A10 Networks Reports Financial Results for the First Quarter of 2026

Published: 2026-04-28 16:07:04 ET ATEN

Strong Demand for AI Infrastructure Drives 13.4% Revenue Growth

Published on 04/28/2026 at 04:07 pm EDT

A10 Networks, Inc. (NYSE: ATEN), a leading provider of secure application services and solutions, today announced financial results for its first quarter ended March 31, 2026.

First Quarter 2026 Financial Summary

A reconciliation between GAAP and non-GAAP information is contained in the financial statements below.

“AI-driven architectures are fundamentally increasing the volume, velocity, and complexity of network traffic, placing new demands on performance, availability, and security,” said Dhrupad Trivedi, President and Chief Executive Officer of A10 Networks. “AI is architecturally making the distinction between Enterprises and Service Providers obsolete, as the workloads and requirements are converging. A10 sits at a critical control point at the intersection of performance and security. Our investments and innovation focus have driven strong demand resulting in expanded commitments from our top customers.”

“Our model has continued to translate growth into increased profitability,” Trivedi added. “We're actively managing industry-wide input supply dynamics, turning these challenges into growth opportunities. We remain confident to deliver full-year expectations for cash flow as first quarter results were impacted by routine timing shifts. We believe our powerful combination of growth momentum, disciplined execution, and agile strategy positions us to drive strong financial performance and expect this to sustain capital returns to our shareholders while we invest in innovation to help maintain our strategic advantages.”

Outlook

For 2026, A10 management reiterates their previous guidance given at their February Investor Day. Management currently expects:

Conference Call

Management will host a call at 1:30 p.m. Pacific time (4:30 p.m. Eastern time) today, April 28, 2026, to discuss these results. Interested parties may access the conference call by dialing (888) 506-0062 (toll-free) or (973) 528-0011 (international) and referencing access code: 360454.

A live audio webcast of the conference call will be accessible from the “Investor Relations” section of A10 Network’s website at investors.a10networks.com. The webcast will be archived for one year. A telephonic replay of the conference call will be available until May 12, 2026 and may be accessed by dialing (877) 481-4010 (toll-free) or (919) 882-2331 (international) and entering the passcode: 53873.

Forward-Looking Statements

This press release contains “forward-looking statements,” including statements regarding dividends and capital return, demand and market trends, strategy and competitive positioning, financial performance and profitability, supply chain management, and 2026 financial guidance. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on assumptions that may prove to be incorrect, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Factors that may cause actual results to differ include any unforeseen need for capital which may require us to divert funds we may have otherwise used for the dividend program or stock repurchase program, which may in turn negatively impact our ability to administer the quarterly dividends or the repurchase of our common stock; a significant decline in global macroeconomic or political conditions that have an adverse impact on our business and financial results; an expansion of adversarial global trade dynamics or other changes to international trade regulations; business interruptions related to our supply chain; our ability to manage our business and expenses if customers cancel or delay orders; execution risks related to closing key deals and improving our execution; the continued market adoption of our products; our ability to successfully anticipate market needs and opportunities; our timely development of new products and features; our ability to achieve or maintain profitability; any loss or delay of expected purchases by our largest end-customers; our ability to maintain or improve our competitive position; competitive and execution risks related to cloud-based computing trends; our ability to attract and retain new end-customers and our largest end-consumers; our ability to maintain and enhance our brand and reputation; changes demanded by our customers in the deployment and payment model for our products; continued growth rates in markets relating to network security; the success of any future acquisitions or investments in complementary companies, products, services or technologies; the ability of our sales team to execute well; our ability to shorten our close cycles; the ability of our channel partners to sell our products; variations in product mix or geographic locations of our sales; risks associated with our presence in international markets; weaknesses or deficiencies in our internal control over financial reporting; our ability to timely file periodic reports required to be filed under the Securities Exchange Act of 1934; and other risks that are described in “Risk Factors” in our periodic filings with the Securities and Exchange Commission, including our Form 10-K filed with the Securities and Exchange Commission on February 25, 2026. We do not intend to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Non-GAAP Financial Measures

In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), we refer to certain non-GAAP financial measures, including non-GAAP net income, non-GAAP net income per basic and diluted share (or non-GAAP EPS), non-GAAP gross profit and gross margin, non-GAAP operating expenses, non-GAAP operating income and operating margin, Adjusted EBITDA and Adjusted EBITDA margin. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies.

