Fatpipe CEO Claims Company is Set for Sustainable Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 18 2025
0mins
Should l Buy FATN?
Stock Performance Post-IPO: FatPipe's stock has faced downward pressure following the expiration of the initial shareholder lockup period, leading to increased trading volume and volatility, but this does not indicate a change in the company's fundamentals.
Financial Comparison: FatPipe's current Price/Sales and Enterprise Value/Sales multiples are significantly lower than the average for its sector, suggesting a relative value opportunity as the company continues to grow its recurring revenue and expand margins.
Strategic Focus: The company is committed to executing its strategic priorities, including expanding its customer base and enhancing its offerings in secure, application-aware SD-WAN and cybersecurity solutions.
Growth Prospects: FatPipe is experiencing strong interest from both enterprise and public sector organizations for cost-effective networking solutions, and it aims for disciplined execution and profitable growth to create long-term shareholder value.
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Analyst Views on FATN
About FATN
FatPipe, Inc. is a provider of 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. Through its integrated suite of software solutions, the Company offers its customers a secure platform to support mission-critical applications running on cloud, hybrid cloud and on-premises networks. Its core offerings include SD-WAN, secure access service edge (SASE), and network monitoring service (NMS) software solutions. Its primary offering is an SD-WAN, WAN Edge software platform that integrates an array of network traffic management and routing, security, and monitoring functions. The SASE offering provides virtual network and security functions, which combine networking and network security services into a single cloud-delivered solution. It sells products in the United States and South Asia.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
FatPipe Reports 30% Revenue Growth in Q3 Amid Market Pressure
- Significant Revenue Growth: FatPipe reported total revenue of $4.1 million for Q3 FY2026, reflecting a 30% year-over-year increase, indicating strong demand for secure networking solutions despite poor overall market performance.
- Surge in Recurring Billings: The company achieved a 48% rise in monthly recurring billings, demonstrating the increasing popularity of its subscription services, which further solidifies its position in a competitive landscape.
- Market Environment Impact: Despite FatPipe's positive earnings report, its stock fell 10.38% due to the broader technology sector declining approximately 2.6%, highlighting the pressure of market sentiment on its share price.
- Mixed Technical Indicators: Currently, FatPipe's stock is trading 12.2% above its 20-day simple moving average but 37.7% below its 100-day SMA, indicating potential struggles to maintain long-term momentum, with an approximate 82.38% decline over the past 12 months.
See More
U.S. Stocks Decline Midway, Nasdaq Drops Over 1%
- Market Performance: U.S. stocks traded lower midway through the session, with the Nasdaq Composite falling over 1%, the Dow down 0.19% to 49,316.23, and the S&P 500 dropping 0.62% to 6,933.29, indicating a weakening market sentiment.
- Sector Dynamics: In sector performance, materials stocks gained 1.8%, while information technology stocks fell by 1.9%, reflecting differing investor confidence across sectors, which may influence future capital flows.
- Pfizer Earnings: Pfizer Inc. (NYSE:PFE) reported fourth-quarter adjusted earnings of 66 cents, exceeding the market expectation of 57 cents, although sales fell 1% year-over-year to $17.56 billion, still surpassing the consensus of $16.96 billion, demonstrating resilience in a competitive market.
- International Markets: Asian markets closed higher, with Japan's Nikkei surging 3.92% and China's Shanghai Composite rising 1.29%, indicating a divergence in global market trends that may exert pressure on U.S. markets.
See More
U.S. Stocks Rise in Morning Trading, Dow Up 100 Points
- Dow Jones Performance: The Dow Jones index gained approximately 100 points in morning trading on Tuesday, rising 0.20% to 49,508.59, indicating a positive market sentiment that may attract more investor interest in the economic recovery.
- NASDAQ and S&P 500 Rise: The NASDAQ increased by 0.26% to 23,654.18, while the S&P 500 also rose by 0.09% to 6,984.74, reflecting a broad recovery in tech and large-cap stocks, which enhances overall market confidence.
- PepsiCo Earnings Beat Expectations: PepsiCo, Inc. (NASDAQ:PEP) reported fourth-quarter adjusted earnings per share of $2.26, surpassing the analyst consensus estimate of $2.24, with quarterly sales of $29.34 billion, a 5.6% year-over-year increase, showcasing its strong market performance and brand strength.
