FatPipe Inc. (NASDAQ: FATN) shares were trading up modestly in early session activity after the company reported third quarter fiscal 2026 results, with the stock up around previous session levels reflecting cautious sentiment following the earnings release. The shares remain well below their 52-week high and closer to the lower end of their annual trading range, highlighting continued volatility in the micro-cap name. Limited analyst coverage with no new upgrades or downgrades or price-target changes reported today.
Quarterly Results
FatPipe reported total revenue of $4.1 million for the quarter ended Dec. 31, 2025, up 30% from the year-ago quarter, driven chiefly by growth in its subscription business segment. Monthly Recurring Billings (MRB) grew 48% year-over-year, underscoring strong adoption of recurring revenue offerings. Total quarterly billings increased 27% vs. Q3 FY2025. Adjusted EBITDA was $0.59 million, representing an approximate 14% margin, up slightly from the prior year quarter. Cash and cash equivalents stood at $6.2 million as of the quarter end.
Operational Context & Trends
FatPipe stated that increased recurring billings, customer renewals and new customer wins principally drove revenue growth. Multiple large multi-site SD-WAN deployments across education, financial services and enterprise verticals contributed to this growth. FatPipe continued to expand its sales organisation and channel partner network to support pipeline growth. Management reiterated the company’s execution on its growth strategy centered on SD-WAN and single-stack cybersecurity solutions.
Year-Over-Year and Full-Year Context
FatPipe’s Q3 results reflect sequential revenue increases from earlier fiscal 2026 quarters, with reported revenue of $3.9 million in Q1 and approximately $4.0 million in Q2. The Q3 performance continues a pattern of high recurring billing growth while maintaining positive adjusted EBITDA. Compared with the prior fiscal year, the recurring revenue mix has strengthened notably.
Market Reaction & Analyst Activity
Analysts reported no upgrades, downgrades, or price-target changes tied to today’s results. FatPipe still receives thin broader analyst coverage, and consensus price targets remain generally unavailable. MarketBeat displays a single sell rating in its consensus data, but analysts announced no changes linked to the earnings release.