FatPipe CEO Publishes Letter to Shareholders

Rhea-AI Summary

FatPipe (NASDAQ:FATN) published a letter from CEO Dr. Ragula Bhaskar dated November 18, 2025, addressing recent post‑IPO share pressure after the expiration of the initial lockup and reaffirming the company’s strategic priorities.

The CEO referenced Q2 fiscal 2026 results (released November 4, 2025), highlighted investments in sales, partner enablement, and recurring revenue, and cited valuation data showing FatPipe trading at ~2.06x Price/Sales and ~2.05x EV/Sales versus sector averages of 11.20x and 11.54x.

FatPipe invited investors to a webcast on December 16, 2025 at 4:15 p.m. ET hosted by RedChip.

Positive

• Trades at ~2.06x Price/Sales versus 11.20x sector average
• Management cites investments in sales & recurring revenue
• Invitation to investor webcast on Dec 16, 2025

Negative

• Share price experienced downward pressure after IPO lockup expiry
• Increased trading volume and short-term volatility following shareholder exits

Insights

Corporate finance analyst

CEO letter frames post‑IPO selling as lockup expiry‑related and highlights valuation gap versus peers; operational momentum claimed.

FatPipe positions its product set—secure, application‑aware SD‑WAN and single‑stack cybersecurity—as a scalable recurring‑revenue model that management expects to convert into profitable growth. The note reiterates recent operational results released on November 4, 2025 and points to investments in sales and partner programs as the mechanism driving customer expansion.

The primary near‑term risk cited is sell‑side pressure after the IPO lockup expiry, which the CEO says increased trading volume and volatility but did not change fundamentals. The letter presents a relative valuation comparison (industry average Price/Sales ~11.20x and EV/Sales ~11.54x versus FatPipe ~2.06x Price/Sales and ~2.05x EV/Sales), framing this as a potential value opportunity if recurring revenue and margins scale as described.

Concrete items to watch: management’s detailed fiscal metrics and guidance in the referenced November 4, 2025 quarter release, execution on recurring‑revenue expansion, and investor reception at the investor webcast on December 16, 2025. Monitor those disclosures for measurable changes in revenue mix, margin trends, and any updated quantitative guidance over the next few quarters.

SALT LAKE CITY, UTAH / ACCESS Newswire / November 18, 2025 / FatPipe, Inc. (NASDAQ:FATN) ("FatPipe" or the "Company"), a pioneer in enterprise-class, application-aware, secure software-defined wide area network ("SD-WAN") solutions that provide high levels of reliability, security, and optimization for Wide Area Networks (WANs) and single-stack cybersecurity solutions, today announced it published a letter from its CEO, Dr. Ragula Bhaskar.

Dear Fellow Shareholders,

Following our successful IPO earlier this year, FatPipe's stock has recently experienced downward pressure as the initial shareholder lockup period expired. This has allowed certain long-term historical shareholders to exit or reduce their positions, resulting in increased trading volume and short-term volatility. While such activity is common following a company's transition to a public market, it does not reflect any change in our underlying fundamentals or business trajectory.

At FatPipe, we remain focused on executing our strategic priorities and expanding our customer base. Our second quarter fiscal year 2026 results, released on November 4, 2025, underscore the health of our operations and the momentum we continue to build across key markets.

Relative Valuation and Market Comparables

As we evaluate FatPipe's position within the broader networking and cybersecurity landscape, it is important to note how our valuation compares to peers in the SD-WAN and cybersecurity markets. According to an (1) NYU Stern analysis of Revenue Multiples by Sector (January 2025), 333 firms in the Software (System & Application) category traded at an average 11.20x Price/Sales multiple and 11.54x EV/Sales Multiple, while FatPipe currently trades at approximately a 2.06x Price to Sales multiple and 2.05x Enterprise Value/Sales multiple, respectively.

https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/psdata.html

This comparison underscores the relative value opportunity we believe exists for FatPipe as we continue to grow recurring revenue, expand margins, and demonstrate the scalability of our SD-WAN and cybersecurity model.

Positioned for Long-Term Growth

FatPipe continues to distinguish itself as a pioneer in secure, application-aware SD-WAN and single-stack cybersecurity solutions. Our integrated approach combines reliability, optimization, and advanced security capabilities that customers increasingly demand as they modernize their network edge.

Our investments in sales coverage, partner enablement, and recurring revenue offerings are designed to translate into sustained growth in fiscal 2026 and beyond. We are also seeing strong interest from both enterprise and public sector organizations seeking cost-effective, high-performance alternatives to legacy networking vendors.

As we continue to scale as a newly public company, our focus remains on disciplined execution, profitable growth, and long-term shareholder value creation.

Thank you for your continued support and confidence in FatPipe as we build on our leadership in SD-WAN and cybersecurity innovation.

Sincerely,
Dr. Ragula Bhaskar
Chief Executive Officer
FatPipe, Inc. (NASDAQ:FATN)

Join FatPipe's Investor Webcast on December 16

FatPipe is pleased to invite investors to a webinar on December 16, 2025, at 4:15 p.m. ET. The exclusive event, hosted by RedChip Companies, will feature FatPipe's CEO, Dr. Ragula Bhaskar, who will discuss the company's performance and latest developments in greater detail. A live question and answer session will follow the presentation.

To register for the free webinar, please visit: https://www.redchip.com/webinar/FATN/81442635058

Questions can be pre-submitted to FATN@redchip.com or online during the live event.

About FatPipe, Inc.

FatPipe pioneered the concept of software-defined wide area networking (SD-WAN) and hybrid WANs that eliminated the need for cooperation from ISPs and allow companies and service providers to control multi-link network traffic worldwide. FatPipe has now pioneered cost-effective, advanced single-stack cybersecurity for on-premise deployments that significantly improve network and cybersecurity for SMBs.

For more information, please visit www.fatpipeinc.com.

Follow us on X @FatPipe_Inc.

Forward-Looking Statements

Certain statements contained in this press release, including statements relating to the Company's expectations regarding the completion, timing and size of its proposed public offering and listing may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on management's current expectations and are inherently subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. These risks and uncertainties include, but are not limited to, risks and uncertainties associated with the consummation of the offering and other risks described in FatPipe's registration statement on Form S-1, as it may be amended from time to time. Except as required by law, FatPipe expressly disclaims a duty to provide updates to forward-looking statements, whether as a result of new information, future events or other occurrences.

Company Contact Info

+1 801.683-5656 x 1140
Investor.ir@fatpipeinc.com

SOURCE: FatPipe Networks

View the original press release on ACCESS Newswire

FAQ

Why did FatPipe (FATN) shares fall after the IPO lockup expired on November 2025?

The CEO said expiration allowed some long-term shareholders to exit or reduce positions, increasing trading volume and short-term volatility.

What valuation multiples did FatPipe (FATN) report on November 18, 2025?

FatPipe was reported trading at approximately 2.06x Price/Sales and 2.05x EV/Sales compared with sector averages of 11.20x and 11.54x.

When is the FatPipe (FATN) investor webcast and who will present?

The webcast is scheduled for December 16, 2025 at 4:15 p.m. ET and will feature CEO Dr. Ragula Bhaskar.

Did FatPipe (FATN) provide Q2 fiscal 2026 financial results in the November 18, 2025 letter?

The letter referenced Q2 fiscal 2026 results released on November 4, 2025 but did not disclose specific financial figures in the letter.

What growth initiatives did FatPipe (FATN) highlight for fiscal 2026?

Management highlighted investments in sales coverage, partner enablement, and expanding recurring revenue offerings.