A10 Networks (ATEN) Financials

A10 Networks has demonstrated steady revenue growth over the past two years, with total revenue increasing from approximately $57.7 million in Q1 2023 to $69.4 million in Q2 2025. This indicates the company’s ability to expand its sales over time.

Gross profit margins have held consistently strong, generally around the 75-80% level, reflecting effective management of cost of revenue relative to sales. For instance, in Q2 2025, gross profit was $54.7 million on $69.4 million revenue, about 78.9% margin.

Operating expenses, including selling, general & admin (SG&A), marketing, and research & development (R&D), have increased somewhat, with marketing expenses being a significant component, often surpassing $20 million quarterly recently. While investing in growth and innovation, these rising expenses pressure operating income.

Operating income saw some fluctuations, hitting a low point around $6.2 million in Q1 2023 but improving to $10.3 million in Q2 2025. The operating margin still remains moderate, typically under 20%, suggesting the company balances investment with profitability.

Net income attributable to common shareholders has grown from roughly $3.96 million in Q1 2023 to over $10.5 million in Q2 2025, indicating overall improved profitability. Earnings per share also more than doubled in this period from $0.05 to $0.15 basic EPS, despite share count remaining relatively stable, pointing to earnings growth outpacing dilution.

Balance sheet strength is clear with total assets increasing from about $357 million in Q1 2023 to over $607 million by Q2 2025. Cash and equivalents showed strong growth, especially in early 2024, fluctuating but ending Q2 2025 at $252.9 million, indicating ample liquidity.

Long-term debt is significant at $218 million as of Q2 2025, up from about $217.7 million in Q1 2024, which suggests ongoing leverage but stable debt levels in recent quarters.

Total equity has grown consistently, from approximately $185.5 million in Q1 2023 to $204 million in Q2 2025, reflecting retained earnings and overall shareholder value improvement.

Cash flow from operations is generally positive, with strong cash generation in most quarters, though some fluctuations have occurred, likely driven by working capital changes and investment timing.

• Steady revenue growth over last two years, up approximately 20% from Q1 2023 to Q2 2025.
• Strong and consistent gross profit margins near 75-80%, demonstrating cost control in production.
• Increasing net income and EPS indicating improving profitability over time.
• Growing cash and equivalents balance, providing financial flexibility and liquidity.
• Increasing total equity, reflecting retained earnings growth and shareholder value creation.
• Operating income fluctuates, with moderate operating margins under 20%, showing balance between investment and profit.
• Long-term debt remains high but stable, requiring attention to leverage and interest expenses.
• Operating expenses, especially marketing and R&D, have risen considerably, indicating a commitment to growth but increased cost pressure.
• Some volatility in cash flow from investing activities, including significant purchases of investments and property.
• Consistent repurchase of common stock and dividend payments, which reduce cash reserves.