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ATEN, A10 Networks Inc.

Communications Equipment consumer brand Cyclical

We are a global provider of secure application and network infrastructure solutions that enable enterprises and service providers to deliver high-performance, reliable, and protected digital services across on-premises, hybrid cloud, and distributed environments.

Our solutions are designed to operate in mission-critical environments where availability, scalability, low latency, and security are essential.

We provide integrated capabilities spanning application delivery, traffic management, distributed denial of service ("DDoS") protection, application and application programming interfaces ("API") security, and centralized management.

Latest annual: FY2025 10-K

ATEN · A10 Networks Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$291M

+11.0% YoY · 5% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $299M 5-yr avg $267M

Gross margin 79% 5-yr avg 80%

Operating margin 17.2% 5-yr avg 16.1%

ROIC 11% 5-yr avg 85%

Owner-earnings margin 17% 5-yr avg 21%

Free cash flow margin 17% 5-yr avg 21%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is Products (58%) and Services (42%).
Situation: Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle: Gross margin has run about 78% and operating margin about 7.9% through the cycle, a wide spread between price and the cost of what it sells — whether that advantage is durable pricing power or a margin that can erode is the question the record is for. The operating margin has swung widely — from −12% to 19% — on a steadier 78% gross margin, so what moves it sits below the gross line, in operating spend and one-off charges more than in the cost of the product itself. Stock-based pay runs about 6.5% of sales, a real and recurring claim on owners that the GAAP margin understates. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has run high across the record (median 38%, above 15% in 6 of 10 years), though buybacks and expensed R&D and brands shrink the capital base, so the figure overstates the underlying economics. The steadier read is owner earnings: roughly 16% of revenue reaches owners as cash, though it swings. Whether these returns reflect real pricing power or an accounting artifact is the judgment the 10-K is for.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Revenue spreads across 2 lines, the largest Products at 58%.

