A10 Networks Q4 2025 A10 Networks Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 A10 Networks Inc Earnings Call
Operator: Greetings! Welcome to A10 Networks' Q4 and full year 2025 financial results conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. I will now turn the conference over to your host, Tom Baumann. Sir, you may begin.
Operator: Greetings! Welcome to A10 Networks' Q4 and full year 2025 financial results conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. I will now turn the conference over to your host, Tom Baumann. Sir, you may begin.
Speaker #1: Greetings.
Speaker #1: Welcome, everyone, to A10 Networks' Fourth Quarter and Full Year 2025 Financial Results Conference Call. At this time, all participants are in a listen-only mode.
Speaker #1: A question and answer session will follow the formal presentation. I will now turn the conference over to your host, Tom Baumann. Sir, you may begin.
Speaker #2: Thank you. And thank you all for joining us today. This call is being recorded and webcast live and may be accessed for at least 90 days via the A10 Networks website at a10networks.com.
Tom Baumann: Thank you, and thank you all for joining us today. This call is being recorded and webcast live and may be accessed for at least 90 days via the A10 Networks website at a10networks.com. Hosting the call today are Dhrupad Trivedi, A10's President and CEO, and CFO, Michelle Caron. Before we begin, I would like to remind you that shortly after the market closed today, A10 Networks issued a press release announcing its Q4 2025 financial results. Additionally, A10 published a presentation and supplemental trended financial statements. You may access the press release, presentation, and trended financial statements on the investor relations section of the company's website.
Tom Baumann: Thank you, and thank you all for joining us today. This call is being recorded and webcast live and may be accessed for at least 90 days via the A10 Networks website at a10networks.com. Hosting the call today are Dhrupad Trivedi, A10's President and CEO, and CFO, Michelle Caron. Before we begin, I would like to remind you that shortly after the market closed today, A10 Networks issued a press release announcing its Q4 2025 financial results.
Speaker #2: Hosting the call today are Dhrupad Trivedi, A10's President and CEO, and CFO Michelle Caron. Before we begin, I would like to remind you that shortly after the market closed today, A10 Networks issued a press release announcing its fourth quarter 2025 financial results.
Additionally, A10 published a presentation and supplemental trended financial statements. You may access the press release, presentation, and trended financial statements on the Investor Relations section of the company's website.
Tom Baumann: Additionally, A10 published a presentation and supplemental trended financial statements. You may access the press release, presentation, and trended financial statements on the investor relations section of the company's website.
Speaker #2: During the course of today's call, management will make forward-looking statements, including statements regarding projections for future operating results, demand, industry and customer trends, macroeconomic factors, strategy, potential new products and solutions, capital allocation strategy, profitability, expenses and investments, positioning, and dividend program.
Tom Baumann: During the course of today's call, management will make forward-looking statements, including statements regarding projections for future operating results, demand, industry and customer trends, macroeconomic factors, strategy, potential new products and solutions, our capital allocation strategy, profitability, expenses and investments, positioning, and our dividend program. These statements are based on current expectations and beliefs as of today, 4 February 2026. These forward-looking statements involve a number of risks and uncertainties, some of which are beyond our control, that could cause actual results to differ materially, and you should not rely on them as predictions of future events. A10 does not intend to update information contained in these forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law. For a more detailed description of these risks and uncertainties, please refer to most recent 10-K and quarterly report on Form 10-Q.
Tom Baumann: During the course of today's call, management will make forward-looking statements, including statements regarding projections for future operating results, demand, industry and customer trends, macroeconomic factors, strategy, potential new products and solutions, our capital allocation strategy, profitability, expenses and investments, positioning, and our dividend program. These statements are based on current expectations and beliefs as of today, 4 February 2026.
Speaker #2: These statements are based on current expectations and beliefs as of today, February 4th, 2026. These forward-looking statements involve a number of risks and uncertainties.
Tom Baumann: These forward-looking statements involve a number of risks and uncertainties, some of which are beyond our control, that could cause actual results to differ materially, and you should not rely on them as predictions of future events. A10 does not intend to update information contained in these forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law. For a more detailed description of these risks and uncertainties, please refer to most recent 10-K and quarterly report on Form 10-Q.
Speaker #2: Some of which are beyond our control that could cause actual results to differ materially, and you should not rely on them as predictions of future events.
Speaker #2: A10 does not intend to update information contained in these forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law.
Speaker #2: For a more detailed description of these risks and uncertainties, please refer to our most recent 10-K and quarterly report on Form 10-Q. Please note that, with the exception of revenue, financial measures discussed today are on a non-GAAP basis.
Tom Baumann: Please note that with the exception of revenue, financial measures discussed today are on a non-GAAP basis, unless otherwise noted, and have been adjusted to exclude certain charges. The non-GAAP financial measures are not intended to be considered in isolation or as a substitute for prepared remarks in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies. A reconciliation between GAAP and non-GAAP measures can be found in the press release issued today and on the trended quarterly financial statements posted on the company's website at www.a10networks.com. Now I'd like to turn the call over to Dhrupad Trivedi, President and CEO of A10 Networks.
Tom Baumann: Please note that with the exception of revenue, financial measures discussed today are on a non-GAAP basis, unless otherwise noted, and have been adjusted to exclude certain charges. The non-GAAP financial measures are not intended to be considered in isolation or as a substitute for prepared remarks in accordance with GAAP and may be different from non-GAAP financial measures presented by other companies.
Speaker #2: Unless otherwise noted, and have been adjusted to exclude certain charges. The non-GAAP financial measures are not intended to be considered in isolation or as a substitute for prepared remarks in accordance with GAAP.
Speaker #2: And may be different from non-GAAP financial measures presented by other companies. A reconciliation between GAAP and non-GAAP measures can be found in the press release issued today and on the trended quarterly financial statements posted on the company's website at www.a10networks.com.
Tom Baumann: A reconciliation between GAAP and non-GAAP measures can be found in the press release issued today and on the trended quarterly financial statements posted on the company's website at www.a10networks.com. Now I'd like to turn the call over to Dhrupad Trivedi, President and CEO of A10 Networks.
Speaker #2: Now, I would like to turn the call over to Drupad Trivedi, present CEO of A10 Networks.
Speaker #3: Thank you, Tom. And thank you all for joining us. Today, A10 reported record quarterly and full-year revenue results. These results reinforce A10's strategic position.
Dhrupad Trivedi: Thank you, Tom, and thank you all for joining us. Today, A10 reported record, quarterly, and full-year revenue results. These results reinforce A10's strategic position. A key contributor continues to be the sustained investment in environment supporting AI-driven workloads. As customers scale high-performance computing, inference platforms, and data-intensive applications, they are increasingly focused on traffic management, availability, and security at massive scale. These requirements play directly to A10's strengths. For the full year, revenue grew 11% year-over-year, outpacing growth rates across much of our competitive landscape and underscoring the increasing relevance of our portfolio with customers. We enter 2026 with momentum supported by macro trends as a result of our agile strategy, strong execution, and excellent industry reputation. Increasingly, we are considered a foundational piece in the development of AI and other infrastructure, in addition to being a critical component for customers operating their current environments.
Dhrupad Trivedi: Thank you, Tom, and thank you all for joining us. Today, A10 reported record, quarterly, and full-year revenue results. These results reinforce A10's strategic position. A key contributor continues to be the sustained investment in environment supporting AI-driven workloads. As customers scale high-performance computing, inference platforms, and data-intensive applications, they are increasingly focused on traffic management, availability, and security at massive scale. These requirements play directly to A10's strengths.
Speaker #3: A key contributor continues to be the sustained investment in environment-supporting AI-driven workloads. As customers scale, high-performance computing inference platforms and data-intensive applications are increasingly focused on traffic management, availability, and security at massive scale.
Speaker #3: These requirements play directly to A10's strengths. For the full-year revenue grew 11% year over year outpacing growth rates across much of our competitive landscape and underscoring the increasing relevance of our portfolio with customers.
Dhrupad Trivedi: For the full year, revenue grew 11% year-over-year, outpacing growth rates across much of our competitive landscape and underscoring the increasing relevance of our portfolio with customers. We enter 2026 with momentum supported by macro trends as a result of our agile strategy, strong execution, and excellent industry reputation. Increasingly, we are considered a foundational piece in the development of AI and other infrastructure, in addition to being a critical component for customers operating their current environments.
Speaker #3: We enter 2026 with momentum, supported by macro trends as a result of our agile strategy, strong execution, and excellent industry reputation. Increasingly, we are considered a foundational piece in the development of AI and other infrastructure, in addition to being a critical component for customers operating their current environments.
Speaker #3: As our customers grow, we grow. In the fourth quarter, we delivered $80.4 million in revenue—our largest single quarter ever. Revenue expanded 8.3% year over year, in spite of an unusually strong seasonal fourth quarter last year.
Dhrupad Trivedi: As our customers grow, we grow. In Q4, we delivered $80.4 million in revenue, our largest single quarter ever. Revenue expanded 8.3% year-over-year, in spite of an unusually strong seasonal fourth quarter last year. Our investments in targeting North America customers has resulted in this portion of our business growing faster than over...
Dhrupad Trivedi: As our customers grow, we grow. In Q4, we delivered $80.4 million in revenue, our largest single quarter ever. Revenue expanded 8.3% year-over-year, in spite of an unusually strong seasonal fourth quarter last year. Our investments in targeting North America customers has resulted in this portion of our business growing faster than over...
Speaker #3: Our investments in targeting North America customers have resulted in this portion of our business growing faster than
Speaker #3: over. We've seemed to have
Operator: We seem to have lost Dhrupad's line. Just one moment while we get him reconnected. Okay, Dhrupad, your line is live.
Operator: We seem to have lost Dhrupad's line. Just one moment while we get him reconnected. Okay, Dhrupad, your line is live.
Speaker #1: lost Drupad's line just one moment while we get him reconnected. Okay, Drupad, your line is live.
Speaker #4: Hey, great. In the fourth quarter, we delivered $80.4 million in revenue. Our largest single-quarter ever. Revenue expanded $8.3% year over year in spite of an unusually strong seasonal fourth-quarter last year.
