-- ARR increased 31% year-over-year to $811 million
-- Q4 revenue increased 32% year-over-year to $196.3 million
-- Q4 net cash provided by operating activities was $18.1 million,
representing 9% of revenue
SANTA CLARA, Calif., March 11, 2026 (GLOBE NEWSWIRE) -- Netskope, Inc. (NASDAQ:NTSK) a leader in modern security and networking for the cloud and AI era, today announced financial results for the fourth quarter and fiscal year 2026, ended January 31, 2026.
"We closed fiscal 2026 on a strong note, delivering record net new ARR in Q4 and achieving our first full year of positive free cash flow," said Sanjay Beri, CEO of Netskope. "The AI Supercycle is here, demanding a new standard for high-performance security and networking. We believe the next decade will be defined by an intelligent edge. Our Netskope One platform combined with our NewEdge network is exactly that - a structural architecture built specifically for the requirements of an autonomous, agentic economy. This AI-native foundation provides the real-time context and policy enforcement needed to move beyond simple visibility and take immediate, automated action across our global fabric. With today's launch of our new AI Security products and our recently announced AI Fast Path, we are providing the foundation to both secure and accelerate the AI world. By unifying high-speed performance with active protection, Netskope is providing the essential, adaptive fabric that empowers the modern enterprise to innovate with confidence and scale without compromise."
Fourth Quarter Fiscal 2026 Financial Highlights
-- Annual Recurring Revenue $(ARR)$: ARR grew 31% year-over-year to $811 million as of January 31, 2026. -- Revenue: Q4 revenue was $196.3 million, an increase of 32% year-over-year. -- Gross Profit and Margin: GAAP gross profit was $143.3 million, compared to $99.3 million for the fourth quarter of fiscal 2025, and GAAP gross margin was 73%, compared to 67% for the fourth quarter of fiscal 2025. Non-GAAP gross profit was $150.1 million, compared to $106.2 million for the fourth quarter of fiscal 2025, and non-GAAP gross margin was 76%, compared to 72% for the fourth quarter of fiscal 2025. -- Loss from Operations and Operating Margin: GAAP loss from operations was ($114.3) million, compared to a loss of ($41.2) million for the fourth quarter of fiscal 2025, and GAAP operating margin was (58%), compared to (28%) for the fourth quarter of fiscal 2025. Non-GAAP loss from operations was ($20.4) million, compared to a loss of ($23.0) million for the fourth quarter of fiscal 2025, and non-GAAP operating margin was (10%), compared to (15%) for the fourth quarter of fiscal 2025. -- Net Loss Per Share: GAAP net loss per share was ($0.14), compared to ($0.75) in the fourth quarter of fiscal 2025. Non-GAAP net loss per share was ($0.04), compared to ($0.23) in the fourth quarter of fiscal 2025. -- Cash Flow: Net cash generated from operations was $18.1 million, compared to $6.1 million in the fourth quarter of fiscal 2025 and operating cash flow margin was 9%, compared to 4% in the fourth quarter of fiscal 2025. Free cash flow was $4.0 million, compared to $4.1 million in the fourth quarter of fiscal 2025 and free cash flow margin was 2%, compared to 3% in the fourth quarter of fiscal 2025. -- Cash, Cash Equivalents, and Marketable Securities: Total cash, cash equivalents, and marketable securities at the end of the fourth quarter was $1.2 billion.
Full Year Fiscal 2026 Financial Highlights
-- Revenue: 2026 revenue was $709.0 million, an increase of 32%
year-over-year.
-- Gross Profit and Margin: GAAP gross profit was $482.7 million, compared
to $347.9 million for fiscal 2025, and GAAP gross margin was 68%,
compared to 65% for fiscal 2025. Non-GAAP gross profit was $531.1 million,
compared to $371.3 million for fiscal 2025, and non-GAAP gross margin was
75%, compared to 69% for fiscal 2025.
