Please note that with the exception of revenue, financial measures discussed today are on a non-GAAP basis, unless otherwise noted, and may have been adjusted to exclude certain charges. A10 continues to deliver top and bottom-line growth driven by the increasing relevance of our platform to the demands of next-generation networking. In June, we acquired TrojAI, an AI security company that helps organizations secure, test, and govern AI applications and agentic workflows. This acquisition adds two layers to our platform, red teaming, which uses AI to probe models and agents for vulnerabilities at build time, as well as real-time protection at runtime.
We generated 15.5% revenue growth in the second quarter on a year-over-year basis and 14.5% growth year to date. This marked our fourth quarter of double-digit growth in the last five. As a result, we have increased our full-year outlook to 12%-14% for the full year versus previous guidance of 10%-12%, reflecting continued confidence in the demand environment ahead. Through this period of improving demand, our operating discipline has remained constant.
We balance targeted investment with EPS expansion, and we delivered on both goals in the second quarter. Our goal is to convert growth into profitability and cash while continuing to invest in the technical capabilities this demand environment requires with earnings per share growth exceeding revenue growth. 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. Year to date, our revenue was $155.1 million, an increase of 14.5%.
| Metric | Period | Current guidance |
|---|---|---|
| Revenue growth | FY2026 | 12%-14% |
| EPS growth | FY2026 | 14%-16% |
| Free cash flow | FY2026 | Expected to grow year-over-year from ~$65M in 2025 |
| Service provider (ex-Microsoft) | FY2026 | Slightly better than 2025 (North America improving, Japan flat-to-worse, Europe neutral) |
| Quarterly dividend | Q3 2026 | $0.06 per share (payable September 1, 2026) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +15.5% to $80.1M | Fourth double-digit-growth quarter in five, driven by security-led product growth and enterprise strength amid AI infrastructure build-outs. |
| Product revenue | +~25% to $49M (61% of revenue) | New-business lead indicator; commercial/product enhancements and longer-term AI roadmap conversations broadened engagement. |
| Service revenue | $31.1M (39% of revenue) | Recurring maintenance base; grows slower than product when new business is being won. |
| Enterprise vertical | 60% of Q2 revenue (~half on TTM) | Deliberate balanced-growth strategy; enterprise and service provider increasingly face the same AI-driven workloads. |
| Americas region | 68% of global revenue | Deliberate focus on the Americas driven by AI infrastructure build-outs and enterprise strength. |
| Non-GAAP operating margin | 25.5% | Balanced targeted investment in AI/security innovation with EPS expansion; opex of $43.9M. |
| Non-GAAP EPS | $0.25 diluted vs $0.21 | Net income of $18.7M on 75.7M diluted shares; EPS growth outpacing revenue growth. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Next-generation networking with integrated security | Advanced traffic management foundation | AI is erasing the distinction between enterprise and service-provider networks; A10 positions one architecture, one operating model, and one security framework for both, with AI-driven burst/high-volume traffic and new threat vectors as multi-year secular drivers. | — |
| Microsoft relationship expansion | Multi-year customer categorized as service provider | Expanded to a long-term partnership with mutual performance commitments and deeper operational/product integration; no pre-buys, and new enterprise-categorized business is now being done with Microsoft on a different product set (no historical revenue reclassified). | — |
| AI security via TrojAI | Integrating security into offerings | TrojAI adds red-teaming (build-time) and runtime protection for AI models and agents; near term it strengthens the bundle, but the roadmap points to native AI-security solutions that can be sold standalone within one to two years. | — |
| Enterprise pipeline and on-prem AI | Building enterprise commercial capabilities | Pipeline quality and size improved versus 90 days ago with six-to-nine-month enterprise sales cycles expected to convert in late 2026/early 2027; on-prem and sovereign AI (enterprises running their own models) is a two-to-three-year demand driver given A10's any-form-factor delivery. | — |
| Supply chain and memory costs | — | Management has stabilized memory-cost pressure over the last couple of quarters and prioritizes customer satisfaction and on-time delivery, expressing confidence in delivering EPS even as constraints are expected to persist for many quarters. | — |