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Iconiq Strategic Partners VIII Holdings, an entity holding a major stake in Netskope, Inc. (NTSK 0.80%), reported a purchase of 610,291 shares of Class A Common Stock on July 8, according to an SEC Form 4 filing.

Transaction summaryMetricValueShares purchased610,291Transaction value$7.2 millionPost-transaction shares (directly held)610,291Post-transaction shares (indirectly held)66.3 millionPost-transaction value$797.18 millionKey questionsWhat is the structure of the remaining indirect holdings?
The 66.3 million indirectly held shares are distributed across several entities, including ICONIQ Strategic Partners VI, L.P. (~8.7 million shares), ICONIQ Strategic Partners VI-B, L.P. (~12.9 million shares), and ICONIQ Strategic Partners II, L.P. (~13.2 million shares), among others.How does the purchase price align with recent market valuation?
The weighted average acquisition price of $11.82 per share was executed slightly below the July 8 market close of $11.92 and represented a discount to the $12.42 price recorded as of the July 9 market close.Who maintains voting and dispositive power over these shares?
Control is shared among Divesh Makan, William J.G. Griffith, and Matthew Jacobson, who serve as the managing members or equity holders of the various ICONIQ Parent GP entities that oversee the investing funds.What is the financial scale of the issuer?
Netskope currently maintains a market capitalization of $5.0 billion and reported trailing twelve-month revenue of $752.9 million, alongside a net loss of $716.6 million.Company OverviewMetricValueShare Price (as of market close 2026-07-09)$12.42Market Capitalization$5.0 billionRevenue (TTM)$752.9 millionNet Income (TTM)-$716.6 millionCompany SnapshotNetskope, Inc. develops and delivers Netskope One, a unified cloud security platform that provides comprehensive data protection, secure access, threat prevention, and networking capabilities across cloud applications and web services.The company operates a subscription-based software-as-a-service (SaaS) business model, generating recurring revenue from enterprise customers through platform licensing and support services.Netskope serves large enterprises and mid-market organizations that require integrated cloud security solutions to protect data and ensure secure access across modern cloud-native environments.Netskope is a leading cloud security provider with a market capitalization of $5.0 billion and TTM revenue of $752.9 million, serving a growing market of enterprises transitioning to cloud-first architectures. The company's Netskope One platform consolidates multiple security functions into a single, integrated solution, providing competitive differentiation through comprehensive visibility and protection across cloud services and web activity. As a pure-play cloud security vendor, Netskope is positioned to benefit from sustained enterprise investment in cloud infrastructure security and data protection initiatives.

What this transaction means for investorsThis purchase ultimately reads as a big, patient backer leaning into weakness rather than heading for the door. ICONIQ was already Netskope's largest shareholder before adding this stake, and buying roughly 610,000 more shares at $11.82 after the stock got cut down from its post-IPO levels is the opposite of the insider selling you usually see in a name this young. When the firm that knows the company best is averaging down, it's a signal worth more than any single executive's trim would be.

Meanwhile, the business behind the buy is still growing fast, even if the stock hasn't reflected that. Netskope's most recent quarter delivered revenue of $201.6 million, up 28%, with annual recurring revenue climbing 29% to $845 million. But shares tumbled after that report on soft free cash flow and a CFO transition, and the company is still deeply unprofitable. CEO Sanjay Beri leaned hard on the "AI Supercycle," arguing Netskope was built for securing enterprise AI and agents, and ultimately, for long-term investors, ICONIQ's buy is a vote of confidence, but it still warrants caution. Net new ARR actually slipped year over year, and the path to positive free cash flow is important to watch as well.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Netskope NASDAQ: NTSK held its annual meeting of stockholders virtually on July 7, 2026, with shareholders approving both proposals presented by the company, according to remarks made during the meeting.

Sanjay Beri, Netskope’s chairman of the board, chief executive officer and co-founder, called the meeting to order and welcomed stockholders. Beri served as chairperson of the meeting, while Jim Bushnell, Netskope’s general counsel and secretary, recorded the minutes and conducted the formal business portion.

Beri introduced members of the company’s board of directors who were present, including Kimberly Alexy, Will Griffith, Arif Janmohamed, Enrique Salem and Eric Wolford. Executive officers present included Bushnell, Drew Del Matto, chief financial officer, and Michelle Spolver, chief communications and investor relations officer.

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Shareholders Elect Two Class I Directors The first proposal before shareholders was the election of two Class I directors to serve until the 2029 annual meeting of stockholders. The board nominated Beri and Janmohamed, both of whom were already serving as directors of the company.

Bushnell said the board recommended that stockholders vote in favor of each nominee. Based on the preliminary report from the Inspector of Election, stockholders elected Beri and Janmohamed to serve as Class I directors until the 2029 annual meeting.

KPMG Ratified as Independent Auditor The second proposal was the ratification of KPMG LLP as Netskope’s independent registered public accounting firm for the fiscal year ending January 31, 2027. Bushnell said the board recommended that stockholders vote in favor of the ratification.

Representatives from KPMG, Shivani Sopori and Michael Trinh, attended the meeting and were available to answer appropriate questions. Stockholders ratified KPMG’s appointment, according to the preliminary voting results announced during the meeting.

Meeting Procedures and Voting Bushnell said notice of the internet availability of proxy materials was mailed on or about May 27, 2026, to stockholders of record as of May 11, 2026. He said the affidavit, along with copies of the notice, proxy statement and proxy, would be filed with the meeting records.

Tina Perrino, a representative of the Carideo Group, served as Inspector of Election. Bushnell said Perrino advised that sufficient voting power was present to constitute a quorum, allowing the meeting to proceed.

The polls opened at 11:03 a.m. Pacific Time and closed at 11:07 a.m. Pacific Time. Stockholders were able to vote through the virtual meeting website. Bushnell noted that previously submitted proxies remained valid unless a stockholder voted during the meeting, which would revoke the prior proxy.

The company also opened an online portal for questions related to meeting procedures and the proposals under consideration. Bushnell said during the meeting that no relevant stockholder questions had been received.

Final Results to Be Filed With SEC Bushnell said the final voting results will be reported in a Form 8-K filing with the Securities and Exchange Commission.

After the formal business concluded, Beri thanked stockholders for their participation and continued support. “We look forward to another successful year as we continue our mission to modernize security in the cloud and AI era,” Beri said before adjourning the meeting.

About Netskope NASDAQ: NTSKWe are redefining security and networking for the era of cloud and AI. The cloud and AI have completely revolutionized work. We are more dispersed, more productive, and more automated than ever before, and the rate of change is only accelerating. Not since the internet has there been such a transformative tectonic shift. But, with it has come collateral damage-traditional security and networking are now broken. We founded Netskope to address this revolution. We built Netskope One, our unified, cloud-native platform from the ground up to solve the challenge of securing and accelerating the digital interactions of enterprises in this new era.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Netskope (NTSK) reported earnings 30 days ago. What's next for the stock?

Key Takeaways Netskope is expanding AI security and SASE offerings as customers adopt more products on one platform.NTSK reported stronger customer penetration and remaining performance obligations above $1.2 billion.NTSK faces slower ARR growth, lower net retention and partner execution risks as AI demand matures. Netskope (NTSK - Free Report) sits at the intersection of AI security, secure access service edge and cloud-delivered network protection. The investment debate is whether product breadth and AI-driven demand can offset moderating expansion trends.

The company’s recent results show scale, but the setup is not without timing risk. Management expects more net new annual recurring revenue to arrive in the second half of fiscal 2027.

Netskope Builds Around a Unified PlatformNetskope One is built to combine security, networking and analytics in a single Software-as-a-Service platform. The model is designed to protect users, data and applications across cloud, web, software-as-a-service and private-app environments.

NewEdge, Netskope’s private cloud, is central to that strategy. The portfolio includes more than 25 products spanning data protection, cloud and web security, zero-trust networking and analytics, giving customers room to consolidate more functions on one platform.

NTSK Sees AI Security as a New Growth EngineAI security is becoming a bigger part of the story. Netskope expanded its AI Security suite and launched AI Command Center, which gives enterprises a unified view of AI usage, risk and remediation workflows.

Management said AI Security produced the fastest pipeline build of any new category in company history. Collaborations with Anthropic, OpenAI and Google Cloud add enterprise credibility, while Deloitte’s managed secure access service edge relationship may extend deployment reach.

Netskope Customer Metrics Show Deeper AdoptionCustomer penetration supports the bull case. In the first quarter of fiscal 2027, 57% of customers used four or more products, up from 49% a year earlier.

Adoption is also moving deeper. About 28% of customers used six or more products, up from 23%, while customers with more than $100,000 in annual recurring revenue increased 23% year over year to 1,600.

Gross retention remained above the mid-90s and reached a company high in the quarter. Remaining performance obligations rose 33% to more than $1.2 billion, suggesting better visibility into future revenue.

NTSK Risks Start With Timing and ExecutionThe biggest concern is timing. Net retention moderated to 113% from 116% in the prior quarter and 118% in the quarter before that, while net new annual recurring revenue was $34 million versus $39 million a year earlier.

AI demand is still early, and customer evaluations can take longer before converting into deployments. Competitive pricing pressure also matters, especially against larger and focused cybersecurity vendors such as Palo Alto Networks (PANW - Free Report) and Zscaler (ZS - Free Report) , which compete in secure access service edge, cloud security and zero-trust architectures.

Partner reliance adds another layer of risk. Sales through the top five partners and affiliates represented 38% of revenues in the three months ended April 30, 2026, raising the importance of partner execution as Netskope scales newer AI offerings.

