A10 Networks(ATEN) - 2025 Q4 - Annual Results

Financial Performance - A10 Networks reported record annual revenue of $290.6 million for 2025, representing an 11.0% increase from $261.7 million in 2024[5] - The company achieved a GAAP net income of $42.1 million, or $0.57 per diluted share, for the full year 2025[5] - For Q4 2025, total revenue was $80.4 million, up from $74.2 million in Q4 2024[17] - GAAP net income for Q4 2025 was $9,865, a decrease of 46.0% compared to $18,301 in Q4 2024[18] - Non-GAAP net income for Q4 2025 was $19,097, down 16.5% from $22,955 in Q4 2024[18] - GAAP gross profit for 2025 was $230,515, an increase of 9.6% from $210,277 in 2024[24] - Non-GAAP gross profit for 2025 was $234,167, up 10.3% from $212,388 in 2024[24] - GAAP total operating expenses for 2025 were $183,373, an increase of 10.3% compared to $166,309 in 2024[26] - Adjusted EBITDA for the year ended December 31, 2025, reached $86,016,000, an increase of 15.4% from $74,532,000 in 2024[30] - EBITDA for the year ended December 31, 2025, was $62,204,000, up from $55,261,000 in 2024[30] Cash Flow and Investments - A10 Networks generated nearly $85 million in cash flow from operations in 2025, allowing for continued investment and shareholder returns[4] - The company returned $86.3 million to investors in 2025, including $68.9 million from share repurchases and $17.4 million in cash dividends[5] - Net cash provided by operating activities for 2025 was $84,894, a decrease of 6.3% from $90,492 in 2024[23] - Cash and cash equivalents decreased to $71,139 in 2025 from $95,129 in 2024, a decline of 25.2%[22] - A10 Networks had $377.8 million in cash, cash equivalents, and marketable securities as of December 31, 2025, compared to $195.5 million a year earlier[5] Assets and Liabilities - Total current assets increased to $475,954 in 2025 from $307,288 in 2024, representing a growth of 55.0%[21] - Total assets rose to $629,813 in 2025, up 45.5% from $432,815 in 2024[21] - Long-term debt increased to $218,787 in 2025, compared to no long-term debt in 2024[21] Margins and Operating Performance - A10 expects a GAAP gross margin of 79.3% and a non-GAAP gross margin of 80.6% for 2026[5] - GAAP operating margin for Q4 2025 was 18.7%, a decline from 24.8% in Q4 2024[28] - Non-GAAP operating margin for Q4 2025 was 26.6%, down from 32.7% in Q4 2024[28] - Total GAAP income from operations for the year ended December 31, 2025, was $47,142,000, an increase of 7.0% from $43,968,000 in 2024[28] Strategic Outlook - The company plans to host an Investor event to provide strategic context around growth drivers and market positioning[6] - A10's security-led revenue now constitutes two-thirds of total revenue, driving consistent growth[4] - The company anticipates record quarterly revenue of $80.4 million for Q1 2026[5] Other Expenses - Stock-based compensation and related payroll tax for Q4 2025 amounted to $4,863,000, slightly up from $4,811,000 in Q4 2024[30] - Non-GAAP operating income for Q4 2025 was $21,337,000, down 12.0% from $24,282,000 in Q4 2024[28] - Acquisition-related expenses for the year ended December 31, 2025, totaled $680,000, with no expenses reported in 2024[28]