Open the filing on EDGARA10 Networks Reports Financial Results for the First Quarter of 2026
Strong Demand for AI Infrastructure Drives 13.4% Revenue Growth
SAN JOSE, Calif., April 28, 2026 -- A10 Networks, Inc. (NYSE: ATEN), a leading provider of secure application services and solutions, today announced financial results for its first quarter ended March 31, 2026.
First Quarter 2026 Financial Summary
- Quarterly revenue of $75.0 million (up 13.4% year-over-year).
- GAAP gross margin of 79.6%; non-GAAP gross margin of 80.6%.
- GAAP net income of $12.0 million, or $0.17 per diluted share, non-GAAP net income of $17.7 million, or $0.24 per diluted share.
- Non-GAAP Adjusted EBITDA of $22.5 million, representing 30.0% of revenue.
- The Company returned $6.8 million to investors, having repurchased 137,000 shares during the quarter at an average price of $18.13 per share for a total of $2.5 million and having paid $4.3 million in cash dividends in the quarter.
- The Board of Directors approved a quarterly cash dividend of $0.06 per share, payable June 1, 2026 to stockholders of record at the close of business on May 15, 2026.
- As of March 31, 2026, A10 had $369.8 million in cash, cash equivalents, and marketable securities.
A reconciliation between GAAP and non-GAAP information is contained in the financial statements below.
“AI-driven architectures are fundamentally increasing the volume, velocity, and complexity of network traffic, placing new demands on performance, availability, and security,” said Dhrupad Trivedi, President and Chief Executive Officer of A10 Networks. “AI is architecturally making the distinction between Enterprises and Service Providers obsolete, as the workloads and requirements are the same. A10 sits at a critical control point at the intersection of performance and security. Our investments and innovation focus have continued to drive strong demand resulting in expanded commitments from our top customers scaling AI infrastructure deployments.”
“Our model has continued to translate growth into increased profitability,” continued Trivedi. “We're actively managing industry-wide input supply dynamics for certain components, turning these challenges into growth opportunities. We remain confident to deliver full-year expectations for operating cash flow as first quarter results were impacted by routine time shifts. We believe our powerful combination of growth momentum, disciplined execution, and agile strategy positions us to drive strong financial performance. This is currently expected to continue to support the return of capital to our shareholders while we invest in innovation to help maintain our strategic advantages.”
Outlook
For 2026, A10 management reiterates their previous guidance given at their February Investor Day. Management currently expects:
- Full-year revenue growth of 10-12% over the prior year
- Adjusted EBITDA margin of between 28-30%
- EPS growth exceeding revenue growth rate, representing 12-14% growth year-over-year
Conference Call
Management will host a call at 1:30 p.m. Pacific time (4:30 p.m. Eastern time) today, April 28, 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: 360454.
A live audio webcast of the conference call will be accessible from the “Investor Relations” section of A10 Network’s website at investors.a10networks.com. The webcast will be archived for one year. A telephonic replay of the conference call will be available until May 12, 2026 and may be accessed by dialing (877) 481-4010 (toll-free) or (919) 882-2331 (international) and entering the passcode: 53873.
Forward-Looking Statements
Forward-looking statements notice
This press release contains “forward-looking statements,” including statements regarding dividends and capital return, demand and market trends, strategy and competitive positioning, financial performance and profitability, supply chain management, and 2026 financial guidance. 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, 2026. 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 by excluding certain items that, while they may recur, can vary significantly in amount and timing or are not directly indicative of ongoing operational trends, and are used by the company’s management to evaluate operating performance, prepare budgets and forecasts, and assess performance relative to peer companies.
