NETSCOUT Reports Second Quarter Fiscal Year 2026 Financial Results
Quarterly Results Exceed Top and Bottom-Line Expectations
Company Raises Fiscal Year Outlook
Remarks by Anil Singhal, NETSCOUT’s President & Chief Executive Officer:
"We delivered another solid quarter in Q2, driven by revenue growth from both our Cybersecurity and Service Assurance product lines as we continued to advance our strategic initiatives, including AI-driven product innovation. Our strong top and bottom-line performance also benefited from the acceleration of some orders originally anticipated in the second half of the fiscal year.
“Looking ahead, given our strong first-half performance, we are raising our revenue and earnings per share outlook while we continue to successfully navigate uncertainties in the macroeconomic environment. We are energized by strong customer feedback, including at our recent Engage Technology and User Summit, where we showcased our latest solutions. It is clear that our customers rely on our highly curated data to drive improved business outcomes across key ecosystems, which positions us well to capture new opportunities through our differentiated solutions.”
Q2 FY26 Financial Results
Total revenue for the second quarter of fiscal year 2026 increased to
Product revenue for the second quarter of fiscal year 2026 was
Service revenue for the second quarter of fiscal year 2026 was
NETSCOUT’s GAAP income from operations was
Net income (GAAP) for the second quarter of fiscal year 2026 was
As of September 30, 2025, cash, cash equivalents, short and long-term marketable securities and investments were
First-Half FY26 Financial Results
-
For the first half of fiscal year 2026, total revenue was
$405.8 million $365.7 million -
Product revenue for the first half of fiscal year 2026 was
$167.7 million $142.2 million -
Service revenue for the first half of fiscal year 2026 was
$238.1 million $223.5 million -
NETSCOUT’s income from operations (GAAP) for the first half of fiscal year 2026 was
$25.9 million $449.2 million $427.0 million $19.0 million 6.4% , versus negative122.8% in the first half of fiscal year 2025. The Company’s non-GAAP EBITDA from operations for the first half of fiscal year 2026 was$90.0 million 22.2% of total revenue, versus non-GAAP EBITDA from operations of$65.3 million 17.9% of total revenue in the first half of fiscal year 2025. The Company’s non-GAAP income from operations for the first half of fiscal year 2026 was$84.6 million 20.9% , compared with non-GAAP income from operations of$58.1 million 15.9% for the first half of fiscal year 2025. -
For the first half of fiscal year 2026, NETSCOUT’s net income (GAAP) was
$22.1 million $0.30 $434.3 million $(6.08) $69.8 million $0.95 $54.1 million $0.75
Financial Outlook Update
The Company is raising its revenue and GAAP and non-GAAP net income per share (diluted) outlook for fiscal year 2026:
-
Revenue is now expected to be in the range of
$830 million $870 million $825 million $865 million -
GAAP net income per share (diluted) is now expected to be in the range of
$1.13 $1.23 $1.07 $1.22 $2.35 $2.45 $2.25 $2.40 - A reconciliation between GAAP and non-GAAP numbers for NETSCOUT’s fiscal year 2026 outlook is included in the financial tables below.
Recent Developments and Highlights
- In late October, the Company announced the availability of extended continuous end-through-end monitoring to enhance attribution for audit controls and incident reports, prove zero-trust network policies, and shorten time to detect, contain, and document incidents. Enhanced monitoring is designed into NETSCOUT's Omnis® KlearSight Sensor for Kubernetes (KlearSight) to help address the complex compliance demands faced in Cloud environments related to both security and regulatory requirements. NETSCOUT’s continuous and comprehensive monitoring solutions provide real-time visibility into critical aspects such as workloads, cluster configurations, network traffic, and API calls.
- In October, NETSCOUT announced an innovation aimed at meeting organizations’ increasing needs for comprehensive observability within complex cloud environments. KlearSight delivers deep, actionable, and real-time insights into system performance, health, and cost drivers. The solution is specifically designed to support environments that are challenging to monitor due to their encrypted nature, such as dynamic and distributed architectures.
- In late September, NETSCOUT hosted its annual Engage Technology and User Summit, gathering tech leaders and innovators who are shaping the future of Observability, AIOps, and Cybersecurity. NETSCOUT is driving intelligence into Observability and AIOps to feed the need for actionable telemetry derived from wire data and to leverage the unmatched power of its scalable DPI and metadata technology.
