Fatpipe (FATN)
Market Price (7/7/2026): $5.94 | Market Cap: $83.0 MilSector: Information Technology | Industry: Systems Software
Fatpipe (FATN)
Market Price (7/7/2026): $5.94Market Cap: $83.0 MilSector: Information TechnologyIndustry: Systems Software
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.9% | Weak multi-year price returns2Y Excs Rtn is -92%, 3Y Excs Rtn is -126% | Stock price has recently run up significantly6M Rtn6 month market price return is 180% Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -4.1%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -4.4% Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 144% High stock price volatilityVol 12M is 148% Key risksFATN key risks include [1] heavy revenue concentration with a single distribution partner and [2] operating at a net loss while its valuation already prices in substantial future growth. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.9% |
| Weak multi-year price returns2Y Excs Rtn is -92%, 3Y Excs Rtn is -126% |
| Stock price has recently run up significantly6M Rtn6 month market price return is 180% |
| Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -4.1%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -4.4% |
| Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 144% |
| High stock price volatilityVol 12M is 148% |
| Key risksFATN key risks include [1] heavy revenue concentration with a single distribution partner and [2] operating at a net loss while its valuation already prices in substantial future growth. |
Qualitative Assessment
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Updated on 7/2/2026
Fatpipe (FATN) stock has gained about 145% since 3/31/2026 because of the following key factors:
1. Exceptional Fiscal Year 2026 Financial Performance.
Fatpipe (FATN) reported robust financial results for its fiscal fourth quarter and full fiscal year 2026, both ending March 31, 2026, which were announced on May 18, 2026. The company's Q4 fiscal 2026 revenue surged by 90% year-over-year to $7.2 million, dramatically improving its net income to $4.0 million from a $0.37 million loss in Q4 fiscal 2025. Additionally, Q4 fiscal 2026 Monthly Recurring Billings grew 56% year-over-year. For the full fiscal year 2026, revenue increased by 18% to $19.2 million, and net income rose by 154% to $5.0 million. This strong performance, driven by increased recurring billings, customer renewals, and new customer acquisitions, signaled a significant turnaround and profitability inflection point for the company.
2. Positive Analyst Coverage and Upgraded Price Targets.
Following the strong preliminary Q4 fiscal 2026 guidance and official results, multiple investment research firms issued positive outlooks and raised price targets for Fatpipe. On May 1, 2026, D. Boral Capital reiterated a "Buy" rating and an $8.00 price target. Subsequently, on May 14, 2026, Morningstar reported that Fatpipe received analyst coverage with price targets ranging from $6 to $12 per share, reflecting increasing institutional awareness. By May 22, 2026, Zacks Small-Cap Research raised its valuation target from $6.00 to $6.40 per share, citing the strong fiscal fourth-quarter results and increased earnings estimates.
Show more
Fatpipe (FATN) stock has gained about 145% since 3/31/2026 because of the following key factors:
1. Exceptional Fiscal Year 2026 Financial Performance.
Fatpipe (FATN) reported robust financial results for its fiscal fourth quarter and full fiscal year 2026, both ending March 31, 2026, which were announced on May 18, 2026. The company's Q4 fiscal 2026 revenue surged by 90% year-over-year to $7.2 million, dramatically improving its net income to $4.0 million from a $0.37 million loss in Q4 fiscal 2025. Additionally, Q4 fiscal 2026 Monthly Recurring Billings grew 56% year-over-year. For the full fiscal year 2026, revenue increased by 18% to $19.2 million, and net income rose by 154% to $5.0 million. This strong performance, driven by increased recurring billings, customer renewals, and new customer acquisitions, signaled a significant turnaround and profitability inflection point for the company.
2. Positive Analyst Coverage and Upgraded Price Targets.
Following the strong preliminary Q4 fiscal 2026 guidance and official results, multiple investment research firms issued positive outlooks and raised price targets for Fatpipe. On May 1, 2026, D. Boral Capital reiterated a "Buy" rating and an $8.00 price target. Subsequently, on May 14, 2026, Morningstar reported that Fatpipe received analyst coverage with price targets ranging from $6 to $12 per share, reflecting increasing institutional awareness. By May 22, 2026, Zacks Small-Cap Research raised its valuation target from $6.00 to $6.40 per share, citing the strong fiscal fourth-quarter results and increased earnings estimates.
