UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-36343 A10 NETWORKS, INC. Securities registered pursuant to Section 12(b) of the Act: (Exact Name of Registrant as Specified in its C ...

A10 Networks (ATEN) closed the last trading session at $18.94, gaining 6.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $24.4 indicates a 28.8% upside potential.The average comprises five short-term price targets ranging from a low of $22.00 to a high of $28.00, with a standard deviation of $2.3. While the lowest estimate indicates an increase of 16.2% from the current price le ...

ConversationDavid SchroederVice President of Corporate Development Good afternoon, everyone. For those in the room, if we can go ahead and get seated, we're going to get started here. Thank you all for attending and joining us for the A10 Networks Investor Day. My name is David Schroeder. I'm the Vice President of Corporate Development here at A10. This call is being recorded and webcast live and may be accessed for at least 30 days via the A10 Networks website. Before we begin, please refer to the safe har ...

A10 Networks Investor Day Summary Company Overview - A10 Networks (NYSE: ATEN) is a provider of secure, high-performance networking solutions for critical infrastructure needs, founded in 2004 and went public in 2014. [5][6] - The company reported full-year 2025 revenue of $290.6 million, adjusted EBITDA of 29.6%, and adjusted GAAP EPS of $0.90. [5][6] Strategic Goals and Performance - A10 aims to align with durable and secular catalysts, focusing on disciplined execution to drive consistent performance. [2] - The company set a "Rule of Forty" framework, targeting a combined growth plus EBITDA percentage of 40, achieving 40.6 in 2025. [7][10] - Revenue growth target was set at 10%-12%, with actual growth of 11% overall and 20% in product revenue. [10] - Security-led revenue reached 72% of total revenue, exceeding the goal of 65%. [10] - Non-GAAP adjusted EBITDA margin was achieved at 29.6%. [10] Industry Dynamics and AI Impact - The data center landscape is evolving with AI, changing traffic patterns, infrastructure requirements, and security considerations. [3][12] - AI workloads are driving exponential increases in east-west traffic, necessitating new infrastructure capabilities. [12][19] - The convergence of performance and security is critical as AI workloads scale, with security becoming inseparable from traffic delivery. [25][36] Infrastructure Challenges - Power consumption is a significant challenge, with AI servers consuming significantly more power than traditional servers, leading to a shift towards liquid-cooled data centers. [41][42] - Security challenges are increasing due to the complexity and scale of AI-driven architectures, requiring advanced monitoring and control mechanisms. [45][46] Customer Solutions and Offerings - A10's solutions are categorized into three core areas: legacy networking, next-generation networking, and security solutions, all unified by a shared architecture. [21][26] - The company is extending its capabilities with AI-driven solutions for predictive performance, traffic management, and security embedded in the data path. [24][25][31] Market Trends and Future Outlook - AI infrastructure is not solely driven by large hyperscalers; there is a growing trend towards sovereign AI and investments in various global markets, including Japan and the Middle East. [91][93] - The demand for low latency and high throughput is critical as AI workloads scale, with organizations actively investing to reduce latency. [34][35] - The attack surface is expanding with AI, necessitating robust security measures to protect against new threats. [35][36] Conclusion - A10 Networks is positioned to capitalize on the evolving data center landscape driven by AI, with a focus on delivering integrated solutions that meet the performance, security, and scalability demands of modern infrastructure. [19][20][28]

Industry Overview - Cybersecurity has become a top priority for organizations due to continuous attacks such as ransomware, phishing, and data breaches, which threaten financial stability and brand reputation [1] - The global cybersecurity market is projected to grow from $218.98 billion in 2025 to nearly $699.39 billion by 2034, reflecting a compound annual growth rate of 13.8% [2] Technological Advancements - Traditional security tools are becoming inadequate as cyberattacks evolve, leading to the integration of artificial intelligence (AI) to enhance threat detection and response [3] - AI enables a shift from reactive to proactive cybersecurity measures, allowing companies to automate detection and response processes [3] Key Players - Companies like Palo Alto Networks, CrowdStrike Holdings, and Fortinet are capitalizing on the growing demand for cybersecurity solutions tailored to modern threats [2] - Palantir Technologies is enhancing its AI capabilities through its Foundry and Gotham platforms, focusing on sectors like defense, healthcare, and finance [7][8] - Cisco Systems is integrating AI into its cybersecurity products, with significant demand for AI infrastructure reflected in $2.1 billion worth of orders in Q2 fiscal 2026 [11] - A10 Networks is embedding AI across its security solutions, including AI-native security tools and advanced DDoS solutions, positioning itself as a key player in enterprise AI adoption [14][16] Market Dynamics - The increasing complexity of digital networks and new compliance requirements are driving the demand for advanced cybersecurity solutions [2] - Companies are leveraging AI to improve their product offerings, thereby enhancing their competitive edge in a rapidly growing industry [4][13]

