A10 Networks (ATEN) AI Stock Analysis

• Market Cap: $1.50B
• Dividend Yield: 1.33%
• Average Volume (3M): 848.58K
• Price to Earnings (P/E): 30.3
• Beta (1Y): 1.03
• Revenue Growth: 10.27%
• EPS Growth: 3.52%
• Country: US
• Employees: 481
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.26
• Shares Outstanding: 71,724,980
• 10 Day Avg. Volume: 622,972
• 30 Day Avg. Volume: 848,582
• PEG Ratio: -2.06
• Price to Book (P/B): 6.04
• Price to Sales (P/S): 4.40
• P/FCF Ratio: 19.73
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 5.63
• Enterprise Value/Gross Profit: 7.10
• Enterprise Value/Ebitda: 23.80
• 1Y Price Target: $24.50
• Price Target Upside: 16.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.01
• Revenue Forecast (FY): $321.76M

• Rating: 70 Outperform
• Price Target: $21.50 ▲(2.53% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven by strong operational execution and upbeat forward guidance (double-digit growth with margin/EPS expansion), supported by solid profitability and cash generation and constructive price momentum. Offsetting these positives are a notably weakened balance sheet from the recent debt increase and a relatively high P/E, which together raise risk if growth or margins soften.

Positive Factors

High gross margins & profitability

A10’s trailing-twelve-month gross margin near 80% and robust operating/EBITDA margins indicate durable pricing power and a high-value product mix. This software-like profitability supports sustained cash generation, margin expansion potential, and the ability to fund R&D and strategic investments over multiple quarters.

Strong cash generation and liquidity

Consistent operating cash flow (~$85M TTM) and strong free cash flow (~$65M, ~82% of net income) provide durable internal funding. Coupled with a large cash balance and recent shareholder returns, this cash profile supports buybacks, dividends, and reinvestment without immediate reliance on external capital.

Security-led revenue mix and market position

Achieving 72% revenue from security-led solutions reflects a strategic, structural shift to higher-value offerings. This positions A10 in growing, higher-margin segments (application security, DDoS, AI-infrastructure) and strengthens customer stickiness and competitive differentiation over the medium term.

Negative Factors

Increased leverage / weaker balance sheet

A substantial rise in debt to ~$219M and leverage around 1.11x reduces financial flexibility and raises interest and refinancing risk. Higher leverage makes the company more sensitive to earnings volatility and could constrain strategic moves or margin investment if growth or cash flow softens in coming quarters.

APJ (Japan) regional weakness

Persistent APJ weakness—chiefly Japan-driven—reflects structural macro and execution headwinds in a material geography. Continued underperformance in APJ could offset gains elsewhere and represents a regional risk that may limit revenue resilience over the next several quarters if local demand conditions persist.

Concentration in service provider revenue

With 58% of revenue tied to service providers and cloud customers, A10’s top line is exposed to large-customer and cloud capex cycles. While currently benefiting from AI-related demand, this concentration creates durable cyclicality risk if cloud spending moderates or reprioritizes, impacting revenue predictability.

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

Strong software-like profitability and cash generation (TTM ~80% gross margin, healthy operating/EBITDA margins, and solid free-cash-flow conversion), but the balance sheet is a clear drag due to a sharp rise in total debt (~$219M) and higher leverage (~1.11x debt-to-equity), reducing financial flexibility. Revenue is up vs. 2024 but has been uneven over the longer term.

Income Statement

ATEN shows solid profitability for a software infrastructure company, with strong TTM (Trailing-Twelve-Months) gross margin (~80%) and healthy operating and EBITDA margins (about ~20% and ~25%). Revenue has grown versus 2024 (TTM revenue up to ~$291M from ~$262M), but the longer-term top-line trajectory has been uneven (including a decline in 2023). Net margin remains attractive in TTM (~18%), though it is below 2024 (~19%) and well below the unusually high 2021 level, indicating profitability can fluctuate.

Balance Sheet

The balance sheet profile weakened materially in TTM (Trailing-Twelve-Months) as total debt increased sharply to ~$219M, pushing leverage to ~1.11x debt-to-equity versus very low leverage in 2024 (~0.05x). While equity remains positive (~$212M) and returns on equity are strong (TTM ~24%), the higher leverage reduces financial flexibility and increases sensitivity to earnings variability.

Cash Flow

Cash generation remains a strength: TTM (Trailing-Twelve-Months) operating cash flow is ~$85M and free cash flow is ~$65M, translating into good cash conversion versus net income (free cash flow is ~82% of net income). However, free cash flow declined in TTM (about -10% growth), and operating cash flow relative to net income eased versus prior periods, suggesting some near-term working-capital or cash timing headwinds despite still-solid underlying cash profitability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	290.56M	261.70M	251.70M	280.34M	250.04M
Gross Profit	230.51M	210.28M	203.74M	223.51M	196.54M
EBITDA	67.28M	55.26M	47.99M	61.76M	42.70M
Net Income	42.14M	50.14M	39.97M	46.91M	94.89M
Balance Sheet
Total Assets	629.81M	432.81M	389.81M	369.11M	393.08M
Cash, Cash Equivalents and Short-Term Investments	377.85M	195.56M	159.30M	150.99M	185.04M
Total Debt	222.63M	11.94M	16.82M	21.64M	23.30M
Total Liabilities	418.27M	200.99M	181.93M	188.09M	184.20M
Stockholders Equity	211.55M	231.83M	207.88M	181.01M	208.89M
Cash Flow
Free Cash Flow	64.77M	78.22M	33.62M	55.30M	44.93M
Operating Cash Flow	84.89M	90.49M	44.51M	66.10M	50.10M
Investing Cash Flow	-243.64M	-48.35M	13.61M	11.09M	-38.07M
Financing Cash Flow	134.75M	-44.26M	-28.85M	-88.14M	-16.38M

A10 Networks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.97
• 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 20.97 is above the 20-day moving average (MA) of 20.12, above the 50-day MA of 18.86, and above the 200-day MA of 18.07, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 64.16 is Neutral, neither overbought nor oversold. The STOCH value of 91.33 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
NTCT	71 Outperform	$2.17B	8.80	6.07%	―	9.60%	―
ATEN	70 Outperform	$1.50B	30.33	20.61%	1.33%	10.27%	3.52%
RDWR	69 Neutral	$1.09B	50.99	5.95%	―	10.40%	―
TUYA	67 Neutral	$1.51B	22.24	5.77%	4.71%	13.36%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RPD	49 Neutral	$449.39M	42.08	22.00%	―	3.08%	-54.07%

A10 Networks Corporate Events

A10 Networks Reports Record 2025 Results and Dividend

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 2025, the company posted GAAP net income of $42.1 million and non-GAAP net income of $66.3 million, alongside record adjusted EBITDA of $86.0 million and a robust non-GAAP gross margin above 80%. A10 significantly increased shareholder returns during 2025, distributing $86.3 million through share repurchases and dividends, and ended the year with $377.8 million in cash, cash equivalents, and marketable securities. The board declared a quarterly cash dividend of $0.06 per share, payable on March 2, 2026 to stockholders of record as of February 16, 2026, underscoring the company’s ongoing capital return strategy. Management highlighted strong demand for its security-led portfolio, particularly in AI-related and data center deployments, which helped A10 gain market share and drive growth ahead of the broader market, reinforcing its positioning in high-performance, security-centric networking.

The most recent analyst rating on (ATEN) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on A10 Networks stock, see the ATEN Stock Forecast page.