A10 Networks, Inc.
For the period ended Sep 30, 2025. Filed Nov 4, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 4, 2025
ATEN$24.76+9.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0001580808-25-000099
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0001580808-25-000111
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 101 previous paragraphs and 101 current paragraphs.
55 unchanged; 39 reworded; 7 added; 7 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
We are a global provider of secure application and network solutions that protect, optimize, and scale business-critical systems across on-premises, hybrid cloud, and edge environments. Our network infrastructure and security products are designed to enable large enterprises, service providers, and cloud platforms worldwide to deliver performance, reliability, and protection against cyber threats, while preparing their networks for the demands of AI and next-generation applications.
Current report
A10’s portfolio brings together secure application delivery, DDoS and API protection, and unified management into a cohesive platform that integrates with existing network architectures and leading public cloud environments. We deliver these capabilities through flexible deployment models, including software, cloud-native, and hardware form factors that are tailored to the scale and requirements of our customers. We generate revenue primarily from the sale of our secure networking and cybersecurity solutions and related support services. These offerings are delivered through a combination of direct and channel-based sales, with most customers purchasing maintenance and support alongside their initial deployment and renewing that support as contracts expire.
Current report
We continue to invest in innovation that strengthens our leadership in secure infrastructure, expands our cybersecurity capabilities, and positions A10 at the intersection of network performance, protection, and AI-driven workloads. Our strategy is grounded in disciplined capital allocation and a commitment to deliver durable revenue growth, expanding recurring revenue, and strong cash flow generation.
Current report
Products revenue increased $6.2 million, or 17%, during thethree months ended September 30, 2025 compared to the same period of 2024, as a result of an increase in demand from our service provider customers in the Americas region.
Current report
Services revenue increased $1.7 million, or 6%, during thethree months ended September 30, 2025, compared to the same period of 2024, as a result of an increase in demand from our service provider customers in the Americas and EMEA regions.
Current report
Nine Months Ended September 30, 2025 and 2024
Current report
Products revenue increased $21.8 million, or 23%, during thenine months ended September 30, 2025 compared to the same period of 2024, as a result of an increase in demand from our service provider customers in the Americas and EMEA regions.
Removed paragraphs (7)
Previous report
We are a leading provider of secure application solutions and services that enable a new generation of intelligently connected companies with the ability to continuously improve cyber protection and digital responsiveness across dynamic Information Technology (“IT”) and network infrastructures. Our product portfolio seeks to address many of the cyber protection challenges and solution requirements. The portfolio consists of network infrastructure and security products. The infrastructure portfolio powers the delivery of internet services and applications while the security products protect applications, application programming interfaces (“APIs”), infrastructure and enterprises from cyber-attacks. Our security suite is known as A10 Defend. In addition, we have an intelligent management and automation tool known as A10 Control (formally Harmony Controller), which provides intelligent management, automation and analytics for secure application delivery in multi-cloud environments to help simplify operations.
Previous report
Our secure infrastructure solutions include; Thunder Application Delivery Controller (“ADC”), Thunder Carrier Grade Networking (“CGN”), Thunder SSL Insight (“SSLi”) and Thunder Convergent Firewall (“CFW”). Our security products include; A10 Defend Threat Control, A10 Defend Orchestrator, A10 Defend Detector, A10 Defend Mitigator and A10 Defend ThreatX Protect. Our solutions are available in a variety of form factors, such as optimized hardware appliances, bare metal software, containerized software, virtual appliances and cloud-native software. Our customers include leading service providers (cloud, telecommunications, multiple system operators, cable), government organizations, and enterprises.
Previous report
We intend to continue to invest for long-term growth. We have invested and expect to continue to invest in our product development efforts to deliver new products and additional features in our current products to address customer needs. In addition, we may expand our global sales and marketing organizations, expand our distribution channel programs and increase awareness of our solutions on a global basis. Our investments in growth in these areas may affect our short-term profitability.
Previous report
Products revenue increased $9.6 million, or 33%, during the three months ended June 30, 2025 compared to the same period of 2024, as a result of an increase in demand from both our enterprise and service provider customers in the Americas and APJ regions.
Previous report
Six Months Ended June 30, 2025 and 2024
Previous report
Products revenue increased $15.6 million, or 26%, during the six months ended June 30, 2025 compared to the same period of 2024, as a result of an increase in demand from both our service provider and enterprise customers in the Americas and EMEA regions.
Previous report
Services revenue decreased $0.8 million, or 1%, during the six months ended June 30, 2025, compared to the same period of 2024, as a result of a decrease in demand from our service provider customers in the APJ region.
Reworded paragraphs (39)
Previous wording
Our end-customers operate in a variety of industries, including telecommunications, technology, industrial, retail, financial, gaming, education and government. Since inception, our customer base has grown rapidly.
