A10 Networks, Inc.
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
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.
Jun 30, 2026 · Filed Aug 6, 2026
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 2026-03-31; filed 2026-05-07.
0001580808-26-000032
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001580808-26-000045
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 93 previous paragraphs and 107 current paragraphs.
57 unchanged; 30 reworded; 17 added; 6 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 6 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 (17)
Current report
In June 2026, we acquired TrojAI, an AI security company focused on helping organizations secure, test and govern AI applications and agentic workflows. The acquisition strengthens the Company’s ability to deliver sovereign AI security, helping customers control how and where their AI models, data and agents are protected.
Current report
On August 3, 2026, the Company issued a warrant to Microsoft Corporation in connection with the parties' commercial relationship. The warrant is designed to vest based on purchases by Microsoft and its affiliates of the Company’s products and services during measurement periods ending June 30, 2027 and June 30, 2028, and is intended to further align the parties' commercial interests.
Current report
Products revenue increased $9.9 million, or 25%, during the three months ended June 30, 2026 compared to the same period of 2025, as a result of an increase in demand from our enterprise customers in the Americas region.
Current report
During the three months ended June 30, 2026, $16.7 million, or 21% of total revenue, was generated from the APJ region, which represents a 7% decrease compared to the same period of 2025. 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 report
During the three months ended June 30, 2026, $8.6 million, or 11% of total revenue, was generated from the EMEA region, which represents a 16% decrease compared to the same period of 2025. The decrease was primarily due to lower products and services revenue due to a decrease in demand from our service provider customers in the EMEA region.
Current report
Six Months Ended June 30, 2026 and 2025
Current report
Products revenue increased $17.9 million, or 24%, during the six months ended June 30, 2026 and 2025 compared to the same period of 2025, as a result of an increase in demand from our enterprise customers in the Americas region.
Current report
Services revenue increased $1.8 million, or 3%, during the six months ended June 30, 2026 and 2025, compared to the same period of 2025, as a result of an increase in demand from our enterprise and service provider customers in the Americas region.
Current report
During the six months ended June 30, 2026 and 2025, $105.3 million, or 68% of total revenue, was generated from the Americas region, which represents a 41% increase in revenue compared to the same period of 2025. The increase was primarily due to higher products and services revenue due to an increase in demand from our enterprise customers in the Americas region.
Current report
During the six months ended June 30, 2026 and 2025, $30.9 million, or 20% of total revenue, was generated from the APJ region, which represents a 15% decrease compared to the same period of 2025. 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 report
During the six months ended June 30, 2026 and 2025, $18.9 million, or 12% of total revenue, was generated from the EMEA region, which represents a 22% decrease compared to the same period of 2025. The decrease was primarily due to lower products and services revenue due to a decrease in demand from our service provider customers in the EMEA region.
Current report
Interest income was $3.3 million and $3.0 million in thethree months ended June 30, 2026 and 2025, respectively, and was $6.7 million and $4.8 million in thesix months ended June 30, 2026 and 2025, respectively.
Current report
As described in Note 7 to the condensed consolidated financial statements included elsewhere in this Quarterly Report, the 2030 Notes are convertible into cash or a combination of cash and shares of common stock, at our election, upon the occurrence of certain circumstances specified in the indenture governing the 2030 Notes. One such circumstance was satisfied during the second quarter of 2026: for at least 20 trading days during the 30 consecutive trading days ending on the last trading day of such quarter, the last reported sale price of our common stock exceeded 130% of the applicable conversion price. As a result, holders of the 2030 Notes have the right, at their option, to convert their notes at any time during the third quarter of 2026 (from July 1, 2026 through September 30, 2026), and we reclassified the $219.5 million carrying amount of the 2030 Notes from long-term debt to a current liability on our condensed consolidated balance sheet as of June 30, 2026. Whether the 2030 Notes will become convertible again following the current conversion period and prior to December 1, 2029 (on and after which date they will become freely convertible) will depend on our common stock price or other conditions specified in the indenture in future periods, and we cannot predict whether, or to what extent, holders will elect to convert their 2030 Notes during the current or any future conversion period.
