- Annual Recurring Revenue increased 29% year-over-year to $845 million
- Q1 revenue increased 28% year-over-year to $202 million
SANTA CLARA, Calif., June 03, 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 first quarter of fiscal year 2027 ended April 30, 2026.
“We started fiscal year 2027 with strong ARR growth of 29% year-over-year, a testament to the critical role Netskope plays in securing the modern enterprise,” said Sanjay Beri, CEO of Netskope. “The rise of AI is exponentially increasing the pace and potency of attacks and the misuse of sensitive data, while most organizations deploying agents have little or no policy controls in place to do so securely. This is the era that Netskope was built for. Our fundamental right to win is rooted in the AI-native fabric of our extensive Netskope One platform, providing the semantic intent and context needed to secure broad AI usage including autonomous agents at scale. Netskope is empowering our customers to close the AI Security Gap without compromising performance. This deep technological moat differentiates us from our competitors and has strongly positioned us for the massive market opportunity created by the AI Supercycle.”
First Quarter Fiscal 2027 Financial Highlights
- Annual Recurring Revenue (ARR): ARR grew 29% year-over-year to $845 million as of April 30, 2026.
- Revenue: Q1 revenue was $201.6 million, an increase of 28% year-over-year.
- Gross Profit and Margin: GAAP gross profit was $148.3 million for the first quarter of fiscal 2027, compared to $109.5 million for the first quarter of fiscal 2026, and GAAP gross margin was 74%, compared to 69% for the first quarter of fiscal 2026. Non-GAAP gross profit was $154.6 million, compared to $116.1 million for the first quarter of fiscal 2026, and non-GAAP gross margin was 77%, compared to 74% for the first quarter of fiscal 2026.
- Loss from Operations and Operating Margin: GAAP loss from operations was ($108.7) million in the first quarter of fiscal 2027, compared to a loss of ($45.4) million for the first quarter of fiscal 2026, and GAAP operating margin was (54%), compared to (29%) for the first quarter of fiscal 2026. Non-GAAP loss from operations was ($29.2) million, compared to a loss of ($28.6) million for the first quarter of fiscal 2026, and non-GAAP operating margin was (14%), compared to (18%) for the first quarter of fiscal 2026.
- Net Loss Per Share: GAAP net loss per share was ($0.29) in the first quarter of fiscal 2027, compared to ($0.76) in the first quarter of fiscal 2026. Non-GAAP net loss per share was ($0.06), compared to ($0.28) in the first quarter of fiscal 2026.
- Cash Flow: Net cash used in operations was ($53.9) million in the first quarter of fiscal 2027, compared to $25.6 million provided by operations in the first quarter of fiscal 2026. Free cash flow was ($57.2) million, compared to $17.5 million in the first quarter of fiscal 2026 and free cash flow margin was (28%), compared to 11% in the first quarter of fiscal 2026.
- Cash, Cash Equivalents, and Marketable Securities: Total cash, cash equivalents, and marketable securities at the end of the first quarter of fiscal 2027 was $1.1 billion.
Recent Business Highlights
- Announced the Launch of Netskope One AgentSkope, an architectural foundation that allows organizations to easily deploy Netskope AI agents capable of running end-to-end security and networking workflows autonomously to assist security and networking teams bogged down by capacity constraints, complexity and manual triage, freeing up skilled staff to focus on strategic initiatives. The initial launch includes six agents:
- Netskope DLP AISecOps Agent
- Netskope Insider Threat AISecOps Agent
- Netskope Private Access AIOps Agent
- Netskope DEM Data Intelligence Agent
- Netskope DEM Insights Agent
- Netskope CCI Insights Agent
- Announced the Launch of Netskope AI Command Center, bringing end-to-end operational intelligence that broadens and unifies how customers discover AI, manage risks, and autonomously remediate issues across the entire enterprise AI ecosystem.
- Additionally, Netskope announced an expanded Global Partnership with Deloitte to Deliver Managed SASE Services. Deloitte will leverage Netskope technology to provide managed SASE capabilities to enterprises seeking to transform their infrastructure, modernize security and networking, and drive secure AI adoption.
