Open the filing on EDGARA10 Networks Reports Financial Results for the Fourth Quarter and Full Year of 2025
Company Delivers Record Revenue and Profitability for 2025
SAN JOSE, Calif., February 4, 2026 -- A10 Networks, Inc. (NYSE: ATEN), a leading provider of secure application services and solutions, today announced financial results for its fourth quarter and full-year ended December 31, 2025.
Fourth Quarter 2025 Financial Summary
- Record quarterly revenue of $80.4 million.
- GAAP gross margin of 78.7%; non-GAAP gross margin of 80.8%.
- GAAP net income of $9.9 million, or $0.14 per diluted share, non-GAAP net income of $19.1 million, or $0.26 per diluted share.
- The Company returned $11.2 million to investors, having repurchased 406 thousand shares during the quarter at an average price of $17.02 per share for a total of $6.9 million and having paid $4.3 million in cash dividends in the quarter.
Full-Year 2025 Financial Summary
- Record annual revenue of $290.6 million, up 11.0% year-over-year compared to $261.7 million in 2024.
- GAAP gross margin of 79.3%; non-GAAP gross margin of 80.6%.
- GAAP net income of $42.1 million, or $0.57 per diluted share, non-GAAP net income of $66.3 million, or $0.90 per diluted share.
- Non-GAAP record Adjusted EBITDA of $86.0 million and record Adjusted EBITDA as % of revenue of 29.6%.
- The Company returned $86.3 million to investors, having repurchased 3.67 million shares during 2025 at an average price of $18.77 per share for a total of $68.9 million and having paid $17.4 million in cash dividends throughout the year. The Company has $53.4 million remaining on its $75.0 million share repurchase authorization.
- The Board of Directors approved a quarterly cash dividend of $0.06 per share, payable March 2, 2026 to stockholders of record at the close of business on February 16, 2026.
- As of December 31, 2025, A10 had $377.8 million in cash, cash equivalents, and marketable securities, compared with $195.5 million as of December 31, 2024.
A reconciliation between GAAP and non-GAAP information is contained in the financial statements below.
“A10 continues to benefit from strong end demand across its portfolio, capturing market share as customers deploy our solutions to support AI infrastructure and driving growth ahead of the market,” said Dhrupad Trivedi, President and Chief Executive Officer of A10 Networks. “A10’s strategic position, aligned with the increasingly pressing demands for high-throughput, low-latency, and integrated security, are benefitting us as we work with customers on their data center buildouts. Security-led revenue has now achieved our stated target model of two-thirds of our revenue and continues to drive consistent growth.”
“In 2025, we continued to expand the business driven by next-generation networking and integrated cybersecurity solutions while maintaining strong alignment with our traditional legacy network customers,” continued Trivedi. “We continue to deliver on our business model goals. We generated nearly $85 million in cash flow from operations, enabling continued investment in our business and the return of capital to our shareholders. Building on our execution in 2025, operational discipline remains foundational to our business model as we enter 2026, supporting sustained top- and bottom-line growth.”
Outlook
For 2026, A10 management expects to deliver both top- and bottom-line growth. Management currently expects:
- Increased full-year revenue growth outlook of 10-12% over the prior year
- Non-GAAP gross margin in-line with historical trends and stated business model goals of 80-82%
- Expanding net margin and EBITDA margin
- EPS growth exceeding revenue growth rate, representing 12-14% growth year-over-year
“Our outlook reflects our current expectations and market environment,” added Trivedi. “We plan to host an Investor event during the quarter to provide additional strategic context around our growth drivers and market positioning.”
Conference Call
Management will host a call at 1:30 p.m. Pacific time (4:30 p.m. Eastern time) today, February 4, 2026, to discuss these results. Interested parties may access the conference call by dialing (888) 506-0062 (toll-free) or (973) 528-0011 (international) and referencing access code: 581285.
A live audio webcast of the conference call will be accessible from the “Investor Relations” section of A10 Networks' website at investors.a10networks.com. The webcast will be archived for one year. A telephonic replay of the conference call will be available until February 18, 2026 and may be accessed by dialing (877) 481-4010 (toll-free) or (919) 882-2331 (international) and entering the passcode: 53451.
