FatPipe (FATN) Q1 2027 earnings summary

Executive summary

• Revenue grew 27.8% year-over-year to $5.03M for Q1 FY2027, driven by recurring billings, new customer wins, and expanded market acceptance of software licenses.

• Net income rose 65.5% year-over-year to $1.23M, with EPS increasing to $0.09 from $0.05.

• Adjusted EBITDA increased to $1.29M, with a margin of 25.6%.

• Growth was supported by channel partners, recurring billings, and customer renewals.

• Recognized with multiple industry awards and high customer satisfaction ratings.

Financial highlights

• Revenue reached $5.03M, up 27.8% year-over-year, with product revenue up 47.9%.

• Net income was $1.23M, up 65.5% year-over-year.

• Adjusted EBITDA grew to $1.29M, margin at 25.6%.

• Gross margin was 92.2%, down from 94.2% year-over-year.

• EPS was $0.09, up from $0.05 year-over-year.

Outlook and guidance

• Management expects continued revenue growth, focusing on North America and Southeast Asia, new product features, and market-specific bundles.

• Gross margins may moderate as sales in cost-sensitive regions increase.

• Continued investment in growth, inventory, and marketing to support expansion.

• Focus remains on disciplined execution, expanding channel relationships, and increasing recurring revenue.

• Future income tax expense is expected to rise as NOL carryforwards are exhausted.