Dhrupad Trivedi: Great, great. In Q4, we delivered $80.4 million in revenue, our largest single quarter ever. Revenue expanded 8.3% year-over-year, in spite of an unusually strong seasonal Q4 last year. Our investments in targeting North America customers has resulted in this portion of our business growing faster than our overall revenue, and we continue to be well-positioned with these customers while maintaining our geographic and customer diversity. Our global diversification continues to enable consistent performance despite macro variability. For full year 2025, we delivered revenue of $290.6 million, up 11% year-over-year, and adjusted EBITDA of $86 million, which represents 29.6% of revenue. These are all company records and continue to demonstrate the inherent strength of our strategy, operating model, and disciplined execution.
Dhrupad Trivedi: Great, great. In Q4, we delivered $80.4 million in revenue, our largest single quarter ever. Revenue expanded 8.3% year-over-year, in spite of an unusually strong seasonal Q4 last year. Our investments in targeting North America customers has resulted in this portion of our business growing faster than our overall revenue, and we continue to be well-positioned with these customers while maintaining our geographic and customer diversity.
Speaker #4: Our investments in targeting North America customers have resulted in this portion of our business growing faster than our overall revenue, and we continue to be well-positioned with these customers while maintaining our geographic and customer diversity.
Speaker #4: Our global diversification continues to enable consistent performance despite macro variability. For full-year 2025, we delivered revenue of $290.6 million up 11% year over year and adjusted EBITDA of $86 million which represents 29.6% of revenue.
Dhrupad Trivedi: Our global diversification continues to enable consistent performance despite macro variability. For full year 2025, we delivered revenue of $290.6 million, up 11% year-over-year, and adjusted EBITDA of $86 million, which represents 29.6% of revenue. These are all company records and continue to demonstrate the inherent strength of our strategy, operating model, and disciplined execution.
Speaker #4: These are all company records and continue to demonstrate the inherent strength of our strategy, operating model, and disciplined execution. Security-led solutions are now sustainably at our long-term goal of 65% of total revenue.
Dhrupad Trivedi: Security-led solutions are now sustainably at our long-term goal of 65% of total revenue. This shift reflects not only the breadth of our portfolio, but the increasingly central role security and encrypted traffic play in legacy networks as well as next-generation networks. During the quarter, we closed a win with a large global data and analytics software provider, serving customers across highly regulated industries. The customer was experiencing rapidly rising encrypted traffic volumes, driven by platform expansion and recent acquisitions, creating both performance and cost challenges. A10 was selected for its ability to deliver high-performance solutions, supporting the next-generation network with hardware acceleration and improved security, enabling the customer to consolidate infrastructure, support future growth, and materially improve cost efficiency. We also closed a significant new win with a large global airline operating highly distributed mission-critical digital platforms.
Dhrupad Trivedi: Security-led solutions are now sustainably at our long-term goal of 65% of total revenue. This shift reflects not only the breadth of our portfolio, but the increasingly central role security and encrypted traffic play in legacy networks as well as next-generation networks. During the quarter, we closed a win with a large global data and analytics software provider, serving customers across highly regulated industries.
Speaker #4: This shift reflects not only the breadth of our portfolio, but the increasingly central role security and encrypted traffic play in legacy networks, as well as next-generation networks.
Speaker #4: During the quarter, we closed a win with a large global data and analytics software provider serving customers across highly regulated industries. The customer was experiencing rapidly rising encrypted traffic volumes driven by platform expansion and recent acquisitions, creating both performance and cost challenges.
Dhrupad Trivedi: The customer was experiencing rapidly rising encrypted traffic volumes, driven by platform expansion and recent acquisitions, creating both performance and cost challenges. A10 was selected for its ability to deliver high-performance solutions, supporting the next-generation network with hardware acceleration and improved security, enabling the customer to consolidate infrastructure, support future growth, and materially improve cost efficiency. We also closed a significant new win with a large global airline operating highly distributed mission-critical digital platforms.
Speaker #4: A10 was selected for its ability to deliver high-performance solutions supporting the next-generation network with hardware acceleration and improved security enabling the customer to consolidate infrastructure support future growth and materially improve cost efficiency.
Speaker #4: We also closed a significant new win with a large global airline operating highly distributed mission-critical digital platforms. The customer was focused on improving centralized management across a complex hybrid automation performance and environment while reducing operational cost at scale.
Dhrupad Trivedi: The customer was focused on improving automation, performance, and centralized management across a complex hybrid environment while reducing operational costs at scale. A10 was selected for its ability to deliver state-of-the-art cybersecurity, resilient next-generation networking solutions with deep automation, while supporting consistent performance and availability across an always-on customer-facing operating model. Importantly, these wins are representative of the type of demand that aligns well with our operating model and our strategic growth drivers. They reflect customers prioritizing performance, security, and efficiency at scale, use cases where A10 can deliver strong value without incremental complexity or disproportionate cost. We continue to drive a disciplined operating model that balances targeted investment with margin expansion, converting growth into profitability and cash, while dynamically reinvesting in strategic priorities. As previously noted, investing in organic growth is one of our strategic priorities, in addition to returning capital to shareholders.
Dhrupad Trivedi: The customer was focused on improving automation, performance, and centralized management across a complex hybrid environment while reducing operational costs at scale. A10 was selected for its ability to deliver state-of-the-art cybersecurity, resilient next-generation networking solutions with deep automation, while supporting consistent performance and availability across an always-on customer-facing operating model. Importantly, these wins are representative of the type of demand that aligns well with our operating model and our strategic growth drivers.
Speaker #4: A10 was selected for its ability to deliver state-of-the-art, cybersecurity-resilient, next-generation networking solutions with deep automation, while supporting consistent performance and availability across an always-on, customer-facing operating model.
Speaker #4: Importantly, these wins are representative of the type of demand that aligns well with our operating model and our strategic growth drivers. They reflect customers prioritizing performance, security, and efficiency at scale.
Dhrupad Trivedi: They reflect customers prioritizing performance, security, and efficiency at scale, use cases where A10 can deliver strong value without incremental complexity or disproportionate cost. We continue to drive a disciplined operating model that balances targeted investment with margin expansion, converting growth into profitability and cash, while dynamically reinvesting in strategic priorities. As previously noted, investing in organic growth is one of our strategic priorities, in addition to returning capital to shareholders.
Speaker #4: Use cases where A10 can deliver strong value without incremental complexity or disproportionate cost. We continue to drive a disciplined operating model that balances targeted investment with margin expansion converting growth into profitability and cash while dynamically reinvesting in strategic priorities.
Speaker #4: As previously noted, investing in organic growth is one of our strategic priorities, in addition to returning capital to shareholders. We have reallocated our research and development budgets, focusing on accelerating some of our future AI-related solutions and integrating AI across all our offerings, supporting current and future growth.
Dhrupad Trivedi: We have reallocated our research and development budgets, focusing on accelerating some of our future AI-related solutions and integrating AI across all our offerings, supporting current and future growth. We remain committed to our long-term operating model, driving revenue growth more than 10%, Adjusted EBITDA margins of 26% to 28%, and EPS growth faster than revenue growth. A10 is well positioned to serve our customers, and our solutions are well aligned with the dynamic needs of today's customers. Today, A10 works with nine of top 10 telecom operators, eight of the top 10 cloud providers, and more than 7,000 customers globally. The investment cycle to support AI specifically and network capacity generally continues to drive sustained demand. A10 is positioned to grow with our customers, and our proven capabilities and industry-leading total cost of ownership are helping us win new business as well.
Dhrupad Trivedi: We have reallocated our research and development budgets, focusing on accelerating some of our future AI-related solutions and integrating AI across all our offerings, supporting current and future growth. We remain committed to our long-term operating model, driving revenue growth more than 10%, Adjusted EBITDA margins of 26% to 28%, and EPS growth faster than revenue growth. A10 is well positioned to serve our customers, and our solutions are well aligned with the dynamic needs of today's customers.
Speaker #4: We remain committed to our long-term operating model, driving revenue growth of more than 10%, adjusted EBITDA margins of 26% to 28%, and EPS growth faster than revenue growth.
Speaker #4: A10 is well-positioned to serve our customers and our solutions are well-aligned with the dynamic needs of today's customers. Today, A10 works with nine of top 10 telecom operators eight of the top 10 cloud providers and more than 7,000 customers globally.
Dhrupad Trivedi: Today, A10 works with nine of top 10 telecom operators, eight of the top 10 cloud providers, and more than 7,000 customers globally. The investment cycle to support AI specifically and network capacity generally continues to drive sustained demand. A10 is positioned to grow with our customers, and our proven capabilities and industry-leading total cost of ownership are helping us win new business as well. With that, I'd like to turn the call over to Michelle Caron, our Chief Financial Officer, to review the numbers in more detail. After that, I will discuss our 2026 outlook. Michelle?
Speaker #4: The investment cycle to support AI-specifically and network capacity generally continues to drive sustained demand. A10 is positioned to grow with our customers and our proven capabilities and industry-leading total cost of ownership are helping us win new business as well.
Speaker #4: With that, I'd like to turn the call over to Michelle Caron, our Chief Financial Officer to review the numbers in more detail. After that, I will discuss our 2026 outlook.
Dhrupad Trivedi: With that, I'd like to turn the call over to Michelle Caron, our Chief Financial Officer, to review the numbers in more detail. After that, I will discuss our 2026 outlook. Michelle?
Speaker #4: Michelle.
Speaker #5: Thanks, Dhrupad. As a reminder, with the exception of revenue, all of the metrics discussed on this call are on a non-GAAP basis unless otherwise stated.
Gray Powell: Thanks, Dhrubed.
Michelle Curran: Thanks, Dhrubed. As a reminder, with the exception of revenue, all of the metrics discussed on this call are on a non-GAAP basis, unless otherwise stated. A full reconciliation of GAAP to non-GAAP results are provided in our press release and on our website. So now let me turn to the results. As Dhrupad had noted, we delivered a strong Q4 and entered 2026 with encouraging momentum.
