A10 Networks | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 75 M

Revenue: As of FY2026 Q1, the actual value is USD 75 M, beating the estimate of USD 72.61 M.

EPS: As of FY2026 Q1, the actual value is USD 0.17.

EBIT: As of FY2026 Q1, the actual value is USD 11.52 M.

Segment Revenue

A10 Networks, Inc.’s total net revenue increased by 13.4% to $75.0 million for the three months ended March 31, 2026, from $66.1 million in the same period of 2025.

• Product Revenue: Products revenue increased by 22.3% to $44.0 million for the three months ended March 31, 2026, from $36.0 million in the prior year period.
• Services Revenue: Services revenue increased by 2.8% to $31.0 million for the three months ended March 31, 2026, from $30.2 million in the prior year period.

Geographic Revenue Americas: Revenue increased by 51% to $50.5 million, representing 67% of total revenue, for the three months ended March 31, 2026, compared to $33.5 million (51% of total revenue) in 2025. United States revenue increased by 55% to $46.8 million (62% of total revenue) for the three months ended March 31, 2026, compared to $30.1 million (46% of total revenue) in 2025. Americas-other revenue increased by 9% to $3.7 million (5% of total revenue) for the three months ended March 31, 2026, compared to $3.4 million (5% of total revenue) in 2025. APJ: Revenue decreased by -24% to $14.2 million, representing 19% of total revenue, for the three months ended March 31, 2026, compared to $18.6 million (28% of total revenue) in 2025. EMEA: Revenue decreased by -27% to $10.3 million, representing 14% of total revenue, for the three months ended March 31, 2026, compared to $14.0 million (21% of total revenue) in 2025.

Customer Vertical Revenue Enterprises: Accounted for 56% of total revenue ($42.2 million) for the three months ended March 31, 2026, up from 41% ($27.1 million) in 2025. Service Providers: Accounted for 44% of total revenue ($32.8 million) for the three months ended March 31, 2026, down from 59% ($39.0 million) in 2025.

Operational Metrics

• Net Income: Net income increased by 26.1% to $12.0 million for the three months ended March 31, 2026, compared to $9.5 million in the same period of 2025.
• Gross Profit and Margin: Gross profit increased by 13.3% to $59.7 million for the three months ended March 31, 2026, compared to $52.7 million in the same period of 2025, with a total gross margin of 79.6%, a slight decrease from 79.7% in the prior year period.
  • Products gross margin decreased by -0.1 percentage points to 79.7% for the three months ended March 31, 2026, compared to 79.8% in 2025.
  • Services gross margin remained consistent at 79.5% for both periods.
• Operating Expenses: Total operating expenses increased by 6.4% to $46.7 million for the three months ended March 31, 2026, from $43.9 million in the prior year period.
  • Sales and marketing expenses increased by 2.4% to $20.0 million for the three months ended March 31, 2026, compared to $19.5 million in 2025.
  • Research and development expenses increased by 19.6% to $19.0 million for the three months ended March 31, 2026, compared to $15.9 million in 2025.
  • General and administrative expenses decreased by -9.2% to $7.7 million for the three months ended March 31, 2026, compared to $8.5 million in 2025.
• Income from Operations: Income from operations increased by 48.1% to $13.0 million for the three months ended March 31, 2026, compared to $8.8 million in the same period of 2025.

Cash Flow

• Cash Provided by Operating Activities: Cash provided by operating activities was $2.2 million for the three months ended March 31, 2026, a decrease from $17.2 million in the same period of 2025.
• Cash Used in Investing Activities: Cash used in investing activities was $8.7 million for the three months ended March 31, 2026, compared to $34.7 million in the same period of 2025.
• Cash Used in Financing Activities: Cash used in financing activities was $6.8 million for the three months ended March 31, 2026, compared to cash provided by financing activities of $166.3 million in the same period of 2025.

Unique Metrics

• Customer Concentration: Purchases from the ten largest end-customers accounted for 55% of total revenue for the three months ended March 31, 2026, compared to 44% in the prior year period.
• Deferred Revenue: Deferred revenue totaled $147.2 million as of March 31, 2026, with a current portion of $84.3 million and a non-current portion of $62.9 million. A10 Networks, Inc. recognized $29.6 million in revenue during the three months ended March 31, 2026, from deferred revenues at the beginning of the period.
• Stock Repurchase Program: As of March 31, 2026, A10 Networks, Inc. had $53.1 million available to repurchase shares under the 2025 Program. During the three months ended March 31, 2026, A10 Networks, Inc. repurchased 0.1 million shares for a total cost of $2.5 million under this program.
• Dividends: A10 Networks, Inc. paid cash dividends of $0.06 per share, totaling $4.3 million, during the three months ended March 31, 2026. The Board of Directors approved a quarterly cash dividend of $0.06 per share, payable on June 1, 2026, to stockholders of record on May 15, 2026.

Future Outlook and Strategy

A10 Networks, Inc. plans to invest in innovation to strengthen its leadership in secure infrastructure, expand cybersecurity capabilities, and position itself for AI-driven workloads, while focusing on disciplined capital allocation to achieve durable revenue growth, expanding recurring revenue, and strong cash flow generation. The company anticipates the demand shift from service providers to enterprises to continue in the near term and is prioritizing strengthening sales efforts in North America.