FatPipe Inc. reported third‑quarter fiscal 2026 results that saw total revenue climb 30% year‑over‑year to $4.1 million, driven by a 48% jump in monthly recurring billings and a 27% rise in total quarterly billings. The surge was largely fueled by new customer wins and renewals in the education, financial services, and enterprise verticals, underscoring the company’s expanding market reach.
The company’s recurring revenue model continued to strengthen, with monthly recurring billings reaching $2.3 million, a 48% increase from the same period in fiscal 2025. This shift toward a higher‑margin subscription base has helped offset the modest growth in one‑time sales and has positioned FatPipe for more predictable cash flow.
Adjusted EBITDA rose to $0.59 million, translating to a 14% margin—an improvement over the 12% margin reported in Q3 FY25. The margin expansion reflects disciplined cost management and a favorable mix shift toward higher‑margin cybersecurity contracts. Net income for the quarter was $310,662, and earnings per share stood at $0.02, a modest but solid performance that aligns with the company’s focus on scaling while maintaining profitability.
Segment analysis shows that revenue from the SD‑WAN product line grew 35% YoY, while the cybersecurity suite saw a 42% increase, reflecting strong demand for integrated security solutions. The education and financial services sectors contributed 18% and 15% of total revenue, respectively, highlighting the company’s ability to capture growth across diverse verticals.
CEO Dr. Ragula Bhaskar said, “This quarter reflects continued momentum in our business as we execute on our growth strategy. We are seeing strong demand for our secure, high‑performance SD‑WAN and cybersecurity solutions, particularly from customers looking to modernize critical infrastructure while reducing complexity and cost.” CTO Sanchaita Datta added, “Our customers continue to deploy FatPipe at scale. During the quarter, we supported multiple large, complex deployments that highlight the reliability, performance, and security advantages of our platform.”
The market reaction was muted, with investors focusing on valuation concerns and the limited analyst coverage that surrounds the company. Despite the solid earnings, the stock’s performance reflected a cautious stance from the broader market.
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