FatPipe Inc. (FATN) Reports Third Quarter Fiscal Year 2026 Results. Revenues up 30%, MRR up 48% Y-o-Y, and Cash Flow Positive
Rhea-AI Summary
FatPipe (NASDAQ:FATN) reported Q3 fiscal 2026 results for the period ended December 31, 2025. Total revenue was $4.1 million, up 30% year‑over‑year, and Monthly Recurring Billings (MRR) grew 48% Y/Y. Total quarterly billings rose 27%.
Adjusted EBITDA was $0.59 million (~14% margin) and cash and cash equivalents totaled $6.2 million. Management highlighted expanded sales and channel coverage and multiple large multi‑site SD‑WAN deployments across education, financial services, and enterprise.
Positive
- Total revenue increased 30% YoY to $4.1 million
- Monthly Recurring Billings rose 48% YoY
- Total quarterly billings grew 27% YoY
- Adjusted EBITDA of $0.59M with ~14% margin
- Cash and cash equivalents of $6.2M provide liquidity
Negative
- None.
Market Reaction
Following this news, FATN has gained 86.95%, reflecting a significant positive market reaction. Argus tracked a peak move of +52.2% during the session. Our momentum scanner has triggered 32 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $3.43. This price movement has added approximately $12M to the company's valuation. Trading volume is exceptionally heavy at 305.6x the average, suggesting very strong buying interest.
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Key Figures
Market Reality Check
Peers on Argus
FATN was up 2.89% pre-release while close peers showed mixed moves, with names like KPLT up 0.46% and MLGO and LIDR down more than 5%, suggesting stock-specific rather than sector-driven dynamics.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 04 | Q2 2026 earnings | Positive | -6.6% | Reported $4.0M revenue, 49% MRR growth, 92% gross margin; shares fell. |
| Jul 30 | Q1 2026 earnings | Positive | -3.0% | Strong revenue, margin expansion and net income growth; stock declined. |
Recent earnings releases showed positive operational metrics but negative next-day price moves, indicating a pattern of market hesitation around results.
Across prior earnings, FatPipe emphasized high gross margins and growing recurring billings. Q1 FY2026 delivered $3.9 million in revenue with expanding margins and index inclusion, yet the stock fell 3.03%. Q2 FY2026 revenue was $4.0 million with 49% recurring billings growth and 92% gross margin, but shares declined 6.63%. Today’s Q3 FY2026 report, with revenue of $4.1 million, 30% growth and cash of $6.2 million, continues the theme of solid fundamentals versus a previously cautious tape around earnings.
Historical Comparison
In the last two earnings releases, FATN moved an average of 4.83% the next day, despite highlighting strong margins and recurring revenue growth, framing expectations for how markets may digest this Q3 update.
Earnings releases show a steady revenue climb from $3.9M in Q1 FY2026 to $4.0M in Q2 and $4.1M in Q3, alongside high gross margins, rapid recurring billings growth in the high-40% range, and continued scaling of large SD-WAN deployments.
Market Pulse Summary
The stock is surging +87.0% following this news. A strong positive reaction aligns with the report’s combination of 30% revenue growth, 48% recurring billings expansion, and positive adjusted EBITDA. Historically, prior earnings with robust margins still saw next-day declines, so a sharp gain would mark a break from that pattern. Investors would then weigh whether recurring growth, large multi-site deployments, and available cash of $6.2 million justify any re-rating after a long slide from the $23.27 52-week high.
Key Terms
sd-wan technical
AI-generated analysis. Not financial advice.
SALT LAKE CITY, UTAH / ACCESS Newswire / February 2, 2026 / FatPipe, Inc. (NASDAQ:FATN) ("FatPipe" or the "Company"), a pioneer and multiple patents holder in enterprise-class, application-aware, secure software-defined wide area network ("SD-WAN") and single-stack cybersecurity solutions, today announced its third quarter fiscal year 2026 results for the period ended December 31, 2025.
Q3 Highlights
Total revenue, including professional services, was
$4.1 million , representing30% growth compared to the third quarter of fiscal 2025Monthly Recurring Billings grew
48% compared to the third quarter of fiscal 2025, reflecting continued adoption of FatPipe's subscription offeringsTotal Quarterly Billings increased
27% compared to the third quarter of fiscal 2025Adjusted EBITDA for the three months ended December 31 was
$0.59 million , representing an EBITDA margin of approximately14% , reflecting operating leverage as the Company scales and invests in growth, compared to$0.57 million in the third quarter of fiscal 2025Cash and cash equivalents as of December 31, 2025, were
$6.2 million , providing flexibility to support continued growth initiativesContinued expansion of the sales organization and channel partner network to support growing pipeline activity
Closed multiple large multi-site SD-WAN deployments across education, financial services, and enterprise verticals
Financial Performance
Revenue growth during the quarter was driven by increased recurring billings, customer renewals, and new customer wins. FatPipe continued to see strong demand from customers seeking secure, high-performance alternatives to legacy networking and security vendors.
Management Commentary
"This quarter reflects continued momentum in our business as we execute on our growth strategy," said Dr. Ragula Bhaskar, CEO of FatPipe. "We are seeing strong demand for our secure, high-performance SD-WAN and cybersecurity solutions, particularly from customers looking to modernize critical infrastructure while reducing complexity and cost. With growing recurring billings, expanding sales coverage, and a differentiated single-stack cybersecurity offering, we believe FatPipe is well-positioned for sustained long-term growth."
"Our customers continue to deploy FatPipe at scale," added Sanchaita Datta, President and CTO of FatPipe. "During the quarter, we supported multiple large, complex deployments that highlight the reliability, performance, and security advantages of our platform. As organizations prioritize resilient connectivity and integrated security, our technology continues to stand out."
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.
About FatPipe, Inc.
FatPipe pioneered the concept of software-defined wide area networking (SD-WAN) and hybrid WANs that eliminate the need for cooperation from ISPs and allow enterprises and service providers to control multi-link network traffic. FatPipe offers a single-stack networking and cybersecurity platform backed by 13 U.S. patents related to multipath and software-defined networking. FatPipe products are sold through more than 200 resellers worldwide.
For more information, please visit www.fatpipeinc.com.
Follow us on X @FatPipe_Inc.
Company Contact
+1 801.683-5656 x 1140
Investor.ir@fatpipeinc.com
SOURCE: FatPipe Networks
View the original press release on ACCESS Newswire
FAQ
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