NTSK 8-K
Netskope Inc (NTSK)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 – Results of Operations and Financial Condition.
On September 2, 2026, Netskope, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter of fiscal 2027 ended July 31, 2026. A copy of the press release is furnished herewith as Exhibit 99.1. The Company makes reference to non-GAAP financial information in the Company’s press release. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release.
Item 7.01 – Regulation FD Disclosure.
On September 2, 2026, the Company posted supplemental investor materials on the investor relations section of its website (investors.netskope.com). The Company announces material information to the public about it, its products and services, and other matters through a variety of means, including filings with the Securities and Exchange Commission, press releases, public conference calls, webcasts, the investor relations section of its website (investors.netskope.com), LinkedIn (Netskope) and Instagram (@Netskope) in order to achieve broad, non-exclusionary distribution of information to the public and for complying with its disclosure obligations under Regulation FD.
The information contained in Item 2.02 and Item 7.01 of this Current Report on Form 8-K and in the accompanying exhibits are “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.
Item 9.01 – Financial Statements and Exhibits.
Exhibit Number |
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Description |
99.1 |
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Press Release issued by Netskope, Inc. dated September 2, 2026 |
104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Netskope, Inc. |
Date: |
September 2, 2026 |
By: |
/s/ Drew Del Matto |
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Name: |
Drew Del Matto |
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Title: |
Chief Financial Officer |
Exhibit 99.1
Netskope Announces Strong Second Quarter Fiscal 2027 Financial
Results
SANTA CLARA, Calif. – September 2, 2026 – Netskope, Inc. (NASDAQ: NTSK) a leader in modern security and networking for the cloud and AI era, today announced financial results for the second quarter of fiscal year 2027 ended July 31, 2026.
“We are pleased with our strong second quarter performance, exceeding our guidance across every metric. Our results were driven by continued differentiating organic innovation, and durable customer demand for our Netskope One platform across security, networking, analytics and AI,” said Sanjay Beri, CEO of Netskope. “We are encouraged by early traction with our AI Security solutions, validating that Netskope sits right at the intersection of cloud, AI, networking and security and is becoming part of the essential, adaptive fabric for the modern enterprise to adopt AI safely. With our rapid product innovation, we are well positioned to go after our massive market opportunity.”
Second Quarter Fiscal 2027 Financial Highlights
1
Recent Business Highlights
Financial Outlook
Netskope is providing the following guidance for the third quarter and full year fiscal 2027:
For the third quarter of fiscal 2027, we expect:
For the full year of fiscal 2027, we now expect:
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
2
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:
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, on LinkedIn, and on 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 third quarter of fiscal 2027 and full year fiscal 2027, market opportunity 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.
3
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 restructuring costs. 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, restructuring costs, 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, restructuring costs, 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 they provide 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.
4
Annual Recurring Revenue
We define Annual Recurring Revenue (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.
Gartner Disclaimer
Gartner, Magic Quadrant for Security Service Edge, John Watts, Thomas Lintemuth, Theo de Feligonde, Jonathan Forest, 29 July 2026.
Gartner, Magic Quadrant for SASE Platforms, Jonathan Forest, Andrew Lerner, John Watts, 28 July 2026.
Gartner, Critical Capabilities for Security Service Edge, Thomas Lintemuth, Theo de Feligonde, John Watts, Jonathan Forest, 3 August 2026.
Gartner and Magic Quadrant are trademarks of Gartner, Inc. and/or its affiliates.
Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose.