Current report
If holders elect to convert their 2030 Notes, we may settle our conversion obligation in cash or a combination thereof, at our election. If holders elect to convert their 2030 Notes and we elect to settle all or a portion of our conversion obligation in cash, we would be required to use a portion of our cash, cash equivalents and marketable securities, which totaled $54.7 million and $302.7 million, respectively, as of June 30, 2026, or seek additional financing, to fund that obligation, and if we elect to settle any portion in shares of our common stock, such issuance would dilute the ownership interests of our existing stockholders. We believe our existing cash, cash equivalents and marketable securities, together with cash expected to be generated from operating activities, would be sufficient to satisfy a cash settlement obligation with respect to the 2030 Notes if holders were to elect to convert their notes during the current conversion period. However, the extent and timing of any such elections are outside of our control, and satisfying a significant cash settlement obligation could reduce the cash resources available to fund our other liquidity needs, including our stock repurchase programs and quarterly cash dividend, and could require us to seek additional financing on terms that may not be favorable to us, or at all.
Current report
$4.5 million, partially offset by sales and maturities of marketable securities of $115.4 million. See Note 5 for additional information regarding our acquisitions.
Current report
During thesix months ended June 30, 2026, cash used in financing activities was $11.8 million, consisting of cash dividend payments of $8.6 million, the repurchase of common stock, including the withholding of shares to satisfy income tax withholding and remittance obligations resulting from the vesting of certain awards, of $4.9 million, partially offset by proceeds from issuance of common stock under employee equity incentive plans of $1.7 million.
Current report
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, including the withholding of shares to satisfy income tax withholding and remittance obligations resulting from the vesting of certain awards, of $51.0 million and cash dividend payments of $8.8 million.
Removed paragraphs (6)
Previous report
Products revenue increased $8.0 million, or 22%, during the three months ended March 31, 2026 compared to the same period of 2025, as a result of an increase in demand from our enterprise customers in the Americas and EMEA regions.
Previous report
During the three months ended March 31, 2026, $14.2 million, or 19% of total revenue, was generated from the APJ region, which represents a 24% decrease compared to the same period of 2025. The decrease was primarily due to lower products and services revenue due to a decrease in demand from our service provider customers in the APJ region.
Previous report
During the three months ended March 31, 2026, $10.3 million, or 14% of total revenue, was generated from the EMEA region, which represents an 27% decrease compared to the same period of 2025. The decrease was primarily due to lower products revenue due to a decrease in demand from our service provider customers in the EMEA region.
Previous report
Interest income was $3.4 million and $1.8 million in thethree months ended March 31, 2026 and 2025, respectively.
Previous report
During the three months ended March 31, 2026, cash used in financing activities was $6.8 million, consisting of cash dividend payments of $4.3 million and repurchases of common stock of $2.5 million.
Previous report
During the three months ended March 31, 2025, cash provided by financing activities was $166.3 million and primarily consisting of $217.7 million in net proceeds from the issuance of the 2030 Notes, $47.0 million used for repurchases of common stock and $4.4 million used for cash dividend payments.
Reworded paragraphs (30)
Previous wording
In February 2025, we acquired the assets and key personnel of ThreatX Protect, which expanded our cybersecurity portfolio with WAAP protection (web application and application programming interfaces). We offer protection under A10 Defend ThreatX Protect. In March 2025, the Company issued the 2030 Notes and received net proceeds from the offering of approximately $217.7 million.
Current wording
In February 2025, we acquired the assets and key personnel of ThreatX Protect, which expanded our cybersecurity portfolio with WAAP protection (web application and application programming interfaces). We offer protection under A10 Defend ThreatX Protect.