Core Viewpoint - A10 Networks (ATEN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, driven by institutional investors who adjust their valuations based on these estimates [4][6]. - Rising earnings estimates for A10 Networks suggest an improvement in the company's underlying business, which could lead to increased stock prices as investors respond positively [5][10]. Zacks Rating System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - A10 Networks' upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - For the fiscal year ending December 2026, A10 Networks is expected to earn $0.98 per share, with a 2.8% increase in the Zacks Consensus Estimate over the past three months, reflecting analysts' growing confidence in the company's performance [8].

Core Viewpoint - A10 Networks will host an Investor Day on February 19, 2026, to discuss its long-term growth strategy across various sectors [1] Group 1: Event Details - The Investor Day will take place in San Francisco at the Fairmont San Francisco [1] - The event will feature a live webcast and replay for investors [1] Group 2: Company Strategy - A10's executive leadership team will outline the company's growth framework focusing on Legacy Networking, Next-Generation Networking, and Security [1]

分组1 - A10 Networks reported quarterly earnings of $0.26 per share, matching the Zacks Consensus Estimate, but down from $0.31 per share a year ago [1] - The company posted revenues of $80.36 million for the quarter ended December 2025, exceeding the Zacks Consensus Estimate by 2.72% and up from $74.2 million year-over-year [2] - A10 Networks has surpassed consensus EPS estimates three times in the last four quarters [1] - The company has topped consensus revenue estimates four times over the last four quarters [2] 分组2 - A10 Networks shares have declined approximately 2.4% since the beginning of the year, while the S&P 500 has gained 1.1% [3] - The company's earnings outlook will be influenced by management's commentary during the earnings call [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.21 on revenues of $68.82 million, and for the current fiscal year, it is $0.97 on revenues of $307.08 million [7] 分组3 - The Zacks Industry Rank for Internet - Software is currently in the top 39% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - A10 Networks currently holds a Zacks Rank 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - A10 Networks reported record quarterly and full-year revenue results, with Q4 revenue reaching $80.4 million, an 8.3% year-over-year increase, and full-year revenue of $290.6 million, up 11% year-over-year [5][8][17] - Adjusted EBITDA for Q4 was $24.9 million, representing 31% of revenue, while full-year adjusted EBITDA was $86 million, or 29.6% of revenue [16][17] - Non-GAAP gross margin for Q4 was 80.8%, consistent with the company's goals of 80%-82% [15][16] Business Line Data and Key Metrics Changes - Product revenue accounted for 61% of total revenue in Q4, with product revenue of $48.8 million growing 13% year-over-year [13][14] - Security-led solutions now represent 65% of total revenue, reflecting the increasing importance of security in both legacy and next-generation networks [9][11] - Service provider revenue was 58% of total revenue, primarily driven by cloud providers, while enterprise customers contributed 42% of Q4 revenues [14] Market Data and Key Metrics Changes - Revenue from the Americas increased by 30% for the year, while EMEA revenue grew by 12%, offsetting a decline in the APJ region due to macroeconomic headwinds [18] - The Americas region accounted for 64% of global revenue, highlighting the success of A10's investments in the enterprise segment and AI infrastructure [15] Company Strategy and Development Direction - A10 Networks is focusing on enhancing its position in AI-related solutions and integrating AI across all offerings to support future growth [11] - The company aims for revenue growth of over 10%, adjusted EBITDA margins of 26%-28%, and EPS growth faster than revenue growth [11][22] - A10 is positioned to capitalize on the growing demand for AI infrastructure and network capacity, emphasizing performance, security, and efficiency [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic investments made over the past five years, positioning A10 to address emerging challenges in the technology environment [21] - For 2026, A10 expects revenue growth of 10%-12% over 2025 levels, with non-GAAP gross margin in line with historical trends [22] Other Important Information - The company paid $17.4 million in cash dividends and repurchased $68.9 million worth of shares, returning a total of $86.3 million to shareholders [19] - A10 is closely monitoring the broader supply environment, including the memory segment, and has taken proactive steps to mitigate potential impacts [20] Q&A Session Summary Question: Sustainability of service provider growth trend - Management noted that growth primarily came from cloud-oriented companies, with some improvement in spending patterns from traditional telcos focused on security and capacity [26][29] Question: Impact of AI on traffic volumes and refresh cycles - Management acknowledged that AI facilitates more complex attacks and drives higher traffic volumes, but it is too early to quantify the impact [32][33] Question: Main surprise in Q4 performance - Management highlighted improved service provider segment performance, growth in enterprise customers, and increased investment in AI infrastructure as key factors [40] Question: CapEx spend increase drivers - The increase in CapEx was attributed to investments in back-end infrastructure and new technologies for AI demonstrations [43][44] Question: Guidance visibility compared to previous years - Management indicated improved visibility due to a more durable revenue base from enterprise and AI spending, allowing for specific guidance [48][49] Question: APJ performance specifics - The decline in APJ revenue was primarily related to Japan's economic environment, with no significant loss of market share outside Japan [50] Question: Enterprise revenue growth outlook - Management expects enterprise growth to align with the overall company growth target of 10%-12% for 2026, emphasizing the importance of large enterprise customers [56][58]

