Revenue growth accelerated to 15.5% YoY in 2026Q2, reaching $80.1M, but operating margin contracted to 11.3% from 18.0% sequentially due to a 18.1% YoY surge in SG&A expenses.
A10 Networks, Inc. (ATEN) annual income statement — 14-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 310.17M | 290.56M | 261.7M | 251.7M | 280.34M | 250.04M | 225.53M | 212.63M | 232.22M | 235.43M | 230M | 198.96M | 179.51M | 141.74M | 120.07M |
| Revenue Growth % | 12.2% | 11.03% | 3.97% | -10.22% | 12.12% | 10.87% | 6.07% | -8.44% | -1.36% | 2.36% | 15.61% | 10.83% | 26.65% | 18.05% | - |
| Cost of Goods Sold | 63.46M | 60.04M | 51.42M | 47.96M | 56.83M | 53.51M | 50.15M | 48.88M | 51.9M | 53.32M | 54.91M | 48.77M | 42.94M | 33.4M | 24.51M |
| COGS % of Revenue | - | 20.66% | 19.65% | 19.06% | 20.27% | 21.4% | 22.24% | 22.99% | 22.35% | 22.65% | 23.87% | 24.51% | 23.92% | 23.56% | 20.41% |
| Gross Profit | 246.71M | 230.51M | 210.28M | 203.74M | 223.51M | 196.54M | 175.38M | 163.75M | 180.33M | 182.11M | 175.09M | 150.19M | 136.57M | 108.34M | 95.56M |
| Gross Margin % | 79.54% | 79.34% | 80.35% | 80.94% | 79.73% | 78.6% | 77.76% | 77.01% | 77.65% | 77.35% | 76.13% | 75.49% | 76.08% | 76.44% | 79.59% |
| Gross Profit Growth % | - | 9.62% | 3.21% | -8.84% | 13.72% | 12.06% | 7.1% | -9.19% | -0.98% | 4.01% | 16.58% | 9.97% | 26.05% | 13.38% | - |
| Operating Expenses | 196.14M | 183.37M | 166.31M | 165.09M | 170.43M | 163.15M | 157.65M | 180.84M | 208.01M | 192.48M | 192.12M | 186.43M | 169.68M | 119.66M | 87.06M |
| OpEx % of Revenue | - | 63.11% | 63.55% | 65.59% | 60.79% | 65.25% | 69.9% | 85.05% | 89.57% | 81.76% | 83.53% | 93.7% | 94.52% | 84.42% | 72.51% |
| Selling, General & Admin | 119.02M | 114.27M | 108.58M | 109.86M | 112.03M | 109.07M | 99.58M | 116.49M | 142.85M | 129.49M | 131.42M | 131.59M | 119.78M | 86.31M | 61.55M |
| SG&A % of Revenue | - | 39.33% | 41.49% | 43.65% | 39.96% | 43.62% | 44.16% | 54.78% | 61.51% | 55% | 57.14% | 66.14% | 66.72% | 60.9% | 51.26% |
| Research & Development | 77.12M | 69.1M | 57.73M | 55.23M | 58.4M | 54.08M | 58.06M | 61.82M | 65.16M | 62.99M | 60.7M | 54.84M | 49.9M | 33.35M | 25.51M |
| R&D % of Revenue | - | 23.78% | 22.06% | 21.94% | 20.83% | 21.63% | 25.75% | 29.08% | 28.06% | 26.76% | 26.39% | 27.57% | 27.8% | 23.53% | 21.25% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.53M | 0 | 0 | -640K | -332K | 0 | 0 | 0 |
| Operating Income | 50.57M | 47.14M | 43.97M | 38.65M | 53.08M | 33.39M | 17.73M | -17.09M | -27.68M | -10.37M | -19.12M | -38.45M | -30.27M | -22.84M | -87.02M |
| Operating Margin % | 16.3% | 16.22% | 16.8% | 15.35% | 18.93% | 13.35% | 7.86% | -8.04% | -11.92% | -4.41% | -8.31% | -19.32% | -16.86% | -16.12% | -72.48% |
| Operating Income Growth % | - | 7.22% | 13.77% | -27.19% | 58.98% | 88.28% | 203.74% | 38.24% | -166.86% | 45.75% | 50.27% | -27.01% | -32.52% | 73.75% | - |
| EBITDA | 62.78M | 62M | 55.26M | 47.99M | 60.46M | 42.3M | 23.33M | -7.07M | -19.88M | -1.86M | -10.85M | -29.73M | -20.15M | -15.76M | -81.73M |
| EBITDA Margin % | 20.24% | 21.34% | 21.12% | 19.07% | 21.57% | 16.92% | 10.35% | -3.32% | -8.56% | -0.79% | -4.72% | -14.94% | -11.23% | -11.12% | -68.07% |
