A10 Networks (ATEN) AI Stock Analysis

• Market Cap: $1.30B
• Dividend Yield: 1.37%
• Average Volume (3M): 473.23K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 1.15
• Revenue Growth: 10.27%
• EPS Growth: 3.52%
• Country: US
• Employees: 481
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.23
• Shares Outstanding: 71,726,490
• 10 Day Avg. Volume: 503,051
• 30 Day Avg. Volume: 473,232
• PEG Ratio: 1.05
• Price to Book (P/B): 5.88
• Price to Sales (P/S): 5.21
• P/FCF Ratio: 17.43
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 4.16
• Enterprise Value/Gross Profit: 5.22
• Enterprise Value/Ebitda: 18.49
• 1Y Price Target: $23.67
• Price Target Upside: 37.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.86
• Revenue Forecast (FY): $283.58M

• Rating: 77 Outperform
• Price Target: $20.50 ▲(18.98% Upside)

A10 Networks' overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting revenue growth and improved profitability metrics. Technical analysis and valuation suggest caution, with potential short-term bearish momentum and a relatively high P/E ratio. The company's strategic focus on AI and cybersecurity positions it well for future growth, despite regional challenges.

Positive Factors

Revenue Growth

Consistent revenue growth, particularly in the Americas, highlights strong market demand and effective business strategies, supporting long-term expansion.

Profitability Metrics

Improved profitability metrics indicate effective cost management and operational efficiency, enhancing long-term financial sustainability.

Security-Led Revenue Growth

Strong demand for integrated security solutions positions A10 Networks as a leader in cybersecurity, ensuring sustained revenue streams.

Negative Factors

Rising Debt Levels

Increased debt levels may constrain financial flexibility and require careful management to prevent long-term financial strain.

Macroeconomic Headwinds

Macroeconomic challenges in non-Americas regions could hinder global growth and require strategic adjustments to maintain performance.

Slow Growth in Japan

Economic challenges in Japan may impact regional performance, necessitating strategic focus to mitigate potential revenue declines.

A10 Networks Business Overview & Revenue Model

Company Description

A10 Networks, Inc. provides networking solutions in the Americas, Japan, other Asia Pacific, and EMEA countries. The company offers Thunder Application Delivery Controller (ADC) that provides advanced server load balancing; Lightning ADC, a cloud-native software-as-a-service platform to boost the delivery and security of applications and microservices; and Thunder Carrier Grade Networking product, which offers standards-compliant address and protocol translation services for service provider networks. It also provides Thunder Threat Protection System (TPS) for the protection of networks and server resources against massive distributed denial of service attacks; Thunder Secure Sockets Layer (SSL) Insight solution that decrypts SSL-encrypted traffic and forwards it to a third-party security device for deep packet inspection; and Thunder Convergent Firewall, which addresses various critical security capabilities in one package by consolidating various security and networking functions in a single appliance. In addition, the company offers intelligent management and automation tools comprising harmony controller that provides intelligent management, automation, and analytics for secure application delivery in multi-cloud environment; and aGalaxy TPS, a multi-device network management solution. A10 Networks, Inc. delivers its solutions on optimized hardware appliances, bare metal software, containerized software, virtual appliances, and cloud-native software. It serves cloud providers; service providers include cloud, telecommunications, and multiple system and cable operators; government organizations; and enterprises in the technology, industrial, retail, financial, gaming, and education industries. The company markets its products through sales organizations, as well as distribution channel partners, including distributors, value added resellers, and system integrators. A10 Networks, Inc. was incorporated in 2004 and is headquartered in San Jose, California.

How the Company Makes Money

A10 Networks generates revenue through the sale of its hardware and software solutions, primarily focusing on application delivery controllers, DDoS protection, and security services. The company operates on a subscription-based model for many of its software offerings, allowing for recurring revenue through software licenses and maintenance contracts. Additionally, A10 Networks benefits from professional services and support contracts that accompany its products. The company has formed strategic partnerships with major cloud service providers and technology firms, which enhances its market reach and creates additional revenue opportunities. Furthermore, the increasing demand for cybersecurity solutions in a rapidly evolving digital landscape has bolstered A10's financial performance, as organizations seek to protect their networks from growing threats.

A10 Networks Financial Statement Overview

Summary

A10 Networks exhibits strong financial health with consistent revenue growth and profitability. The company maintains a balanced capital structure, though the recent increase in debt should be monitored. Cash flow management remains effective, supporting ongoing operations and potential investments. Continued focus on margin improvement and debt management will be crucial for sustaining financial performance.

Income Statement

A10 Networks demonstrates strong revenue growth with a TTM revenue increase of 2.88%. The company maintains robust profitability with a gross profit margin of 79.66% and a net profit margin of 17.78% in the TTM period. However, the slight decline in margins compared to the previous year indicates potential cost pressures or competitive pricing strategies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.06 in the TTM period, indicating a balanced approach to leveraging. Return on equity is strong at 24.04%, reflecting efficient use of equity to generate profits. The equity ratio of 33.25% suggests a stable financial structure, though the increase in debt warrants monitoring.