-- Loss from Operations and Operating Margin: GAAP loss from operations was
($652.6) million, compared to a loss of ($255.7) million for fiscal 2025,
and GAAP operating margin was (92%), compared to (48%) for fiscal 2025.
Non-GAAP loss from operations was ($111.1) million, compared to ($181.4)
million for fiscal 2025, and non-GAAP operating margin was (16%),
compared to (34%) for fiscal 2025.
-- Net Loss Per Share: GAAP net loss per share was ($3.18), compared to
($3.64) in fiscal 2025. Non-GAAP net loss per share was ($0.48), compared
to ($1.89) in fiscal 2025.
-- Cash Flow: Net cash generated from operations was $38.1 million, compared
to ($110.7) million used in operations in fiscal 2025 and operating cash
flow margin was 5%, compared to (21%) in fiscal 2025. Free cash flow was
$12.4 million, compared to ($151.1) million in fiscal 2025 and free cash
flow margin was 2%, compared to (28%) in fiscal 2025.
Recent Business Highlights
We announced several new products and innovations that expand our market-leading Netskope One platform of more than 25 security, networking, analytics and AI products, including:
-- Netskope One AI Security, a suite of products within the unified Netskope
One platform that are designed to help organizations streamline and
derisk their AI adoption. These products include:
-- Netskope One Agentic Broker, which extends Netskope's existing AI
visibility and security controls to sanctioned and unsanctioned
MCP-based communications.
-- Netskope One AI Gateway, which provides visibility, access, and
runtime control into agentic traffic that organizations want to
inspect in their own privately hosted AI deployments, inclusive of
private LLMs and apps.
-- Netskope One AI Guardrails, which extend existing data and threat
protection capabilities to stop AI-specific threats and provide
thorough real-time LLM content moderation with a single, unified
view of incidents.
-- Netskope One AI Red Teaming, which compliments AI Gateway by
stress-testing privately hosted AI models to ensure
production-readiness of an organization's applications.
-- NewEdge AI Fast Path, which efficiently optimizes network paths for
critical AI destinations, including AI applications hosted in public,
private, or neo-clouds to prioritize and accelerate AI application
traffic.
-- Netskope One Data Lineage, for tracking and visualizing movement of
sensitive data through various levels of origin, usage, and access. Data
Lineage helps organizations classify data through the use of LLMs,
automating a once manually-intensive process.
-- Netskope DNS-as-a-Service (DNSaaS), a secure, cloud-based DNS service for
Netskope clients and tunnels. Enables customers to point DNS traffic to
Netskope for resolution, and then use our DNS content filtering and
security capabilities to provide secure access for use cases such as
guest WiFi access.
-- Netskope Enterprise Browser support was expanded to iOS and Android
mobile devices. Deeper integration with Netskope's Remote Browser
Isolation and Private Access solutions enables customers to connect to
private applications through web browsers on unmanaged devices.
On the partnership front, Netskope expanded its ecosystem of managed security partners, forming a new partnership with Telefónica Tech UK&I to offer a fully managed suite of Netskope's AI-driven security products to enterprises within the region. Netskope also achieved the Amazon Web Services (AWS) Security Competency status for AI Security. This competency assures AWS customers that Netskope has met technical and quality standards to deliver best-in-class solutions for securing AI workloads across AI security use cases.
Financial Outlook
Netskope is providing the following guidance for the first quarter and full year fiscal 2027:
For the first quarter of fiscal 2027, we expect:
-- Q1 revenue of $197 million to $199 million
-- Non-GAAP operating margin of approximately (16.0%)
-- Non-GAAP net loss per share of ($0.06) to ($0.07), using approximately
405 million weighted average common stock outstanding
For the full year of fiscal 2027, we expect:
-- Total revenue of $870 million to $876 million
-- Non-GAAP gross margin of approximately 77%
-- Non-GAAP operating margin of approximately (10.0%)
-- Non-GAAP net loss per share of ($0.19), using approximately 415 million
weighted average common stock outstanding
-- Free cash flow margin of 2% to 4%
These statements are forward-looking, and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, reconciling items that may be incurred in the future, such as stock-based compensation and related employer payroll taxes, the effect of which may be significant.
Netskope Lock-up Expiration
In connection with Netskope's initial public offering (the "IPO"), Netskope's executive officers, directors and the holders of substantially all of Netskope's Class A common stock and securities convertible into or exchangeable for Class A common stock as of the IPO entered into market standoff agreements with Netskope or entered into lock-up agreements with the underwriters that restrict their ability to sell or transfer their shares for a period ending upon the earlier of (i) 12:01 AM Eastern Time on the second trading day after the date that Netskope publicly announces earnings for the fourth quarter of fiscal 2026, provided that such release of earnings is at least 145 days after September 18, 2025, and (ii) the end of the 180th day after September 18, 2025 (the "lock-up period"), subject to certain exceptions.
The lock-up period is scheduled to end at the opening of the market on March 13, 2026, which is the second trading day after the date of this earnings release. Netskope will also release its market standoff agreements when the lock-up period expires.
As of March 5, 2026, Netskope had approximately 156 million shares of Class A common stock outstanding and 244 million shares of Class B common stock outstanding. Netskope estimates that approximately 390 million shares of Class A common stock (including approximately 244 million shares of Class B common stock convertible into Class A common stock and 48 million shares issuable upon the exercise of outstanding vested options) may become eligible for sale in the public market at the open of trading on March 13, 2026, subject to volume limitations, manner of sale provisions and notice provisions under Rule 144 in the case of Netskope affiliates.
Conference Call
Netskope will host a conference call at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time today to discuss its financial results and outlook. The conference call will be available via live webcast and replay at the Investor Relations section of Netskope's website at investors.netskope.com.
Supplemental Financial and Other Information:
Supplemental financial information can be accessed through Netskope's investor relations website at investors.netskope.com.
About Netskope
Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, addresses the needs of both security and networking teams by providing optimized access and real-time, context-based security for the AI ecosystem inclusive of agents, applications, tools, LLMs, people, devices, and data. Thousands of customers, including more than 30 of the Fortune 100, trust the Netskope One platform, its Zero Trust Engine, and its powerful NewEdge network to reduce risk and gain full visibility and control over cloud, AI, SaaS, web, and private applications - providing security and accelerating performance without trade-offs. Learn more at netskope.com, Netskope.ai, on LinkedIn, and Instagram.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, statements regarding our future financial and operating performance, including our GAAP and non-GAAP guidance and financial outlook for the first quarter of fiscal 2027 and full year fiscal 2027, and the impact of AI on enterprises. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including but not limited to: macroeconomic influences and instability, geopolitical events, operations and financial results and the economy in general; risks associated with scaling our business and managing our rapid growth; our ability to expand our partner relationships; our ability to identify and effectively implement the necessary changes to address execution challenges; our limited experience with new products and the risks associated with new product offerings, including adoption by customers and the discovery of software bugs; our ability to attract and retain new customers; the failure to timely develop and achieve market acceptance of new products as well as existing products; rapidly evolving technological developments in the market for security, networking, analytics and AI products and our ability to innovate and remain competitive; length of sales cycles; risks related to the use of AI in our platform; and general market, political, economic and business conditions, as well as those risks and uncertainties included in filings we make with the Securities and Exchange Commission from time to time.
All forward-looking statements in this press release are based on information available to Netskope as of the date hereof, and we undertake no obligation to update these forward-looking statements, to review or confirm analysts' expectations, or to provide interim reports or updates on the progress of the current financial quarter.
Non-GAAP Financial Measures
In addition to GAAP financial measures, this press release includes non-GAAP financial measures that we use to evaluate our business performance, identify trends affecting our business, formulate business plans and make strategic decisions. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share, free cash flow and free cash flow margin, and their respective definitions are presented below.
