A10 Networks Reports 15.5% Revenue Growth to $69.4 Million in Q2 2025

A10 Networks, Inc. reported a total net revenue of $69.4 million for the second quarter of 2025, marking a 15.5% increase from $60.1 million in the same period of 2024. The growth was primarily driven by a significant rise in product revenue, which increased by 32.6% to $39.2 million, compared to $29.5 million in the prior year. Service revenue, however, saw a slight decline of 1.2%, totaling $30.2 million, down from $30.6 million. For the first half of 2025, total net revenue reached $135.5 million, a 12.2% increase from $120.8 million in the first half of 2024.

The company’s gross profit for the second quarter was $54.7 million, yielding a gross margin of 78.9%, slightly down from 80.0% in the previous year. Operating expenses rose to $44.4 million, up 10.6% from $40.1 million, primarily due to increased costs in sales and marketing, research and development, and general administrative expenses. A10 Networks reported an operating income of $10.3 million for the quarter, a 30.3% increase from $7.9 million in the same quarter last year. Net income for the second quarter was $10.5 million, or $0.14 per diluted share, compared to $9.5 million, or $0.13 per diluted share, in the prior year.

In terms of strategic developments, A10 Networks completed the acquisition of ThreatX Protect in February 2025 for approximately $19.6 million, enhancing its cybersecurity offerings. The company also issued $225 million in convertible senior notes in March 2025, which provided net proceeds of approximately $217.7 million. This capital is expected to support ongoing investments in product development and market expansion.

Operationally, A10 Networks reported a customer base that remains heavily reliant on a few large clients, with the top ten customers accounting for 46% of total revenue in the second quarter of 2025, up from 35% in the same quarter of 2024. The Americas region contributed 59% of total revenue, with significant growth in the U.S. market. The company’s cash and cash equivalents stood at $252.9 million as of June 30, 2025, alongside $114.5 million in marketable securities, indicating a strong liquidity position.

Looking ahead, A10 Networks anticipates continued demand for its cybersecurity solutions, particularly as it expands its product offerings and invests in sales and marketing initiatives. The company plans to maintain its focus on long-term growth, although it acknowledges potential challenges from macroeconomic conditions and market volatility. The board has also approved a quarterly cash dividend of $0.06 per share, reflecting a commitment to returning capital to shareholders while balancing growth investments.