Previous wording
During the three months ended March 31, 2026, (i) 67% of our total revenue was generated from the Americas region, of which 62% was generated from the United States and 5% was generated from the Americas-other, (ii) 19% 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 three months ended March 31, 2025, (i) 51% of our total revenue was generated from the Americas region, of which 46% was generated from the United States and 5% was generated from the Americas-other, (ii) 28% of our total revenue was generated from the APJ region and (iii) 21% 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 March 31, 2026 and 2025, our enterprise customers accounted for 56% and 41% of our total revenue, respectively, and our service provider customers accounted for 44% and 59% of our total revenue, respectively.
Current wording
During the three months ended June 30, 2026, (i) 68% of our total revenue was generated from the Americas region, of which 65% was generated from the United States and 4% was generated from the Americas-other, (ii) 21% of our total revenue was generated from the APJ region and (iii) 11% of our total revenue was generated from the EMEA region. 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% 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 June 30, 2026 and 2025, our enterprise customers accounted for 60% and 40% of our total revenue, respectively, and our service provider customers accounted for 40% and 60% 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 55% and 44% of our total revenue for the three months ended March 31, 2026 and 2025, 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 58% and 46% of our total revenue for the three months ended June 30, 2026 and 2025, respectively, and accounted for 55% and 42% of our total revenue for the six months ended June 30, 2026 and 2025, 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 March 31, 2026, we had $57.9 million of cash and cash equivalents and $311.9 million of marketable securities. Cash provided by operating activities was $2.2 million during the three months ended March 31, 2026, compared to $17.2 million in the same period of 2025.
Current wording
As of June 30, 2026, we had $54.7 million of cash and cash equivalents and $302.7 million of marketable securities. Cash provided by operating activities was $31.3 million during the six months ended June 30, 2026, compared to $39.4 million in the same period of 2025.
Previous wording
A summary of our condensed consolidated statements of operations for the three months ended March 31, 2026 and 2025 is as follows (dollars in thousands):
Current wording
A summary of our condensed consolidated statements of operations for the three and six months ended June 30, 2026 and 2025 is as follows (dollars in thousands):
Previous wording
Total net revenue increased $8.9 million, or 13%, during the three months ended March 31, 2026, compared to the same period of 2025. Changes in revenue were due primarily to (i) an increase of $17.0 million in the Americas region, comprised of increases of $16.7 million in the United States and $0.3 million in Americas-other, (ii) a decrease of $4.4 million in the APJ region, and (iii) a decrease of $3.7 million in the EMEA region. The overall increase in revenue was attributable to a $15.1 million increase in revenue from enterprise customers, partially offset by a $6.2 million decrease in revenue from service provider customers during the three months ended March 31, 2026 compared to the same period of 2025. Products revenue increased $8.0 million, of which the Americas region increased $15.4 million, partially offset by decreases of $3.7 million in the APJ region and $3.7 million in the EMEA region for the three months ended March 31, 2026, compared to the same period of 2025. Services revenue increased $0.9 million, of which the Americas region increased $1.6 million, partially offset by a decrease of $0.7 million in the APJ region for the three months ended March 31, 2026, compared to the same period of 2025. Services revenue in the EMEA region was flat for the three months ended March 31, 2026, compared to the same period of 2025.
Current wording
Total net revenue increased $10.8 million, or 15%, during the three months ended June 30, 2026, compared to the same period of 2025. Changes in revenue were due primarily to (i) an increase of $13.6 million in the Americas region, comprised of increases of $13.5 million in the United States and $0.1 million in Americas-other, (ii) a decrease of $1.2 million in the APJ region, and (iii) a decrease of $1.6 million in the EMEA region. The overall increase in revenue was attributable to a $20.2 million increase in revenue from enterprise customers, partially offset by a $9.5 million decrease in revenue from service provider customers during the three months ended June 30, 2026 compared to the same period of 2025. Products revenue increased $9.9 million, of which the Americas region increased $11.5 million, partially offset by decreases of $1.0 million in the APJ region and $0.7 million in the EMEA region for the three months ended June 30, 2026, compared to the same period of 2025. Services revenue increased $0.9 million, of which the Americas region increased $2.1 million, partially offset by decreases of $0.3 million in the APJ region and $0.9 million in the EMEA region for the three months ended June 30, 2026, compared to the same period of 2025.