Michelle Caron: ...As a reminder, with the exception of revenue, all of the metrics discussed on this call are on a non-GAAP basis, unless otherwise stated. A full reconciliation of GAAP to non-GAAP results are provided in our press release and on our website. So now let me turn to the results. As Dhrupad had noted, we delivered a strong Q4 and entered 2026 with encouraging momentum. Fourth quarter revenue grew 8.3% to $80.4 million. This was a record revenue level for A10. From a mix perspective, product revenue accounted for 61% of total revenue, and service revenue represented 39%. Product revenue of $48.8 million grew 13% year-over-year, and typically is representative of future revenue trends.
Speaker #5: A full reconciliation of GAAP to non-GAAP results are provided in our press release and on our website. So now let me turn to the results.
Speaker #5: As Dhrupad noted, we delivered a strong Q4 and entered 2026 with encouraging momentum. Fourth quarter revenue grew 8.3% to $80.4 million. This was a record revenue level for A10.
Michelle Curran: Fourth quarter revenue grew 8.3% to $80.4 million. This was a record revenue level for A10. From a mix perspective, product revenue accounted for 61% of total revenue, and service revenue represented 39%. Product revenue of $48.8 million grew 13% year-over-year, and typically is representative of future revenue trends.
Speaker #5: From a mixed perspective, product revenue accounted for 61% of total revenue and service revenue represented 39%. Product revenue of 48.8 million grew 13% year over year and typically is representative of future revenue trends.
Speaker #5: Within our product revenue category, the fourth quarter achieved our long-term target of generating more than 65% of our total revenue from security-led solutions. This demonstrates our ability to deliver differentiated solutions leveraging our strengths in performance, scale, and reliability.
Michelle Caron: Within our product revenue category, the Q4 achieved our long-term target of generating more than 65% of our total revenue from security-led solutions. This demonstrates our ability to deliver differentiated solutions, leveraging our strengths in performance, scale, and reliability. Looking at our major verticals, enterprise customers represented 42% of Q4 revenues. The Americas continued to outpace overall enterprise revenue growth for the company, in line with our stated strategy. Service provider revenue, which was 58% of total revenue, was weighted towards cloud providers, further indication of our success in strategically aligning our offerings with AI infrastructure build-out. In fact, non-cloud service provider revenue was flat year-over-year, reflecting an ongoing mix shift as customers prioritize security and next-generation networking initiatives over legacy infrastructure.
Michelle Curran: Within our product revenue category, the Q4 achieved our long-term target of generating more than 65% of our total revenue from security-led solutions. This demonstrates our ability to deliver differentiated solutions, leveraging our strengths in performance, scale, and reliability. Looking at our major verticals, enterprise customers represented 42% of Q4 revenues. The Americas continued to outpace overall enterprise revenue growth for the company, in line with our stated strategy.
Speaker #5: Looking at our major verticals, enterprise customers represented 42% of Q4 revenues. The Americas continued to outpace overall enterprise revenue growth for the company in line with our stated strategy.
Michelle Curran: Service provider revenue, which was 58% of total revenue, was weighted towards cloud providers, further indication of our success in strategically aligning our offerings with AI infrastructure build-out. In fact, non-cloud service provider revenue was flat year-over-year, reflecting an ongoing mix shift as customers prioritize security and next-generation networking initiatives over legacy infrastructure.
Speaker #5: Service provider revenue, which was 58% of total revenue, was weighted towards cloud providers further indication of our success in strategically aligning our offerings with AI infrastructure buildout.
Speaker #5: In fact, non-cloud service provider revenue was flat year over year. Reflecting an ongoing mix shift as customers prioritize security and next-generation networking initiatives over legacy infrastructure.
Speaker #5: A10 has evolved its solutions to be well-positioned to capture legacy refresh demand as this market transition progresses and customers resume investment while continuing to align with their evolving priorities around performance, scale, and security.
Michelle Caron: A10 has evolved its solutions to be well-positioned to capture legacy refresh demand as this market transition progresses and customers resume investment while continuing to align with their evolving priorities around performance, scale, and security. From a geographical perspective, our Americas region represented 64% of global revenue, reflecting the benefits of A10's investments in our enterprise segment and strength of AI infrastructure build-out. Macro-related headwinds, such as persistent inflation and threat of tariffs in rest of the world, were more than offset by strength in Americas. Q4 operating results reflected our continued investment in our strategic initiatives, as well as our financial discipline. Non-GAAP gross margin was 80.8%, in line with our stated goals of 80% to 82%.
Michelle Curran: A10 has evolved its solutions to be well-positioned to capture legacy refresh demand as this market transition progresses and customers resume investment while continuing to align with their evolving priorities around performance, scale, and security. From a geographical perspective, our Americas region represented 64% of global revenue, reflecting the benefits of A10's investments in our enterprise segment and strength of AI infrastructure build-out.
Speaker #5: From a geographical perspective, our Americas region represented 64% of global revenue. Reflecting the benefits of A10's investments in our enterprise segment and strength of AI infrastructure buildout.
Speaker #5: Macro-related headwinds such as persistent inflation and threat of tariffs in the rest of the world were more than offset by strength in Americas. Q4 operating results, reflected our continued investment in our strategic initiatives as well as our financial discipline.
Michelle Curran: Macro-related headwinds, such as persistent inflation and threat of tariffs in rest of the world, were more than offset by strength in Americas. Q4 operating results reflected our continued investment in our strategic initiatives, as well as our financial discipline. Non-GAAP gross margin was 80.8%, in line with our stated goals of 80% to 82%.
Speaker #5: Non-GAAP gross margin was 80.8% in line with our stated goals of 80 to 82%. Operating expenses were 43.6 million dollars with an operating margin of 26.6%.
Michelle Caron: Operating expenses were $43.6 million, with an operating margin of 26.6%, reflecting increased investments, mainly in R&D, focusing on next-generation networking and security. Our non-GAAP effective tax rate was 15.7%, resulting in net income of $19.1 million or $0.26 a share. Q4 diluted weighted share count was 72.7 million shares. Adjusted EBITDA was $24.9 million, 31% of revenue. We generated $22.7 million in cash flow from operations in Q4, with CapEx coming in at $6.7 million, bringing free cash flow for Q4 in at $16 million. We've continued to invest in the business while also returning capital to our shareholders. Now I'll turn to the full year results.
Michelle Curran: Operating expenses were $43.6 million, with an operating margin of 26.6%, reflecting increased investments, mainly in R&D, focusing on next-generation networking and security. Our non-GAAP effective tax rate was 15.7%, resulting in net income of $19.1 million or $0.26 a share. Q4 diluted weighted share count was 72.7 million shares.
Speaker #5: R&D focusing on next-generation networking and security. Our non-GAAP Reflecting effective tax rate was 15.7% resulting in net income of 19.1 million dollars or 26 cents a share.
Speaker #5: Q4 diluted weighted share count was 72.7 million shares. Adjusted EBITDA was $24.9 million, 31% of revenue. We generated $22.7 million in cash flow from operations in Q4, with CapEx coming in at $6.7 million, bringing free cash flow for quarter four in at $16 million.
Michelle Curran: Adjusted EBITDA was $24.9 million, 31% of revenue. We generated $22.7 million in cash flow from operations in Q4, with CapEx coming in at $6.7 million, bringing free cash flow for Q4 in at $16 million. We've continued to invest in the business while also returning capital to our shareholders. Now I'll turn to the full year results.
Speaker #5: We've continued to invest in the business while also returning capital to our shareholders. Now I'll turn to the full year results. Revenue grew 11% to $290.6 million, with non-GAAP gross margin coming in at 80.6%.
Michelle Caron: Revenue grew 11% to $296 million, with non-GAAP gross margin coming in at 80.6%. At the same time, we delivered record Adjusted EBITDA of $86 million or 29.6%, reflecting disciplined execution and a highly productive operating model. Net income was $66.3 million, or $0.90 a share, and was up from $64.8 million or $0.86 a share in the prior year, while we invested significantly throughout the year in strategic investments such as AI and security. As a result of this, we were still able to increase EPS on a year-over-year basis. Our growth was driven by increased demand for security-led revenue, which represented 72% of total revenue for the year.
Michelle Curran: Revenue grew 11% to $296 million, with non-GAAP gross margin coming in at 80.6%. At the same time, we delivered record Adjusted EBITDA of $86 million or 29.6%, reflecting disciplined execution and a highly productive operating model. Net income was $66.3 million, or $0.90 a share, and was up from $64.8 million or $0.86 a share in the prior year, while we invested significantly throughout the year in strategic investments such as AI and security.
Speaker #5: At the same time, we delivered record adjusted EBITDA of $86 million, or 29.6%, reflecting disciplined execution and a highly productive operating model. Net income was $66.3 million, or $0.90 a share, and was up from $64.8 million, or $0.86 a share, in the prior year, while we invested significantly throughout the year in strategic investments such as AI and security.
Speaker #5: As a result of this, we were still able to increase EPS on a year-over-year basis. Our growth was driven by increased demand for security-led revenue, which represented 72% of total revenue for the year.
Michelle Curran: As a result of this, we were still able to increase EPS on a year-over-year basis. Our growth was driven by increased demand for security-led revenue, which represented 72% of total revenue for the year. Revenue from the Americas increased 30% for the year, while revenue from EMEA increased 12%, offsetting a decline in revenue from APJ, where the region has been experiencing macroeconomic headwinds such as low GDP growth, persistent inflation, and concerns with tariffs.
Speaker #5: Revenue from the Americas increased 30% for the year while revenue from EMEA increased 12%. Offsetting a decline in revenue from APJ were the region has been experiencing macroeconomic headwinds such as low GDP growth, persistent inflation, and concerns with tariffs.
Michelle Caron: Revenue from the Americas increased 30% for the year, while revenue from EMEA increased 12%, offsetting a decline in revenue from APJ, where the region has been experiencing macroeconomic headwinds such as low GDP growth, persistent inflation, and concerns with tariffs. We continue to have deep customer relationships in these regions to preserve our geographic diversity. Turning to the balance sheet, cash and marketable securities were $378 million as of December 31, and our deferred revenue was $142.8 million. During the year, we paid $17.4 million in cash dividends and repurchased $68.9 million worth of shares, returning a total of $86.3 million to shareholders.
