Netskope, a cloud security company based in Santa Clara, California, has filed to go public on the Nasdaq under the ticker “NTSK.”

The company reported annual recurring revenue up 33% to US$707 million, with revenue up 31% to US$328 million for the first half of the year.

Netskope remains unprofitable, posting a net loss of US$170 million in the same period, though this narrowed from a US$207 million loss a year earlier.

The IPO comes amid increased activity in tech listings, alongside recent debuts by firms like Figma and eToro.

Netskope competes with companies such as Palo Alto Networks, Cisco, Zscaler, Broadcom, and Fortinet. Major investors include Accel, Lightspeed Ventures, and Iconiq.

Morgan Stanley and JP Morgan are leading the IPO, with 13 additional banks as underwriters.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Cybersecurity IPOs benefit from strategic timing during M&A consolidation wave

Netskope’s decision to go public coincides with significant consolidation activity in cybersecurity, potentially creating favorable conditions for investor interest.

The timing aligns with this year’s major technology deals: Alphabet’s $32 billion acquisition of Wiz and Palo Alto Networks’ planned $25 billion purchase of CyberArk 1.

This M&A activity signals that large technology companies view cybersecurity assets as strategic priorities, which historically creates positive sentiment for public market investors evaluating similar companies.

The consolidation trend also supports Netskope’s market positioning, as enterprises increasingly seek comprehensive security platforms rather than point solutions—a shift that benefits integrated providers like Netskope with its unified SASE platform 2.

2️⃣ Private market valuations have reset significantly from 2021 peaks

Netskope’s expected IPO valuation illustrates how private company valuations have adjusted from the 2021 market highs.

The company’s valuation peaked at $7.5 billion in 2021 but is now anticipated to price around $5 billion for the upcoming IPO—a 33% reduction despite continued strong growth 2.