We also announced new and expanded collaborations across AI security:
- Joining Anthropic’s Project Glasswing, using Anthropic’s most advanced AI model, Claude Mythos, to find vulnerabilities in code at unprecedented speed and scale while working together to secure and defend organizations at AI speed.
- Integrating with Anthropic’s Compliance API, which enables organizations to build security directly into their Claude workflows. By surfacing Claude activity within the Netskope One Platform, organizations can govern Claude using the same risk frameworks, DLP profiles, and compliance controls they already operate, without adding operational overhead.
- Participating in OpenAI’s Trusted Access for Cyber program, which includes access to GPT-5.5-Cyber in limited preview. We view this as a vital force multiplier that turns AI potential into immediate operational impact, accelerating time from novel attack behavior to stronger protections for the thousands of enterprises that rely on Netskope today.
- Announcing Netskope AI Guardrails Solution Powered by Google Cloud TPUs to deliver performance and security for AI workflows. The new solution uses Netskope One AI Guardrails to enable enterprise deployment of high-performance generative AI and autonomous agentic workflows at scale on Google Cloud.
Planned CFO Transition
Additionally, as a next step in Netskope's long-term succession planning process, Chief Financial Officer Drew Del Matto - working closely with the CEO & Board of Directors - has announced his intention to retire following a distinguished 40-year career, including seven years helping guide Netskope through a period of significant growth and transformation. To ensure a seamless leadership transition, Mr. Del Matto intends to remain in his current role as CFO while the Company conducts a comprehensive search for his successor, and then to transition to an advisory role for a period thereafter.
Financial Outlook
Netskope is providing the following guidance for the second quarter and full year fiscal 2027:
For the second quarter of fiscal 2027, we expect:
- Revenue of $213 million to $215 million, representing approximately 25% to 26% growth year-over-year
- Non-GAAP operating margin of approximately (14%) to (15%)
- Non-GAAP net loss per share of ($0.06) to ($0.07), using approximately 410 million weighted average common stock outstanding
For the full year of fiscal 2027, we now expect:
- Total revenue of $879 million to $883 million, representing approximately 24% to 25% growth year-over-year
- Non-GAAP gross margin of approximately 77%
- Non-GAAP operating margin of approximately (9.5%) to (10.0%)
- Non-GAAP net loss per share of ($0.18), 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.
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.
Conference Participation Schedule
Netskope will participate and present at the following upcoming investor conferences. Details of the events are as follows:
- FBN Virtual Conference - Friday, June 5, 2026, 11:00 a.m. Pacific Time / 2:00 p.m. Eastern Time
- Mizuho Technology Conference, New York, NY - Wednesday, June 10, 2026. 1:05 p.m. Eastern Time
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 atnetskope.com,netskope.ai, onLinkedIn, andInstagram.
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 second quarter of fiscal 2027 and full year fiscal 2027, the market opportunity created by AI and the demand for AI security products. 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 and amortization of acquired intangible assets. 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, gain or loss on fair value changes 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, gain or loss on fair value changes 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 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:
Floris van der Veer
IR@netskope.com
Media Relations Contact:
Tim Whitman
press@netskope.com
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NETSKOPE, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
