A10 Networks Earnings Call Transcripts
Fiscal Year 2026
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Q3 revenue reached a record $91.5M, up 22.6% YoY, with 80% non-GAAP gross margin and record free cash flow. FY26 revenue growth guidance rose to ~16%, alongside targets for $1.08-$1.10 non-GAAP EPS.
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Q2 2026 saw 15.5% revenue growth and strong profitability, driven by AI-related demand and an expanded Microsoft partnership. Full-year guidance was raised, and the TrojAI acquisition enhanced AI security offerings. Customer concentration and supply chain risks remain.
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Q1 2026 saw 13.4% revenue growth, strong product and security-led sales, and robust margins. AI infrastructure demand and a major customer win drove results, with guidance for 10%-12% revenue growth and 28%-30% EBITDA margin reiterated for 2026.
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The company has evolved into a unified platform focused on next-gen networking and embedded security, achieving strong financial results and targeting 12%+ revenue CAGR through 2028. AI-driven infrastructure and security are primary growth drivers, with disciplined capital allocation and expanding deal sizes among existing customers.
Fiscal Year 2025
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Record revenue and profitability were achieved in 2025, driven by AI and security-led demand, with strong growth in the Americas and cloud provider segments. 2026 guidance calls for 10%-12% revenue growth, margin expansion, and continued investment in AI and security.
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Q3 revenue grew nearly 12% year-over-year, driven by AI infrastructure and security-led solutions, with strong margins and disciplined capital allocation. Full-year growth is expected at 10%, with high single-digit growth targeted for 2026.
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Q2 2025 saw 15% revenue growth, strong profitability, and high renewal rates, driven by AI and cybersecurity demand. Enterprise and service provider segments both grew, with robust cash flow, increased cash reserves, and continued capital returns to shareholders.
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Q1 2025 saw 9% revenue growth, led by strong enterprise gains and stable service provider performance. Gross margin remained robust at 80.9%, and the company expanded its cybersecurity portfolio with the ThreatX Protect acquisition. High single-digit revenue growth and strong margins are expected for the year.
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Revenue reached $262 million in 2024 with strong profitability and market share gains, driven by a focus on secure, AI-enabled networking solutions and a diversified global presence. Strategic investments and acquisitions target enterprise and cybersecurity growth, with AI integrated across products and operations.
Fiscal Year 2024
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Revenue grew 5% in Q4 and 4% for the year, with strong enterprise and security-led growth. Profitability and cash generation exceeded targets, supporting continued R&D and capital returns. AI and security trends are expected to drive further growth in 2025.
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Q3 revenue rose 15.5% year-over-year to $66.7 million, with strong growth in both enterprise and service provider segments. Security-led revenue increased 10% year-to-date, and gross margin remained robust at 81.3%. Capital returns continued via dividends and buybacks.
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Q2 revenue declined 8.7% year-over-year due to North American service provider weakness, but enterprise revenue grew 25%, offsetting much of the decline. Profitability remained strong, with gross margin at 80.9% and adjusted EBITDA margin at 25.8%.
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The presentation highlighted a strategic shift toward cybersecurity and enterprise markets, resilient financial performance despite 2023 revenue decline, and ongoing product innovation. Flexible business models, strong cash flow, and ESG initiatives support future growth and stability.