Netskope Signals What the Ratings Are SayingThe bottom line is that Netskope’s business narrative remains interesting, but the stock’s near-term quantitative profile looks weak. The platform is gaining broader adoption, and AI security could become a meaningful growth lever.

NTSK currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock also has a Value Score of F, Growth Score of F, Momentum Score of F and VGM Score of F.

The Zacks Rank is geared toward the next one to three months, while the Zacks Style Scores help evaluate value, growth and momentum characteristics over a similar horizon. In this framework, the low rank and across-the-board F scores suggest investors may want to see stronger execution signals before getting more constructive on the stock.

Netskope (NTSK +3.90%) director Arif Janmohamed sold  1.65 million Class A shares owned by his Lightspeed Opportunity Fund, L.P., for a total transaction value of approximately $15.1 million, according to the SEC Form 4 filing.

This cloud security provider, known for its unified platform, had Janmohamed as an independent director since 2023.

Transaction summaryMetricValueShares sold (indirect)1,650,000Transaction value$15.1 millionPost-transaction shares (indirect)0Post-transaction value (direct ownership)~$0Transaction value based on the SEC Form 4 weighted-average purchase price ($9.15); after the transaction, Janmohamed Arif held zero Class A shares, so the post-transaction value was $0.00.

Key questionsWhat does the sale of 1,650,000 Class A shares represent in terms of Arif's total position?
The sale accounted for 100% of Janmohamed’s indirect Class A Common Stock holdings, fully offsetting the previously reported 1,650,000 share position held via Lightspeed Opportunity Fund, L.P.; no direct Class A shares were involved before or after the transaction.How was the transaction structured with respect to derivative and share class mechanics?
Each Class B Common Stock share was converted into one Class A Common Stock share immediately prior to the sale, reflecting a conversion-for-sale structure. The transaction affected only Class A shares.What is the ongoing exposure to Netskope for Arif after this transaction?
While Janmohamed’s indirect Class A Common Stock position was reduced to zero, Lightspeed Opportunity Fund continues to hold 2,690,640 shares of Class B Common Stock which remain convertible to Class A shares and provide ongoing exposure to Netskope's equity upside.How does the transaction align with historical trading cadence and available capacity?
This is Janmohamed’s only open-market sale of Class A shares in the recent period, with the trade size reflecting the entirety of the indirect position; the transaction was capacity-driven rather than a change in cadence, as no Class A shares remain following the sale and conversion.Company overviewMetricValueMarket capitalization$3.66 billionRevenue (TTM)$752.85 millionNet income (TTM)($716.64 million)Price (as of market close June 15, 2026)$9.15Company snapshotOffers a unified cloud security platform, Netskope One, delivering advanced data protection, threat prevention, and secure access across SaaS, web, hybrid IT, and AI-driven environments.Generates revenue through subscription-based licensing of its cloud security solutions and associated services, targeting organizations seeking comprehensive data and threat protection.Serves enterprise customers and large organizations with complex cloud and hybrid infrastructure security requirements, primarily in regulated and data-sensitive industries.Netskope is a leading cloud security provider specializing in integrated solutions for data protection and secure access across complex digital environments. The company leverages its scale and advanced technology to address the evolving security needs of enterprises operating in SaaS, web, and hybrid IT contexts. Netskope's unified platform and focus on threat prevention provide a competitive edge in securing modern workloads for large, security-conscious organizations.

What this transaction means for investorsIt can be unnerving to see a director sell out his complete position. There are multiple reasons an insider may sell a company’s stock, and not all of them involve a bearish outlook on the stock. These reasons can include having to pay a large tax bill, diversifying one’s portfolio, or, in Janmohamed’s case, cashing out his Lightspeed Fund equity to start his own investment firm.

In light of this, Janmohamed’s sale shouldn’t be taken as a bullish or bearish vote, as the executive is raising funds for a new venture capital firm focused on AI and tech investments. The sale is almost certainly his financial stake in the Lightspeed fund for leading its investment into Netskope. The remaining Class B shares held by Lightspeed likely represent other Lightspeed partner shares or client assets.

Netskope held its initial public offering in September at $19. That the stock is trading roughly $10 lower today is a negative sign, and investors should consider that Janmohamed likely had a path to hold his Netskope shares had he really wished to. That said, the business is seen growing sales close to 25% this fiscal year and trimming its net loss.  Janmohamed’s sale is a piece of information Netskope investors should weigh, but it is not a red alert to sell shares.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

SANTA CLARA, Calif., June 17, 2026 (GLOBE NEWSWIRE) -- Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, today launched the Netskope Catalyst MSP/SP Program, a comprehensive partner enablement platform built around partners’ go-to-market needs, and the ability to sell Netskope SASE services with flexible, simplified pricing models. Central to the Catalyst MSP/SP Program is the new Netskope Partner Orchestrator, a self-service solution that enables managed service providers (MSPs) to generate revenue faster and expedite every stage of the customer lifecycle, from planning to customer-ready production environments.