Previous wording
Services revenue increased $0.9 million, or 3%, during the three months ended March 31, 2026, compared to the same period of 2025, as a result of an increase in demand from our service provider and enterprise customers in the Americas region.
Current wording
Services revenue increased $0.9 million, or 3%, during the three months ended June 30, 2026, compared to the same period of 2025, as a result of an increase in demand from our enterprise and service provider customers in the Americas region.
Previous wording
During the three months ended March 31, 2026, $50.5 million, or 67% of total revenue, was generated from the Americas region, which represents a 51% increase in revenue compared to the same period of 2025. The increase was primarily due to higher products revenue due to an increase in demand from our service provider and enterprise customers in the Americas region.
Current wording
During the three months ended June 30, 2026, $54.8 million, or 68% of total revenue, was generated from the Americas region, which represents a 33% increase in revenue compared to the same period of 2025. The increase was primarily due to higher products and services revenue due to an increase in demand from our enterprise customers in the Americas region.
Previous wording
Products cost of revenue increased 23.0% during thethree months ended March 31, 2026, compared to the same period of 2025, primarily due product and regional mix.
Current wording
Products cost of revenue increased 23.0% during the three and six months ended June 30, 2026, compared to the same periods of 2025, primarily due product and regional mix.
Previous wording
Services cost of revenue increased 2.7% during thethree months ended March 31, 2026, compared to the same period of 2025, 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 3.1% during the three and six months ended June 30, 2026, and increased 2.9% during the six months ended June 30, 2026, compared to the same periods of 2025, 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 decreased 0.1% to 79.7% during thethree months ended March 31, 2026, compared to the same periods of 2025, primarily due to product and regional mix.
Current wording
Products gross margin increased 0.3% to 79.4% during thethree months ended June 30, 2026, and increased 0.2% to 79.6% during thesix months ended June 30, 2026, compared to the same periods of 2025, primarily due to product and regional mix.
Previous wording
Services gross margin remained consistent at 79.5% for both thethree months ended March 31, 2026 and 2025. Service gross margin is impacted by the mix of services delivered, which include technical support, training and service costs.
Current wording
Services gross margin decreased 0.1% to 78.5% for thethree months ended June 30, 2026, and remained consistent at 79.0% during the six months ended June 30, 2026 compared to the same periods of 2025. Changes in services gross margin is primarily due to the mix of services delivered, which include technical support, training and service costs.
Previous wording
Sales and marketing operating expenses increased $0.5 million, or 2.4%, in thethree months ended March 31, 2026, compared to the same period in 2025, primarily due to an increase in personnel costs.
Current wording
Sales and marketing operating expenses increased $0.9 million, or 4.5%, in thethree months ended June 30, 2026, and increased $1.4 million, or 3.5%, in thesix months ended June 30, 2026, compared to the same period in 2025, primarily due to an increase in personnel costs.
Previous wording
Research and development operating expenses increased $3.1 million, or 19.6%, in thethree months ended March 31, 2026, compared to the same period in 2025, primarily due to an increase in personnel costs.
Current wording
Research and development operating expenses increased $4.9 million, or 30.1%, in thethree months ended June 30, 2026, and increased $8.0 million, or 24.9%, in thesix months ended June 30, 2026, compared to the same periods in 2025, primarily due to an increase in personnel costs.
Previous wording
General and administrative operating expenses decreased $0.8 million, or 9.2%, in the three months ended March 31, 2026, compared to the same period in 2025, primarily due to a decrease in personnel costs.
