Fatpipe Inc/UT (NASDAQ:FATN) Announces Earnings Results

Fatpipe Inc/UT (NASDAQ:FATN) released its quarterly earnings data on Monday. The company reported $0.02 earnings per share for the quarter, FiscalAI reports. The business had revenue of $4.09 million during the quarter.

Here are the key takeaways from Fatpipe Inc/UT’s conference call:

• Revenue and recurring-billing momentum — Q3 revenue was $4.1M (up 30% YoY) with monthly recurring billings up 48% YoY and total quarterly billings up 27%, showing strong subscription adoption.
• Profitability and cash flow are mixed — Adjusted EBITDA for the quarter was $0.59M (~14%) and net income rose to $310k, while nine‑month EBITDA margin fell (21% vs. 31%) due to growth investments and stock‑based comp.
• Go‑to‑market expansion — Management plans to grow sales headcount from 24 to ~36 and broaden VAR/solution provider and ISP channels to accelerate deal execution and market coverage.
• Security product differentiation and AI features — FatPipe is selling on‑premise cybersecurity (including in‑house AI image analysis) that already generates revenue and management plans to push this integrated security + SD‑WAN offering harder.
• Balance sheet and M&A posture — Cash equivalents are ~$6.2M (benefiting from IPO proceeds), management prefers balance‑sheet/debt financing for acquisitions (avoiding equity dilution), which preserves shares but may constrain deal financing flexibility.

Fatpipe Inc/UT Stock Performance

Shares of FATN stock opened at $2.60 on Wednesday. The company has a quick ratio of 2.69, a current ratio of 2.74 and a debt-to-equity ratio of 0.20. Fatpipe Inc/UT has a 12 month low of $1.73 and a 12 month high of $23.27.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings initiated coverage on shares of Fatpipe Inc/UT in a research report on Tuesday, January 27th. They issued a “sell (d-)” rating for the company. One analyst has rated the stock with a Sell rating, According to MarketBeat, the stock has a consensus rating of “Sell”.

Fatpipe Inc/UT Company Profile

FatPipe is a pioneer in enterprise-class, application-aware, secure software-defined wide area network (“SD-WAN”) solutions for organizations, including enterprises, communication service providers, security service providers, government organizations, and middle-market companies. Organizations, large and small, have become increasingly dependent on their information technology (“IT”) network infrastructure for data access and communications, and the critical importance of network reliability, extensibility, and durability has continued to grow as the volume of traffic across those networks expands.