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what it is
FatPipe sells software that keeps a company’s network fast, secure, and watchable across offices, clouds, and remote workers.
how it gets paid
Last year Fatpipe made $16M in revenue. SD-WAN was the main engine at $6.4M, or 40% of sales.
why growth slowed
Revenue fell 8.8% last year (fiscal year to March). The latest reported quarter was about $4.1M in sales, up roughly 30% vs. prior year—not a $12M single quarter.
what just happened
Latest quarter revenue was about $4.1M, with gross margin near the high‑80% range (software‑like economics).
At a glance
n/a balance sheet
43.6x trailing p/e — you're paying up for this one
12.3% return on capital — nothing to write home about
$0.15 fy2024 eps est
$16M fy2024 rev est
What they do
FatPipe sells software that keeps a company’s network fast, secure, and watchable across offices, clouds, and remote workers.
This business lives on software, not hardware. Recent quarters show software-like gross margin—often high‑80%s to low‑90%s line-item to line-item—so most of each incremental sales dollar can stay in the business. Once your traffic, security rules, and monitoring sit inside one network stack, switching vendors is a chore you feel in downtime and retraining.
How they make money
$16M
annual revenue · their business grew -8.8% last year
SD-WAN
$6.4M
SASE
$3.8M
Network monitoring service
$2.1M
Technical support services
$2.0M
Professional and training services
$1.7M
The products that matter
software-defined networking
SD-WAN
core growth engine
management said core SD-WAN software helped drive Q3 FY26 revenue to $4.09M, up 30% from last year. that's the center of the story.
30% growth
network security software
Secure Access Service Edge (SASE)
recurring billings exposure
this sits inside the recurring revenue push that drove monthly recurring billings up 48% in Q3 FY26. if that pace holds, the recurring software case gets stronger.
48% billing growth
implementation and support
Professional Services
$1.7M · ~11% of revenue
it's only $1.7M of the $16M business and was flat, which tells you the thesis is not services leverage. it's software adoption.
~11% of revenue
Key numbers
91.3%
gross margin
Gross margin → money left after delivering the product → so what: one quarterly KPI print can read ~91%; another line in earnings here uses ~88%— both are software economics, not box shipping.
24.7%
operating margin
Operating margin → profit from the actual business → so what: FatPipe is already profitable on a small revenue base.
43.6x
trailing p/e
P/E → how much you pay for each dollar of earnings → so what: the stock is cheap only if earnings keep rising.
$5M
long-term debt
Debt → money the company owes → so what: leverage is real when the equity value is only about $26 million.
Financial health
n/a
strength
- balance sheet grade n/a
- long-term debt $5M (17% of capital)
Balance-sheet grade is n/a in our data— debt is modest vs ~$26M market cap; still treat micro-cap liquidity as its own risk.
Total return vs. market
Return history isn't available for FATN right now.
source: institutional data · return history unavailable
What just happened
results filed
Revenue in the latest quarter was about $4.1M, up roughly 30% vs. prior year, with gross margin near the high‑80%s.
Public filings for Q3 fiscal 2026 (quarter ended Dec. 31, 2025) show about $4.1M in revenue and roughly 30% vs. prior year growth—consistent with the product section—not a $12M quarter or ~193% vs. prior year revenue growth.
~$4.1M
quarter revenue
~30%
rev vs. prior year
~88%
gross margin
the number that mattered
The ~$4.1M quarter matters because it shows real quarter‑over‑quarter demand on a ~$16M annual base—lumpy, but not the mis‑scaled “$12M quarter” figure.
source: company earnings report, 2026
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What could go wrong
The #1 risk is sales-expansion execution against a 43.6x earnings multiple.
med
valuation leaves no cushion
At 43.6x trailing earnings on just $16M in revenue, this stock is priced for continued 30% growth. Small misses do not stay small when the starting multiple is this high.
If growth slows or EPS disappoints, multiple compression can do damage even if the business remains profitable.
med
there is no moat
Fatpipe operates in a segment with 47 public competitors. High gross margin helps. It does not magically create pricing power, distribution scale, or customer lock-in.
That exposes sales efficiency, customer acquisition cost, and retention to a market where bigger rivals can outspend it.
med
partner and hiring plan may not convert
Management's March 2026 plan relies on tripling sales headcount and activating signed partners. That's operationally heavy for a $26M market cap company.
If those hires and partners fail to turn into recurring billings, the 30% growth story can stall faster than the market expects.
A company this small, this expensive, and this dependent on execution can still work. It just has to keep proving it quarter after quarter.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
next earnings vs. $0.06 eps consensus
Consensus means the average published estimate. In human-speak: the next report has a very clear hurdle, and a miss would be hard to wave away at 43.6x earnings.
trend
recurring billings staying above revenue growth
Monthly recurring billings grew 48% in Q3 FY26 while revenue grew 30%. If that spread holds, the business mix is improving. If it narrows fast, the story gets less interesting.
calendar
proof that the sales-team expansion is real
The March 2026 plan to triple sales headcount is bold. The follow-through to look for is customer wins, partner activation, and any sign the added spend is producing actual demand.
risk
whether institutional interest broadens beyond one filing
A BlackRock filing showed a 746.64% increase in ownership. That's notable. It is not yet a trend. You want to see whether other funds follow, or whether this stays a one-off curiosity.
Analyst rankings
coverage depth
thin
Only limited published coverage is visible here. in human-speak, there is no broad wall street view to hide behind.
published target
$5
Zacks initiated at $5 on Feb 18, 2026. That is one opinion, not a full analyst chorus.
source: institutional data
Institutional activity
institutional ownership data for FATN is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$2
current price
n/a
target midpoint · n/a from current
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