(unaudited)
|
| | April 30, | | January 31, | |
| | | 2026 | | | | 2026 | | |
| Assets | | | | |
| Current assets: | | | | |
| Cash and cash equivalents | $ | 205,850 | | | $ | 432,583 | | |
| Marketable securities | | 897,338 | | | | 725,603 | | |
| Accounts receivable, net | | 136,131 | | | | 158,278 | | |
| Inventories | | 5,226 | | | | 4,902 | | |
| Deferred contract acquisition costs | | 55,089 | | | | 54,048 | | |
| Prepaid expenses and other current assets | | 71,725 | | | | 73,553 | | |
| Total current assets | | 1,371,359 | | | | 1,448,967 | | |
| Property and equipment, net | | 91,859 | | | | 93,876 | | |
| Operating lease right-of-use assets | | 31,258 | | | | 32,096 | | |
| Intangible assets, net | | 21,248 | | | | 21,403 | | |
| Goodwill | | 61,083 | | | | 61,083 | | |
| Deferred contract acquisition costs, noncurrent | | 101,139 | | | | 100,798 | | |
| Other assets, noncurrent | | 13,061 | | | | 14,069 | | |
| Total assets | $ | 1,691,007 | | | $ | 1,772,292 | | |
| Liabilities and Stockholders’ Equity | | | | |
| Current liabilities: | | | | |
| Accounts payable | $ | 23,867 | | | $ | 14,436 | | |
| Accrued compensation and benefits | | 55,627 | | | | 99,880 | | |
| Deferred revenue | | 520,602 | | | | 532,732 | | |
| Operating lease liabilities, current | | 9,945 | | | | 10,769 | | |
| Accrued expenses and other current liabilities | | 22,227 | | | | 23,715 | | |
| Total current liabilities | | 632,268 | | | | 681,532 | | |
| Deferred revenue, noncurrent | | 132,234 | | | | 143,126 | | |
| Convertible notes | | 713,321 | | | | 720,960 | | |
| Operating lease liabilities, noncurrent | | 23,339 | | | | 23,424 | | |
| Other liabilities, noncurrent | | 14,329 | | | | 8,719 | | |
| Total liabilities | | 1,515,491 | | | | 1,577,761 | | |
| Stockholders’ equity: | | | | |
| Preferred stock | | - | | | | - | | |
| Class A common stock | | 6 | | | | 6 | | |
| Class B common stock | | 34 | | | | 34 | | |
| Additional paid-in capital | | 2,967,830 | | | | 2,888,202 | | |
| Accumulated other comprehensive loss | | (46,958 | ) | | | (64,811 | ) | |
| Accumulated deficit | | (2,745,396 | ) | | | (2,628,900 | ) | |
| Total stockholders’ equity | | 175,516 | | | | 194,531 | | |
| Total liabilities and stockholders’ equity | $ | 1,691,007 | | | $ | 1,772,292 | | |
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NETSKOPE, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands, except share and per share data)
|
(unaudited)
|
| | Three Months Ended April 30, | |
| | 2026
| | 2025
| |
| Revenue | $ | 201,592 | | | $ | 157,736 | | |
| Cost of revenue(1) | | 53,337 | | | | 48,223 | | |
| Gross profit | | 148,255 | | | | 109,513 | | |
| Operating expenses: | | | | |
| Sales and marketing(1) | | 105,682 | | | | 69,376 | | |
| Research and development(1) | | 105,714 | | | | 67,881 | | |
| General and administrative(1) | | 45,596 | | | | 17,614 | | |
| Total operating expenses | | 256,992 | | | | 154,871 | | |
| Loss from operations | | (108,737 | ) | | | (45,358 | ) | |
| Other income (expense), net: | | | | |
| Loss on changes in fair value of convertible notes | | (12,225 | ) | | | (33,429 | ) | |
| Other income, net | | 7,522 | | | | 1,999 | | |
| Loss before provision for income taxes | | (113,440 | ) | | | (76,788 | ) | |
| Provision for income taxes | | 3,056 | | | | 2,454 | | |
| Net loss | $ | (116,496 | ) | | $ | (79,242 | ) | |
| Net loss per share attributable to common stockholders, basic and diluted | $ | (0.29 | ) | | $ | (0.76 | ) | |
| Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | | 400,493,597 | | | | 104,706,962 | | |
| | | | | |
| (1)Includes stock-based compensation expense as follows: | | | | |
| Cost of revenue | $ | 3,997 | | | $ | 506 | | |
| Sales and marketing | | 14,364 | | | | 3,373 | | |
| Research and development | | 31,235 | | | | 5,308 | | |
| General and administrative | | 26,432 | | | | 904 | | |
| Total stock-based compensation expense | $ | 76,028 | | | $ | 10,091 | | |
