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Fatpipe, Inc. (FATN)
NASDAQ:FATN
US Market
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Fatpipe, Inc. (FATN) AI Stock Analysis

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FATN

Fatpipe, Inc.

(NASDAQ:FATN)

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Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
$7.50
▲(66.30% Upside)
Action:Reiterated
Date:07/31/26
The score is primarily driven by strong reported profitability and a healthy, modestly levered balance sheet, but is meaningfully held back by consistently negative operating and free cash flow. Technically, the stock is above key longer-term moving averages but below the 50-day average, and valuation appears reasonable based on the P/E provided.
Positive Factors
High Profitability
Sustained very high gross and healthy operating/net margins indicate strong product economics and pricing power. These margins give the company structural ability to fund operations and investment from earnings, supporting durable profitability even if revenue growth is modest.
Negative Factors
Negative Cash Generation
Consistent negative operating and free cash flow undermines the quality of reported earnings and limits internal funding for R&D, sales, or acquisitions. Over time, persistent cash burn can force external financing or constrain strategic flexibility despite reported net profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained very high gross and healthy operating/net margins indicate strong product economics and pricing power. These margins give the company structural ability to fund operations and investment from earnings, supporting durable profitability even if revenue growth is modest.
Read all positive factors

Fatpipe, Inc. (FATN) vs. SPDR S&P 500 ETF (SPY)

Fatpipe, Inc. Business Overview & Revenue Model

Company Description
FatPipe, Inc. develops application-aware, secure software-defined wide area network, secure access service edge, and network monitoring service (NMS) software solutions in the United States, India, and internationally. The company offers SD-WAN, a...
How the Company Makes Money
Fatpipe’s primary monetization is expected to come from selling its networking software and/or integrated solutions that enable WAN optimization and multi-link/SD-WAN-type capabilities, typically to enterprises and network operators. Key revenue s...

Fatpipe, Inc. Financial Statement Overview

Summary
Strong profitability and capital structure are partially offset by weak cash conversion. Income statement strength (high gross margin ~87%, operating margin ~21%, net margin ~26%) and a healthy balance sheet (debt-to-equity ~0.23, ROE ~23%) support the score, but persistently negative operating and free cash flow (about -$1.0M TTM) materially reduces financial quality.
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
32
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue20.30M19.21M16.29M17.86M15.80M12.40M
Gross Profit18.41M17.48M15.23M16.79M14.69M11.71M
EBITDA4.21M4.33M4.16M6.60M3.83M1.03M
Net Income5.46M4.97M1.97M4.37M2.91M483.73K
Balance Sheet
Total Assets35.48M34.52M28.29M21.44M15.73M10.82M
Cash, Cash Equivalents and Short-Term Investments4.31M5.21M2.92M1.11M1.08M1.38M
Total Debt5.61M5.71M6.59M2.83M2.63M942.18K
Total Liabilities8.96M9.31M12.36M7.39M6.17M4.04M
Stockholders Equity26.52M25.22M15.93M13.94M9.37M6.57M
Cash Flow
Free Cash Flow-965.39K-832.88K-523.89K-382.61K-2.01M-228.97K
Operating Cash Flow-950.84K-780.39K-504.12K-363.43K-1.84M-190.61K
Investing Cash Flow-14.55K-52.48K-19.76K-19.19K-163.53K-38.35K
Financing Cash Flow-366.85K3.32M2.49M205.68K1.69M-481.72K

Fatpipe, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$618.38M9.2725.92%3.30%2.39%16.43%
66
Neutral
$90.00M16.3723.24%
66
Neutral
$679.88M-228.29-1.33%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
45
Neutral
$17.27M-1.46-129.84%-3.21%56.91%
43
Neutral
$4.84M>-0.01-142.62%-5.59%99.16%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FATN
Fatpipe, Inc.
6.37
0.56
9.64%
OSPN
OneSpan
16.78
4.24
33.82%
VHC
Virnetx Holding
15.08
-0.42
-2.71%
CETX
Cemtrex
2.81
-186.19
-98.51%
INTZ
Intrusion
0.76
-1.05
-58.12%
CGNT
Cognyte Software
9.20
0.65
7.60%
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.Date of analysis: Jul 31, 2026