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Updated on 7/2/2026
Fatpipe (FATN) stock has gained about 145% since 3/31/2026 because of the following key factors:
1. Exceptional Fiscal Year 2026 Financial Performance.
Fatpipe (FATN) reported robust financial results for its fiscal fourth quarter and full fiscal year 2026, both ending March 31, 2026, which were announced on May 18, 2026. The company's Q4 fiscal 2026 revenue surged by 90% year-over-year to $7.2 million, dramatically improving its net income to $4.0 million from a $0.37 million loss in Q4 fiscal 2025. Additionally, Q4 fiscal 2026 Monthly Recurring Billings grew 56% year-over-year. For the full fiscal year 2026, revenue increased by 18% to $19.2 million, and net income rose by 154% to $5.0 million. This strong performance, driven by increased recurring billings, customer renewals, and new customer acquisitions, signaled a significant turnaround and profitability inflection point for the company.
2. Positive Analyst Coverage and Upgraded Price Targets.
Following the strong preliminary Q4 fiscal 2026 guidance and official results, multiple investment research firms issued positive outlooks and raised price targets for Fatpipe. On May 1, 2026, D. Boral Capital reiterated a "Buy" rating and an $8.00 price target. Subsequently, on May 14, 2026, Morningstar reported that Fatpipe received analyst coverage with price targets ranging from $6 to $12 per share, reflecting increasing institutional awareness. By May 22, 2026, Zacks Small-Cap Research raised its valuation target from $6.00 to $6.40 per share, citing the strong fiscal fourth-quarter results and increased earnings estimates.
3. Strategic Product Innovation and Industry Recognition.
Fatpipe introduced key product enhancements and received multiple industry awards during the period. In early June 2026, the company announced SATBoost, designed to enhance LEO satellite performance by up to 300%. Additionally, Fatpipe was recognized with the 2026 MSP Today Product of the Year Award for its Secure SD-WAN & Total Security 360 solution on May 27, 2026. The company also received two 2026 Visionary Spotlight Awards from ChannelVision Magazine: one for SD-WAN on June 18, 2026, and another for Total Security 360 on June 22, 2026.
4. Continued Inclusion in Russell Microcap® Index.
Fatpipe maintained its position in the Russell Microcap® Index following the June 2026 Russell indexes semi-annual reconstitution, effective when the U.S. market opened on June 29, 2026. This continued inclusion highlights growing institutional awareness and market recognition of Fatpipe's momentum and strategic positioning in the converged networking and cybersecurity infrastructure markets.
Show less
Fatpipe (FATN) stock has gained about 145% since 3/31/2026 because of the following key factors:
1. Exceptional Fiscal Year 2026 Financial Performance.
Fatpipe (FATN) reported robust financial results for its fiscal fourth quarter and full fiscal year 2026, both ending March 31, 2026, which were announced on May 18, 2026. The company's Q4 fiscal 2026 revenue surged by 90% year-over-year to $7.2 million, dramatically improving its net income to $4.0 million from a $0.37 million loss in Q4 fiscal 2025. Additionally, Q4 fiscal 2026 Monthly Recurring Billings grew 56% year-over-year. For the full fiscal year 2026, revenue increased by 18% to $19.2 million, and net income rose by 154% to $5.0 million. This strong performance, driven by increased recurring billings, customer renewals, and new customer acquisitions, signaled a significant turnaround and profitability inflection point for the company.