Investor Relations Contact:
Floris van der Veer
Director of Investor Relations, Netskope
Media Contact:
Tim Whitman
Director of Global Corporate Communications, Netskope
5
NETSKOPE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
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July 31, |
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January 31, |
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2026 |
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2026 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
220,854 |
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$ |
432,583 |
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Marketable securities |
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846,509 |
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725,603 |
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Accounts receivable, net |
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187,971 |
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158,278 |
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Inventories |
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4,841 |
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4,902 |
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Deferred contract acquisition costs |
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58,387 |
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54,048 |
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Prepaid expenses and other current assets |
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67,723 |
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73,553 |
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Total current assets |
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1,386,285 |
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1,448,967 |
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Property and equipment, net |
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96,814 |
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93,876 |
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Operating lease right-of-use assets |
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32,262 |
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32,096 |
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Intangible assets, net |
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18,563 |
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21,403 |
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Goodwill |
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61,083 |
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61,083 |
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Deferred contract acquisition costs, noncurrent |
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106,037 |
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100,798 |
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Other assets, noncurrent |
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11,170 |
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14,069 |
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Total assets |
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$ |
1,712,214 |
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$ |
1,772,292 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
25,929 |
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$ |
14,436 |
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Accrued compensation and benefits |
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76,646 |
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99,880 |
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Deferred revenue |
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546,462 |
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532,732 |
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Operating lease liabilities, current |
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10,229 |
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10,769 |
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Accrued expenses and other current liabilities |
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30,085 |
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23,715 |
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Total current liabilities |
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689,351 |
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681,532 |
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Deferred revenue, noncurrent |
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124,213 |
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143,126 |
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Convertible notes |
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698,116 |
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720,960 |
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Operating lease liabilities, noncurrent |
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23,887 |
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23,424 |
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Other liabilities, noncurrent |
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19,861 |
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8,719 |
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Total liabilities |
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1,555,428 |
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1,577,761 |
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Stockholders’ equity: |
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Preferred stock |
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- |
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- |
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Class A common stock |
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6 |
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6 |
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Class B common stock |
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|
35 |
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34 |
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Additional paid-in capital |
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3,021,543 |
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2,888,202 |
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Accumulated other comprehensive loss |
|
|
(8,585 |
) |
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|
(64,811 |
) |
Accumulated deficit |
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|
(2,856,213 |
) |
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|
(2,628,900 |
) |
Total stockholders’ equity |
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|
156,786 |
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|
194,531 |
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Total liabilities and stockholders’ equity |
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$ |
1,712,214 |
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|
$ |
1,772,292 |
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6
NETSKOPE, INC.
CONDENSED CONSOLIDATED STATEMENTS of OPERATIONS
(in thousands, except share and per share data)
(unaudited)
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Three Months Ended July 31, |
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Six Months Ended July 31, |
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2026 |
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2025 |
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2026 |
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2025 |
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Revenue |
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$ |
220,541 |
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$ |
170,758 |
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$ |
422,133 |
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$ |
328,494 |
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Cost of revenue(1) |
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57,523 |
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47,514 |
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110,860 |
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95,737 |
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Gross profit |
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163,018 |
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123,244 |
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311,273 |
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232,757 |
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Operating expenses: |
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Sales and marketing(1) |
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105,916 |
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78,050 |
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211,598 |
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147,426 |
