Double-digit Q1 2026 growth and dividend from A10 Networks (NYSE: ATEN)
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
A10 Networks reported strong first-quarter 2026 results, with revenue of $75.0 million, up 13.4% year-over-year, driven by demand for AI infrastructure. GAAP net income was $12.0 million, or $0.17 per diluted share, while non-GAAP net income reached $17.7 million, or $0.24 per diluted share.
Non-GAAP Adjusted EBITDA was $22.5 million, representing a healthy 30.0% of revenue, and non-GAAP gross margin was 80.6%. The company ended March 31, 2026 with $369.8 million in cash, cash equivalents and marketable securities, highlighting a solid balance sheet.
The Board approved a $0.06 per share quarterly cash dividend, payable on June 1, 2026 to stockholders of record on May 15, 2026. Management reiterated full-year 2026 guidance for revenue growth of 10–12%, Adjusted EBITDA margin of 28–30%, and EPS growth of 12–14% year-over-year.
Positive
- Strong profitable growth: Q1 2026 revenue rose 13.4% year-over-year to $75.0 million, with non-GAAP gross margin of 80.6% and Adjusted EBITDA margin of 30.0%, indicating high profitability alongside double-digit top-line expansion.
- Capital returns with robust liquidity: The company ended the quarter with $369.8 million in cash, cash equivalents and marketable securities, while repurchasing shares, paying $4.3 million in dividends, and approving a continued $0.06 per-share quarterly dividend.
Negative
- None.
Insights
A10 combines double‑digit growth with high margins and ongoing capital returns.
A10 Networks delivered Q1 2026 revenue of $75.0M, up 13.4% year-over-year, with strong non-GAAP gross margin of 80.6%. GAAP net income was $12.0M, and Adjusted EBITDA reached $22.5M, a robust 30.0% of revenue.
The company ended the quarter with $369.8M in cash, cash equivalents and marketable securities, supporting both investment and shareholder returns. It repurchased 137,000 shares for $2.5M and paid $4.3M in dividends, while the Board approved a new quarterly dividend of $0.06 per share.
Management reiterated 2026 guidance of 10–12% revenue growth, 28–30% Adjusted EBITDA margin and EPS growth of 12–14%. Taken together, the results and outlook signal durable profitability and continued capital return, assuming macro conditions and AI-driven demand trends remain supportive as described.
8-K Event Classification
6 items: 0.07, 0.08, 2.02, 7.01, 8.01, 9.01
6 items
Item 0.07
Item 0.07
Item 0.08
Item 0.08
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 revenue: $75.0 million
GAAP net income: $12.0 million
Non-GAAP net income: $17.7 million
+5 more
8 metrics
Q1 2026 revenue
$75.0 million
Up 13.4% year-over-year for quarter ended March 31, 2026
GAAP net income
$12.0 million
Quarter ended March 31, 2026; $0.17 diluted EPS
Non-GAAP net income
$17.7 million
Quarter ended March 31, 2026; $0.24 diluted EPS
Adjusted EBITDA
$22.5 million
Q1 2026, representing 30.0% of revenue
Non-GAAP gross margin
80.6%
Quarter ended March 31, 2026
Cash and marketable securities
$369.8 million
Balance as of March 31, 2026
Quarterly dividend
$0.06 per share
Payable June 1, 2026 to holders of record May 15, 2026
2026 revenue growth guidance
10–12%
Full-year 2026 expected revenue growth over prior year
Key Terms
Adjusted EBITDA, non-GAAP gross margin, forward-looking statements, deferred revenue, +1 more
5 terms
Adjusted EBITDA financial
"Non-GAAP Adjusted EBITDA of $22.5 million, representing 30.0% of revenue."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
non-GAAP gross margin financial
"GAAP gross margin of 79.6%; non-GAAP gross margin of 80.6%."
Non-GAAP gross margin is a measure of a company's profitability that shows how much money it makes from sales after subtracting the direct costs of producing its products or services, but without applying certain accounting adjustments required by standard rules. It helps investors understand the company's core earning ability by excluding items like one-time expenses or accounting changes. This metric provides a clearer picture of ongoing business performance beyond official financial reports.
forward-looking statements regulatory
"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 predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
deferred revenue financial
"Deferred revenue, current | 84,298 | | | 80,824"
Cash a company has already received for goods or services it has promised but not yet delivered; it's recorded as a liability because the company still owes that product, service, or future revenue recognition. For investors, deferred revenue signals upcoming work or deliveries that will convert into reported sales over time and affects short-term obligations, cash flow quality, and how quickly a firm can grow recognized revenue—think of it like prepaid subscriptions or gift cards a business must honor later.
convertible notes financial
"Proceeds from the issuance of convertible notes | — | | | 225,000"
Convertible notes are a type of short-term loan that a company receives from investors, which can later be turned into company shares instead of being paid back in cash. They matter to investors because they offer a way to support a company early on while giving the potential to own a stake in its success if the company grows and later raises more funding.
