A10 Networks, Inc. (ATEN): PESTLE Analysis [Nov-2025 Updated]

You're looking for a clear, actionable breakdown of the forces shaping A10 Networks, Inc. (ATEN)'s near-term future. As a seasoned analyst, I see the company operating in a highly regulated, yet opportunity-rich, environment, particularly around their core application delivery and security solutions. The key takeaway is that while macroeconomic pressures are tightening IT budgets, the non-negotiable need for advanced security and 5G infrastructure is creating a strong, counter-cyclical demand for their specialized products.

You're navigating a tough market, so let's cut straight to the core of A10 Networks' strategic position: the company is caught between corporate IT budget tightening and the non-negotiable, rising demand for advanced security. While high interest rates are lengthening sales cycles, the massive global rollout of 5G infrastructure and government mandates for zero-trust architecture are creating a strong, counter-cyclical pull for their specialized products. The shift to a subscription model, projected to account for over 40% of their total 2025 revenue, provides a crucial economic buffer, but they must still invest an estimated $65 million in R&D to win the technology race against the hyperscalers. Find out below how political mandates, economic risks, and the 5G boom define their next moves.

A10 Networks, Inc. (ATEN) - PESTLE Analysis: Political factors

The political landscape is a double-edged sword for A10 Networks. On one hand, government and defense contracts are a major tailwind, particularly with the US pushing hard for 'zero-trust' models, which aligns perfectly with A10 Networks' security focus. This is defintely a growth area. On the other hand, the continuous geopolitical tensions, especially around US-China tech trade, create supply chain headaches and tariff risks, directly impacting hardware costs. Plus, the global trend toward data sovereignty means A10 Networks must tailor its solutions for specific regional compliance, which adds complexity but also creates a specialized market niche.

Increased US government spending on zero-trust architecture

The US government's pivot to a Zero Trust Architecture (ZTA) is a massive, long-term opportunity. This shift, mandated by Executive Order 14028, assumes networks are already compromised and requires continuous verification, which is exactly where A10 Networks' application delivery and security solutions shine. For the Fiscal Year 2025 budget, the Department of Defense (DoD) is seeking $14.5 billion for its cyberspace endeavors, with a little more than $977 million specifically allocated for ZTA transition alone.

Civilian agencies are also pouring money into this area. Overall civilian cybersecurity budgets are projected to reach an estimated total of $13 billion for FY2025, marking a 15% increase from FY2023 levels. This spending directly drives demand for high-performance security products like A10 Networks' Thunder® Threat Protection System (TPS) for DDoS defense and Thunder® SSL Insight for encrypted traffic inspection, both critical components of a ZTA implementation. The government is buying, and they need high-performance, secure gear now.

Global push for data sovereignty and localization laws

The global regulatory environment, particularly in Europe, is creating a new market for localized, compliant infrastructure. The European Union's push for digital sovereignty is accelerating, with the main provisions of the EU Data Act taking effect on September 12, 2025. This law imposes stringent obligations on data handling, portability, and interoperability, forcing cloud and service providers-A10 Networks' key customers-to re-architect their systems. U.S. tech firms are facing estimated compliance costs ranging from $22 billion to $50 billion to adapt to the Act's requirements.

This regulation is a catalyst for A10 Networks because it forces companies to invest in network infrastructure that can enforce data localization and control. The EU is actively trying to reduce its reliance on US hyperscalers (Amazon, Microsoft, Google), who still hold over 65% of the EU cloud market, by promoting sovereign cloud alternatives. This creates a clear need for regional data center build-outs and local traffic management, a perfect fit for A10 Networks' application delivery controllers and Carrier Grade NAT (CGNAT) solutions.

Shifting US-China trade policies impacting supply chain stability

The renewed trade tensions are a significant headwind, primarily through supply chain disruption and rising component costs. The US government's expanded tariffs on Chinese-made semiconductors, with some rates reaching up to 145%, are directly inflating component costs for all networking hardware manufacturers. This is not just a theoretical risk; it's already showing up in the numbers.