- In late September, NETSCOUT announced solutions to support cable providers and multiple service operators (MSOs). NETSCOUT’s Omnis™ AI Insights generates a high-fidelity, curated dataset to provide real-time network visibility, ensuring a high-quality user experience for video streaming and over-the-top (OTT) services to help MSOs deliver better high-quality user experiences more cost-effectively.
- In late August, NETSCOUT released its latest research detailing the evolving Distributed Denial-of-Service (DDoS) attack landscape. The Company monitored more than 8 million DDoS attacks globally in the first half of 2025, including more than 3.2 million in EMEA. NETSCOUT maps the DDoS landscape through passive, active, and reactive vantage points, providing unparalleled visibility into global attack trends.
Conference Call Instructions:
NETSCOUT will host a conference call to discuss its second-quarter fiscal year 2026 financial results and financial outlook today at 8:30 a.m. ET. This call will be webcast live through NETSCOUT’s website at https://ir.netscout.com/investors/overview/default.aspx. Alternatively, investors can listen to the call by dialing (203) 518-9783. The conference call ID is NTCTQ226. A replay of the call will be available after 12:00 p.m. ET today, for approximately one week. The number for the replay is (800) 839-3011 for
Use of Non-GAAP Financial Information:
To supplement the financial measures presented in NETSCOUT's press release in accordance with accounting principles generally accepted in
These non-GAAP measures are not in accordance with GAAP, should not be considered an alternative for measures prepared in accordance with GAAP (gross profit, operating margin, net income, and diluted net income per share), and may have limitations because they do not reflect all NETSCOUT’s results of operations as determined in accordance with GAAP. These non-GAAP measures should only be used to evaluate NETSCOUT’s results of operations in conjunction with the corresponding GAAP measures. The presentation of non-GAAP information is not meant to be considered superior to, in isolation from, or as a substitute for results prepared in accordance with GAAP. NETSCOUT believes these non-GAAP financial measures will enhance the reader’s overall understanding of NETSCOUT’s current financial performance and NETSCOUT's prospects for the future by providing a higher degree of transparency for certain financial measures and providing a level of disclosure that helps investors understand how the Company plans and measures its own business. NETSCOUT believes that providing these non-GAAP measures affords investors a view of NETSCOUT’s operating results that may be more easily compared to peer companies and also enables investors to consider NETSCOUT’s operating results on both a GAAP and non-GAAP basis during and following the integration period of NETSCOUT’s acquisitions. Presenting the GAAP measures on their own, without the supplemental non-GAAP disclosures, might not be indicative of NETSCOUT’s core operating results. Furthermore, NETSCOUT believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures provides useful information to management and investors regarding present and future business trends relating to its financial condition and results of operations.
NETSCOUT management regularly uses supplemental non-GAAP financial measures internally to understand, manage and evaluate its business and to make operating decisions. These non-GAAP measures are among the primary factors that management uses in planning and forecasting.
About NETSCOUT
NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT) protects the connected world from cyberattacks and performance and availability disruptions through the company’s unique visibility platform and solutions powered by its pioneering deep packet inspection at scale technology. NETSCOUT serves the world’s largest enterprises, service providers, and public sector organizations. Learn more at www.netscout.com or follow @NETSCOUT on LinkedIn, X (formerly known as Twitter), or Facebook.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Examples of forward-looking statements include statements regarding our future financial performance or position, liquidity, results of operations, business strategy, plans and objectives of management for future operations, and other statements that are not historical fact. You can identify forward-looking statements by their use of forward-looking words such as “may,” “will,” “anticipate,” “expect,” “believe,” “estimate,” “intend,” “plan,” “should,” “seek,” or other comparable terms. Investors are cautioned that such forward-looking statements in this press release include, without limitation, statements regarding NETSCOUT’s ability to capture new opportunities through its differentiated solutions; NETSCOUT’s financial outlook and expectations; NETSCOUT’s strategic objectives, plans, commitments, aspirations and goals. Actual results could differ materially from those indicated in the forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other factors, including macroeconomic factors and slowdowns or downturns in economic conditions generally and in the market for advanced networks, service assurance and cybersecurity solutions specifically; the volatile foreign exchange environment; the Company’s relationships with strategic partners and resellers; dependence upon broad-based acceptance of the Company’s network performance management solutions; the presence of competitors with greater financial resources than the Company has, and their strategic response to the Company’s products; the Company’s ability to retain key executives and employees; the Company’s ability to realize the anticipated savings from restructuring actions and other expense management programs; potential lower than expected demand for the Company’s products and services; and the timing and magnitude of stock buyback activity based on market conditions, corporate considerations, debt agreements, and regulatory requirements. The risks included above are not exhaustive. For a more detailed description of the risk factors associated with the Company, please refer to the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025, filed with the Securities and Exchange Commission on May 15, 2025. Any forward-looking information in this press release is as of the date of this press release, and NETSCOUT undertakes no obligation to update such information unless required by law. NETSCOUT’s financial guidance is based on estimates and assumptions that are subject to significant uncertainties.