Current wording
We sell our solutions globally to service providers and enterprises who are looking to modernize and secure their digital infrastructure. Our service provider customers rely on scalable, efficient, and secure networks to deliver connectivity, cloud and other services that may generate revenue to their customers. Our enterprise customers require secure application delivery, AI-ready infrastructure, and are increasingly concerned about the landscape of cybersecurity threats across their complex networks. Our end-customers operate in a variety of industries, including telecommunications, technology, industrial, retail, financial, gaming, education and government. Since inception, our customer base has grown significantly.
Previous wording
We sell substantially all of our solutions through our high-touch sales organization as well as distribution channels, including distributors, value-added resellers and system integrators, and fulfill nearly all orders globally through such resellers. We believe this sales approach allows us to obtain the benefits of channel distribution, such as expanding our market coverage, while still maintaining face-to-face relationships with our end-customers. We outsource the manufacturing of our hardware products to original design manufacturers. We perform quality assurance and testing at our San Jose, Taiwan and Japan distribution centers, as well as at our manufacturers’ locations.
Current wording
We operate worldwide across the Americas, EMEA, and Asia Pacific, supported by a hybrid go-to-market model that combines a direct, high-touch sales organization with a broad ecosystem of distributors, resellers, and system integrators. We believe this sales approach allows us to obtain the benefits of channel distribution, such as expanding our market coverage, while still maintaining face-to-face relationships with our end-customers. We outsource the manufacturing of our hardware products to original design manufacturers. We perform quality assurance and testing at our San Jose, Taiwan and Japan distribution centers, as well as at our manufacturers’ locations.
Previous wording
During the three months ended June 30, 2025, (i) 59% of our total revenue was generated from the Americas region, of which 55% was generated from the United States and 4% was generated from the Americas-other, (ii) 26% from the APJ region and (iii) 15% from the EMEA region. During the three months ended June 30, 2024, (i) 51% of our total revenue was generated from the Americas region, of which 44% was generated from the United States and 7% was generated from the Americas-other, (ii) 32% from the APJ region and (iii) 17% from the EMEA region. During the six months ended June 30, 2025, (i) 55% of our total revenue was generated from the Americas region, of which 50% was generated from the United States and 5% was generated from the Americas-other, (ii) 27% from the APJ region and (iii) 18% from the EMEA region. During thesix months ended June 30, 2024,(i) 48% of our total revenue was generated from the Americas region, of which 41% was generated from the United States and 7% was generated from the Americas-other, (ii) 37% from the APJ region and (iii) 15% from the EMEA region. One of our priorities is to strengthen our sales efforts in North America. During the three months ended June 30, 2025 and 2024, our enterprise customers accounted for 40% and 44% of our total revenue, respectively, and our service provider customers accounted for 60% and 56% of our total revenue, respectively. During both the six months ended June 30, 2025 and 2024, our enterprise customers accounted for 41% of our total revenue and our service provider customers accounted for 59% of our total revenue.
Current wording
During the three months ended September 30, 2025, (i) 65% of our total revenue was generated from the Americas region, of which 61% was generated from the United States and 4% was generated from the Americas-other, (ii) 22% of our total revenue was generated from the APJ region and (iii) 12% of our total revenue was generated from the EMEA region. During the three months ended September 30, 2024, (i) 51% of our total revenue was generated from the Americas region, of which 45% was generated from the United States and 6% was generated from the Americas-other, (ii) 34% of our total revenue was generated from the APJ region and (iii) 14% of our total revenue was generated from the EMEA region. During the nine months ended September 30, 2025, (i) 59% of our total revenue was generated from the Americas region, of which 54% was generated from the United States and 5% was generated from the Americas-other, (ii) 25% of our total revenue was generated from the APJ region and (iii) 16% of our total revenue was generated from the EMEA region. During the nine months ended September 30, 2024, (i) 49% of our total revenue was generated from the Americas region, of which 43% was generated from the United States and 7% was generated from the Americas-other, (ii) 36% of our total revenue was generated from the APJ region and (iii) 15% of our total revenue was generated from the EMEA region. One of our priorities is to strengthen our sales efforts in North America. During the three months ended September 30, 2025 and 2024, our enterprise customers accounted for 36% and 45% of our total revenue, respectively, and our service provider customers accounted for 64% and 55% of our total revenue, respectively. During the nine months ended September 30, 2025 and 2024, our enterprise customers accounted for 39% and 43% of our total revenue, respectively, and our service provider customers accounted for 61% and 57% of our total revenue, respectively.