The industry is seeing significant cost inflation on core components, which pressures A10 Networks' gross margins and forces price adjustments on end-products. Here's the quick math on what the industry is seeing:

Hardware Component	Observed Price Increase (Since Q4 2024)	Policy Driver
25 GbE Switches	+12%	Tariffs on Chinese-made semiconductors
Rack Servers	+9%	Tariffs on imported components
Networking Equipment (General)	10% to 25% (Predicted Hike)	Reinstated US tariffs on Chinese tech imports

To be fair, A10 Networks can pass some of these costs to customers, but the overall effect is a tighter market and a greater need for supply chain diversification, which is expensive and time-consuming. The new 10% universal baseline tariff on all imports, effective April 5, 2025, also adds a floor to procurement costs across the board.

Government mandates on critical infrastructure cybersecurity

Beyond ZTA, government mandates are making robust cybersecurity a non-negotiable requirement for critical infrastructure sectors like energy, finance, and telecommunications. The Cybersecurity and Infrastructure Security Agency (CISA) continues to push for enhanced security, and A10 Networks' core competency-Distributed Denial of Service (DDoS) protection-is a primary defense layer for these systems. This creates a continuous, non-cyclical demand for A10 Networks' solutions.

The mandates force a spending priority that benefits A10 Networks' product portfolio:

• Protecting against massive-scale DDoS attacks that target critical services.
• Securing the transition to IPv6 (Internet Protocol version 6) via Carrier Grade NAT (CGNAT) as governments modernize networks.
• Ensuring application availability and security for essential public-facing services.

What this estimate hides is the potential for government contracts to be sticky; once A10 Networks' hardware is integrated into a critical infrastructure environment, the high cost of switching vendors ensures a long-term revenue stream from services and support.

A10 Networks, Inc. (ATEN) - PESTLE Analysis: Economic factors

Honesty, the biggest near-term risk is the economic environment. High interest rates are making companies scrutinize every capital expenditure (CapEx), but A10 Networks' focus on the non-discretionary security and AI infrastructure segments provides a strong buffer. The company's full-year 2025 guidance projects a 10% revenue growth rate, which is a solid performance against a backdrop of global economic uncertainty.

Corporate IT budget tightening due to high interest rates

You are defintely seeing a two-speed economy in the IT sector. The high-interest-rate environment is forcing general enterprise customers to delay large, non-essential hardware upgrades, which lengthens sales cycles for A10 Networks' traditional product sales. This is evident in the Q3 2025 results, where the enterprise segment revenue showed a slight decline to $26.9 million, down from $30.0 million in Q3 2024. However, this tightening is being more than offset by spending in mission-critical areas like security and AI infrastructure, which are mandatory, not discretionary. This is a classic case of security budgets remaining sticky even when other budgets shrink.

Here's a snapshot of the contrasting spending dynamics in Q3 2025:

Segment	Q3 2025 Revenue	Year-over-Year Change	Economic Impact
Service Provider	$47.8 million	+30.2%	Strong CapEx on 5G/AI infrastructure
Enterprise	$26.9 million	-10.3%	Corporate IT budget tightening

Strong capital expenditure on 5G network build-outs

The service provider segment is the clear engine of growth, driven by massive CapEx on 5G and AI infrastructure build-outs. This is a major economic tailwind for A10 Networks. In Q3 2025, the Service Provider segment revenue surged to $47.8 million, representing a 30.2% year-over-year increase. A significant part of this growth comes from the Americas region, which accounted for a whopping 65% of global revenue in the quarter, largely due to large-scale AI infrastructure investments by a few key customers. This concentration is a risk, but for now, it's a powerful economic driver that demands A10 Networks' high-throughput, low-latency security solutions.

Inflationary pressure on operational and labor costs

While inflation is a concern for all businesses, A10 Networks' highly profitable model provides significant insulation. Their non-GAAP gross margin remained robust at 80.7% in Q3 2025, and non-GAAP operating margin expanded to 24.7%. This high margin structure means that modest increases in component or labor costs have a smaller proportional impact on profitability compared to hardware-centric competitors. Still, the pressure is real, especially on highly-skilled cybersecurity labor.

• Labor Cost: The shortage of skilled cybersecurity professionals is driving up salaries, increasing the cost of the Research & Development and Services teams.
• Supply Chain: While improving, geopolitical risks and component shortages still pose a threat to the hardware-heavy product side, potentially pressuring that 80.7% gross margin.
• Mitigation: Operational discipline and the shift to higher-margin software/service sales are successfully absorbing these costs, allowing the company to maintain a strong EBITDA margin target of 26% to 28% for the full year 2025.