©2025 NETSCOUT SYSTEMS, INC. All rights reserved. NETSCOUT and the NETSCOUT logo are registered trademarks or trademarks of NETSCOUT SYSTEMS, INC. and/or its subsidiaries and/or affiliates in the
NETSCOUT SYSTEMS, INC. Condensed Consolidated Statements of Operations (In thousands, except for per share data) (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
Three Months Ended |
Six Months Ended |
|||||||||||
|
|
|
|
September 30, |
September 30, |
|||||||||||
|
|
|
|
|
2025 |
|
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
Revenue: |
|
|
|
|
|
|
|
|||||||||
Product |
|
$ |
94,712 |
|
|
$ |
81,033 |
|
$ |
167,705 |
|
$ |
142,202 |
|
||
Service |
|
|
124,305 |
|
|
|
110,075 |
|
|
238,059 |
|
|
223,471 |
|
||
Total revenue |
|
|
219,017 |
|
|
|
191,108 |
|
|
405,764 |
|
|
365,673 |
|
||
Cost of revenue: |
|
|
|
|
|
|
|
|||||||||
Product |
|
|
11,597 |
|
|
|
13,440 |
|
|
23,522 |
|
|
25,444 |
|
||
Service |
|
|
32,013 |
|
|
|
28,617 |
|
|
63,510 |
|
|
60,982 |
|
||
Total cost of revenue |
|
|
43,610 |
|
|
|
42,057 |
|
|
87,032 |
|
|
86,426 |
|
||
Gross profit |
|
|
175,407 |
|
|
|
149,051 |
|
|
318,732 |
|
|
279,247 |
|
||
Operating expenses: |
|
|
|
|
|
|
|
|||||||||
Research and development |
|
|
40,269 |
|
|
|
35,909 |
|
|
80,058 |
|
|
78,374 |
|
||
Sales and marketing |
|
|
64,925 |
|
|
|
61,226 |
|
|
135,520 |
|
|
131,556 |
|
||
General and administrative |
|
|
26,261 |
|
|
|
23,742 |
|
|
54,118 |
|
|
49,323 |
|
||
Amortization of acquired intangible assets |
|
|
11,162 |
|
|
|
11,642 |
|
|
22,281 |
|
|
23,256 |
|
||
Restructuring charges |
|
|
304 |
|
|
|
2,409 |
|
|
833 |
|
|
18,972 |
|
||
Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
— |
|
|
426,967 |
|
||
Total operating expenses |
|
|
142,921 |
|
|
|
134,928 |
|
|
292,810 |
|
|
728,448 |
|
||
Income (loss) from operations |
|
|
32,486 |
|
|
|
14,123 |
|
|
25,922 |
|
|
(449,201 |
) |
||
Interest and other (expense) income, net |
|
|
(1,104 |
) |
|
|
(1,797 |
) |
|
2,632 |
|
|
7,831 |
|
||
Income (loss) before income tax expense (benefit) |
|
|
31,382 |
|
|
|
12,326 |
|
|
28,554 |
|
|
(441,370 |
) |
||
Income tax expense (benefit) |
|
|
5,554 |
|
|
|
3,299 |
|
|
6,405 |
|
|
(7,021 |
) |
||
Net income (loss) |
|
$ |
25,828 |
|
|
$ |
9,027 |
|
$ |
22,149 |
|
$ |
(434,349 |
) |
||
|
|
|
|
|
|
|
|
|
|
|||||||
Basic net income (loss) per share |
|
$ |
0.36 |
|
|
$ |
0.13 |
|
$ |
0.31 |
|
$ |
(6.08 |
) |
||
Diluted net income (loss) per share |
|
$ |
0.35 |
|
|
$ |
0.13 |
|
$ |
0.30 |
|
$ |
(6.08 |
) |
||
Weighted average common shares outstanding used in computing: |
|
|
|
|
|
|
|
|||||||||
Net income (loss) per share - basic |
|
|
72,077 |
|
|
|
71,447 |
|
|
71,904 |
|
|
71,457 |