Previous wording
As a result of the nature of our target market and the current stage of our development, a substantial portion of our revenue comes from a limited number of large customers, including service providers and enterprise customers, in any period. Purchases by our ten largest end-customers accounted for 46% and 35% of our total revenue for the three months ended June 30, 2025 and 2024, respectively, and accounted for 42% and 37% of our total revenue for the six months ended June 30, 2025 and 2024, respectively. Sales to these large end-customers have typically been characterized by large but irregular purchases with long sales cycles. The timing of these purchases and the delivery of the purchased products are difficult to predict. Consequently, any acceleration or delay in anticipated product purchases by or deliveries to our largest customers could materially impact our revenue and operating results in any quarterly period. This may cause our quarterly revenue and operating results to fluctuate from quarter to quarter and make them difficult to predict.
Current wording
As a result of the nature of our target market and the current stage of our development, a substantial portion of our revenue comes from a limited number of large customers, including service providers and enterprise customers, in any period. Purchases by our ten largest end-customers accounted for 51% and 44% of our total revenue for the three months ended September 30, 2025 and 2024, respectively, and accounted for 45% and 37% of our total revenue for the nine months ended September 30, 2025 and 2024, respectively. Sales to these large end-customers have typically been characterized by large but irregular purchases with long sales cycles. The timing of these purchases and the delivery of the purchased products are difficult to predict. Consequently, any acceleration or delay in anticipated product purchases by or deliveries to our largest customers could materially impact our revenue and operating results in any quarterly period. This may cause our quarterly revenue and operating results to fluctuate from quarter to quarter and make them difficult to predict.
Previous wording
As of June 30, 2025, we had $252.9 million of cash and cash equivalents and $114.5 million of marketable securities. Cash provided by operating activities was $39.4 million during the six months ended June 30, 2025, compared to $44.7 million in the same period of 2024.
Current wording
As of September 30, 2025, we had $86.6 million of cash and cash equivalents and $284.3 million of marketable securities. Cash provided by operating activities was $62.2 million during the nine months ended September 30, 2025, compared to $64.8 million in the same period of 2024.
Previous wording
A summary of our condensed consolidated statements of operations for the three and six months ended June 30, 2025 and 2024 is as follows (dollars in thousands):
Current wording
A summary of our condensed consolidated statements of operations for thethree and nine months ended September 30, 2025 and 2024 is as follows (dollars in thousands):
Previous wording
Total net revenue increased $9.3 million, or 15%, during the three months ended June 30, 2025, compared to the same period of 2024. Changes in revenue were due primarily to (i) an increase of $10.3 million in the Americas region, comprised of an increase of $11.6 million in the United States and a decrease of $1.3 million in Americas-other, (ii) an increase of $0.3 million in the EMEA region, and (iii) a decrease of $1.3 million in the APJ region. The overall increase in revenue was attributable to a $8.2 million increase in revenue from service provider customers and a $1.1 million increase in revenue from enterprise customers during the three months ended June 30, 2025 compared to the same period of 2024. Products revenue increased $9.6 million, of which the Americas region increased $10.7 million and the APJ region increased $0.4 million, partially offset by a decrease of $0.4 million in the EMEA region for the three months ended June 30, 2025, compared to the same period of 2024. Services revenue decreased $0.4 million, of which the APJ region decreased $1.8 million, partially offset by increases of $0.7 million in the Americas region and $0.7 million in the EMEA region for the three months ended June 30, 2025, compared to the same period of 2024.
Current wording
Total net revenue increased $8.0 million, or 12%, during thethree months ended September 30, 2025, compared to the same period of 2024. Changes in revenue were due primarily to (i) an increase of $14.6 million in the Americas region, comprised of an increase of $15.1 million in the United States and a decrease of $0.6 million in Americas-other, (ii) a decrease of $6.3 million in the APJ region, and (iii) a decrease of $0.3 million in the EMEA region. The overall increase in revenue was attributable to a $11.1 million increase in revenue from service provider customers, partially offset by a $3.1 million decrease in revenue from enterprise customers during thethree months ended September 30, 2025 compared to the same period of 2024. Products revenue increased $6.2 million, of which the Americas region increased $11.8 million, partially offset by a decrease of $5.2 million in the APJ region and a decrease of $0.4 million in the EMEA region for thethree months ended September 30, 2025, compared to the same period of 2024. Services revenue increased $1.7 million, of which the Americas region increased $2.7 million, partially offset by a decrease of $1.1 million in the APJ region for thethree months ended September 30, 2025, compared to the same period of 2024.
Previous wording
During the six months ended June 30, 2025, $74.7 million, or 55% of total revenue, was generated from the Americas region, which represents a 28% increase in revenue compared to the same period of 2024. The increase was primarily due to higher products revenue due to an increase in demand from both our service provider and enterprise customers in the Americas region.
Current wording
During thethree months ended September 30, 2025, $48.8 million, or 65% of total revenue, was generated from the Americas region, which represents a 43% increase in revenue compared to the same period of 2024. The increase was primarily due to higher products revenue due to an increase in demand from our service provider customers in the Americas region.