A10 Networks considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the company by excluding certain items that, while they may recur, can vary significantly in amount and timing or are not directly indicative of ongoing operational trends, and are used by the company’s management to evaluate operating performance, prepare budgets and forecasts, and assess performance relative to peer companies.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

We define non-GAAP net income as our GAAP net income excluding: (i) stock-based compensation and related payroll tax, (ii) acquisition-related expense, (iii) amortization of acquired intangible assets, (iv) amortization of debt issuance costs, (v) certain legal expense and (v) income tax effect of non-GAAP items (i) to (v) listed above. We define non-GAAP net income per basic and diluted share as our non-GAAP net income divided by our basic and diluted weighted-average shares outstanding. We define non-GAAP gross profit as our GAAP gross profit excluding (i) stock-based compensation and related payroll tax and (ii) amortization of acquired intangible assets. We define non-GAAP gross margin as our non-GAAP gross profit divided by our GAAP revenue. We define non-GAAP operating expenses as our GAAP operating expenses excluding (i) stock-based compensation and related payroll tax, (ii) acquisition-related expense, (iii) amortization of acquired intangible assets and (iv) certain legal expense. We define non-GAAP operating income as our GAAP income from operations excluding (i) stock-based compensation and related payroll tax, (ii) acquisition-related expense, (iii) amortization of acquired intangible assets and (iv) certain legal expense. We define non-GAAP operating margin as our non-GAAP operating income divided by our GAAP revenue. We define Adjusted EBITDA as our GAAP net income excluding (i) interest and other income, net, (ii) depreciation and amortization expense, (iii) provision for income taxes, (iv) stock-based compensation and related payroll tax, (v) acquisition-related expense and (vi) certain legal expense. We define Adjusted EBITDA margin as our Adjusted EBITDA divided by our GAAP revenue.

Non-GAAP financial measures are presented for supplemental informational purposes only for understanding the company's operating results.

About A10 Networks

A10 Networks (NYSE: ATEN) delivers secure application and network solutions that protect, optimize, and scale business-critical systems across on-premises, hybrid cloud, and edge environments. Our portfolio enables large enterprises, service providers, and cloud platforms worldwide to deliver performance, reliability, and protection against cyber threats, while preparing their networks for the demands of AI and next-generation applications. Founded in 2004 and headquartered in San Jose, California, A10 Networks serves over 7,000 global customers. For more information, visit A10networks.com and follow us at A10Networks.

The A10 logo and A10 Networks are trademarks or registered trademarks of A10 Networks, Inc. in the United States and other countries. All other trademarks are the property of their respective owners.

Source: A10 Networks, Inc.

A10 NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share amounts, on a GAAP Basis)

Three Months Ended March 31,

2026

2025

Net revenue:

Products

43,986

35,979

Services

31,014

30,158

Total net revenue

75,000

66,137

Cost of net revenue:

Products

8,930

7,263

Services

6,346

6,179

Total cost of net revenue

15,276

13,442

Gross profit

59,724

52,695

Operating expenses:

Sales and marketing

20,014

19,545

Research and development

19,018

15,900

General and administrative

7,693

8,472

Total operating expenses

46,725

43,917

Income from operations

12,999

8,778

Non-operating income (expense):

Interest income

3,383

1,790

Interest and other income (expense), net

(2,158

)

(90

)

