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A10 Networks Reports Financial Results for the Third Quarter of 2025

Company Grows Revenue 11.9% as AI Infrastructure Buildouts Serve as Key Catalysts

SAN JOSE, Calif., November 4, 2025 -- A10 Networks, Inc. (NYSE: ATEN), a leading provider of secure application services and solutions, today announced financial results for its third quarter ended September 30, 2025. 

Third Quarter 2025 Financial Summary

•Revenue of $74.7 million, up 11.9% year-over-year compared to $66.7 million in the third quarter of 2024.

•GAAP gross margin of 80.1%; non-GAAP gross margin of 80.7%.

•GAAP Operating Margin was 17.4% compared to 15.7% in the third quarter of 2024. Non-GAAP Operating Margin was 24.7% compared to 22.6% in the third quarter of 2024.

•GAAP net income of $12.2 million, or $0.17 per diluted share, compared to net income of $12.6 million, or $0.17 per diluted share, in the third quarter of 2024.

•Non-GAAP net income of $16.7 million, or $0.23 per diluted share, compared to non-GAAP net income of $15.9 million, or $0.21 per diluted share in the third quarter of 2024.

•The Company returned $15.3 million to investors, having repurchased 634,000 shares at an average price of $17.41 per share for a total of $11.0 million and having paid $4.3 million in cash dividends in the quarter. The Company has $60.1 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 December 1, 2025 to stockholders of record at the close of business on November 17, 2025.


A reconciliation between GAAP and non-GAAP information is contained in the financial statements below.

“The scale and sophistication of cyber threats continue to accelerate, prompting global carriers, enterprises, and government agencies to make security and performance integral to their infrastructure roadmaps,” said Dhrupad Trivedi, President and Chief Executive Officer of A10 Networks. “This dynamic is gaining urgency as AI-driven workloads scale in both utilization and deployment footprints. A10 is well-aligned with this trend, and our offerings are seen as increasingly relevant to address these concerns. We are well-aligned with our customers near-term roadmaps, and long-term financial objectives tied to AI infrastructure and cybersecurity.”

“Operational discipline remains a core aspect of our business model as we allocate resources to the best opportunities, efficiently converting revenue growth into solid profitability and robust cash flow,” continued Trivedi. “A10 continues to deliver long-term value as we navigate market priorities. 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, November 4, 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: 608502.

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 November 18, 2025 and may be accessed by dialing (877) 481-4010 (toll-free) or (919) 882-2331 (international) and entering the passcode: 53066.

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 investor returns. 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) 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) 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.

Investor Contact:
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.


A10 NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts, on a GAAP Basis)

Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Net revenue:
Products$43,109 $36,862 $118,261 $96,464 
Services31,573 29,859 91,941 91,028 
Total net revenue74,682 66,721 210,202 187,492 
Cost of net revenue:
Products8,101 7,531 23,561 21,143 
Services6,729 5,508 19,383 15,378 
Total cost of net revenue14,830 13,039 42,944 36,521 
Gross profit59,852 53,682 167,258 150,971 
Operating expenses:
Sales and marketing21,531 21,011 62,040 61,678 
Research and development18,377 15,734 50,533 44,533 
General and administrative6,950 6,494 22,602 19,188 
Total operating expenses46,858 43,239 135,175 125,399 
Income from operations12,994 10,443 32,083 25,572 
Non-operating income (expense):
Interest income3,386 1,634 8,170 5,077 
Interest and other income (expense), net(2,387)2,312 (3,853)5,943 
Total non-operating income, net999 3,946 4,317 11,020 
Income before income taxes13,993 14,389 36,400 36,592 
Provision for income taxes1,802 1,752 4,128 4,753 
Net income $12,191 $12,637 $32,272 $31,839 
Net income per share:
Basic$0.17 $0.17 $0.45 $0.43 
Diluted$0.17 $0.17 $0.44 $0.42 
Weighted-average shares used in computing net income per share:
Basic71,891 73,823 72,478 74,200 
Diluted73,046 74,780 73,805 75,236 


