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SALT LAKE CITY - FatPipe, Inc. (NASDAQ:FATN), a software networking company with a market capitalization of $107 million, has been added to the Russell 3000E and Russell Microcap Indexes, effective after the US market closed on Friday, June 27, as part of the 2025 Russell Indexes annual reconstitution.
The inclusion in these indexes represents a milestone for the software-defined wide area networking (SD-WAN) company, which will now be automatically included in the corresponding growth and value style indexes. According to InvestingPro data, FatPipe maintains impressive gross profit margins of 92.5% and demonstrates strong financial health with a current ratio of 2.27.
"We are honored to be included in the Russell Microcap Index and the Russell 3000E Index," said Dr. Ragula Bhaskar, CEO of FatPipe Inc., in a press release statement. The company’s inclusion comes as it prepares to report its next earnings on July 18, with analysts tracking its performance through InvestingPro’s comprehensive financial metrics and insights.
The Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. According to FTSE Russell, approximately $10.6 trillion in assets are benchmarked against Russell’s US indexes as of June 2024.
FTSE Russell determines membership for its Russell indexes primarily by objective market-capitalization rankings and style attributes. The annual reconstitution captures the 4,000 largest US stocks as of April 30, ranking them by total market capitalization.
Membership in these indexes remains in place for one year, providing visibility to companies included in the listings.
FatPipe pioneered SD-WAN and hybrid WANs technology that allows companies and service providers to control multi-link network traffic. The company currently holds 12 U.S. patents related to multipath and software-defined networking. With an EBITDA of $6.4 million in the last twelve months, FatPipe continues to demonstrate its market presence, though current market analysis suggests the stock may be trading above its Fair Value.
FTSE Russell is wholly owned by London Stock Exchange Group and calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries.
In other recent news, FatPipe, Inc. announced the pricing of its initial public offering (IPO) at $5.75 per share, aiming to raise approximately $4 million before expenses. The company’s shares began trading on the Nasdaq Capital Market, with D. Boral Capital LLC serving as the sole book-running manager for the offering. FatPipe has also provided underwriters a 45-day option to purchase additional shares at the IPO price. In a strategic move to enhance its leadership, FatPipe appointed Eric Sherb as the new Chief Financial Officer, bringing over fifteen years of financial expertise to the company. This appointment follows the company’s recent listing on the Nasdaq Capital Market. Additionally, FatPipe has strengthened its executive team with new hires from the telecom and cybersecurity sectors to support its global expansion. These developments come as the company seeks to capitalize on the growing market for secure and optimized enterprise connectivity. FatPipe’s expansion efforts also include hiring 12 new Regional Sales Managers across the U.S. to boost growth in SD-WAN, SASE, and cybersecurity.
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