Financial Data and Key Metrics Changes - A10 Networks reported record quarterly and full-year revenue results, with Q4 revenue reaching $80.4 million, an 8.3% year-over-year increase, and full-year revenue of $290.6 million, up 11% year-over-year [5][7][16] - Adjusted EBITDA for Q4 was $24.9 million, representing 31% of revenue, while full-year adjusted EBITDA was $86 million, or 29.6% of revenue [15][16] - Non-GAAP gross margin for Q4 was 80.8%, consistent with the company's goals of 80%-82% [14][15] Business Line Data and Key Metrics Changes - Product revenue accounted for 61% of total revenue in Q4, with product revenue growing 13% year-over-year to $48.8 million [11][12] - Security-led solutions now represent 65% of total revenue, reflecting the increasing importance of security in both legacy and next-generation networks [8][12] - Enterprise customers contributed 42% of Q4 revenues, while service provider revenue, which was 58% of total revenue, was primarily driven by cloud providers [13] Market Data and Key Metrics Changes - Revenue from the Americas increased by 30% for the year, while EMEA revenue grew by 12%, offsetting a decline in the APJ region due to macroeconomic challenges [17] - The Americas region accounted for 64% of global revenue, highlighting the success of A10's investments in the enterprise segment [14] Company Strategy and Development Direction - A10 Networks is focusing on enhancing its position in AI-related solutions and integrating AI across its offerings to support future growth [10] - The company aims for revenue growth of 10%-12% in 2026, with non-GAAP gross margins aligned with historical trends and expectations for expanding net and EBITDA margins [22] - A10 is committed to a disciplined operating model that balances targeted investment with margin expansion while returning capital to shareholders [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic investments and its ability to address emerging challenges related to AI and data center demands [20] - The company is well-positioned to navigate macroeconomic headwinds and is actively monitoring supply chain dynamics to mitigate potential impacts [18][19] Other Important Information - A10 paid $17.4 million in cash dividends and repurchased $68.9 million worth of shares, returning a total of $86.3 million to shareholders [18] - The company has $53.4 million remaining on its $75 million share repurchase authorization [18] Q&A Session Summary Question: Sustainability of service provider growth trend - Management noted that growth in the service provider segment was primarily driven by cloud-oriented companies, with some improvement in traditional telcos focusing on security and capacity [26][28] Question: Impact of AI on traffic volumes and security - Management acknowledged that while it is early to quantify, AI is expected to drive higher traffic volumes and potentially increase security threats, which could influence spending patterns [32][33] Question: Drivers of Q4 outperformance - Management attributed the outperformance to improved service provider relationships, new large customer acquisitions, and increased investment in AI infrastructure [39][40] Question: CapEx spending increase - The uptick in CapEx was driven by investments in back-end infrastructure and new technologies to support AI initiatives [43][44] Question: Guidance visibility and performance in APJ - Management expressed increased visibility due to a more diversified revenue base and noted that the decline in APJ was primarily related to Japan's economic environment [48][51]