Current wording
General and administrative operating expenses increased $4.1 million, or 57.4%, in the three months ended June 30, 2026, and increased $3.3 million, or 21.3%, in thesix months ended June 30, 2026, compared to the same periods in 2025, primarily due to an increase in personnel costs.
Previous wording
For the full year 2026, we expect general and administrative expenses to increase modestly from 2025 levels as we continue to apply a disciplined approach to focus our investments in areas that offer the greatest opportunities.
Current wording
For the full year 2026, we expect general and administrative expenses to increase from 2025 levels as we continue to apply a disciplined approach to focus our investments in areas that offer the greatest opportunities.
Previous wording
Interest expense was $1.9 million and $0.3 million in the three months ended March 31, 2026, respectively, and was related to our outstanding 2030 Notes that were issued in March 2025.
Current wording
Interest expense was $1.9 million and $1.9 million in thethree months ended June 30, 2026 and 2025, respectively, and was $3.8 million and $2.2 million in thesix months ended June 30, 2026 and 2025, respectively, and was related to our outstanding 2030 Notes that were issued in March 2025.
Previous wording
The Company recorded $0.2 million of net losses and $0.2 million of net gains in other income (expense) in thethree months ended March 31, 2026, and 2025 respectively, primarily from foreign currency exchange gains and losses from fluctuations in the Japanese Yen versus the U.S. Dollar.
Current wording
The Company recorded $0.6 million of net losses and $0.5 million of net gains in other income (expense) in thethree months ended June 30, 2026 and 2025, respectively, and recorded $0.8 million of net losses and $0.7 million of net gains in other income (expense) in thesix months ended June 30, 2026 and 2025, respectively, primarily from foreign currency exchange gains and losses from fluctuations in the Japanese Yen versus the U.S. Dollar.
Previous wording
We recorded a provision for income taxes of $2.2 million and $0.9 million for thethree months ended March 31, 2026 and 2025, respectively. The Company’s income tax provisions for thethree months ended March 31, 2026 and 2025 primarily consisted of U.S. federal and state taxes.
Current wording
We recorded a provision for income taxes of $1.0 million and $1.4 million for thethree months ended June 30, 2026 and 2025, respectively, and we recorded a provision for income taxes of $3.2 million and $2.3 million for thesix months ended June 30, 2026 and 2025, respectively. The Company’s income tax provisions for thethree and six months ended June 30, 2026 and 2025 primarily consisted of U.S. federal and state taxes.
Previous wording
As of March 31, 2026, we had cash and cash equivalents of $57.9 million, including $3.3 million held outside the United States in our foreign subsidiaries, and $311.9 million of marketable securities. We currently do not have any plans to repatriate our earnings from our foreign operations. As of March 31, 2026, we had working capital of $350.4 million, retained earnings of $13.8 million and total stockholders’ equity of $220.8 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 June 30, 2026, we had cash and cash equivalents of $54.7 million, including $3.5 million held outside the United States in our foreign subsidiaries, and $302.7 million of marketable securities. We currently do not have any plans to repatriate our earnings from our foreign operations. As of June 30, 2026, we had working capital of $108.7 million, retained earnings of $22.7 million and total stockholders’ equity of $238.0 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.
Previous wording
The Board of Directors 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, 2025, the Company repurchased 3.7 million shares for a total cost of $68.9 million under the 2023 and 2024 Programs. During the three months ended March 31, 2026, the Company had repurchased 0.1 million shares for a total cost of $2.5 million under the 2025 Program.
Current wording
The Board of Directors 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, 2025, the Company repurchased 3.7 million shares for a total cost of $68.9 million under the 2024 and 2025 Programs. During thethree months ended June 30, 2026, the Company did not repurchase any shares and during thesix months ended June 30, 2026, the Company repurchased $17 thousand shares for a total cost of $317 thousand under the 2025 Program.