Forward-Looking Statements
Forward-looking statements notice
This press release contains “forward-looking statements,” including statements regarding our quarterly dividend payments, strategy, positioning, demand, growth, investor returns and outlook for 2026. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on assumptions that may prove to be incorrect, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Factors that may cause actual results to differ include any unforeseen need for capital which may require us to divert funds we may have otherwise used for the dividend program or stock repurchase program, which may in turn negatively impact our ability to administer the quarterly dividends or the repurchase of our common stock; a significant decline in global macroeconomic or political conditions that have an adverse impact on our business and financial results; an expansion of adversarial global trade dynamics or other changes to international trade regulations; business interruptions related to our supply chain; our ability to manage our business and expenses if customers cancel or delay orders; execution risks related to closing key deals and improving our execution; the continued market adoption of our products; our ability to successfully anticipate market needs and opportunities; our timely development of new products and features; our ability to achieve or maintain profitability; any loss or delay of expected purchases by our largest end-customers; our ability to maintain or improve our competitive position; competitive and execution risks related to cloud-based computing trends; our ability to attract and retain new end-customers and our largest end-consumers; our ability to maintain and enhance our brand and reputation; changes demanded by our customers in the deployment and payment model for our products; continued growth rates in markets relating to network security; the success of any future acquisitions or investments in complementary companies, products, services or technologies; the ability of our sales team to execute well; our ability to shorten our close cycles; the ability of our channel partners to sell our products; variations in product mix or geographic locations of our sales; risks associated with our presence in international markets; weaknesses or deficiencies in our internal control over financial reporting; our ability to timely file periodic reports required to be filed under the Securities Exchange Act of 1934; and other risks that are described in “Risk Factors” in our periodic filings with the Securities and Exchange Commission, including our Form 10-K filed with the Securities and Exchange Commission on February 25, 2025. We do not intend to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), we refer to certain non-GAAP financial measures, including non-GAAP net income, non-GAAP net income per basic and diluted share (or non-GAAP EPS), non-GAAP gross profit and gross margin, non-GAAP operating expenses, non-GAAP operating income and operating margin, Adjusted EBITDA and Adjusted EBITDA margin. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies.
A10 Networks considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the company, exclusive of unusual events or factors that do not directly affect what we consider to be our core operating performance and are used by the company's management for that purpose.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
We define non-GAAP net income as our GAAP net income excluding: (i) stock-based compensation and related payroll tax, (ii) acquisition-related expense, (iii) amortization of purchased intangible assets, (iv) asset impairment expense, (v) tax planning expense, (vi) workforce reduction expense, (vii) one-time legal expense and (viii) income tax effect of non-GAAP items (i) to (vii) listed above. We define non-GAAP net income per basic and diluted share as our non-GAAP net income divided by our basic and diluted weighted-average shares outstanding. We define non-GAAP gross profit as our GAAP gross profit excluding (i) stock-based compensation and related payroll tax, (ii) amortization of purchased intangible assets, (iii) asset impairment expense and (iv) workforce reduction expense. We define non-GAAP gross margin as our non-GAAP gross profit divided by our GAAP revenue. We define non-GAAP operating expenses as our GAAP operating expenses excluding (i) stock-based compensation and related payroll tax, (ii) acquisition-related expense, (iii) amortization of purchased intangible assets, (iv) tax planning expense, (v) workforce reduction expense and (vi) one-time legal expense. We define non-GAAP operating income as our GAAP income from operations excluding (i) stock-based compensation and related payroll tax, (ii) acquisition-related expense, (iii) amortization of purchased intangible assets, (iv) asset impairment expense, (v) tax planning expense, (vi) workforce reduction expense and (vii) one-time legal expense. We define non-GAAP operating margin as our non-GAAP operating income divided by our GAAP revenue. We define Adjusted EBITDA as our GAAP net income excluding (i) interest and other income, net, (ii) depreciation and amortization expense, (iii) provision for income taxes, (iv) stock-based compensation and related payroll tax, (v) acquisition-related expense, (vi) asset impairment expense, (vii) tax planning expense, (viii) workforce reduction expense and (ix) one-time legal expense. We define Adjusted EBITDA margin as our Adjusted EBITDA divided by our GAAP revenue.
Non-GAAP financial measures are presented for supplemental informational purposes only for understanding the company's operating results.
About A10 Networks
A10 Networks (NYSE: ATEN) delivers secure application and network solutions that protect, optimize, and scale business-critical systems across on-premises, hybrid cloud, and edge environments. Our portfolio enables large enterprises, service providers, and cloud platforms worldwide to deliver performance, reliability, and protection against cyber threats, while preparing their networks for the demands of AI and next-generation applications. Founded in 2004 and headquartered in San Jose, California, A10 Networks serves over 7,000 global customers. For more information, visit A10networks.com and follow us at A10Networks.
