A10 Networks Reports Financial Results for the Second Quarter of 2025
Company Grows Revenue and Earnings Per Share;
Cybersecurity and AI Tailwinds Reinforce Strategic Positioning
SAN JOSE, Calif., August 5, 2025 -- A10 Networks, Inc. (NYSE: ATEN), a leading provider of secure application services and solutions, today announced financial results for its second quarter ended June 30, 2025.
Second Quarter 2025 Financial Summary
•Revenue of $69.4 million, up 15% year-over-year compared to $60.1 million in the second quarter of 2024. Revenue for the first six months of 2025 was $135.5 million compared to $120.8 million for the first six months of 2024, an increase of approximately 12%.
•GAAP gross margin of 78.9%; non-GAAP gross margin of 80.0%.
•GAAP net income of $10.5 million (15.2% of revenue), or $0.14 per diluted share, compared to net income of $9.5 million (15.8% of revenue), or $0.13 per diluted share, in the second quarter of 2024.
•Non-GAAP net income of $15.5 million (22.3% of revenue), or $0.21 per diluted share, compared to non-GAAP net income of $13.2 million (22.0% of revenue), or $0.18 per diluted share in the second quarter of 2024.
•The Company returned $8.3 million to investors, having repurchased 229 thousand shares at an average price of $17.22 for a total of $3.9 million and having paid $4.3 million in cash dividends in the quarter. The Company has $71.1 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 September 2, 2025 to stockholders of record at the close of business on August 15, 2025.
A reconciliation between GAAP and non-GAAP information is contained in the financial statements below.
“Demand for our security and infrastructure solutions continues to grow as end markets normalized compared to same period last year, driving year-over-year revenue growth,” said Dhrupad Trivedi, President and Chief Executive Officer of A10 Networks. “The second quarter benefited from improving demand from data center expansions and AI infrastructure investments. This includes the recent selection of A10 by global leaders in AI data centers, which serves as an important validation of our security-led innovation and growing relevance in AI-centric environments.”
“A10 maintains strong operational discipline, effectively translating revenue growth into improved profitability and cash flow,” continued Trivedi. “We achieved expansion in both GAAP and non-GAAP net margins, grew earnings per share, and delivered robust cash flow from operations. We expect operating leverage to remain a key advantage moving forward.”
“The strength of our business model and customer intimacy, combined with favorable market dynamics in AI and cybersecurity, positions A10 to deliver long-term value as we continue to navigate evolving market conditions,” said Trivedi. “We remain focused on disciplined execution to drive sustained top- and bottom-line growth.”
Conference Call
Management will host a call at 1:30 p.m. Pacific time (4:30 p.m. Eastern time) today, August 5, 2025, 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: 117352.
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 August 19, 2025 and may be accessed by dialing (877) 481-4010 (toll-free) or (919) 882-2331 (international) and entering the passcode: 52680.
Forward-Looking Statements
This press release contains “forward-looking statements,” including statements regarding our quarterly dividend payments, strategy, positioning, demand, growth rate, margin profile, operating leverage, profitability and return of capital. 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 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) one-time legal expense, (v) tax planning 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 purchased 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 purchased intangible assets, (iv) one-time legal expense and (v) tax planning 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) one-time legal expense and (v) tax planning 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) expense, net, (ii) depreciation and amortization expense, (iii) provision for income taxes, (iv) stock-based compensation and related payroll tax, (v) acquisition-related expense, (vi) one-time legal expense and (vii) tax planning 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) provides security and infrastructure solutions for on-premises, hybrid cloud, and edge-cloud environments. Our 7000+ customers span global large enterprises and communications, cloud and web service providers who must ensure business-critical applications and networks are secure, available, and efficient. Founded in 2004, A10 Networks is based in San Jose, Calif. and serves customers globally. 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.
Investor Contact:
Rob Fink / Tom Baumann
FNK IR
646.809.4048 / 646.349.6641
aten@fnkir.com
Brian Becker
Chief Financial Officer
investors@a10networks.com
Source: A10 Networks, Inc.