Previous wording
In October 2021, the Board of Directors 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 $4.4 million in the three months ended March 31, 2026. The next dividend, in the amount of $0.06 per share, will be paid on June 1, 2026 to stockholders of record on May 15, 2026. 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 of Directors and will depend upon our results of operations, financial condition, cash requirements, and other factors.
Current wording
In October 2021, the Board of Directors 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 $8.6 million in the three and six months ended June 30, 2026. The next dividend, in the amount of $0.06 per share, will be paid on September 1, 2026 to stockholders of record on August 17, 2026. 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 of Directors and will depend upon our results of operations, financial condition, cash requirements, and other factors.
Previous wording
During the three months ended March 31, 2026, cash provided by operating activities was $2.2 million, consisting of net income of $12.0 million, non-cash charges of $9.5 million and a decrease in cash resulting from the net change in operating assets and liabilities of $19.3 million. Our non-cash charges consisted primarily of depreciation and amortization expenses of $4.0 million and stock-based compensation expense of $4.8 million. The net change in our operating assets and liabilities primarily reflects cash outflows from the changes in accrued liabilities of $11.8 million, accounts receivable of $7.0 million, prepaid expenses and other assets of $3.7 million and inventory of $2.1 million, partially offset by cash inflows from deferred revenue of $4.4 million and accounts payable of $0.9 million.
Current wording
During thesix months ended June 30, 2026, cash provided by operating activities was $31.3 million, consisting of net income of $20.9 million, non-cash charges of $24.3 million and a decrease in cash resulting from the net change in operating assets and liabilities of $13.9 million. Our non-cash charges consisted primarily of depreciation and amortization expenses of $8.4 million and stock-based compensation expense of $13.8 million. The net change in our operating assets and liabilities primarily reflects cash outflows from the changes in inventory of $13.9 million, accounts receivable of $10.1 million, accrued and other liabilities of $8.0 million and prepaid expenses and other assets of $6.1 million, partially offset by cash inflows from accounts payable of $12.3 million and deferred revenue of $11.8 million.
Previous wording
The unfavorable change in accrued liabilities was primarily due to payments for variable compensation. The unfavorable change in accounts receivable was attributable to timing of billing and cash collections. The unfavorable change in prepaid expenses and other assets was attributable to an increase in prepaid accounting and marketing expenses. The unfavorable change in inventory was attributable to the timing of product shipments. The favorable change in deferred revenue was attributable to the timing of service contract bookings. The favorable change in accounts payable was attributable to the timing of payments to vendors.
Current wording
The unfavorable change in inventory was attributable to the timing of product shipments. The unfavorable change in accounts receivable was attributable to timing of billing and cash collections. The unfavorable change in accrued and other liabilities was primarily due to payments for variable compensation. The unfavorable change in prepaid expenses and other assets was attributable to an increase in prepaid accounting and marketing expenses. The favorable change in accounts payable was attributable to the timing of payments to vendors. The favorable change in deferred revenue was attributable to the timing of service contract bookings.
Previous wording
During the three months ended March 31, 2025, cash provided by operating activities was $17.2 million, consisting of net income of $9.5 million, non-cash charges of $10.7 million and a decrease in cash resulting from the net change in operating assets and liabilities of $3.0 million. Our non-cash charges consisted primarily of depreciation and amortization expenses of $3.4 million and stock-based compensation expense of $6.0 million. The net change in our operating assets and liabilities primarily reflects cash outflows from the changes in accrued liabilities of $8.2 million, accounts payable of $5.6 million and prepaid expenses and other assets of $2.9 million, partially offset by cash inflows from accounts receivable of $10.5 million deferred revenue of $2.0 million and inventory of $1.2 million.
Current 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 and other liabilities of $5.9 million and prepaid expenses and other current assets of $5.9 million.