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NETSKOPE, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
(unaudited)
|
| | Three Months Ended April 30, | |
| | | 2026 | | | | 2025 | | |
| Cash flows from operating activities | | | | |
| Net loss | $ | (116,496 | ) | | $ | (79,242 | ) | |
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | | | | |
| Stock-based compensation expense | | 76,028 | | | | 10,091 | | |
| Depreciation and amortization | | 10,059 | | | | 13,929 | | |
| Amortization of deferred contract acquisition costs | | 15,336 | | | | 12,313 | | |
| Non-cash operating lease expenses | | 3,607 | | | | 3,147 | | |
| (Accretion of discount) amortization of premium on investments | | (2,069 | ) | | | (274 | ) | |
| Loss on changes in fair value of convertible notes | | 12,225 | | | | 33,429 | | |
| Deferred income tax benefit | | - | | | | (84 | ) | |
| Other | | (18 | ) | | | 30 | | |
| Changes in operating assets and liabilities: | | | | |
| Accounts receivable | | 22,147 | | | | 79,656 | | |
| Inventories | | (364 | ) | | | 103 | | |
| Deferred contract acquisition costs | | (16,718 | ) | | | (13,492 | ) | |
| Prepaid expenses and other current assets | | 873 | | | | (5,953 | ) | |
| Other non-current assets | | 118 | | | | (2,195 | ) | |
| Accounts payable | | 8,019 | | | | 2,833 | | |
| Accrued compensation and benefits | | (43,632 | ) | | | (26,477 | ) | |
| Operating lease liabilities | | (3,678 | ) | | | (2,781 | ) | |
| Accrued expenses and other current liabilities | | (1,938 | ) | | | 4,607 | | |
| Deferred revenue | | (23,022 | ) | | | (4,690 | ) | |
| Other non-current liabilities | | 5,610 | | | | 642 | | |
| Net cash (used in) provided by operating activities | | (53,913 | ) | | | 25,592 | | |
| Cash flows from investing activities | | | | |
| Purchases of property and equipment | | (2,159 | ) | | | (7,410 | ) | |
| Capitalized internal-use software | | (1,094 | ) | | | (726 | ) | |
| Purchases of intangible assets | | (2,300 | ) | | | - | | |
| Purchases of marketable securities | | (444,973 | ) | | | (8,214 | ) | |
| Proceeds from maturities of marketable securities | | 273,347 | | | | 37,865 | | |
| Net cash (used in) provided by investing activities | | (177,179 | ) | | | 21,515 | | |
| Cash flows from financing activities | | | | |
| Proceeds from issuance of common stock under employee stock purchase plan | | 12,272 | | | | - | | |
| Proceeds from issuance of common stock upon exercise of stock options | | 5,820 | | | | 6,604 | | |
| Payments for withholding taxes upon settlement of equity awards | | (14,623 | ) | | | - | | |
| Payments for holdback consideration on business combination | | - | | | | (1,197 | ) | |
| Payments for deferred offering costs | | - | | | | (666 | ) | |
| Net cash provided by financing activities | | 3,469 | | | | 4,741 | | |
| Net (decrease) increase in cash, cash equivalents, and restricted cash | | (227,623 | ) | | | 51,848 | | |
| Cash, cash equivalents, and restricted cash, beginning of period | | 433,769 | | | | 167,197 | | |
| Cash, cash equivalents, and restricted cash, end of period | $ | 206,146 | | | $ | 219,045 | | |
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NETSKOPE, INC.
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RECONCILIATION OF GAAP To NON-GAAP FINANCIAL INFORMATION
|
(in thousands, except percentages and per share data)
|
(unaudited)
|
| | Three Months Ended April 30,
| |
| | 2026
| | 2025
| |
| Gross profit reconciliation: | | | | | | |
| Gross profit | $ | 148,255 | | | $ | 109,513 | | |
| Stock-based compensation expense and related taxes | | 4,067 | | | | 520 | | |
| Amortization of acquired intangible assets | | 2,309 | | | | 6,082 | | |
| Non-GAAP gross profit | $ | 154,631 | | | $ | 116,115 | | |
| Gross margin | | 74 | % | | | 69 | % | |
| Non-GAAP gross margin | | 77 | % | | | 74 | % | |
| | | | | | | |
| Sales and marketing expense reconciliation: | | | | | | |
| Sales and marketing expense | $ | 105,682 | | | $ | 69,376 | | |