There are limitations to the non-GAAP financial measures included in this press release, and they may not be comparable to similarly titled measures of other companies. The non-GAAP financial measures included in this press release should not be considered in isolation from or as a substitute for their most directly comparable GAAP financial measures. Our management believes that our non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and income that may not be indicative of our ongoing core operating performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and when planning, forecasting and analyzing future periods.
For a reconciliation of the non-GAAP financial measures presented for historical periods to their most directly comparable GAAP financial measures, please see the tables captioned "Reconciliation of GAAP to Non-GAAP Financial Information" included at the end of this press release. We encourage you to review the reconciliation in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future periods, we may exclude similar items, may incur income and expenses similar to these excluded items and may include other expenses, costs and non-recurring items.
Non-GAAP Gross Profit and Non-GAAP Gross Margin
We define non-GAAP gross profit as GAAP gross profit excluding stock-based compensation expense and related taxes, and amortization of acquired intangible assets. We define non-GAAP gross margin as non-GAAP gross profit as a percentage of revenue.
Non-GAAP Loss from Operations and Non-GAAP Operating Margin
We define non-GAAP loss from operations as GAAP loss from operations excluding stock-based compensation expense and related taxes, amortization of acquired intangible assets, and acquisition-related expense. We define non-GAAP operating margin as non-GAAP loss from operations as a percentage of revenue.
Non-GAAP Net Loss
We define non-GAAP net loss as GAAP net loss adjusted to exclude stock-based compensation expense and related taxes, amortization of acquired intangible assets, acquisition-related expense, gain or loss on fair value change in convertible notes, and non-GAAP provision for (benefit from) income taxes.
Non-GAAP Net Loss Per Share
We define non-GAAP net loss per share as GAAP net loss per share adjusted to exclude stock-based compensation expense and related taxes, amortization of acquired intangible assets, acquisition-related expense, gain or loss on fair value change in convertible notes, and non-GAAP provision for (benefit from) income taxes.
Free Cash Flow and Free Cash Flow Margin
We define free cash flow as net cash provided by (used in) operating activities less purchase of property and equipment and intangible assets and capitalized internal-use software. Free cash flow margin is determined by dividing free cash flow by revenue. We believe free cash flow and free cash flow margin serve as valuable indicators of liquidity, as it provides our management, board of directors, and investors with insight into our ability to generate cash from our operations, strategic initiatives, and strengthening our balance sheet.
ARR
We define ARR as the annualized value of our cloud subscription contracts that are active as of the measurement date, assuming any contract that expires during the next 12 months is renewed on its existing terms. Provided that we are actively negotiating a renewal or new agreement with a customer after the expiration of a contract, we continue to include that contract's annualized value in ARR until the customer notifies us of their decision not to renew. ARR excludes non-recurring components of revenue such as professional services, training, sales of hardware, and other non-recurring revenue.