| EBITDA Growth % | 3.27% | 12.2% | 15.14% | -20.62% | 42.95% | 81.27% | 430.22% | 64.45% | -968.19% | 82.85% | 63.5% | -47.54% | -27.83% | 80.71% | - |
| D&A (Non-Cash Add-back) | 12.2M | 14.86M | 11.29M | 9.35M | 7.38M | 8.91M | 5.6M | 10.03M | 7.8M | 8.51M | 8.27M | 8.72M | 10.12M | 7.08M | 5.29M |
| EBIT | 55.68M | 52.42M | 65.48M | 43.8M | 54.38M | 33.8M | 19.14M | -16.18M | -26.41M | -9.38M | -21.21M | -40.64M | -32.19M | -24.96M | -89.26M |
| Net Interest Income | 11.65M | 11.63M | -637K | 5.15M | -363K | -1.75M | 1.41M | 682K | 1.14M | 827K | -424K | -509K | -1.03M | -1.5M | -135K |
| Interest Income | 11.65M | 11.63M | 6.75M | 5.15M | 1.3M | 409K | 1.41M | 919K | 1.27M | 989K | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 7.38M | 0 | 1.67M | 2.15M | 0 | 237K | 129K | 162K | 424K | 509K | 1.03M | 1.5M | 135K |
| Other Income/Expense | 3.59M | 5.28M | 14.13M | 5.15M | -363K | -1.75M | 1.41M | 682K | 1.14M | 827K | -1.06M | 1.02M | -2.94M | -3.61M | -97.89M |
| Pretax Income | 54.16M | 52.42M | 58.1M | 43.8M | 52.72M | 31.64M | 19.14M | -16.41M | -26.54M | -9.54M | -20.18M | -39.29M | -33.21M | -26.46M | -89.39M |
| Pretax Margin % | 17.46% | 18.04% | 22.2% | 17.4% | 18.8% | 12.65% | 8.49% | -7.72% | -11.43% | -4.05% | -8.78% | -19.75% | -18.5% | -18.67% | -74.45% |
| Income Tax | 11.19M | 10.29M | 7.96M | 3.83M | 5.81M | -63.24M | 1.32M | 1.41M | 1.08M | 1.21M | 757K | 747K | 1.51M | 640K | 758K |
| Effective Tax Rate % | 20.66% | 19.62% | 13.7% | 8.73% | 11.02% | -199.88% | 6.91% | -8.57% | -4.08% | -12.63% | -3.75% | -1.9% | -4.54% | -2.42% | -0.85% |
| Net Income | 42.97M | 42.14M | 50.14M | 39.97M | 46.91M | 94.89M | 17.82M | -17.82M | -27.62M | -10.75M | -20.94M | -40.03M | -34.72M | -27.1M | -90.15M |
| Net Margin % | 13.85% | 14.5% | 19.16% | 15.88% | 16.73% | 37.95% | 7.9% | -8.38% | -11.89% | -4.57% | -9.1% | -20.12% | -19.34% | -19.12% | -75.08% |
| Net Income Growth % | -15.78% | -15.96% | 25.44% | -14.79% | -50.56% | 432.59% | 199.98% | 35.48% | -156.88% | 48.66% | 47.69% | -15.31% | -28.14% | 69.94% | - |
| Net Income (Continuing) | 42.97M | 42.14M | 50.14M | 39.97M | 46.91M | 94.89M | 17.82M | -17.82M | -27.62M | -10.75M | -22.39M | -40.03M | -34.72M | -27.1M | -90.15M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.57 | 0.57 | 0.67 | 0.53 | 0.60 | 1.19 | 0.22 | -0.23 | -0.38 | -0.15 | -0.32 | -0.64 | -0.71 | -0.46 | -2.06 |
| EPS Growth % | -11.76% | -14.93% | 26.42% | -11.67% | -49.58% | 440.91% | 195.65% | 39.47% | -153.33% | 53.13% | 50% | 9.86% | -54.35% | 77.67% | - |
| EPS (Basic) | - | 0.58 | 0.68 | 0.54 | 0.62 | 1.23 | 0.23 | -0.23 | -0.38 | -0.15 | -0.32 | -0.64 | -0.71 | -0.46 | -2.06 |
| Diluted Shares Outstanding | 75.65M | 73.59M | 75.3M | 75.55M | 77.75M | 80.04M | 80.02M | 76.08M | 72.88M | 70.05M | 65.7M | 62.43M | 48.68M | 59.03M | 43.72M |
| Basic Shares Outstanding | 72.16M | 72.25M | 74.09M | 74.21M | 75.53M | 77.05M | 77.78M | 76.08M | 72.68M | 70.05M | 65.7M | 62.43M | 48.68M | 59.03M | 43.72M |
| Dividend Payout Ratio | - | 41.22% | 35.49% | 44.58% | 33.94% | 4.09% | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying ATEN stock.
