By Lisa Thompson
NASDAQ:FATN
READ THE FULL FATN RESEARCH REPORT
Ending FY2026 with a large contract and an excellent FYQ4 2026, FatPipe (NASDAQ:FATN) reported revenues up 17.8% to $19.2 million. The enlarged salesforce is bringing in bigger and more deals as it matures. Now at a count of 30, it continues to add staff. In FYQ4, the company recognized half of a new $7 million contract, with the other half expected to be recognized in FYQ1 2027, which should also be a very good quarter for the company. We are raising our revenue and earnings estimates to reflect sales success, plus an expected credit to taxes of $1.5 million in the year, bringing taxes to virtually nothing versus our original estimate of $930,000.
For FY2027, we are now looking for $22.6 million in revenues and FY2027 EPS up to $0.49 per share, compared to our previous estimate of $0.21. Our new FY2028 estimate is now revenues of $26.7 million, and EPS of $0.51 as the company moves back to a normalized tax rate with NOLs still available.
Given the increase in valuation of its peers and the increase in our 2026 calendar-year revenue estimate to $22.4 million, we are raising our current valuation from $6.00 to $6.40 per share.
SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR.
DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives payments totaling a maximum fee of up to $50,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE.