors, providing products that enhance application performance, availability, and security for enterprises and service providers. Their core offerings include advanced application delivery controllers (ADCs), DDoS protection solutions, and application security products designed to optimize and secure the delivery of applications across cloud and hybrid environments.

How the Company Makes Money

A10 Networks generates revenue through the sale of its hardware and software solutions, primarily focusing on application delivery controllers, DDoS protection, and security services. The company operates on a subscription-based model for many of its software offerings, allowing for recurring revenue through software licenses and maintenance contracts. Additionally, A10 Networks benefits from professional services and support contracts that accompany its products. The company has formed strategic partnerships with major cloud service providers and technology firms, which enhances its market reach and creates additional revenue opportunities. Furthermore, the increasing demand for cybersecurity solutions in a rapidly evolving digital landscape has bolstered A10's financial performance, as organizations seek to protect their networks from growing threats.

A10 Networks Financial Statement Overview

Summary

A10 Networks exhibits solid financial health with strong profitability, efficient operations, and a stable balance sheet. While revenue growth is moderate, profitability metrics are robust, and cash flow generation is strong, supporting ongoing investments and debt management. The company is well-positioned in the software infrastructure industry, though careful monitoring of debt levels is advised.

Income Statement

A10 Networks demonstrates strong profitability with a consistent gross profit margin around 80% and a net profit margin improving to 18.7% TTM. Revenue growth is modest at 3.5% TTM, but EBIT and EBITDA margins are solid, indicating efficient operations. The company shows a positive trajectory in revenue and profit growth, though the growth rate has slowed compared to previous years.

Balance Sheet

The balance sheet is stable with a manageable debt-to-equity ratio of 1.17 TTM, indicating moderate leverage. Return on equity is robust at 23.3% TTM, reflecting effective use of equity to generate profits. The equity ratio is healthy, suggesting a strong capital structure, though the increase in debt warrants monitoring.

Cash Flow

Cash flow performance is strong, with free cash flow growing by 15% TTM. The operating cash flow to net income ratio is 0.66, indicating good cash generation relative to net income. The free cash flow to net income ratio of 0.82 suggests efficient cash management, supporting the company's liquidity and investment capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	276.44M	261.70M	251.70M	280.34M	250.04M	225.53M
Gross Profit	220.39M	210.28M	203.74M	223.51M	196.54M	175.38M
EBITDA	64.20M	55.26M	47.99M	61.76M	42.70M	24.74M
Net Income	51.02M	50.14M	39.97M	46.91M	94.89M	17.82M
Balance Sheet
Total Assets	607.91M	432.81M	389.81M	369.11M	393.08M	290.81M
Cash, Cash Equivalents and Short-Term Investments	367.38M	195.56M	159.30M	150.99M	185.04M	158.13M
Total Debt	229.83M	11.94M	16.82M	16.85M	19.32M	23.50M
Total Liabilities	403.93M	200.99M	181.93M	188.09M	184.20M	174.84M
Stockholders Equity	203.99M	231.83M	207.88M	181.01M	208.89M	115.97M
Cash Flow
Free Cash Flow	70.64M	78.22M	33.62M	55.30M	44.93M	51.72M
Operating Cash Flow	85.23M	90.49M	44.51M	66.10M	50.10M	55.29M
Investing Cash Flow	-47.12M	-48.35M	13.61M	11.09M	-38.07M	5.20M
Financing Cash Flow	137.36M	-44.26M	-28.85M	-88.14M	-16.38M	-22.95M

A10 Networks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.14
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 18.14 is below the 20-day moving average (MA) of 18.31, below the 50-day MA of 18.44, and above the 200-day MA of 17.86, indicating a neutral trend. The MACD of -0.22 indicates Positive momentum. The RSI at 49.05 is Neutral, neither overbought nor oversold. The STOCH value of 24.31 is Neutral, 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
FFIV	80 Outperform	$18.75B	28.79	20.58%	―	8.94%	22.30%
ATEN	74 Outperform	$1.29B	26.04	24.39%	1.32%	11.04%	18.70%
VRNS	72 Outperform	$6.37B	―	-25.73%	―	14.29%	-14.42%
NTCT	71 Outperform	$1.63B	22.61	4.88%	―	5.29%	―
VRNT	69 Neutral	$1.17B	25.12	5.32%	―	-2.09%	76.96%
RDWR	64 Neutral	$1.06B	77.32	4.46%	―	11.51%	―
Sector *	50 Neutral	AU$1.63B	3.35	-0.63%	3.31%	16.47%	-4.12%

A10 Networks Corporate Events

A10 Networks Reports Q2 2025 Financial Results

On August 5, 2025, A10 Networks announced its financial results for the second quarter of 2025, reporting a 15% year-over-year revenue increase to $69.4 million. The company also declared a quarterly dividend of $0.06 per share, payable on September 2, 2025. The results highlight A10’s strong operational discipline and strategic positioning, benefiting from increased demand in AI data centers and cybersecurity solutions, which contributed to improved profitability and cash flow.

The most recent analyst rating on (ATEN) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on A10 Networks stock, see the ATEN Stock Forecast page.