Investor Relations Contact:
Michelle Spolver
IR@netskope.com
Media Contact:
Tim Whitman
press@netskope.com
NETSKOPE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
January 31, January 31,
2026 2025
Assets
Current assets:
Cash and cash equivalents $ 470,795 $ 166,012
Marketable securities 687,391 80,679
Accounts receivable, net 158,278 195,100
Inventories 4,902 5,763
Deferred contract acquisition
costs 54,048 42,860
Prepaid expenses and other current
assets 73,553 37,991
---------- ----------
Total current assets 1,448,967 528,405
Property and equipment, net 93,876 99,480
Operating lease right-of-use assets 32,096 34,571
Intangible assets, net 21,403 37,242
Goodwill 61,083 61,083
Deferred contract acquisition costs,
noncurrent 100,798 78,805
Other assets, noncurrent 14,069 18,920
Total assets $ 1,772,292 $ 858,506
========== ==========
Liabilities and Stockholders' Equity
(Deficit)
Current liabilities:
Accounts payable $ 14,436 $ 2,652
Accrued compensation and benefits 99,880 62,781
Deferred revenue 532,732 430,156
Operating lease liabilities,
current 10,769 10,267
Accrued expenses and other current
liabilities 23,715 20,852
---------- ----------
Total current liabilities 681,532 526,708
Deferred revenue, noncurrent 143,126 160,151
Convertible notes 720,960 626,622
Operating lease liabilities,
noncurrent 23,424 25,808
Other liabilities, noncurrent 8,719 4,806
---------- ----------
Total liabilities 1,577,761 1,344,095
---------- ----------
Stockholders' equity (deficit):
Convertible preferred stock - 1,050,561
Preferred stock - -
Common stock - 10
Class A common stock 6 -
Class B common stock 34 -
Additional paid-in capital 2,888,202 418,791
Accumulated other comprehensive
loss (64,811) (5,439)
Accumulated deficit (2,628,900) (1,949,512)
---------- ----------
Total stockholders' equity
(deficit) 194,531 (485,589)
Total liabilities and stockholders'
equity (deficit) $ 1,772,292 $ 858,506
========== ==========
NETSKOPE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
Three Months Ended Year Ended
January 31, January 31,
---------------------------- -----------------------------
2026 2025 2026 2025
----------- ----------- ----------- ----------
Revenue $ 196,330 $ 148,486 $ 708,997 $ 538,268
Cost of revenue(1) 53,061 49,160 226,328 190,369
----------- ----------- ----------- ----------
Gross profit 143,269 99,326 482,669 347,899
----------- ----------- ----------- ----------
Operating expenses:
Sales and
marketing(1) 96,447 63,437 393,742 280,828
Research and
development(1) 105,590 61,431 509,029 254,189
General and
administrative(1) 55,518 15,634 232,477 68,623
----------
Total operating
expenses 257,555 140,502 1,135,248 603,640
Loss from operations (114,286) (41,176) (652,579) (255,741)
Other income
(expense), net:
Gain (loss) on
changes in fair
value of
convertible notes 51,585 (35,378) (34,256) (98,627)
Other income, net 9,253 632 18,782 4,101
-----------
Loss before provision
for income taxes (53,448) (75,922) (668,053) (350,267)
Provision for income
taxes 3,322 1,116 11,335 4,243
-----------
Net loss $ (56,770) $ (77,038) $ (679,388) $ (354,510)
=========== =========== =========== ==========
Net loss per share
attributable to
common stockholders,
basic and diluted $ (0.14) $ (0.75) $ (3.18) $ (3.64)
=========== =========== ==========
Weighted-average
shares used in
computing net loss
per share
attributable to
common stockholders,
basic and diluted 394,561,428 102,414,167 213,896,041 97,515,591
=========== =========== =========== ==========
(1) Includes
stock-based
compensation expense
as follows:
Cost of revenue $ 4,272 $ 547 $ 33,217 $ 2,477
Sales and marketing 16,206 3,674 94,510 18,341
Research and
development 33,586 5,960 232,467 24,698
General and
administrative 34,013 1,000 155,997 5,318
Total
stock-based
compensation
expense $ 88,077 $ 11,181 $ 516,191 $ 50,834
=========== =========== =========== ==========