Revenue by product line, FY2025

Products58%$167M
Services42%$123M

By geographyUnited States55%APJ24%EMEA15%Americas excluding United States5%

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$227M	$235M	$232M	$213M	$226M	$250M	$280M	$252M	$262M	$291M	$299M	RevenueRevenue
76%	77%	78%	77%	78%	79%	80%	81%	80%	79%	79%	Gross marginGross mgn
12%	12%	17%	11%	10%	9%	8%	9%	10%	10%	10%	SG&A / revenueSG&A/rev
27%	27%	28%	29%	26%	22%	21%	22%	22%	24%	24%	R&D / revenueR&D/rev
($21M)	($10M)	($28M)	($17M)	$18M	$33M	$53M	$39M	$44M	$47M	$51M	Operating incomeOp. inc.
−9.0%	−4.4%	−11.9%	−8.0%	7.9%	13.4%	18.9%	15.4%	16.8%	16.2%	17.2%	Operating marginOp. mgn
($22M)	($11M)	($28M)	($18M)	$18M	$95M	$47M	$40M	$50M	$42M	$45M	Net incomeNet inc.
—	—	—	—	7%	—	11%	9%	14%	20%	21%	Effective tax rateTax rate
											Cash flow & returns
$19M	$14M	($3M)	($426K)	$55M	$50M	$66M	$45M	$90M	$85M	$70M	Operating cash flowOp. cash
$8M	$9M	$8M	$10M	$11M	$9M	$7M	$9M	$11M	$15M	$15M	DepreciationDeprec.
$16M	($649K)	$5K	($9M)	$14M	($68M)	($2M)	($19M)	$12M	$8M	($9M)	Working capital & otherWC & other
$5M	$6M	$3M	$4M	$4M	$5M	$11M	$11M	$12M	$20M	$19M	CapexCapex
2.1%	2.4%	1.2%	2.0%	1.6%	2.1%	3.9%	4.3%	4.7%	6.9%	6.2%	Capex / revenueCapex/rev
$14M	$9M	($5M)	($5M)	$52M	$45M	$59M	$34M	$78M	$70M	$51M	Owner earningsOwner earn.
6.1%	3.6%	−2.4%	−2.2%	22.9%	18.0%	20.9%	13.4%	29.9%	24.1%	17.2%	Owner earnings marginOE mgn
$14M	$9M	($5M)	($5M)	$52M	$45M	$55M	$34M	$78M	$65M	$51M	Free cash flowFCF
6.1%	3.6%	−2.4%	−2.2%	22.9%	18.0%	19.7%	13.4%	29.9%	22.3%	17.2%	Free cash flow marginFCF mgn
$4M	$0	$0	—	—	—	—	$0	$0	$19M	$0	AcquisitionsAcquis.
—	—	—	$0	$0	$4M	$16M	$18M	$18M	$17M	$17M	Dividends paidDiv. paid
$2M	$3M	$0	$0	$33M	$18M	$79M	$16M	$30M	$69M	—	BuybacksBuybacks
-30%	-16%	-35%	-21%	50%	26%	157%	65%	105%	72%	11%	ROICROIC
-27%	-11%	-27%	-16%	15%	45%	26%	19%	22%	20%	20%	Return on equityROE
—	—	—	−16%	15%	44%	17%	11%	14%	12%	12%	Retained to equityRetained/eq
											Balance sheet
$114M	$131M	$128M	$130M	$158M	$185M	$234M	$216M	$296M	$685M	$370M	Cash & investmentsCash+inv
$61M	$48M	$54M	$54M	$51M	$62M	$73M	$74M	$77M	$62M	$69M	ReceivablesReceiv.
$16M	$18M	$18M	$22M	$21M	$22M	$20M	$24M	$22M	$18M	$20M	InventoryInvent.
$10M	$9M	$8M	$8M	$5M	$7M	$7M	$7M	$13M	$12M	$14M	Accounts payablePayables
$67M	$57M	$64M	$68M	$67M	$77M	$86M	$91M	$86M	$68M	$75M	Operating working capitalOper. WC
$197M	$204M	$215M	$221M	$242M	$284M	$257M	$272M	$307M	$476M	$480M	Current assetsCur. assets
$101M	$93M	$97M	$98M	$108M	$116M	$118M	$111M	$124M	$134M	$129M	Current liabilitiesCur. liab.
1.9×	2.2×	2.2×	2.3×	2.2×	2.4×	2.2×	2.4×	2.5×	3.6×	3.7×	Current ratioCurr. ratio
$1M	$1M	$1M	$1M	$1M	$1M	$1M	$1M	$1M	$15M	$15M	GoodwillGoodwill
$217M	$225M	$236M	$274M	$291M	$393M	$369M	$390M	$433M	$630M	$634M	Total assetsAssets
—	—	—	—	—	—	—	—	$0	$219M	$219M	Total debtDebt
—	—	—	—	—	—	—	—	($296M)	($466M)	($151M)	Net debt / (cash)Net debt
-48.5×	-64.0×	-214.6×	-72.1×	17733.0×	—	—	—	—	—	—	Interest coverageInt. cov.
$83M	$98M	$104M	$109M	$116M	$209M	$181M	$208M	$232M	$212M	$221M	Shareholders’ equityEquity
7.4%	7.3%	7.3%	7.8%	5.5%	5.8%	4.8%	5.6%	6.5%	6.9%	6.3%	Stock comp / revenueSBC/rev
											Per share
65.7M	70.1M	72.9M	76.1M	80.0M	80.0M	77.8M	75.5M	75.3M	73.6M	72.9M	Shares out (diluted)Shares
$3.46	$3.36	$3.19	$2.79	$2.82	$3.12	$3.61	$3.33	$3.48	$3.95	$4.11	Revenue / shareRev/sh
$-0.34	$-0.15	$-0.38	$-0.23	$0.22	$1.19	$0.60	$0.53	$0.67	$0.57	$0.61	EPS (diluted)EPS
$0.21	$0.12	$-0.08	$-0.06	$0.65	$0.56	$0.76	$0.44	$1.04	$0.95	$0.70	Owner earnings / shareOE/sh
$0.21	$0.12	$-0.08	$-0.06	$0.65	$0.56	$0.71	$0.44	$1.04	$0.88	$0.70	Free cash flow / shareFCF/sh
—	—	—	$0.00	$0.00	$0.05	$0.20	$0.24	$0.24	$0.24	$0.24	Dividends / shareDiv/sh
$0.07	$0.08	$0.04	$0.06	$0.04	$0.06	$0.14	$0.14	$0.16	$0.27	$0.25	Cap. spending / shareCapex/sh
$1.26	$1.40	$1.43	$1.43	$1.45	$2.61	$2.33	$2.75	$3.08	$2.87	$3.03	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+1.5%/yr	+7.0%/yr
Owner earnings / share	+18.2%/yr	+8.0%/yr
EPS	—	+20.8%/yr
Capital spending / share	+15.6%/yr	+43.8%/yr
Book value / share	+9.6%/yr	+14.7%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

74Mpeak FY2021

ROIC

72%low FY2018

Gross margin

79%low FY2016

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$70Mowner earningsvs.$42Mnet incomelow FY2018

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business earned $70M of owner earnings, the operating cash left after the $15M it takes just to hold its position. It put $5M more into growth; free cash flow, after that spending, was $65M.

