The combination of accelerating revenue growth, improving margins, and first-time positive free cash flow validates Netskope's post-IPO operating model. Traders should monitor lock-up expiration impact on March 13, but fundamentals suggest resilience. Upcoming AI product adoption could drive upside to guidance.
Price Chart
Executive Summary
Netskope reported strong Q4 and full-year fiscal 2026 results with 32% YoY revenue growth to $709 million and 31% ARR growth to $811 million. The company achieved its first full year of positive free cash flow ($12.4M) and improved non-GAAP operating margin to -16% from -34% in the prior year. Guidance for fiscal 2027 calls for $870M–$876M in revenue and continued margin improvement.
Key Financial Metrics
Key Facts
- Q4 revenue grew 32% YoY to $196.3 million
- Full-year revenue increased 32% YoY to $709.0 million
- ARR reached $811 million, up 31% YoY
- Achieved first full year of positive free cash flow: $12.4 million vs. -$151.1 million in fiscal 2025
- Non-GAAP operating margin improved to -16% from -34% in prior year
- Guidance for fiscal 2027 revenue of $870M–$876M, representing ~23% YoY growth at midpoint
- Lock-up expiration on March 13, 2026, potentially releasing up to 390 million shares
Financial Impact
Revenue growth of 32% YoY and improved cash flow dynamics signal strong execution. Full-year guidance implies continued high growth and margin expansion, with free cash flow margin expected to reach 2%-4%.
Risk Factors
- Lock-up expiration could lead to near-term share overhang as ~390M shares become eligible for sale
- GAAP losses remain significant (-$652.6M operating loss in fiscal 2026)
- Guidance depends on continued strong AI security product adoption
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3254130 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 14, 2026 5w ago | Insider Cluster | $17.47 $21.15 | ▲ +21.06% | ▲ +18.34% | $25.21 (+44.30%) |
Sep 14, 2026 5w ago | Insider Cluster | $17.47 $21.15 | ▲ +21.06% | ▲ +18.09% | $25.21 (+44.30%) |
Sep 2, 2026 7w ago | 8-K | $14.34 $17.75 | ▲ +23.78% | ▲ +24.97% | $25.21 (+75.80%) |
Sep 2, 2026 7w ago | Press Release | $14.34 $17.75 | ▲ +23.78% | ▲ +24.97% | $25.21 (+75.80%) |
Aug 9, 2026 11w ago | Institutional Cluster | $15.67 $14.35 | ▼ −8.42% | ▼ −7.51% | $25.21 (+60.88%) |
Aug 5, 2026 11w ago | Press Release | $14.08 $13.75 | ▼ −2.34% | ▼ −1.74% | $25.21 (+79.05%) |
Jul 14, 2026 14w ago | Insider Cluster | $13.25 $14.99 | ▲ +13.13% | ▲ +10.79% | $25.21 (+90.26%) |
Jul 9, 2026 15w ago | Insider Cluster | $12.32 $14.87 | ▲ +20.70% | ▲ +18.27% | $25.21 (+104.63%) |
Jul 9, 2026 15w ago | Insider Cluster | $12.32 $14.87 | ▲ +20.70% | ▲ +18.27% | $25.21 (+104.63%) |
Jul 9, 2026 15w ago | Insider Cluster | $12.32 $14.87 | ▲ +20.70% | ▲ +18.27% | $25.21 (+104.63%) |
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