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FatPipe, Inc. Announces First Quarter Fiscal Year 2026 Results

FatPipe, Inc. (NASDAQ: FATN), a leader in secure, application-aware software-defined wide area networking (SD-WAN), recently published its financial results for the first quarter of fiscal year 2026, which ended on June 30, 2025. This quarter marks a significant milestone for the company as it transitions into a public corporation.

Key Highlights of Q1 Fiscal Year 2026

FatPipe experienced notable growth in various metrics this quarter, indicating a strong start post-IPO. Here are some key points:

• - Successful IPO: The company successfully completed its initial public offering on the Nasdaq Capital Market, generating momentum and interest from investors.
• - Revenue Growth: Total product revenue increased by 16.2% year-over-year, demonstrating the company's effective sales and retention strategies. In total, FatPipe reported revenues of $3.9 million, representing a 5% increase over the same period from the previous year.
• - Index Additions: FatPipe has been added to the Russell 3000E and Russell Microcap indexes, which signifies its growth potential and credibility in the market.
• - New Leadership Appointments: The company expanded its leadership team by appointing several Vice Presidents with extensive experience in networking technology, cybersecurity, and finance, signifying its commitment to harnessing expertise to drive growth.
• - Award Recognition: FatPipe’s Total Security 360 product won the 2025 MSP Today Product of the Year Award, showcasing the company's innovation in cybersecurity solutions.

Management Insights

Dr. Ragula Bhaskar, CEO of FatPipe, expressed pride in the team's performance during this transformative quarter. He emphasized that despite the complexities of going public, the firm managed solid revenue growth while reinforcing its business model. Bhaskar noted the increasing enterprise demand for secure SD-WAN solutions as a significant opportunity for the company’s future growth.

Sanchaita Datta, President and CTO, highlighted that FatPipe’s technology roadmap continues to deliver value at scale. Notably, the successful deployment of a significant project across 252 sites for a major client illustrates FatPipe’s ability to meet customer needs rapidly and effectively.

Financial Performance Details

• - Revenue Overview: Total product revenue for the quarter reached $3.9 million, driven by the aforementioned 16.2% increase. Total revenues, incorporating professional services offerings, supported overall growth.
• - Gross Margin Improvement: The gross margin improved to 94%, up from 92% in Q1 FY25, reflecting efficient operational management and prolonged customer agreements.
• - Net Income and EBITDA: FatPipe achieved a net income of $0.7 million, a 22% increase from the previous year, demonstrating the robustness of its business model. The adjusted EBITDA also rose to $1.1 million, up 10% year-over-year.
• - Cash Positivity: As of June 30, 2025, FatPipe's cash and cash equivalents totaled $5.9 million, significantly increasing from $2.9 million earlier in the fiscal year, primarily due to proceeds from the IPO.

Future Outlook

Looking ahead, FatPipe plans to capitalize on its recent achievements and investments to accelerate growth. With the restructuring of its sales organization and continued focus on innovation, the company aims to position itself as a leader in SD-WAN technologies. By emphasizing strong customer relationships and expanding its market reach, FatPipe is committed to delivering value and sustaining its growth trajectory in fiscal year 2026 and beyond.

For more detailed information on FatPipe’s offerings and initiatives, please visit FatPipe's official website.

Conclusion

This quarter has set a promising precedent for FatPipe, laying the groundwork for continued success in its fiscal journey as a public entity. With strategic leadership, innovative products, and a clear vision for the future, FatPipe is poised to thrive in the competitive landscape of network solutions.