- Commodity Market Movements: Oil prices rose by 1.1% to $62.83, gold increased by 6.1% to $4,936.80, and silver surged by 13.1% to $87.060, reflecting heightened demand for safe-haven assets, which may influence future investment strategies.
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Teradyne Q4 Earnings Beat Estimates, Shares Surge
- Earnings Surprise: Teradyne's fourth-quarter earnings report exceeded market expectations on both revenue and earnings per share, leading to a 22.2% surge in pre-market trading to $305.00, indicating strong investor confidence in its financial performance.
- Optimistic Outlook: The company forecasts first-quarter adjusted EPS between $1.89 and $2.25, significantly above the analyst estimate of $1.24, showcasing robust profitability and market demand.
- Revenue Projections Raised: Teradyne anticipates first-quarter revenue in the range of $1.15 billion to $1.25 billion, well above the analyst expectation of $927.72 million, reflecting the company's competitive edge and growth potential in the market.
- Positive Market Reaction: The substantial increase in stock price not only reflects investor approval of the company's performance but may also attract more institutional investors, potentially driving further stock price appreciation.
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FatPipe Reports 27% Revenue Growth in Q3
- Significant Revenue Growth: FatPipe, Inc. reported Q3 revenue of $4.1 million for fiscal year 2025, marking a 27% increase compared to the same period last year, which underscores the company's strong performance amid rising market demand and solidifies its market position.
- Adjusted EBITDA Performance: For the three months ended December 31, 2025, adjusted EBITDA was $0.59 million, with an EBITDA margin of approximately 14%, reflecting operational leverage as the company scales and invests in growth, slightly up from $0.57 million in Q3 of fiscal 2025.
- Healthy Cash Flow: As of December 31, 2025, FatPipe had cash and cash equivalents of $6.2 million, providing flexibility to support ongoing growth initiatives, ensuring funding support while expanding its sales organization and channel partner network.
- Sales Network Expansion: The company is actively expanding its sales organization and channel partner network to support increasing pipeline activity, indicating FatPipe's proactive strategy to address growing market demand and enhance its competitive edge for the future.
See More
Three Small IPOs Set to Raise $46 Million Next Week
- IPO Plans: Three small IPOs, including Apimeds Pharmaceuticals, Baiya International, and FatPipe, are set to raise $20 million, $13 million, and $5 million respectively, totaling $46 million, indicating sustained market interest in emerging companies.
- Market Positioning: Apimeds focuses on developing a bee venom therapy for knee osteoarthritis, Baiya International provides recruitment services, and FatPipe offers enterprise-grade network solutions, all seeking to expand their market share in their respective fields.
- Market Dynamics: With seven companies expected to release street research reports and six lock-up periods expiring, market activity is anticipated to increase, potentially attracting more investor attention to newly listed companies.
- IPO Market Performance: As of March 6, 2025, the Renaissance IPO Index is down 10.3% year-to-date, while the International IPO Index is up 8.1%, reflecting a divergence in market performance that may influence investor decisions.
See More
FatPipe Reports 30% Revenue Growth in Q3 Amid Market Pressure
- Significant Revenue Growth: FatPipe reported total revenue of $4.1 million for Q3 FY2026, reflecting a 30% year-over-year increase, indicating strong demand for secure networking solutions despite poor overall market performance.
- Surge in Recurring Billings: The company achieved a 48% rise in monthly recurring billings, demonstrating the increasing popularity of its subscription services, which further solidifies its position in a competitive landscape.
- Market Environment Impact: Despite FatPipe's positive earnings report, its stock fell 10.38% due to the broader technology sector declining approximately 2.6%, highlighting the pressure of market sentiment on its share price.
- Mixed Technical Indicators: Currently, FatPipe's stock is trading 12.2% above its 20-day simple moving average but 37.7% below its 100-day SMA, indicating potential struggles to maintain long-term momentum, with an approximate 82.38% decline over the past 12 months.
See More
U.S. Stocks Decline Midway, Nasdaq Drops Over 1%
- Market Performance: U.S. stocks traded lower midway through the session, with the Nasdaq Composite falling over 1%, the Dow down 0.19% to 49,316.23, and the S&P 500 dropping 0.62% to 6,933.29, indicating a weakening market sentiment.
- Sector Dynamics: In sector performance, materials stocks gained 1.8%, while information technology stocks fell by 1.9%, reflecting differing investor confidence across sectors, which may influence future capital flows.