Earnings Snapshot
Revenue: $75.0 million · Guidance included
Q1 2026
Revenue
$75.0 million
+13.4% year-over-year
GAAP net income
$12.0 million
up from $9.5 million in Q1 2025
Non-GAAP net income
$17.7 million
up from $15.0 million in Q1 2025
Adjusted EBITDA
$22.5 million
up from $19.5 million in Q1 2025
Non-GAAP EPS (diluted)
$0.24
up from $0.20 in Q1 2025
Guidance
For 2026, management expects full-year revenue growth of 10–12%, Adjusted EBITDA margin between 28–30%, and EPS growth of 12–14% year-over-year.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________________________________
FORM 8-K
____________________________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
____________________________________________________________________________
(Exact name of the registrant as specified in its charter)
____________________________________________________________________________
| (State or Other Jurisdiction of Incorporation or Organization) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||
(Address of principal executive offices, including zip code)
(408 ) 325-8668
(Name and telephone number, including area code, of the person to contact in connection with this report)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
____________________________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On April 28, 2026, A10 Networks, Inc. (the “Company”) issued a press release regarding financial results for the quarter ended March 31, 2026. A copy of the press release is furnished herewith as Exhibit 99.1.
Item 7.01 Regulation FD Disclosure
On April 28, 2026, the Company posted on its website (www.a10networks.com) slides regarding the financial results for the quarter ended March 31, 2026. A copy of the slides is furnished herewith as Exhibit 99.2.
The information in Item 2.02, Item 7.01 and Item 9.01 in this Current Report on Form 8-K and the exhibits attached hereto shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended ("Exchange Act"), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act. The information in Item 2.02 shall not be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 8.01 Other Events.
On April 28, 2026, the Company announced that its Board of Directors (the “Board”) approved a quarterly dividend. The quarterly dividend, in the amount of $0.06 per share, will be payable, subject to any prior revocation, on June 1, 2026 to stockholders of record on May 15, 2026. Future dividends will be subject to further review and approval by the Board in accordance with applicable law. The Board reserves the right to adjust or withdraw the quarterly dividend in future periods as it reviews the Company’s capital allocation strategy from time-to-time.
Forward Looking Statements
This Current Report on Form 8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. These forward-looking statements involve risks and uncertainties. These forward-looking statements may be identified by terms such as “will,” “may,” “plans,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the anticipated amount, duration, methods, timing, term and other aspects of our dividend program and any anticipated benefits or value resulting from such program. These statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, any unforeseen need for capital which may require us to divert funds we may have otherwise used for the dividend program, which may in turn negatively impact our ability to administer the quarterly dividends. In addition, the timing and amount of future dividends, if any, will be made as management deems appropriate and will depend on a variety of factors including stock price, market conditions, corporate and regulatory requirements (including applicable securities laws and regulations and the rules of The New York Stock Exchange), any additional constraints related to material inside information the Company may possess, and capital availability. More information regarding these and other risks, uncertainties and factors is contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission ("SEC") on February 25, 2026, and in other reports filed by the Company with the SEC from time to time. You are cautioned not to unduly rely on these forward-looking statements, which speak only as of the date of this Current Report. All information in this Current Report and its attachments is as of the date stated and unless required by law, the Company undertakes no obligation to update or publicly revise any forward-looking statement to reflect circumstances or events after the date of this Current Report or to report the occurrence of unanticipated events other than as required by law or regulation.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit | Description | |||||||
| 99.1 | Press release dated April 28, 2026. | |||||||
| 99.2 | Slides of A10 Networks, Inc. dated April 28, 2026, regarding financial results of the first quarter ended March 31, 2026. | |||||||
| 104.1 | Cover Page Interactive Data File (embedded within the inline XBRL document). | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: April 28, 2026
| A10 NETWORKS, INC. | |||||
| By: /s/ Michelle Caron | |||||
| Michelle Caron | |||||
| Chief Financial Officer (Principal Accounting and Financial Officer) | |||||
EXHIBIT 99.1
A10 Networks Reports Financial Results for the First Quarter of 2026
Strong Demand for AI Infrastructure Drives 13.4% Revenue Growth
SAN JOSE, Calif., April 28, 2026 -- 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
•Quarterly revenue of $75.0 million (up 13.4% year-over-year).
•GAAP gross margin of 79.6%; non-GAAP gross margin of 80.6%.
•GAAP net income of $12.0 million, or $0.17 per diluted share, non-GAAP net income of $17.7 million, or $0.24 per diluted share.