Previous wording
During the three months ended June 30, 2025, $17.9 million, or 26% of total revenue, was generated from the APJ region, which represents a 7% decrease compared to the same period of 2024. The decrease was primarily due to lower services revenue due to a decrease in demand from our service provider customers in the APJ region.
Current wording
During thethree months ended September 30, 2025, $16.7 million, or 22% of total revenue, was generated from the APJ region, which represents a 27% decrease compared to the same period of 2024. The decrease was primarily due to lower services revenue due to a decrease in demand from both our enterprise and service provider customers in the APJ region.
Previous wording
During the three months ended June 30, 2025, $10.3 million, or 15% of total revenue, was generated from the EMEA region, which represents an 3% increase compared to the same period of 2024. The increase was primarily due to higher services revenue due to an increase in demand from our enterprise customers in the EMEA region.
Current wording
During thethree months ended September 30, 2025, $9.2 million, or 12% of total revenue, was generated from the EMEA region, which represents an 3% decrease compared to the same period of 2024. The decrease was primarily due to lower products revenue due to a decrease in demand from our enterprise customers in the EMEA region.
Previous wording
Total net revenue increased $14.7 million, or 12%, during the six months ended June 30, 2025, compared to the same period of 2024. Changes in revenue were due primarily to (i) an increase of $16.4 million in the Americas region, comprised of an increase of $18.6 million in the United States and a decrease of $2.2 million in Americas-other, (ii) an increase of $6.1 million in the EMEA region, and (iii) a decrease of $7.8 million in the APJ region. The overall increase in revenue was attributable to a $9.6 million increase in revenue from service provider customers and a $5.2 million increase in revenue from enterprise customers during the six months ended June 30, 2025 compared to the same period of 2024. Products revenue increased $15.6 million, of which the Americas region increased $14.4 million and the EMEA region increased $5.4 million, partially offset by a decrease of $4.2 million in the APJ region for the six months ended June 30, 2025, compared to the same period of 2024. Services revenue decreased $0.8 million, of which the APJ region decreased $3.5 million, partially offset by increases of $2.0 million in the Americas region and $0.8 million in the EMEA region for the six months ended June 30, 2025, compared to the same period of 2024.
Current wording
Total net revenue increased $22.7 million, or 12%, during thenine months ended September 30, 2025, compared to the same period of 2024. Changes in revenue were due primarily to (i) an increase of $30.9 million in the Americas region, comprised of an increase of $33.7 million in the United States and a decrease of $2.8 million in Americas-other, (ii) an increase of $5.8 million in the EMEA region, and (iii) a decrease of $14.1 million in the APJ region. The overall increase in revenue was attributable to a $20.6 million increase in revenue from service provider customers and a $2.1 million increase in revenue from enterprise customers during thenine months ended September 30, 2025 compared to the same period of 2024. Products revenue increased $21.8 million, of which the Americas region increased $26.2 million and the EMEA region increased $5.0 million, partially offset by a decrease of $9.5 million in the APJ region for thenine months ended September 30, 2025, compared to the same period of 2024. Services revenue increased $0.9 million, of which the Americas region increased $4.7 million and the EMEA region increased $0.8 million, partially offset by a decrease of $4.6 million in the APJ region for thenine months ended September 30, 2025, compared to the same period of 2024.
Previous wording
Services revenue decreased $0.4 million, or 1%, during the three months ended June 30, 2025, compared to the same period of 2024, as a result of a decrease in demand from our service provider customers in the APJ region.
Current wording
Services revenue increased $0.9 million, or 1%, during thenine months ended September 30, 2025, compared to the same period of 2024, as a result of an increase in demand from our enterprise customers in the Americas and EMEA regions.
Previous wording
During the three months ended June 30, 2025, $41.2 million, or 59% of total revenue, was generated from the Americas region, which represents a 33% increase in revenue compared to the same period of 2024. The increase was primarily due to higher products revenue due to an increase in demand from our service provider customers in the Americas region.
Current wording
During thenine months ended September 30, 2025, $123.5 million, or 59% of total revenue, was generated from the Americas region, which represents a 33% increase in revenue compared to the same period of 2024. The increase was primarily due to higher products revenue due to an increase in demand from both our service provider and enterprise customers in the Americas region.
Previous wording
During the six months ended June 30, 2025, $36.6 million, or 27% of total revenue, was generated from the APJ region, which represents a 18% decrease compared to the same period of 2024. The decrease was primarily due to lower products and services revenue due to a decrease in demand from our enterprise and service provider customers in the APJ region.
Current wording
During thenine months ended September 30, 2025, $53.3 million, or 25% of total revenue, was generated from the APJ region, which represents a 21% decrease compared to the same period of 2024. The decrease was primarily due to lower products and services revenue due to a decrease in demand from both our enterprise and service provider customers in the APJ region.