Total non-operating income, net

1,225

1,700

Income before income taxes

14,224

10,478

Provision for income taxes

2,192

935

Net income

12,032

9,543

Net income per share:

Basic

0.17

0.13

Diluted

0.17

0.13

Weighted-average shares used in computing net income per share:

Basic

71,667

73,555

Diluted

72,915

75,048

A10 NETWORKS, INC. RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME (unaudited, in thousands, except per share amounts)

Three Months Ended March 31,

2026

2025

GAAP net income

12,032

9,543

Non-GAAP items:

Stock-based compensation and related payroll tax

5,050

6,292

Acquisition-related expense

—

344

Amortization of acquired intangible assets

379

203

Amortization of debt issuance costs

365

—

Certain legal expense

497

526

Income tax-effect of non-GAAP items

(592

)

(1,873

)

Total non-GAAP items

5,699

5,492

Non-GAAP net income

17,731

15,035

GAAP net income per share:

Basic

0.17

0.13

Diluted

0.17

0.13

Non-GAAP items:

Stock-based compensation and related payroll tax

0.07

0.08

Acquisition-related expense

—

Amortization of acquired intangible assets

0.01

—

Amortization of debt issuance costs

0.01

—

Certain legal expense

0.01

Income tax-effect of non-GAAP items

(0.01

)

(0.02

)

Total non-GAAP items

0.08

0.07

Non-GAAP net income per share:

Basic

0.25

0.20

Diluted

0.24

0.20

Weighted average shares used in computing net income per share:

Basic

71,667

73,555

Diluted

72,915

75,048

Net income and earnings per share excluding adjustments are non-GAAP financial measures presented as supplemental financial measures to enable a user of the financial information to understand the impact of these adjustments on reported results and to facilitate comparison of operating results across reporting periods. These financial measures should not be considered an alternative to net income, operating income, cash flows provided by operating activities, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our adjusted net income and earnings per share may not be comparable to similarly titled measures of another company because companies may not all calculate adjusted net income and earnings per share in the same manner.

A10 NETWORKS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands, except par value, on a GAAP Basis)

As of March 31, 2026

As of December 31, 2025

ASSETS

Current assets:

Cash and cash equivalents

57,895

71,139

Marketable securities

311,867

306,714

Accounts receivable, net of allowances of $46 and $66, respectively

69,003

62,069

Inventory

20,172

18,032

Prepaid expenses and other current assets

20,611

18,000

Total current assets

479,548

475,954

Property and equipment, net

51,972

50,221

Goodwill

15,134

Intangible assets, net

5,879

6,259

Deferred tax assets, net

63,034

62,109

Other non-current assets

18,853

20,136

Total assets

634,420

629,813

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

14,078

11,694

Accrued and other liabilities

30,740

41,132

Deferred revenue, current

84,298

80,824

Total current liabilities

129,116

133,650

Deferred revenue, non-current

62,864

61,982

Long-term debt

219,153

218,787

Other non-current liabilities

2,450

3,848

Total liabilities

413,583

418,267

Stockholders' equity:

Common stock, $0.00001 par value: 500,000 shares authorized; 92,395 and 91,996 shares issued and 71,759 and 71,498 shares outstanding, respectively

Treasury stock, at cost: 20,636 and 20,498 shares, respectively

(252,408

)

(249,912

)

Additional paid-in-capital

536,611

531,790

Dividends paid

(77,089

)

(72,785

)

Accumulated other comprehensive income (expense)

(103

)

659

Retained earnings

13,825

1,793

Total stockholders' equity

220,837

211,546

Total liabilities and stockholders' equity

634,420

629,813

A10 NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands, on a GAAP Basis)

Three Months Ended March 31,

2026

2025

Cash flows from operating activities:

Net income

12,032

9,543

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

3,969

3,396

Stock-based compensation

4,821

6,018

Other non-cash items

716

1,237

Changes in operating assets and liabilities:

Accounts receivable

(6,974

)

