Netskope, Inc. (NTSK)
NASDAQ:NTSK
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Netskope, Inc.
(NASDAQ:NTSK)
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Rating:53Neutral
Price Target:
$8.50
▼(-13.88% Downside)
Action:Reiterated
Date:06/05/26
The score is primarily driven by mixed financial fundamentals: strong growth and improving cash flow are outweighed by very large losses and high leverage. Earnings-call guidance and forward visibility are supportive, but technicals show a weak price trend and valuation remains pressured due to unprofitability.
Positive Factors
Strong ARR & Revenue Growth
Sustained high single‑digit to high double‑digit ARR and revenue growth demonstrates durable product-market fit in cloud security. Recurring revenue scale increases predictability, supports larger deals and upsells, and creates structural leverage for gross margin expansion and long‑term unit economics as sales efficiencies improve.
Negative Factors
Large & Widening Net Losses
Very large GAAP losses reflect heavy operating investment that outpaces current revenue scale. Persistent deep losses weaken returns to shareholders, require sustained positive free cash flow or refinancing to normalize capital structure, and mean profitability gains must be material and sustained to be durable.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong ARR & Revenue Growth
Sustained high single‑digit to high double‑digit ARR and revenue growth demonstrates durable product-market fit in cloud security. Recurring revenue scale increases predictability, supports larger deals and upsells, and creates structural leverage for gross margin expansion and long‑term unit economics as sales efficiencies improve.
Read all positive factors
Netskope, Inc. (NTSK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.65B
Dividend YieldN/A
Average Volume (3M)5.44M
Price to Earnings (P/E)―
Beta (1Y)2.58
Revenue Growth30.93%
EPS Growth-105.80%
CountryUS
Employees2,605
SectorTechnology
Sector Strength88
IndustrySoftware - Services
Share Statistics
EPS (TTM)-1.86
Shares Outstanding251,821,670
10 Day Avg. Volume8,404,551
30 Day Avg. Volume5,443,510
Financial Highlights & Ratios
PEG Ratio-0.15
Price to Book (P/B)29.64
Price to Sales (P/S)8.13
P/FCF Ratio380.55
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue5.52
Enterprise Value/Gross Profit7.97
Enterprise Value/Ebitda-7.19
Forecast
1Y Price Target
$15.08Price Target Upside52.76% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
EPS Forecast (FY)-0.18
Revenue Forecast (FY)$881.25M
Netskope, Inc. Business Overview & Revenue Model
Company Description
Netskope, Inc. operates as a leading cloud security provider, offering its clients a comprehensive, unified platform known as "Netskope One." This integrated solution is meticulously engineered to ensure robust data protection, facilitate secure a...
How the Company Makes Money
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Netskope, Inc. Earnings Call Summary
Earnings Call Date:Jun 03, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 10, 2026
Earnings Call Sentiment Positive
The call presented a constructive picture: strong ARR and revenue growth, improved gross margins, record retention, meaningful forward contract visibility, a sizable cash balance, and rapid AI product innovation with early customer traction and multiple large enterprise wins. Near-term challenges include softer net new ARR versus a difficult comp, negative Q1 free cash flow due to billing transitions, a large portion of the salesforce still ramping, continued operating losses, and early-stage AI budget dynamics. Management raised full-year revenue guidance and expects net new ARR acceleration in the second half as reps and new products mature, which together with strategic partnerships and the company’s global edge footprint supports a positive outlook.Positive Updates
Strong ARR and Revenue Growth
ARR of $845M, up 29% year-over-year; Q1 revenue of $201.6M (reported as ~$202M) up 28% YoY and ahead of guidance.
Negative Updates
Softness in Net New ARR
Net new ARR was $34M in Q1 versus $39M in Q1 last year and noted as the lowest quarterly dollar net new ARR in nearly two years, in part due to difficult comps from prior seven‑figure expansion deals.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong ARR and Revenue Growth
ARR of $845M, up 29% year-over-year; Q1 revenue of $201.6M (reported as ~$202M) up 28% YoY and ahead of guidance.
Read all positive updates
Company Guidance
Netskope guided Q2 fiscal 27 revenue of $213–$215 million (≈25% growth at the midpoint), operating margin of about -14% to -15%, and non‑GAAP net loss per share of $0.06–$0.07 on ~410 million weighted average shares; for full‑year fiscal 27 it now expects revenue of $879–$883 million (≈24% growth at the midpoint), gross margin of ≈77%, operating margin of ≈-9.5% to -10%, non‑GAAP net loss per share of ~$0.18 on ~415 million weighted average shares, and positive free cash flow margin of 2%–4%. Management noted Q1 free cash flow was -$57 million, cash and marketable securities of $1.1 billion, RPO grew ~33% to >$1.2 billion with contracted future billings up ~71%, and said ARR growth should track revenue (within ~1 point) with net new ARR reaccelerating in the second half as sales reps ramp.Netskope, Inc. Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
32
Negative
Cash Flow
46
Neutral
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 752.85M | 709.00M | 538.27M | 406.88M |
| Gross Profit | 521.41M | 482.67M | 347.90M | 243.25M |
| EBITDA | -577.92M | -652.58M | -204.20M | -263.25M |
| Net Income | -716.64M | -679.39M | -354.51M | -344.85M |
Balance Sheet | ||||
| Total Assets | 1.69B | 1.77B | 858.51M | 773.79M |
| Cash, Cash Equivalents and Short-Term Investments | 1.10B | 1.16B | 246.69M | 286.96M |
| Total Debt | 746.61M | 755.15M | 662.70M | 508.50M |
| Total Liabilities | 1.52B | 1.58B | 1.34B | 1.03B |
| Stockholders Equity | 175.52M | 194.53M | -485.59M | -256.82M |
Cash Flow | ||||
| Free Cash Flow | -58.38M | 15.15M | -151.10M | -208.32M |
| Operating Cash Flow | -41.43M | 38.07M | -110.68M | -167.17M |
| Investing Cash Flow | -827.35M | -628.65M | 2.24M | 176.95M |
| Financing Cash Flow | 894.09M | 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $45.93B | 26.07 | 19.93% | 1.70% | 15.71% | 18.08% | |
79 Outperform | $109.52B | 55.57 | 155.65% | ― | 15.75% | 6.24% | |
72 Outperform | $473.64B | 39.54 | 25.14% | 2.09% | 9.21% | 25.97% | |
72 Outperform | $20.14B | 7.62 | 18.45% | 2.40% | 12.27% | 222.91% | |
70 Outperform | $12.87B | 12.07 | 36.43% | ― | 5.84% | 27.53% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $3.65B | ― | 3150.04% | ― | 30.93% | -105.80% |
* Technology Sector Average
NTSK
Netskope, Inc.
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Netskope, Inc. Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresProduct-Related Announcements
Netskope Reports Strong Q1 Results and AI Expansion
Positive
Jun 3, 2026
On June 3, 2026, Netskope, Inc. reported strong results for its fiscal first quarter 2027, ended April 30, 2026, with annual recurring revenue rising 29% year over year to $845 million and revenue up 28% to $201.6 million, while GAAP gross margin ...
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.