|
||
Net income (loss) per share - diluted |
|
|
72,917 |
|
|
|
71,837 |
|
|
73,130 |
|
|
71,457 |
|
||
NETSCOUT SYSTEMS, INC. Consolidated Balance Sheets (In thousands) |
|||||||
|
September 30, |
|
March 31, |
||||
|
2025 |
|
2025 |
||||
|
(Unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash, cash equivalents, marketable securities and investments |
$ |
516,863 |
|
|
$ |
491,473 |
|
Accounts receivable and unbilled costs, net |
|
130,158 |
|
|
|
163,654 |
|
Inventories and deferred costs |
|
12,381 |
|
|
|
12,891 |
|
Prepaid expenses and other current assets |
|
48,629 |
|
|
|
45,166 |
|
Total current assets |
|
708,031 |
|
|
|
713,184 |
|
|
|
|
|
||||
Fixed assets, net |
|
21,290 |
|
|
|
21,529 |
|
Operating lease right-of-use assets |
|
38,388 |
|
|
|
37,717 |
|
Goodwill and intangible assets, net |
|
1,307,906 |
|
|
|
1,335,073 |
|
Long-term marketable securities |
|
10,042 |
|
|
|
1,004 |
|
Other assets |
|
90,527 |
|
|
|
78,071 |
|
Total assets |
$ |
2,176,184 |
|
|
$ |
2,186,578 |
|
|
|
|
|
||||
Liabilities and Stockholders' Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
14,706 |
|
|
$ |
18,208 |
|
Accrued compensation |
|
53,461 |
|
|
|
56,696 |
|
Accrued other |
|
22,484 |
|
|
|
20,280 |
|
Deferred revenue and customer deposits |
|
276,768 |
|
|
|
301,753 |
|
Current portion of operating lease liabilities |
|
10,009 |
|
|
|
10,995 |
|
Total current liabilities |
|
377,428 |
|
|
|
407,932 |
|
|
|
|
|
||||
Other long-term liabilities |
|
7,911 |
|
|
|
8,210 |
|
Deferred tax liability |
|
2,872 |
|
|
|
2,643 |
|
Accrued long-term retirement benefits |
|
29,571 |
|
|
|
27,379 |
|
Long-term deferred revenue and customer deposits |
|
151,311 |
|
|
|
147,510 |
|
Operating lease liabilities, net of current portion |
|
33,539 |
|
|
|
32,509 |
|
Total liabilities |
|
602,632 |
|
|
$ |
626,183 |
|
|
|
|
|
||||
Stockholders' equity: |
|
|
|
||||
Common stock |
|
136 |
|
|
|
134 |
|
Additional paid-in capital |
|
3,293,220 |
|
|
|
3,255,333 |
|
Accumulated other comprehensive income |
|
3,954 |
|
|
|
4,073 |
|
Treasury stock, at cost |
|
(1,701,464 |
) |
|
|
(1,654,702 |
) |
Accumulated deficit |
|
(22,294 |
) |
|
|
(44,443 |
) |
Total stockholders' equity |
|
1,573,552 |
|
|
|
1,560,395 |
|
Total liabilities and stockholders' equity |
$ |
2,176,184 |
|
|
$ |
2,186,578 |
|
NETSCOUT SYSTEMS, INC. Reconciliation of Current GAAP to Current and Historical Non-GAAP Financial Measures (In thousands, except for per share data) (Unaudited) |
|||||||||||||||||||||
|
|
|
|
|
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|
|
|
|||||||||||||
|
Three Months Ended |
|
Three Months Ended |
Six Months Ended |
|||||||||||||||||
|
September 30, |