A10 NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts, on a GAAP Basis)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Net revenue:
Products
$
39,173
$
29,533
$
75,152
$
59,602
Services
30,210
30,563
60,368
61,169
Total net revenue
69,383
60,096
135,520
120,771
Cost of net revenue:
Products
8,197
6,813
15,460
13,612
Services
6,475
5,225
12,654
9,870
Total cost of net revenue
14,672
12,038
28,114
23,482
Gross profit
54,711
48,058
107,406
97,289
Operating expenses:
Sales and marketing
20,964
19,453
40,509
40,667
Research and development
16,256
14,737
32,156
28,800
General and administrative
7,180
5,952
15,652
12,693
Total operating expenses
44,400
40,142
88,317
82,160
Income from operations
10,311
7,916
19,089
15,129
Non-operating income (expense):
Interest income
2,994
1,761
4,784
3,442
Interest and other income (expense), net
(1,376)
1,306
(1,466)
3,632
Total non-operating income, net
1,618
3,067
3,318
7,074
Income before income taxes
11,929
10,983
22,407
22,203
Provision for income taxes
1,391
1,507
2,326
3,001
Net income
$
10,538
$
9,476
$
20,081
$
19,202
Net income per share:
Basic
$
0.15
$
0.13
$
0.28
$
0.26
Diluted
$
0.14
$
0.13
$
0.27
$
0.25
Weighted-average shares used in computing net income per share:
Basic
72,009
74,366
72,777
74,401
Diluted
73,117
75,497
74,109
75,432
A10 NETWORKS, INC.
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME
(unaudited, in thousands, except per share amounts)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
GAAP net income
$
10,538
$
9,476
$
20,081
$
19,202
Non-GAAP items:
Stock-based compensation and related payroll tax
4,586
4,309
10,878
8,298
Acquisition-related expense
574
—
918
—
Amortization of purchased intangible assets
380
—
583
—
One-time legal expense
721
71
1,247
71
Tax planning expense
150
400
150
400
Income tax-effect of non-GAAP items
(1,496)
(1,046)
(3,369)
(2,017)
Total non-GAAP items
4,915
3,734
10,407
6,752
Non-GAAP net income
$
15,453
$
13,210
$
30,488
$
25,954
GAAP net income per share:
Basic
$
0.15
$
0.13
$
0.28
$
0.26
Diluted
$
0.14
$
0.13
$
0.27
$
0.25
Non-GAAP items:
Stock-based compensation and related payroll tax
0.06
0.05
0.15
0.11
Acquisition-related expense
0.01
—
0.01
—
Amortization of purchased intangible assets
0.01
—
0.01
—
One-time legal expense
0.01
—
0.02
—
Tax planning expense
—
0.01
—
0.01
Income tax-effect of non-GAAP items
(0.02)
(0.01)
(0.05)
(0.03)
Total non-GAAP items
0.07
0.05
0.14
0.09
Non-GAAP net income per share:
Basic
$
0.21
$
0.18
$
0.42
$
0.35
Diluted
$
0.21
$
0.18
$
0.41
$
0.34
Weighted average shares used in computing net income per share:
Basic
72,009
74,366
72,777
74,401
Diluted
73,117
75,497
74,109
75,432
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.
A10 NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except par value, on a GAAP Basis)
As of June 30, 2025
As of December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents
$
252,924
$
95,129
Marketable securities
114,459
100,429
Accounts receivable, net of allowances of $357 and $465, respectively
52,364
76,687
Inventory
20,082
22,005
Prepaid expenses and other current assets
17,233
13,038
Total current assets
457,062
307,288
Property and equipment, net
44,458
39,142
Goodwill
15,070
1,307
Intangible assets, net
7,018
—
Deferred tax assets, net
62,362
62,364
Other non-current assets
21,945
22,714
Total assets
$
607,915
$
432,815
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
6,999
$
12,542
Accrued and other liabilities
27,815
32,696
Deferred revenue, current
73,345
78,335
Total current liabilities
108,159
123,573
Deferred revenue, non-current
71,021
69,924
Long-term debt
218,086
—
Other non-current liabilities
6,661
7,489
Total liabilities
403,927
200,986
Stockholders' equity:
Common stock, $0.00001 par value: 500,000 shares authorized; 91,450 and 90,520 shares issued and 71,992 and 73,693 shares outstanding, respectively
1
1
Treasury stock, at cost: 19,458 and 16,827 shares, respectively
(231,965)
(180,992)
Additional paid-in-capital
520,524
508,387
Dividends paid
(64,172)
(55,417)
Accumulated other comprehensive income (loss)
(137)
194
Accumulated deficit
(20,263)
(40,344)
Total stockholders' equity
