📊 FATN Key Takeaways
Is Fatpipe Inc/UT (FATN) a Good Investment?
Fatpipe exhibits exceptional profitability margins (26% net, 91% gross) and maintains a fortress balance sheet with minimal leverage and strong liquidity. However, the company faces a critical divergence between reported net income ($5.0M) and sharply negative operating cash flow (-$780.4K), signaling quality-of-earnings concerns and unsustainable cash burn despite zero revenue growth, indicating a deteriorating business model.
FatPipe shows positive reported profitability and a healthy balance sheet, with solid liquidity, modest leverage, and positive net income. However, growth quality looks weak because revenue was flat, free cash flow generation was minimal relative to sales, and diluted EPS fell sharply despite stable net income, suggesting dilution or capital structure pressure. The unusually high gross margin also raises questions about earnings quality or classification, which tempers conviction.
Fatpipe Inc/UT Key Strengths (FATN)
- Exceptional gross margin of 91% demonstrates strong product-market fit and pricing power
- Fortress balance sheet with 3.85x current ratio, low debt-to-equity of 0.18x, and adequate liquidity
- Healthy interest coverage of 8.9x and above-average returns on equity (19.7%) and assets (14.4%)
- Strong liquidity with 2.71x current ratio and $6.16M cash against modest leverage
- Positive operating and net profitability, including 24.8% operating margin and 17.8% net margin
- Manageable balance sheet risk with debt/equity of 0.22x and positive interest coverage of 4.7x
FATN Stock Risks: Fatpipe Inc/UT Investment Risks
- Critical negative operating cash flow of -$780.4K contradicts positive net income, indicating poor earnings quality and potential accounting anomalies
- Completely flat revenue (0.0% YoY) and net income growth suggest a mature, stagnating business with limited expansion
- Negative free cash flow of -$832.9K is unsustainable; company will exhaust $5.2M cash reserves within 6-7 years absent operational improvement
- Flat revenue indicates limited top-line momentum and weak growth quality
- Free cash flow is very thin at $89.68K, only 1.6% of revenue, despite reported earnings
- Diluted EPS fell 57.1% year over year and reported gross margin above 100% suggests potential data or accounting classification concerns
Key Metrics to Watch
- Operating cash flow trend—must turn positive to validate earnings quality
- Revenue growth acceleration—must exit flat-growth regime to justify operations
- Working capital changes and accounts receivable aging—critical to understanding cash-income divergence
- Operating cash flow and free cash flow conversion versus net income
- Revenue growth and diluted share count trend
Fatpipe Inc/UT (FATN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.85x current ratio provides a solid financial cushion.
FATN Profit Margin, ROE & Profitability Analysis
FATN vs Technology Sector: How Fatpipe Inc/UT Compares
How Fatpipe Inc/UT compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Fatpipe Inc/UT Stock Overvalued? FATN Valuation Analysis 2026
Based on fundamental analysis, Fatpipe Inc/UT appears fundamentally strong relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Fatpipe Inc/UT Balance Sheet: FATN Debt, Cash & Liquidity
FATN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Fatpipe Inc/UT's revenue has shown modest growth of 8% over the 5-year period. The most recent EPS of $0.15 reflects profitable operations.
FATN Revenue Growth, EPS Growth & YoY Performance
FATN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $3.1M | N/A | $0.01 |
| Q2 2026 | $4.0M | -$43.4K | $0.00 |
| Q1 2026 | $3.8M | $625.5K | $0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Fatpipe Inc/UT Dividends, Buybacks & Capital Allocation
FATN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Fatpipe Inc/UT (CIK: 0001993400)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FATN
What is the AI rating for FATN?
Fatpipe Inc/UT (FATN) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FATN's key strengths?
Claude: Exceptional gross margin of 91% demonstrates strong product-market fit and pricing power. Fortress balance sheet with 3.85x current ratio, low debt-to-equity of 0.18x, and adequate liquidity. ChatGPT: Strong liquidity with 2.71x current ratio and $6.16M cash against modest leverage. Positive operating and net profitability, including 24.8% operating margin and 17.8% net margin.
What are the risks of investing in FATN?
Claude: Critical negative operating cash flow of -$780.4K contradicts positive net income, indicating poor earnings quality and potential accounting anomalies. Completely flat revenue (0.0% YoY) and net income growth suggest a mature, stagnating business with limited expansion. ChatGPT: Flat revenue indicates limited top-line momentum and weak growth quality. Free cash flow is very thin at $89.68K, only 1.6% of revenue, despite reported earnings.
What is FATN's revenue and growth?
Fatpipe Inc/UT reported revenue of $19.2M.
Does FATN pay dividends?
Fatpipe Inc/UT does not currently pay dividends.
Where can I find FATN SEC filings?
Official SEC filings for Fatpipe Inc/UT (CIK: 0001993400) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FATN's EPS?
Fatpipe Inc/UT has a diluted EPS of $0.35.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is FATN's fundamental grade?
Based on our AI fundamental analysis in June 2026, Fatpipe Inc/UT has a C grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is FATN stock overvalued or undervalued?
Valuation metrics for FATN: ROE of 19.7% (sector avg: 22%), net margin of 25.9% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is FATN's AI grade for 2026?
Our dual AI analysis gives Fatpipe Inc/UT a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is FATN's free cash flow?
Fatpipe Inc/UT's operating cash flow is $-780.4K, with capital expenditures of $52.5K. FCF margin is -4.3%.
How does FATN compare to other Technology stocks?
Vs Technology sector averages: Net margin 25.9% (avg: 18%), ROE 19.7% (avg: 22%), current ratio 3.85 (avg: 2.5).