FatPipe Posts Strong Third Quarter Results Driven by SD-WAN Demand
Salt Lake City, Monday, 2 February 2026.
FatPipe Inc. has demonstrated significant financial improvement in its fiscal third quarter of 2026, released today, February 2. While total revenue climbed by 30 percent, the most compelling metric is the 48 percent surge in Monthly Recurring Revenue (MRR), signaling a successful consolidation of its customer base. This growth, fueled by increasing enterprise demand for secure SD-WAN and cybersecurity architectures, has propelled the company to positive cash flow. This shift represents a critical operational milestone, validating the company’s strategy to modernize critical infrastructure for global clients.
Financial Performance and Recurring Revenue Growth
For the quarter ending December 31, 2025, FatPipe reported total revenues of $4.1 million, marking a 30 percent increase compared to the same period in fiscal year 2025 [1]. This top-line growth was accompanied by a solid bottom-line performance, with Adjusted EBITDA reaching $0.59 million, up from $0.57 million in the prior year’s third quarter [1]. This represents an EBITDA growth of approximately 3.509 percent year-over-year. The company’s ability to generate positive cash flow this quarter contrasts with previous operational challenges, resulting in a cash and cash equivalents balance of $6.2 million as of the quarter’s end [1]. Crucial to this financial stability is the 27 percent increase in Total Quarterly Billings, which underscores the growing adoption of FatPipe’s solutions [1].
Strategic Expansion in SD-WAN Markets
The driving force behind these numbers appears to be a strategic pivot toward modernizing critical infrastructure. Dr. Ragula Bhaskar, CEO of FatPipe, attributed the momentum to customers seeking to reduce complexity and cost while deploying secure, high-performance SD-WAN and cybersecurity solutions [1]. The company, which holds 13 U.S. patents and operates through a network of over 200 resellers worldwide, has seen particular success with its single-stack cybersecurity offering [1]. Sanchaita Datta, President and CTO, noted that the company supported multiple large-scale deployments during the quarter, highlighting a market shift where organizations are prioritizing resilient connectivity and integrated security [1].
Market Reaction and Stock Activity
Following the release of these results on February 2, 2026, FatPipe’s stock (NASDAQ: FATN) saw active trading. Shares traded between a low of $1.75 and a high of $3.76, eventually pricing at $3.37 [4]. This current price point represents a significant recovery, trading approximately 92.571 percent above the day’s low [4]. With a market capitalization now standing at $24.79 million, the company’s valuation reflects a Price-to-Earnings (P/E) ratio of 57.42, suggesting that investors may be pricing in expectations of continued growth based on the company’s expanding recurring revenue streams and improved cash flow position [4].