The MSP market is rapidly responding as enterprises seek more cybersecurity services and expertise to safeguard their AI roadmaps. There is also a growing preference for unified platforms that manage every aspect of SASE delivery. By 2028, 50% of new SASE deployments are expected to be based on a single-vendor SASE platform, up from 30% in 2025.1 These changing market dynamics mean service providers are seeking more competitive advantages, easier ways to grow their revenue, and the ability to onboard customers faster.

“MSPs need more than technology; they need partnership solutions built around modern business requirements,” said Parag Thakore, Chief Product Officer, SASE, Netskope. “With Catalyst, Netskope is delivering exactly that: simplified and flexible pricing with 24x7 support included, sub-15-minute tenant provisioning through Netskope Partner Orchestrator, license portability, new Netskope SASE Associate and SASE Specialist accreditations, and marketing support. This is everything MSPs need to onboard faster, operate leaner, and grow their customer base — in one program."

The Netskope Catalyst MSP/SP Program is engineered around how service providers actually run their business: at scale, across multiple customers, with the speed, control, and economics that drive profitable growth. Catalyst's three partner tiers — Foundation, Ascent, and Summit — unlock progressively greater benefits across all six pillars, providing partners with the right resources at every stage of their growth journey. Partner benefits include:

Partner Orchestrator. A self-service multi-tenant orchestrator for the full SASE and AI product suite that quickly provisions production-ready customer environments. Fine-grained access controls support unlimited partner tiers, allowing MSPs to onboard system integrators, sub-partners and resellers beneath them, each scoped to exactly what they need — and no more.Pricing & Packaging. Flexible, simplified pricing with programmatic discounts and 24x7 support included — giving MSPs predictable economics from day one. License portability allows MSPs to move licenses between customers instantly — no ticket, no approval cycle.Deployment & Support. Partner Assist deal support scaled to partner tier, so MSPs don’t have to navigate customer challenges alone.Training. Fast-path to proficiency and rapid onboarding with both new e-learning and instructor-led training including Netskope Sales Core, Netskope SASE Associate and Netskope SASE Specialist accreditations that build credibility and differentiate partners in the market.Sales & Marketing. Marketing support, co-branded campaigns and Partner Summit access to fuel MSP pipeline growth.Operations. Streamlined delivery via service creation workshops, a unified partner portal, and deal protection that keeps partner-sourced opportunities secure. “Our customers are experiencing the power of the Netskope One platform sooner with the infrastructure and partner self-service model that Netskope has built. We are now able to activate a new customer and provision an array of critical SASE services for them in minutes, a process that historically takes up to weeks to complete,” said Bryan Hodges, VP of Operations, Configure, Inc. “As our customers’ needs evolve, we can seamlessly initiate more services on the Netskope One platform in quick succession. The byproduct is time savings and organic revenue creation. What Netskope has launched has our customers’ best interests and our business interests top of mind - a winning proposition and yet another reminder to us about the long-term value we see in this partnership.”

“Netskope has been a partner-centric business since our earliest days, and the introduction of Netskope Partner Orchestrator as a key component of our new Catalyst MSP/SP Program further demonstrates our commitment to our global partner ecosystem,” said Kristin Carnes, Vice President, Global Channel Programs and Strategy, Netskope. “We recognize that partner economics are changing, and for partners to rapidly scale their business, the operational cost per customer must also reduce at scale. What we’re introducing helps to speed up time-to-value and keeps service provider partners in full control the entire time.”

Netskope partners with the world’s largest managed service providers to help simplify how enterprises secure and accelerate their use of data, cloud, and AI applications to improve their overall cybersecurity posture. Collaborations to deliver integrated and fully managed Secure Access Service Edge (SASE) and Security Service Edge (SSE) solutions include relationships with BT, Deloitte, Macquarie Telecom, Orange, and more.

For more details on Netskope’s new Catalyst MSP/SP Program, including Netskope Partner Orchestrator, read the Netskope blog. Interested MSPs can also contact local Netskope sales and channel teams at [email protected].

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, Netskope.ai, on LinkedIn, and Instagram.

Forward-Looking Statements
This press release contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. These forward-looking statements include the demand for AI security solutions and single-vendor platforms. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. A significant number of factors could cause actual results to differ materially from statements made in this press release, including those factors related to customer adoption of new solutions and the impact new offerings may have for customers.

Media Relations Contact:
[email protected]

Investor Relations Contact:
[email protected]

___________________________

1 Gartner, Magic Quadrant for SASE Platforms, Jonathan Forest, Neil MacDonald, Dale Koeppen, 9 July 2025.

Netskope CEO Sanjay Beri discusses rising cybersecurity threats amid the artificial intelligence boom and the importance of real-time protection against A.I.-driven attacks on ‘The Claman Countdown.

