Netskope Due Diligence

Run due diligence on Netskope: check compliance and get alerts when suppliers change.

United States · www.netskope.com · 17 vendors

Netskope, Inc. is a cloud security company that provides a cloud-native platform offering converged security and networking services. It helps organizations secure their web and cloud usage, protect data, and defend against cyber threats. The company provides real-time visibility and control over user activity and data movement across cloud services, websites, and private applications.

Resilience scores

Technology vendors

Services catalogue

5 services in catalogue across 2 categories; runs on 17 sub-vendors.

Insights

Last updated 2026-09-13 · revision 2

17 direct vendors, 192 subvendors

Direct vendors by controlling owner country (sample)

Subvendors by controlling owner country (sample)

Compliance

7 in-scope frameworks identified; showing 3.

CCPA — Evidence found

Evidence: https://www.netskope.com/company/security-compliance-and-assurance, https://www.netskope.com/ccpa-compliance-statement, https://www.netskope.com/privacy-policy

HIPAA (source) — Evidence found

Evidence: https://www.netskope.com/company/security-compliance-and-assurance

ISO 27001 (source) — Evidence found

Evidence: https://www.netskope.com/company/security-compliance-and-assurance

Financials

Three-year financials

Financial Resilience Score: 7/10

Netskope demonstrates strong top-line momentum and improving unit economics, having grown revenue at 32% YoY to $709M in FY2026 while expanding non-GAAP gross margins from 69% to 75%. The company reached $811M in ARR — a key forward-looking indicator for subscription businesses — reflecting durable, recurring revenue with high predictability. Most critically, FY2026 marked the company's first full year of positive free cash flow ($12.4M), a meaningful inflection point that signals the business model can self-fund at scale without continuous external capital injections. The balance sheet is robust, with $1.2 billion in cash and marketable securities providing substantial multi-year runway. This liquidity position, bolstered by the September 2025 IPO proceeds, gives Netskope strategic flexibility for R&D investment, potential M&A, and weathering macroeconomic headwinds. The subscription-dominant revenue model (ARR constituting virtually all revenue) provides high visibility and reduces revenue volatility typical of transactional businesses. However, significant concerns temper the overall resilience score. GAAP operating losses widened dramatically to -$652.6M in FY2026 (-92% margin), largely driven by IPO-related stock-based compensation. While non-GAAP operating losses improved to -$111.1M (-16% margin), the path to GAAP profitability remains distant and multi-year. The company also faces intense competition from larger, better-capitalized rivals including Zscaler, Palo Alto Networks, and Cisco, which could pressure growth rates and margins over time. Additional risks include the lock-up expiration in March 2026 releasing ~390 million shares, creating near-term stock price pressure, and the inherent execution risks of transitioning from a private to a public company with quarterly reporting obligations. FY2027 guidance of $870M–$876M revenue (~23% growth) and -10% non-GAAP operating margin suggests continued improvement but a still-loss-making trajectory in the near term.

Key strengths: FY2026 first full year of positive free cash flow ($12.4M FCF, +$163.5M improvement YoY), $1.2 billion cash and marketable securities providing strong multi-year liquidity runway, Non-GAAP gross margin expanded from 69% to 75% in a single year, approaching best-in-class SaaS levels, $811M ARR growing at 31% YoY providing high revenue visibility and predictability, Subscription-dominant recurring revenue model with virtually all revenue from cloud ARR, Gartner Magic Quadrant Leader in both SSE and SASE Platforms (2025) — rare dual recognition, 30+ Fortune 100 customers providing revenue stability and enterprise reference credibility, FedRAMP High Authorization enabling penetration of sticky US federal government market, Non-GAAP operating loss improved by $70.3M YoY, demonstrating genuine operational leverage, Strong AI security tailwinds as enterprises seek to secure AI traffic and data

Risk factors: GAAP operating margin of -92% in FY2026, with GAAP profitability remaining distant, Intense competition from larger rivals: Zscaler, Palo Alto Networks, Cisco, Fortinet, IPO lock-up expiration March 13, 2026 releasing ~390M shares creating stock price overhang, Non-GAAP operating margin still negative at -16% with multi-year path to profitability, Execution risk transitioning from private to public company with quarterly reporting obligations, Potential customer concentration risk not explicitly disclosed in public filings, Macroeconomic sensitivity — enterprise sales cycles can elongate during downturns, Limited public financial disclosure history as a newly public company (IPO September 2025), FY2024 and earlier audited financials not separately accessible outside IPO S-1 prospectus, Valuation risk subject to market sentiment shifts around growth-stage tech companies

Revenue by geography

Revenue by product/service

Workforce by country

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