Revenue beat and raised guidance are positive, but the sharp cash flow reversal (from +$25.6M to -$53.9M operating cash flow) and CFO retirement create a mixed picture. The lock-up expiration overhang from March may still pressure the stock. Monitor the CFO search and next quarter's cash flow trajectory for signs of stabilization.
Price Chart
Executive Summary
Netskope reported Q1 FY2027 revenue of $201.6M (+28% YoY) and non-GAAP EPS of -$0.06, beating consensus estimates of $198.2M and -$0.07. ARR grew 29% YoY to $845M. However, operating cash flow swung to -$53.9M from +$25.6M a year ago, and CFO Drew Del Matto announced his retirement, creating leadership uncertainty. The company raised full-year revenue guidance to $879M-$883M (from $870M-$876M), but free cash flow guidance remained at 2%-4%.
Key Financial Metrics
Key Facts
- Q1 FY2027 revenue $201.6M, +28% YoY, above $198.2M consensus
- Non-GAAP EPS -$0.06 vs consensus -$0.07 (beat)
- ARR grew 29% YoY to $845M as of April 30, 2026
- GAAP net loss per share -$0.29 vs -$0.76 YoY (narrowed)
- Operating cash flow swung to -$53.9M from +$25.6M YoY; FCF -$57.2M vs +$17.5M YoY
- Full-year FY2027 revenue guidance raised to $879M-$883M (from $870M-$876M)
- CFO Drew Del Matto announced retirement; search for successor underway
- GAAP operating loss widened to -$108.7M from -$45.4M YoY; non-GAAP operating loss -$29.2M vs -$28.6M
- Cash & marketable securities $1.1B, down from $1.2B at Q4 end
- Recent DEFA14A (7 days ago) signals ongoing proxy/board context
Financial Impact
Revenue beat of ~1.7% ($201.6M vs $198.2M consensus); EPS beat of ~14% (-$0.06 vs -$0.07); full-year guidance raised by ~$8M at midpoint
Risk Factors
- CFO retirement creates leadership uncertainty during a growth phase
- Operating cash flow swung sharply negative to -$53.9M from +$25.6M YoY
- GAAP operating loss more than doubled to -$108.7M from -$45.4M YoY
- Free cash flow margin collapsed to -28% from +11% YoY
- Stock-based compensation remains high at $76M (38% of revenue)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-255439 |
| Document: ck0002063196-20260603.htm | 0001193125-26-255439 |
| Document: 0001193125-26-255439-index-headers.html | 0001193125-26-255439 |
| Document: 0001193125-26-255439-index.html | 0001193125-26-255439 |
| Document: 0001193125-26-255439.txt | 0001193125-26-255439 |
| 8-K Data (Synthetic) | 0001193125-26-255439 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 14, 2026 6w ago | Insider Cluster | $17.47 $21.15 | ▲ +21.06% | ▲ +18.34% | $24.28 (+38.98%) |
Sep 14, 2026 6w ago | Insider Cluster | $17.47 $21.15 | ▲ +21.06% | ▲ +18.09% | $24.28 (+38.98%) |
Sep 2, 2026 7w ago | 8-K | $14.34 $17.75 | ▲ +23.78% | ▲ +24.97% | $24.28 (+69.32%) |
Sep 2, 2026 7w ago | Press Release | $14.34 $17.75 | ▲ +23.78% | ▲ +24.97% | $24.28 (+69.32%) |
Aug 9, 2026 11w ago | Institutional Cluster | $15.67 $14.35 | ▼ −8.42% | ▼ −7.51% | $24.28 (+54.95%) |
Aug 5, 2026 11w ago | Press Release | $14.08 $13.75 | ▼ −2.34% | ▼ −1.74% | $24.28 (+72.44%) |
Jul 14, 2026 14w ago | Insider Cluster | $13.25 $14.99 | ▲ +13.13% | ▲ +10.79% | $24.28 (+83.25%) |
Jul 9, 2026 15w ago | Insider Cluster | $12.32 $14.87 | ▲ +20.70% | ▲ +18.27% | $24.28 (+97.08%) |
Jul 9, 2026 15w ago | Insider Cluster | $12.32 $14.87 | ▲ +20.70% | ▲ +18.27% | $24.28 (+97.08%) |
Jul 9, 2026 15w ago | Insider Cluster | $12.32 $14.87 | ▲ +20.70% | ▲ +18.27% | $24.28 (+97.08%) |
US Market Status
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