A10 Networks (ATEN) Q4 2025 earnings summary

Executive summary

• Achieved record quarterly and full-year revenue in Q4 and FY 2025, with Q4 revenue up 8.3% year-over-year and FY 2025 revenue up 11% year-over-year to $290.6 million.

• Security-led solutions reached or exceeded 65% of total revenue, meeting long-term targets and driving consistent growth.

• Profitability remained strong, with non-GAAP gross margins above 80% and record Adjusted EBITDA margins for the year.

• Growth was supported by strong performance in the Americas and strategic wins in enterprise and service provider segments.

• Generated nearly $85 million in cash flow from operations in 2025, supporting investments and capital returns.

Financial highlights

• Q4 2025 revenue reached $80.4 million; FY 2025 revenue totaled $290.6 million.

• Q4 product revenue was $48.8 million; services revenue was $31.5 million, with service revenue at 39% of total.

• Q4 2025 non-GAAP net income was $19.1 million ($0.26/share); full-year non-GAAP net income was $66.3 million ($0.90/share).

• Q4 2025 Adjusted EBITDA was $24.9 million (31% margin); full-year Adjusted EBITDA was $86.0 million (29.6% margin).

• Cash, cash equivalents, and marketable securities totaled $377.9 million at year-end 2025.

Outlook and guidance

• 2026 revenue expected to grow 10%-12% over 2025, with non-GAAP gross margin targeted at 80%-82%.

• Net and EBITDA margins expected to expand; EPS growth projected to outpace revenue growth at 12–14%.

• Continued focus on organic growth, margin expansion, and reinvestment in strategic priorities.

• Growth is expected to continue, driven by investments in next-generation networking and security.