10,543

Inventory

(2,147

)

1,152

Prepaid expenses and other assets

(3,654

)

(2,896

)

Accounts payable

902

(5,646

)

Accrued and other liabilities

(11,790

)

(8,175

)

Deferred revenue

4,356

2,032

Net cash provided by operating activities

2,231

17,204

Cash flows from investing activities:

Proceeds from sales and maturities of marketable securities

58,525

30,744

Purchases of marketable securities

(64,282

)

(41,896

)

Acquisition

—

(19,100

)

Capital expenditures

(2,920

)

(4,494

)

Net cash used in investing activities

(8,677

)

(34,746

)

Cash flows from financing activities:

Proceeds from the issuance of convertible notes

—

225,000

Payment of debt issuance costs

—

(7,277

)

Repurchase of common stock

(2,495

)

(47,030

)

Payments for dividends

(4,303

)

(4,434

)

Net cash provided by (used in) financing activities

(6,798

)

166,259

Net increase (decrease) in cash and cash equivalents

(13,244

)

148,717

Cash and cash equivalents—beginning of period

71,139

95,129

Cash and cash equivalents—end of period

57,895

243,846

Non-cash investing and financing activities:

Transfers between inventory and property and equipment

314

Capital expenditures included in accounts payable

1,482

193

Supplemental cash flow disclosure:

Cash paid for income taxes, net

111

Cash paid for interest on debt

3,094

—

A10 NETWORKS, INC. RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT (unaudited, in thousands, except percentages)

Three Months Ended March 31,

2026

2025

GAAP gross profit

59,724

52,695

GAAP gross margin

79.6

79.7

Non-GAAP adjustments:

Stock-based compensation and related payroll tax

409

646

Amortization of acquired intangible assets

281

150

Non-GAAP gross profit

60,414

53,491

Non-GAAP gross margin

80.6

80.9

A10 NETWORKS, INC. RECONCILIATION OF GAAP TOTAL OPERATING EXPENSES TO NON-GAAP TOTAL OPERATING EXPENSES (unaudited, in thousands)

Three Months Ended March 31,

2026

2025

GAAP total operating expenses

46,725

43,917

Non-GAAP adjustments:

Stock-based compensation and related payroll tax

(4,641

)

(5,646

)

Acquisition-related expense

—

(344

)

Amortization of acquired intangible assets

(98

)

(53

)

Certain legal expense

(497

)

(526

)

Non-GAAP total operating expenses

41,489

37,348

A10 NETWORKS, INC. RECONCILIATION OF GAAP INCOME FROM OPERATIONS TO NON-GAAP OPERATING INCOME (unaudited, in thousands, except percentages)

Three Months Ended March 31,

2026

2025

GAAP income from operations

12,999

8,778

GAAP operating margin

17.3

13.3

Non-GAAP adjustments:

Stock-based compensation and related payroll tax

5,050

6,292

Acquisition-related expense

—

344

Amortization of acquired intangible assets

379

203

Certain legal expense

497

526

Non-GAAP operating income

18,925

16,143

Non-GAAP operating margin

25.2

24.4

A10 NETWORKS, INC. RECONCILIATION OF GAAP NET INCOME TO EBITDA AND ADJUSTED EBITDA (NON-GAAP) (unaudited, in thousands, except percentages)

Three Months Ended March 31,

2026

2025

GAAP net income

12,032

9,543

GAAP net income margin

16.0

14.4

Exclude: Interest and other income, net

(1,225

)

(1,700

)

Exclude: Depreciation and amortization

3,969

3,599

Exclude: Provision for income taxes

2,192

935

EBITDA

16,968

12,377

Exclude: Stock-based compensation and related payroll tax

5,050

6,292

Exclude: Acquisition-related expense

—

344

Exclude: Certain legal expense

497

526

Adjusted EBITDA

22,515

19,539

Adjusted EBITDA margin

30.0

29.5

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