Previous wording
During the six months ended June 30, 2025, $24.3 million, or 18% of total revenue, was generated from the EMEA region, which represents an 34% increase compared to the same period of 2024. The increase was primarily due to higher products revenue due to an increase in demand from both our service provider and enterprise customers in the EMEA region.
Current wording
During thenine months ended September 30, 2025, $33.4 million, or 16% of total revenue, was generated from the EMEA region, which represents an 21% increase compared to the same period of 2024. The increase was primarily due to higher products and services revenue due to an increase in demand from both our service provider and enterprise customers in the EMEA region.
Previous wording
Products cost of revenue increased 20.3% and 13.6% during the three and six months ended June 30, 2025, compared to the same periods of 2024, primarily due product and regional mix.
Current wording
Products cost of revenue increased 7.6% and 11.4% during thethree and nine months ended September 30, 2025, compared to the same periods of 2024, primarily due product and regional mix.
Previous wording
Services cost of revenue increased 23.9% and 28.2% during the three and six months ended June 30, 2025, compared to the same periods of 2024, primarily driven by an increase in personnel-related support costs and the mix of services delivered, which include technical support, training and service costs.
Current wording
Services cost of revenue increased 22.2% and 26.0% during thethree and nine months ended September 30, 2025, compared to the same periods of 2024, primarily driven by an increase in personnel-related support costs and the mix of services delivered, which include technical support, training and service costs.
Previous wording
Products gross margin increased 2.2% and 2.2% during the three and six months ended June 30, 2025, compared to the same periods of 2024, primarily due to product and regional mix.
Current wording
Products gross margin increased 1.6% and 2.0% during thethree and nine months ended September 30, 2025, compared to the same periods of 2024, primarily due to product and regional mix.
Previous wording
Services gross margin decreased 4.3% and 4.9% during the three and six months ended June 30, 2025, compared to the same periods of 2024, primarily driven by an increase in personnel-related support costs and the mix of services delivered, which include technical support, training and service costs.
Current wording
Services gross margin decreased 2.9% and 4.2% during thethree and nine months ended September 30, 2025, compared to the same periods of 2024, primarily driven by an increase in personnel-related support costs and the mix of services delivered, which include technical support, training and service costs.
Previous wording
Sales and marketing operating expenses increased $1.5 million, or 7.8%, in the three months ended June 30, 2025, compared to the same period in 2024, primarily due to increases in marketing expenses and personnel costs. Sales and marketing operating expenses decreased $0.2 million, or 0.4%, in the six months ended June 30, 2025, compared to the same period in 2024, primarily due to a decrease in personnel costs.
Current wording
Sales and marketing operating expenses increased $0.5 million, or 2.5%, in thethree months ended September 30, 2025, compared to the same period in 2024, and increased $0.4 million, or 0.6%, in thenine months ended September 30, 2025, compared to the same period in 2024, primarily due to an increase in personnel costs.
Previous wording
Research and development operating expenses increased $1.5 million, or 10.3%, in the three months ended June 30, 2025, compared to the same period in 2024, and increased $3.4 million, or 11.7%, in the six months ended June 30, 2025, compared to the same period in 2024, primarily due to an increase in personnel costs.
Current wording
Research and development operating expenses increased $2.6 million, or 16.8%, in thethree months ended September 30, 2025, compared to the same period in 2024, and increased $6.0 million, or 13.5%, in thenine months ended September 30, 2025, compared to the same period in 2024, primarily due to an increase in personnel costs.
Previous wording
General and administrative operating expenses increased $1.2 million, or 20.6%, in the three months ended June 30, 2025, compared to the same period in 2024, and increased $3.0 million, or 23.3%, in the six months ended June 30, 2025, compared to the same period in 2024, primarily due to an increase in professional services expense and personnel costs.
Current wording
General and administrative operating expenses increased $0.5 million, or 7.0%, in thethree months ended September 30, 2025, compared to the same period in 2024, and increased $3.4 million, or 17.8%, in thenine months ended September 30, 2025, compared to the same period in 2024, primarily due to an increase in professional services expense and personnel costs.
Previous wording
Interest income was $3.0 million and $1.8 million in the three months ended June 30, 2025 and 2024, respectively, and was $4.8 million and $3.4 million in the six months ended June 30, 2025 and 2024, respectively.
Current wording
Interest income was $3.4 million and $1.6 million in thethree months ended September 30, 2025 and 2024, respectively, and was $8.2 million and $5.1 million in thenine months ended September 30, 2025 and 2024, respectively.
Previous wording
Interest expense was $1.9 million and $2.2 million in the three and six months ended June 30, 2025, respectively, and was related to our outstanding 2030 Notes that were issued in March 2025. The Company recorded no interest expense in the three and six months ended June 30, 2024.