The A10 logo and A10 Networks are trademarks or registered trademarks of A10 Networks, Inc. in the United States and other countries. All other trademarks are the property of their respective owners.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts, on a GAAP Basis)
| Three Months Ended December 31, | Years Ended December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Revenue: | | | | |
| Products | $48,825 | | $43,335 | | $167,086 | | $139,799 | |
| Services | 31,530 | | 30,869 | | 123,471 | | 121,897 | |
| Total revenue | 80,355 | | 74,204 | | 290,557 | | 261,696 | |
| Cost of revenue: | | | | |
| Products | 9,842 | | 10,075 | | 33,403 | | 31,218 | |
| Services | 7,256 | | 4,823 | | 26,639 | | 20,201 | |
| Total cost of revenue | 17,098 | | 14,898 | | 60,042 | | 51,419 | |
| Gross profit | 63,257 | | 59,306 | | 230,515 | | 210,277 | |
| Operating expenses: | | | | |
| Sales and marketing | 22,427 | | 21,622 | | 84,467 | | 83,300 | |
| Research and development | 18,571 | | 13,192 | | 69,104 | | 57,726 | |
| General and administrative | 7,200 | | 6,096 | | 29,802 | | 25,283 | |
| Total operating expenses | 48,198 | | 40,910 | | 183,373 | | 166,309 | |
| Income from operations | 15,059 | | 18,396 | | 47,142 | | 43,968 | |
| Non-operating income (expense): | | | | |
| Interest income | 3,458 | | 1,671 | | 11,628 | | 6,747 | |
| Interest and other income (expense), net | (2,495) | | 1,440 | | (6,348) | | 7,384 | |
| Total non-operating income (expense), net | 963 | | 3,111 | | 5,280 | | 14,131 | |
| Income before income taxes | 16,022 | | 21,507 | | 52,422 | | 58,099 | |
| Provision for income taxes | 6,157 | | 3,206 | | 10,285 | | 7,959 | |
| Net income | $9,865 | | $18,301 | | $42,137 | | $50,140 | |
| Net income per share: | | | | |
| Basic | $0.14 | | $0.25 | | $0.58 | | $0.68 | |
| Diluted | $0.14 | | $0.24 | | $0.57 | | $0.67 | |
| Weighted-average shares used in computing net income per share: | | | | |
| Basic | 71,582 | | 73,691 | | 72,253 | | 74,088 | |
| Diluted | 72,678 | | 74,975 | | 73,590 | | 75,302 | |
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME
(unaudited, in thousands, except per share amounts)
| Three Months Ended December 31, | Years Ended December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| GAAP net income | $9,865 | $18,301 | $42,137 | $50,140 |
| Non-GAAP items: | | | | |
| Stock-based compensation and related payroll tax | 4,863 | 4,811 | 20,702 | 17,625 |
| Acquisition-related expense | 389 | - | 1,772 | - |
| Amortization of purchased intangible assets | 379 | - | 1,342 | - |
| Asset impairment expense | 951 | - | 951 | - |
| Tax planning expense | - | - | 150 | 500 |
| Workforce reduction expense | - | 1,075 | - | 1,075 |
| One-time legal expense | 60 | - | 1,329 | 71 |
| Income tax-effect of non-GAAP items | 2,590 | (1,232) | (2,097) | (4,575) |
| Total non-GAAP items | 9,232 | 4,654 | 24,149 | 14,696 |
| Non-GAAP net income | $19,097 | $22,955 | $66,286 | $64,836 |
| GAAP net income per share: | | | | |
| Basic | $0.14 | $0.25 | $0.58 | $0.68 |
| Diluted | $0.14 | $0.24 | $0.57 | $0.67 |
| Non-GAAP items: | | | | |
| Stock-based compensation and related payroll tax | 0.07 | 0.07 | 0.28 | 0.23 |
| Acquisition-related expense | 0.01 | - | 0.02 | - |
| Amortization of purchased intangible assets | - | - | 0.02 | - |
| Asset impairment expense | 0.01 | - | 0.01 | - |
| Tax planning expense | - | - | - | 0.01 |
| Workforce reduction expense | - | 0.01 | - | 0.01 |
| One-time legal expense | - | - | 0.02 | - |
| Income tax-effect of non-GAAP items | 0.04 | (0.01) | (0.03) | (0.06) |
| Total non-GAAP items | 0.13 | 0.07 | 0.32 | 0.19 |
| Non-GAAP net income per share: | | | | |
| Basic | $0.27 | $0.31 | $0.92 | $0.88 |
| Diluted | $0.26 | $0.31 | $0.90 | $0.86 |
| Weighted average shares used in computing net income per share: | | | | |
| Basic | 71,582 | 73,691 | 72,253 | 74,088 |
| Diluted | 72,678 | 74,975 | 73,590 | 75,302 |