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Research and development(1) |
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101,787 |
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72,856 |
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207,501 |
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140,737 |
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General and administrative(1) |
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45,114 |
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18,303 |
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90,710 |
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35,917 |
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Total operating expenses |
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252,817 |
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169,209 |
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509,809 |
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324,080 |
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Loss from operations |
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(89,799 |
) |
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(45,965 |
) |
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(198,536 |
) |
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(91,323 |
) |
Other income (expense), net: |
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Loss on changes in fair value of convertible notes |
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(26,528 |
) |
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(43,973 |
) |
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(38,753 |
) |
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(77,402 |
) |
Other income, net |
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8,630 |
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2,123 |
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16,152 |
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4,122 |
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Loss before provision for income taxes |
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(107,697 |
) |
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(87,815 |
) |
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(221,137 |
) |
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(164,603 |
) |
Provision for income taxes |
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3,120 |
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2,486 |
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6,176 |
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4,940 |
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Net loss |
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$ |
(110,817 |
) |
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$ |
(90,301 |
) |
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$ |
(227,313 |
) |
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$ |
(169,543 |
) |
Net loss per share attributable to common stockholders, basic and diluted |
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$ |
(0.27 |
) |
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$ |
(0.84 |
) |
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$ |
(0.56 |
) |
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$ |
(1.59 |
) |
Weighted-average shares used in computing net loss per share |
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405,045,835 |
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108,096,178 |
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402,802,925 |
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106,429,655 |
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(1)Includes stock-based compensation expense as follows: |
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Cost of revenue |
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$ |
3,445 |
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$ |
421 |
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$ |
7,442 |
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$ |
927 |
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Sales and marketing |
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|
10,846 |
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|
|
3,086 |
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|
|
25,210 |
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|
|
6,459 |
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Research and development |
|
|
25,160 |
|
|
|
3,491 |
|
|
|
56,395 |
|
|
|
8,799 |
|
General and administrative |
|
|
23,521 |
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|
|
553 |
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|
|
49,953 |
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|
|
1,457 |
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Total stock-based compensation expense |
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$ |
62,972 |
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|
$ |
7,551 |
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|
$ |
139,000 |
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|
$ |
17,642 |
|
7
NETSKOPE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
|
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Six Months Ended July 31, |
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2026 |
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2025 |
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Cash flows from operating activities |
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|
|
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|
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Net loss |
|
$ |
(227,313 |
) |
|
$ |
(169,543 |
) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
|
|
|
|
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Stock-based compensation expense |
|
|
139,000 |
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|
|
17,642 |
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Depreciation and amortization |
|
|
20,647 |
|
|
|
25,497 |
|
Amortization of deferred contract acquisition costs |
|
|
31,944 |
|
|
|
25,347 |
|
Non-cash operating lease expenses |
|
|
7,499 |
|
|
|
6,532 |
|
(Accretion of discount) amortization of premium on investments |
|
|
(4,737 |
) |
|
|
(454 |
) |
Loss on changes in fair value of convertible notes |
|
|
38,753 |
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|
|
77,402 |
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Other |
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|
(13 |
) |
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|
210 |
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Changes in operating assets and liabilities: |
|
|
|
|
|
|
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Accounts receivable |
|
|
(29,693 |
) |
|
|
47,793 |
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Inventories |
|
|
60 |
|
|
|
113 |
|
Deferred contract acquisition costs |
|
|
(41,522 |
) |
|
|
(34,320 |
) |
Prepaid expenses and other current assets |
|
|
587 |
|
|
|
(6,831 |
) |
Other non-current assets |
|
|
2,009 |
|
|
|
1,769 |
|
Accounts payable |
|
|
10,110 |
|
|
|
4,535 |
|
Accrued compensation and benefits |
|
|
(23,338 |
) |
|
|
(7,194 |
) |
Operating lease liabilities |
|
|
(7,742 |
) |
|
|
(5,917 |
) |
Accrued expenses and other current liabilities |
|
|
7,338 |
|
|
|
8,939 |
|
Deferred revenue |
|
|
(5,183 |
) |
|
|
16,070 |
|
Other non-current liabilities |
|
|
11,142 |
|
|
|
1,124 |
|
Net cash (used in) provided by operating activities |
|
|
(70,452 |
) |
|
|
8,714 |
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Cash flows from investing activities |
|
|
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|
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Purchases of property and equipment |
|
|
(15,162 |
) |
|
|
(9,038 |
) |
Capitalized internal-use software |
|
|
(1,349 |
) |
|
|
(1,873 |
) |
Purchases of intangible assets |
|
|
(2,300 |
) |
|
|
- |
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Purchases of marketable securities |
|
|
(689,633 |
) |
|
|
(22,386 |
) |
Proceeds from maturities of marketable securities |
|
|
568,090 |
|
|
|
52,901 |
|
Net cash (used in) provided by investing activities |
|
|
(140,354 |
) |
|
|
19,604 |
|
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 |
|
|
15,299 |
|
|
|
21,257 |
|
Payments for withholding taxes upon settlement of equity awards |
|
|
(28,403 |
) |
|
|
- |
|
Payments for holdback consideration on business combination |
|
|
(981 |
) |
|
|
(1,197 |
) |
Payments for deferred offering costs |
|
|
- |
|
|
|
(3,579 |
) |
Net cash provided by financing activities |
|
|
(1,813 |
) |
|
|
16,481 |
|
Net (decrease) increase in cash, cash equivalents, and restricted cash |
|
|
(212,619 |
) |
|
|
44,799 |
|
Cash, cash equivalents, and restricted cash, beginning of period |
|
|
433,769 |
|
|
|
167,197 |
|
Cash, cash equivalents, and restricted cash, end of period |
|
$ |
221,150 |
|
|
$ |
211,996 |
|
8
NETSKOPE, INC.
