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A10 Networks Inc
Founded in 2004, A10 Networks Inc. navigated through the bustling world of digital infrastructure with an eye on revolutionizing networking and security technology. The company quickly developed a reputation for its advanced application delivery controllers (ADCs), which are designed to optimize the performance of data servers by managing and directing network traffic efficiently. Over time, A10 expanded its offerings to include DDoS protection solutions and carrier-grade NAT (CGNAT) amongst others. Headquartered in San Jose, California, the company rides the wave of demand for cloud-based solutions, catering to businesses seeking to ensure uninterrupted, secure access to their digital assets across a growing array of platforms.
Generating revenue through a mix of hardware sales, software licenses, and a complementary range of subscription-based services, A10 Networks capitalizes on the increasing trend towards digital transformation and network virtualization. They provide enterprises and service providers with comprehensive solutions that enhance both security and performance in handling immense amounts of data traffic—a need accentuated by the constant evolution of the internet landscape and the ever-present threat of cyber attacks. With strategic partnerships and a growing list of notable clientele, A10 Networks continues to solidify its position as a pivotal force in an industry driven by innovation and a relentless pursuit of efficient, reliable, and secure connectivity.
Founded in 2004, A10 Networks Inc. navigated through the bustling world of digital infrastructure with an eye on revolutionizing networking and security technology. The company quickly developed a reputation for its advanced application delivery controllers (ADCs), which are designed to optimize the performance of data servers by managing and directing network traffic efficiently. Over time, A10 expanded its offerings to include DDoS protection solutions and carrier-grade NAT (CGNAT) amongst others. Headquartered in San Jose, California, the company rides the wave of demand for cloud-based solutions, catering to businesses seeking to ensure uninterrupted, secure access to their digital assets across a growing array of platforms.
Generating revenue through a mix of hardware sales, software licenses, and a complementary range of subscription-based services, A10 Networks capitalizes on the increasing trend towards digital transformation and network virtualization. They provide enterprises and service providers with comprehensive solutions that enhance both security and performance in handling immense amounts of data traffic—a need accentuated by the constant evolution of the internet landscape and the ever-present threat of cyber attacks. With strategic partnerships and a growing list of notable clientele, A10 Networks continues to solidify its position as a pivotal force in an industry driven by innovation and a relentless pursuit of efficient, reliable, and secure connectivity.
Revenue Growth: Q3 revenue grew nearly 12% year-over-year to $74.7 million, with Americas revenue up 25% on a trailing 12-month basis due to AI infrastructure investments.
Margin Expansion: EBITDA margin increased to 29.3% (from 26.7% YoY), and operating margin rose to 24.7% (from 22.6% YoY), showing strong operational leverage.
Security-Led Revenue: Security-led solutions made up over 65% of total revenue this quarter, exceeding the company's long-term target.
AI Infrastructure: AI-related deployments were a key driver for growth, especially among large North American customers.
Positive Outlook: Management expects full-year growth of 10% and targets high single-digit revenue growth for 2026, with continued focus on margin improvement.
Strong Cash & Capital Returns: $22.8 million in Q3 operating cash flow, continued dividends and share buybacks, with $371 million in cash and investments at quarter end.
Service Revenue Recovery: Global service revenue returned to growth, up 6% year-over-year.
Customer Engagement: Increased customer interest following competitor security events, with sales cycle for potential gains estimated at 6–9 months.