FATN earnings analysis
What we found in FATN's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
FatPipe, Inc. (FATN) reported strong Q4 FY2026 results with revenue of $7.2 million, exceeding the expected $6.8 million. This marks a significant recovery from a revenue of $3.8 million in Q4 FY2025, showcasing a robust 90% year-over-year growth, alongside a diluted EPS of $0.36 versus expectations of $0.11. The company's strategic focus on expanding its cybersecurity offerings and strengthening its distribution partnerships contributed to its impressive financial performance and future growth prospects.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth of 90% YoY
- FATN reported Q4 FY2026 revenue of $7.2M, a 90% increase from $3.8M in Q4 FY2025.
- Diluted EPS Surpasses Expectations
- Diluted EPS reached $0.36 in Q4 FY2026, significantly beating the expected $0.11.
- Successful IPO and Subsequent Expansion
- After its IPO in April 2025, the company expanded its sales organization, contributing to a revenue increase of $2.9 million, or 17.9%, in FY2026.
- Improved Gross Margins
- Gross margin for FY2026 improved to approximately 91%, though slightly down from 93.5% in FY2025.
- Strong Free Cash Flow Generation
- The company generated positive cash flow from operations despite a net cash used of $780,393, reflecting a focus on collection from receivables.
- Innovations in Cybersecurity Solutions
- Introduction of integrated cybersecurity solutions is expected to enhance future revenue streams.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Competition in Cybersecurity
- FATN operates in a highly competitive environment; competition could lead to pricing pressures and market share loss.
- Dependence on Major Resellers
- In FY2026, three major resellers accounted for approximately 64.59% of revenues, indicating high dependency.
- Economic Conditions Impacting IT Spending
- Macroeconomic factors and potential recessions could impact IT spending, adversely affecting future revenue.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.28
What they said about what is next.
Annual outlook deferred to earnings press release / call.
The filing reads better than the one before it.
What came before.
- 10-Q · November 3, 2025
- FatPipe reported Q1 (three months ended Sept 30, 2025) revenue of $3,959,231, down from $5,595,576 in the year-ago quarter, while gross profit remained high at $3,646,327 (92.06% gross margin) and operating loss was…
- 10-Q · July 30, 2025
- FatPipe reported Q1 revenue of $3,935,923, up $185,604 (≈5%) versus $3,750,319 a year ago, with gross profit of $3,708,989 and operating income of $1,002,677. Net income increased to $741,195 but EPS remained $0.05 due…
- 10-K · June 30, 2025
- FatPipe completed an IPO in April 2025 raising gross proceeds of approximately $4.5 million (net proceeds ~ $3.7 million) and listed on Nasdaq (ticker FATN). The company emphasizes a patent-backed SD-WAN/SASE/NMS…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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