Speaker #5: We continue to have deep customer relationships in these regions to preserve our geographic diversity. Turning to the balance sheet, cash and marketable securities were 378 million as of December 31st and our deferred revenue was 142.8 million.
Michelle Curran: We continue to have deep customer relationships in these regions to preserve our geographic diversity. Turning to the balance sheet, cash and marketable securities were $378 million as of December 31, and our deferred revenue was $142.8 million. During the year, we paid $17.4 million in cash dividends and repurchased $68.9 million worth of shares, returning a total of $86.3 million to shareholders.
Speaker #5: During the year, we paid $17.4 million in cash dividends and repurchased $68.9 million worth of shares, returning a total of $86.3 million to shareholders.
Speaker #5: The board has approved a quarterly cash dividend of 6 cents per share to be paid on March the 2nd, 2026 to shareholders of record on February 16th, 2026.
Michelle Caron: The board has approved a quarterly cash dividend of $0.06 per share to be paid on 2 March 2026, to shareholders of record on 16 February 2026. The company has $53.4 million remaining on its $75 million share repurchase authorization. Now, we're closely monitoring the broader supply environment, including the memory segment, which has been widely discussed across the industry by customers, partners, and competitors alike. Based on our supply management processes, we don't expect this to impact the delivery to our customers, and we continue to navigate cost pressures alongside our suppliers and our customers. As a result, we've taken proactive steps around supply planning, supplier engagement, and component flexibility to mitigate potential impacts. We deployed similar measures in previously supply-constrained environments, such as 2020, so we feel well positioned to navigate this dynamic.
Michelle Curran: The board has approved a quarterly cash dividend of $0.06 per share to be paid on 2 March 2026, to shareholders of record on 16 February 2026. The company has $53.4 million remaining on its $75 million share repurchase authorization. Now, we're closely monitoring the broader supply environment, including the memory segment, which has been widely discussed across the industry by customers, partners, and competitors alike.
Speaker #5: The company has 53.4 million remaining on its 75 million share repurchase authorization. Now we're closely monitoring the broader supply environment including the memory segment which has been widely discussed across the industry by customers, partners, and competitors alike.
Michelle Curran: Based on our supply management processes, we don't expect this to impact the delivery to our customers, and we continue to navigate cost pressures alongside our suppliers and our customers. As a result, we've taken proactive steps around supply planning, supplier engagement, and component flexibility to mitigate potential impacts.
Speaker #5: Based on our supply management processes, we don't expect this to impact the delivery to our customers and we continue to navigate cost pressures alongside our suppliers and our customers.
Speaker #5: As a result, we've taken proactive steps around supply planning, supplier engagement, and component flexibility to mitigate potential impacts. We deployed similar measures in previously supply-constrained environments, such as 2020, so we feel well-positioned to navigate this dynamic.
Michelle Curran: We deployed similar measures in previously supply-constrained environments, such as 2020, so we feel well positioned to navigate this dynamic. I look forward to speaking with many of you in the coming weeks, gathering your feedback on our strategy and operations. I'll now turn the call back to Dhrupad for a discussion of our 2026 outlook and closing comments.
Speaker #5: I look forward to speaking with many of you in the coming weeks and gathering your feedback on our strategy and operations. I'll now turn the call back to Dhrupad for a discussion of our 2026 outlook and closing.
Michelle Caron: I look forward to speaking with many of you in the coming weeks, gathering your feedback on our strategy and operations. I'll now turn the call back to Dhrupad for a discussion of our 2026 outlook and closing comments.
Speaker #2: Thank you, Michelle. The
Dhrupad Trivedi: Thank you, Michelle. The results for Q4 and full year validate the strategic investments we have made over the past half decade to reposition A10 as a valuable partner for addressing the new and emerging challenges related to the evolving technology environment. The demands AI brings to a data center or a CSP are challenges that A10 has a proven track record of addressing. We facilitate east-west traffic, efficiently managing workloads and dynamically prioritize traffic, emphasizing high throughput and low latency, all with integrated security. As a result, A10 is positioned squarely in front of multiple durable secular catalysts. We are investing to enhance our position across our portfolio. Our business model dynamically allocates resources to address changing market conditions while preserving profitability and shareholder return. In the press release we issued today, we laid out our initial 2026 outlook.
Dhrupad Trivedi: Thank you, Michelle. The results for Q4 and full year validate the strategic investments we have made over the past half decade to reposition A10 as a valuable partner for addressing the new and emerging challenges related to the evolving technology environment. The demands AI brings to a data center or a CSP are challenges that A10 has a proven track record of addressing.
Speaker #2: results for the fourth quarter and comments. full year validate the strategic investments we have made over the past half-decade to reposition A10 as a valuable partner for addressing the new and emerging challenges related to the evolving technology environment.
Speaker #2: The demands AI brings to a data center or a CSP are challenges that A10 has a proven track record of addressing. We facilitate east-west traffic, efficiently managing workloads, and dynamically prioritize traffic, emphasizing high throughput and low latency all with integrated security.
Dhrupad Trivedi: We facilitate east-west traffic, efficiently managing workloads and dynamically prioritize traffic, emphasizing high throughput and low latency, all with integrated security. As a result, A10 is positioned squarely in front of multiple durable secular catalysts. We are investing to enhance our position across our portfolio. Our business model dynamically allocates resources to address changing market conditions while preserving profitability and shareholder return. In the press release we issued today, we laid out our initial 2026 outlook.
Speaker #2: As a result, A10 is positioned squarely in front of multiple durable secular catalysts. We are investing to enhance our position across our portfolio. Our business model dynamically allocates resources to address changing market conditions while preserving profitability and shareholder return.
Speaker #2: In the press release we issued today, we laid out our initial 2026 outlook. On a full-year basis for 2026, we expect to deliver both top- and bottom-line growth, including revenue growth of 10 to 12 percent over 2025 levels.
Dhrupad Trivedi: On a full year basis for 2026, we expect to deliver both top and bottom line growth, including revenue growth of 10% to 12% over 2025 levels. We also expect non-GAAP gross margin in line with historical trends and within our stated business model goals of 80% to 82%, while navigating input cost pressures. We expect to expand our net and EBITDA margins from current levels, and we expect EPS growth to exceed our revenue growth rate. We will provide additional strategic and solution context around our growth drivers and market positioning at an upcoming Investor Day, including a deeper discussion of the factors that drive these expectations. Operator, you can now open the call up for questions.
Dhrupad Trivedi: On a full year basis for 2026, we expect to deliver both top and bottom line growth, including revenue growth of 10% to 12% over 2025 levels. We also expect non-GAAP gross margin in line with historical trends and within our stated business model goals of 80% to 82%, while navigating input cost pressures.
Speaker #2: We also expect non-GAAP gross margin in line with historical trends and within our stated business model goals of 80 to 82 percent while navigating input cost pressures.
Dhrupad Trivedi: We expect to expand our net and EBITDA margins from current levels, and we expect EPS growth to exceed our revenue growth rate. We will provide additional strategic and solution context around our growth drivers and market positioning at an upcoming Investor Day, including a deeper discussion of the factors that drive these expectations. Operator, you can now open the call up for questions.
Speaker #2: We expect to expand our net and EBITDA margins from current levels, and we expect EPS growth to exceed our revenue growth rate. We will provide additional strategic and solution context around our growth drivers and market positioning at an upcoming investor day.
Speaker #2: Including a deeper discussion of the factors that drive these expectations. Operator, you can now open the call up for questions.
Speaker #3: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad.
Operator: Thank you. At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Once again, please press star one if you have a question or a comment. The first question comes from Gray Powell with BTIG. Please proceed.
Operator: Thank you. At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Once again, please press star one if you have a question or a comment. The first question comes from Gray Powell with BTIG. Please proceed.
Speaker #3: A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue.
Speaker #3: For those necessary to pick up your handset before participating using speaker equipment, it may be necessary to press the star key. One moment, please, while we poll for questions.
Speaker #3: Once again, please press star one if you have a question or a comment. The first question comes from Gray Powell. With BTIG, please
Speaker #3: proceed. Hey,
Gray Powell: Hey, great. Thanks for taking the questions, and congratulations on the good results.
Gray Powell: Hey, great. Thanks for taking the questions, and congratulations on the good results.
Speaker #4: Great. Thanks for taking the questions, and congratulations on the good results.
Dhrupad Trivedi: Thanks, Gray.
Dhrupad Trivedi: Thanks, Gray.
Gray Powell: Absolutely. So maybe a couple questions on my side. Just to start off, it was really good to see the improvement in service provider growth in 2025. You know, as we think about 2026, how sustainable is the trend there? And then I know you hit on this in the prepared remarks, just like, how should we think about the different growth drivers within service provider, you know, like a recovery in traditional communication companies versus a continued growth from the cloud providers deploying AI infrastructure? Thank you.
Speaker #4: Yeah, thanks, Gray. Absolutely. So maybe a couple of questions on my side. Just to start off, it was really good to see the improvement in service provider growth in 2025.
Gray Powell: Absolutely. So maybe a couple questions on my side. Just to start off, it was really good to see the improvement in service provider growth in 2025. You know, as we think about 2026, how sustainable is the trend there? And then I know you hit on this in the prepared remarks, just like, how should we think about the different growth drivers within service provider, you know, like a recovery in traditional communication companies versus a continued growth from the cloud providers deploying AI infrastructure? Thank you.
Speaker #4: Just as we think about 2026, how sustainable is the trend there? And then I know you hit on this in the prepared remarks. Just how should we think about the different growth drivers within service provider like a recovery in traditional communication companies versus a continued growth from the cloud providers deploying AI infrastructure?
Speaker #4: Thank
Speaker #4: you. Yeah, great.
