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A10 Networks (NYSE:ATEN) presented its third-quarter 2025 financial results on November 4, showing solid growth driven by its service provider segment and strong performance in the Americas region. The company’s focus on AI security and infrastructure solutions appears to be paying dividends as it reported an 11.9% year-over-year revenue increase.
Quarterly Performance Highlights
A10 Networks reported Q3 2025 revenue of $74.7 million, representing an 11.9% increase compared to the same period last year. The company achieved non-GAAP earnings per share of $0.23, slightly exceeding analyst expectations of $0.22. Non-GAAP gross margins remained robust at 80.7%, while adjusted EBITDA reached $21.9 million.
"Our solutions emphasize high throughput, low latency, and integrated security," stated Dhrupad Trivedi, CEO, highlighting the company’s competitive advantage in the AI infrastructure market during the earnings call.
The company’s presentation highlighted several key achievements, including security-led revenue exceeding 65% of its long-term target, consistent profitability, and strategic alignment with AI security trends.
As shown in the following chart of quarterly revenue and adjusted EBITDA growth:
The company has maintained steady revenue growth over five consecutive quarters, with Q3 2025 showing the highest revenue figure of $74.7 million during this period. Adjusted EBITDA has similarly shown improvement, increasing from $17.8 million in Q3 2024 to $21.9 million in Q3 2025.
Segment and Geographic Performance
A10 Networks’ growth was primarily driven by its service provider segment, which generated $47.8 million in Q3 2025 compared to $36.7 million in Q3 2024, representing a 30.2% year-over-year increase. The enterprise segment showed a slight decline, generating $26.9 million in Q3 2025 versus $30.0 million in Q3 2024.
The following chart illustrates the revenue breakdown by customer vertical:
Year-to-date, the service provider segment has grown from $107.7 million in Q3 2024 YTD to $128.4 million in Q3 2025 YTD, while the enterprise segment has shown modest growth from $79.6 million to $81.8 million in the same period.
Geographically, the Americas region has significantly increased its contribution to A10’s revenue, accounting for 65% of total revenue in Q3 2025, up from 51% in Q3 2024. Meanwhile, the Asia-Pacific and Japan (APJ) region’s contribution decreased to 22% from 35%, and EMEA declined to 12% from 14%.
This geographic shift indicates A10’s growing strength in North America, potentially driven by increased investment in AI infrastructure and cybersecurity solutions in this region.
Strategic Initiatives
A10 Networks’ presentation outlined its business approach through four main components: A10 Platform, A10 Infrastructure, A10 Defend, and A10 Control. This integrated approach aims to deliver high-performance solutions for hybrid infrastructure and AI buildout while providing comprehensive security and management capabilities.
The company’s value creation strategy combines revenue growth, business model optimization, and strategic capital allocation. With security-led revenue exceeding 65% of its long-term target, A10 is successfully executing on its security-focused strategy.
Following the earnings announcement, A10 Networks’ stock rose 1.56% in aftermarket trading, reaching $18.25, reflecting investor confidence in the company’s strategic direction.
Balance Sheet and Financial Position
A10 Networks maintains a strong balance sheet with $370.9 million in cash and marketable securities as of September 30, 2025, a significant increase from $195.6 million at the end of 2024. This financial strength provides the company with substantial flexibility for future investments and potential acquisitions.
The following slide details the company’s balance sheet position:
The company’s long-term debt stands at $218.5 million, primarily consisting of $225 million in Convertible Senior Notes issued in March 2025 with a 2.75% coupon rate and April 2030 maturity. According to the presentation, these funds are earmarked for general corporate purposes, organic growth initiatives, and potential M&A activities.
Total assets reached $620.1 million as of September 30, 2025, compared to $432.8 million at the end of 2024, while total liabilities increased to $413.9 million from $200.9 million during the same period.
Forward-Looking Statements
A10 Networks anticipates a full-year growth rate of approximately 10% for 2025 and aims for high single-digit growth in 2026. The company targets adjusted EBITDA margins between 26% and 28%, with a focus on maintaining EPS growth that outpaces revenue growth.
CFO Michelle Karan stated during the earnings call, "My near-term focus involves building on our solid base and driving greater consistency," reflecting the company’s strategic emphasis on sustainable growth.
The company’s historical financial performance trends suggest it is well-positioned to achieve these targets:
As A10 Networks continues to capitalize on growing demand for AI infrastructure and cybersecurity solutions, particularly in the service provider segment and Americas region, investors will be watching closely to see if the company can maintain its growth trajectory and successfully execute on its strategic initiatives in the coming quarters.
Full presentation:
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