Cash Flow

Cash flow analysis reveals a healthy operating cash flow to net income ratio of 0.68 and a free cash flow to net income ratio of 0.82 in the TTM period. Free cash flow growth of 2.01% indicates effective cash management, although the slight decrease in operating cash flow coverage ratio suggests room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	284.41M	261.70M	251.70M	280.34M	250.04M	225.53M
Gross Profit	226.56M	210.28M	203.74M	223.51M	196.54M	175.38M
EBITDA	64.01M	55.26M	47.99M	61.76M	42.70M	24.74M
Net Income	50.57M	50.14M	39.97M	46.91M	94.89M	17.82M
Balance Sheet
Total Assets	620.13M	432.81M	389.81M	369.11M	393.08M	290.81M
Cash, Cash Equivalents and Short-Term Investments	370.86M	195.56M	159.30M	150.99M	185.04M	158.13M
Total Debt	218.45M	11.94M	16.82M	21.64M	23.30M	28.76M
Total Liabilities	413.92M	200.99M	181.93M	188.09M	184.20M	174.84M
Stockholders Equity	206.21M	231.83M	207.88M	181.01M	208.89M	115.97M
Cash Flow
Free Cash Flow	72.05M	78.22M	33.62M	55.30M	44.93M	51.72M
Operating Cash Flow	87.90M	90.49M	44.51M	66.10M	50.10M	55.29M
Investing Cash Flow	-215.22M	-48.35M	13.61M	11.09M	-38.07M	5.20M
Financing Cash Flow	135.81M	-44.26M	-28.85M	-88.14M	-16.38M	-22.95M

A10 Networks Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATEN, the sentiment is Negative. The current price of 17.23 is below the 20-day moving average (MA) of 17.75, below the 50-day MA of 17.87, and below the 200-day MA of 17.98, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 42.71 is Neutral, neither overbought nor oversold. The STOCH value of 30.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATEN.

A10 Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEN	77 Outperform	$1.30B	26.57	23.88%	1.37%	10.27%	3.52%
NTCT	75 Outperform	$1.96B	29.23	5.91%	―	9.60%	―
RDWR	65 Neutral	$1.02B	62.74	5.09%	―	10.40%	―
TUYA	64 Neutral	$1.31B	45.45	2.89%	4.73%	22.46%	―
VRNT	62 Neutral	$1.23B	30.75	4.72%	―	-2.32%	7.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RPD	48 Neutral	$922.63M	41.61	37.09%	―	3.08%	-54.07%

A10 Networks Corporate Events

A10 Networks’ 2030 Notes Indenture: A Barrier to Takeovers and Restructuring?

The provisions outlined in the 2030 Notes Indenture could pose significant challenges for A10 Networks by complicating or increasing the cost of potential takeover attempts. Specifically, these provisions grant noteholders the right to demand repurchase of their notes for cash if a takeover is deemed a fundamental change, and may require a temporary increase in the conversion rate for make-whole fundamental changes. Such financial obligations could deter third-party acquisitions or the removal of current management, even in scenarios where such changes might be advantageous to noteholders or common stockholders. Consequently, these provisions could act as a barrier to otherwise beneficial corporate restructuring or acquisition opportunities.

A10 Networks Reports Strong Q3 Growth Amid Challenges

A10 Networks’ recent earnings call conveyed a predominantly positive sentiment, underscored by notable revenue growth, especially in the Americas, fueled by investments in AI infrastructure. The company has shown improved profitability metrics and a strong focus on security-led revenues. Despite these positive trends, challenges persist due to macroeconomic headwinds and slower growth in regions such as Japan.

A10 Networks Reports Strong Q3 2025 Revenue Growth

A10 Networks, Inc., headquartered in San Jose, California, is a prominent provider of secure application and network solutions, catering to enterprises, service providers, and cloud platforms globally with a focus on cybersecurity and AI-driven infrastructure.

A10 Networks Reports Q3 2025 Financial Results

On November 4, 2025, A10 Networks announced its financial results for the third quarter of 2025, reporting a revenue increase of 11.9% year-over-year to $74.7 million. The company also declared a quarterly dividend of $0.06 per share, payable on December 1, 2025. The growth is attributed to the rising demand for AI infrastructure and cybersecurity solutions, with A10 Networks’ offerings aligning well with these market trends. The company returned $15.3 million to investors through share repurchases and dividends, and it maintains a strong focus on operational discipline to drive sustainable growth.

The most recent analyst rating on (ATEN) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on A10 Networks stock, see the ATEN Stock Forecast page.

A10 Networks Appoints Michelle Caron as New CFO

On September 2, 2025, Brian Becker resigned as CFO of A10 Networks, effective September 30, 2025, with no expected disruption to operations. Michelle Caron, with extensive finance leadership experience, was appointed as the new CFO, effective September 24, 2025, bringing expertise from her previous roles at Danaher Corporation.

The most recent analyst rating on (ATEN) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on A10 Networks stock, see the ATEN Stock Forecast page.

A10 Networks’ Earnings Call Highlights Robust Growth and Strategic Focus

The recent earnings call for A10 Networks painted a picture of robust growth and profitability, underscored by impressive performance in the AI and Enterprise segments. The company demonstrated high customer retention and maintained a strong cash position. However, challenges were noted, particularly with North American Service Providers’ spending hesitations and a reliance on growth from the North American Enterprise sector.

A10 Networks Reports Strong Q2 2025 Results

A10 Networks, Inc., based in San Jose, California, is a prominent provider of secure application services and solutions, catering to a diverse clientele that includes large enterprises and cloud service providers globally. The company specializes in ensuring the security, availability, and efficiency of business-critical applications and networks across on-premises, hybrid cloud, and edge-cloud environments.