Netskope’s IPO Submitting Reveals Surging Gross sales, Improved Losses

Netskope turned the second cybersecurity firm to pursue an preliminary public providing this 12 months, revealing elevated gross sales, improved losses and a heavy reliance on channel companions.

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The Silicon Valley-based SASE supplier mentioned practically 95% of its $328.5 million in income within the first half of fiscal 12 months 2025 flowed via channel companions and managed service suppliers, with the agency’s largest channel associate representing 13% of whole income. If the IPO goes via, Netskope will turn out to be the second pure-play SASE agency to be publicly traded, alongside Zscaler, which went public in March 2018.

“Turning into a public firm isn’t the vacation spot, however moderately one other important milestone on our journey – one which we hope will amplify consciousness of our groundbreaking Netskope One platform,” co-founder and CEO Sanjay Beri wrote in a letter to potential buyers. “Going public, in our view, is about getting us extra ‘at bats,’ and increasing our consciousness, attain and therefore constructive impression.”

Netskope intends to make use of the online proceeds of its IPO for basic company functions – together with working capital, working bills and capital expenditures – and might also purchase or spend money on complementary companies, merchandise, providers or applied sciences, in response to a submitting Friday with the U.S. Securities and Trade Fee. The corporate plans to be listed on Nasdaq beneath the ticker image NTSK (see: Zscaler, Netskope, Palo Alto Prime SSE Gartner Magic Quadrant).

Sturdy Progress, Shrinking Losses

Netskope notched a $7.5 billion valuation in July 2021 on a $300 million funding spherical led by Iconiq Progress, then took on $401 million of debt led by Morgan Stanley in January 2023. Netskope has 4,317 prospects – together with greater than 30% of the Fortune 100 and roughly 18% of the Forbes International 2000 – and options Asics, BMO Monetary, Colgate-Palmolive, Unique Networks and Qualcomm on its roster.

Netskope skilled strong development via the primary six months of fiscal 2025, in response to its 215-page submitting with the SEC noon Friday. Its gross sales rose to $328.5 million throughout that interval, up 30.7% from $251.3 million within the first six months of fiscal 2024. And the corporate’s web loss improved to $169.5 million within the first half of fiscal 2025, 18% higher than the $206.7 million web loss recorded the 12 months prior.

“We constructed Netskope to struggle again, to empower companies to totally embrace know-how with out compromise and to make sure that everybody, all over the place, can have a quick, seamless and safe digital expertise,” Beri wrote within the investor letter. “We’re right here to unleash information, to allow its use in the best approach, and to make sure that innovation thrives, not simply survives, within the face of relentless cyberthreats.”

U.S. gross sales made up 56% of Netskope’s income within the first six months of the present fiscal 12 months, down from 58% within the first half of fiscal 2024. Almost 25% of Netskope’s income within the present fiscal 12 months comes from Europe, the Center East and Africa, up from 24% the 12 months prior. And Asia-Pacific and Japan comprise 19% of Netskope’s gross sales within the present fiscal 12 months, up from 18% final fiscal 12 months.

Cybersecurity’s Second IPO of 2025

Netskope’s 2,910-person worker base is distributed throughout the globe, with 35% positioned in the US, 27% based mostly in India, 8% based mostly in Taiwan and the remaining 30% unfold throughout the U.Okay., France, Spain, Australia, Japan and Singapore. The corporate mentioned its fundamental rivals provide a mix of safety, networking and analytics and embody Broadcom, Cisco, Fortinet, Palo Alto Networks and Zscaler.

“We’re nonetheless within the early innings of a market we have re-imagined and helped outline,” Beri wrote within the letter to potential buyers. “That is only the start, and we’re extremely energized to guide this area for many years to come back. I’ve all the time believed in ‘skating to the place the puck goes,’ however on a grander scale and timeline. We are going to proceed to prioritize long-term success over short-term positive aspects.”

Netskope’s IPO submitting comes six months after Austin, Texas-based identification safety agency SailPoint raised $1.38 billion on a $12.8 billion valuation in a Nasdaq public providing. 9 months earlier than that, Silicon Valley-based information resilience startup Rubrik – whose portfolio spans information safety, backup and catastrophe restoration – raised $752 million on a $6.6 billion valuation in a New York Inventory Trade public providing.

The agency has raised greater than $1.44 billion throughout 12 fairness or debt rounds since its founding in 2012. Netskope has made 4 acquisitions lately, scooping up information safety posture administration startup Dasera in October 2024, digital expertise administration startup Kadiska in September 2023, Infiot in August 2022 to deal with SD-WAN use instances and WootCloud in July 2022 to tackle IoT and OT.

Of Netskope’s 4,317 prospects, 1,372 of them had been recording greater than $100,000 in annual recurring income – accounting for 86% of the corporate’s ARR as of July 31, 2025 – whereas 111 prospects generated greater than $1 million in ARR, making up 37% of Netskope’s ARR. The variety of shoppers with at the least $100,000 of ARR elevated by 25%, and the variety of shoppers with at the least $1 million of ARR grew by 32%.