Previous wording
The unfavorable change in accrued liabilities was primarily due to a decrease in accrued variable compensation. The unfavorable change in accounts payable was attributable to the timing of payments to vendors. The unfavorable change in prepaid expenses and other assets was attributable to an increase in prepaid accounting and marketing expenses. The favorable change in accounts receivable was attributable to timing of billing and cash collections. The favorable change in deferred revenue was attributable to the timing of service contract bookings and the acquisition of ThreatX Protect deferred revenue. The favorable change in inventory was attributable to the timing of product shipments.
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 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 and other liabilities was primarily due to a decrease in accrued variable compensation. The unfavorable change in prepaid expenses and other current assets was attributable to an increase in prepaid accounting and marketing expenses.
Previous wording
During the three months ended March 31, 2026, cash used in investing activities was $8.7 million, consisting of purchases of marketable securities of $64.3 million and capital expenditures of $2.9 million, partially offset by maturities of marketable securities of $58.5 million.
Current wording
During thesix months ended June 30, 2026, cash used in investing activities was $36.0 million, consisting of purchases of marketable securities of $112.2 million, cash paid for the acquisition of TrojAI of $34.7 million and capital expenditures of
Previous wording
During the three months ended March 31, 2025, cash used in investing activities was $34.7 million, consisting of purchases of marketable securities of $41.9 million, cash paid for the acquisition of ThreatX Protect of $19.1 million and capital expenditures of $4.5 million, partially offset by maturities of marketable securities of $30.7 million. See Note 5 -Acquisition for additional information.
Current 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 regarding our acquisitions.
Previous wording
Our contractual obligations consist of non-cancellable operating lease arrangements and totaled $7.6 million as of March 31, 2026. 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 $6.6 million as of June 30, 2026. Our operating lease arrangements expire on various dates through April 2029. 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’s critical accounting policies and estimates are disclosed in Part II – Item 7, “Critical Accounting Estimates” of the 2025 Annual Report. There have been no material changes to the Company’s critical accounting policies and estimates during the three months ended March 31, 2026.
Current wording
The Company’s critical accounting policies and estimates are disclosed in Part II – Item 7, “Critical Accounting Estimates” of the 2025 Annual Report. There have been no material changes to the Company’s critical accounting policies and estimates during the six months ended June 30, 2026.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
During the six months ended June 30, 2026, (i) 68% of our total revenue was generated from the Americas region, of which 64% was generated from the United States and 4% was generated from the Americas-other, (ii) 20% 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 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% of our total revenue was generated from the APJ region and (iii) 18% 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 six months ended June 30, 2026 and 2025, our enterprise customers accounted for 58% and 41% of our total revenue, respectively, and our service provider customers accounted for 42% and 59% of our total revenue, respectively.
Current report — wording carried from elsewhere
Total net revenue increased $19.6 million, or 14%, during the six months ended June 30, 2026 and 2025, compared to the same period of 2025. Changes in revenue were due primarily to (i) an increase of $30.6 million in the Americas region, comprised of increases of $30.2 million in the United States and $0.4 million in Americas-other, (ii) a decrease of $5.6 million in the APJ region, and (iii) a decrease of $5.3 million in the EMEA region. The overall increase in revenue was attributable to a $35.3 million increase in revenue from enterprise customers, partially offset by a $15.7 million decrease in revenue from service provider customers during the six months ended June 30, 2026 and 2025 compared to the same period of 2025. Products revenue increased $17.9 million, of which the Americas region increased $26.9 million, partially offset by decreases of $4.6 million in the APJ region and $4.4 million in the EMEA region for the six months ended June 30, 2026 and 2025, compared to the same period of 2025. Services revenue increased $1.8 million, of which the Americas region increased $3.7 million, partially offset by decreases of $1.0 million in the APJ region and $0.9 million in the EMEA region for the six months ended June 30, 2026 and 2025, compared to the same period of 2025.
Current report — wording carried from elsewhere
In March 2025, the Company issued the 2030 Notes and received net proceeds from the offering of approximately $217.7 million.