Increased focus on subscription-based (SaaS) revenue models

The economic value of recurring revenue cannot be overstated, especially during a slowdown. A10 Networks is actively pushing its subscription-based (SaaS) and services model to smooth out the revenue volatility inherent in large, hardware-based CapEx cycles. This strategy is paying off: services revenue reached $31.6 million in Q3 2025, constituting approximately 42% of total revenue. This figure is a critical metric for investors, as it represents a more predictable, high-margin revenue stream that is less susceptible to sudden macroeconomic shocks. The goal is to see this percentage continue to climb, which will further de-risk the company's financial profile against future economic downturns. It's a smart move to stabilize cash flow.

A10 Networks, Inc. (ATEN) - PESTLE Analysis: Social factors

The 'people' side of the equation is all about complexity and skills. The massive, ongoing shortage of cybersecurity professionals means customers are defintely desperate for solutions that are simple to deploy and manage-which favors A10 Networks' focus on automation and centralized management. The hybrid work model is now permanent, so traffic patterns are decentralized, making their application delivery controllers (ADCs) and security gateways essential for performance and protection. This sociological shift is driving a need for solutions, which is why A10 Networks' product revenue surged 17% year-over-year in Q3 2025.

Persistent global shortage of skilled cybersecurity talent

You can't hire your way out of the security problem, and that fact is the single biggest social tailwind for companies like A10 Networks. Globally, the cybersecurity workforce gap stands at a staggering 4 million to 4.8 million professionals, and this deficit is getting worse. This isn't just a recruiting headache; it's a core operational risk. About 67% of organizations report their teams are under-staffed, leaving them exposed and forcing a reliance on technology that can do more with less human oversight. This shortage directly translates into a higher willingness to pay for automated, high-performance security solutions, especially those that can handle high-volume tasks like Distributed Denial of Service (DDoS) protection without constant manual tuning.

Here's the quick math: a security team short on staff for over six months-which happens to nearly half (48%) of all companies trying to fill a cybersecurity vacancy-cannot keep up with the threat landscape. So, the market is prioritizing products that are 'set-it-and-forget-it' or, at least, highly automated. This is why A10 Networks' security solutions now comprise over 65% of their total revenue, smashing their long-term target.

Permanent shift to hybrid and multi-cloud work environments

The great migration to the cloud and the hybrid office is over; it's just how we work now. This permanent shift has fundamentally changed network traffic patterns, moving the security perimeter from a single data center to everywhere. A massive 92% of large enterprises now operate in a multi-cloud environment, using services from different providers like Amazon Web Services and Microsoft Azure. Plus, 54% of enterprises use a hybrid cloud approach for mission-critical workloads, which means you need a consistent security and application delivery fabric that spans all those disparate environments.

This complexity is a gift to A10 Networks. It means their customers need Application Delivery Controllers (ADCs) and Carrier-Grade Network Address Translation (CGNAT) solutions that can perform at high speed across these complex, multi-vendor networks. Gartner forecasts worldwide end-user spending on public cloud services to total $723.4 billion in 2025, a huge pool of capital that is driving demand for A10 Networks' underlying infrastructure and security solutions.

High demand for simple, automated security management tools

The skills gap and the multi-cloud complexity converge on one point: the desperate need for automation. The global security automation market is valued between an estimated $9.74 billion and $12.12 billion in 2025, and it's projected to grow at a Compound Annual Growth Rate (CAGR) of up to 15.6%. That kind of growth signals a non-negotiable business priority. Organizations are turning to Security Orchestration, Automation, and Response (SOAR) platforms and AI-driven tools to automate routine security tasks, minimize human error, and reduce response times.

A simple, automated interface is now a competitive advantage, not just a feature. When you look at the drivers for this market growth, it's clear:

• Automating incident response to reduce detection and containment time.
• Handling the growing volume of security alerts with fewer staff.
• Ensuring consistent security policies across complex hybrid and multi-cloud environments.

A successful security product today is one that automates the work of the 4 million missing cyber professionals.

Increased public concern over data breaches and privacy

The social contract around data privacy is broken, and consumers are demanding better protection, which forces businesses to invest more in security. The financial fallout from a breach is staggering: the average global cost of a data breach reached $4.44 million in 2025, and in the U.S., that average surged to a record $10.22 million. That's a massive incentive for any CFO to prioritize security spending.

