A10 Networks (ATEN)
NYSE:ATEN
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A10 Networks
(NYSE:ATEN)
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Rating:70Outperform
Price Target:
$27.00
▲(7.87% Upside)
Action:ReiteratedDate: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
Margin Sustainability
A10’s software-like gross margins near 80% and industry-competitive operating/EBITDA margins reflect high product value and recurring service attach. Sustained high gross margins provide durable operating leverage, enabling margin expansion, reinvestment and resilient profitability through cycles.
Negative Factors
Weakened Balance Sheet / Higher Leverage
A sharp increase in debt materially reduces financial flexibility and raises fixed obligations, making the company more sensitive to earnings volatility. Higher leverage limits downside protection, could constrain investment or buybacks if growth or margins slip, and increases refinancing risk in stress scenarios.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Sustainability
A10’s software-like gross margins near 80% and industry-competitive operating/EBITDA margins reflect high product value and recurring service attach. Sustained high gross margins provide durable operating leverage, enabling margin expansion, reinvestment and resilient profitability through cycles.
Read all positive factors
A10 Networks (ATEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.80B
Dividend Yield1.33%
Average Volume (3M)989.64K
Price to Earnings (P/E)30.3
Beta (1Y)1.01
Revenue Growth10.27%
EPS Growth3.52%
CountryUS
Employees481
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.26
Shares Outstanding71,724,980
10 Day Avg. Volume883,538
30 Day Avg. Volume989,644
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 Cap1.08
Enterprise Value/Revenue6.69
Enterprise Value/Gross Profit8.43
Enterprise Value/Ebitda28.26
Forecast
1Y Price Target
$24.50Price Target Upside-2.12% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.01
Revenue Forecast (FY)$321.76M
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 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 Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial performance with multiple records (quarterly and full-year revenue, record adjusted EBITDA and high gross margins), clear strategic progress (security-led revenue milestone and large customer wins), robust cash balance and shareholder returns, and an actionable 2026 growth/ margin outlook. Headwinds include regional weakness in APJ (Japan), flat non-cloud service provider revenue, supply-chain and input cost uncertainty, and early-stage AI-related risk/uncertainty. Overall, positive momentum and disciplined financial execution outweigh the noted risks.Positive Updates
Record Quarterly and Full-Year Revenue
Q4 revenue of $80.4M, up 8.3% year-over-year (largest single quarter on record). Full-year 2025 revenue of $290.6M, up 11% year-over-year.
Negative Updates
APJ Weakness (Japan-driven)
APJ revenue declined for the year with the majority of the weakness concentrated in Japan, driven by low GDP growth, persistent inflation concerns, and tariff uncertainty; APJ underperformance offset gains in Americas and EMEA.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly and Full-Year Revenue
Q4 revenue of $80.4M, up 8.3% year-over-year (largest single quarter on record). Full-year 2025 revenue of $290.6M, up 11% year-over-year.
Read all positive updates
Company Guidance
A10 guided 2026 to deliver revenue growth of 10%–12% over 2025’s $290.6M (implying roughly $319.7M–$325.5M), with non‑GAAP gross margin expected in line with historical trends and the company’s ~82% target (FY25 non‑GAAP gross margin was 80.6%, Q4 was 80.8%), an expectation to expand net and EBITDA margins beyond current levels (FY25 adjusted EBITDA was $86M, or 29.6% of revenue), and EPS growth that will exceed the revenue growth rate, while noting they will manage input/supply cost pressures and provide further detail at an upcoming Investor Day.A10 Networks Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
52
Neutral
Cash Flow
71
Positive
| 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
Positive
25.03
Price Trends
20.72
Positive
19.09
Positive
18.51
Positive
Market Momentum
1.13
Negative
76.40
Negative
92.30
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 25.03 is above the 20-day moving average (MA) of 22.54, above the 50-day MA of 20.72, and above the 200-day MA of 18.51, indicating a bullish trend. The MACD of 1.13 indicates Negative momentum. The RSI at 76.40 is Negative, neither overbought nor oversold. The STOCH value of 92.30 is Negative, 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.43B | 8.80 | 6.07% | ― | 9.60% | ― | |
70 Outperform | $1.80B | 30.33 | 20.61% | 1.33% | 10.27% | 3.52% | |
69 Neutral | $1.18B | 50.99 | 5.95% | ― | 10.40% | ― | |
67 Neutral | $1.46B | 22.24 | 5.77% | 4.71% | 13.36% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
49 Neutral | $385.47M | 42.08 | 22.00% | ― | 3.08% | -54.07% |
* Technology Sector Average
ATEN
A10 Networks
25.03
9.11
57.25%
NTCT
Netscout Systems
33.61
13.10
63.87%
RDWR
Radware
27.40
6.86
33.40%
RPD
Rapid7
5.49
-19.26
-77.82%
TUYA
Tuya
2.39
0.32
15.46%
A10 Networks Corporate Events
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.