Episode Details

Netskope (NTSK) Q2 FY2027 — It opened 12.8% higher, gave the whole gap back, and sits about 3% above the pre-print close. Netskope beat every line it guided to in June and raised the full year - and quietly cut its full-year free cash flow margin guide from "2% to 4%" to "approximately 2%". The first half burned $87.0M. THE CALL: HOLD (3/5, MODERATE) — base-case value ~$15.01 vs ~$14.16 today. KEY METRICS: - Revenue $220.5M, +29.2% YoY - above the $213-215M guide - Non-GAAP operating margin (9)% vs a (14)-(15)% guide - ARR $899M +27%; dollar-based net retention 114% vs 118% - H1 free cash flow -$87.0M (-20.6% margin) vs -$2.2M a year ago - FY27 free cash flow margin guide cut from 2-4% to approximately 2% - That needs +$104.8M in the back half - 7.2x last year's H2 - Net cash $369.2M; EV/ARR 6.03x at $14.16 What to watch: the Q3 release in early December - does free cash flow turn, and does non-current deferred revenue stop falling Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision.