A10 Networks (ATEN) AI Stock Analysis

• Market Cap: $1.31B
• Dividend Yield: 1.32%
• Average Volume (3M): 734.13K
• Price to Earnings (P/E): 26.6
• Beta (1Y): 1.02
• Revenue Growth: 11.04%
• EPS Growth: 18.70%
• Country: US
• Employees: 481
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.21
• Shares Outstanding: 72,152,620
• 10 Day Avg. Volume: 805,626
• 30 Day Avg. Volume: 734,134
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 4.62
• Enterprise Value/Gross Profit: 5.80
• Enterprise Value/Ebitda: 19.90
• 1Y Price Target: $22.80
• Price Target Upside: 24.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 76 Outperform
• Price Target: $20.00 ▲(9.11% Upside)

A10 Networks' strong financial performance and positive earnings call sentiment are the primary drivers of its overall score. The company's alignment with AI and cybersecurity trends supports growth prospects. However, technical indicators suggest potential resistance, and the valuation appears high, which could limit upside potential.

Positive Factors

Revenue Growth

A10 Networks' strong revenue growth, driven by strategic investments in enterprise and AI infrastructure, indicates robust market demand and effective business strategies, supporting long-term expansion.

Cash Flow and Financial Position

Strong cash generation and a solid financial position with significant cash reserves enhance A10 Networks' ability to invest in growth opportunities and weather economic fluctuations.

AI and Cybersecurity Alignment

Strategic alignment with AI and cybersecurity trends positions A10 Networks for sustained growth, leveraging industry demand for advanced technology solutions.

Negative Factors

Challenges in North American Market

Challenges in the North American Service Provider market could hinder revenue growth, as delayed capital expenditures may impact sales and market penetration in this key region.

Modest Revenue Growth

While profitability is strong, the modest revenue growth rate may limit A10 Networks' ability to rapidly scale and capture market share compared to faster-growing competitors.

Debt Levels

Although manageable, the current debt levels require careful monitoring to ensure they do not impede financial flexibility or increase financial risk, especially in volatile markets.

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 solid financial health with strong profitability, efficient operations, and a stable balance sheet. While revenue growth is moderate, profitability metrics are robust, and cash flow generation is strong, supporting ongoing investments and debt management. The company is well-positioned in the software infrastructure industry, though careful monitoring of debt levels is advised.

Income Statement

A10 Networks demonstrates strong profitability with a consistent gross profit margin around 80% and a net profit margin improving to 18.7% TTM. Revenue growth is modest at 3.5% TTM, but EBIT and EBITDA margins are solid, indicating efficient operations. The company shows a positive trajectory in revenue and profit growth, though the growth rate has slowed compared to previous years.

Balance Sheet

The balance sheet is stable with a manageable debt-to-equity ratio of 1.17 TTM, indicating moderate leverage. Return on equity is robust at 23.3% TTM, reflecting effective use of equity to generate profits. The equity ratio is healthy, suggesting a strong capital structure, though the increase in debt warrants monitoring.

Cash Flow

Cash flow performance is strong, with free cash flow growing by 15% TTM. The operating cash flow to net income ratio is 0.66, indicating good cash generation relative to net income. The free cash flow to net income ratio of 0.82 suggests efficient cash management, supporting the company's liquidity and investment capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	276.44M	261.70M	251.70M	280.34M	250.04M	225.53M
Gross Profit	220.39M	210.28M	203.74M	223.51M	196.54M	175.38M
EBITDA	64.20M	55.26M	47.99M	61.76M	42.70M	24.74M
Net Income	51.02M	50.14M	39.97M	46.91M	94.89M	17.82M
Balance Sheet
Total Assets	607.91M	432.81M	389.81M	369.11M	393.08M	290.81M
Cash, Cash Equivalents and Short-Term Investments	367.38M	195.56M	159.30M	150.99M	185.04M	158.13M
Total Debt	229.83M	11.94M	16.82M	16.85M	19.32M	23.50M
Total Liabilities	403.93M	200.99M	181.93M	188.09M	184.20M	174.84M
Stockholders Equity	203.99M	231.83M	207.88M	181.01M	208.89M	115.97M
Cash Flow
Free Cash Flow	70.64M	78.22M	33.62M	55.30M	44.93M	51.72M
Operating Cash Flow	85.23M	90.49M	44.51M	66.10M	50.10M	55.29M
Investing Cash Flow	-47.12M	-48.35M	13.61M	11.09M	-38.07M	5.20M
Financing Cash Flow	137.36M	-44.26M	-28.85M	-88.14M	-16.38M	-22.95M

A10 Networks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATEN, the sentiment is Positive. The current price of 18.33 is above the 20-day moving average (MA) of 17.63, above the 50-day MA of 17.83, and above the 200-day MA of 18.04, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 59.55 is Neutral, neither overbought nor oversold. The STOCH value of 92.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATEN.

A10 Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEN	76 Outperform	$1.31B	26.56	24.39%	1.32%	11.04%	18.70%
VRNS	72 Outperform	6.70B	-65.30	-30.14%	―	14.29%	-14.42%
NTCT	69 Neutral	1.87B	25.95	4.70%	―	5.29%	0.00%
FFIV	68 Neutral	18.97B	29.12	19.22%	―	8.94%	22.30%
RDWR	66 Neutral	1.18B	85.75	4.18%	―	11.51%	0.00%
VRNT	62 Neutral	1.22B	30.78	4.61%	―	-2.32%	7.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

A10 Networks Corporate Events

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 Reports Q2 2025 Financial Results

On August 5, 2025, A10 Networks announced its financial results for the second quarter of 2025, reporting a 15% year-over-year revenue increase to $69.4 million. The company also declared a quarterly dividend of $0.06 per share, payable on September 2, 2025. The results highlight A10’s strong operational discipline and strategic positioning, benefiting from increased demand in AI data centers and cybersecurity solutions, which contributed to improved profitability and cash flow.

The most recent analyst rating on (ATEN) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on A10 Networks stock, see the ATEN Stock Forecast page.