FatPipe (FATN) Q2 2027 earnings summary

Executive summary

• Q2 FY27 revenue was $4.83M, up 22.1% YoY; net income reached $1.20M versus a $43K prior-year loss, and adjusted EBITDA was $1.16M.

• H1 FY27 revenue rose 25.0% to $9.87M, with net income up 247.9% to $2.43M and adjusted EBITDA up 34.4% to $2.45M.

• Product-led growth, recurring billings, renewals, and new customer wins supported performance; Constellation began attracting orders.

Financial highlights

• Q2 gross profit rose 19% YoY to $4.35M; operating income was $845K versus an operating loss of $793K.

• H1 operating income increased to $1.75M from $1.00M; net income rose to $2.43M from $698K.

• Recurring billings increased 55% YoY; QoQ billings grew from $2.4M to $2.9M on new deployments, larger customers, and renewals.

• H1 operating cash flow used $1.79M, mainly reflecting a $3.14M increase in contracts receivable and a $740K decrease in accrued expenses and other current liabilities.

• Cash was $3.10M at September 30, 2026, versus $5.21M at March 31, 2026; total assets were $35.38M.

Outlook and guidance

• Management targets at least 18% growth and 18% EBITDA and expects to sustain break-even performance and positive cash flow while expanding sales.

• Sales headcount was 30, with plans for 36 by March fiscal year-end and ~48 the following year; new hires typically reach break-even to profitability in 3–6 months, or 6–9 months in larger-deal roles.

• Priorities include expanding North America and Southeast Asia, developing market-specific bundles, and advancing SD-WAN security, cybersecurity, and network-monitoring products.

• Management expects available cash, operating cash flow, and revolving credit to fund requirements for the next 12 months and longer term.