Netskope Inc. (NTSK)

Key figures

The last twelve months reported, with the latest price and balance sheet.

Revenue, last twelve months

$802.6M

Net income, last twelve months

-$737.2M

Earnings per share

-$2.55

Gross margin

69.9%

Operating margin

-94.7%

Net margin

-91.8%

Free cash flow

-$70.1M

Return on equity

-470.2%

Market value

$10.7B

Cash

$220.9M

Debt

$698.1M

Debt to equity

4.45

Financial statements

Revenue, profit and cash flow by fiscal year, each year linked to its annual report.

By quarter

What the company said with its results

From the second quarter of fiscal 2027 results, filed 2 September 2026.

• ARR reached $899 million. Annual recurring revenue was $899 million at July 31, 2026. Growth was 27%, down from 29% reported for the first quarter.
• Revenue growth reached 29%. Second-quarter revenue was $220.5 million, up 29% from a year earlier. First-quarter revenue growth had been 28%, on revenue of $201.6 million.
• Growth credited to innovation and demand. The CEO attributed the quarter to continued organic innovation and durable customer demand for the Netskope One platform across security, networking, analytics and AI.
• Gartner SASE leader for third year. Netskope was positioned highest in Ability to Execute in Gartner's SASE Magic Quadrant. In the Critical Capabilities report it was the only vendor ranked highest for three use cases.
• Gartner security service edge leader again. Netskope was named a Leader in Gartner's Magic Quadrant for Security Service Edge for the fifth consecutive year, and has been named a Leader in every year the report has been published.
• AI Fast Path cuts latency. Advancements to NewEdge AI Fast Path optimize the network path to AI destinations. The company says it reduced latency to popular AI destinations by as much as 90%.
• Gross margin rose on both bases. GAAP gross margin was 74%, against 72%. Non-GAAP gross margin was 77%, against 75%, excluding stock-based compensation and acquired intangible amortization.
• GAAP operating loss widened. GAAP operating margin was (41)%, against (27)%. Stock-based compensation expense rose to $63.0 million from $7.6 million, which the release presents as a non-GAAP adjustment.
• G&A share of revenue rose. GAAP general and administrative expense was 20% of revenue, against 11%. Non-GAAP general and administrative expense was 9%, against 10%. GAAP sales and marketing was 48%, against 46%.
• Non-GAAP operating loss narrowed. Non-GAAP operating margin was (9)%, against (20)%. Non-GAAP research and development fell to 33% of revenue from 41%.
• Free cash flow negative in quarter. Free cash flow was negative $29.8 million, with free cash flow margin of (14)%, against (12)%. Operating cash flow margin was (7)%, against (10)%.
• Operating cash use reported. Net cash used in operations was $16.5 million in the quarter, against $16.9 million used a year earlier.
• Capital spending rose sharply. Purchases of property and equipment were $13.0 million in the quarter, against $1.6 million a year earlier. Six-month purchases were $15.2 million.
• Six-month free cash flow negative. Six-month free cash flow was negative $87.0 million, with a six-month free cash flow margin of (21)%, against negative $2.2 million and a margin of (1)% a year earlier.

Revenue by segment

As the company reports it in the segment note of its annual report.

By product, FY2026

Company events

The newest 8-K filings of 6 held.

Every filing

The newest filings with the SEC of 24 held.

Insider trades

Form 4 trades by officers, directors and 10% owners, last 12 months.

Planned insider sales

Form 144 notices, filed when the sell order goes to the broker.

Large holders

Schedule 13D and 13G filings by holders of more than 5% of the voting shares.

Short interest

Shares sold short and not yet bought back, on each FINRA settlement date.

Funds that hold it

From each fund's latest Form 13F.

245 funds held it at 30 Jun 2026: 151 added and 29 trimmed in the quarter. The largest:

Peers

Companies in the same industry.