SANTA CLARA Calif., May 07, 2026 (GLOBE NEWSWIRE) -- Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, today announced that it will release financial results for its fiscal first quarter ended April 30, 2026, after the market closes on Wednesday, June 3, 2026.

Management will host a live conference call that day at 2:00 pm PT / 5:00 pm ET to discuss the company’s financial results.

A live webcast of the conference call and related materials can be accessed from the company’s investor relations website at https://investors.netskope.com. Following the call, a replay of the webcast will also be available on the investor relations website.

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, Netskope.ai, on LinkedIn, and Instagram.

Investor Relations Contact:
Floris van der Veer
Director of Investor Relations
[email protected]

Media Contact:
Tim Whitman
Director of Global Corporate Communications
[email protected]

What happenedAccording to an SEC filing dated May 11, 2026, Sapphire Ventures, L.L.C. initiated a new position in Netskope (NTSK 5.89%) in the first quarter by acquiring 5,672,579 shares. The estimated value of this transaction is $70.40 million, calculated using the average closing share price during the first quarter of 2026. At quarter’s end, the position was valued at $48.16 million, reflecting market price movements during the reporting period.

What else to knowThis was a new position, with Netskope representing 48.43% of Sapphire Ventures’ 13F reportable assets after the trade.Top holdings after the filing:NASDAQ:NTSK: $48.16 million (48.4% of AUM)NASDAQ:BRZE: $39.33 million (39.5% of AUM)NASDAQ:KLTR: $9.74 million (9.8% of AUM)NYSE:PATH: $2.22 million (2.2% of AUM)As of May 11, 2026, Netskope shares closed at a price of $11.24.Netskope reported trailing twelve months revenue of $709 million and a net loss of $679.39 million through January 31, 2026.The position places Sapphire Ventures’ total reported 13F assets at $99.45 million across four positions.Company OverviewMetricValuePrice (as of market close 2026-05-12)$11.24Market Capitalization$4.50 billionRevenue (TTM)$709.00 millionNet Income (TTM)$ (679.39) millionCompany SnapshotNetskope offers a unified cloud-security platform, "Netskope One," providing data protection, secure access, threat prevention, and network optimization for SaaS, web, hybrid, and AI workloads.It operates primarily on a subscription-based model, delivering its security solutions as cloud services to enterprise customers.The company serves a global client base of large organizations seeking advanced cloud security and compliance for complex digital infrastructures.Netskope, Inc. is a technology company specializing in cloud security solutions for enterprise clients. The company leverages a unified platform to address data protection, threat management, and secure access across cloud and web applications.

With a focus on scalable, subscription-based offerings, Netskope aims to deliver robust security and visibility for organizations navigating digital transformation and evolving cybersecurity threats.

What this transaction means for investorsThe first quarter purchase of Netskope shares by Sapphire Ventures is noteworthy for a few reasons. The transaction represents a new stake, and it was so big, it catapulted Netskope to the hedge fund’s top holding.

Perhaps Sapphire Ventures saw an opportunity in Wall Street’s widespread sell-off of cybersecurity stocks in the first quarter of this year. After all, Netskope shares hit a 52-week low of $7.67 in Q1. This is a substantial drop from its $19 IPO price when the company went public last September.

Netskope is seeing strong business growth. It exited its 2026 fiscal year, ended Jan. 31, with a 32% year-over-year increase in sales to $709 million. Its gross profit also rose to 68% from 65% in fiscal 2025.

With the decline in its stock price, Netskope shares are attractively-priced. Its price-to-sales ratio of 3.5 is a significant reduction from the 14.7 seen around the time of its IPO. This makes now a good time to pick up shares.

Robert Izquierdo has positions in UiPath. The Motley Fool has positions in and recommends Braze and UiPath. The Motley Fool has a disclosure policy.

SANTA CLARA, Calif., May 21, 2026 (GLOBE NEWSWIRE) -- Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, today announced a key integration with the Claude Compliance API. With this, organizations can now connect Claude Enterprise directly into the enhanced AI security features of the Netskope One platform, including full asset, identity and activity visibility, robust policy enforcement, advanced data security, and comprehensive security posture management.

According to the Netskope AI Index - the authoritative source on the enterprise use and adoption of AI worldwide - Anthropic's Claude grew from 56.2% to 94.9% adoption between April 2025 and April 2026. As AI application usage continues to rise at pace, organizations are urgently modernizing their data protection strategies. Maintaining compliance standards, mitigating data policy violations, and helping support secure usage of enterprise applications is increasingly critical.

