Netskope Reports 29% Revenue Growth to $220.5 Million in Q2 Fiscal 2027

Netskope, Inc. reported significant financial results for the second quarter of fiscal 2027, with total revenue reaching $220.5 million, a 29% increase from $170.8 million in the same period last year. For the first half of the fiscal year, revenue also grew by 29%, totaling $422.1 million compared to $328.5 million in the prior year. Despite this growth, the company recorded a net loss of $110.8 million for the quarter, widening from a loss of $90.3 million in the previous year. The loss per share for the quarter was $0.27, compared to $0.84 in the same period last year.

The increase in revenue was attributed to both new customer acquisitions and expansion within existing accounts, with approximately 50% of the revenue growth coming from each segment. The cost of revenue rose to $57.5 million, up 21% from $47.5 million, primarily due to increased employee-related expenses and operational costs associated with the company's global data centers. Gross profit for the quarter was $163 million, resulting in a gross margin of 74%, an improvement from 72% in the prior year, reflecting enhanced operational efficiencies.

Netskope has also made strategic investments in its workforce and technology, leading to a 36% increase in sales and marketing expenses, which totaled $105.9 million for the quarter. Research and development expenses rose by 40% to $101.8 million, driven by increased headcount and stock-based compensation related to the company's IPO. General and administrative expenses surged by 146% to $45.1 million, largely due to stock-based compensation expenses recognized following the IPO.

Operationally, Netskope's customer base continues to expand, with the company reporting a significant increase in its dollar-based net retention rate, indicating strong customer loyalty and upsell opportunities. The company is also focusing on international expansion and enhancing its product offerings, particularly in artificial intelligence and machine learning capabilities. As of July 31, 2026, Netskope had cash, cash equivalents, and marketable securities totaling approximately $1.1 billion, which the company believes will support its operational needs for at least the next 12 months.

Looking ahead, Netskope anticipates continued revenue growth driven by its strategic investments in sales, marketing, and product innovation. However, the company acknowledges the potential for ongoing operating losses as it scales its operations and invests in future growth initiatives. The management remains optimistic about achieving profitability in the long term, contingent on the successful execution of its business strategy and market conditions.