Netskope Initiates IPO Roadshow with Valuation Target of Up to $6.5bn

Cybersecurity firm Netskope has started its IPO roadshow, aiming for a valuation of up to $6.5bn. The company plans to offer 47.8 million shares at a price range of $15-$17 per share, with Morgan Stanley and J.P. Morgan as lead bookrunners. Netskope's platform, Netskope One, is used by thousands of customers, including 30% of Fortune 100 companies, to mitigate risk and ensure visibility and control over cloud, AI, and web applications.

Cybersecurity firm Netskope has kicked off its Initial Public Offering (IPO) roadshow, aiming for a valuation of up to $6.5 billion. The company plans to offer 47.8 million shares at a price range of $15-$17 per share. Morgan Stanley and J.P. Morgan have been appointed as lead bookrunners for the offering.

Netskope's platform, Netskope One, is used by thousands of customers, including 30% of Fortune 100 companies, to mitigate risk and ensure visibility and control over cloud, AI, and web applications. The company's strong growth is reflected in its financials, with $707 million in annual recurring revenue (ARR) in 2025, a 33% year-over-year increase [1].

The SASE market, driven by cloud adoption, remote work, and AI security needs, is projected to grow at a compound annual growth rate (CAGR) of 23.5-24.5% from 2025 to 2034 [2]. Netskope's leadership in the Gartner Magic Quadrant for SASE positions it well to capitalize on this growth. The company's proprietary NewEdge infrastructure, spanning 120+ data centers across 75+ regions, ensures low latency and high uptime, key differentiators in a competitive market [3].

Netskope's financial health has improved significantly, with operating cash flow turning positive in H1 2025 and a gross margin of 71% [4]. The company's partner-driven model, generating 90% of its revenue, further supports its scalability and competitive positioning [5].

While the SASE market is highly competitive, with dominant players like Zscaler and Palo Alto Networks, Netskope's focus on AI-driven threat detection and Zero Trust Network Access (ZTNA) expansion mitigates some operational challenges [6]. Netskope's IPO valuation of $6.5 billion, based on a 9.1x ARR multiple, appears conservative when compared to its peers [7].

References:
[1] https://www.saastr.com/the-latest-b2b-ipo-is-netskope-and-its-fire-700m-arr-growing-33-the-next-ipos-will-be-even-better/
[2] https://www.coherentmarketinsights.com/industry-reports/secure-access-service-edge-sase-market
[3] https://www.verifiedmarketresearch.com/product/secure-access-service-edge-sase-market/
[4] https://www.mostlymetrics.com/p/netskope-ipo-s1-breakdown
[5] https://www.linkedin.com/posts/matthewball2_netskopes-s-1-filing-marks-a-pivotal-moment-activity-7366062899158491136-DRxB
[6] https://www.reddit.com/r/cybersecurity/comments/1koz9gj/netskope_vs_zscaler_vs_palo_alto_vs_cato/
[7] https://finance.yahoo.com/news/security-edge-sse-company-benchmark-141700690.html