For fiscal year 2025, A10 Networks, Inc. (ATEN) reported total revenue of $290.6M. This represents a 142.0% increase compared to $120.1M in 2012.
A10 Networks, Inc. (ATEN) is profitable, generating $42.1M in net income for the fiscal year ending 2025 with a net profit margin of 14.5%.
A10 Networks, Inc. (ATEN) reported an operating income of $47.1M, resulting in an operating profit margin of 16.2%. This margin reflects the operational efficiency of the business before interest and taxes.
A10 Networks, Inc. (ATEN) generated $230.5M in gross profit for the year, representing a gross profit margin of 79.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
JPY weakness and leverage
Metrics are mathematically derived from official filings.
Accelerating Growth on AI Demand
Revenue growth accelerated to 15.5% YoY in 2026Q2, reaching $80.1M, driven by AI-related infrastructure demand, according to recent SEC filings. This marks the strongest growth in the past ten quarters.
The 15.5% YoY growth in 2026Q2 represents a clear acceleration from the 8.3% growth in 2025Q4 and the 5.4% in 2024Q4, suggesting a cyclical upturn. The sequential increase from $75.0M in 2026Q1 to $80.1M in 2026Q2 indicates momentum, likely tied to AI-driven networking upgrades. However, sustainability is uncertain as growth has been lumpy historically, with a contraction in 2024Q2.
Gross Margin Resilience Amid Mix Shift
Gross margin remained stable at 79.1% in 2026Q2, despite a higher mix of hardware, as reported in financial statements. This resilience suggests pricing power and efficient cost management, though it lags F5's 81.4%.
Gross margin has hovered between 78.7% and 81.1% over the past ten quarters, indicating a stable cost structure. The slight dip to 79.1% in 2026Q2 from 80.3% in 2026Q1 may reflect product mix or component costs, but the range is narrow. Compared to peers, A10's gross margin is competitive, though F5's higher margin suggests potential for improvement if software mix increases.
Operating Leverage Stalls in Q2
Operating margin contracted to 11.3% in 2026Q2 from 18.0% in 2026Q1, despite revenue growth, as SG&A and R&D expenses rose sharply, based on reported figures. This suggests limited operating leverage in the near term.
Operating income fell to $9.0M in 2026Q2 from $13.5M in 2026Q1, even as revenue grew, due to a $5.5M increase in SG&A and a $2.2M increase in R&D. This indicates that the company is investing heavily in sales and product development to capture AI opportunities, which may pressure margins in the short term. Historically, operating margins have ranged from 11.3% to 24.8%, with the 2024Q4 peak likely benefiting from lower expenses.
EPS Growth Diverges from Net Income
Diluted EPS fell 14.3% YoY in 2026Q2 to $0.12, despite net income rising, due to a significant increase in stock-based compensation, as per the income statement. This divergence warrants investor attention.
Net income increased to $8.9M in 2026Q2 from $10.5M in 2025Q2, but EPS declined from $0.14 to $0.12, reflecting a higher share count or SBC impact. SBC jumped to $9.0M in 2026Q2, nearly double the typical $4.8M, which may indicate heavy equity-based compensation. This reduces reported EPS quality, as SBC is a real cost that dilutes shareholders.
SG&A Surge Pressures Profitability
SG&A expenses rose to $33.2M in 2026Q2, up 18.1% YoY, outpacing revenue growth, according to the income statement. This increase appears tied to expanded sales efforts for AI-related products.
SG&A as a percentage of revenue increased to 41.4% in 2026Q2 from 40.5% in 2025Q2, indicating a deliberate investment in go-to-market capabilities. R&D also grew 30.1% YoY, reflecting product development for security and AI. While these investments may drive future growth, they currently compress operating margins, which fell to 11.3% from 14.9% a year ago.
AI Hype vs. Margin Reality
Despite the AI-driven growth narrative, operating margins have declined to 11.3% in 2026Q2, and the elevated Debt/Equity ratio of 1.05 raises concerns, as per recent filings. Short-sellers may question the sustainability of this growth.
The 15.5% revenue growth in 2026Q2 is impressive, but it came at the cost of margin compression, with operating margin down 360 bps YoY. The company's leverage, with a Debt/Equity ratio of 1.05, could amplify downside if AI capex cycles slow. Additionally, persistent JPY weakness poses a headwind given Japan's revenue concentration, potentially eroding reported growth. Investors should monitor whether the growth can translate into profitability.