A10 Networks, Inc. Q2 2025 results

Please note, with the exception of revenue, financial measures discussed today are on a non-GAAP basis and have been adjusted to exclude certain charges. A10 Networks continues to deliver growth and profitability in the second quarter. Total revenue grew 11% year-over-year, with enterprise up 8% and service provider revenue increasing 14%. We will continue to navigate choppy market conditions while focusing on execution and aligning investments with long-term growth expectations and business model goals.

Our service provider revenue during the period benefited from improved demand from data center expansions and AI infrastructure investments. Our EBITDA as % of revenue grew year-over-year, even as we aggressively invest in new areas. Our deliberate focus on aligning A10 Networks' growth and investment strategy with structural tailwinds of AI and cybersecurity continues to pay dividends. Our focus on systematically growing the enterprise market adds another growth vector.

The business continues to effectively navigate short-term market volatility, delivering consistent profitability and returning capital to shareholders. As markets evolve, we are well-positioned to outpace the market in terms of revenue growth while increasing our profitability in line with our business model. Product revenue for the quarter was $39.2 million, representing 56% of total revenue. As expected, we see strong uptake of our cutting-edge portfolio, evidenced by continued product revenue growth, and renewal rates on eligible contracts remain above 90%.