A10 Networks Q2 2025: Dissecting Contradictions in AI Revenue Timing, Enterprise Growth, and Customer Sentiment

AI Product Revenue Timing, North American Enterprise Growth, AI Revenue and Product Revenue Growth, Impact of Tariffs on Customer Conversations, and Service Provider Segment Demand are the key contradictions discussed in A10 Networks' latest 2025Q2 earnings call.



Revenue Growth and Strategic Alignment:
- A10 Networks reported second quarter 2025 revenue of $69.4 million, up 15% year-over-year.
- This growth was driven by a more normalized Service Provider quarter and strategic investments in the Enterprise and AI infrastructure sectors. The company's alignment with AI and cybersecurity trends, coupled with strategic positioning and product offerings, contributed to this growth.

Enterprise and Service Provider Revenue:
- On a trailing 12-month basis, total revenue grew 11% year-over-year, with Enterprise revenue up 8% and Service Provider revenue increasing 14%.
- The improvement in Global Service Provider spending contributed to this growth, alongside a balanced exposure across verticals and geographies.

Product Revenue and Customer Engagement:
- Product revenue for the quarter was $39.2 million, representing 56% of total revenue.
- The strong uptake of A10's cutting-edge portfolio, indicated by continued product revenue growth and high renewal rates, demonstrated the company's ability to retain customers and market share.

Profitability and Shareholder Returns:
- Adjusted EBITDA as a percent of revenue grew year-over-year, and the company generated $22.2 million in cash from operations.
- A10 paid $4.3 million in cash dividends and repurchased $3.9 million worth of shares during the quarter, reflecting its commitment to profitability and returning capital to shareholders.