A10 Networks (ATEN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 13.4% year-over-year to $75.0 million, marking the third quarter of double-digit growth in the last four quarters, driven by strong enterprise demand, AI infrastructure, and security-led solutions.

• Profitability remained robust, with non-GAAP gross margin at 80.6%, adjusted EBITDA margin at 30%, and non-GAAP net income of $17.7 million ($0.24 per diluted share); GAAP net income was $12.0 million ($0.17 per diluted share).

• Enterprise customers represented 56% of Q1 revenue, with Americas leading growth and service providers accounting for 44%.

• Strategic focus on AI-driven demand, security solutions, and NextGen Networking, with significant customer wins and the acquisition of ThreatX Protect expanding the cybersecurity portfolio.

• Cash and marketable securities totaled $369.8 million at quarter-end, supporting ongoing investments and capital returns.

Financial highlights

• Q1 2026 revenue reached $75.0 million, up 13.4% year-over-year, with product revenue at $44.0 million (59% of total) and service revenue making up the remainder.

• Non-GAAP gross margin was 80.6%; GAAP gross margin was 79.6%.

• Adjusted EBITDA was $22.5 million (30% of revenue); non-GAAP operating margin was 25.2%.

• Net income was $17.7 million non-GAAP ($0.24 per diluted share) and $12.0 million GAAP ($0.17 per diluted share).

• Cash flow from operations was $2.2 million, down from $17.2 million in Q1 2025, mainly due to working capital changes.

Outlook and guidance

• Management reaffirmed 2026 guidance: revenue growth of 10–12%, Adjusted EBITDA margin of 28–30%, and EPS growth of 12–14%.

• Full-year free cash flow expectations remain unchanged and are expected to expand year-over-year.

• Continued focus on durable secular catalysts, innovation, and capitalizing on AI infrastructure trends.