2. Positive Analyst Coverage and Upgraded Price Targets.
Following the strong preliminary Q4 fiscal 2026 guidance and official results, multiple investment research firms issued positive outlooks and raised price targets for Fatpipe. On May 1, 2026, D. Boral Capital reiterated a "Buy" rating and an $8.00 price target. Subsequently, on May 14, 2026, Morningstar reported that Fatpipe received analyst coverage with price targets ranging from $6 to $12 per share, reflecting increasing institutional awareness. By May 22, 2026, Zacks Small-Cap Research raised its valuation target from $6.00 to $6.40 per share, citing the strong fiscal fourth-quarter results and increased earnings estimates.
3. Strategic Product Innovation and Industry Recognition.
Fatpipe introduced key product enhancements and received multiple industry awards during the period. In early June 2026, the company announced SATBoost, designed to enhance LEO satellite performance by up to 300%. Additionally, Fatpipe was recognized with the 2026 MSP Today Product of the Year Award for its Secure SD-WAN & Total Security 360 solution on May 27, 2026. The company also received two 2026 Visionary Spotlight Awards from ChannelVision Magazine: one for SD-WAN on June 18, 2026, and another for Total Security 360 on June 22, 2026.
4. Continued Inclusion in Russell Microcap® Index.
Fatpipe maintained its position in the Russell Microcap® Index following the June 2026 Russell indexes semi-annual reconstitution, effective when the U.S. market opened on June 29, 2026. This continued inclusion highlights growing institutional awareness and market recognition of Fatpipe's momentum and strategic positioning in the converged networking and cybersecurity infrastructure markets.
Show less
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Stock Movement Drivers
Fundamental Drivers
The 145.5% change in FATN stock from 3/31/2026 to 7/6/2026 was primarily driven by a 524.4% change in the company's Net Income Margin (%).| (LTM values as of) | 3312026 | 7062026 | Change |
|---|---|---|---|
| Stock Price ($) | 2.44 | 5.99 | 145.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 16 | 19 | 21.7% |
| Net Income Margin (%) | 4.1% | 25.9% | 524.4% |
| P/E Multiple | 52.0 | 16.8 | -67.6% |
| Shares Outstanding (Mil) | 14 | 14 | -0.3% |
| Cumulative Contribution | 145.5% |
Market Drivers
3/31/2026 to 7/6/2026| Return | Correlation | |
|---|---|---|
| FATN | 145.5% | |
| Market (SPY) | 15.5% | 7.4% |
| Sector (XLK) | 38.1% | 4.4% |
Fundamental Drivers
The 196.5% change in FATN stock from 12/31/2025 to 7/6/2026 was primarily driven by a 834.0% change in the company's Net Income Margin (%).| (LTM values as of) | 12312025 | 7062026 | Change |
|---|---|---|---|
| Stock Price ($) | 2.02 | 5.99 | 196.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 15 | 19 | 29.5% |
| Net Income Margin (%) | 2.8% | 25.9% | 834.0% |
| P/E Multiple | 68.3 | 16.8 | -75.3% |
| Shares Outstanding (Mil) | 14 | 14 | -0.5% |
| Cumulative Contribution | 196.5% |
Market Drivers
12/31/2025 to 7/6/2026| Return | Correlation | |
|---|---|---|
| FATN | 196.5% | |
| Market (SPY) | 10.5% | 10.8% |
| Sector (XLK) | 27.7% | 7.9% |
Fundamental Drivers
The -39.1% change in FATN stock from 6/30/2025 to 7/6/2026 was primarily driven by a -75.7% change in the company's P/E Multiple.| (LTM values as of) | 6302025 | 7062026 | Change |
|---|---|---|---|
| Stock Price ($) | 9.84 | 5.99 | -39.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 16 | 19 | 17.9% |
| Net Income Margin (%) | 12.0% | 25.9% | 116.1% |
| P/E Multiple | 69.2 | 16.8 | -75.7% |
| Shares Outstanding (Mil) | 14 | 14 | -1.7% |
| Cumulative Contribution | -39.1% |
Market Drivers
6/30/2025 to 7/6/2026| Return | Correlation | |
|---|---|---|
| FATN | -39.1% | |
| Market (SPY) | 22.6% | 18.9% |
| Sector (XLK) | 45.6% | 15.6% |
Fundamental Drivers
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Market Drivers
6/30/2023 to 7/6/2026| Return | Correlation | |
|---|---|---|
| FATN | ||
| Market (SPY) | 75.5% | 1.8% |
| Sector (XLK) | 115.1% | 2.9% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| FATN Return | - | - | - | - | -84% | 196% | -54% |
| Peers Return | 8% | -42% | 55% | 11% | -5% | 0% | 4% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 9% | 99% |
Monthly Win Rates [3] | |||||||
| FATN Win Rate | - | - | - | - | 22% | 43% | |
| Peers Win Rate | 52% | 35% | 60% | 62% | 54% | 50% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 43% | |
Max Drawdowns [4] | |||||||
| FATN Max Drawdown | - | - | - | - | - | -46% | |
| Peers Max Drawdown | -22% | -53% | -30% | -35% | -34% | -37% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: GEN, PATH, CVLT, S, AIBZ.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 7/6/2026 (YTD)
How Low Can It Go
FATN has limited trading history. Below is the Information Technology sector ETF (XLK) in its place.
