Fatpipe Inc/UT (FATN) · Nov 4, 2026 · Earnings
Beat — Diluted EPS $0.09 vs ~$0.05 consensus
FatPipe’s Q2 earnings beat on EPS and profitability, though revenue missed consensus despite 22% year-over-year growth.
FatPipe is scaling a subscription-oriented SD-WAN, cybersecurity, and network-monitoring platform, with recurring billings and an expanded sales organization central to the growth plan. Its fiscal 2026 recurring billings rose about 14%, while the company had roughly doubled its sales headcount to build the pipeline.
The quarter beat on earnings quality, not top-line delivery. Diluted EPS of $0.09 was above the published consensus of roughly $0.05, but revenue of $4.83 million was below consensus near $4.94 million. That makes this a narrow earnings beat rather than an across-the-board outperformance. Revenue still grew 22% year over year, and the company moved from a small loss to $1.2 million of net income.
| Metric | Q2 2027 | Q2 2026 | Consensus |
|---|---|---|---|
| Revenue (Financial Highlights) | $4.83M (-2.2%) | $3.96M | $4.94M |
| Diluted EPS (Financial Highlights) | $0.09 | $0.00 | $0.05 |
| Net income (Financial Highlights) | $1.2M | -$0.04M | |
| Adjusted EBITDA (Financial Highlights) | $1.2M (+71%) | $0.7M | |
| Adjusted EBITDA margin (Financial Highlights) | 24.1% |
Profitability is the stronger signal for the current business transition. Adjusted EBITDA rose to $1.2 million, or a 24.1% margin, while revenue growth was attributed to recurring billings, renewals, and new customer wins. 〔0〕 This suggests the sales expansion and broader product platform are producing profitable growth, even though the quarter did not reach the market’s revenue hurdle.
The miss is limited but keeps execution under scrutiny. Revenue was only modestly below consensus, so it does not overturn the underlying growth story; however, FatPipe provided no new full-year outlook or quantified booking target in this release. The next proof point is whether recurring billings and channel expansion convert into sustained quarterly revenue growth rather than another profitability-led beat.
Bottom line: FatPipe delivered a narrow earnings beat with notably better profitability, but revenue came in slightly below expectations. The business story remains intact and modestly improved, not materially rewritten.
Q3 FY2027 results, expected early February 2027
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