Current wording
Interest expense was $1.9 million and $4.1 million in the three and nine months ended September 30, 2025, respectively, and was related to our outstanding 2030 Notes that were issued in March 2025. The Company recorded no interest expense in the three and nine months ended September 30, 2024.
Previous wording
The Company recorded $0.5 million and $0.7 million of net gains in other income (expense) in the three and six months ended June 30, 2025, respectively, primarily from foreign currency exchange gains from fluctuations in the Japanese Yen versus the U.S. Dollar. The Company recorded $1.3 million and $3.6 million of net gains in other income (expense) in the three and six months ended June 30, 2024, respectively, primarily from foreign currency exchange gains from fluctuations in the Japanese Yen versus the U.S. Dollar and, to a lesser extent, net gains resulting from fair value adjustments on investments in publicly held equity securities. The Company had no investments in publicly held equity securities in the three and six months ended June 30, 2025.
Current wording
The Company recorded $0.5 million of net losses and $0.3 million of net gains in other income (expense) in thethree and nine months ended September 30, 2025, respectively, primarily from foreign currency exchange gains from fluctuations in the Japanese Yen versus the U.S. Dollar. The Company recorded $2.3 million and $5.9 million of net gains in other income (expense) in the three and nine months ended September 30, 2024, respectively, primarily from foreign currency exchange gains from fluctuations in the Japanese Yen versus the U.S. Dollar and, to a lesser extent, net gains resulting from fair value adjustments on investments in publicly held equity securities. The Company had no investments in publicly held equity securities in thethree and nine months ended September 30, 2025.
Previous wording
We recorded a provision for income taxes of $1.4 million and $1.5 million for the three months ended June 30, 2025 and 2024, respectively, and $2.3 million and $3.0 million in the six months ended June 30, 2025 and 2024, respectively. The Company’s income tax provisions for the three and six months ended June 30, 2025 and 2024 primarily consisted of U.S. federal and state taxes.
Current wording
We recorded a provision for income taxes of $1.8 million and $1.8 million for thethree months ended September 30, 2025 and 2024, respectively, and $4.1 million and $4.8 million in thenine months ended September 30, 2025 and 2024, respectively. The Company’s income tax provisions for thethree and nine months ended September 30, 2025 and 2024 primarily consisted of U.S. federal and state taxes.
Previous wording
As of June 30, 2025, we had cash and cash equivalents of $252.9 million, including $3.7 million held outside the United States in our foreign subsidiaries, and $114.5 million of marketable securities. We currently do not have any plans to repatriate our earnings from our foreign operations. As of June 30, 2025, we had working capital of $348.9 million, accumulated deficit of $20.3 million and total stockholders’ equity of $204.0 million. Our marketable securities are highly liquid and are classified as available for sale should the Company decide to quickly raise cash at any time in the future.
Current wording
As of September 30, 2025, we had cash and cash equivalents of $86.6 million, including $4.2 million held outside the United States in our foreign subsidiaries, and $284.3 million of marketable securities. We currently do not have any plans to repatriate our earnings from our foreign operations. As of September 30, 2025, we had working capital of $340.0 million, accumulated deficit of $8.1 million and total stockholders’ equity of $206.2 million. Our marketable securities are highly liquid and are classified as available for sale should the Company decide to quickly raise cash at any time in the future.
Previous wording
The Board has authorized various stock repurchase programs from time to time, including most recently, a twelve-month $50 million program approved November 7, 2023 (the “2023 Program”), a $50 million program approved November 7, 2024 (the “2024 Program”) and a $75 million program approved May 1, 2025 (the “2025 Program”). Under all programs, repurchased shares are held in treasury at cost. The Company’s stock repurchase programs do not obligate us to acquire any specific number of shares. Shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act. During the year ended December 31, 2024, the Company repurchased 2.1 million shares for a total cost of $28.9 million under the 2023 and 2024 Programs. Through June 30, 2025, the Company had repurchased 2.5 million shares for a total cost of $47.5 million under the 2024 and 2025 Programs.
Current wording
The Board has authorized various stock repurchase programs from time to time, including most recently, a twelve-month $50 million program approved November 7, 2023 (the “2023 Program”), a $50 million program approved November 7, 2024 (the “2024 Program”) and a $75 million program approved May 1, 2025 (the “2025 Program”). Under all programs, repurchased shares are held in treasury at cost. The Company’s stock repurchase programs do not obligate us to acquire any specific number of shares. Shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act. During the year ended December 31, 2024, the Company repurchased 2.1 million shares for a total cost of $28.9 million under the 2023 and 2024 Programs. During the nine months ended September 30, 2025, the Company had repurchased 3.3 million shares for a total cost of $62.0 million under the 2024 and 2025 Programs.