(1)Net income and earnings per share excluding adjustments are non-GAAP financial measures presented as supplemental financial measures to enable a user of the financial information to understand the impact of these adjustments on reported results. These financial measures should not be considered an alternative to net income, operating income, cash flows provided by operating activities, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our adjusted net income and earnings per share may not be comparable to similarly titled measures of another company because companies may not all calculate adjusted net income and earnings per share in the same manner.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except par value, on a GAAP Basis)
| As of December 31, 2025 | As of December 31, 2024 |
|---|
| ASSETS |
| Current assets: | | |
| Cash and cash equivalents | $71,139 | $95,129 |
| Marketable securities | 306,714 | 100,429 |
| Accounts receivable, net of allowances of $66 and $465, respectively | 62,069 | 76,687 |
| Inventory | 18,032 | 22,005 |
| Prepaid expenses and other current assets | 18,000 | 13,038 |
| Total current assets | 475,954 | 307,288 |
| Property and equipment, net | 50,221 | 39,142 |
| Goodwill | 15,134 | 1,307 |
| Intangible assets | 6,259 | - |
| Deferred tax assets, net | 62,109 | 62,364 |
| Other non-current assets | 20,136 | 22,714 |
| Total assets | $629,813 | $432,815 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
| Current liabilities: | | |
| Accounts payable | $11,694 | $12,542 |
| Accrued and other liabilities | 41,132 | 32,696 |
| Deferred revenue, current | 80,824 | 78,335 |
| Total current liabilities | 133,650 | 123,573 |
| Deferred revenue, non-current | 61,982 | 69,924 |
| Long-term debt | 218,787 | - |
| Other non-current liabilities | 3,848 | 7,489 |
| Total liabilities | 418,267 | 200,986 |
| Stockholders' equity: |
| Common stock, $0.00001 par value: 500,000 shares authorized; 91,996 and 90,520 shares issued and 71,498 and 73,693 shares outstanding, respectively | 1 | 1 |
| Treasury stock, at cost: 20,468 and 16,827 shares, respectively | (249,912) | (180,992) |
| Additional paid-in-capital | 531,790 | 508,387 |
| Dividends paid | (72,785) | (55,417) |
| Accumulated other comprehensive income | 659 | 194 |
| Retained earnings (accumulated deficit) | 1,793 | (40,344) |
| Total stockholders' equity | 211,546 | 231,829 |
| Total liabilities and stockholders' equity | $629,813 | $432,815 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands, on a GAAP Basis)
| Years Ended December 31, |
|---|
| 2025 | 2024 |
|---|
| Cash flows from operating activities: | | |
| Net income | $42,137 | | $50,140 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | |
| Depreciation and amortization | 14,859 | | 11,293 | |
| Stock-based compensation | 20,030 | | 17,048 | |
| Provision for (recovery from) credit losses and sales returns | (399) | | 59 | |
| Other non-cash items | 3,282 | | (424) | |
| Changes in operating assets and liabilities: | | |
| Accounts receivable | 14,569 | | (2,555) | |
| Inventory | 3,659 | | (760) | |
| Prepaid expenses and other assets | (8,326) | | (67) | |
| Accounts payable | (1,516) | | 2,224 | |
| Accrued and other liabilities | 4,568 | | 6,609 | |
| Deferred revenue | (7,969) | | 6,925 | |
| Net cash provided by operating activities | 84,894 | | 90,492 | |
| Cash flows from investing activities: | | |
| Proceeds from sales of marketable securities | 614 | | 25,531 | |
| Proceeds from maturities of marketable securities | 137,004 | | 81,146 | |
| Purchases of marketable securities | (342,028) | | (142,759) | |
| Acquisition | (19,100) | | - | |
| Capital expenditures | (20,128) | | (12,268) | |
| Net cash used in investing activities | (243,638) | | (48,350) | |
| Cash flows from financing activities: | | |
| Proceeds from issuance of common stock under employee equity incentive plans | 3,373 | | 3,624 | |
| Proceeds from the issuance of convertible debt | 225,000 | | - | |
| Payment of debt issuance costs | (7,330) | | - | |
| Repurchases of common stock | (68,920) | | (30,084) | |
| Payments for dividends | (17,369) | | (17,797) | |
| Net cash provided by (used in) financing activities | 134,754 | | (44,257) | |
| Net decrease in cash and cash equivalents | (23,990) | | (2,115) | |
