Netskope Reports Strong Q2 Growth Amid Rising Demand for AI Security Solutions
Netskope Inc. (NASDAQ:NTSK) reported second-quarter results on September 2, showing a 29% year-over-year increase in total revenue to $220.5 million and annual recurring revenue rising by 27% to $899 million. The company attributed its performance to strong demand for the Netskope One platform and ongoing innovation across AI security solutions. Despite outperforming guidance, Netskope remains unprofitable with an adjusted net loss of $(0.03) per share and negative free cash flow of $(29.8) million during the quarter. However, it ended the period with $1.1 billion in cash reserves. Management expects continued growth for 2026, forecasting full-year revenue between $888 million and $892 million. Institutional interest has increased slightly, with hedge fund holdings rising to 35 as of Q2 from 31 the previous quarter. ICONIQ Capital is the largest institutional investor holding nearly a quarter of outstanding shares.
Tickers: $NTSK