--- title: "A10 Networks Earnings Call: Record Growth, Security Focus" description: "A10 Networks reported record growth in its Q4 earnings call, with revenue reaching $80.4 million, an 8.3% increase year-over-year, and full-year revenue of $290.6 million, up 11%. The company emphasiz" type: "news" locale: "en" url: "https://longbridge.com/en/news/275213057.md" published_at: "2026-02-08T00:29:39.000Z" --- # A10 Networks Earnings Call: Record Growth, Security Focus > A10 Networks reported record growth in its Q4 earnings call, with revenue reaching $80.4 million, an 8.3% increase year-over-year, and full-year revenue of $290.6 million, up 11%. The company emphasized a strategic pivot towards security-led solutions, which now account for 72% of total revenue. Profitability surged with adjusted EBITDA at $86 million, or 29.6% of revenue. The Americas and cloud service providers drove growth, while strong cash generation allowed for significant shareholder returns, including $17.4 million in dividends and $68.9 million in stock repurchases. A10 Networks ((ATEN)) has held its Q4 earnings call. Read on for the main highlights of the call. ### Claim 50% Off TipRanks Premium - Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions - Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential A10 Networks Caps Record Year With Strong Growth and Security Pivot A10 Networks’ latest earnings call struck a clearly upbeat tone, with management emphasizing record revenue and profitability, expanding security-led business, and robust cash generation. While executives acknowledged regional softness in Japan, flat trends in some legacy segments, and emerging uncertainties around supply-chain costs and AI-driven cyber threats, they underscored that disciplined execution and a focused strategy are driving momentum into 2026. ## Record Revenue Across Quarter and Full Year A10 posted its largest quarter ever, with fourth-quarter revenue of $80.4 million, up 8.3% year over year, and full-year 2025 revenue reaching $290.6 million, an 11% increase. This marks a solid step-up in scale for a company still relatively small versus larger networking and security peers. The double-digit full-year growth shows A10 is finding demand in core markets despite macro and regional headwinds, a key point for investors watching whether mid-cap tech names can sustain growth amid uneven IT spending. ## Profitability Surges With Record Adjusted EBITDA and High Margins Profitability was another standout. Full-year adjusted EBITDA hit a record $86.0 million, or 29.6% of revenue, with Q4 adjusted EBITDA at $24.9 million, representing 31% of revenue. Non-GAAP gross margins remained in the company’s target band, at 80.8% in Q4 and 80.6% for the year. These levels are high even by software and security standards and signal tight cost control and a favorable product mix. For shareholders, the combination of double-digit revenue growth and near-30% EBITDA margins suggests A10 is operating in a rarefied part of the IT infrastructure landscape where incremental revenue translates efficiently into profit. ## Security-Led Revenue Strategy Hits Key Milestone Management highlighted a strategic milestone in the company’s pivot to security-led solutions. Security offerings reached the long-term goal of roughly 65% of total revenue on a sustainable basis in Q4, and for the full year they accounted for 72%. This shift toward higher-value security use cases is important because security budgets tend to be more resilient and often carry better margins than legacy networking. It also positions A10 more squarely in front of spending trends tied to rising cyber risk, helping support both growth and profitability targets. ## Americas and Cloud Service Providers Drive Top-Line Strength Geographically and by customer type, the Americas and cloud service providers were the main growth engines. The Americas region made up 64% of global revenue and grew 30% year over year in 2025, offsetting weakness elsewhere. Service providers represented 58% of total revenue, with performance skewed toward cloud providers, reflecting demand tied to AI infrastructure and modern data center build-outs. For investors, this mix indicates A10 is aligned with high-growth infrastructure projects where traffic volumes, performance needs, and security requirements are rising simultaneously. ## Balanced Product-Service Mix and Recovering Enterprise Demand A10’s fourth-quarter revenue mix remained well balanced: products contributed $48.8 million, or 61% of total, while services made up 39%. Notably, enterprise customers—which represented 42% of Q4 revenue—returned to growth, with enterprise revenue rising 8% after prior quarters of decline. This improvement suggests that demand is broadening beyond telecom and cloud providers, giving A10 more diversified end-market exposure. A healthier enterprise trajectory can reduce reliance on a few large verticals and help cushion cyclical swings in carrier spending. ## Strong Cash Generation and Active Capital Returns Cash metrics underscored the strength of the business model. In Q4, operating cash flow reached $22.7 million and free cash flow was $16.0 million after $6.7 million in capital expenditures. A10 ended the year with $378 million in cash and marketable securities, a sizeable cushion relative to annual revenue. The company is returning a meaningful portion of that to shareholders, distributing $17.4 million in dividends and repurching $68.9 million of stock during 2025. Roughly $53.4 million remains on the existing $75 million buyback program, and the board approved a quarterly dividend of $0.06 per share. This capital return profile, combined with strong cash generation, will likely appeal to investors seeking both growth and income from the tech sector. ## Strategic Customer Wins Validate Competitive Position Management pointed to several