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 acquired intangible assets, (iv) amortization of debt issuance costs, (v) certain legal expense and (vi) income tax effect of non-GAAP items (i) to (v) 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 and (ii) amortization of acquired intangible assets. 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 acquired intangible assets and (iv) certain 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 acquired intangible assets and (iv) certain 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 and (vi) certain 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 March 31, |
|---|
| 2026 | 2025 |
|---|
| Net revenue: | | |
| Products | $43,986 | | $35,979 | |
| Services | 31,014 | | 30,158 | |
| Total net revenue | 75,000 | | 66,137 | |
| Cost of net revenue: | | |
| Products | 8,930 | | 7,263 | |
| Services | 6,346 | | 6,179 | |
| Total cost of net revenue | 15,276 | | 13,442 | |
| Gross profit | 59,724 | | 52,695 | |
| Operating expenses: | | |
| Sales and marketing | 20,014 | | 19,545 | |
| Research and development | 19,018 | | 15,900 | |
| General and administrative | 7,693 | | 8,472 | |
| Total operating expenses | 46,725 | | 43,917 | |
| Income from operations | 12,999 | | 8,778 | |
| Non-operating income (expense): | | |
| Interest income | 3,383 | | 1,790 | |
| Interest and other income (expense), net | (2,158) | | (90) | |
| Total non-operating income, net | 1,225 | | 1,700 | |
| Income before income taxes | 14,224 | | 10,478 | |
| Provision for income taxes | 2,192 | | 935 | |
| Net income | $12,032 | | $9,543 | |
| Net income per share: | | |
| Basic | $0.17 | | $0.13 | |
| Diluted | $0.17 | | $0.13 | |
| Weighted-average shares used in computing net income per share: | | |
| Basic | 71,667 | | 73,555 | |
| Diluted | 72,915 | | 75,048 | |
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME
(unaudited, in thousands, except per share amounts)
| Three Months Ended March 31, |
|---|
| 2026 | 2025 |
|---|
| GAAP net income | $12,032 | | $9,543 | |
| Non-GAAP items: | | |
| Stock-based compensation and related payroll tax | 5,050 | | 6,292 | |
| Acquisition-related expense | - | | 344 | |
| Amortization of acquired intangible assets | 379 | | 203 | |
| Amortization of debt issuance costs | 365 | | - | |
| Certain legal expense | 497 | | 526 | |
| Income tax-effect of non-GAAP items | (592) | | (1,873) | |
| Total non-GAAP items | 5,699 | | 5,492 | |
| Non-GAAP net income | $17,731 | | $15,035 | |
| GAAP net income per share: | | |
| Basic | $0.17 | | $0.13 | |
| Diluted | $0.17 | | $0.13 | |
| Non-GAAP items: | | |
| Stock-based compensation and related payroll tax | 0.07 | | 0.08 | |
| Acquisition-related expense | - | | - | |
| Amortization of acquired intangible assets | 0.01 | | - | |
| Amortization of debt issuance costs | - | | - | |
| Certain legal expense | 0.01 | | 0.01 | |
| Income tax-effect of non-GAAP items | (0.01) | | (0.02) | |
| Total non-GAAP items | 0.08 | | 0.07 | |
| Non-GAAP net income per share: | | |
| Basic | $0.25 | | $0.20 | |
| Diluted | $0.24 | | $0.20 | |
| Weighted average shares used in computing net income per share: | | |
| Basic | 71,667 | | 73,555 | |
| Diluted | 72,915 | | 75,048 | |
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 and to facilitate comparison of operating results across reporting periods. 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 March 31, 2026 | As of December 31, 2025 |
|---|
| ASSETS |
| Current assets: | | |
| Cash and cash equivalents | $57,895 | $71,139 |
| Marketable securities | 311,867 | 306,714 |
| Accounts receivable, net of allowances of $46 and $66, respectively | 69,003 | 62,069 |
| Inventory | 20,172 | 18,032 |
| Prepaid expenses and other current assets | 20,611 | 18,000 |
| Total current assets | 479,548 | 475,954 |
| Property and equipment, net | 51,972 | 50,221 |
| Goodwill | 15,134 | 15,134 |
| Intangible assets, net | 5,879 | 6,259 |
| Deferred tax assets, net | 63,034 | 62,109 |
| Other non-current assets | 18,853 | 20,136 |
| Total assets | $634,420 | $629,813 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
| Current liabilities: | | |
| Accounts payable | $14,078 | $11,694 |
| Accrued and other liabilities | 30,740 | 41,132 |
| Deferred revenue, current | 84,298 | 80,824 |
| Total current liabilities | 129,116 | 133,650 |
| Deferred revenue, non-current | 62,864 | 61,982 |
| Long-term debt | 219,153 | 218,787 |
| Other non-current liabilities | 2,450 | 3,848 |
| Total liabilities | 413,583 | 418,267 |
| Stockholders' equity: |
| Common stock, $0.00001 par value: 500,000 shares authorized; 92,395 and 91,996 shares issued and 71,759 and 71,498 shares outstanding, respectively | 1 | 1 |
| Treasury stock, at cost: 20,636 and 20,498 shares, respectively | (252,408) | (249,912) |
| Additional paid-in-capital | 536,611 | 531,790 |
