Netskope Announces Strong Third Quarter Fiscal Year 2026 Financial Results

Core Insights - Netskope reported strong financial results for Q3 FY 2026, highlighting significant growth in revenue and annual recurring revenue (ARR) driven by cloud modernization and AI demand [2][5][6]. Financial Highlights - ARR increased by 34% year-over-year to $754 million [5][6]. - Q3 revenue rose by 33% year-over-year to $184.2 million [5][6]. - Remaining Performance Obligations surpassed $1 billion, reflecting a 41% year-over-year growth [5]. - Q3 net cash provided by operating activities was $11.2 million, representing 6% of revenue [5][6]. - Free cash flow for Q3 was $10.6 million, with a positive free cash flow margin of 6% [5][6]. Profitability Metrics - GAAP gross profit was $106.6 million, with a gross margin of 58%, down from 66% in the same quarter last year [6]. - Non-GAAP gross profit was $137.6 million, with a non-GAAP gross margin of 75%, up from 70% year-over-year [6]. - GAAP loss from operations was ($447.0) million, with an operating margin of (243%) [6]. - Non-GAAP loss from operations was ($28.2) million, with a non-GAAP operating margin of (15%) [6]. - GAAP net loss per share was ($1.85), compared to ($0.72) in Q3 FY 2025 [6]. Business Developments - Netskope completed its Initial Public Offering in September, raising $992.2 million in net proceeds [9]. - The company expanded its NewEdge private cloud network with new data centers in multiple locations, enhancing its global reach [9]. - Netskope was recognized as a leader in several industry reports, including the 2025 Gartner Magic Quadrant for Secure Services Edge and SASE platforms [9]. Financial Outlook - For Q4 FY 2026, Netskope expects revenue between $188 million and $190 million, with a non-GAAP operating margin of (14.0%) to (13.0%) [7][9]. - For the full year of FY 2026, total revenue is projected to be between $701 million and $703 million, with a non-GAAP net loss per share expected to be between ($0.53) and ($0.51) [9].