203,988
231,829
Total liabilities and stockholders' equity
$
607,915
$
432,815
A10 NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands, on a GAAP Basis)
Six Months Ended June 30,
2025
2024
Cash flows from operating activities:
Net income
$
20,081
$
19,202
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
7,077
5,507
Stock-based compensation
10,427
8,105
Other non-cash items
685
(403)
Changes in operating assets and liabilities:
Accounts receivable
24,031
16,695
Inventory
1,609
(3,318)
Prepaid expenses and other assets
(5,865)
(541)
Accounts payable
(6,379)
(2,859)
Accrued liabilities
(5,937)
3,640
Deferred revenue
(6,345)
(1,378)
Net cash provided by operating activities
39,384
44,650
Cash flows from investing activities:
Proceeds from sales of marketable securities
—
22,536
Proceeds from maturities of marketable securities
54,744
47,699
Purchases of marketable securities
(68,148)
(106,293)
Acquisition
(19,100)
—
Capital expenditures
(8,737)
(6,414)
Net cash used in investing activities
(41,241)
(42,472)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee equity incentive plans
1,710
1,854
Proceeds from the issuance of convertible notes
225,000
—
Payment of debt issuance costs
(7,330)
—
Repurchase of common stock
(50,973)
(14,876)
Payments for dividends
(8,755)
(8,943)
Net cash provided by (used in) financing activities
159,652
(21,965)
Net increase (decrease) in cash and cash equivalents
157,795
(19,787)
Cash and cash equivalents—beginning of period
95,129
97,244
Cash and cash equivalents—end of period
$
252,924
$
77,457
Non-cash investing and financing activities:
Transfers between inventory and property and equipment
$
314
$
1,628
Capital expenditures included in accounts payable
$
289
$
1,477
A10 NETWORKS, INC.
RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT
(unaudited, in thousands, except percentages)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
GAAP gross profit
$
54,711
$
48,058
$
107,406
$
97,289
GAAP gross margin
78.9
%
80.0
%
79.3
%
80.6
%
Non-GAAP adjustments:
Stock-based compensation and related payroll tax
502
563
1,148
1,034
Amortization of purchased intangible assets
281
—
431
—
Non-GAAP gross profit
$
55,494
$
48,621
$
108,985
$
98,323
Non-GAAP gross margin
80.0
%
80.9
%
80.4
%
81.4
%
A10 NETWORKS, INC.
RECONCILIATION OF GAAP TOTAL OPERATING EXPENSES
TO NON-GAAP TOTAL OPERATING EXPENSES
(unaudited, in thousands)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
GAAP total operating expenses
$
44,400
$
40,142
$
88,317
$
82,160
Non-GAAP adjustments:
Stock-based compensation and related payroll tax
(4,084)
(3,746)
(9,730)
(7,264)
Acquisition-related expense
(210)
—
(554)
—
Amortization of purchased intangible assets
(99)
—
(152)
—
One-time legal expense
(721)
(71)
(1,247)
(71)
Tax planning expense
(150)
(400)
(150)
(400)
Non-GAAP total operating expenses
$
39,136
$
35,925
$
76,484
$
74,425
A10 NETWORKS, INC.
RECONCILIATION OF GAAP INCOME FROM OPERATIONS
TO NON-GAAP OPERATING INCOME
(unaudited, in thousands, except percentages)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
GAAP income from operations
$
10,311
$
7,916
$
19,089
$
15,129
GAAP operating margin
14.9
%
13.2
%
14.1
%
12.5
%
Non-GAAP adjustments:
Stock-based compensation and related payroll tax
4,586
4,309
10,878
8,298
Acquisition-related expense
210
—
554
—
Amortization of purchased intangible assets
380
—
583
—
One-time legal expense
721
71
1,247
71
Tax planning expense
150
400
150
400
Non-GAAP operating income
$
16,358
$
12,696
$
32,501
$
23,898
Non-GAAP operating margin
23.6
%
21.1
%
24.0
%
19.8
%
A10 NETWORKS, INC.
RECONCILIATION OF GAAP NET INCOME TO
EBITDA AND ADJUSTED EBITDA (NON-GAAP)
(unaudited, in thousands, except percentages)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
GAAP net income
$
10,538
$
9,476
$
20,081
$
19,202
GAAP net income margin
15.2
%
15.8
%
14.8
%
15.9
%
Exclude: Interest and other income, net
(1,618)
(3,067)
(3,318)
(7,074)
Exclude: Depreciation and amortization
3,681
2,815
7,280
5,507
Exclude: Provision for income taxes
1,391
1,507
2,326
3,001
EBITDA
13,992
10,731
26,369
20,636
Exclude: Stock-based compensation and related payroll tax
