A10 Networks, Inc.

What they do

A10 sells integrated application delivery, traffic management, DDoS protection, and application/API security built on a unified software architecture deployable in physical, virtual, containerized, and cloud-native form factors. Revenue comes primarily from secure networking and cybersecurity solutions plus related maintenance and support, sold through direct sales and channel partners. Customers span telecommunications, technology, financial services, public sector, industrial, retail, gaming, and education. In February 2025 the company acquired the assets and key personnel of ThreatX Protect, adding cloud-delivered web application and API protection.

Revenue drivers

• Secure networking and cybersecurity solutions — Product sales are the primary revenue source, covering application delivery, traffic management, DDoS protection, and application/API security. Purchased alongside maintenance and renewed over time.
• Maintenance and support services — Customers typically buy maintenance and support with initial deployments and renew over time, providing a recurring revenue base tied to the installed footprint.
• Subscription, term-based, and software-focused offerings — The company is expanding these consumption models to grow recurring revenue and offer flexible purchasing; no separate revenue figure was disclosed in the excerpts.
• Service provider and enterprise vertical demand — Service providers use the products for large-scale network infrastructure and managed services; enterprises use them to secure and optimize business-critical applications. The Q2 2026 release attributes growth to Americas execution and next-generation networking/AI-related infrastructure demand.

Recent performance

Q2 2026 revenue was $80.1 million, up 15.5% year-over-year, and first-half 2026 revenue was $155.1 million versus $135.5 million in the first half of 2025, up about 14.5%. GAAP gross margin was 79.1% and non-GAAP gross margin 80.3%. GAAP net income was $8.9 million, or $0.12 per diluted share, with non-GAAP net income of $18.7 million, or $0.25 per diluted share, and non-GAAP Adjusted EBITDA of $24.4 million (30.5% of revenue). The company repurchased 86,115 shares for $2.4 million at an average price of $27.63 and paid $4.3 million in dividends during the quarter, and held $357.3 million in cash, cash equivalents, and marketable securities as of June 30, 2026.

Strategy

A10 is positioning itself as a security-focused next-generation networking vendor supporting AI-related infrastructure and critical applications. It is expanding subscription, term-based, and software-focused offerings to build recurring revenue, and it added cloud-delivered web application and API protection through the ThreatX Protect asset acquisition in February 2025. The company acquired TrojAI in June 2026 and announced a multi-year agreement with Microsoft tied to scaled AI deployment. Management also cites strengthening sales efforts in North America and continued capital return through buybacks and dividends.

Risks

• Failure to anticipate market needs — The application delivery market is described as rapidly evolving and difficult to predict, and the company may not successfully anticipate needs or achieve market acceptance of new products.
• Customer and channel concentration — The filings flag the risk of loss or delay of expected purchases by largest end-customers and loss of, or reduced orders from, significant customers or distribution channels that drive a substantial portion of revenue.
• Competition in AI-driven networking — The 10-Q cites competitive and execution risks related to cloud-based computing trends and the ability to compete effectively in the market for AI-driven network solutions.
• International, tariff, and trade exposure — The company operates globally and cites risks from its presence in international markets, including changes in tariffs, import/export restrictions, and trade policies affecting demand and cost inputs.

Outlook

Management raised full-year 2026 guidance to revenue growth of 12-14% over the prior year, up from 10-12%, and EPS growth of 14-16%, up from 12-14%, citing first-half performance and demand visibility. The company declared a quarterly cash dividend of $0.06 per share payable September 1, 2026 to holders of record as of August 17, 2026. Management cites deepening engagement with AI infrastructure leaders, including the multi-year Microsoft agreement.