Reported net income$42M

Owner earnings$70M · 24% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$42M	$50M	$40M	$47M	$95M
Depreciation & amortizationnon-cash charge added back	+$15M	+$11M	+$9M	+$7M	+$9M
Stock-based compensationreal costnon-cash, but a real cost	+$20M	+$17M	+$14M	+$13M	+$14M
Working capital & othertiming of cash in and out, other non-cash items	+$8M	+$12M	−$19M	−$2M	−$68M
Cash from operations	$85M	$90M	$45M	$66M	$50M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$15M	−$12M	−$11M	−$7M	−$5M
Owner earnings	$70M	$78M	$34M	$59M	$45M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$5M	—	—	−$3M	—
Free cash flow	$65M	$78M	$34M	$55M	$45M
Owner-earnings marginowner earnings ÷ revenue	24%	30%	13%	21%	18%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $15M, roughly its depreciation, the rate its assets wear out). The other $5M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $20M), owner earnings is nearer $50M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Material weakness in financial controls

“We have identified significant deficiencies and material weaknesses in the past that has resulted in a restatement of certain of our financial reports.”

The figures below are only as sound as the controls that produced them. read the note →

Will it survive?

Can it pay its interest? —

No meaningful interest burden

Little or no interest expense reported

What this means
Little or no interest expense reported, the business isn't leaning on lenders to operate.
How heavy is the debt, net of cash? +$466M

Net cash

Cash $378M + ST investments $307M − debt $219M

What this means
Cash and short-term investments exceed every dollar of debt by $466M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 117d

Long (60+ days)

DSO 78 + DIO 110 − DPO 71 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital 26%

Very high (≥25%) through the cycle

10-yr median, range -35%–157%; 72% latest = NOPAT $38M ÷ invested capital $52M

Industry peers: median 2%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 72% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 13%

Solid through the cycle

10-yr median margin, range -2%–30%; latest $70M = operating cash $85M − maintenance capex $15M

Industry peers: median 8%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 24% of revenue this year, a 13% median across 10 years. Treating stock comp as the real expense it is (less $20M of SBC) leaves $50M.
Are earnings backed by cash? 2.01×

Cash-backed

Cash from ops $85M ÷ net income $42M

In the filing’s words The filing discloses a material weakness in its financial controls — the reported numbers here, and the record built on them, are only as reliable as the controls that produced them.

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 123%

Returned more than it generated

Dividends + buybacks $86M ÷ Owner Earnings $70M

What this means
The company returned more than it generated: against $70M of Owner Earnings, $86M (123%) went back to shareholders, $17M dividends, $69M buybacks — the excess came from the balance sheet or borrowing, not the year's operations. Net of $20M stock comp, the real buyback was about $49M. Sustained, that pattern draws down cash or adds debt; the net-debt line above shows where it stands.
Investing or harvesting? 1.35×

Expanding

Capex $20M ÷ depreciation $15M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $291M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 3.56×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $219M vs $342M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 4 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · 5 of 10 yrs

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.61/share (latest year $0.59), the averaged base the calculator's gate runs on, and book value is $2.94/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 6 of 10

What this means
Lost money in 4 year(s), look at what happened there before trusting the average.
Operating margin −8% → 16% (3-yr avg ends)

In the filing’s words The margin widened even though the filing names price competition — the gain came from volume or cost, not pricing power. Read where.

What this means
Through the cycle the operating margin widened — about −8% early to 16% lately, median 8% — pricing power intact or improving.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Owner earnings growth +23%/yr

What this means
Owner earnings grew about 23% a year over the record.
Worst year 2018 · −11.9% op. margin

What this means
Operations went underwater in 2018, understand why before trusting the good years.
Share count +1.3%/yr

What this means
The share count is rising, dilution works against you on a per-share basis.
Dividend record rising

What this means
Paid and raised the dividend across the record, the continuity Graham prized.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Named as a competitive risk

Its FY2025 10-K names artificial intelligence as a competitive threat.