- Pfizer Earnings: Pfizer Inc. (NYSE:PFE) reported fourth-quarter adjusted earnings of 66 cents, exceeding the market expectation of 57 cents, although sales fell 1% year-over-year to $17.56 billion, still surpassing the consensus of $16.96 billion, demonstrating resilience in a competitive market.
- International Markets: Asian markets closed higher, with Japan's Nikkei surging 3.92% and China's Shanghai Composite rising 1.29%, indicating a divergence in global market trends that may exert pressure on U.S. markets.
See More
U.S. Stocks Rise in Morning Trading, Dow Up 100 Points
- Dow Jones Performance: The Dow Jones index gained approximately 100 points in morning trading on Tuesday, rising 0.20% to 49,508.59, indicating a positive market sentiment that may attract more investor interest in the economic recovery.
- NASDAQ and S&P 500 Rise: The NASDAQ increased by 0.26% to 23,654.18, while the S&P 500 also rose by 0.09% to 6,984.74, reflecting a broad recovery in tech and large-cap stocks, which enhances overall market confidence.
- PepsiCo Earnings Beat Expectations: PepsiCo, Inc. (NASDAQ:PEP) reported fourth-quarter adjusted earnings per share of $2.26, surpassing the analyst consensus estimate of $2.24, with quarterly sales of $29.34 billion, a 5.6% year-over-year increase, showcasing its strong market performance and brand strength.
- Commodity Market Movements: Oil prices rose by 1.1% to $62.83, gold increased by 6.1% to $4,936.80, and silver surged by 13.1% to $87.060, reflecting heightened demand for safe-haven assets, which may influence future investment strategies.
See More
Teradyne Q4 Earnings Beat Estimates, Shares Surge
- Earnings Surprise: Teradyne's fourth-quarter earnings report exceeded market expectations on both revenue and earnings per share, leading to a 22.2% surge in pre-market trading to $305.00, indicating strong investor confidence in its financial performance.
- Optimistic Outlook: The company forecasts first-quarter adjusted EPS between $1.89 and $2.25, significantly above the analyst estimate of $1.24, showcasing robust profitability and market demand.
- Revenue Projections Raised: Teradyne anticipates first-quarter revenue in the range of $1.15 billion to $1.25 billion, well above the analyst expectation of $927.72 million, reflecting the company's competitive edge and growth potential in the market.
- Positive Market Reaction: The substantial increase in stock price not only reflects investor approval of the company's performance but may also attract more institutional investors, potentially driving further stock price appreciation.
See More
FatPipe Reports 27% Revenue Growth in Q3
- Significant Revenue Growth: FatPipe, Inc. reported Q3 revenue of $4.1 million for fiscal year 2025, marking a 27% increase compared to the same period last year, which underscores the company's strong performance amid rising market demand and solidifies its market position.
- Adjusted EBITDA Performance: For the three months ended December 31, 2025, adjusted EBITDA was $0.59 million, with an EBITDA margin of approximately 14%, reflecting operational leverage as the company scales and invests in growth, slightly up from $0.57 million in Q3 of fiscal 2025.
- Healthy Cash Flow: As of December 31, 2025, FatPipe had cash and cash equivalents of $6.2 million, providing flexibility to support ongoing growth initiatives, ensuring funding support while expanding its sales organization and channel partner network.
- Sales Network Expansion: The company is actively expanding its sales organization and channel partner network to support increasing pipeline activity, indicating FatPipe's proactive strategy to address growing market demand and enhance its competitive edge for the future.
See More
Three Small IPOs Set to Raise $46 Million Next Week
- IPO Plans: Three small IPOs, including Apimeds Pharmaceuticals, Baiya International, and FatPipe, are set to raise $20 million, $13 million, and $5 million respectively, totaling $46 million, indicating sustained market interest in emerging companies.
- Market Positioning: Apimeds focuses on developing a bee venom therapy for knee osteoarthritis, Baiya International provides recruitment services, and FatPipe offers enterprise-grade network solutions, all seeking to expand their market share in their respective fields.
- Market Dynamics: With seven companies expected to release street research reports and six lock-up periods expiring, market activity is anticipated to increase, potentially attracting more investor attention to newly listed companies.
- IPO Market Performance: As of March 6, 2025, the Renaissance IPO Index is down 10.3% year-to-date, while the International IPO Index is up 8.1%, reflecting a divergence in market performance that may influence investor decisions.
See More
