Start here if you're new
what it is
Netskope sells cloud security software that helps companies watch traffic, block threats, and keep remote workers connected.
how it gets paid
Last year Netskope made $538M in revenue. cloud inline security was the main engine at $140M, or 26% of sales.
what just happened
Revenue hit $513M, while gross margin reached 66.2% and EPS stayed negative at -$4.07.
At a glance
n/a balance sheet
15.4x trailing p/e — the market's not buying it — or you found a deal
$1.00 fy2026 eps est
$538M fy2024 rev est
~$4B market cap
What they do
Netskope sells cloud security software that helps companies watch traffic, block threats, and keep remote workers connected.
Netskope sells one platform for security, networking, and analytics, which means your IT team can buy one stack instead of stitching together five tools. The company says its NewEdge network is the backbone of the platform, and that matters because performance and security have to show up in the same click. If management can turn $538 million of expected FY2024 revenue into durable profit, the bundle gets stickier because ripping out security tools is painful.
How they make money
$538M
annual revenue
cloud inline security
$140M
cloud access security broker
$113M
data loss prevention and threat protection
$124M
secure web gateway and private access
$108M
sd-wan, browser, and other services
$54M
The products that matter
unified security and networking platform
Netskope One
core platform · supports $709M revenue
it is the main product behind the company's $709M fiscal 2026 revenue and $811M ARR. that's the engine investors are really underwriting.
32% growth
private security cloud backbone
NewEdge Network
moat infrastructure · tied to deal wins
the company calls it the largest private security cloud. this is the part meant to justify 76% gross margin and why Netskope says it won all new-customer deals.
network moat
services and implementation work
Professional Services & Other
$226.3M · 32% of revenue
this $226.3M segment matters because it helps land and expand customers, but it is not the high-margin part of the story. subscriptions are.
32% of revenue
Key numbers
$1.00
FY2026 EPS est
Projected earnings are $1.00 a share. Plain English: you are paying for a company that still needs to prove it can flip from a $7.40 trailing loss to real profit.
15.4x
trailing p/e
P/E ratio → how many dollars investors pay for one dollar of earnings → so what: 15.4x looks ordinary, but it sits next to deeply negative trailing EPS data.
$805M
long-term debt
Long-term debt is $805 million, or 17% of capital. Plain English: creditors already have a large seat at the table before your upside shows up.
$538M
FY2024 revenue est
Revenue estimate → expected annual sales → so what: Netskope has real scale, but the profit case matters more now than simple top-line size.
Financial health
n/a
strength
- balance sheet grade n/a
- long-term debt $805M (17% of capital)
n/a — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for NTSK right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Revenue hit $513M, while gross margin reached 66.2% and EPS stayed negative at -$4.07.
Revenue grew 178% vs. prior year, which is the loud number. The quiet part is EPS was still a $4.07 loss, so sales growth and shareholder earnings are still living in different zip codes.
$513M
revenue
$4.07
eps
66.2%
gross margin
the number that mattered
66.2% gross margin matters because margin → money left after delivering the product → so what: software companies need high margins to turn growth into profit.
source: company earnings report, 2026
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What could go wrong
the #1 risk here is the march 17, 2026 lockup expiration. this is not generic volatility. it is a specific supply event hitting a stock that already fell 26% in one day on roughly $85.9M volume.
med
lockup expiration and forced price discovery
Certain stock options are subject to a lockup that ends on March 17, 2026. When a newly public stock already trades like this into the event, you have to respect the possibility that more supply hits immediately.
The market already showed you the sensitivity: a 26% one-day drop on about $85.9M volume. More selling could keep the business and the stock disconnected for longer.
med
profitability still lags the growth story
Q4 gross margin of 76% looks like a real software business. Q4 operating margin of -10% says the model is not fully mature yet. You are buying improvement, not finished profitability.
If margin progress stalls, the market can stop paying up for 31–32% growth and start treating this as an expensive work in progress.
med
the moat claim still needs proof
The company points to NewEdge and says Netskope One won all new-customer deals. That may be true. But the public-market version of a moat is durable economics, and right now the cleanest proof is gross margin, not bottom-line profit.
If ARR growth cools while operating losses remain, investors may decide the infrastructure story is impressive but not yet worth a premium multiple.
A company with $709M revenue, $811M ARR, and a -10% operating margin can absolutely grow into the selloff. It can also stay volatile if supply hits before profitability catches up.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
march 17 lockup expiration
This is the near-term event that can overwhelm every other number on the page. Watch post-expiration volume and whether the stock finds a floor.
metric
ARR growth holding near 31%
ARR is the cleanest signal of demand quality. If this slows materially, the recurring-revenue premium gets harder to defend.
trend
free cash flow after Q4
One positive quarter is a start, not a trend. You want to see whether cash generation repeats as the company scales.
risk
operating margin beyond -10%
Gross margin is already strong. The next test is whether operating leverage keeps showing up or stalls before the business reaches consistent profitability.
Analyst rankings
coverage quality
limited
in human-speak: there is not enough ranking data here to outsource your judgment to the sell-side.
what matters instead
business metrics
Focus on $811M ARR, 76% gross margin, and whether the move to positive free cash flow sticks. Those numbers are doing more work than any rank would.
source: institutional data
Institutional activity
institutional ownership data for NTSK is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$15
current price
n/a
target midpoint · n/a from current
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