“In addition, the emergence of new cloud infrastructures and AI or other tools may enable new companies to compete with our business.”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$480M

Cash & short-term investments$370M
Receivables$69M
Inventory$20M
Other current assets$21M

Current liabilities$129M

Accounts payable$14M
Other current liabilities$115M

Current ratio3.71×all current assets ÷ what's due · Graham looked for 2×

Quick ratio3.56×stricter: inventory excluded

Cash ratio2.86×strictest: cash alone against what's due

Working capital$350Mthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+13.4%the freshest read on whether the business is still growing

Current ratio, recent quarters2.4× → 3.7×

Deeper floors

Tangible book value$200Mequity stripped of goodwill & intangibles

Net current asset value$66MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$227M$8M of it operating leases

Deferred revenue$147Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $421M of operating cash; how management split it reads as a cash returner, paying most of what it earns straight back to owners.

Reinvested$81M · 19%
Dividends$73M · 17%
Buybacks$250M · 59%
Retained (debt / cash)$18M · 4%

Returned to owners$323M
92% of the owner earnings the business produced over the span, $73M as dividends and $250M as buybacks.
Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span cash and short-term investments rose $255M.
Average price paid for buybacks$12.36
Across the years where the filing reports a share count, 20M shares were bought for $245M, about $12.36 each. Year to year the price paid ranged from $6.64 (2020) to $18.77 (2025); its heaviest year, 2022, paid $13.01 ($79M).
Net change in share count11.0%
The diluted count rose from 66M to 73M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record$0.24/sh
Paid in 5 of the years on record. It was never cut over the span.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Dr. Trivedi	$3.1M	$7.3M	$45M
2022	Dr. Trivedi	$4.5M	$4.4M	$59M
2023	Dr. Trivedi	$4.6M	$2.5M	$34M
2024	Dr. Trivedi	$6.3M	$10.4M	$78M
2025	Dr. Trivedi	$7.0M	$6.6M	$70M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership1.2%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$20M
The slice of the business handed to employees in shares this year, 7% of revenue, equal to 42% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why A10 Networks Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

1 of the 4 tests turned up something to look into; the other 3 came back clean.

Look hereDid the share count rise anyway?11.0%
Diluted shares grew 11.0% over 2016–2025, even as the company spent $250M on buybacks. The repurchases were a treadmill: stock issued to staff outran them, so owners' slice still shrank. Read the buyback line beside this one, not on its own.

And these came back clean

Is it less profitable than it was?
Did reported profit become cash?
Did receivables and inventory outpace sales?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

How much of the revenue rides on one buyer?
≈$120M · 40% of revenue on the largest customers (TTM)
“During the years ended December 31, 2025, 2024 and 2023, purchases by our ten largest end-customers accounted for approximately 40%, 38% and 33% of our total revenue, respectively.”verify →
Which reported numbers are a judgment call?
Management names Revenue recognition as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Communications Equipment

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
EXTRExtreme Networks Inc.	$1.1B	56%	-0.2%	-0%	8%
NTGRNETGEAR Inc.	$700M	30%	3.1%	4%	3%
PARPAR Technology Corporation	$456M	22%	-15.1%	-8%	-8%
DGIIDigi International Inc.	$430M	53%	6.7%	5%	11%
ATENA10 Networks Inc.	$291M	78%	10.6%	38%	16%
QMCOQuantum Corporation	$280M	41%	-2.6%	—	-4%
MITKMitek Systems Inc.	$180M	—	7.3%	4%	20%
EVLVEvolv Technologies Holdings Inc.	$146M	34%	-154.2%	-81%	10%
Group median	—	41%	1.4%	4%	9%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what A10 Networks Inc. has delivered.

A10 Networks Inc.’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, A10 Networks Inc. earns about $46M on its 15.7% median owner-earnings margin. This year’s 24.1% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base Normalize · through-cycle ($46M) Net of stock comp (−$19M) Steady-state · maintenance capex ($55M)

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The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+9%/yr

Owner-earnings growth · ’16→’25+23%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $51M on 72M shares outstanding, per the 10-Q cover, as of 2026-05-04; net cash $151M. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($19M) runs well above depreciation ($15M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $55M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh ATEN against another business →

The owners of ATEN: the meeting and the votes →

Cite: Owner Scorecard, "A10 Networks Inc. (ATEN), the owner's record," https://ownerscorecard.com/c/ATEN, data as of 2026-07-09.

Manual order: ← ATEC its page in the Manual ATEX →

Industry order: ← ANET the Communications Equipment chapter AUDC →