A10 NETWORKS, INC.
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME
(unaudited, in thousands, except per share amounts)

Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
GAAP net income$12,191 $12,637 $32,272 $31,839 
Non-GAAP items:
Stock-based compensation and related payroll tax4,961 4,516 15,839 12,814 
Acquisition-related expense465 — 1,383 — 
Amortization of purchased intangible assets380 — 963 — 
One-time legal expense22 — 1,269 71 
Tax planning expense— 100 150 500 
Income tax-effect of non-GAAP items(1,318)(1,327)(4,687)(3,343)
Total non-GAAP items4,510 3,289 14,917 10,042 
Non-GAAP net income$16,701 $15,926 $47,189 $41,881 
GAAP net income per share:
Basic$0.17 $0.17 $0.45 $0.43 
Diluted$0.17 $0.17 $0.44 $0.42 
Non-GAAP items:
Stock-based compensation and related payroll tax0.07 0.06 0.21 0.17 
Acquisition-related expense0.01 — 0.02 — 
Amortization of purchased intangible assets0.01 — 0.01 — 
One-time legal expense— — 0.02 — 
Tax planning expense— — — 0.01 
Income tax-effect of non-GAAP items(0.02)(0.02)(0.06)(0.04)
Total non-GAAP items0.06 0.04 0.20 0.14 
Non-GAAP net income per share:
Basic$0.23 $0.22 $0.65 $0.56 
Diluted$0.23 $0.21 $0.64 $0.56 
Weighted average shares used in computing net income per share:
Basic71,891 73,823 72,478 74,200 
Diluted73,046 74,780 73,805 75,236 


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 September 30, 2025As of December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents$86,555 $95,129 
Marketable securities284,304 100,429 
Accounts receivable, net of allowances of $323 and $465, respectively61,578 76,687 
Inventory18,963 22,005 
Prepaid expenses and other current assets17,279 13,038 
Total current assets468,679 307,288 
Property and equipment, net47,029 39,142 
Goodwill 15,134 1,307 
Intangible assets, net6,638 — 
Deferred tax assets, net62,535 62,364 
Other non-current assets20,118 22,714 
Total assets$620,133 $432,815 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$11,219 $12,542 
Accrued and other liabilities35,493 32,696 
Deferred revenue, current82,017 78,335 
Total current liabilities128,729 123,573 
Deferred revenue, non-current61,470 69,924 
Long-term debt218,450 — 
Other non-current liabilities5,271 7,489 
Total liabilities413,920 200,986 
Stockholders' equity:
Common stock, $0.00001 par value: 500,000 shares authorized; 91,776 and 90,520 shares issued and 71,684 and 73,693 shares outstanding, respectively1 1 
Treasury stock, at cost: 20,092 and 16,827 shares, respectively(243,000)(180,992)
Additional paid-in-capital525,303 508,387 
Dividends paid(68,492)(55,417)
Accumulated other comprehensive income473 194 
Accumulated deficit(8,072)(40,344)
Total stockholders' equity206,213 231,829 
Total liabilities and stockholders' equity$620,133 $432,815 
 
 



A10 NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands, on a GAAP Basis)
 