| Event | XLK | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -25.7% | -18.8% |
| % Gain to Breakeven | 34.5% | 23.1% |
| Time to Breakeven | 65 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -17.0% | -7.8% |
| % Gain to Breakeven | 20.4% | 8.5% |
| Time to Breakeven | 92 days | 18 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -10.0% | -9.5% |
| % Gain to Breakeven | 11.2% | 10.5% |
| Time to Breakeven | 15 days | 24 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -33.1% | -24.5% |
| % Gain to Breakeven | 49.5% | 32.4% |
| Time to Breakeven | 246 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -31.2% | -33.7% |
| % Gain to Breakeven | 45.2% | 50.9% |
| Time to Breakeven | 78 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -23.8% | -19.2% |
| % Gain to Breakeven | 31.2% | 23.8% |
| Time to Breakeven | 100 days | 105 days |
In The Past
State Street Technology Select Sector SPDR ETF's stock fell -25.7% during the 2025 US Tariff Shock. Such a loss loss requires a 34.5% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
FATN has limited trading history. Below is the Information Technology sector ETF (XLK) in its place.
| Event | XLK | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -25.7% | -18.8% |
| % Gain to Breakeven | 34.5% | 23.1% |
| Time to Breakeven | 65 days | 79 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -33.1% | -24.5% |
| % Gain to Breakeven | 49.5% | 32.4% |
| Time to Breakeven | 246 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -31.2% | -33.7% |
| % Gain to Breakeven | 45.2% | 50.9% |
| Time to Breakeven | 78 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -23.8% | -19.2% |
| % Gain to Breakeven | 31.2% | 23.8% |
| Time to Breakeven | 100 days | 105 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -51.5% | -53.4% |
| % Gain to Breakeven | 106.2% | 114.4% |
| Time to Breakeven | 797 days | 1085 days |
In The Past
State Street Technology Select Sector SPDR ETF's stock fell -25.7% during the 2025 US Tariff Shock. Such a loss loss requires a 34.5% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Fatpipe (FATN)
FatPipe (FATN) is a leading provider of enterprise-class, application-aware, and secure software-defined wide area network (SD-WAN) solutions. The company addresses the growing complexity and critical importance of IT network infrastructure for organizations. Amidst increasing demands from remote work, expanding connectivity points, and sophisticated cyber threats, FatPipe helps businesses maintain network reliability, extensibility, durability, and security, while providing deep insights into their network operations.
The company offers an integrated suite of software solutions, typically provided as subscription services, designed to support mission-critical applications across various network environments including cloud, hybrid cloud, and on-premise. FatPipe's core product offerings include SD-WAN, Secure Access Service Edge (SASE), and Network Monitoring Service (NMS) software. These solutions are built to automate complex network optimization requirements, ensuring customers have a seamless, dependable, and secure connectivity infrastructure.
