One-glance verdict
Undervalued
$35.73 our estimate vs market $24.76
Wall Street consensus: $36.00 (0.8% higher than our fair-value estimate)
31% below our estimate, below the bear case
Fundamentals snapshot
A10 Networks, Inc.
ATEN · NYQ · Technology · Software - Infrastructure
Current price
$24.76
52-week range
$16.52 - $38.49
Market cap
$1.78B
Balance sheet
Healthy
7.43x Adequate
Net cash $137.01M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 12.6% last year.
- Reward Returns 21.8% on equity, ahead of 66% of its peers.
- Risk Insider ownership is only 1.6% (peer median: 14.8%).
- Risk Stock trades 9.7% above its 5-year average P/E.
What this company does
A10 Networks, Inc.
A10 Networks sells security and network tools that help businesses keep their online systems running smoothly and protected from cyber threats. Their main income comes from selling these security products and services, which is important because it shows how much customers rely on their solutions for crucial operations. The company's offerings are used by various industries like telecommunications and financial services to manage their digital infrastructure effectively.
How the company got here
A10 Networks was founded in 2004 by Lee Chen, who had prior experience in the networking industry. Initially, the company focused on providing technology for efficient application traffic management. Over time, A10 Networks expanded its offerings to include solutions for load balancing, protection against distributed denial-of-service (DDoS) attacks, and secure application delivery. The company went public in 2014, and has since continued to evolve its product portfolio to address emerging needs in cybersecurity and AI infrastructure. A key acquisition in 2016 bolstered its cloud application delivery capabilities.
What it actually does
A10 Networks provides technology that helps businesses keep their applications running smoothly and securely. Think of it like the traffic control system for the internet, but for businesses' computer programs. Their solutions manage the flow of data to and from applications, ensuring they are fast and available, while also protecting them from cyber threats. They serve large organizations like telecommunications companies, financial institutions, and government agencies that rely on critical applications to function.
Security Products
This part of A10 Networks focuses on protecting businesses from online threats. They offer a platform called ThreatX, which helps defend web applications against attacks. They also provide tools to detect and block Distributed Denial of Service (DDoS) attacks, which are designed to overwhelm a service with traffic and make it unavailable. Additionally, they offer advanced firewalls that can inspect encrypted traffic to find hidden threats. These security solutions are crucial for businesses that handle sensitive data or provide online services.
Infrastructure Products
This segment of A10 Networks provides the foundational technology that keeps applications running efficiently. Their main product here is the Application Delivery Controller (ADC), which acts like a smart traffic director for application data. It ensures that requests from users are sent to the right servers and that the workload is balanced, preventing any single server from becoming overloaded. They also offer solutions for network security and managing internet protocol addresses, which are essential for large networks and for transitioning to newer internet standards.
Centralized Management and Analytics
This business line offers a platform called A10 Control, which acts as a central hub for managing and monitoring A10's security and infrastructure products. It provides businesses with a unified view of their network traffic and security events, allowing for better insights and automation of operations. This helps IT teams manage complex environments more easily and respond more quickly to potential issues.
What management is betting on now
A10 Networks is increasingly focusing on security as a primary growth driver, particularly in areas like DDoS protection and securing modern applications, including those used for artificial intelligence (AI). They are also emphasizing their software offerings and solutions for hybrid cloud environments, which allow businesses to use a mix of on-premises and cloud computing resources. The company aims to provide solutions that are not only high-performing but also secure and easy to manage, especially as AI workloads become more prevalent.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$23.33M
FY2025 Q1
$12.71M
FY2025 Q2
$17.94M
FY2025 Q3
$18.08M
FY2025 Q4
$16.04M
FY2026 Q1
$-689.00K
FY2026 Q2
$27.50M
FY2026 Q3
$30.68M
Revenue
$91.55M
Net income
$17.16M
Diluted EPS
0.23
Operating cash flow
$33.97M
Free cash flow
$30.68M
Fetching…
Sources
Revenue
$80.14M
Net income
$8.88M
Diluted EPS
0.12
Operating cash flow
$29.11M
Free cash flow
$27.50M
Fetching…
Sources
Revenue
$75.00M
Net income
$12.03M
Diluted EPS
0.17
Operating cash flow
$2.23M
Free cash flow
$-689.00K
Fetching…
Sources
Revenue
$80.36M
Net income
$9.87M
Diluted EPS
0.13
Operating cash flow
$22.71M
Free cash flow
$16.04M
Fetching…
Sources
Revenue
$74.68M
Net income
$12.19M
Diluted EPS
0.17
Operating cash flow
$22.80M
Free cash flow
$18.08M
Fetching…
Sources
Revenue
$69.38M
Net income
$10.54M
Diluted EPS
0.14
Operating cash flow
$22.18M
Free cash flow
$17.94M
Fetching…
Sources
Revenue
$66.14M
Net income
$9.54M
Diluted EPS
0.13
Operating cash flow
$17.20M
Free cash flow
$12.71M
Fetching…
Sources
Revenue
$74.20M
Net income
$18.30M
Diluted EPS
0.24
Operating cash flow
$25.71M
Free cash flow
$23.33M
Fetching…
Sources
Is it cheap or expensive?
Fair value $35.73 vs current price $24.76
Wall Street consensus is the average analyst price target: $36.00 (0.8% higher than our fair-value estimate).
Our most-likely fair value is $35.73 a share — about 44.3% above today's price of $24.76, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $137.0M - more cash than debt. Interest coverage 7.4x.
Net debt
$-137.01M
Interest coverage
7.43x
A10 Networks, Inc.'s profit covers its interest bill about 7.4 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
ATEN
BASELINE
A10 Networks, Inc.
Total debt $223.36M Interest coverage 7.43x This is the baseline the peer rows are being compared against.
Total debt $14.89M Interest coverage 0.54x -93% vs ATEN Carries about 13.8x less debt cushion than ATEN.
Total debt $9.45B Interest coverage 20.42x +175% vs ATEN Carries about 2.8x more debt cushion than ATEN.
Total debt $1.87B Interest coverage -33.39x -100% vs ATEN This peer has almost no interest-payment cushion compared with ATEN.
Total debt $560.50M Interest coverage 103.72x +1,297% vs ATEN Carries about 14.0x more debt cushion than ATEN.
What you should know
The case for and against ATEN
3 Rewards
2 Risks
Rewards
-
Revenue grew 12.6% last year.
-
Returns 21.8% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Insider ownership is only 1.6% (peer median: 14.8%).
-
Stock trades 9.7% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
38.69x
Forward P/E
20.88x
P/B
7.66x
P/S
5.45x
EV/EBITDA
22.73x
PEG ratio
14.76x
Profitability
How much profit each dollar creates
Gross margin
79.0%
Operating margin
20.0%
Net margin
14.7%
ROE
21.8%
ROA
5.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.96x
Current ratio
3.46x
Quick ratio
2.98x
Total debt
$223.36M
Total cash
$360.36M
Growth
How the business has been compounding
Revenue TTM
$327.04M
Revenue 5Y CAGR
3.8%
EPS TTM
0.64
EPS 5Y CAGR
-1.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$88.02M
Free CF TTM
$64.77M
FCF margin
19.8%
Dividend
Shareholder payout
Yield
1.0%
Payout ratio
41.4%
Last ex-div date
2026-08-17