• Microsoft Corp. (MSFT): revenue $346.4B, market value $3.95T
• Palantir Technologies Inc. (PLTR): revenue $6.2B, market value $473.1B
• Oracle Corp. (ORCL): revenue $71.8B, market value $436.3B
• SAP SE (SAP): revenue $41.6B, market value $276.7B
• CrowdStrike Holdings, Inc. (CRWD): revenue $5.4B, market value $273.1B
• Shopify Inc. (SHOP): revenue $13.3B, market value $218.4B
• Salesforce, Inc. (CRM): revenue $43.9B, market value $199.5B
• ServiceNow, Inc. (NOW): revenue $15.4B, market value $155.6B
• Snowflake Inc. (SNOW): revenue $5.4B, market value $119.8B
• Cloudflare, Inc. (NET): revenue $2.5B, market value $113.0B

What the company does

Netskope is a software company headquartered in Santa Clara, California. It sells Netskope One, a cloud-native platform that combines security, networking, analytics and AI security products, so that organisations can control how people, devices, applications and AI agents interact with data and the internet. As of 31 January 2026 it had 4,733 customers and 3,281 employees.

What it sells

Security products include Cloud Inline Security, Cloud Access Security Broker, Data Loss Prevention, Threat Protection, Next-Gen Secure Web Gateway, Private Access (zero trust network access), Remote Browser Isolation, SaaS Security Posture Management, Data Security Posture Management and Enterprise Browser.

Networking products include Firewall-as-a-Service, IoT/OT Intelligence, Software-Defined Wide Area Network, Dedicated Egress IP, Cloud Packet Stream and DNS-as-a-Service. Analytics products include Advanced Analytics, User and Entity Behavior Analytics, Digital Experience Management and Data Lineage.

The AI Security group is made up of AI Gateway, Agentic Broker, AI Guardrails and AI Red Teaming. The company calls its set of AI features across the platform SkopeAI. Netskope One Gateway extends the platform to branch offices and multi-cloud environments in physical, virtual, cloud or client form.

The NewEdge network

The platform runs on the company's NewEdge private cloud network. NewEdge has more than 125 full-compute edge data centers in 80 regions, with more than 200 localization zones. Every data center is available to all customers and can run all of the company's products. The network has over 10,000 network adjacencies to over 700 unique autonomous system numbers. The company states a latency guarantee of 10 milliseconds for non-decrypted traffic and 50 milliseconds for decrypted traffic inspection, plus 99.999% uptime.

How it makes money

Customers do not take possession of the software. They receive access to the platform for the contract term, and subscription revenue is recognised ratably over that term, which typically runs from one to three years. Subscriptions account for approximately 99% of total revenue, and professional services and hardware are an immaterial portion.

Who buys from it

The company sorts customers into three groups by employee count:

- Major Accounts, with 40,000 or more employees - Enterprises, with 2,000 to 39,999 employees - Mid-Market, with fewer than 2,000 employees

Approximately one-third of the Fortune 100 and approximately 19% of the Forbes Global 2000 were customers as of 31 January 2026. It follows a land-and-expand approach, usually starting a customer on two or more products and then adding users, products and use cases. It has also pursued U.S. federal government agencies and holds FedRAMP High Authorization. It lists further certifications in Germany, the UK, Australia, Canada and Spain.

How it sells

Sales come through a direct sales force, channel partners and a global customer success team. Channel partners include value added resellers, distributors, system integrators, managed service providers and global telecommunications service providers. The company names technology partnerships with Amazon, CrowdStrike, Google, MetTel, Microsoft, Okta and Telstra. Netskope Cloud Exchange offers more than 100 pre-built integrations with IT platforms and cloud services. Marketing is digital and account-based, supported by events such as the global SASE Summit, which spans over 30 cities.

Technology, competition and people

The company held over 270 issued patents and over 100 pending applications as of 31 January 2026. Its Netskope AI Labs team accounts for over 50 AI/ML patents granted and over 190 AI/ML models deployed. Netskope Threat Labs researches web, cloud and AI threats.

The company names Broadcom, Cisco, Fortinet, Palo Alto Networks and Zscaler as its primary competitors. It says many competitors have greater financial, technical and operational resources. Its employees are not represented by a labor union, other than mandatory collective bargaining and works councils in various EU and Latin American countries. The company describes its culture through the acronym GRIT: Guts, Resolve, Integrity and Tenacity.

*From Netskope's annual report on Form 10-K for the year ended 31 January 2026. [The filing](https://www.sec.gov/Archives/edgar/data/2063196/000119312526135011/ck0002063196-20260131.htm)*

From the company's 10-K.