More importantly, the public is paying attention. A full 92% of Americans are concerned about their privacy when using the Internet, and 64% of consumers have actively opted not to work with a business due to data security concerns. This means security isn't just an IT cost; it's a revenue protection mechanism. A data breach can directly impact the top line, which elevates A10 Networks' security solutions-like their Thunder Application Delivery Controller (ADC) for secure application access-from a technical purchase to a strategic business necessity.

The table below summarizes the key social factors driving the market for A10 Networks' high-performance security and application delivery solutions in 2025.

Social Factor	Key 2025 Metric	Impact on A10 Networks (ATEN)
Cybersecurity Talent Shortage	Global shortfall of 4.8 million professionals.	Drives demand for automated, simple-to-manage security platforms.
Multi-Cloud Adoption	92% of large enterprises use multi-cloud.	Increases need for consistent application delivery and security across disparate networks.
Security Automation Market	Market size up to $12.12 billion in 2025, growing at up to 15.6% CAGR.	Validates A10 Networks' strategy of integrating automation into its security portfolio.
Data Breach Cost/Concern	Average U.S. breach cost: $10.22 million. 64% of consumers avoid companies over security fears.	Elevates security products to a critical, revenue-protecting investment for executives.

A10 Networks, Inc. (ATEN) - PESTLE Analysis: Technological factors

Technology is the engine here. The rollout of 5G is a massive opportunity; A10 Networks' Thunder Carrier-Grade Networking (CGN) and security products are critical infrastructure for these new networks. We're also seeing AI/ML becoming non-negotiable for real-time threat detection, so A10 Networks must continue to integrate these capabilities deeply into their ACOS operating system. What this estimate hides is the sheer speed of cloud architecture evolution, which requires constant R&D investment-estimated at $65 million for the 2025 fiscal year-just to keep pace with Amazon Web Services, Microsoft Azure, and Google Cloud Platform.

Rapid adoption of AI and Machine Learning in threat detection

You need to see AI (Artificial Intelligence) and ML (Machine Learning) not just as a feature, but as the core defense mechanism against sophisticated attacks. A10 Networks is aligning its roadmap to this reality, with security solutions comprising over 65% of their total revenue in Q3 2025, which is a clear signal of market demand. The company's own 2025 report, The State of AI Infrastructure Report, found that 76% of organizations are already using Generative AI (GenAI) applications, meaning the network traffic patterns A10 Networks secures are changing right now. This shift requires their DDoS (Distributed Denial of Service) protection and application delivery controller (ADC) products to use ML for behavioral analysis, not just signature matching. Honestly, if your security platform isn't learning, it's already defintely losing.

Acceleration of 5G core network deployment globally

The global 5G core network deployment is a major tailwind for A10 Networks, particularly in the Service Provider segment. This segment was the primary growth driver in Q3 2025, generating $47.8 million in revenue, a 30.2% year-over-year increase. Carriers are building out dense, high-capacity networks that need Carrier-Grade NAT (CGNAT) and security to handle the massive influx of new IP addresses and traffic. A10 Networks' Thunder CGN and security platforms are purpose-built for this scale, providing the high-throughput, low-latency performance that 5G demands. This is a critical infrastructure play; every new 5G core needs a security layer, and A10 Networks is positioned to capture that spending.

Expansion of multi-cloud and hybrid-cloud architectures

The enterprise move to hybrid cloud-using a mix of on-premises data centers and public cloud providers-is irreversible. A10 Networks' strategy is to offer a consistent security and application delivery platform across all environments (on-premise, public cloud, and edge). Their own research shows that 42% of organizations use hybrid cloud for their AI workloads, balancing scalability with control. This creates a need for centralized management and orchestration, which A10 Networks addresses with its A10 Harmony Controller. The challenge is the speed of cloud-native development; A10 Networks must ensure their virtual and software-based solutions (like vThunder) maintain feature parity and performance with hyperscalers like Amazon Web Services and Microsoft Azure.

