FatPipe maintains robust pricing power with gross margins peaking at 94.2% in 2025Q1, though revenue growth remains erratic, fluctuating from a 41.5% contraction in 2024Q4 to a 129.5% increase in 2025Q4.
| Sales/Revenue | 19.21M | 16.29M | 17.86M | 15.8M | 12.4M |
| Revenue Growth % | 17.92% | -8.8% | 13.07% | 27.41% | - |
| Cost of Goods Sold | 4.53M | 1.06M | 1.07M | 1.1M | 691.61K |
| COGS % of Revenue | 23.59% | 6.52% | 5.99% | 6.98% | 5.58% |
| Gross Profit | 14.68M | 15.23M | 16.79M | 14.69M | 11.71M |
| Gross Margin % | 76.41% | 93.48% | 94.01% | 93.02% | 94.42% |
| Gross Profit Growth % | -3.62% | -9.31% | 14.28% | 25.52% | - |
| Operating Expenses | 11.09M | 11.76M | 11.15M | 11.45M | 11.93M |
| OpEx % of Revenue | 57.72% | 72.17% | 62.44% | 72.51% | 96.23% |
| Selling, General & Admin | 9.55M | 9.97M | 9.42M | 9.66M | 10.3M |
| SG&A % of Revenue | 49.73% | 61.2% | 52.72% | 61.14% | 83.04% |
| Research & Development | 1.91M | 1.79M | 1.74M | 1.8M | 1.63M |
| R&D % of Revenue | 9.92% | 10.97% | 9.73% | 11.38% | 13.19% |
| Other Operating Expenses | -369.25K | 0 | 0 | 0 | -1 |
| Operating Income | 3.59M | 3.47M | 5.64M | 3.24M | -224.13K |
| Operating Margin % | 18.69% | 21.31% | 31.57% | 20.51% | -1.81% |
| Operating Income Growth % | 3.39% | -38.43% | 74.07% | 1545.18% | - |
| EBITDA | 3.96M | 4.02M | 6.34M | 3.82M | 289.62K |
| EBITDA Margin % | 20.61% | 24.66% | 35.48% | 24.19% | 2.34% |
| EBITDA Growth % | -1.46% | -36.61% | 65.84% | 1219.48% | - |
| D&A (Non-Cash Add-back) | 369.25K | 545.71K | 699.26K | 582.33K | 513.75K |
| EBIT | 3.59M | 3.62M | 5.9M | 3.25M | 518.15K |
| Net Interest Income | -349.89K | -287.2K | -274.86K | -107K | 53.03K |
| Interest Income | 125.18K | 42.69K | 27.26K | 134 | 84.3K |
| Interest Expense | 475.07K | 329.89K | 302.12K | 107.13K | 31.27K |
| Other Income/Expense | -103.01K | -183.99K | -40.02K | -97.86K | 711.01K |
| Pretax Income | 3.49M | 3.29M | 5.6M | 3.14M | 486.88K |
| Pretax Margin % | 18.15% | 20.18% | 31.34% | 19.89% | 3.93% |
| Income Tax | -1.48M | 1.33M | 1.32M | 255.46K | 32.69K |
| Effective Tax Rate % | -42.55% | 40.6% | 23.55% | 8.13% | 6.71% |
| Net Income | 4.97M | 1.97M | 4.37M | 2.91M | 483.73K |
| Net Margin % | 25.87% | 12.07% | 24.45% | 18.43% | 3.9% |
| Net Income Growth % | 152.74% | -54.97% | 49.96% | 501.95% | - |
| Net Income (Continuing) | 4.97M | 1.95M | 4.28M | 2.89M | 454.19K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 112.65K | 190.29K | 215.41K |
| EPS (Diluted) | 0.35 | 0.15 | 0.32 | 0.21 | 0.04 |
| EPS Growth % | 133.33% | -53.13% | 52.38% | 498.29% | - |
| EPS (Basic) | 0.36 | 0.15 | 0.32 | 0.21 | 0.04 |
| Diluted Shares Outstanding | 14.01M | 12.86M | 15.09M | 13.77M | 13.77M |
| Basic Shares Outstanding | 13.88M | 12.86M | 13.72M | 13.77M | 13.77M |
| Dividend Payout Ratio | - | - | - | - | - |
Small scale revenue volatility
According to the provided quarterly income statements, FatPipe's revenue growth has fluctuated wildly, reaching a notable 129.5% increase in 2025Q4 compared to a 41.5% contraction in 2024Q4, suggesting that the company's top-line performance remains highly sensitive to the timing of individual enterprise or government contract closures.
The extreme variance in quarterly revenue suggests that the company lacks a predictable, high-volume recurring revenue base, which is typical for firms still transitioning from legacy hardware sales to subscription models. Investors should monitor whether this volatility reflects genuine demand shifts or merely the lumpy nature of project-based deployments in their niche infrastructure market.
As reported in the financial data, FatPipe maintains robust gross margins consistently above 80%, peaking at 94.2% in 2025Q1, which indicates strong pricing power for its proprietary WAN clustering technology despite the company's relatively small revenue scale compared to larger infrastructure networking peers.
These elevated gross margins suggest that the underlying software and intellectual property components of their offerings carry minimal direct costs. However, the wide swings in operating margins, ranging from negative territory to over 40%, imply that the company struggles to maintain consistent expense discipline as it scales its operations.
Based on the reported figures, the company's net income frequently exceeds its operating income, such as in 2025Q4 where net income of $4.0M surpassed operating income of $2.2M, suggesting that non-operating items or tax-related adjustments are playing a material role in the firm's bottom-line profitability.
This discrepancy warrants further investigation, as it may indicate that reported earnings are being bolstered by non-recurring gains rather than core operational efficiency. Analysts should be cautious of relying on net income as a proxy for sustainable cash generation until the company demonstrates a more stable relationship between its operating and net margins.
Analysis of the income statement reveals that SG&A expenses remain the primary drag on profitability, often consuming a significant portion of gross profit and leading to erratic operating margins that fluctuate significantly from quarter to quarter based on the company's reported financial filings.
The high fixed-cost nature of the business, particularly in R&D and sales support, appears to create a high operating leverage profile that works against the company during periods of revenue stagnation. Management's ability to control these overhead costs will be critical to proving that the firm can achieve sustainable, long-term profitability without relying on one-time revenue spikes.
Quick answers to the most common questions about buying FATN stock.
For fiscal year 2025, FatPipe, Inc. Common Stock (FATN) reported total revenue of $19.2M. This represents a 54.9% increase compared to $12.4M in 2021.
FatPipe, Inc. Common Stock (FATN) is profitable, generating $5.0M in net income for the fiscal year ending 2025 with a net profit margin of 25.9%.
FatPipe, Inc. Common Stock (FATN) reported an operating income of $3.6M, resulting in an operating profit margin of 18.7%. This margin reflects the operational efficiency of the business before interest and taxes.
FatPipe, Inc. Common Stock (FATN) generated $14.7M in gross profit for the year, representing a gross profit margin of 76.4%. This demonstrates the company's core pricing power and production efficiency.