NETSKOPE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Year Ended
January 31,
------------------------
2026 2025
-------- --------
Cash flows from operating activities
Net loss $(679,388) $(354,510)
Adjustments to reconcile net loss to
net cash provided by (used in)
operating activities:
Stock-based compensation expense 516,191 50,834
Depreciation and amortization 45,902 51,544
Amortization of deferred contract
acquisition costs 54,208 45,265
Non-cash operating lease expenses 13,701 11,975
(Accretion of discount) amortization
of premium on investments, net (3,380) (2,029)
Change in fair value of convertible
notes 34,256 98,627
Deferred income tax benefit (2,256) (3,371)
Other 633 1,453
Changes in operating assets and
liabilities:
Accounts receivable 36,822 (81,128)
Inventories 529 686
Deferred contract acquisition costs (87,389) (66,183)
Prepaid expenses and other current
assets (28,155) (4,100)
Other non-current assets 7,149 (8,912)
Accounts payable 11,353 (4,085)
Accrued compensation and benefits 35,215 13,353
Operating lease liabilities (13,108) (13,093)
Accrued expenses and other current
liabilities 6,367 (741)
Deferred revenue 85,551 152,940
Other non-current liabilities 3,872 797
-------- --------
Net cash provided by (used in)
operating activities 38,073 (110,678)
-------- --------
Cash flows from investing activities
Purchases of property and equipment (22,920) (33,695)
Capitalized internal-use software (2,780) (3,390)
Purchases of intangible assets - (3,337)
Payments for business combination, net
of cash acquired - (2,508)
Proceeds from disposal of fixed assets - 30
Purchases of marketable securities (767,447) (104,465)
Proceeds from maturities of marketable
securities 83,996 149,609
Proceeds from sales of marketable
securities 80,496 -
-------- --------
Net cash (used in) provided by
investing activities (628,655) 2,244
-------- --------
Cash flows from financing activities
Proceeds from issuance of common stock
upon initial public offering, net of
underwriting discount and commissions 992,209 -
Payments for deferred offering costs (6,320) (143)
Proceeds from issuance of common stock
upon exercise of stock options 35,257 35,649
Proceeds from issuance of convertible
senior notes, net of issuance cost - 74,355
Cash received for tax withholding
obligations upon settlement of equity
awards 37,435 -
Payments for tax withholding obligations
upon settlement of equity awards (159,325) -
Payments for holdback consideration on
business combination (3,325) -
Repurchase of common stock (565) -
Net cash provided by financing
activities 895,366 109,861
-------- --------
Net increase in cash, cash equivalents,
and restricted cash 304,784 1,427
Cash, cash equivalents, and restricted
cash, beginning of year 167,197 165,770
Cash, cash equivalents, and restricted
cash, end of year $ 471,981 $ 167,197
======== ========
NETSKOPE, INC.
RECONCILIATION OF GAAP to NON-GAAP FINANCIAL INFORMATION
(in thousands, except percentages and per share data)
(unaudited)
Three Months Ended Year Ended
January 31, January 31,
--------------------------- ----------------------------
2026 2025 2026 2025
-------- ------- -------- --------
Gross profit
reconciliation:
Gross profit $ 143,269 $ 99,326 $ 482,669 $ 347,899
Stock-based
compensation
expense and
related taxes 4,494 548 34,037 2,478
Amortization of
acquired
intangible
assets 2,342 6,320 14,358 20,965
Non-GAAP gross
profit $ 150,105 $106,194 $ 531,064 $ 371,342
======== ======= ======== ========
Gross margin 73% 67% 68% 65%
Non-GAAP gross
margin 76% 72% 75% 69%
Sales and
marketing expense
reconciliation:
Sales and marketing
expense $ 96,447 $ 63,437 $ 393,742 $ 280,828
Stock-based
compensation
expense and
related taxes (17,106) (3,840) (97,567) (18,597)
Amortization of
acquired
intangible
assets (151) (534) (1,481) (1,712)
Non-GAAP sales and
marketing expense $ 79,190 $ 59,063 $ 294,694 $ 260,519