•Non-GAAP Adjusted EBITDA of $22.5 million, representing 30.0% of revenue.
•The Company returned $6.8 million to investors, having repurchased 137,000 shares during the quarter at an average price of $18.13 per share for a total of $2.5 million and having paid $4.3 million in cash dividends in the quarter.
•The Board of Directors approved a quarterly cash dividend of $0.06 per share, payable June 1, 2026 to stockholders of record at the close of business on May 15, 2026.
•As of March 31, 2026, A10 had $369.8 million in cash, cash equivalents, and marketable securities.
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 the same. A10 sits at a critical control point at the intersection of performance and security. Our investments and innovation focus have continued to drive strong demand resulting in expanded commitments from our top customers scaling AI infrastructure deployments.”
“Our model has continued to translate growth into increased profitability,” continued Trivedi. “We're actively managing industry-wide input supply dynamics for certain components, turning these challenges into growth opportunities. We remain confident to deliver full-year expectations for operating cash flow as first quarter results were impacted by routine time shifts. We believe our powerful combination of growth momentum, disciplined execution, and agile strategy positions us to drive strong financial performance. This is currently expected to continue to support the return of capital 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:
•Full-year revenue growth of 10-12% over the prior year
•Adjusted EBITDA margin of between 28-30%
•EPS growth exceeding revenue growth rate, representing 12-14% growth year-over-year
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 (vi) 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.
Investor Contact:
Rob Fink / Tom Baumann
FNK IR
646.809.4048 / 646.349.6641
aten@fnkir.com
David Schroeder
VP, Corporate Development
investors@a10networks.com
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 | — | — | |||||||||
| Certain legal expense | 0.01 | 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 | 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 | 1 | 1 | |||||||||
| 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 | $ | 7 | $ | 314 | |||||||
| Capital expenditures included in accounts payable | $ | 1,482 | $ | 193 | |||||||
| Supplemental cash flow disclosure: | |||||||||||
| Cash paid for income taxes, net | $ | 111 | $ | 5 | |||||||
| 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 | % | |||||||
Q1 2026 Financial Results and Commentary April 28, 2026
Cautionary Statements & Disclosures This presentation and the accompanying oral presentation contain “forward-looking” statements that are based on our management’s beliefs and assumptions, 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 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. This presentation and the accompanying oral presentation also include 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 titles 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, exclusive of unusual events or factors that do not directly affect what we consider to be our core operating performance and are used by the company’s management for that purpose. 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 (vi) 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 purchased 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.
Agenda Q1 2026 Overview 2026 Outlook
Q1’26: Profitable Growth, Durable Secular Catalysts Consistent Profitability Key TakeawaysRevenue Overview Q1 Revenue increased 13.4% year-over-year Security-led revenue continues to exceed long-term target TTM Enterprise growth of 13%, Service Provider growth of 11% Non-GAAP gross margins of 80.6% Adjusted EBITDA margins of 30% Non-GAAP EPS of $0.24 (diluted) Increasing relevance supporting AI infrastructure and applications Investments in next-generation networking and security yielding positive results Profitability in line with expectations See Appendix for reconciliation to most comparable GAAP financial measures.
Revenue and Adjusted EBITDA $66.1 $69.4 $74.7 $80.4 $75.0 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Revenue, $ Millions $19.5 $19.7 $21.9 $24.9 $22.5 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Adjusted EBITDA, $ Millions $66.1 $75.0 Q1 2025 Q1 2026 Revenue, $ Millions $19.5 $22.5 Q1 2025 Q1 2026 Adjusted EBITDA is a Non-GAAP Financial Measure. See Appendix for reconciliation to most comparable GAAP financial measures. Adjusted EBITDA, $ Millions
Revenue by Customer Vertical $39.0 $32.8 Q1 2025 Q1 2026 Service Provider Revenue, $ Millions $27.1 $27.8 $26.9 $34.1 $42.2 $39.0 $41.6 $47.8 $46.3 $32.8 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Revenue, $ Millions Service Provider Enterprise $27.1 $42.2 Q1 2025 Q1 2026 Enterprise Revenue, $ Millions
