Netskope Inc (NTSK) SEC Filings & Earnings Calls

Free cash flow negative and worsened YoY from $(19.7)M to $(29.8)M, indicating ongoing cash burn.

“Free cash flow was $(29.8) million, compared to $(19.7) million in Q2 FY26.”

GAAP operating loss widened to $(89.8)M from $(46.0)M YoY, though non-GAAP loss improved.

“GAAP loss from operations was $(89.8) million, compared to a loss of $(46.0) million for Q2 FY26.”

Increasing operating losses

“Loss from operations ($89,799) (in thousands) for three months ended July 31, 2026 vs ($45,965) for same period in 2025.”

Negative operating cash flow

“Net cash (used in) provided by operating activities ($70,452) (in thousands) for six months ended July 31, 2026 vs $8,714 for same period in 2025.” · word for word

High stock-based compensation

“Stock-based compensation expense $139,000 (in thousands) for six months ended July 31, 2026 vs $17,642 for same period in 2025.”

Convertible note fair value losses

“Loss on changes in fair value of convertible notes $38,753 (in thousands) for six months ended July 31, 2026 vs $77,402 for same period in 2025.” · word for word

CFO retirement introduces leadership transition risk.

“Item 5.02: CFO Andrew Del Matto retiring; search for successor underway.”

GAAP operating loss widened significantly due to increased investments.

“GAAP operating loss $(108.7)M vs $(45.4)M YoY; operating margin (54)% vs (29)%.”

Cash flow turned negative; free cash flow margin (28)% vs 11% YoY.

“Operating cash flow $(53.9)M vs $25.6M YoY; free cash flow $(57.2)M vs $17.5M YoY.”

Negative operating cash flow

“Net cash used in operating activities $(53,913) thousand for three months ended April 30, 2026.”

High stock-based compensation

“Stock-based compensation expense $76,028 thousand for three months ended April 30, 2026, up from $10,091 thousand in prior year.”

Significant operating losses

“Loss from operations $(108,737) thousand for three months ended April 30, 2026.”

Cash burn

“Cash and cash equivalents decreased from $432.6 million to $205.9 million during the quarter.”

History of losses and uncertainty about achieving profitability

“We have a history of losses, anticipate increases in our operating expenses in the near-term, and may not achieve or sustain profitability.” · word for word

Revenue growth rate expected to decline

“we expect our revenue growth rate to decline in the future, as a result of a variety of factors, including the maturation of our business.” · word for word

Customer concentration in top partners

“sales through our top five partners and their affiliates, in aggregate, represented 35% of our revenue for fiscal 2026 and 33% of our revenue for fiscal 2025.” · word for word

Shift to annual billing may reduce deferred revenue growth

“We recently shifted more of our business to annual billing of multi-year contracts. As a result, our growth rate of billings and deferred revenues has declined and we expect it to continue to decline in subsequent quarters.” · word for word

Lock-up expiration on March 13, 2026 may lead to significant share overhang (~390M shares eligible for sale).

“Approximately 390 million shares of Class A common stock may become eligible for sale in the public market at the open of trading on March 13, 2026.”

Continued GAAP operating losses despite improving non-GAAP metrics.

“GAAP loss from operations was $(114.3) million in Q4 FY2026.”

GAAP gross margin decline due to IPO-related stock-based compensation; non-GAAP margins improving.

“GAAP gross margin was 58%, compared to 66%... Non-GAAP gross profit excludes $28.6 million in stock-based compensation expense and related taxes” · word for word

High GAAP operating loss due to SBC; non-GAAP loss narrowing.

“GAAP loss from operations was $(447.0) million... Non-GAAP loss from operations was $(28.2) million” · word for word

IPO-related stock-based compensation expense

“Upon the satisfaction of the performance condition, which was the consummation of the IPO, the Company recognized stock-based compensation expense for those stock options and RSUs that had already met or partially met the service vesting condition.” · word for word

Convertible note fair value volatility

“Loss on changes in fair value of convertible notes $8,439 $18,125 (three months ended October 31, 2025 vs 2024)” · word for word