| Dividends paid | (77,089) | (72,785) |
| Accumulated other comprehensive income (expense) | (103) | 659 |
| Retained earnings | 13,825 | 1,793 |
| Total stockholders' equity | 220,837 | 211,546 |
| Total liabilities and stockholders' equity | $634,420 | $629,813 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands, on a GAAP Basis)
| Three Months Ended March 31, |
|---|
| 2026 | 2025 |
|---|
| Cash flows from operating activities: | | |
| Net income | $12,032 | | $9,543 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | |
| Depreciation and amortization | 3,969 | | 3,396 | |
| Stock-based compensation | 4,821 | | 6,018 | |
| Other non-cash items | 716 | | 1,237 | |
| Changes in operating assets and liabilities: | | |
| Accounts receivable | (6,974) | | 10,543 | |
| Inventory | (2,147) | | 1,152 | |
| Prepaid expenses and other assets | (3,654) | | (2,896) | |
| Accounts payable | 902 | | (5,646) | |
| Accrued and other liabilities | (11,790) | | (8,175) | |
| Deferred revenue | 4,356 | | 2,032 | |
| Net cash provided by operating activities | 2,231 | | 17,204 | |
| Cash flows from investing activities: | | |
| Proceeds from sales and maturities of marketable securities | 58,525 | | 30,744 | |
| Purchases of marketable securities | (64,282) | | (41,896) | |
| Acquisition | - | | (19,100) | |
| Capital expenditures | (2,920) | | (4,494) | |
| Net cash used in investing activities | (8,677) | | (34,746) | |
| Cash flows from financing activities: | | |
| Proceeds from the issuance of convertible notes | - | | 225,000 | |
| Payment of debt issuance costs | - | | (7,277) | |
| Repurchase of common stock | (2,495) | | (47,030) | |
| Payments for dividends | (4,303) | | (4,434) | |
| Net cash provided by (used in) financing activities | (6,798) | | 166,259 | |
| Net increase (decrease) in cash and cash equivalents | (13,244) | | 148,717 | |
| Cash and cash equivalents - beginning of period | 71,139 | | 95,129 | |
| Cash and cash equivalents - end of period | $57,895 | | $243,846 | |
| Non-cash investing and financing activities: | | |
| Transfers between inventory and property and equipment | $7 | | $314 | |
| Capital expenditures included in accounts payable | $1,482 | | $193 | |
| Supplemental cash flow disclosure: | | |
| Cash paid for income taxes, net | $111 | | $5 | |
| Cash paid for interest on debt | $3,094 | | $ - | |
RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT
(unaudited, in thousands, except percentages)
| Three Months Ended March 31, |
|---|
| 2026 | 2025 |
|---|
| GAAP gross profit | $59,724 | | $52,695 | |
| GAAP gross margin | 79.6% | | 79.7% | |
| Non-GAAP adjustments: | | |
| Stock-based compensation and related payroll tax | 409 | | 646 | |
| Amortization of acquired intangible assets | 281 | | 150 | |
| Non-GAAP gross profit | $60,414 | | $53,491 | |
| Non-GAAP gross margin | 80.6% | | 80.9% | |
RECONCILIATION OF GAAP TOTAL OPERATING EXPENSES
TO NON-GAAP TOTAL OPERATING EXPENSES
(unaudited, in thousands)
| Three Months Ended March 31, |
|---|
| 2026 | 2025 |
|---|
| GAAP total operating expenses | $46,725 | | $43,917 | |
| Non-GAAP adjustments: | | |
| Stock-based compensation and related payroll tax | (4,641) | | (5,646) | |
| Acquisition-related expense | - | | (344) | |
| Amortization of acquired intangible assets | (98) | | (53) | |
| Certain legal expense | (497) | | (526) | |
| Non-GAAP total operating expenses | $41,489 | | $37,348 | |
RECONCILIATION OF GAAP INCOME FROM OPERATIONS
TO NON-GAAP OPERATING INCOME
(unaudited, in thousands, except percentages)
| Three Months Ended March 31, |
|---|
| 2026 | 2025 |
|---|
| GAAP income from operations | $12,999 | | $8,778 | |
| GAAP operating margin | 17.3% | | 13.3% | |
| Non-GAAP adjustments: | | |
| Stock-based compensation and related payroll tax | 5,050 | | 6,292 | |
| Acquisition-related expense | - | | 344 | |
| Amortization of acquired intangible assets | 379 | | 203 | |
| Certain legal expense | 497 | | 526 | |
| Non-GAAP operating income | $18,925 | | $16,143 | |
| Non-GAAP operating margin | 25.2% | | 24.4% | |
RECONCILIATION OF GAAP NET INCOME TO
EBITDA AND ADJUSTED EBITDA (NON-GAAP)
(unaudited, in thousands, except percentages)
| Three Months Ended March 31, |
|---|
| 2026 | 2025 |
|---|
| GAAP net income | $12,032 | | $9,543 | |
| GAAP net income margin | 16.0% | | 14.4% | |
| Exclude: Interest and other income, net | (1,225) | | (1,700) | |
| Exclude: Depreciation and amortization | 3,969 | | 3,599 | |
| Exclude: Provision for income taxes | 2,192 | | 935 | |
| EBITDA | 16,968 | | 12,377 | |
| Exclude: Stock-based compensation and related payroll tax | 5,050 | | 6,292 | |
| Exclude: Acquisition-related expense | - | | 344 | |
| Exclude: Certain legal expense | 497 | | 526 | |
| Adjusted EBITDA | $22,515 | | $19,539 | |
| Adjusted EBITDA margin | 30.0% | | 29.5% | |
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.