RECONCILIATION OF GAAP To NON-GAAP FINANCIAL INFORMATION
(in thousands, except percentage and per share data)
(unaudited)
|
|
Three Months Ended July 31, |
|
|
|
Six Months Ended July 31, |
|
|
||||||||||||
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
||||
Gross profit reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit |
|
$ |
163,018 |
|
|
|
$ |
123,244 |
|
|
|
$ |
311,273 |
|
|
|
$ |
232,757 |
|
|
Stock-based compensation expense and related taxes |
|
|
3,581 |
|
|
|
|
421 |
|
|
|
|
7,648 |
|
|
|
|
941 |
|
|
Amortization of acquired intangible assets |
|
|
2,534 |
|
|
|
|
3,593 |
|
|
|
|
4,843 |
|
|
|
|
9,675 |
|
|
Non-GAAP gross profit |
|
$ |
169,133 |
|
|
|
$ |
127,258 |
|
|
|
|
323,764 |
|
|
|
|
243,373 |
|
|
Gross margin |
|
|
74 |
|
% |
|
|
72 |
|
% |
|
|
74 |
|
% |
|
|
71 |
|
% |
Non-GAAP gross margin |
|
|
77 |
|
% |
|
|
75 |
|
% |
|
|
77 |
|
% |
|
|
74 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales and marketing expense reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales and marketing expense |
|
$ |
105,916 |
|
|
|
$ |
78,050 |
|
|
|
$ |
211,598 |
|
|
|
$ |
147,426 |
|
|
Stock-based compensation expense and related taxes |
|
|
(11,348 |
) |
|
|
|
(3,378 |
) |
|
|
|
(26,076 |
) |
|
|
|
(6,781 |
) |
|
Amortization of acquired intangible assets |
|
|
(151 |
) |
|
|
|
(534 |
) |
|
|
|
(297 |
) |
|
|
|
(1,050 |
) |
|
Restructuring costs |
|
|
(382 |
) |
|
|
|
- |
|
|
|
|
(382 |
) |
|
|
|
- |
|
|
Non-GAAP sales and marketing expense |
|
$ |
94,035 |
|
|
|
$ |
74,138 |
|
|
|
$ |
184,843 |
|
|
|
$ |
139,595 |
|
|
Sales and marketing expense as a percentage of revenue |
|
|
48 |
|
% |
|
|
46 |
|
% |
|
|
50 |
|
% |
|
|
45 |
|
% |
Non-GAAP sales and marketing expense as a percentage of revenue |
|
|
43 |
|
% |
|
|
43 |
|
% |
|
|
44 |
|
% |
|
|
42 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Research and development expense reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Research and development expense |
|
$ |
101,787 |
|
|
|
$ |
72,856 |
|
|
|
$ |
207,501 |
|
|
|
$ |
140,737 |
|
|
Stock-based compensation expense and related taxes |
|
|
(25,587 |
) |
|
|
|
(3,517 |
) |
|
|
|
(57,230 |
) |
|
|
|
(8,862 |
) |
|
Restructuring costs |
|
|
(2,334 |
) |
|
|
|
- |
|
|
|
|
(2,334 |
) |
|
|
|
- |
|
|
Non-GAAP research and development expense |
|
$ |
73,866 |
|
|
|
$ |
69,339 |
|
|
|
$ |
147,937 |
|
|
|
$ |
131,875 |
|
|
Research and development expense as a percentage of revenue |
|
|
46 |
|
% |
|
|
43 |
|
% |
|
|
49 |
|
% |
|
|
43 |
|
% |
Non-GAAP research and development expense as a percentage of revenue |
|
|
33 |
|
% |
|
|
41 |
|
% |
|
|
35 |
|
% |
|
|
40 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
General and administrative expense reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
General and administrative expense |
|
$ |
45,114 |
|
|
|
$ |
18,303 |
|
|
|
$ |
90,710 |
|
|
|
$ |
35,917 |
|
|
Stock-based compensation expense and related taxes |
|
|
(23,779 |
) |
|
|
|
(553 |
) |
|
|
|
(50,421 |
) |
|
|
|
(1,458 |
) |
|
Restructuring costs |
|
|
(784 |
) |
|
|
|
- |
|
|
|
|
(784 |
) |
|
|
|
- |
|
|
Non-GAAP general and administrative expense |
|
$ |
20,551 |
|
|
|
$ |
17,750 |
|
|
|
$ |
39,505 |
|
|
|
$ |
34,459 |
|
|
General and administrative expense as a percentage of revenue |
|
|
20 |
|
% |
|
|
11 |
|
% |
|
|
21 |
|
% |
|
|
11 |
|
% |
Non-GAAP general and administrative expense as a percentage of revenue |
|
|
9 |
|
% |
|
|
10 |
|
% |
|
|
9 |
|
% |
|
|
10 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loss from operations reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loss from operations |
|
$ |
(89,799 |
) |
|
|
$ |
(45,965 |
) |
|
|
$ |
(198,536 |
) |
|
|
$ |
(91,323 |
) |
|
Stock-based compensation expense and related taxes |