Previous wording
In October 2021, the Board approved the initiation of a regular quarterly cash dividend on our common stock. The Company paid cash dividends of $0.06 per share outstanding, for a total of $4.3 million and $8.8 million in the three and six months ended June 30, 2025 as a return of capital. The next dividend, in the amount of $0.06 per share, will be paid on September 2, 2025 to stockholders of record on August 15, 2025 as a return of capital. We currently anticipate that we will continue to pay comparable quarterly cash dividends in the future. However, the payment, amount and timing of future dividends remain within the discretion of the Board and will depend upon our results of operations, financial condition, cash requirements, and other factors.
Current wording
In October 2021, the Board approved the initiation of a regular quarterly cash dividend on our common stock. The Company paid cash dividends of $0.06 per share outstanding, for a total of $4.3 million and $13.1 million in thethree and nine months ended September 30, 2025. The next dividend, in the amount of $0.06 per share, will be paid on December 1, 2025 to stockholders of record on November 17, 2025. We currently anticipate that we will continue to pay comparable quarterly cash dividends in the future. However, the payment, amount and timing of future dividends remain within the discretion of the Board and will depend upon our results of operations, financial condition, cash requirements, and other factors.
Previous wording
During the six months ended June 30, 2025, cash provided by operating activities was $39.4 million, consisting of net income of $20.1 million, non-cash charges of $18.2 million and an increase in cash resulting from the net change in operating assets and liabilities of $1.1 million. Our non-cash charges consisted primarily of depreciation and amortization expenses of $7.1 million and stock-based compensation expense of $10.4 million. The net change in our operating assets and liabilities primarily reflects cash inflows from the changes in accounts receivable of $24.0 million and inventory of $1.6 million, partially offset by cash outflows from accounts payable of $6.4 million, deferred revenue of $6.3 million, accrued liabilities of $5.9 million and prepaid expenses and other assets of $5.9 million.
Current wording
During the nine months ended September 30, 2025, cash provided by operating activities was $62.2 million, consisting of net income of $32.3 million, non-cash charges of $28.3 million and an increase in cash resulting from the net change in operating assets and liabilities of $1.6 million. Our non-cash charges consisted primarily of depreciation and amortization expenses of $10.9 million and stock-based compensation expense of $15.2 million. The net change in our operating assets and liabilities primarily reflects cash inflows from the changes in accounts receivable of $14.8 million, inventory of $2.7 million and accrued liabilities of $0.4 million, partially offset by cash outflows from deferred revenue of $7.3 million, prepaid expenses and other assets of $6.9 million and accounts payable of $2.1 million.
Previous wording
The favorable change in accounts receivable was attributable to timing of billing and cash collections. The favorable change in inventory was attributable to the timing of product shipments. The unfavorable change in accounts payable was attributable to the timing of payments to vendors. The unfavorable change in deferred revenue was attributable to the timing of service contract bookings. The unfavorable change in accrued liabilities was primarily due to a decrease in accrued variable compensation. The unfavorable change in prepaid expenses and other assets was attributable to an increase in prepaid accounting and marketing expenses.
Current wording
The favorable change in accounts receivable was attributable to timing of billing and cash collections. The favorable change in inventory was attributable to the timing of product shipments. The favorable change in accrued liabilities was primarily due to an increase in accrued variable compensation. The unfavorable change in deferred revenue was attributable to the timing of service contract bookings. The unfavorable change in prepaid expenses and other assets was attributable to an increase in prepaid accounting and marketing expenses. The unfavorable change in accounts payable was attributable to the timing of payments to vendors.
Previous wording
During the six months ended June 30, 2024, cash provided by operating activities was $44.7 million, consisting of net income of $19.2 million, non-cash charges of $13.2 million and an increase in cash resulting from the net change in operating assets and liabilities of $12.2 million. Our non-cash charges consisted primarily of depreciation and amortization expenses of $5.5 million and stock-based compensation expense of $8.1 million. The net change in our operating assets and liabilities primarily reflects cash inflows from the changes in accounts receivable of $16.7 million and accrued liabilities of $3.6 million, partially offset by cash outflows from inventory of $3.3 million, accounts payable of $2.9 million, deferred revenue of $1.4 million and prepaid expenses and other assets of $0.5 million.
Current wording
During the nine months ended September 30, 2024, cash provided by operating activities was $64.8 million, consisting of net income of $31.8 million, non-cash charges of $19.5 million and an increase in cash resulting from the net change in operating assets and liabilities of $13.4 million. Our non-cash charges consisted primarily of depreciation and amortization expenses of $8.2 million and stock-based compensation expense of $12.3 million. The net change in our operating assets and liabilities primarily reflects cash inflows from the changes in accounts receivable of $8.4 million, accrued liabilities of $5.1 million, deferred revenue of $2.9 million and prepaid expenses and other assets of $0.8 million, partially offset by cash outflows from inventory of $1.9 million and accounts payable of $1.8 million.
