10-Q · June 3, 2026
Netskope, Inc. reported Q1 fiscal 2027 earnings of $201.6 million in revenue, exceeding estimates by 1.7%. The gross margin improved to 74% from 69% year-over-year, driven by 28% revenue growth primarily from new…
Earnings analysis · 10-Q
NTSK earnings analysis
Filed September 2, 2026 · Our reading of the company's report
The latest report
Netskope reported Q2 revenue of $220.541 million, approximately 9.4% above the prior-quarter $201.6 million and above both consensus and prior company outlook. EPS improved to -$0.03 from -$0.29, but the company remains…
Read full summary
Netskope reported Q2 revenue of $220.541 million, approximately 9.4% above the prior-quarter $201.6 million and above both consensus and prior company outlook. EPS improved to -$0.03 from -$0.29, but the company remains materially loss-making, with a six-month net loss of $227.3 million and an accumulated deficit of $2.9 billion. Liquidity was substantial at $1.1 billion of cash, cash equivalents, and marketable securities, although convertible debt rose to $538.3 million and restructuring, AI execution, partner concentration, and CFO-transition risks remain significant.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.03
- Segment
- EMEA: 26% of six-month revenue; revenue grew 34% year over year
- Segment
- APJ: 19% of six-month revenue; revenue grew 28% year over year
What stood out
-
Revenue Beat and Sequential Growth
Revenue was $220.541 million, up approximately 9.4% from $201.6 million in the prior quarter and 2.95% above the $214.229 million consensus estimate. Revenue also exceeded prior Q2 outlook of $213 million-$215 million.
-
EPS Loss Narrowed
Reported EPS was -$0.03 versus -$0.29 in the prior quarter, narrowing the per-share loss by $0.26 and beating the -$0.11 consensus estimate.
-
Strong International Growth
International operations remained a significant growth contributor: EMEA represented 26% of six-month revenue and grew 34% year over year, while APJ represented 19% and grew 28%.
-
Substantial Liquidity
The company held $1.1 billion of cash, cash equivalents, and marketable securities as of July 31, 2026, plus $0.3 million of restricted cash, providing liquidity for operations and investment.
-
Controls Remained Effective
Management reported effective disclosure controls as of July 31, 2026, and stated that no changes during the three months ended July 31, 2026 materially affected or were reasonably likely to materially affect internal control over financial reporting.
What to watch
-
Losses and Rising Operating Costs
The company incurred net losses of $227.3 million for the six months ended July 31, 2026, versus $169.5 million in the prior-year period, and had an accumulated deficit of $2.9 billion. Management also expects near-term operating expenses to increase as it invests in sales, marketing, technology, and public-company infrastructure.
-
Debt and Potential Dilution
Convertible Notes principal and accrued interest increased to $538.3 million as of July 31, 2026, from $528.8 million as of January 31, 2026. The notes are convertible into 22,536,463 shares of Class B common stock, approximately 12.6% of voting power as of July 31, 2026, creating cash-servicing and dilution risk.
-
AI Restructuring Execution Risk
The June 2026 restructuring affected approximately 5% of the workforce as part of the transition to an AI-native business. The filing states that additional near-term charges, employee attrition, morale effects, and delays in achieving operational objectives could adversely affect results.
-
Greater Partner Concentration
The top five partners and their affiliates accounted for 39% of revenue for the six months ended July 31, 2026, up from 35% in the prior-year period, increasing reliance on channel partners for sales execution and customer delivery.
-
AI and Regulatory Exposure
The company has begun using AI-based tools in development, which may identify a greater volume of vulnerabilities requiring remediation; failure to timely remediate a significant vulnerability could result in a security incident. The filing also cites potential EU AI Act fines of up to the greater of €35 million or 7% of worldwide annual turnover.
-
CFO Transition Risk
The company is searching for a new Chief Financial Officer as part of succession planning. The filing warns that a delayed or ineffective transition could disrupt financial planning, reporting, or investor-relations functions.
Management's outlook
The filing text provided does not include updated quantitative guidance. Prior Q2 outlook was revenue of $213 million-$215 million and EPS of -$0.07 to -$0.06; reported revenue of $220.541 million exceeded that range. Current outlook may have been provided separately in the earnings release or call.
Earlier filings 3
10-K · March 31, 2026
Netskope, Inc. reported strong revenue growth of 32% year-over-year to $709 million, driven by increased customer acquisition and expansion within existing accounts. Despite substantial losses totaling $679 million, the…
10-Q · December 11, 2025
Netskope, Inc. reported a solid performance with Q3 2025 revenue of $184.2 million, reflecting a 33% year-over-year increase. Despite steep operating expenses driven by stock-based compensation costs, the diluted EPS…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.