FatPipe serves a diverse customer base, including large enterprises, communication service providers, security service providers, government organizations, and middle-market companies. The markets for these network services are global and experiencing significant growth; for example, the SD-WAN market is projected to grow from $4.5 billion in 2022 to over $17.6 billion in 2030. Similarly, the SASE and NMS markets are also forecast for substantial expansion, indicating a strong market opportunity for FatPipe's offerings.
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Here are 1-3 brief analogies to describe Fatpipe:
- Like Cisco, but focused on software-defined network management and security.
- Like Palo Alto Networks, but for comprehensive enterprise network optimization and secure access.
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- SD-WAN (Software-Defined Wide Area Network): These software solutions optimize an organization's wide area network infrastructure for reliable and secure application performance.
- SASE (Secure Access Service Edge): These platforms integrate networking and security functions to provide secure and flexible access for users regardless of their location.
- NMS (Network Monitoring Service): These software solutions offer comprehensive insights and tools for managing, monitoring, and securing an organization's network operations.
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Fatpipe (symbol: FATN) sells primarily to other companies and organizations.
The provided background information does not identify specific customer companies by name or symbol. Instead, it describes the categories of organizations that Fatpipe serves:
- Enterprises
- Communication service providers
- Security service providers
- Government organizations
- Middle-market companies
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Dr. Ragula Bhaskar, Ph.D. Chief Executive Officer
Dr. Ragula Bhaskar is a co-founder and the Chief Executive Officer of FatPipe, appointed in October 2009. He is the visionary behind 14 FatPipe patents. Dr. Bhaskar holds 32 publications in Engineering from his time as a tenured associate professor at the University of Utah. He served as Chairman of the Board for the Governor's Office of Economic Development and Chairman of the Living Planet Aquarium. He earned dual M.S. degrees in Engineering and Operations Research, an M.S. in Finance, and a Ph.D. in Engineering from Penn State University in six years. He initially founded Fat Pipe Networks as a consulting company and later established it as a full-fledged firm after significant financing rounds in 2000 and 2002. He was also profiled by the Utah Economic Development Board as one of the Top 25 High Tech CEOs in Utah and has consulted for companies like Utah Power and Light, Cyprus, and FMC.
Eric Sherb Chief Financial Officer
Eric Sherb was appointed Chief Financial Officer on April 24, 2025. He brings over 15 years of experience in accounting advisory, auditing, and mergers and acquisitions. Before joining FatPipe, Mr. Sherb founded EMS Consulting Services LLC in 2019, an accounting advisory firm assisting entrepreneurs, start-ups, and small businesses. His prior experience includes contributions to bookkeeping, consolidation, financial statement preparation and analysis, management and investor reporting, and financial modeling. He was also associated with PricewaterhouseCoopers and other mid-size audit and consulting firms. Mr. Sherb holds a Bachelor of Business Administration in Accounting and Finance from Emory University.
Sanchaita Datta Co-Founder, President and CTO
Sanchaita Datta, known as "Sanch," is a co-founder, President, and CTO of FatPipe Inc.. She possesses over 30 years of experience in computer networking and is the driving force behind FatPipe's core technology. Ms. Datta was recognized as the 2022 Silicon Slopes Hall of Fame CTO of the Year. She has significantly contributed to Utah's higher education system through her involvement with the Utah System of Higher Education Board, Utah Board of Regents, Utah Valley University, and Salt Lake Community College. Ms. Datta also serves as a Commissioner of the America250 Commission, Utah, and holds an M.S. in Electrical Engineering from Penn State.
Tom Aufiero Senior Vice President of Sales, Cybersecurity
Tom Aufiero was appointed Senior Vice President of Sales, Cybersecurity, bringing decades of senior sales leadership experience. Most recently, he served as SVP of Cybersecurity Sales at AT&T, where he led a $600 million sales team. At FatPipe, Mr. Aufiero focuses on expanding the company's cybersecurity sales and advancing new go-to-market initiatives.
