A10 Networks (NYSE:ATEN) reported record quarterly and full-year results for 2025, highlighting continued demand tied to security, cloud infrastructure, and customer investments supporting AI-driven workloads. On the company’s fourth-quarter earnings call, executives said customers are increasingly prioritizing traffic management, availability, and security at scale as they expand high-performance computing and data-intensive applications.
Record revenue and profitability in Q4 and full year 2025
CEO Dhrupad Trivedi said A10 delivered its “largest single quarter ever,” posting fourth-quarter revenue of $80.4 million, up 8.3% year-over-year despite what he described as an unusually strong seasonal fourth quarter in the prior year. For the full year, revenue rose 11% year-over-year to $290.6 million, which management characterized as outpacing much of its competitive landscape.
On expenses and earnings, Caron said fourth-quarter operating expenses were $43.6 million, resulting in a non-GAAP operating margin of 26.6% as the company increased investments—primarily in research and development focused on next-generation networking and security. The non-GAAP effective tax rate was 15.7%, and Q4 net income was $19.1 million, or $0.26 per share, on a diluted weighted share count of 72.7 million. Adjusted EBITDA was $24.9 million, or 31% of revenue.
For full-year 2025, A10 posted adjusted EBITDA of $86 million, representing 29.6% of revenue. Non-GAAP net income was $66.3 million, or $0.90 per share, up from $64.8 million, or $0.86 per share, in the prior year, which Caron said reflected EPS growth even as the company invested in AI and security initiatives.
Security mix and customer wins highlighted
Trivedi said security-led solutions have reached the company’s long-term goal of 65% of total revenue on a sustainable basis. Caron added that within product revenue during the fourth quarter, A10 achieved its long-term target of generating more than 65% of total revenue from security-led solutions. For the full year, she said security-led revenue represented 72% of total revenue.
Management pointed to several customer wins during the quarter as examples of demand aligned with A10’s positioning around performance, security, and efficiency at scale. Trivedi described a win with a large global data and analytics software provider serving regulated industries, where rising encrypted traffic driven by platform expansion and acquisitions created performance and cost challenges. He said A10 was selected for high-performance solutions with hardware acceleration and improved security, enabling infrastructure consolidation and improved cost efficiency.
Trivedi also discussed a “significant new win” with a large global airline operating highly distributed, mission-critical digital platforms. He said the customer sought better automation, performance, and centralized management across a hybrid environment while reducing operating costs, and selected A10 for cybersecurity and next-generation networking capabilities with deep automation and consistent performance for an always-on operating model.
Segment and regional trends: cloud strength and APJ headwinds
In the fourth quarter, Caron said enterprise customers represented 42% of revenue, while service provider revenue accounted for 58% and was “weighted towards cloud providers,” which she framed as evidence of alignment with AI infrastructure build-out. She noted that non-cloud service provider revenue was flat year-over-year, reflecting a mix shift as customers prioritize security and next-generation networking initiatives over legacy infrastructure.
By geography, the Americas represented 64% of global revenue in Q4. Caron said macro headwinds in the rest of the world—such as persistent inflation and the threat of tariffs—were more than offset by strength in the Americas. For the full year, revenue from the Americas increased 30%, EMEA increased 12%, and APJ declined amid what Caron characterized as macroeconomic headwinds.
In the Q&A, management attributed most of the APJ weakness to Japan. Trivedi said he did not see share loss there, but described depressed spending tied to the macro environment, including low GDP and concerns about tariffs. He added that performance outside Japan was “fine” and closer to the company average.
Cash, capital returns, and supply-chain commentary
A10 ended the year with $378 million in cash and marketable securities and deferred revenue of $142.8 million as of December 31, Caron said. During 2025, the company paid $17.4 million in cash dividends and repurchased $68.9 million in shares, returning $86.3 million in total to shareholders. The board approved a quarterly cash dividend of $0.06 per share, payable March 2, 2026 to shareholders of record as of February 16, 2026, and Caron said $53.4 million remained under the company’s $75 million repurchase authorization.
On cash generation, Caron said A10 produced $22.7 million in operating cash flow in Q4, with capital expenditures of $6.7 million, resulting in free cash flow of $16 million. Trivedi later addressed the higher CapEx in response to an analyst question, citing investments in backend infrastructure to support services—such as hosting, data centers, and security operations—as well as early-stage investments in hardware for AI-related demos and proof-of-concepts, including processors, chips, and GPUs.
Caron also said the company is monitoring the broader supply environment, including the memory segment, but does not expect an impact on customer deliveries based on its supply management processes. She said A10 has taken proactive steps around supply planning, supplier engagement, and component flexibility, referencing similar actions taken in prior constrained environments.
2026 outlook: revenue growth and margin expansion
Trivedi said A10’s portfolio is positioned to support AI-related demands such as managing East-West traffic, workload prioritization, and low-latency throughput with integrated security. For 2026, he outlined an initial full-year outlook that includes revenue growth of 10% to 12% over 2025, non-GAAP gross margin within the company’s 80% to 82% model range, and expectations for net and EBITDA margin expansion from current levels. He added that A10 expects EPS growth to exceed revenue growth.
In Q&A, Trivedi said the company’s improved visibility reflects a more durable revenue base and more diversified exposure across enterprise, service provider, and AI-related spending, compared with a prior period when results were more tied to traditional service provider capex cycles. He noted the company operates with what he described as a six-to-nine-month cycle of visibility. On enterprise trends, he reiterated that quarterly results can be “choppy” as A10 expands its footprint, but said he expects enterprise to grow at least in line with the company’s broader 10% to 12% growth expectation on a trailing 12-month basis.
Trivedi also discussed service provider trends, saying the majority of improvement in 2025 came from cloud-oriented companies building infrastructure, while spending patterns among traditional telcos improved in the second half of the year. He attributed telco demand to security improvements and the need to add network capacity and modernize without necessarily building greenfield networks.
About A10 Networks (NYSE:ATEN)
A10 Networks, Inc (NYSE: ATEN), headquartered in San Jose, California, designs and sells networking and security solutions that accelerate application performance and protect data across on-premises, cloud and hybrid environments. Founded in 2004, the company’s offerings target enterprises, service providers and cloud operators seeking high availability, secure access and optimized traffic delivery for critical applications.
The company’s core portfolio includes application delivery controllers (ADCs) for load balancing and traffic management, advanced distributed denial-of-service (DDoS) protection appliances, SSL inspection solutions and carrier-grade NAT (CGNAT) platforms.
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