|
|
64,295 |
|
|
|
|
7,869 |
|
|
|
|
141,375 |
|
|
|
|
18,042 |
|
|
Amortization of acquired intangible assets |
|
|
2,685 |
|
|
|
|
4,127 |
|
|
|
|
5,140 |
|
|
|
|
10,725 |
|
|
Restructuring costs |
|
|
3,500 |
|
|
|
|
- |
|
|
|
|
3,500 |
|
|
|
|
- |
|
|
Non-GAAP loss from operations |
|
$ |
(19,319 |
) |
|
|
$ |
(33,969 |
) |
|
|
$ |
(48,521 |
) |
|
|
$ |
(62,556 |
) |
|
Operating margin |
|
|
(41 |
) |
% |
|
|
(27 |
) |
% |
|
|
(47 |
) |
% |
|
|
(28 |
) |
% |
Non-GAAP operating margin |
|
|
(9 |
) |
% |
|
|
(20 |
) |
% |
|
|
(11 |
) |
% |
|
|
(19 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss |
|
$ |
(110,817 |
) |
|
|
$ |
(90,301 |
) |
|
|
$ |
(227,313 |
) |
|
|
$ |
(169,543 |
) |
|
Stock-based compensation expense and related taxes |
|
|
64,295 |
|
|
|
|
7,869 |
|
|
|
|
141,375 |
|
|
|
|
18,042 |
|
|
Amortization of acquired intangible assets |
|
|
2,685 |
|
|
|
|
4,127 |
|
|
|
|
5,140 |
|
|
|
|
10,725 |
|
|
Restructuring costs |
|
|
3,500 |
|
|
|
|
- |
|
|
|
|
3,500 |
|
|
|
|
- |
|
|
Loss on fair value changes in convertible notes |
|
|
26,528 |
|
|
|
|
43,973 |
|
|
|
|
38,753 |
|
|
|
|
77,402 |
|
|
Provision for income taxes |
|
|
150 |
|
|
|
|
- |
|
|
|
|
447 |
|
|
|
|
- |
|
|
Non-GAAP net loss |
|
$ |
(13,659 |
) |
|
|
$ |
(34,332 |
) |
|
|
|
(38,098 |
) |
|
|
|
(63,374 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted EPS reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss per share, basic and diluted |
|
$ |
(0.27 |
) |
|
|
$ |
(0.84 |
) |
|
|
$ |
(0.56 |
) |
|
|
$ |
(1.59 |
) |
|
Stock-based compensation expense and related taxes |
|
|
0.16 |
|
|
|
|
0.07 |
|
|
|
|
0.35 |
|
|
|
|
0.17 |
|
|
Amortization of acquired intangible assets |
|
|
0.01 |
|
|
|
|
0.04 |
|
|
|
|
0.01 |
|
|
|
|
0.10 |
|
|
Restructuring costs |
|
|
0.01 |
|
|
|
|
- |
|
|
|
|
0.01 |
|
|
|
|
- |
|
|
Loss on fair value changes in convertible notes |
|
|
0.07 |
|
|
|
|
0.41 |
|
|
|
|
0.10 |
|
|
|
|
0.73 |
|
|
Provision for income taxes |
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
Non-GAAP net loss per share, basic and diluted |
|
$ |
(0.03 |
) |
|
|
$ |
(0.32 |
) |
|
|
$ |
(0.09 |
) |
|
|
$ |
(0.60 |
) |
|
Note: Certain figures may not sum due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
9
NETSKOPE, INC.
SELECTED CASH FLOW INFORMATION
(in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended July 31, |
|
|
|
Six Months Ended July 31, |
|
|
||||||||||||
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
||||
Reconciliation of cash (used in) provided by operating activities to free |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net cash (used in) provided by operating activities |
|
$ |
(16,539 |
) |
|
|
$ |
(16,878 |
) |
|
|
$ |
(70,452 |
) |
|
|
$ |
8,714 |
|
|
Purchase of property and equipment |
|
|
(13,003 |
) |
|
|
|
(1,628 |
) |
|
|
|
(15,162 |
) |
|
|
|
(9,038 |
) |
|
Capitalized internal-use software |
|
|
(255 |
) |
|
|
|
(1,147 |
) |
|
|
|
(1,349 |
) |
|
|
|
(1,873 |
) |
|
Free cash flow |
|
$ |
(29,797 |
) |
|
|
$ |
(19,653 |
) |
|
|
$ |
(86,963 |
) |
|
|
$ |
(2,197 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net cash provided by (used in) investing activities |
|
$ |
36,825 |
|
|
|
$ |
(1,911 |
) |
|
|
$ |
(140,354 |
) |
|
|
$ |
19,604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net cash (used in) provided by financing activities |
|
$ |
(5,282 |
) |
|
|
$ |
11,740 |
|
|
|
$ |
(1,813 |
) |
|
|
$ |
16,481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating cash flow margin |
|
|
(7 |
) |
% |
|
|
(10 |
) |
% |
|
|
(17 |
) |
% |
|
|
3 |
|
% |
Free cash flow margin |
|
|
(14 |
) |
% |
|
|
(12 |
) |
% |
|
|
(21 |
) |
% |
|
|
(1 |
) |
% |
Note: Certain figures may not sum due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
10