Fatpipe, Inc. (FATN)
NASDAQ:FATN
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Fatpipe, Inc.
(NASDAQ:FATN)
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Rating:64Neutral
Price Target:
$6.50
▲(48.74% Upside)
Action:Reiterated
Date:05/29/26
The score is held back primarily by weak cash conversion (recurring negative operating and free cash flow) despite strong reported margins and renewed revenue growth. Technicals are supportive with strong momentum, though the elevated RSI suggests the move may be stretched. Valuation appears reasonable at ~21.6x earnings, with no dividend data to add support.
Positive Factors
Very high gross margins and improved net margin
Sustained gross margins near 90% indicate a highly scalable software business with low incremental costs. Improved net margin (~26%) shows the company can convert revenue into lasting profitability, supporting reinvestment in R&D and competitive positioning over multiple quarters.
Negative Factors
Persistent negative operating and free cash flow
Repeated negative operating and free cash flow despite profits means the business struggles to convert earnings into cash. This constrains internal funding for expansion, increases reliance on external capital, and weakens long-term financial resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Very high gross margins and improved net margin
Sustained gross margins near 90% indicate a highly scalable software business with low incremental costs. Improved net margin (~26%) shows the company can convert revenue into lasting profitability, supporting reinvestment in R&D and competitive positioning over multiple quarters.
Read all positive factors
Fatpipe, Inc. (FATN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$85.97M
Dividend YieldN/A
Average Volume (3M)2.24M
Price to Earnings (P/E)17.3
Beta (1Y)1.74
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees154
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.35
Shares Outstanding14,024,468
10 Day Avg. Volume863,335
30 Day Avg. Volume2,237,352
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)1.34
Price to Sales (P/S)1.76
P/FCF Ratio-40.67
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue5.84
Enterprise Value/Gross Profit6.69
Enterprise Value/Ebitda27.67
Forecast
1Y Price Target
$10.00Price Target Upside128.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.19
Revenue Forecast (FY)$22.00M
Fatpipe, Inc. Business Overview & Revenue Model
Company Description
FatPipe, Inc. develops secure software-defined wide area network (SD-WAN), secure access service edge (SASE), and network monitoring service (NMS) software solutions for organizations in the United States and internationally. The company offers SD...
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
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
34
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 19.21M | 16.29M | 17.86M | 15.80M | 12.40M |
| Gross Profit | 14.68M | 15.23M | 16.79M | 14.69M | 11.71M |
| EBITDA | 3.96M | 4.16M | 6.60M | 3.83M | 1.03M |
| Net Income | 4.97M | 1.97M | 4.37M | 2.91M | 483.73K |
Balance Sheet | |||||
| Total Assets | 34.52M | 28.29M | 21.44M | 15.73M | 10.82M |
| Cash, Cash Equivalents and Short-Term Investments | 5.21M | 2.92M | 1.11M | 1.08M | 1.38M |
| Total Debt | 5.71M | 6.59M | 2.83M | 2.63M | 942.18K |
| Total Liabilities | 9.31M | 12.36M | 7.39M | 6.17M | 4.04M |
| Stockholders Equity | 25.22M | 15.93M | 13.94M | 9.37M | 6.57M |
Cash Flow | |||||
| Free Cash Flow | -832.88K | -523.89K | -382.61K | -2.01M | -228.97K |
| Operating Cash Flow | -780.39K | -504.12K | -363.43K | -1.84M | -190.61K |
| Investing Cash Flow | -52.48K | -19.76K | -19.19K | -163.53K | -38.35K |
| Financing Cash Flow | 3.32M | 2.49M | 205.68K | 1.69M | -481.72K |
Fatpipe, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $524.58M | 7.61 | 27.31% | 3.75% | 1.68% | 22.57% | |
66 Neutral | $656.97M | -243.63 | -0.32% | ― | ― | ― | |
64 Neutral | $85.97M | 17.30 | 22.65% | ― | ― | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
44 Neutral | $15.68M | -1.48 | -129.84% | ― | -3.21% | 56.91% | |
43 Neutral | $6.14M | -2.02 | -142.62% | ― | -5.59% | 99.16% |
* Technology Sector Average
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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.