Harish Motwani Executive Vice President of Strategic Business & Solution Sales
Harish Motwani is the Executive Vice President of Strategic Business and Solution Sales. He has extensive expertise from leadership roles in telecom and enterprise solutions. Mr. Motwani has a background in the Indian Telecom Service and held senior roles, including Executive Vice President at Reliance Communications Ltd., where he consistently drove growth and innovation. His expertise includes Next-Gen architecture technical knowledge and enterprise sales, which have improved network performance and maximized financial outcomes for enterprises. He delivered many "firsts" to Indian enterprises and was instrumental in securing high-value annual deals. Mr. Motwani holds a Bachelor's degree in Telecommunications Engineering from Samrat Ashok Technological Institute, Vidisha, and achieved a national ranking of 28th in the Indian Telecom Services, 1989 batch.
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The key risks for Fatpipe (FATN) are:
- Intense Competition and Rapid Technological Obsolescence: Fatpipe operates in a rapidly evolving and growing global market for SD-WAN, SASE, and NMS solutions. This dynamic environment necessitates continuous innovation to maintain competitive advantage. The risk lies in the potential for competitors to introduce more advanced solutions or for Fatpipe's offerings to become obsolete due to rapid technological advancements, challenging its market position and growth prospects.
- Cybersecurity Incidents and Reputational Damage: As a provider of secure network solutions, Fatpipe's business relies heavily on its ability to protect against sophisticated cyber threats and ensure network integrity. A significant security breach affecting its own systems or a failure of its solutions to protect customers from such threats could severely damage its reputation, erode customer trust, and lead to substantial financial and operational repercussions.
- Reliance on Market Growth and Subscription Customer Retention: Fatpipe's revenue model is largely based on subscription services for its SD-WAN, SASE, and NMS software solutions. While the markets for these services are projected to grow significantly, any slowdown in the anticipated market expansion or an inability to effectively acquire and retain subscription customers could adversely impact the company's revenue and profitability.
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The addressable markets for Fatpipe's main products and services are:
- SD-WAN solutions and services: The global market was estimated to grow from $4.5 billion in 2022 to over $17.6 billion in 2030.
- SASE software and platforms: The global market is projected to expand from $6.4 billion in 2022 to $27.2 billion in 2030.
- NMS (Network Monitoring Service): The global market is projected to grow from $2.0 billion to $4.4 billion from 2022 to 2030.
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Fatpipe (NASDAQ: FATN) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:
- Expansion of Salesforce and Partner Network: Fatpipe is actively focused on significantly expanding its direct sales force and building out channel partnerships with resellers and internet service providers. The company increased its sales force from 8 to 24 representatives by the end of 2025, with plans to add 12 more in new metropolitan markets, a strategy anticipated to accelerate growth in fiscal year 2027. The CEO's letter in March 2026 further outlined a sales expansion plan centered on hiring and partner activation.
- Increased Adoption and Market Growth of Core SD-WAN, SASE, and NMS Subscription Offerings: The company's business model emphasizes subscription-based software with recurring revenue. The total global market for SD-WAN solutions and services, Fatpipe's core offering, is projected to grow from $4.5 billion in 2022 to over $17.6 billion in 2030, at an approximate compound annual growth rate of 18.5%. Similarly, the SASE and NMS markets are also forecasted for substantial growth. Fatpipe reported a 48% year-over-year growth in Monthly Recurring Billings (MRR) for the third quarter of fiscal year 2026, indicating continued strong adoption of its subscription offerings.
- Revenue Contribution from the Recently Launched Total Security 360 Cybersecurity Solution: In October (likely 2025), Fatpipe launched "Total Security 360," an expanded single-stack cybersecurity platform, which is being offered as an upgrade to existing customers and is designed for on-premise deployments, particularly targeting small and medium-sized businesses (SMBs). This solution received the 2025 TMCnet Zero Trust Security Excellence Award, highlighting its potential to attract new customers and generate additional revenue.
- Strategic Acquisitions and Expansion of Product Offerings/Market Share: Fatpipe intends to evaluate opportunities to acquire new products and increase its market share. This proactive approach to growth through strategic leverage could enhance its product portfolio and expand its customer base, thereby contributing to future revenue.
