Netskope, Inc. (NTSK)
NASDAQ:NTSK
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Netskope, Inc.
(NASDAQ:NTSK)
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Rating:50Neutral
Price Target:
$12.00
▲(21.58% Upside)
Action:Reiterated
Date:03/13/26
The score is driven primarily by mixed financial performance: strong growth and a shift to positive operating/free cash flow are outweighed by very large losses and elevated leverage. Technicals further pressure the score given a clear downtrend and weak momentum. The earnings call is a partial offset, with constructive guidance and improving unit economics, but near-term free cash flow and profitability headwinds remain significant.
Positive Factors
Revenue & ARR Growth
Sustained high-teens to low-30s revenue and ARR growth is a durable indicator of strong product-market fit and market demand. Consistent net new ARR and accelerating top-line scale the subscription base, improving long-term revenue visibility and enabling multi-year customer lifetime value gains.
Negative Factors
Elevated leverage
A high debt load relative to equity materially constrains financial flexibility and raises refinancing and covenant risk. With sizable operating losses, leverage amplifies downside in slower demand or tighter credit, limiting the company's ability to invest or absorb macro shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & ARR Growth
Sustained high-teens to low-30s revenue and ARR growth is a durable indicator of strong product-market fit and market demand. Consistent net new ARR and accelerating top-line scale the subscription base, improving long-term revenue visibility and enabling multi-year customer lifetime value gains.
Read all positive factors
Netskope, Inc. (NTSK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.63B
Dividend YieldN/A
Average Volume (3M)3.88M
Price to Earnings (P/E)―
Beta (1Y)2.26
Revenue Growth31.72%
EPS Growth-87.56%
CountryUS
Employees2,605
SectorTechnology
Sector Strength88
IndustrySoftware - Services
Share Statistics
EPS (TTM)-2.44
Shares Outstanding231,167,740
10 Day Avg. Volume3,592,842
30 Day Avg. Volume3,875,104
Financial Highlights & Ratios
PEG Ratio-0.68
Price to Book (P/B)163.28
Price to Sales (P/S)44.80
P/FCF Ratio2.10K
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue7.04
Enterprise Value/Gross Profit10.33
Enterprise Value/Ebitda-7.95
Forecast
1Y Price Target
$17.13Price Target Upside73.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)-0.19
Revenue Forecast (FY)$875.11M
Netskope, Inc. Business Overview & Revenue Model
Company Description
A cloud-security company offering a unified platform (“Netskope One”) for data protection, secure access, visibility across apps/web/cloud, threat prevention, and networking optimizations especially for SaaS, web, hybrid, and AI workloads....
How the Company Makes Money
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Netskope, Inc. Earnings Call Summary
Earnings Call Date:Mar 11, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jun 03, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and strategic picture: strong revenue and ARR growth (both +32%+), record net new ARR, improved gross and operating margins, first full-year positive free cash flow, meaningful product/AI innovation, and diversified enterprise wins. Near-term headwinds include a deliberate shift to annual billings that will cause a sizable Q1 free cash flow drag ($50M–$60M), ongoing investments that pressure operating margins in the first half of the year, a slower FY2027 growth guide versus FY2026, and typical ramp/macro uncertainty. Overall, the positives around growth, margin improvement, platform differentiation in AI, and the first full year of positive FCF materially outweigh the near-term, planned financial headwinds.Positive Updates
Strong Top-Line and ARR Growth
Q4 revenue $196M, up 32% year-over-year; full-year revenue $709M, up 32% YoY. Ending ARR $811M, up 31% YoY; record net new ARR of $57M in Q4 and net new ARR $193M for FY2026, up 35% YoY.
Negative Updates
Near-Term Free Cash Flow Headwind from Billing Transition
Transition to annual billings is expected to drive negative free cash flow in Q1 FY2027 of $50M–$60M and reduce FY2027 free cash flow margin by ~6 percentage points (company still expects positive FCF by year-end at 2%–4%).
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Top-Line and ARR Growth
Q4 revenue $196M, up 32% year-over-year; full-year revenue $709M, up 32% YoY. Ending ARR $811M, up 31% YoY; record net new ARR of $57M in Q4 and net new ARR $193M for FY2026, up 35% YoY.
Read all positive updates
Company Guidance
Netskope guided Q1 FY2027 revenue of $197–199M (≈26% growth at the midpoint), operating margin of roughly -16%, non‑GAAP net loss per share of $0.06–0.07 on ≈405M weighted average shares, and negative free cash flow of $50M–$60M (reflecting the billing transition). For full‑year FY2027 they forecast revenue of $870–876M (≈23% growth at the midpoint), gross margin of ~77% (on the path to an 80% long‑term target), operating margin of ~-10% (improving from ~-16% in H1), non‑GAAP net loss per share of ~$0.19 on ≈415M weighted average shares, and a full‑year free cash flow margin of 2%–4% (with the annual‑billing transition estimated to lower FCF margin by ~6 percentage points and cash flow returning to positive in H2).Netskope, Inc. Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
32
Negative
Cash Flow
46
Neutral
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 709.00M | 538.27M | 406.88M |
| Gross Profit | 482.67M | 347.90M | 243.25M |
| EBITDA | -652.58M | -204.20M | -263.25M |
| Net Income | -679.39M | -354.51M | -344.85M |
Balance Sheet | |||
| Total Assets | 1.77B | 858.51M | 773.79M |
| Cash, Cash Equivalents and Short-Term Investments | 1.16B | 246.69M | 286.96M |
| Total Debt | 755.15M | 662.70M | 508.50M |
| Total Liabilities | 1.58B | 1.34B | 1.03B |
| Stockholders Equity | 194.53M | -485.59M | -256.82M |
Cash Flow | |||
| Free Cash Flow | 15.15M | -151.10M | -208.32M |
| Operating Cash Flow | 38.07M | -110.68M | -167.17M |
| Investing Cash Flow | -628.65M | 2.24M | 176.95M |
| Financing Cash Flow | 895.37M | 109.86M | 6.29M |
Netskope, Inc. Risk Analysis
Netskope, Inc. disclosed 69 risk factors in its most recent earnings report. Netskope, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Netskope, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $46.24B | 27.37 | 19.93% | 1.70% | 15.71% | 18.08% | |
80 Outperform | $94.85B | 28.24 | 155.65% | ― | 15.75% | 6.24% | |
73 Outperform | $22.55B | 2.55 | 18.45% | 2.40% | 12.27% | 222.91% | |
72 Outperform | $465.88B | 26.09 | 25.14% | 2.09% | 9.21% | 25.97% | |
70 Outperform | $13.73B | 19.52 | 36.43% | ― | 5.84% | 27.53% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | $4.63B | -25.80 | 342.69% | ― | 31.72% | -87.56% |
* Technology Sector Average
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Netskope, Inc. Corporate Events
Business Operations and StrategyFinancial Disclosures
Netskope Delivers Strong Q4 Results and Cash Flow
Positive
Mar 12, 2026
On March 11, 2026, Netskope reported strong results for its fourth quarter and fiscal year ended January 31, 2026, with ARR up 31% year over year to $811 million and Q4 revenue rising 32% to $196.3 million. The company expanded GAAP and non-GAAP g...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.