Revenue by Geography 51% 59% 65% 64% 67% 28% 26% 22% 22% 19% 21% 15% 12% 14% 14% Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 $ Millions Americas APJ EMEA 67% 19% 14% Q1’26 $75.0 million
Unified Product Architecture What We Do AI Infrastructure Enablement Massive scale traffic management Carrier-grade traffic processing High-performance NAT Application-aware traffic steering East-west load balancing Flexible performance optimization for distributed workloads Multi-layer DDoS mitigation (L3-L7) Web and API protection for modern applications Intelligent & automated threat protection N o w Network Security Next-Generation Networking Legacy Networking AI prompt and traffic routing AI inference securityAI-powered predictive analytics N ex t Common Policy Engine Shared OS & Security Platform Unified Control Plane
Consistent Value Creation Business Model Revenue Growth Capital Allocation
Thank You
A10Networks.com
Appendix
Financial Performance Trends Numbers may not sum due to rounding. Please refer to the supplemental financials posted in the “Investor Relations” section of the A10 Networks website at investors.A10networks.com Gross Margin %, Operating Margin %, Adjusted EBITDA and EPS are Non-GAAP Financial Measures. See Appendix for reconciliation to most comparable GAAP financial measures. $ Millions (except Margins and EPS) Q1’23 Q2’23 Q3’23 Q4’23 FY 2023 Q1’24 Q2’24 Q3’24 Q4’24 FY 2024 Q1’25 Q2’25 Q3'25 Q4’25 FY 2025 Q1’26 Revenue $57.7 $65.8 $57.8 $70.4 $251.7 $60.7 $60.1 $66.7 $74.2 $261.7 $66.1 $69.4 $74.7 $80.4 $290.6 $75.0 Non-GAAP Gross Margin % 83.1% 80.2% 81.8% 81.8% 81.7% 81.9% 80.9% 81.3% 80.7% 81.2% 80.9% 80.0% 80.7% 80.8% 80.6% 80.6% Non-GAAP Operating Margin % 23.1% 23.1% 20.6% 30.4% 24.6% 18.5% 21.1% 22.6% 32.7% 24.2% 24.4% 23.6% 24.7% 26.6% 24.9% 25.2% Adjusted EBITDA (non-GAAP) $15.5 $17.4 $14.4 $23.9 $71.2 $13.9 $15.5 $17.8 $27.3 $74.5 $19.5 $19.7 $21.9 $24.9 $86.0 $22.5 Non-GAAP EPS $0.13 $0.19 $0.16 $0.25 $0.73 $0.17 $0.18 $0.21 $0.31 $0.86 $0.20 $0.21 $0.23 $0.26 $0.90 $0.24 Ending Cash & Marketable Securities $144.5 $153.9 $169.0 $159.3 $159.3 $182.1 $177.1 $182.1 $195.6 $195.6 $355.8 $367.4 $370.9 $377.9 $377.9 $369.8
GAAP to Non-GAAP – Gross Margin and EPS Numbers may not sum due to rounding. EPS data is presented on a basic and diluted basis. Please refer to the supplemental financials posted the “Investor Relations” section of the A10 Networks website at investors.A10networks.com.
GAAP to Non-GAAP – Operating Income Numbers may not sum due to rounding. Please refer to the supplemental financials posted the “Investor Relations” section of the A10 Networks website at investors.A10networks.com. Q3’23
GAAP to Non-GAAP – Adjusted EBITDA Numbers may not sum due to rounding. Please refer to the supplemental financials posted the “Investor Relations” section of the A10 Networks website at investors.A10networks.com.
FAQ
How did A10 Networks (ATEN) perform financially in Q1 2026?
A10 Networks delivered revenue of $75.0 million in Q1 2026, up 13.4% year-over-year. GAAP net income was $12.0 million, or $0.17 per diluted share, while non-GAAP net income reached $17.7 million, or $0.24 per diluted share.
What were A10 Networks’ profitability metrics for Q1 2026?
A10 reported a Q1 2026 non-GAAP gross margin of 80.6% and Adjusted EBITDA of $22.5 million, representing 30.0% of revenue. GAAP net income margin was 16.0%, demonstrating strong profitability for a company growing revenue at double-digit rates.
Did A10 Networks (ATEN) declare a dividend with this 8-K filing?
Yes. A10’s Board approved a quarterly cash dividend of $0.06 per share, payable on June 1, 2026 to stockholders of record on May 15, 2026. The Board noted future dividends will depend on ongoing review of capital allocation.
What guidance did A10 Networks provide for full-year 2026?
Management reiterated 2026 guidance of 10–12% full-year revenue growth, Adjusted EBITDA margin between 28–30%, and EPS growth of 12–14% year-over-year. This outlook reflects expectations for continued profitable expansion supported by demand for AI-related infrastructure.
How much cash and marketable securities does A10 Networks have?
As of March 31, 2026, A10 Networks held $369.8 million in cash, cash equivalents, and marketable securities. This sizable balance provides flexibility to fund operations, invest in innovation, repurchase shares, and pay dividends as authorized by the Board.
How are AI trends affecting A10 Networks’ business?
Management highlighted that AI-driven architectures are increasing network traffic volume, velocity, and complexity, boosting demand for A10’s performance and security solutions. They noted expanded commitments from top customers scaling AI infrastructure and see AI as a key driver of ongoing growth.