Here's the quick math on the investment required for this kind of technological leadership:

Key R&D and Financial Metrics (GAAP)	Q3 2025 Amount (in millions)	YTD Q3 2025 Amount (in millions)
Revenue	$74.7	$205.1 (Calculated: Q2 $69.4M + Q3 $74.7M + Q1 $61M)
Research & Development (R&D) Expense	$18.4	$50.5
R&D as % of Revenue (Q3 2025)	24.6% (Calculated: $18.4M / $74.7M)	N/A

Need for high-performance DDoS protection at scale

The scale and sophistication of DDoS attacks are escalating, driven by the same AI tools that companies are adopting for defense. This is a constant arms race. A10 Networks' core competency in high-performance DDoS protection is a major competitive advantage, especially with the growth in AI data centers. These AI infrastructure buildouts are a key growth driver, particularly in the Americas region, which accounted for a massive 65% of A10 Networks' total revenue in Q3 2025. The products need to deliver:

• Handle massive throughput (Terabits per second).
• Provide near-zero latency for AI workloads.
• Integrate advanced threat intelligence (AI/ML).
• Offer a lower total cost of ownership than competitors.

This focus on performance and security integration is what is driving the 17% year-over-year product revenue growth seen in Q3 2025. The demand for their security solutions is outpacing the overall market.

A10 Networks, Inc. (ATEN) - PESTLE Analysis: Legal factors

The legal environment is getting much tighter, which is a significant tailwind for cybersecurity companies like A10 Networks. Every major breach increases the likelihood of new, stricter regulations, driving mandatory spending on compliance. The US government's focus on software supply chain security, following high-profile incidents, means companies need solutions to verify the integrity of their network infrastructure-a direct benefit to A10 Networks' trusted platform. If onboarding takes 14+ days due to compliance hurdles, churn risk rises, so ease of regulatory compliance is now a key selling point.

Stricter global data protection regulations (e.g., CCPA, GDPR)

Global data privacy laws are moving past the initial phase of the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) to focus on operational resilience. The European Union's Digital Operational Resilience Act (DORA) became effective in January 2025, specifically targeting the financial sector's ability to withstand and recover from cyber incidents. This mandates a higher level of visibility and control, directly increasing demand for A10 Networks' solutions that simplify security stack management and provide real-time reporting. The financial risk of non-compliance is immense: the average cost of a data breach globally hit an all-time high of $4.35 million in 2022, and that number is only climbing. Our clients are looking for a defintely simplified path to meeting these complex, often overlapping, requirements.

• DORA (EU): Effective January 2025, requires enhanced operational resilience for 22,000 EU financial entities.
• NIS2 (EU): Fully enforced October 2024, mandates minimum cybersecurity risk management across 18 critical sectors.
• CCPA/CPRA (US): Continues to drive demand for data flow mapping and access control solutions in the US market.

New mandates for software supply chain security (e.g., US Executive Order)

The US government's focus on securing the software supply chain is a major driver. Building on the foundational steps of Executive Order 14028 (2021), a new Executive Order signed in January 2025 further operationalizes transparency and security in third-party software. This requires Federal agencies and, by extension, their vendors, to adopt practices like Zero Trust Architecture (ZTA) and secure software development standards. This is a huge opportunity for A10 Networks, as their carrier-grade security platforms are inherently aligned with these 'assume breach' and ZTA principles. The shift from simply securing the perimeter to securing every transaction is a core product strength.

Increased regulatory scrutiny on M&A activities in tech

The current regulatory climate poses a risk to inorganic growth strategies. Antitrust regulators in the US and Europe are applying heightened scrutiny to mergers and acquisitions (M&A) in the technology sector, particularly for deals involving cybersecurity, AI, and digital infrastructure-A10 Networks' core markets. This scrutiny is not just for mega-deals; it also applies to smaller, strategic 'techquisitions' that could consolidate market power. This means any potential acquisition by A10 Networks to expand its portfolio, or a potential acquisition of A10 Networks by a larger entity, faces a longer, more complex, and less predictable approval process. Dealmakers are now building in contractual protections like reverse break fees to manage this regulatory risk.

Compliance requirements for encryption standards and key management

Encryption is a dual-edged sword. On one hand, approximately 95 percent of all internet traffic is now encrypted, making robust encryption a cornerstone of compliance with regulations like NIS2. On the other hand, malicious actors use this same encryption to hide threats, creating a security 'blind spot.' A10 Networks' solutions address both sides: they ensure mandatory encryption (e.g., AES-256 for data at rest) and provide SSL/TLS decryption and inspection capabilities to eliminate the blind spot. This is a non-negotiable requirement for sectors like healthcare, which face new HIPAA Security Updates in 2025 mandating robust encryption and Multi-Factor Authentication (MFA).

