Arizona Tribune - FatPipe CEO Publishes Letter to Shareholders

Dear Fellow Shareholders,

Following our successful IPO earlier this year, FatPipe's stock has recently experienced downward pressure as the initial shareholder lockup period expired. This has allowed certain long-term historical shareholders to exit or reduce their positions, resulting in increased trading volume and short-term volatility. While such activity is common following a company's transition to a public market, it does not reflect any change in our underlying fundamentals or business trajectory.

At FatPipe, we remain focused on executing our strategic priorities and expanding our customer base. Our second quarter fiscal year 2026 results, released on November 4, 2025, underscore the health of our operations and the momentum we continue to build across key markets.

Relative Valuation and Market Comparables

As we evaluate FatPipe's position within the broader networking and cybersecurity landscape, it is important to note how our valuation compares to peers in the SD-WAN and cybersecurity markets. According to an (1) NYU Stern analysis of Revenue Multiples by Sector (January 2025), 333 firms in the Software (System & Application) category traded at an average 11.20x Price/Sales multiple and 11.54x EV/Sales Multiple, while FatPipe currently trades at approximately a 2.06x Price to Sales multiple and 2.05x Enterprise Value/Sales multiple, respectively.

https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/psdata.html

This comparison underscores the relative value opportunity we believe exists for FatPipe as we continue to grow recurring revenue, expand margins, and demonstrate the scalability of our SD-WAN and cybersecurity model.

Positioned for Long-Term Growth

FatPipe continues to distinguish itself as a pioneer in secure, application-aware SD-WAN and single-stack cybersecurity solutions. Our integrated approach combines reliability, optimization, and advanced security capabilities that customers increasingly demand as they modernize their network edge.

Our investments in sales coverage, partner enablement, and recurring revenue offerings are designed to translate into sustained growth in fiscal 2026 and beyond. We are also seeing strong interest from both enterprise and public sector organizations seeking cost-effective, high-performance alternatives to legacy networking vendors.

As we continue to scale as a newly public company, our focus remains on disciplined execution, profitable growth, and long-term shareholder value creation.

Thank you for your continued support and confidence in FatPipe as we build on our leadership in SD-WAN and cybersecurity innovation.

Sincerely,
Dr. Ragula Bhaskar
Chief Executive Officer
FatPipe, Inc. (NASDAQ:FATN)

Join FatPipe's Investor Webcast on December 16

FatPipe is pleased to invite investors to a webinar on December 16, 2025, at 4:15 p.m. ET. The exclusive event, hosted by RedChip Companies, will feature FatPipe's CEO, Dr. Ragula Bhaskar, who will discuss the company's performance and latest developments in greater detail. A live question and answer session will follow the presentation.

To register for the free webinar, please visit: https://www.redchip.com/webinar/FATN/81442635058

Questions can be pre-submitted to [email protected] or online during the live event.

About FatPipe, Inc.

FatPipe pioneered the concept of software-defined wide area networking (SD-WAN) and hybrid WANs that eliminated the need for cooperation from ISPs and allow companies and service providers to control multi-link network traffic worldwide. FatPipe has now pioneered cost-effective, advanced single-stack cybersecurity for on-premise deployments that significantly improve network and cybersecurity for SMBs.

For more information, please visit www.fatpipeinc.com.

Follow us on X @FatPipe_Inc.

Forward-Looking Statements

Certain statements contained in this press release, including statements relating to the Company's expectations regarding the completion, timing and size of its proposed public offering and listing may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on management's current expectations and are inherently subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. These risks and uncertainties include, but are not limited to, risks and uncertainties associated with the consummation of the offering and other risks described in FatPipe's registration statement on Form S-1, as it may be amended from time to time. Except as required by law, FatPipe expressly disclaims a duty to provide updates to forward-looking statements, whether as a result of new information, future events or other occurrences.

Company Contact Info

+1 801.683-5656 x 1140
[email protected]

SOURCE: FatPipe Networks

View the original press release on ACCESS Newswire

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