A10 Networks(ATEN) - 2025 Q3 - Quarterly Results

Revenue and Income - Revenue for Q3 2025 was $74.7 million, an increase of 11.9% year-over-year from $66.7 million in Q3 2024[7] - GAAP net income was $12.2 million, or $0.17 per diluted share, compared to $12.6 million, or $0.17 per diluted share, in Q3 2024[7] - Non-GAAP net income rose to $16.7 million, or $0.23 per diluted share, from $15.9 million, or $0.21 per diluted share, in Q3 2024[7] - Total net revenue for the nine months ended September 30, 2025, was $210.2 million, up from $187.5 million in the same period of 2024[18] - GAAP net income for Q3 2025 was $12,191, a slight decrease from $12,637 in Q3 2024, while non-GAAP net income increased to $16,701 from $15,926[19] Margins and Profitability - GAAP gross margin was 80.1%, while non-GAAP gross margin was 80.7%[7] - GAAP operating margin improved to 17.4% from 15.7% in Q3 2024; non-GAAP operating margin increased to 24.7% from 22.6%[7] - The company reported a gross profit of $59.9 million for Q3 2025, compared to $53.7 million in Q3 2024[18] - GAAP gross profit for Q3 2025 was $59,852, up from $53,682 in Q3 2024, resulting in a GAAP gross margin of 80.1% compared to 80.5%[24] - Non-GAAP gross profit for Q3 2025 was $60,269, compared to $54,216 in Q3 2024, with a non-GAAP gross margin of 80.7%[24] - Adjusted EBITDA for Q3 2025 was $21,877 million, an increase from $17,800 million in Q3 2024, indicating a 22.8% rise[30] - Adjusted EBITDA margin for the nine months ended September 30, 2025, was 29.1%, up from 25.2% in the same period of 2024[30] Cash Flow and Dividends - The company returned $15.3 million to investors, including $11.0 million in share repurchases and $4.3 million in cash dividends[7] - A quarterly cash dividend of $0.06 per share was approved, payable on December 1, 2025[7] - Cash flows from operating activities for the nine months ended September 30, 2025, totaled $62,187, slightly down from $64,782 in 2024[23] - Cash and cash equivalents at the end of Q3 2025 were $86,555, down from $95,129 at the beginning of the period[23] Assets and Liabilities - Total current assets rose significantly to $468,679 in Q3 2025 from $307,288 in Q4 2024, driven by an increase in marketable securities[21] - The company’s long-term debt increased to $218,450 in Q3 2025, compared to no long-term debt reported in Q4 2024[21] - The accumulated deficit decreased to $(8,072) in Q3 2025 from $(40,344) in Q4 2024, indicating improved financial health[21] Operating Performance - GAAP income from operations for Q3 2025 was $12,994 million, up from $10,443 million in Q3 2024, representing a 24.4% increase[28] - Non-GAAP operating income for Q3 2025 reached $18,458 million, compared to $15,059 million in Q3 2024, reflecting a 22.4% growth[28] - For the nine months ended September 30, 2025, GAAP income from operations was $32,083 million, a 25.4% increase from $25,572 million in the same period of 2024[28] Expenses - Non-GAAP total operating expenses for the nine months ended September 30, 2025, were $118,295, an increase from $113,582 in the same period of 2024[26] - Stock-based compensation and related payroll tax for Q3 2025 amounted to $4,961 million, compared to $4,516 million in Q3 2024[28] - Acquisition-related expenses for the nine months ended September 30, 2025, totaled $655 million, with no expenses reported in the same period of 2024[28] Customer Base - A10 Networks serves over 7,000 global customers, focusing on secure application services and solutions[14]