Netskope’s IPO Filing Reveals Surging Sales, Improved Losses

Netskope became the second cybersecurity company to pursue an initial public offering this year, revealing increased sales, improved losses and a heavy reliance on channel partners.

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The Silicon Valley-based SASE provider said nearly 95% of its $328.5 million in revenue in the first half of fiscal year 2025 flowed through channel partners and managed service providers, with the firm’s largest channel partner representing 13% of total revenue. If the IPO goes through, Netskope will become the second pure-play SASE firm to be publicly traded, alongside Zscaler, which went public in March 2018.

“Becoming a public company is not the destination, but rather another significant milestone on our journey – one that we hope will amplify awareness of our groundbreaking Netskope One platform,” co-founder and CEO Sanjay Beri wrote in a letter to potential investors. “Going public, in our view, is about getting us more ‘at bats,’ and expanding our awareness, reach and hence positive impact.”

Netskope intends to use the net proceeds of its IPO for general corporate purposes – including working capital, operating expenses and capital expenditures – and may also acquire or invest in complementary businesses, products, services or technologies, according to a filing Friday with the U.S. Securities and Exchange Commission. The company plans to be listed on Nasdaq under the ticker symbol NTSK (see: Zscaler, Netskope, Palo Alto Top SSE Gartner Magic Quadrant).

Strong Growth, Shrinking Losses

Netskope notched a $7.5 billion valuation in July 2021 on a $300 million funding round led by Iconiq Growth, then took on $401 million of debt led by Morgan Stanley in January 2023. Netskope has 4,317 customers – including more than 30% of the Fortune 100 and roughly 18% of the Forbes Global 2000 – and features Asics, BMO Financial, Colgate-Palmolive, Exclusive Networks and Qualcomm on its roster.

Netskope experienced robust growth through the first six months of fiscal 2025, according to its 215-page filing with the SEC midday Friday. Its sales rose to $328.5 million during that period, up 30.7% from $251.3 million in the first six months of fiscal 2024. And the company’s net loss improved to $169.5 million in the first half of fiscal 2025, 18% better than the $206.7 million net loss recorded the year prior.

“We built Netskope to fight back, to empower businesses to fully embrace technology without compromise and to ensure that everyone, everywhere, can have a fast, seamless and secure digital experience,” Beri wrote in the investor letter. “We’re here to unleash data, to enable its use in the right way, and to ensure that innovation thrives, not just survives, in the face of relentless cyberthreats.”

U.S. sales made up 56% of Netskope’s revenue in the first six months of the current fiscal year, down from 58% in the first half of fiscal 2024. Nearly 25% of Netskope’s revenue in the current fiscal year comes from Europe, the Middle East and Africa, up from 24% the year prior. And Asia-Pacific and Japan comprise 19% of Netskope’s sales in the current fiscal year, up from 18% last fiscal year.

Cybersecurity’s Second IPO of 2025

Netskope’s 2,910-person employee base is distributed across the globe, with 35% located in the United States, 27% based in India, 8% based in Taiwan and the remaining 30% spread across the U.K., France, Spain, Australia, Japan and Singapore. The company said its main rivals offer a combination of security, networking and analytics and include Broadcom, Cisco, Fortinet, Palo Alto Networks and Zscaler.

“We are still in the early innings of a market we’ve re-imagined and helped define,” Beri wrote in the letter to prospective investors. “This is just the beginning, and we are incredibly energized to lead this space for decades to come. I’ve always believed in ‘skating to where the puck is going,’ but on a grander scale and timeline. We will continue to prioritize long-term success over short-term gains.”

Netskope’s IPO filing comes six months after Austin, Texas-based identity security firm SailPoint raised $1.38 billion on a $12.8 billion valuation in a Nasdaq public offering. Nine months before that, Silicon Valley-based data resilience startup Rubrik – whose portfolio spans data security, backup and disaster recovery – raised $752 million on a $6.6 billion valuation in a New York Stock Exchange public offering.

The firm has raised more than $1.44 billion across 12 equity or debt rounds since its founding in 2012. Netskope has made four acquisitions in recent years, scooping up data security posture management startup Dasera in October 2024, digital experience management startup Kadiska in September 2023, Infiot in August 2022 to address SD-WAN use cases and WootCloud in July 2022 to take on IoT and OT.

Of Netskope’s 4,317 customers, 1,372 of them were recording more than $100,000 in annual recurring revenue – accounting for 86% of the company’s ARR as of July 31, 2025 – while 111 customers generated more than $1 million in ARR, making up 37% of Netskope’s ARR. The number of clients with at least $100,000 of ARR increased by 25%, and the number of clients with at least $1 million of ARR grew by 32%.