Dhrupad Trivedi: Yeah. Great. No, thank you. Good, good question. So, yes, I think as we went through the period this year, right, I think, you can see in the results we saw, certainly relative to 2024, an improvement in the service provider segment overall. I would say the two, two things to note, first is majority of that growth did come from cloud-oriented companies, whether it's in US or elsewhere, building out infrastructure, towards AI or towards more cloud services. However, I would say as we went through the year into Q3, Q4 period, we saw, not return to original levels, but certainly improvement in spending patterns with also the traditional telcos, and the nature of that investment, I would say, is twofold.
Dhrupad Trivedi: Yeah. Great. No, thank you. Good, good question. So, yes, I think as we went through the period this year, right, I think, you can see in the results we saw, certainly relative to 2024, an improvement in the service provider segment overall. I would say the two, two things to note, first is majority of that growth did come from cloud-oriented companies, whether it's in US or elsewhere, building out infrastructure, towards AI or towards more cloud services.
Speaker #2: No, thank you. Good question. So yeah, so I think as we went through the period this year, right, I think you can see in the results we saw certainly relative to 2024 an improvement in the service provider segment overall.
Speaker #2: I would say the two things to note first is majority of that growth did come from cloud-oriented companies whether it's in the US or elsewhere building out infrastructure towards AI or towards more cloud services.
Speaker #2: However, I would say as we went through the year into Q3, Q4 period, we to original levels but certainly improvement in spending patterns with also the traditional telcos.
Dhrupad Trivedi: However, I would say as we went through the year into Q3, Q4 period, we saw, not return to original levels, but certainly improvement in spending patterns with also the traditional telcos, and the nature of that investment, I would say, is twofold. One was relative to improving their security position and posture for the networks or the enterprise services that they provide.
Speaker #2: And the nature of their investment, I would say, is twofold. One was relative to improving their security position and posture for the networks or the enterprise services that they provide.
Dhrupad Trivedi: One was relative to improving their security position and posture for the networks or the enterprise services that they provide. And second, I would say that, because of the nature of our portfolio, the other part of that growth was them simply needing to add capacity to manage more data and more users and more traffic on the network, right? So without them needing to build like a, kind of a greenfield new network, both those drivers were relevant to us. One was making their networks more secure, and second is continuing to modernize the network as well as adding capacity while they do that.
Speaker #2: And second, I would say that because portfolio, the other part of that growth was them simply capacity to
Dhrupad Trivedi: And second, I would say that, because of the nature of our portfolio, the other part of that growth was them simply needing to add capacity to manage more data and more users and more traffic on the network, right? So without them needing to build like a, kind of a greenfield new network, both those drivers were relevant to us. One was making their networks more secure, and second is continuing to modernize the network as well as adding capacity while they do that.
Speaker #1: To manage more more users and data and more traffic on the network . Right . So without them needing to a build like needing to build like a kind of a kind of a greenfield new network , both those drivers us .
Speaker #1: relevant to One was were making them networks more secure . And second is continuing to modernize the network , as well adding as capacity .
Speaker #1: While they do that .
Gray Powell: Got it. Okay, and then just a quick follow-up, if it's okay.
Gray Powell: Got it. Okay, and then just a quick follow-up, if it's okay.
Speaker #2: Got it . Okay . And then just a quick follow up . If it's okay . Yeah . know it's I probably really hard to and maybe it's like too early , quantify but are you seeing as part of this like are you seeing AI drive higher traffic volumes like higher levels of DDoS attacks or something else ?
Dhrupad Trivedi: Yeah. Yep.
Dhrupad Trivedi: Yeah. Yep.
Gray Powell: I know it's probably really hard to quantify, and maybe it's like too early, but are you seeing is part of this like are you seeing AI drive higher traffic volumes, like higher levels of DDoS attacks or something else, and that's driving part of the refresh cycle? Or am I, you know, getting ahead of myself there?
Gray Powell: I know it's probably really hard to quantify, and maybe it's like too early, but are you seeing is part of this like are you seeing AI drive higher traffic volumes, like higher levels of DDoS attacks or something else, and that's driving part of the refresh cycle? Or am I, you know, getting ahead of myself there?
Speaker #2: And and that's driving part of the cycle , or am I refresh you know , am I , ahead of myself ? There ?
Dhrupad Trivedi: Yeah, no, that's a good question, Gray. I think, you know, we certainly monitor that, and I think your question, it may be a little early. I don't think we are past that point where we could quantify or talk about it. But absolutely there is a two sides of the coin, right, is where AI also facilitates kind of ease of deploying more complex, more sophisticated attacks, and therefore also drives volume. And some of it is related to also the nature of traffic that did not exist on the network before AI, right? So that certainly is a factor. A little early to quantify. I don't think that, you know, service providers are investing yet on that, but they are certainly viewing that as something to worry about.
Dhrupad Trivedi: Yeah, no, that's a good question, Gray. I think, you know, we certainly monitor that, and I think your question, it may be a little early. I don't think we are past that point where we could quantify or talk about it. But absolutely there is a two sides of the coin, right, is where AI also facilitates kind of ease of deploying more complex, more sophisticated attacks, and therefore also drives volume.
Speaker #1: Yeah . No , question . I think , you know , we that's a good certainly monitor I that . And think you are your question .
Speaker #1: It may be a little early. I don't think, past where we are, that we could point to or quantify or talk about it. But absolutely, there are two sides of the coin.
Speaker #1: Right . Is where AI also facilitates kind of ease of deploying more more complex , sophisticated attacks also drives volume . And some of it is related to also the nature of traffic that did not exist on the network before AI .
Dhrupad Trivedi: And some of it is related to also the nature of traffic that did not exist on the network before AI, right? So that certainly is a factor. A little early to quantify. I don't think that, you know, service providers are investing yet on that, but they are certainly viewing that as something to worry about.
Speaker #1: Right ? So that certainly is a factor , a little early to I quantify . that , you don't know , service providers are investing yet on that , but they are certainly viewing that something to as worry about .
Dhrupad Trivedi: But they do expect and anticipate increasing volume just from the nature of the volume increase when people constantly feed prompts and get feedback, as opposed to not having that traffic before, right? So that certainly also feeds the growth. And the security is something that is on, but hard to quantify that yet.
Dhrupad Trivedi: But they do expect and anticipate increasing volume just from the nature of the volume increase when people constantly feed prompts and get feedback, as opposed to not having that traffic before, right? So that certainly also feeds the growth. And the security is something that is on, but hard to quantify that yet.
Speaker #1: they do expect an anticipate increasing volume . Just from the nature of the volume increase when people constantly feed prompts feedback and get , as opposed to that traffic before .
Speaker #1: Right ? So that also feeds the growth certainly . And the is something that is on to hard quantify that . Yet .
Gray Powell: Understood. All right. Thank you very much.
Gray Powell: Understood. All right. Thank you very much.
Speaker #2: Understood . All
Speaker #2: right . Thank you very much . .
Dhrupad Trivedi: Yeah, thanks.
Dhrupad Trivedi: Yeah, thanks.
Operator: Our next question comes from Anja Soderstrom with Sidoti. Please proceed.
Operator: Our next question comes from Anja Soderstrom with Sidoti. Please proceed.
Speaker #1: Thanks .
Speaker #3: Our next question comes from Andy Söderström with Sidoti. Please proceed.
Anja Soderstrom: Hi, and thank you for taking my question, and congrats on the quarter and the outlook for 2026.
Anja Soderstrom: Hi, and thank you for taking my question, and congrats on the quarter and the outlook for 2026.
Speaker #4: you for Hey , thank taking my question . And congrats on on the and the quarter outlook for 2026 . quite an Again , you had output fourth quarter .
Dhrupad Trivedi: Thanks, Annie.
Dhrupad Trivedi: Thanks, Annie.
Anja Soderstrom: So you had quite an outperformance in Q4. What was the main surprise here? What changed during the quarter, and sort of how did the quarter trend for you?
Anja Soderstrom: So you had quite an outperformance in Q4. What was the main surprise here? What changed during the quarter, and sort of how did the quarter trend for you?
Speaker #4: the main surprise here ? What changed during the quarter and sort of how did trend for you What ?
Dhrupad Trivedi: Yeah, so I think for us, you know, as we had talked about today, Anja, is that our focus is obviously we have a strong position with the service provider segment globally. And, as that, you know, improves, maybe not fully recover, we'll continue to see, you know, some benefit from those deep relationships that we continue to build upon. So that obviously, you can see in the numbers, helped a little bit. Second is, right, we continue to focus on growing our footprint around larger customers, including in the enterprise segment, and we highlighted a couple of new customers. So, our ability to land new large customers obviously is also helpful to that growth while we benefit overall, right?
Dhrupad Trivedi: Yeah, so I think for us, you know, as we had talked about today, Anja, is that our focus is obviously we have a strong position with the service provider segment globally. And, as that, you know, improves, maybe not fully recover, we'll continue to see, you know, some benefit from those deep relationships that we continue to build upon.
Speaker #1: Yes , I think for us as , you know , as we had talked about , right . Is that focus our is obviously we have a strong position with the provider segment globally .
Speaker #1: And as that , you know maybe not fully recover , we'll continue to see , you know , some benefit from those relationships that we continue to build upon .
Dhrupad Trivedi: So that obviously, you can see in the numbers, helped a little bit. Second is, right, we continue to focus on growing our footprint around larger customers, including in the enterprise segment, and we highlighted a couple of new customers. So, our ability to land new large customers obviously is also helpful to that growth while we benefit overall, right?
Speaker #1: So that obviously , you can see in the numbers helped a bit little is right . . Second We continue to focus growing our around footprint larger customers , on including in the segments .
Speaker #1: And we highlighted a enterprise couple of new customers . So our ability to land new large customers is also helpful growth . While we benefit to that overall .
Dhrupad Trivedi: Third, as we said in our comments, that to the degree, you know, where some may be a lot, some may be not so much, people are investing in AI infrastructure. Our portfolio is well positioned, so we see that. So I would say, you know, SP becoming slightly better was, I would say, better than we expected. Not all the way back, but certainly, you know, something that helped us in the quarter. Our growth on enterprise side as well as on AI-led infrastructure was what we were expecting.