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Capital Allocation Decisions for Fatpipe (FATN)
Share Issuance
- FatPipe priced its initial public offering (IPO) of 695,656 shares of common stock at $5.75 per share on April 7, 2025.
- The company anticipated gross proceeds of $4 million from the offering, before accounting for underwriting discounts and other related expenses.
- Upon closing the IPO on April 9, 2025, FatPipe issued and sold 791,024 shares of common stock, resulting in approximately $4.5 million in gross proceeds and $3.7 million in net proceeds.
Inbound Investments
- FatPipe received approximately $3.7 million in net proceeds from its Initial Public Offering in April 2025.
Outbound Investments
- FatPipe has not made any investments or acquisitions.
Capital Expenditures
- Capital expenditures reported in quarterly cash flow statements for 2024 and 2025 have been minimal, ranging from -$0.01 million to $0.04 million.
- The company's strategy includes expanding its sales team, activating signed partners, and onboarding new partners to drive sales growth, indicating a focus on operational investments rather than significant capital expenditures on physical assets.
Latest Trefis Analyses
| Title | Date | |
|---|---|---|
| DASHBOARDS | ||
| Would You Still Hold Fatpipe Stock If It Fell 30%? | 10/17/2025 |
| Title | |
|---|---|
| ARTICLES |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 14.99 |
| Mkt Cap | 6.2 |
| Rev LTM | 1,184 |
| Op Inc LTM | 101 |
| FCF LTM | 237 |
| FCF 3Y Avg | 276 |
| CFO LTM | 245 |
| CFO 3Y Avg | 285 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 18.9% |
| Rev Chg 3Y Avg | 15.1% |
| Rev Chg Q | 20.8% |
| QoQ Delta Rev Chg LTM | 4.8% |
| Op Inc Chg LTM | 19.0% |
| Op Inc Chg 3Y Avg | 24.0% |
| Op Mgn LTM | 8.9% |
| Op Mgn 3Y Avg | 2.0% |
| QoQ Delta Op Mgn LTM | 2.5% |
| CFO/Rev LTM | 20.7% |
| CFO/Rev 3Y Avg | 22.8% |
| FCF/Rev LTM | 20.0% |
| FCF/Rev 3Y Avg | 22.1% |
Price Behavior
Price Behavior
| Market Price | $5.99 | |
| Market Cap ($ Bil) | 0.1 | |
| First Trading Date | 04/08/2025 | |
| Distance from 52W High | -35.7% | |
| 50 Days | 200 Days | |
| DMA Price | $8.04 | $9.50 |
| DMA Trend | indeterminate | up |
| Distance from DMA | -25.5% | -36.9% |
| 3M | 1YR | |
| Volatility | 181.5% | 149.0% |
| Downside Capture | -501.30 | 208.80 |
| Upside Capture | 123.08 | 112.97 |
| Correlation (SPY) | 9.8% | 18.9% |
FATN Betas & Captures as of 6/30/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.97 | 0.91 | 1.93 | 1.46 | 2.30 | 0.33 |
| Up Beta | 3.06 | -1.93 | 3.87 | 3.60 | 3.76 | 0.19 |
| Down Beta | 8.53 | 10.29 | 9.85 | 3.38 | 2.44 | -1.18 |
| Up Capture | -302% | 89% | 137% | 130% | 166% | 11% |
| Bmk +ve Days | 11 | 24 | 40 | 67 | 140 | 429 |
| Stock +ve Days | 7 | 19 | 29 | 53 | 98 | 122 |
| Down Capture | -79% | -679% | -868% | -151% | 157% | 91% |
| Bmk -ve Days | 10 | 17 | 23 | 58 | 112 | 321 |
| Stock -ve Days | 14 | 22 | 32 | 68 | 148 | 179 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with FATN | |