Here's the quick math on the compliance-driven revenue opportunity:

Metric	Q3 2025 Value	Context / Driver
Total Revenue	$74.7 million	Up 11.9% YoY, driven by security and AI infrastructure demand.
Product Revenue	$43.1 million	Up 17% YoY, showing strong sales of core security appliances and software licenses, which are often compliance-mandated purchases.
Non-GAAP Gross Margin	80.7%	High margin reflects the value of specialized security software solutions that solve complex regulatory problems.
Average Data Breach Cost	$4.35 million	The financial risk clients face, directly driving their investment in solutions like A10 Networks' to avoid fines and damages.

Finance: draft a quarterly report isolating revenue directly attributable to NIS2/DORA compliance sales by the end of the quarter.

A10 Networks, Inc. (ATEN) - PESTLE Analysis: Environmental factors

The environmental factor, while not a core product driver, is becoming a key competitive differentiator. Investors, especially those managing large institutional funds like BlackRock, are demanding robust Environmental, Social, and Governance (ESG) reporting. This translates to A10 Networks needing to demonstrate the energy efficiency of its hardware. For example, a more power-efficient appliance can save a data center thousands of dollars annually, which is a strong selling point against competitors. They need to publish clear metrics showing the power consumption reduction of their latest Thunder series hardware versus older models.

Growing investor and customer demand for ESG reporting

By 2025, ESG reporting has shifted from optional storytelling to an operational necessity and a 'right to play' in the market. Investors now demand structured, transparent, and financially relevant disclosures, using ESG data to assess business resilience and long-term profitability. A10 Networks is responding by aligning its strategy with the 1.5°C global initiative to reduce its carbon footprint. Failure to provide credible ESG data risks exclusion from key markets and disqualification from sustainable finance opportunities. The company's Q3 2025 revenue of $74.7 million, up 11.9% year-over-year, shows a strong financial foundation, but sustained growth will increasingly rely on demonstrating non-financial value through verifiable ESG metrics.

Focus on energy efficiency of data center and networking hardware

Energy efficiency is a primary environmental and economic concern for A10 Networks' data center customers. The company's Thunder Application Delivery Controller (ADC) appliances are designed to maximize performance per rack unit while minimizing power draw. All Thunder ADC appliances feature power supplies with the highest level "80 PLUS™ Platinum" certification, which guarantees a minimum of 89% to 94% energy efficiency depending on the load, significantly reducing power consumption costs for the customer.

Here's the quick math: reducing power consumption directly lowers the operating expenditure (OpEx) for a customer's data center. The hardware's efficiency is quantified by its Performance Per Watt (PPW), a key metric for data center architects.

A sample of typical power consumption and efficiency metrics for various Thunder series appliances illustrates this focus:

Thunder Series Model (Example Range)	Typical Power Consumption	Maximum Power Consumption	Heat Output (Typical BTU/hour)	Performance Per Watt (PPW) Metric
Entry-Level Appliance	66 W	76 W	225	2,632
Mid-Range Appliance	131 W	139 W	447	5,396
High-End Appliance	680 W	780 W	2,320	6,795

Pressure to reduce e-waste and improve product lifecycle management

Global regulations are increasing pressure on technology companies to manage the entire product lifecycle, especially concerning electronic waste (e-waste). A10 Networks addresses this through compliance with international directives and internal practices. This is defintely a non-negotiable compliance area.

• Regulatory Compliance: Products adhere to the European Union's Restriction of Hazardous Substances (RoHS) and Waste Electrical and Electronic Equipment (WEEE) directives, plus the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH).
• E-waste Disposal: The company commits to properly disposing of e-waste at its facilities, where applicable according to local requirements.
• Supply Chain Audit: A10 Networks uses the Responsible Business Alliance (RBA) code of conduct as a guide and expects suppliers to comply with its policy on responsible sourcing of minerals.

Carbon footprint disclosure requirements for large enterprises

Mandatory carbon disclosure is becoming a reality, driven by regulations like the EU's Corporate Sustainability Reporting Directive (CSRD), which requires detailed data on carbon emissions. A10 Networks has an established sustainability project to reduce its carbon emissions.

• Baseline and Strategy: A 10-year carbon reduction plan was set with a baseline target year in 2019.
• Alignment: The reduction strategy is explicitly aligned with the 1.5°C initiative scope protocols, demonstrating a commitment to science-based targets.
• Operational Efforts: The San Jose headquarters is compliant with California's Title 24 energy efficiency standards, and the company is planning for greater use of renewable energy in partnership with the local utility, PG&E.