Dhrupad Trivedi: Third, as we said in our comments, that to the degree, you know, where some may be a lot, some may be not so much, people are investing in AI infrastructure. Our portfolio is well positioned, so we see that. So I would say, you know, SP becoming slightly better was, I would say, better than we expected. Not all the way back, but certainly, you know, something that helped us in the quarter. Our growth on enterprise side as well as on AI-led infrastructure was what we were expecting.
Speaker #1: Right . as we said in And comments , that our to the degree , you know , some may where be a some may be not so People are much .
Speaker #1: AI lot , investing in infrastructure portfolio . Our is well positioned . So we see that . So I would say , you know , SP becoming slightly was better I would say than we better .
Speaker #1: Not all the way back, but certainly, you know, something helped us in the quarter. Our growth on enterprise, as well as on AI-led infrastructure, was what we were expecting.
Anja Soderstrom: Okay, thank you. And you mentioned some new customers. Were they, did you displace someone with them or?
Anja Soderstrom: Okay, thank you. And you mentioned some new customers. Were they, did you displace someone with them or?
Speaker #4: Okay . Thank you . And you and you mentioned Were they customers . did you some new someone with them or display .
Dhrupad Trivedi: Yeah, I think so typically, in most of those cases, we would be displacing them. I think the only exception to that is, when we work with customers on some of our security solutions, they may not be using anything today, right? And they are implementing new security protocols or standards. So that, in that case, it's not replacing somebody, but outside of that, it would be certainly in a competitive situation.
Dhrupad Trivedi: Yeah, I think so typically, in most of those cases, we would be displacing them. I think the only exception to that is, when we work with customers on some of our security solutions, they may not be using anything today, right? And they are implementing new security protocols or standards. So that, in that case, it's not replacing somebody, but outside of that, it would be certainly in a competitive situation.
Speaker #1: Yeah , I think so . Typically in most of those cases we would be displacing them . I think . The only exception to that is when we work with on customers our security solutions , some of they may not be using anything today .
Speaker #1: Right . And they are implementing new security standards so that protocols or in that not case , it's replacing somebody . But outside of that , it would certainly in a be situation competitive
Anja Soderstrom: Okay. And is it, like one specific competitor you're replacing, or is it more broadly, and has it changed at all, recently, the competitive landscape?
Anja Soderstrom: Okay. And is it, like one specific competitor you're replacing, or is it more broadly, and has it changed at all, recently, the competitive landscape?
Speaker #4: is it like And one specific you're replacing or is competitor broadly and has it changed at all recently ? The competitive landscape .
Dhrupad Trivedi: No, so I would say no, no real change in the landscape, right? As we have talked about in the past, right, on enterprise side and security side, it's the same competitive landscape. I think we just continue to work at improving our solutions and be more in tune with customer needs. So I think as that is better aligned, we are seeing better opportunities as well.
Dhrupad Trivedi: No, so I would say no, no real change in the landscape, right? As we have talked about in the past, right, on enterprise side and security side, it's the same competitive landscape. I think we just continue to work at improving our solutions and be more in tune with customer needs. So I think as that is better aligned, we are seeing better opportunities as well.
Speaker #1: and be more in customer needs . as So I that better aligned , is we are seeing better opportunities as .
Anja Soderstrom: Okay, and just one more from me. If I heard you right, there was an uptick in the CapEx spend. What's driving that, and how should we think about that for 2026?
Anja Soderstrom: Okay, and just one more from me. If I heard you right, there was an uptick in the CapEx spend. What's driving that, and how should we think about that for 2026?
Speaker #4: And just Okay .
Speaker #4: If I heard you one more for right , uptick in the there was an spend . What's driving that and how should we think about that for 2026 ?
Dhrupad Trivedi: ... Sure, yeah. So I think, you know, if you kind of look at our trend, there was a little bit uptick in CapEx in Q4. There's two real drivers to it. I think one of it is related to our need to invest in some of the back-end infrastructure. So when we, you know, acquire a company like ThreadX, and we are offering some more services, what that translates to is not necessarily cost from a traditional sense, but on data hosting services, data centers, SOC, and doing our security right, to strengthen our own security operations and so forth. So some of that investment is really around enabling the solutions that are helping our solutions be more relevant to customers in terms of either hosted solutions or back-end infrastructure. So a lot of that is in IT.
Dhrupad Trivedi: ... Sure, yeah. So I think, you know, if you kind of look at our trend, there was a little bit uptick in CapEx in Q4. There's two real drivers to it. I think one of it is related to our need to invest in some of the back-end infrastructure. So when we, you know, acquire a company like ThreadX, and we are offering some more services, what that translates to is not necessarily cost from a traditional sense, but on data hosting services, data centers, SOC, and doing our security right, to strengthen our own security operations and so forth.
Speaker #1: So I think , you know , if Sure . kind of look at Yeah . our you trend , a little in uptick CapEx in Q4 .
Speaker #1: There's two , two real drivers to it . I is think one of it related our to invest in some of the back end So when , you know , acquire company like we and we thread infrastructure .
Speaker #1: offering some more services . What that translates to is not necessarily from a cost traditional sense , but on hosting the services , data centers , SOC and security right strengthen our own security And so forth .
Dhrupad Trivedi: So some of that investment is really around enabling the solutions that are helping our solutions be more relevant to customers in terms of either hosted solutions or back-end infrastructure. So a lot of that is in IT. And then some part of it is, as we are, you know, in the early stage with customers doing demos and POCs on AI infrastructure, obviously we are investing a little bit of that CapEx in new kinds of processors, chips, GPUs, and things like that.
Speaker #1: So to operations . investment really around is enabling the solutions that are helping our more relevant to solutions be customers in terms of either hosted solutions or back end infrastructure .
Speaker #1: So a lot of that is in it . And then part of some it is , as we you know , in are , with the early stage customers doing POCs on infrastructure , obviously we and are investing a little bit of that demos CapEx in processors and chips of GPUs and things like that .
Dhrupad Trivedi: And then some part of it is, as we are, you know, in the early stage with customers doing demos and POCs on AI infrastructure, obviously we are investing a little bit of that CapEx in new kinds of processors, chips, GPUs, and things like that.
Michael Romanelli: Okay, thank you. That was all for me.
Anja Soderstrom: Okay, thank you. That was all for me.
Speaker #4: Okay . Thank you . That for me was all .
Speaker #4: Okay . Thank you . That for me was all
Dhrupad Trivedi: Thank you, Anja.
Dhrupad Trivedi: Thank you, Anja.
Operator: The next question comes from Hamed Khorsand with BWS Financial. Please proceed.
Operator: The next question comes from Hamed Khorsand with BWS Financial. Please proceed.
Speaker #1: .
Speaker #3: from The next with financial , please proceed question comes .
Hamed Khorsand: Hi, could you just walk through your, you know, your guidance a bit here? This is the first time you've been willing to provide any kind of guidance, this specific, in, like, 2, 3 years. How are you seeing that visibility? Is, is it enterprise, the service provider? And how certain are you that this is going to actually be there compared to 2, 3 years ago when you stopped giving guidance?
Hamed Khorsand: Hi, could you just walk through your, you know, your guidance a bit here? This is the first time you've been willing to provide any kind of guidance, this specific, in, like, 2, 3 years. How are you seeing that visibility? Is, is it enterprise, the service provider? And how certain are you that this is going to actually be there compared to 2, 3 years ago when you stopped giving guidance?
Speaker #5: Hi . you Could just walk through your your guidance a bit here the first time you've just of to guidance , AI provide the specific in like 2 or 3 years .
Speaker #5: How are you seeing that visibility? Is it service and provider? How certain are you that this is going to actually be there compared to two or three years ago, when you stopped giving guidance?
Dhrupad Trivedi: Yeah. No, I think that's a good question. I think, you know, if you look at how kind of the environment has evolved and our products and business has evolved over the last two, three years, certainly, right, we were much more exposed to just the SP or the traditional SP spending cycle, which is, CapEx cyclic and CapEx intensive, and so harder to predict over long periods of time. What we did guide even the last three years, as you know, Hamed, was delivering on the gross margin and EBITDA percent, but not as much on top line, because that-- because of the level of variability with everything going on, right, with macro as well as micro.
Dhrupad Trivedi: Yeah. No, I think that's a good question. I think, you know, if you look at how kind of the environment has evolved and our products and business has evolved over the last two, three years, certainly, right, we were much more exposed to just the SP or the traditional SP spending cycle, which is, CapEx cyclic and CapEx intensive, and so harder to predict over long periods of time.
Speaker #1: Yeah , no , I think that's a good question . I think , you know , if you look how at environment evolved and products has business has evolved over the last 2 or 3 years Right .
Speaker #1: were much more , certainly . We to just the SP or exposed the traditional SP spending cycle , which is CapEx , cyclic and intensive .
Speaker #1: CapEx And so harder to predict over periods of time . long What guide last three you know , Hamid we did years , as delivering on the gross margin and EBITDA percent , but not as much on top line because because of the level of that variability with everything going on , right with macro as well as micro .
Dhrupad Trivedi: What we did guide even the last three years, as you know, Hamed, was delivering on the gross margin and EBITDA percent, but not as much on top line, because that-- because of the level of variability with everything going on, right, with macro as well as micro. So, as we see the last few quarters, I think, we have continued to make the base of our revenue more, durable.
Dhrupad Trivedi: So, as we see the last few quarters, I think, we have continued to make the base of our revenue more, durable. And as we are getting more of that from enterprise or large enterprise, as well as SP, as well as AI spending, I think in an aggregate, we think we can sustain kind of the momentum where we are, where, you know, we just finished the year at 11% year-over-year growth. So we feel that, based on the visibility we have with a 6- to 9-month cycle, and more diversified exposure across these markets, that's, that's all it is, right? But our fundamental outlook of saying, you know, EBITDA 26% to 28%, gross margin 80% to 82%, and EPS growing year-over-year, has not changed. I've given that guidance every year, right? So.
Speaker #1: So as we see the last few quarters , I we have continued to the base of our revenue think more make durable . are we And getting more of that from large enterprise , as as well SP , as well as AI spending , I an think in enterprise or we aggregate think we can sustain kind of the momentum where where , you just finished know , we at 11% year over year growth .