marquee customer wins in the quarter as evidence that A10’s product roadmap is resonating. Notable deals included a large global data and analytics software provider and a major global airline. These customers chose A10 for high-performance traffic management, hardware acceleration, security capabilities, automation, centralized management, and cost-efficiency at scale. Such wins not only bring near-term revenue but also serve as reference points that can help A10 penetrate similar large enterprises and service providers, reinforcing its competitive positioning in a crowded market. ## 2026 Outlook: Growth, Margin Expansion, and EPS Leverage For 2026, A10 guided to revenue growth of 10%–12% over 2025’s $290.6 million, implying a range of roughly $319.7 million to $325.5 million. Non-GAAP gross margins are expected to remain around the company’s ~82% target, broadly in line with recent levels. Management also aims to expand net and EBITDA margins beyond current marks—already nearly 30% on an adjusted basis—and expects EPS growth to outpace revenue growth, signaling further operating leverage. The company acknowledged ongoing input and supply cost pressures but expressed confidence in managing them within its long-term operating model, with more detail to come at a future investor event. ## APJ Weakness and Legacy Service Providers Drag on Results Not everything in the quarter was positive. The APJ region, particularly Japan, weighed on performance, with revenue declining for the year amid weak GDP growth, inflation concerns, and tariff-related uncertainty. This regional softness partially offset strong results in the Americas and EMEA. At the same time, non-cloud service provider revenue was flat year over year, reflecting a shift in spending away from older infrastructure refresh cycles and toward security and next-generation networking. While these pressures are manageable, they highlight the importance of A10’s continued push into cloud, security, and AI-related projects to fuel growth. ## Monitoring Supply-Chain Costs and AI-Driven Threat Dynamics Management flagged potential risks related to supply-chain and input costs, especially in the memory component space. While no near-term delivery disruptions are expected, the company acknowledged that component cost pressures could emerge and said it is proactively planning its supply needs. On the technology front, A10 sees early signs that AI could change network traffic patterns and cyberthreat dynamics, with the potential for more sophisticated or higher-volume attacks. However, executives stressed that it is still too early to quantify how these AI-driven shifts will translate into incremental security spending or product demand. ## Higher CapEx Signals Investment in Infrastructure and AI Capabilities Capital expenditures ticked up in Q4 to $6.7 million, driven by investment in backend infrastructure, hosted and managed service enablement, and early-stage AI demonstration environments using GPUs and specialized processors. Management framed these as strategic investments aimed at supporting future growth and enhancing the company’s ability to serve customers in AI-heavy and service-centric environments. While an extended period of elevated CapEx could modestly pressure free cash flow, the company’s strong cash position and high margins provide ample room to fund these initiatives without straining the balance sheet. A10 Networks’ earnings call painted a picture of a company executing well on a clear strategy: deepen its security posture, align with cloud and AI infrastructure demand, and convert growth into high-margin profits and cash returns. Despite regional and segment headwinds and new uncertainties around supply costs and AI-driven cyber risks, A10 is entering 2026 with record financials, a strong balance sheet, and a guidance framework that targets continued growth, expanding margins, and rising earnings per share—an attractive mix for investors monitoring the name. ### Related Stocks - [XSW.US - SPDR S&P Software](https://longbridge.com/en/quote/XSW.US.md) - [DAT.US - Proshares Big Data Refiners ETF](https://longbridge.com/en/quote/DAT.US.md) - [NXTG.US - First Trust Index NextG ETF](https://longbridge.com/en/quote/NXTG.US.md) - [IGV.US - iShares Expanded Tech Software Sector ETF](https://longbridge.com/en/quote/IGV.US.md) - [DTCR.US - Global X Data Center & Dgtl Infrs ETF](https://longbridge.com/en/quote/DTCR.US.md) - [IDGT.US - iShares US Digital Infrastructure and Real Estate ETF](https://longbridge.com/en/quote/IDGT.US.md) - [CLOU.US - Global X Cloud Computing ETF](https://longbridge.com/en/quote/CLOU.US.md) - [ATEN.US - A10 Networks](https://longbridge.com/en/quote/ATEN.US.md) - [XDAT.US - Franklin Exponential Data ETF](https://longbridge.com/en/quote/XDAT.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 06:00 ETDeepL 通過 AWS Marketplace 向全球企業提供 AI 翻譯服務 | DeepL 是一家全球性的人工智能產品和研究公司，已宣佈其 AI 翻譯和寫作輔助解決方案在 AWS Marketplace 上可用。客户現在可以通過 DeepL API 訪問這些解決方案，從而更方便地採購並集成到現有的 IT 環境中。此舉旨 | [Link](https://longbridge.com/en/news/276114786.md) | | 為平息 AI 衝擊擔憂，私營軟件公司提前向債權人披露財報 | McAfee 公佈第四季度營收 6.26 億美元，利用 AI 技術檢測詐騙維持業績穩定；Rocket Software 營收增長 5.2% 至 14 億美元。提前披露確實起到穩定債務價格的效果，McAfee 約 20 億美元的 2030 年 | [Link](https://longbridge.com/en/news/276184379.md) | | 印孚瑟斯技術發佈 AI 優先價值框架 | Infosys 有限公司：INFOSYS - INFOSYS 推出 AI 優先價值框架 | [Link](https://longbridge.com/en/news/276131501.md) | | IBM 計劃將初級職位的招聘人數增加三倍，即便是那些與人工智能相關的職位 | IBM 計劃到 2026 年將其在美國的入門級招聘人數增加三倍，即使是受到人工智能自動化影響的職位。首席人力資源官 Nickle LaMoreaux 強調，人類員工在 AI 工具的輔助下仍然至關重要。該公司正在重組入門級職位，使初級開發人員 | [Link](https://longbridge.com/en/news/276071537.md) | | Kingland 宣佈推出結合雲和 AI 平台的新應用 AI 解決方案 | Kingland Systems 宣佈推出一套新的應用人工智能解決方案，基於其雲與人工智能平台。這些解決方案旨在提高公共會計公司、銀行和保險公司的關鍵業務流程的效率。該平台自動化複雜的、文檔密集型的任務，同時確保在受監管環境中的合規性。主要 | [Link](https://longbridge.com/en/news/276168308.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.