Key Highlights

  • FatPipe reported first-quarter fiscal 2027 Revenue of $5.03m, up 28 per cent from $3.9m a year earlier.
  • Net income rose to $1.2m and Diluted Earnings per Share were $0.09, with adjusted EBITDA of $1.3m.
  • Management said a recently announced $7m education-sector order could contribute roughly 30 to 35 per cent of its value in the September quarter.

Latest reported results

FatPipe, Inc. (NASDAQ:FATN), the Salt Lake City-based company, last reported results on 30 July 2026 for its first quarter of fiscal 2027, the quarter ended 30 June 2026. Revenue was $5.03m, up 28 per cent from $3.9m a year earlier. Net Income rose to $1.2m from $0.7m, and diluted earnings per share were $0.09, against $0.05 in the prior-year quarter. Adjusted EBITDA was $1.3m, roughly a 25.6 per cent margin, compared with $1.1m a year earlier.

The release did not give numerical guidance. As of 27 October 2026 no newer quarterly results have been identified, so this article rests on that July report and the accompanying earnings call.

What the call added

On the call, management said nearly all sales go through channel partners, with only a limited number of customers buying directly. Examples cited included state health agencies and supermarkets using its SATBOOST deployments. Gross Margin was about 92 to 93 per cent, although management indicated this could drift modestly lower as the company pursues larger deals.

Management said a recently announced $7m education-sector order could contribute roughly 30 to 35 per cent of its value in the September quarter as units are delivered. The sales team had grown to more than 30 people from 24 in March, with further hiring planned and first-year quotas of $2m per new representative. TD Synnex was added as a distributor. These items are management statements, not guarantees of future revenue.

Why it matters

For a company of this size, profitability and cost discipline are as important as top-line growth. A 28 per cent revenue increase alongside higher net income suggests that, in the June quarter at least, growth was not bought at the expense of earnings. Selling mostly through resellers and distributors can extend reach cheaply, but it also means revenue timing depends on partners' ordering and on delivery schedules.

The sales build-out has two sides. New representatives add capacity, yet they also add cost before they reach full productivity, and management has itself flagged that larger deals may pressure gross margin. The balance between those forces will help determine whether the 25.6 per cent adjusted EBITDA margin can be sustained.

What to watch next

The first item is the next quarterly report, covering the September 2026 quarter, which should show how much of the education order was delivered and whether revenue growth held near the June rate. The company's own announcement of the reporting date should be checked rather than assumed.

Second, gross margin as deal sizes increase, and inventory levels, since the call noted a significant inventory investment. Third, any disclosure of bookings would help, because management described June-quarter bookings only as significantly higher without giving a figure. Hiring progress against management's stated targets also deserves close monitoring.