Previous wording
During the six months ended June 30, 2025, cash used in investing activities was $41.2 million, consisting of purchases of marketable securities of $68.1 million, cash paid for the acquisition of ThreatX Protect of $19.1 million and capital expenditures of $8.7 million, partially offset by maturities of marketable securities of $54.7 million. See Note 5 for additional information.
Current wording
During the nine months ended September 30, 2025, cash used in investing activities was $215.1 million, consisting of purchases of marketable securities of $278.9 million, cash paid for the acquisition of ThreatX Protect of $19.1 million and capital expenditures of $13.5 million, partially offset by maturities of marketable securities of $96.4 million. See Note 5 -Acquisition for additional information on our acquisition of ThreatX Protect.
Previous wording
During the six months ended June 30, 2024, cash used in investing activities was $42.5 million, consisting of purchases of marketable securities of $106.3 million and capital expenditures of $6.4 million, partially offset by maturities of marketable securities of $47.7 million and sales of marketable securities of $22.5 million.
Current wording
During the nine months ended September 30, 2024, cash used in investing activities was $48.2 million, consisting of purchases of marketable securities of $127.3 million and capital expenditures of $9.9 million, partially offset by maturities and sales of marketable securities of $89.0 million.
Previous wording
During the six months ended June 30, 2025, cash provided by financing activities was $159.7 million, consisting of proceeds from the sale on the Company’s 2030 Notes of $217.7 million, proceeds from common stock issued under the Company’s equity plans of $1.7 million, partially offset by repurchases of common stock of $51.0 million and cash dividend payments of $8.8 million.
Current wording
During the nine months ended September 30, 2025, cash provided by financing activities was $144.3 million, consisting of proceeds from the sale on the Company’s 2030 Notes of $217.7 million, proceeds from common stock issued under the Company’s equity plans of $1.7 million, partially offset by repurchases of common stock of $62.0 million and cash dividend payments of $13.1 million.
Previous wording
During the six months ended June 30, 2024, cash used in financing activities was $22.0 million and primarily consisting of $14.9 million used for repurchases of common stock and $8.9 million used for cash dividend payments, partially offset by $1.9 million of proceeds from common stock issued under the Company’s equity plans.
Current wording
During the nine months ended September 30, 2024, cash used in financing activities was $35.8 million and primarily consisting of $24.3 million used for repurchases of common stock and $13.4 million used for cash dividend payments, partially offset by $1.9 million of proceeds from common stock issued under the Company’s equity plans.
Previous wording
Our contractual obligations consist of non-cancellable operating lease arrangements and totaled $11.7 million as of June 30, 2025. Our operating lease arrangements expire on various dates through April 2028. These arrangements require us to pay certain operating expenses, such as taxes, repairs and insurance, and contain renewal and escalation clauses.
Current wording
Our contractual obligations consist of non-cancellable operating lease arrangements and totaled $10.4 million as of September 30, 2025. Our operating lease arrangements expire on various dates through April 2028. These arrangements require us to pay certain operating expenses, such as taxes, repairs and insurance, and contain renewal and escalation clauses.
Previous wording
The Company applied the fair value measurement requirements within ASC 820 Fair Value Measurements to evaluate the fair value of identifiable assets acquired and liabilities assumed in connection with its acquisition of ThreatX Protect in February 2025. The Company estimated fair value and remaining useful life of the intangible assets acquired based on the price that would be received if the Company were to sell the intangible assets in an orderly transaction between market participants. Intangible assets will be amortized on a straight-line basis over their remaining useful life. See Note 5 Acquisition for additional information.
Current wording
The Company applied the fair value measurement requirements within ASC 820 Fair Value Measurements to evaluate the fair value of identifiable assets acquired and liabilities assumed in connection with its acquisition of ThreatX Protect in February 2025. The Company estimated fair value and remaining useful life of the intangible assets acquired based on the price that would be received if the Company were to sell the intangible assets in an orderly transaction between market participants. Intangible assets will be amortized on a straight-line basis over their remaining useful life. See Note 5 - Acquisition for additional information on our acquisition of ThreatX Protect.
Previous wording
The Company’s other critical accounting policies and estimates are disclosed in Part II – Item 7, “Critical Accounting Estimates” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 25, 2025. There have been no material changes to the Company’s other critical accounting policies and estimates during the six months ended June 30, 2025.
Current wording
The Company’s other critical accounting policies and estimates are disclosed in Part II – Item 7, “Critical Accounting Estimates” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 25, 2025. There have been no material changes to the Company’s other critical accounting policies and estimates during the nine months ended September 30, 2025.