Dhrupad Trivedi: And as we are getting more of that from enterprise or large enterprise, as well as SP, as well as AI spending, I think in an aggregate, we think we can sustain kind of the momentum where we are, where, you know, we just finished the year at 11% year-over-year growth. So we feel that, based on the visibility we have with a 6- to 9-month cycle, and more diversified exposure across these markets, that's, that's all it is, right? But our fundamental outlook of saying, you know, EBITDA 26% to 28%, gross margin 80% to 82%, and EPS growing year-over-year, has not changed. I've given that guidance every year, right? So.
Speaker #1: the year So we we are , feel that based on the visibility we have with a and cycle more markets diversified , that's that's all it is , right ?
Speaker #1: But our outlook of saying fundamental 26 to 28% gross margin, 80 to 82%, and EPS growing year over year changed, given that I've given guidance every year.
Speaker #1: Right . So has not .
Hamed Khorsand: Okay, great. And my other question was related to your APJ performance. Was that country specific, or was that multiple countries?
Hamed Khorsand: Okay, great. And my other question was related to your APJ performance. Was that country specific, or was that multiple countries?
Speaker #5: Okay , great . And my other question related to the your app performance . Was that country specific or was that multiple countries .
Dhrupad Trivedi: Yeah, no, I would say that majority of it was related to Japan, and I think it's heavily related to the environment there with the low GDP, concern over what, you know, tariff environment could mean, and therefore large SPs as well as enterprise holding off on investment. So I think we certainly are not seeing us losing share, but we are certainly seeing depressed spending in line with, you know, all the macro news you would see out of Japan. Outside of Japan, I think we were fine. It was not that negative. Probably close to company average.
Dhrupad Trivedi: Yeah, no, I would say that majority of it was related to Japan, and I think it's heavily related to the environment there with the low GDP, concern over what, you know, tariff environment could mean, and therefore large SPs as well as enterprise holding off on investment. So I think we certainly are not seeing us losing share, but we are certainly seeing depressed spending in line with, you know, all the macro news you would see out of Japan. Outside of Japan, I think we were fine. It was not that negative. Probably close to company average.
Speaker #1: No Yeah . , I would that majority of it was say related to Japan . And I think heavily it's the environment there .
Speaker #1: Concern with the low, over what a tariff environment could mean. Therefore, large ISPs as well as enterprise are holding off on investment.
Speaker #1: think So I we are not certainly seeing losing share . us certainly But we are depressed with all the macro news you would see out of , outside of Japan .
Speaker #1: I think we we were fine . It was were not that negative . Probably close to company average .
Hamed Khorsand: Okay. Thank you.
Hamed Khorsand: Okay. Thank you.
Speaker #5: Okay . Thank you
Dhrupad Trivedi: No problem. Thank you, Hamed.
Dhrupad Trivedi: No problem. Thank you, Hamed.
Speaker #5: .
Operator: Again, if you have a question or a comment, please press star one on your touchtone phone. The next question comes from Michael Romanelli with Mizuho. Please proceed.
Operator: Again, if you have a question or a comment, please press star one on your touchtone phone. The next question comes from Michael Romanelli with Mizuho. Please proceed.
Speaker #1: Ahmed .
Speaker #3: Again , if you have a or
Speaker #3: comment , please star one on your question phone . The next from Michael comes press with Romanelli Mizuho . Please proceed .
Speaker #3: touchtone
Michael Romanelli: Yeah, hi. Thanks for taking the question. So, you know, enterprise revenue growth was 8% this quarter, obviously much improved from the 10% decline reported last quarter. I guess, did you, you know, close any notable deals that perhaps pushed from Q3? And, you know, I guess going forward and, you know, in relation to the, you know, 10% to 12% growth outlook for 2026, so how should we be thinking about enterprise business growth for the full year?
Michael Romanelli: Yeah, hi. Thanks for taking the question. So, you know, enterprise revenue growth was 8% this quarter, obviously much improved from the 10% decline reported last quarter. I guess, did you, you know, close any notable deals that perhaps pushed from Q3? And, you know, I guess going forward and, you know, in relation to the, you know, 10% to 12% growth outlook for 2026, so how should we be thinking about enterprise business growth for the full year?
Speaker #6: Thanks taking the question . So
Speaker #6: revenue
Speaker #6: was growth 8% this quarter . Obviously much improved from the 10% decline reported last spending quarter , you close any deals notable that push I guess .
Speaker #6: Was growth 8% this quarter? Obviously, that's much improved from the 10% decline reported last spending quarter. Did you close any notable deals that pushed, perhaps, from— and, you know, I guess the three?
Speaker #6: Q Did , you know , in and going the , you know , 10 to 12% growth outlook 2026 , how for thinking Hi .
Speaker #6: About enterprise business growth for the full year forward?
Dhrupad Trivedi: Yeah. So I think, good question, Michael, and I think if you remember last call, right, I talked about the fact that, because we are early in expanding our footprint into that marketplace, it's going to be a little bit choppy and therefore, even the last quarter, we were highlighting focusing on the TTM growth versus every quarter, right? So every quarter could be up or down, but on a trailing twelve-month basis, we are confident that that segment will grow at least at the fleet average of 10 to 12%.
Dhrupad Trivedi: Yeah. So I think, good question, Michael, and I think if you remember last call, right, I talked about the fact that, because we are early in expanding our footprint into that marketplace, it's going to be a little bit choppy and therefore, even the last quarter, we were highlighting focusing on the TTM growth versus every quarter, right? So every quarter could be up or down, but on a trailing twelve-month basis, we are confident that that segment will grow at least at the fleet average of 10 to 12%.
Speaker #1: Yeah . So I think good question , Michael . think if you remember last I talked about the fact that call , right , Thank you because we are in early expanding our into that marketplace it's going be a little
Speaker #1: choppy and bit therefore even the question last quarter , we were , it's focusing on the DTM growth versus quarter . Right ? So every every be up quarter could or down .
Speaker #1: But on trailing And I basis are that confident that segment will grow , we at footprint of 10 to 12% .
Michael Romanelli: ... Okay, got it. That's helpful. And then, you know, as you know, part of your prepared remarks, Dhrupad, you know, you highlighted a few encouraging wins in Q4, which was, you know, great to hear. You know, I guess, like, overall, how would you characterize, you know, net new enterprise logo activity this quarter? And, you know, as part of the 2026 guide, like, you know, obviously, you have a very large install base, but, you know, how should we be thinking about, you know, your ability to sign up, you know, many more new enterprise customers? Thanks.
Michael Romanelli: ... Okay, got it. That's helpful. And then, you know, as you know, part of your prepared remarks, Dhrupad, you know, you highlighted a few encouraging wins in Q4, which was, you know, great to hear. You know, I guess, like, overall, how would you characterize, you know, net new enterprise logo activity this quarter? And, you know, as part of the 2026 guide, like, you know, obviously, you have a very large install base, but, you know, how should we be thinking about, you know, your ability to sign up, you know, many more new enterprise customers? Thanks.
Speaker #6: Okay .
Speaker #6: Got it helpful . And That's know , as you know , part of your . prepared did you know you highlight remarks , a few encouraging in wins which you know , hear .
Speaker #6: Got it helpful . And That's know , as you know , part of your . prepared did you know you highlight remarks , a few encouraging in wins which you know , hear . great to was , You know , Q4 , guess overall , how would you characterize , you know , net new I ?
Speaker #6: Got it helpful . And That's know , as you know , part of your . prepared did you know you highlight remarks , a few encouraging in wins which you know , hear . great to was , You know , Q4 , guess overall , how would you characterize , you know , net new I the fleet And , you know , as part of then , you activity 2026 like , guide , you know , obviously , if a very large .
Speaker #6: But , you know , how should we be thinking install base about , you know , your ability to sign up many new customers ?
Dhrupad Trivedi: Yeah. No, it's a great question, and I think, you know, what I would highlight again, right, is, as a company based on our technology and value proposition, we are not really focused on an SMB market orientation. So, really, we are not looking at how many hundred customers we acquire every quarter and how many churn and everything else, right? So our goal is really to continue to get new customers, typically in large enterprise, who operate complex network with thousands of users, mission-critical environments, right? So, in that context, obviously, acquiring new customers is very, very important, but it's very different than a typical SMB model. And, you know, we don't need to acquire hundreds of customers to get that growth, right?
Dhrupad Trivedi: Yeah. No, it's a great question, and I think, you know, what I would highlight again, right, is, as a company based on our technology and value proposition, we are not really focused on an SMB market orientation. So, really, we are not looking at how many hundred customers we acquire every quarter and how many churn and everything else, right?
Speaker #6: Thanks
Speaker #1: great question . it's a And I
Speaker #1: know . Yeah . , what I would think , you highlight again , right , No , company on our based value technology and as a we are not really focused on an SMB proposition , market is orientation .
Speaker #1: So are not looking how many really we customers we acquire every hundred at and how many churn and everything else . Right ? So our goal is to continue to customers , typically in large new enterprise , who get operate complex network with thousands of users .
Dhrupad Trivedi: So our goal is really to continue to get new customers, typically in large enterprise, who operate complex network with thousands of users, mission-critical environments, right? So, in that context, obviously, acquiring new customers is very, very important, but it's very different than a typical SMB model. And, you know, we don't need to acquire hundreds of customers to get that growth, right?
Speaker #1: Mission critical Right . So in environments . that obviously context , new acquiring very very , important But it's different than a typical SMB .
Speaker #1: Now, we model we don't need hundreds of customers to acquire to get growth, right? So we absolutely have a good amount of new adding customers.
Dhrupad Trivedi: So, we absolutely have a good pipeline of adding new customers, but even once we have those customers, typically, we continue to expand and sell them more product categories as well over time. So, so that's an important metric for us, but I would say, it's different than maybe an SMB-oriented business.
Dhrupad Trivedi: So, we absolutely have a good pipeline of adding new customers, but even once we have those customers, typically, we continue to expand and sell them more product categories as well over time. So, so that's an important metric for us, but I would say, it's different than maybe an SMB-oriented business.