======== ======= ======== ========
Sales and marketing
expense as a
percentage of
revenue 49% 43% 56% 52%
Non-GAAP sales and
marketing expense
as a percentage of
revenue 40% 40% 42% 48%
Research and
development
expense
reconciliation:
Research and
development
expense $ 105,590 $ 61,431 $ 509,029 $ 254,189
Stock-based
compensation
expense and
related taxes (35,024) (5,963) (236,498) (24,746)
Amortization of
acquired
intangible
assets - - - (70)
Non-GAAP research
and development
expense $ 70,566 $ 55,468 $ 272,531 $ 229,373
======== ======= ======== ========
Research and
development
expense as a
percentage of
revenue 54% 41% 72% 47%
Non-GAAP research
and development
expense as a
percentage of
revenue 36% 37% 38% 43%
General and
administrative
expense
reconciliation:
General and
administrative
expense $ 55,518 $ 15,634 $ 232,477 $ 68,623
Stock-based
compensation
expense and
related taxes (34,756) (1,000) (157,499) (5,318)
Acquisition
related
credit/expense - 1 - (459)
Non-GAAP general
and administrative
expense $ 20,762 $ 14,635 $ 74,978 $ 62,846
======== ======= ======== ========
General and
administrative
expense as a
percentage of
revenue 28% 11% 33% 13%
Non-GAAP general
and administrative
expense as a
percentage of
revenue 11% 10% 11% 12%
Loss from
operations
reconciliation:
Loss from
operations $(114,286) $(41,176) $(652,579) $(255,741)
Stock-based
compensation
expense and
related taxes 91,380 11,351 525,601 51,139
Acquisition
related
credit/expense - (1) - 459
Amortization of
acquired
intangible
assets 2,493 6,854 15,839 22,747
Non-GAAP loss from
operations $ (20,413) $(22,972) $(111,139) $(181,396)
======== ======= ======== ========
Operating margin (58)% (28)% (92)% (48)%
Non-GAAP operating
margin (10)% (15)% (16)% (34)%
Net loss
reconciliation:
Net loss $ (56,770) $(77,038) $(679,388) $(354,510)
Stock-based
compensation
expense and
related taxes 91,380 11,351 525,601 51,139
Acquisition
related
credit/expense - (1) - 459
Amortization of
acquired
intangible
assets 2,493 6,854 15,839 22,747
(Gain) loss on
fair value
change in
convertible
notes (51,585) 35,378 34,256 98,627
Provision for
(benefit from)
income taxes 274 (348) 638 (2,587)
Non-GAAP net loss $ (14,208) $(23,804) $(103,054) $(184,125)
======== ======= ======== ========
Basic and diluted
EPS
reconciliation:
Net loss per share,
basic and diluted $ (0.14) $ (0.75) $ (3.18) $ (3.64)
Stock-based
compensation
expense and
related taxes 0.23 0.11 2.46 0.52
Acquisition
related
credit/expense - - - -
Amortization of
acquired
intangible
assets 0.01 0.07 0.07 0.23
(Gain) loss on
fair value
change in
convertible
notes (0.13) 0.34 0.16 1.01
Provision for
(benefit from)
income taxes - - - (0.03)
Non-GAAP net loss
per share, basic
and diluted $ (0.04) $ (0.23) $ (0.48) $ (1.89)
======== ======= ======== ========
Note: Certain
figures may not
sum due to
rounding.
NETSKOPE, INC.
SELECTED CASH FLOW INFORMATION
(in thousands, except percentages)
(unaudited)
Three Months Ended Year Ended
January 31, January 31,
--------------------------- ----------------------------
2026 2025 2026 2025
-------- ------- -------- --------
Reconciliation of
cash provided by
(used in)
operating
activities to free
cash flow:
Net cash provided
by (used in)
operating
activities $ 18,123 $ 6,121 $ 38,073 $(110,678)
Purchase of
property and
equipment and
intangible
assets (13,357) (1,258) (22,920) (37,032)
Capitalized
internal-use
software (790) (811) (2,780) (3,390)
Free cash flow $ 3,976 $ 4,052 $ 12,373 $(151,100)
======== ======= ======== ========
Net cash (used in)
provided by
investing
activities $(530,012) $(36,773) $(628,655) $ 2,244
Net cash (used in)
provided by
financing
activities $ (1,968) $ 12,763 $ 895,366 $ 109,861
Operating cash flow
margin 9% 4% 5% (21)%
Free cash flow
margin 2% 3% 2% (28)%
Note: Certain
figures may not
sum due to
rounding.
(END) Dow Jones Newswires
March 11, 2026 16:05 ET (20:05 GMT)