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Fatpipe, Inc. (FATN) AI Stock Analysis

FATN

Fatpipe, Inc.

(NASDAQ:FATN)

Select Model
Rating:60Neutral
Price Target:$5.50â–²(0.73% Upside)
Action:reiterated
Date:11/01/26

The score is supported by strong profitability and a solid balance sheet, but is meaningfully capped by persistently negative operating/free cash flow, which undermines earnings quality. Technical indicators add near-term caution (below key moving averages and negative MACD), while valuation appears reasonable based on the P/E.

Positive Factors
High ProfitabilityThe company converts revenue into strong reported profits, with especially high gross margins and solid operating and net margins. This profitability provides a durable base for funding operations and investment, while giving the business resilience if revenue growth remains moderate.
Negative Factors
Negative Cash ConversionPersistent negative operating and free cash flow is the clearest weakness in the financial profile. It means reported earnings are not currently translating into cash generation, which can constrain internally funded growth and raises concerns about earnings quality until conversion improves.

Fatpipe, Inc. (FATN) vs. SPDR S&P 500 ETF (SPY)

-100%-50%0%50%100%150%FATN+41.67%SPY+13.13%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
$72.06M
Dividend Yield
―
Average Volume (3M)
67.25K
Price to Earnings (P/E)
13.1
Beta (1Y)
1.57
Revenue Growth
23.24%
EPS Growth
154.55%
Country
US
Employees
172
Sector
General
Sector Strength
55
Industry
Software - Infrastructure

Fatpipe, Inc. Business Overview & Revenue Model

Company Description

FatPipe, Inc. develops application-aware, secure software-defined wide area network, secure access service edge, and network monitoring service (NMS) software solutions in the United States, India, and internationally. The company offers SD-WAN, a ne...

How the Company Makes Money

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Fatpipe, Inc. Financial Statement Overview

Summary

Strong reported profitability (TTM gross margin ~87%, operating margin ~21%, net margin ~26%) and a healthy, modestly levered balance sheet (debt-to-equity ~0.23; ROE ~23%) are key positives. The major drag is cash quality: operating cash flow and free cash flow are negative across all periods including TTM (about -$1.0M), raising concerns about cash conversion despite positive earnings and uneven revenue growth (~5.7% TTM with inconsistency across years).

Income Statement

78Positive

Balance Sheet

84Very Positive

Cash Flow

32Negative
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue19.21M19.21M16.29M17.86M15.80M12.40M
Gross Profit17.48M17.48M15.23M16.79M14.69M11.71M
EBITDA4.33M4.33M4.16M6.60M3.83M1.03M
Net Income4.97M4.97M1.97M4.37M2.91M483.73K
Balance Sheet
Total Assets34.52M34.52M28.29M21.44M15.73M10.82M
Cash, Cash Equivalents and Short-Term Investments5.21M5.21M2.92M1.11M1.08M1.38M
Total Debt5.71M5.71M6.59M2.83M2.63M942.18K
Total Liabilities9.31M9.31M12.36M7.39M6.17M4.04M
Stockholders Equity25.22M25.22M15.93M13.94M9.37M6.57M
Cash Flow
Free Cash Flow-832.88K-832.88K-523.89K-382.61K-2.01M-228.97K
Operating Cash Flow-780.39K-780.39K-504.12K-363.43K-1.84M-190.61K
Investing Cash Flow-52.48K-52.48K-19.76K-19.19K-163.53K-38.35K
Financing Cash Flow3.32M3.32M2.49M205.68K1.69M-481.72K

Fatpipe, Inc. Technical Analysis

Technical Analysis SentimentNegative
Last Price5.46

Price Trends

50DMA5.50Negative
100DMA5.60Negative
200DMA4.18Positive

Market Momentum

MACD-0.06Negative
RSI44.22Neutral
STOCH26.64Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FATN, the sentiment is Negative. The current price of 5.46 is above the 20-day moving average (MA) of 5.18, below the 50-day MA of 5.50, and above the 200-day MA of 4.18, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 44.22 is Neutral, neither overbought nor oversold. The STOCH value of 26.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FATN.

Fatpipe, Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

FATN against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
OSPNOSPN81Outperform$946.72M13.8725.38%1.99%4.88%22.34%
CGNTCGNT64Neutral$702.27M-2264.28-0.03%―――
FATNFATN60Neutral$72.06M13.1023.24%―23.24%154.55%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
INTZINTZ41Neutral$14.27M-1.06-187.84%―-15.22%34.74%
CETXCETX38Underperform$2.13M-0.01-68.23%―-1.51%96.23%

* General Sector Average

Performance Comparison

-50%0%50%100%FATNOSPNVHCCETXINTZCGNTDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
FATN and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
FATNFatpipe, Inc.5.101.3636.36%
OSPNOnespan25.6614.16123.21%
VHCVirnetx Holding9.48-13.58-58.89%
CETXCemtrex1.24-44.26-97.27%
INTZIntrusion0.58-1.20-67.30%
CGNTCognyte Software Ltd.9.511.0712.68%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 01, 2026