 
Nine Months Ended September 30,
20252024
Cash flows from operating activities:
Net income$32,272 $31,839 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization10,876 8,248 
Stock-based compensation15,206 12,284 
Other non-cash items2,251 (1,013)
Changes in operating assets and liabilities:
Accounts receivable14,803 8,378 
Inventory2,728 (1,911)
Prepaid expenses and other assets(6,912)753 
Accounts payable(2,100)(1,820)
Accrued liabilities351 5,139 
Deferred revenue(7,288)2,885 
Net cash provided by operating activities62,187 64,782 
Cash flows from investing activities:
Proceeds from sales of marketable securities— 22,536 
Proceeds from maturities of marketable securities96,426 66,446 
Purchases of marketable securities(278,920)(127,288)
Acquisition(19,100)— 
Capital expenditures(13,464)(9,886)
Net cash used in investing activities(215,058)(48,192)
Cash flows from financing activities:
Proceeds from issuance of common stock under employee equity incentive plans1,710 1,919 
Proceeds from the issuance of convertible notes225,000 — 
Payment of debt issuance costs(7,330)— 
Repurchase of common stock(62,008)(24,321)
Payments for dividends(13,075)(13,369)
Net cash provided by (used in) financing activities144,297 (35,771)
Net decrease in cash and cash equivalents(8,574)(19,181)
Cash and cash equivalents—beginning of period95,129 97,244 
Cash and cash equivalents—end of period$86,555 $78,063 
Non-cash investing and financing activities:
Transfers between inventory and property and equipment$314 $2,015 
Capital expenditures included in accounts payable$229 $2,340 
Supplemental cash flow disclosure:
Cash paid for income taxes, net$3,694 $4,582 



A10 NETWORKS, INC.
RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT
(unaudited, in thousands, except percentages)

Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
GAAP gross profit$59,852 $53,682 $167,258 $150,971 
GAAP gross margin80.1 %80.5 %79.6 %80.5 %
Non-GAAP adjustments:
Stock-based compensation and related payroll tax136 534 1,284 1,568 
Amortization of purchased intangible assets281 — 712 — 
Non-GAAP gross profit$60,269 $54,216 $169,254 $152,539 
Non-GAAP gross margin80.7 %81.3 %80.5 %81.4 %



A10 NETWORKS, INC.
RECONCILIATION OF GAAP TOTAL OPERATING EXPENSES
TO NON-GAAP TOTAL OPERATING EXPENSES
(unaudited, in thousands)
 
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
GAAP total operating expenses$46,858 $43,239 $135,175 $125,399 
Non-GAAP adjustments:
Stock-based compensation and related payroll tax(4,825)(3,982)(14,555)(11,246)
Acquisition-related expense(101)— (655)— 
Amortization of purchased intangible assets(99)— (251)— 
One-time legal expense(22)— (1,269)(71)
Tax planning expense— (100)(150)(500)
Non-GAAP total operating expenses$41,811 $39,157 $118,295 $113,582 
 



A10 NETWORKS, INC.
RECONCILIATION OF GAAP INCOME FROM OPERATIONS
TO NON-GAAP OPERATING INCOME
(unaudited, in thousands, except percentages)

Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
GAAP income from operations$12,994 $10,443 $32,083 $25,572 
GAAP operating margin17.4 %15.7 %15.3 %13.6 %
Non-GAAP adjustments:
Stock-based compensation and related payroll tax4,961 4,516 15,839 12,814 
Acquisition-related expense101 — 655 — 
Amortization of purchased intangible assets380 — 963 — 
One-time legal expense22 — 1,269 71 
Tax planning expense— 100 150 500 
Non-GAAP operating income$18,458 $15,059 $50,959 $38,957 
Non-GAAP operating margin24.7 %22.6 %24.2 %20.8 %


A10 NETWORKS, INC.
RECONCILIATION OF GAAP NET INCOME TO
EBITDA AND ADJUSTED EBITDA (NON-GAAP)
(unaudited, in thousands, except percentages)

Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
GAAP net income$12,191 $12,637 $32,272 $31,839 
GAAP net income margin16.3 %18.9 %15.4 %17.0 %
Exclude: Interest and other income, net(999)(3,946)(4,317)(11,020)
Exclude: Depreciation and amortization3,799 2,741 11,079 8,248 
Exclude: Provision for income taxes1,802 1,752 4,128 4,753 
EBITDA16,793 13,184 43,162 33,820 
Exclude: Stock-based compensation and related payroll tax4,961 4,516 15,839 12,814 
Exclude: Acquisition-related expense101 — 655 — 
Exclude: One-time legal expense22 — 1,269 71 
Exclude: Tax planning expense— 100 150 500 
Adjusted EBITDA$21,877 $17,800 $61,075 $47,205 
Adjusted EBITDA margin29.3 %26.7 %29.1 %25.2 %