Netskope One AI Security provides comprehensive discovery, visibility and real-time governance of AI applications, models, agents and tools in use, analyzes their specific risks, and accelerates secure AI adoption across the entire ecosystem, within a fully unified and integrated platform. Netskope’s integration with the Claude Compliance API extends the protections and controls that customers can build around their AI adoption, enabling them 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.

Sanjay Beri, CEO and co-founder, Netskope commented: “Organizations are rapidly moving beyond experimentation and embracing AI at scale. Our integration with the Claude Compliance API is critical to that AI ecosystem story, connecting Netskope's unified data governance and compliance controls directly to Claude usage. This allows our shared customers to adopt these valuable tools at pace and with confidence.”

Anthropic’s Compliance API is a REST API that gives enterprise IT and security teams programmatic access to Claude activity data. Rather than relying on manual exports and periodic reviews, organizations can use the Claude Compliance API for real-time programmatic access to Claude usage data and customer content, enabling them to build continuous monitoring and automated policy enforcement systems. Administrators can integrate Claude data into existing compliance dashboards, automatically flag potential issues, and manage data retention.

Through the integration, Netskope surfaces Claude activity data and enables security teams to:

Get comprehensive visibility into the Claude environment: Automatically inventory all organizations, workspaces, projects, users, API keys, and MCP servers across an entire Claude deployment. Discover every third-party tool and data source Claude is authorized to access and manage access from Netskope’s single integrated console.Protect data and defend against threats: Apply to Claude Enterprise conversations the same DLP policies that already protect other enterprise applications. Every file uploaded to, or generated within, Claude Enterprise is inspected by Netskope’s threat protection and malware engines, with Claude activity also feeding directly into Netskope's UEBA engine, surfacing behavioral anomalies and updating each user's User Confidence Index (UCI) score, so risky behavior in Claude doesn't go undetected.Stay audit-ready and in control: Continuously evaluate Claude's configuration against GDPR, HIPAA, SOC 2 (AICPA TSC), NIST 800-53, CSA CCM, and PCI-DSS, with findings mapped directly to specific compliance controls so teams know exactly what to remediate and why. Maintain full lifecycle governance over Claude API key credentials, including key rotation hygiene, least-privilege audits, orphaned key detection, and administrator attribution, all surfaced within existing Netskope workflows and without requiring custom builds. This integration will be available in private preview for all customers in June. To learn more about securing AI with Netskope, visit here.

About Anthropic
Anthropic is an AI safety company building reliable, interpretable, and steerable AI systems, including Claude, an AI assistant focused on safety and helpfulness.

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, Netskope.ai, on LinkedIn, and Instagram.

Media Relations Contact:
[email protected]

Investor Relations Contact:
[email protected]

A global survey of 1,500+ Chief Product Officers offers data on the future of product leadership and how organizations can create and deliver value at the speed of AI.

, /PRNewswire/ -- Products That Count, the world's largest nonprofit community of product leaders, and Mighty Capital, a venture capital firm specializing in product-led investing, today released the fifth annual Chief Product Officer ("CPO") Insights Report. Drawing on data from more than 1,500 product leaders across industries and geographies, from Fortune 1000 giants to early-stage startups, the 2026 edition dissects how traditional boundaries between product, design, and engineering are collapsing, and explores the emergence of a new kind of operator: the Product Builder, a hybrid Product Manager-engineering role redefining what it means to ship in the AI era. Among the report's most consequential findings: the Product Manager role as we know it will be obsolete by 2030.

"This year's insights carry new weight, because AI's impact on product management is arguably one of the most consequential shifts happening in tech right now. There's a lot of discourse around how companies should meet this moment," said SC Moatti, Founder and Board Chair at Products That Count and Founding Managing Partner at Mighty Capital. "We move beyond the theoretical with data and actionable strategies that give product leaders and organizations the foundation they need to thrive in this new reality."

Key Takeaways from the 2026 Report: What Happens When AI Eliminates Constraint
Product teams have always operated under one simple constraint: building software is expensive, slow, and resource-intensive. Everything about traditional product organizations is designed around that reality, from roadmaps to careful feature prioritization shaped by what engineering had bandwidth to ship. The 2026 CPO Insights Report confirms that in the age of AI, that constraint has largely vanished.

Three out of four product leaders are now using AI to accelerate prototyping and product exploration, with ripple effects emerging across every stage of the product lifecycle, from discovery to iteration to management:

Product Builders Are the New Product Managers In the last year, the number of Product Builders has increased 10x. Simultaneously, the number of traditional product managers has declined by 30% across all industries and by as much as 70% in SaaS. While it once required a team of 12 people to develop a single product, a team of 12 Product Builders can now deliver 12 products. Speed to Market Is the #1 Concern for CPOs in 2026 Speed to market is now the primary internal challenge facing CPOs, jumping from 14% in 2025 to 22% in 2026. Bottlenecks have shifted from building to launching: go-to-market execution, customer adoption, and organizational alignment are now where products get stuck. CPOs are Moving up the Stack to Bet on New Market Opportunities CPOs are spending more time on strategy (74%, up from 69% in 2025) and innovation (31%, up from 21%), and less time on stakeholder management (10%, down from 28%) and roadmap development (10%, down from 18%). The most ambitious CPOs are expanding scope across three new dimensions: geographies, market segments, and routes to market, blurring lines between product and marketing as they take direct ownership of positioning, adoption, and monetization. A New Role Is Emerging: the Chief Product Investor A greater stake in the bottom line is giving rise to the Chief Product Investor, a CPO who thinks like a portfolio manager, places bets across product lines, and cuts what isn't working before the financial metrics catch up. One in three CPOs now owns the AI M&A budget, deciding whether to acquire capabilities or build them with AI-native teams. "The transformational leaders in this next stage of AI will be those willing to redesign how products are built and how organizations operate," said Renée Niemi, Resident Chief Product Officer at Products That Count. "Good product leaders will move features faster. Great ones will rethink the product OS. The best will operate as portfolio-driven engines of innovation, placing bets and scaling what works as Chief Product Investors."

A Legacy of Data-Driven Predictions
The 2026 CPO Insights Report continues Products That Count and Mighty Capital's proven track record of accurate, early predictions:

The rise of the CPO, as predicted in the 2022 CPO Insights Report: The role existed at 3-4% of Fortune 1000 companies in 2020, compared to more than 30% just two years later. The increase in product leaders taking bottom-line ownership, as predicted in the 2023 CPO Insights Report: Over half of all CPOs now have Profit and Loss (P&L) responsibility. The promotion of CPOs to CEO and President, as predicted in the 2024 CPO Insights Report: 20% of Products That Count CPO award winners were promoted to CEO or President within 12 months. To download the full 2026 CPO Insights Report, visit productsthatcount.org/CPO-research.

ABOUT PRODUCTS THAT COUNT
Products That Count is the world's largest nonprofit community, engaging 600,000+ product managers and Chief Product Officers (CPOs) united by a mission: to empower everyone to build products that truly count. In a world flooded with products, only a few ignite passion, deliver value at scale, and transform lives. Behind those exceptional products are visionary CPOs and high-performing product teams driving innovation at the most bleeding-edge companies. We recognize these trailblazers through our coveted Awards, accelerate careers from PM to the C-suite and beyond through daily best practices, and serve as the trusted advisor to nearly all Fortune 1000 CPOs. Our Corporate Alliance includes Walmart, Ford, Cisco, Johnson & Johnson, Amplitude, and more. The most admired product leaders across industries serve on our Advisory Council, guiding the future of product leadership. Together, we're shaping a future where every product counts. Learn more at productsthatcount.org

ABOUT MIGHTY CAPITAL
Mighty Capital is the VC firm that leverages the Product Alpha Effect™, a data-backed way to produce outliers by reading product signals from a 600,000-product-leader network. Founded in 2018 by SC Moatti, a product visionary and former Meta product leader, and Jennifer Vancini, an idea-to-IPO veteran of tech investing, we bring a differentiated edge to venture. Through Moatti's 600,000-strong Products That Count network of product leaders, we see trends before others do, giving us a proprietary advantage in sourcing, diligence, and post-investment value creation. Our early-stage B2B tech portfolio speaks for itself, with category leaders like Amplitude (NASDAQ:AMPL), Netskope (NASDAQ:NTSK) and Groq. Founders consistently call us the most value-add investor on their cap table, and use our global product ecosystem as a marketplace to accelerate time to revenue, scale, and exit. Learn more at Mighty.Capital.

Disclaimer: Certain statements in this release, including portfolio and liquidity references, are based on Mighty Capital's internal records and analysis as of February 14, 2026. Portfolio company examples are provided for illustrative purposes only and are not intended to represent all portfolio investments or outcomes. Past performance is not indicative of future results.

MEDIA CONTACT
Tess Pawlisch
608-333-9788
[email protected]

SOURCE Mighty Capital

SANTA CLARA, Calif., June 02, 2026 (GLOBE NEWSWIRE) -- Netskope (NASDAQ: NTSK), a leader in modern security and networking for the cloud and AI era, today announced Netskope One AI Command Center, delivering comprehensive AI discovery, unified risk intelligence, and autonomous agentic response within a single unified platform. AI Command Center is the latest expansion of the Netskope One AI Security suite, further extending its capabilities to address the critical challenges security teams now face: identifying what AI is running, which risks actually matter, and how to respond at the speed the threat demands.

Among enterprises tracked by Netskope Threat Labs, the average enterprise organization saw the number of AI applications in use grow fivefold in the past year. That average organization tripled its AI user base; now manages 37 deployed AI agents; and sees 223 AI data policy violations per month1. Amidst this turbo-charged adoption, 94% of participating organizations report gaps in AI activity visibility and only 6% consider themselves to have complete visibility into their AI pipeline2.