Speaker #1: But once we have those even customers pipeline , typically we continue to expand and sell more them product categories as well over So time .
Speaker #1: that's an so important metric for us . But I would it's it's different than maybe an say . .
Michael Romanelli: Got it. Okay. Thank you.
Michael Romanelli: Got it. Okay. Thank you.
Speaker #6: Okay . Got it . Thank you
Speaker #6: Okay . Got it . Thank you . Michael
Dhrupad Trivedi: Thanks. Thank you, Michael.
Dhrupad Trivedi: Thanks. Thank you, Michael.
Speaker #1: Thanks . Thank you .
Operator: The next question comes from Hendi Susanto with Gabelli Funds. Please proceed.
Operator: The next question comes from Hendi Susanto with Gabelli Funds. Please proceed.
Speaker #3: next question comes The from Henry Susanto with Gabelli Funds . Please proceed .
Hendi Susanto: Good. Good evening.
Hendi Susanto: Good. Good evening.
Speaker #7: Good evening .
Dhrupad Trivedi: Hi, Andy.
Dhrupad Trivedi: Hi, Andy.
Hendi Susanto: Hi, Dhrupad. You highlighted how AI can drive growth in three categories, like modernization, network capacity, and security. How do you rank among those three?
Hendi Susanto: Hi, Dhrupad. You highlighted how AI can drive growth in three categories, like modernization, network capacity, and security. How do you rank among those three?
Speaker #1: Andy .
Speaker #7: You Hi . Dhrupad . how AI can drive growth
Speaker #7: in three categories highlighted like . modernization , network capacity , security How do you and rank among those three ?
Dhrupad Trivedi: Yes, I think, you know, obviously, core of our growth comes from capacity, whether it's existing or new or new build-outs or growing, as the network. Security is not decoupled from capacity, right? So obviously, our goal was to get security-led revenue to be 65% of total, and we are there, and, you know, we'll stay there. And we are confident we can continue doing that. Modernization, I think, there's two aspects to it. One is, when people are modernizing applications and use cases, then obviously we are relevant. The second part of it is where modernization means somebody has to build a brand-new 5G network. Obviously, that's not a growth we bet upon, and we will benefit when that happens more, when somebody builds, you know, kind of a greenfield network.
Dhrupad Trivedi: Yes, I think, you know, obviously, core of our growth comes from capacity, whether it's existing or new or new build-outs or growing, as the network. Security is not decoupled from capacity, right? So obviously, our goal was to get security-led revenue to be 65% of total, and we are there, and, you know, we'll stay there.
Speaker #1: Yeah , so I think , you know , obviously core of our from capacity . comes Whether it's existing or new or new build or outs growing growth as the security is not as network decoupled from Right ?
Speaker #1: So our goal obviously was to capacity . security led revenue to be And we know , we'll And , you 65% of total .
Dhrupad Trivedi: And we are confident we can continue doing that. Modernization, I think, there's two aspects to it. One is, when people are modernizing applications and use cases, then obviously we are relevant. The second part of it is where modernization means somebody has to build a brand-new 5G network. Obviously, that's not a growth we bet upon, and we will benefit when that happens more, when somebody builds, you know, kind of a greenfield network.
Speaker #1: and we are are there . confident we can continue doing modernization . I think there's two aspects to it . One is stay are people modernizing applications use cases , then obviously we are relevant .
Speaker #1: second part of it The is where and means somebody has to build a brand 5G new network a that's . Obviously , growth .
Speaker #1: bet upon , and we will when that happens . When somebody We builds , you know , kind of a greenfield network . But in the current economic environment , don't count upon we benefit more as a major And our goal is to growth driver .
Dhrupad Trivedi: But in the current economic environment, we don't count upon that as a major driver, and our goal is to find growth independent of that, and if that happens, then that's good, right? So it's really around working with our customers on their current networks, capacity, and security while enabling them with more and more capabilities, and then obviously benefiting more than that if they build new networks.
Dhrupad Trivedi: But in the current economic environment, we don't count upon that as a major driver, and our goal is to find growth independent of that, and if that happens, then that's good, right? So it's really around working with our customers on their current networks, capacity, and security while enabling them with more and more capabilities, and then obviously benefiting more than that if they build new networks.
Speaker #1: independent of that . find And if that happens , then that's good , right ? So it's really around working with our customers their on current networks and capacity and security .
Speaker #1: While enabling more them with And then obviously benefiting capabilities . more than that , if and more networks
Hendi Susanto: Yeah. Thank you, Dhrupad. Then one more question.
Hendi Susanto: Yeah. Thank you, Dhrupad. Then one more question. There's a growing conversation about Agentic AI as a growth opportunity in 2026, like an early stage of growth, of Agentic AI. I would like to check in, in case you have seen some use cases emerging for Agentic AI application and how we should be thinking about A10 Networks in that context.
Speaker #7: Thank you Rupert .
Dhrupad Trivedi: Yes.
Hendi Susanto: There's a growing conversation about Agentic AI as a growth opportunity in 2026, like an early stage of growth, of Agentic AI. I would like to check in, in case you have seen some use cases emerging for Agentic AI application and how we should be thinking about A10 Networks in that context.
Speaker #7: And then one more question . . There's a Yeah . growing conversation about Agentic AI as a growth opportunity in 2026 . Like an early stage of growth of AI .
Speaker #7: Agentic would like to check in in case seen you have some
Speaker #7: I cases emerging Agentic for AI application and how we should be about A10 Networks thinking in that context .
Dhrupad Trivedi: Sure. Yeah. So I think, you know, like all of... You know, we hear from a lot of the people in industry and others as well, right, that it's early in the cycle. Where we are engaged with customers really is, you know, while we do have AI products per se, where we are much more engaged with customers is, how do they plan to use AI for their business goals and what they do with it? So, you know, some of the examples we have talked about is for our kind of service provider-type customers, in the next 2 to 3 years, having an ability to do predictive analytics and getting predictive insights into their network and performance and capacity planning, is, you know, important to them.
Dhrupad Trivedi: Sure. Yeah. So I think, you know, like all of... You know, we hear from a lot of the people in industry and others as well, right, that it's early in the cycle. Where we are engaged with customers really is, you know, while we do have AI products per se, where we are much more engaged with customers is, how do they plan to use AI for their business goals and what they do with it?
Speaker #1: So I Sure . Yeah . think , you know , like like all of , you know , we hear from a lot of the people in industry and well , right ?
Speaker #1: That others, as it’s early in the cycle where we are engaged with, really, customers, is, you know, while we do have AI products, per se, where we— they build— are much more engaged with customers, is how they plan to use AI, do business goals, and what they— it.
Dhrupad Trivedi: So, you know, some of the examples we have talked about is for our kind of service provider-type customers, in the next 2 to 3 years, having an ability to do predictive analytics and getting predictive insights into their network and performance and capacity planning, is, you know, important to them.
Speaker #1: So do with some of the examples we have talked about is our kind of service provider customers in the type next 2 to 3 years , an ability to do having predictive analytics and getting predictive insights into network and performance and capacity planning is is , you know , important to still them .
Dhrupad Trivedi: It's still early because companies are themselves figuring out how to take advantage of AI. Second is, of course, right, as we talked about, as companies use more AI, whether it's a, you know, on-site model or a global model, they will have new kinds of traffic, new kinds of threat, and new capabilities needed to manage those, and particularly with low latency and more distributed networks. So, in that environment, obviously, we are working with customers also on how to continue to improve their, you know, security posture, with new types of traffic, and also enabling the architecture where they can manage that kind of traffic better on their networks.
Dhrupad Trivedi: It's still early because companies are themselves figuring out how to take advantage of AI. Second is, of course, right, as we talked about, as companies use more AI, whether it's a, you know, on-site model or a global model, they will have new kinds of traffic, new kinds of threat, and new capabilities needed to manage those, and particularly with low latency and more distributed networks.
Speaker #1: It's early because companies are figuring out themselves take advantage of AI how to . Second is of course , right . As about companies use more talked whether it's , you know site , on model or a global model , they new kinds of their traffic , new we threat and new capabilities needed manage those .
Speaker #1: And latency and to distributed network . So more in with low that environment , obviously , we are working with also customers on how to continue to improve their , you know , security particularly posture with types of new traffic and also enabling the they architecture where can of traffic better on their manage that kind .
Dhrupad Trivedi: So, in that environment, obviously, we are working with customers also on how to continue to improve their, you know, security posture, with new types of traffic, and also enabling the architecture where they can manage that kind of traffic better on their networks.
Hendi Susanto: Okay. Thank you so much, Dhrupad.
Hendi Susanto: Okay. Thank you so much, Dhrupad.
Speaker #7: Okay . Thank you so much . Dhrupad
Speaker #7: Okay . Thank you so much . Dhrupad .
Dhrupad Trivedi: Thank you, Andy.
Dhrupad Trivedi: Thank you, Andy.
Speaker #1: Andy Thank you .
Operator: We have reached the end of the question and answer session, and I will now turn the call over to Dhrupad Trivedi for closing remarks.
Operator: We have reached the end of the question and answer session, and I will now turn the call over to Dhrupad Trivedi for closing remarks.
Speaker #3: We have reached the end of the question and answer session, and now I will turn the call over to Dhrupad Trivedi for closing remarks.
Dhrupad Trivedi: Thank you. Thank you to all of our employees, customers, and shareholders for joining us today and for your continued support. I'm increasingly confident in our strategic orientation with security and AI infrastructure spending patterns. Thank you for your time and attention.
Dhrupad Trivedi: Thank you. Thank you to all of our employees, customers, and shareholders for joining us today and for your continued support. I'm increasingly confident in our strategic orientation with security and AI infrastructure spending patterns. Thank you for your time and attention.
Speaker #1: Thank you . And thank you to all of our , customers and shareholders for joining us today and employees for your continued . I'm increasingly support confident in our strategic orientation with security and AI infrastructure spending patterns .
Speaker #1: Thank you for your time and .
Operator: This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.
Operator: This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.