| Stock-based compensation expense and related taxes | | (14,728 | ) | | | (3,403 | ) | |
| Amortization of acquired intangible assets | | (146 | ) | | | (516 | ) | |
| Non-GAAP sales and marketing expense | $ | 90,808 | | | $ | 65,457 | | |
| Sales and marketing expense as a percentage of revenue | | 52 | % | | | 44 | % | |
| Non-GAAP sales and marketing expense as a percentage of revenue | | 45 | % | | | 41 | % | |
| | | | | | | |
| Research and development expense reconciliation: | | | | | | |
| Research and development expense | $ | 105,714 | | | $ | 67,881 | | |
| Stock-based compensation expense and related taxes | | (31,643 | ) | | | (5,345 | ) | |
| Non-GAAP research and development expense | $ | 74,071 | | | $ | 62,536 | | |
| Research and development expense as a percentage of revenue | | 52 | % | | | 43 | % | |
| Non-GAAP research and development expense as a percentage of revenue | | 37 | % | | | 40 | % | |
| | | | | | | |
| General and administrative expense reconciliation: | | | | | | |
| General and administrative expense | $ | 45,596 | | | $ | 17,614 | | |
| Stock-based compensation expense and related taxes | | (26,642 | ) | | | (905 | ) | |
| Non-GAAP general and administrative expense | $ | 18,954 | | | $ | 16,709 | | |
| General and administrative expense as a percentage of revenue | | 23 | % | | | 11 | % | |
| Non-GAAP general and administrative expense as a percentage of revenue | | 9 | % | | | 11 | % | |
| | | | | | | |
| Loss from operations reconciliation: | | | | | | |
| Loss from operations | $ | (108,737 | ) | | $ | (45,358 | ) | |
| Stock-based compensation expense and related taxes | | 77,080 | | | | 10,173 | | |
| Amortization of acquired intangible assets | | 2,455 | | | | 6,598 | | |
| Non-GAAP loss from operations | $ | (29,202 | ) | | $ | (28,587 | ) | |
| Operating margin | | (54 | )% | | | (29 | )% | |
| Non-GAAP operating margin | | (14 | )% | | | (18 | )% | |
| | | | | | | |
| Net loss reconciliation: | | | | | | |
| Net loss | $ | (116,496 | ) | | $ | (79,242 | ) | |
| Stock-based compensation expense and related taxes | | 77,080 | | | | 10,173 | | |
| Amortization of acquired intangible assets | | 2,455 | | | | 6,598 | | |
| Loss on fair value changes in convertible notes | | 12,225 | | | | 33,429 | | |
| Provision for income taxes | | 297 | | | | - | | |
| Non-GAAP net loss | $ | (24,439 | ) | | $ | (29,042 | ) | |
| | | | | | | |
| Basic and diluted EPS reconciliation: | | | | | | |
| Net loss per share, basic and diluted | $ | (0.29 | ) | | $ | (0.76 | ) | |
| Stock-based compensation expense and related taxes | | 0.19 | | | | 0.10 | | |
| Amortization of acquired intangible assets | | 0.01 | | | | 0.06 | | |
| Loss on fair value changes in convertible notes | | 0.03 | | | | 0.32 | | |
| Provision for income taxes | | - | | | | - | | |
| Non-GAAP net loss per share, basic and diluted | $ | (0.06 | ) | | $ | (0.28 | ) | |
| Note: Certain figures may not sum due to rounding. | | | | | | |
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NETSKOPE, INC.
|
SELECTED CASH FLOW INFORMATION
|
(in thousands, except percentages)
|
(unaudited)
|
| | Three Months Ended April 30,
| |
| | | 2026 | | | | 2025 | | |
| Reconciliation of cash (used in) provided by operating activities to free cash flow | | | | |
| Net cash (used in) provided by operating activities | $ | (53,913 | ) | | $ | 25,592 | | |
| Purchase of property and equipment | | (2,159 | ) | | | (7,410 | ) | |
| Capitalized internal-use software | | (1,094 | ) | | | (726 | ) | |
| Free cash flow | $ | (57,166 | ) | | $ | 17,456 | | |
| | | | | |
| Net cash (used in) provided by investing activities | $ | (177,179 | ) | | $ | 21,515 | | |
| | | | | |
| Net cash provided by financing activities | $ | 3,469 | | | $ | 4,741 | | |
| | | | | |
| Operating cash flow margin | | (27 | )% | | | 16 | % | |
| Free cash flow margin | | (28 | )% | | | 11 | % | |
| Note: Certain figures may not sum due to rounding. | | | | |
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