| Cash and cash equivalents - beginning of period | 95,129 | | 97,244 | |
| Cash and cash equivalents - end of period | $71,139 | | $95,129 | |
| Non-cash investing and financing activities: | | |
| Transfers between inventory and property and equipment | $314 | | $2,277 | |
| Capital expenditures included in accounts payable | $120 | | $672 | |
RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT
(unaudited, in thousands, except percentages)
| Three Months Ended December 31, | Years Ended December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| GAAP gross profit | $63,257 | $59,306 | $230,515 | $210,277 |
| GAAP gross margin | 78.7% | 79.9% | 79.3% | 80.4% |
| Non-GAAP adjustments: | | | | |
| Stock-based compensation and related payroll tax | 424 | 523 | 1,708 | 2,091 |
| Amortization of purchased intangible assets | 281 | - | 993 | - |
| Asset impairment expense | 951 | - | 951 | - |
| Workforce reduction expense | - | 20 | - | 20 |
| Non-GAAP gross profit | $64,913 | $59,849 | $234,167 | $212,388 |
| Non-GAAP gross margin | 80.8% | 80.7% | 80.6% | 81.2% |
RECONCILIATION OF GAAP TOTAL OPERATING EXPENSES
TO NON-GAAP TOTAL OPERATING EXPENSES
(unaudited, in thousands)
| Three Months Ended December 31, | Years Ended December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| GAAP total operating expenses | $48,198 | $40,910 | $183,373 | $166,309 |
| Non-GAAP adjustments: | | | | |
| Stock-based compensation and related payroll tax | (4,439) | (4,288) | (18,994) | (15,534) |
| Acquisition-related expense | (25) | - | (680) | - |
| Amortization of purchased intangible assets | (98) | - | (349) | - |
| Tax planning expense | - | - | (150) | (500) |
| Workforce reduction expense | - | (1,055) | - | (1,055) |
| One-time legal expense | (60) | - | (1,329) | (71) |
| Non-GAAP total operating expenses | $43,576 | $35,567 | $161,871 | $149,149 |
RECONCILIATION OF GAAP INCOME FROM OPERATIONS
TO NON-GAAP OPERATING INCOME
(unaudited, in thousands, except percentages)
| Three Months Ended December 31, | Years Ended December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| GAAP income from operations | $15,059 | $18,396 | $47,142 | $43,968 |
| GAAP operating margin | 18.7% | 24.8% | 16.2% | 16.8% |
| Non-GAAP adjustments: | | | | |
| Stock-based compensation and related payroll tax | 4,863 | 4,811 | 20,702 | 17,625 |
| Acquisition-related expense | 25 | - | 680 | - |
| Amortization of purchased intangible assets | 379 | - | 1,342 | - |
| Asset impairment expense | 951 | - | 951 | - |
| Tax planning expense | - | - | 150 | 500 |
| Workforce reduction expense | - | 1,075 | - | 1,075 |
| One-time legal expense | 60 | - | 1,329 | 71 |
| Non-GAAP operating income | $21,337 | $24,282 | $72,296 | $63,239 |
| Non-GAAP operating margin | 26.6% | 32.7% | 24.9% | 24.2% |
RECONCILIATION OF GAAP NET INCOME TO
EBITDA AND ADJUSTED EBITDA (NON-GAAP)
(unaudited, in thousands)
| Three Months Ended December 31, | Years Ended December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| GAAP net income | $9,865 | $18,301 | $42,137 | $50,140 |
| GAAP net income margin | 12.3% | 24.7% | 14.5% | 19.2% |
| Exclude: Interest and other income, net | (963) | (3,111) | (5,280) | (14,131) |
| Exclude: Depreciation and amortization | 3,983 | 3,045 | 15,062 | 11,293 |
| Exclude: Provision for income taxes | 6,157 | 3,206 | 10,285 | 7,959 |
| EBITDA | 19,042 | 21,441 | 62,204 | 55,261 |
| Exclude: Stock-based compensation and related payroll tax | 4,863 | 4,811 | 20,702 | 17,625 |
| Exclude: Acquisition-related expense | 25 | - | 680 | - |
| Exclude: Asset impairment expense | 951 | - | 951 | - |
| Exclude: Tax planning expense | - | - | 150 | 500 |
| Exclude: Workforce reduction expense | - | 1,075 | - | 1,075 |
| Exclude: One-time legal expense | 60 | - | 1,329 | 71 |
| Adjusted EBITDA | $24,941 | $27,327 | $86,016 | $74,532 |
| Adjusted EBITDA margin | 31.0% | 36.8% | 29.6% | 28.5% |
Contacts
Rob Fink / Tom Baumann
FNK IR
646.809.4048 / 646.349.6641 aten@fnkir.com
David Schroeder
VP, Corporate Development investors@a10networks.com
Source: A10 Networks, Inc.