Netskope One AI Command Center mitigates risk by discovering AI assets, whether corporate or personal, managed or shadow, cloud or on-premises, and mapping them to the identities, data stores and tools to which they connect. Once mapped, it surfaces risk insights and correlates them to Netskope’s existing knowledge banks relating to data sensitivity, user risk profiles, and application trustworthiness. By mapping relationships between AI assets, identities, and data stores, it surfaces hidden attack paths and risk exposures, and is able (from the same interface) to recommend next steps including creation or fine-tuning policy, remediation workflows, or investigation.

Along with the core AI Command Center capabilities and the discovery of AI via inline traffic inspection, the launch introduces two additional discovery components:

Endpoint AI discovery: Enhancements to the Netskope One Client extend scanning to installed applications, running processes, and listening ports on managed endpoints to identify known AI agents, local models, and browser extensions.Server AI discovery: A lightweight eBPF agent that intercepts TLS-encrypted AI traffic at the kernel level on corporate virtual machines and Kubernetes nodes, extending discovery to core AI infrastructure within the corporate perimeter. Also launching and fully integrated with the Netskope One AI Command Center is a new AgentSkope AI Risk AISecOps agent: an autonomous intelligence layer that handles triage and investigation, drives response, and scales a security team's expertise without scaling headcount.

Sanjay Beri, Co-Founder and CEO of Netskope commented: “Organizations have adopted AI faster than any security team can manually track, triage, or contain, and the tools nobody approved are almost always the ones carrying the highest risk. Netskope One AI Command Center gives security teams the unified operational view they have never had before: every AI asset in the environment, how it’s connected, what data it’s touching, and what to do about it. They can now say yes to team members who want to take full advantage of AI, and do it securely. Paired with our new AI Risk AISecOps Agent, which reasons across the full context of every incident and closes the gap between knowing and doing, we’re delivering a fundamental shift from security teams that react to AI risk, to security operations that anticipate and eliminate it.”

Jennifer Glenn, Research Director for Data and Information Security, IDC commented: “Enterprise AI adoption has skyrocketed. Data volume and sprawl have created a pervasive visibility gap for security teams. For many organizations effectively correlating risk across managed and shadow AI assets, user identities and data stores is difficult. Addressing this challenge requires moving beyond siloed tools to a unified intelligence layer. Platforms that combine comprehensive AI discovery with real-time risk correlation are essential for enabling security operations to anticipate, prioritize, and autonomously eliminate AI-fueled threats at the speed the landscape demands.”

Read more about Netskope One AI Command Center, the new agent, and the extended discovery capabilities in the Netskope blog.

Netskope One AI Command Center is generally available today, with enhanced capabilities, including endpoint AI discovery, server AI discovery, AI asset mapping and risk correlation, and the AI Risk AISecOps Agent moving from private preview to general availability throughout Q3 2026.

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, netskope.ai, on LinkedIn, and Instagram.

Media Relations Contact:
[email protected]

Investor Relations Contact:
[email protected]

1 Netskope Cloud and Threat Report 2026
2 Netskope’s 2026 AI Risk and Readiness Report

Annual Recurring Revenue increased 29% year-over-year to $845 millionQ1 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 AgentNetskope Insider Threat AISecOps AgentNetskope Private Access AIOps AgentNetskope DEM Data Intelligence AgentNetskope DEM Insights AgentNetskope 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-yearNon-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-yearNon-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 outstandingFree 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 at netskope.com, netskope.ai, on LinkedIn, and 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 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
[email protected]

Media Relations Contact:
Tim Whitman
[email protected]

 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        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  $10,091        NETSKOPE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
 Three Months Ended April 30,   2026   2025  Cash flows from operating activities    Net loss$(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        NETSKOPE, INC.
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) $(0.28) Note: Certain figures may not sum due to rounding.              NETSKOPE, INC.
SELECTED CASH FLOW INFORMATION
(in thousands, except percentages)
(unaudited)
 Three Months Ended April 30,
   2026   2025  Reconciliation of cash (used in) provided by operating activities to free cash flow    Net cash (used in) provided by operating activities$(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.         

Netskope, Inc. (NTSK) Q1 2027 Earnings Call Transcript

Netskope shares sink after the cybersecurity's annual recurring revenue fails to impress analysts.

In the first quarter of 2026, Baron Discovery Fund declined 10.65% (Institutional Shares), trailing the Russell 2000 Growth Index by 7.84% due to significant underperformance in the software sector. Advanced Energy Industries, Inc.'s stock rose during the quarter as the market began to appreciate the strength that the company would see in both its data center and semiconductor end markets. Baron Discovery Fund sold its investment in Intapp, Inc. in the quarter as the team believes that its other software holdings have better overall competitive advantages.