A10 Networks, Inc. reported a total net revenue of $75 million for the three months ended March 31, 2026, marking a 13.4% increase from $66.1 million in the same period of the previous year. The growth was primarily driven by a 22.3% rise in product revenue, which reached $44 million, up from $36 million. Service revenue also saw a modest increase of 2.8%, totaling $31 million compared to $30.2 million in the prior year. The company's net income for the quarter was $12 million, or $0.17 per share, reflecting a 26.1% increase from $9.5 million, or $0.13 per share, in the first quarter of 2025.
In terms of operational performance, A10 Networks experienced a significant shift in its customer base, with enterprise customers accounting for 56% of total revenue, up from 41% in the previous year. Conversely, revenue from service providers decreased to 44% from 59%. This transition indicates a strategic pivot towards enterprise solutions, which the company anticipates will continue as demand for cybersecurity solutions grows. The Americas region contributed 67% of total revenue, a notable increase from 51% in the prior year, while the Asia Pacific and EMEA regions saw declines in revenue.
A10 Networks has also made strategic investments in its product offerings, including the acquisition of ThreatX Protect in February 2025, which enhanced its cybersecurity portfolio. The company continues to focus on expanding its capabilities in AI-driven workloads and cybersecurity technologies. Research and development expenses rose by 19.6% to $19 million, reflecting the company's commitment to innovation. Additionally, the company reported a total of 2.2 million shares repurchased under its stock repurchase program, costing approximately $2.5 million during the quarter.
Despite the positive financial results, A10 Networks faced challenges in cash flow, with cash provided by operating activities decreasing to $2.2 million from $17.2 million in the same quarter last year. The company attributed this decline to changes in working capital, including increased accounts receivable and inventory levels. As of March 31, 2026, A10 Networks held $57.9 million in cash and cash equivalents, alongside $311.9 million in marketable securities, indicating a solid liquidity position to support future growth initiatives.
Looking ahead, A10 Networks remains optimistic about its growth trajectory, emphasizing its strategy of disciplined capital allocation and investment in innovation. The company plans to continue enhancing its product offerings and expanding its market presence, particularly in North America. However, it also acknowledged potential risks related to macroeconomic conditions, including tariffs and trade policies, which could impact demand and operational costs. The company is committed to monitoring these factors closely as it navigates its growth strategy in the evolving cybersecurity landscape.
About A10 Networks, Inc.
A10 Networks, Inc. is a leading provider of security and infrastructure solutions for on-premises, hybrid cloud, and edge-cloud environments. The company focuses on application delivery and network security, offering products like Thunder ADC and A10 Defend. With a growing market opportunity driven by increased cloud adoption and cybersecurity threats, A10 targets enterprises and service providers. Recent innovations include the acquisition of ThreatX Protect, enhancing its cybersecurity portfolio.
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