Investment Review №328. Waiting for change
Yerlan Abdikarimov
Head of Financial Analysis Department at Freedom Broker
Netskope. Offering in Cybersecurity
On September 18, 2025, Netskope is scheduled to commence trading. The company provides cloud security solutions for enterprises. The underwriters for this offering include Morgan Stanley, J.P. Morgan, BMO Capital, TD Cowen, Citizens Capital Markets, Mizuho, Wells Fargo Securities, etc.
| Issuer | Netskope |
| Ticker | NTSK |
| Exchange | NASDAQ |
| IPO range | $15-17 |
| IPO amount | $764,8 |
| Underwriters | Morgan Stanley, J.P. Morgan, BMO Capital, TD Cowen, Citizens Capital Markets, Mizuho, Wells Fargo Securities, Deutsche Bank, Oppenheimer & Co., BTIG, KeyBanc Capital, Piper Sandler, William Blair |
Investment potential
- Company Overview. Netskope is a provider of Secure Access Service Edge (SASE) solutions, specializing in cybersecurity for enterprise cloud infrastructures. Among its offerings are secure web gateways and firewall-as-a-service solutions. Its primary competitors are Zscaler and Palo Alto Networks. The Netskope One platform boasts a unique architecture, with a convergent stack of security, networking, and analytics technologies. This operates on NewEdge’s global private cloud network, comprising over 120 comprehensive edge data centers across more than 75 regions. The platform leverages proprietary AI models to detect, categorize, monitor, and control sensitive data, thereby preventing threats and enhancing digital experiences. As of July 31, 2025, Netskope had over 4,300 customers. In 2021, during the peak of the ZIRP era, the company’s valuation was $7.5 billion following a $300 million Series H funding round led by ICONIQ Growth. In 2023, Netskope issued $401 million in convertible bonds. The company is set to go public at a valuation of $6.113 billion.
- Market Opportunities. According to IDC, the company estimates that its target market will reach $138.9 billion by 2028, reflecting a compound annual growth rate (CAGR) of 16.8% from 2024 to 2028. The company believes it is in the initial phase of capitalizing on the emerging AI-based security market, which may expand to $30.8 billion by 2028, contributing an additional $9.9 billion to the company’s projected target market.
- Financials. During fiscal year 2025, the company experienced a growth rate of 32%. In the first six months of fiscal year 2026, the growth rate was 31%. The operating margin has consistently improved from -77% in fiscal year 2024 to -28% in the first six months of fiscal year 2026.