|---|---|---|---|---|
| FATN | -32.9% | 149.0% | 0.37 | - |
| Sector ETF (XLK) | 45.6% | 24.1% | 1.50 | 15.5% |
| Equity (SPY) | 22.2% | 12.5% | 1.32 | 18.9% |
| Gold (GLD) | 23.7% | 27.8% | 0.75 | 9.5% |
| Commodities (DBC) | 21.2% | 18.6% | 0.90 | 11.0% |
| Real Estate (VNQ) | 12.4% | 13.8% | 0.61 | 3.0% |
| Bitcoin (BTCUSD) | -43.6% | 42.7% | -1.23 | 17.4% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with FATN | |
|---|---|---|---|---|
| FATN | -14.2% | 158.6% | 0.32 | - |
| Sector ETF (XLK) | 21.3% | 25.4% | 0.74 | 2.8% |
| Equity (SPY) | 13.5% | 17.1% | 0.61 | 1.8% |
| Gold (GLD) | 18.1% | 18.3% | 0.80 | 2.6% |
| Commodities (DBC) | 7.3% | 19.5% | 0.27 | 10.1% |
| Real Estate (VNQ) | 2.7% | 18.9% | 0.05 | -0.8% |
| Bitcoin (BTCUSD) | 14.2% | 53.6% | 0.45 | 9.7% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with FATN | |
|---|---|---|---|---|
| FATN | -7.4% | 158.6% | 0.32 | - |
| Sector ETF (XLK) | 24.9% | 24.8% | 0.91 | 2.8% |
| Equity (SPY) | 15.4% | 18.0% | 0.73 | 1.8% |
| Gold (GLD) | 12.3% | 16.1% | 0.62 | 2.6% |
| Commodities (DBC) | 5.8% | 18.0% | 0.25 | 10.1% |
| Real Estate (VNQ) | 5.4% | 20.7% | 0.22 | -0.8% |
| Bitcoin (BTCUSD) | 58.3% | 66.2% | 0.98 | 9.7% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 7/2/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/18/2026 | -7.8% | -19.4% | 7.0% |
| SUMMARY STATS | |||
| # Positive | 0 | 0 | 1 |
| # Negative | 1 | 1 | 0 |
| Median Positive | 7.0% | ||
| Median Negative | -7.8% | -19.4% | |
| Max Positive | 7.0% | ||
| Max Negative | -7.8% | -19.4% | |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/18/2026 | -7.8% | -19.4% | 7.0% |
| SUMMARY STATS | |||
| # Positive | 0 | 0 | 1 |
| # Negative | 1 | 1 | 0 |
| Median Positive | 7.0% | ||
| Median Negative | -7.8% | -19.4% | |
| Max Positive | 7.0% | ||
| Max Negative | -7.8% | -19.4% | |
Insider Activity
Updated 6/18/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Bhaskar, Ragula | Direct | Buy | 3252026 | 1.45 | 20,000 | 29,000 | 3,343,361 | Form | |
| 2 | Datta, Sanchaita | Direct | Buy | 1282026 | 2.15 | 2,000 | 4,290 | 3,326,342 | Form | |
| 3 | Datta, Sanchaita | Direct | Buy | 1282026 | 2.12 | 1,000 | 2,125 | 3,291,077 | Form | |
| 4 | Datta, Sanchaita | Direct | Buy | 1282026 | 2.14 | 1,500 | 3,210 | 3,312,168 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Bhaskar, Ragula | Direct | Buy | 3252026 | 1.45 | 20,000 | 29,000 | 3,343,361 | Form | |
| 2 | Datta, Sanchaita | Direct | Buy | 1282026 | 2.15 | 2,000 | 4,290 | 3,326,342 | Form | |
| 3 | Datta, Sanchaita | Direct | Buy | 1282026 | 2.12 | 1,000 | 2,125 | 3,291,077 | Form | |
| 4 | Datta, Sanchaita | Direct | Buy | 1282026 | 2.14 | 1,500 | 3,210 | 3,312,168 | Form |
Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| Systems Software Resources |
| CNET |
| ZDNet |
| Gartner |
| Software Development Times |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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Core Cache Last Updated: 7/6/2026