Revenue Growth

FY 2025

no prior guidance [N/A]

high single-digit revenue growth "

no prior guidance

Adjusted EBITDA Margin

FY 2025

no prior guidance [N/A]

26% to 28% adjusted EBITDA margins " "

no prior guidance

Gross Margin

FY 2025

no prior guidance [N/A]

80% to 82% gross margins "

no prior guidance

Quarterly Dividend

FY 2025

no prior guidance [N/A]

$0.06 per share quarterly cash dividend "

no prior guidance

AI Adoption

Q1 2025 emphasized AI driving data center capacity and enterprise growth through increased demand and early adoption of AI-specific solutions. " " Q4 2024 highlighted AI as a catalyst for growth with a focus on AI data center development and AI-oriented products. " " Q3 2024 discussed integrating AI capabilities across the product portfolio to enhance cybersecurity. "

Q2 2025 stressed strategic alignment with AI trends, significant investments in AI infrastructure, and noted that while current revenue is driven by data center build-outs, AI-specific solutions are expected to contribute more from 2026 onward. " " "

Consistent focus with refined revenue timeline and a stronger emphasis on AI integration.

Cybersecurity Portfolio Expansion

Q1 2025 detailed the acquisition of ThreatXProtect to enhance API and WAP security and expand the cybersecurity portfolio. " Q4 2024 focused on an expanding cybersecurity offering with integrated products addressing bot protection and DDoS mitigation. " " Q3 2024 emphasized a broader security-led expansion with the integration of AI into cybersecurity solutions. "

Q2 2025 further emphasized integrating ThreatX into the portfolio, highlighting ease of setup and alignment with evolving network architectures to address emerging cybersecurity threats. "

Steady expansion with an enhanced focus on portfolio integration and maintaining a strong cybersecurity position.

Service Provider Spending Trends

Q1 2025 noted 3% year-over-year service provider growth alongside ongoing volatility. " " Q4 2024 reported normalization in spending patterns with improved pipelines and a mix of new build-outs and capacity orders. " " Q3 2024 expressed cautious optimism despite short-term volatility and highlighted signs of resumed investments. " "

Q2 2025 reported improved global service provider spending driven by data center expansions and AI infrastructure investments, with notable normalization in customer spending patterns. " " "

Transitioning from high volatility to a more stable and normalized spending environment.

Enterprise Revenue Growth and Shifting Demand

Q1 2025 showed robust enterprise revenue growth (up to 18% YoY) with evolving demand factors including AI-driven projects. " " Q4 2024 noted moderate growth (approximately 8% in Q4) with increasing investments in AI initiatives. " " Q3 2024 indicated modest growth (3% YoY) while emphasizing large enterprise priorities. " "

Q2 2025 presented steady enterprise performance with an 8% YoY growth on a trailing twelve-month basis, highlighting a strategic focus on large enterprise segments and a shift toward AI data center investments. "

A shift toward more balanced growth with a sharper focus on AI infrastructure and key enterprise segments.

Supply Chain, FX, and Tariff/Procurement Risks

Q1 2025 described active management of supply chain diversification, FX hedging, and caution over tariff pressures impacting pricing. " " " Q4 2024 primarily addressed tariff and procurement headwinds. " Q3 2024 did not mention these topics [N/A].

Q2 2025 did not include any discussion on supply chain, FX, or tariff/procurement risks [N/A].

Disappeared from discussion in Q2, suggesting either reduced concern or effective management of these risks.

R&D Investment Pressure and Margin Concerns

Q1 2025 noted increased R&D expenditures to drive innovation while balancing margin targets, with efforts to keep adjusted EBITDA margins within 26%-28%. " " Q4 2024 reported robust margins (gross margin around 80.7%) despite significant R&D investments in cybersecurity and AI. " " Q3 2024 highlighted a 15% YoY increase in R&D spend while maintaining strong margin performance. " "

Q2 2025 did not explicitly mention R&D investment pressure or margin concerns; however, it reported stable margins within the targeted range (80%-82% gross) and dynamic resource allocation to adapt to market conditions. " "

Less emphasis in Q2, indicating sustained confidence in margin management despite ongoing R&D investments.

Product Revenue Momentum and Customer Renewal/Expansion

Q1 2025 reported product revenue of $36 million (54% of total revenue) along with new product introductions that lengthened service contracts. " Q4 2024 saw product revenue of $43.3 million (58% of total revenue) with a mix of new build and capacity orders and an average contract term of about two years. " " " Q3 2024 noted $36.9 million in product revenue with a 6% increase in deferred revenue, indicating steady renewals. "

Q2 2025 recorded product revenue of $39.2 million, marking the best product revenue growth in over five years, with renewal rates on eligible contracts remaining above 90% and continued expansion of the customer base. " "

Consistently strong product momentum with improved customer retention and robust growth indicators.

Emerging North American Telco CapEx Opportunities

Q1 2025 indirectly addressed North American service provider dynamics with modest growth. " Q4 2024 described an improving pipeline with increased new build orders from North American service providers. " " " Q3 2024 discussed cautious optimism amid volatility while noting resumed investments in AI and cloud initiatives. " " "

Q2 2025 highlighted emerging opportunities in North American telco CapEx, noting that if market interest rates move, telcos may invest more heavily, particularly in AI data center projects, thus creating tailwinds. "

Growing focus with more detailed discussion in Q2, suggesting increasing opportunities amid improving market conditions.

New Cybersecurity Capabilities

Q1 2025 introduced new capabilities through the ThreatXProtect acquisition, expanding AI-enabled cybersecurity and enhancing the A10 Defend portfolio. " Q4 2024 focused on developing bot management, DDoS mitigation, and AI-product solutions geared for GPU-based infrastructure. " " " Q3 2024 emphasized integrating AI-enabled protection into an expanded cybersecurity framework. "

Q2 2025 emphasized integrated solutions that combine bot and DDoS protection with AI-enabled features, along with highlighting award-winning AI products that strengthen the company’s competitive cybersecurity posture. " " "

Consistent innovation with sharper AI integration and enhanced product differentiation across periods.

Strategic Investments and Capital Deployment

Q1 2025 detailed significant M&A activity with the ThreatXProtect acquisition, aggressive share repurchases (repurchasing $47 million worth of shares), convertible note issuances, and dividend payments. " " Q4 2024 discussed ongoing R&D investments, share buybacks (with $44.2 million remaining under authorization), and a quarterly dividend. " " Q3 2024 outlined balanced capital deployment with cautious M&A exploration, share repurchases, and increased R&D spending. " " "

Q2 2025 continued a strong focus on strategic investments through the integration of ThreatX, executed a share repurchase of $3.9 million (with remaining repurchase capacity), approved a quarterly cash dividend, and maintained robust R&D investments targeted at AI and cybersecurity. " "

Sustained emphasis on balanced capital deployment—maintaining a focus on M&A, share repurchase, and R&D—demonstrating continuity with incremental refinements in investment strategy.