|
June 30, |
September 30, |
|||||||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
2025 |
|
|
|
2024 |
|
|||
|
|
|
|
|
|
|
|
|
|||||||||||||
Revenue |
|
$ |
219,017 |
|
|
$ |
191,108 |
|
|
$ |
186,747 |
|
$ |
405,764 |
|
|
$ |
365,673 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross Profit (GAAP) |
|
$ |
175,407 |
|
|
$ |
149,051 |
|
|
$ |
143,325 |
|
$ |
318,732 |
|
|
$ |
279,247 |
|
||
Share-based compensation expense (1) |
|
|
2,227 |
|
|
|
2,200 |
|
|
|
3,160 |
|
|
5,387 |
|
|
|
5,520 |
|
||
Amortization of acquired intangible assets (2) |
|
|
551 |
|
|
|
996 |
|
|
|
550 |
|
|
1,101 |
|
|
|
1,991 |
|
||
Acquisition related depreciation expense (3) |
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
3 |
|
|
|
4 |
|
||
Non-GAAP Gross Profit |
|
$ |
178,186 |
|
|
$ |
152,249 |
|
|
$ |
147,037 |
|
$ |
325,223 |
|
|
$ |
286,762 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (Loss) from Operations (GAAP) |
|
$ |
32,486 |
|
|
$ |
14,123 |
|
|
$ |
(6,564 |
) |
$ |
25,922 |
|
|
$ |
(449,201 |
) |
||
GAAP Operating Margin |
|
|
14.8 |
% |
|
|
7.4 |
% |
|
|
(3.5 |
)% |
|
6.4 |
% |
|
|
(122.8 |
)% |
||
Share-based compensation expense (1) |
|
|
13,557 |
|
|
|
14,886 |
|
|
|
19,959 |
|
|
33,516 |
|
|
|
36,084 |
|
||
Amortization of acquired intangible assets (2) |
|
|
11,713 |
|
|
|
12,638 |
|
|
|
11,669 |
|
|
23,382 |
|
|
|
25,247 |
|
||
Restructuring charges |
|
|
304 |
|
|
|
2,409 |
|
|
|
529 |
|
|
833 |
|
|
|
18,972 |
|
||
Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
426,967 |
|
||
Acquisition related depreciation expense (3) |
|
|
11 |
|
|
|
11 |
|
|
|
12 |
|
|
23 |
|
|
|
23 |
|
||
Executive Transition Costs (4) |
|
|
— |
|
|
|
— |
|
|
|
959 |
|
|
959 |
|
|
|
— |
|
||
Non-GAAP Income from Operations |
|
$ |
58,071 |
|
|
$ |
44,067 |
|
|
$ |
26,564 |
|
$ |
84,635 |
|
|
$ |
58,092 |
|
||
Non-GAAP Operating Margin |
|
|
26.5 |
% |
|
|
23.1 |
% |
|
|
14.2 |
% |
|
20.9 |
% |
|
|
15.9 |
% |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Income (Loss) (GAAP) |
|
$ |
25,828 |
|
|
$ |
9,027 |
|
|
$ |
(3,679 |
) |
$ |
22,149 |
|
|
$ |
(434,349 |
) |
||
Share-based compensation expense (1) |
|
|
13,557 |
|
|
|
14,886 |
|
|
|
19,959 |
|
|
33,516 |
|
|
|
36,084 |
|
||
Amortization of acquired intangible assets (2) |
|
|
11,713 |
|
|
|
12,638 |
|
|
|
11,669 |
|
|
23,382 |
|
|
|
25,247 |
|
||
Restructuring charges |
|
|
304 |
|
|
|
2,409 |
|
|
|
529 |
|
|
833 |
|
|
|
18,972 |
|
||
Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
426,967 |
|
||
Acquisition related depreciation expense (3) |
|
|
11 |
|
|
|
11 |
|
|
|
12 |
|
|
23 |
|
|
|
23 |
|
||
Executive Transition Costs (4) |
|
|
— |
|
|
|
— |
|
|
|
959 |
|
|
959 |
|
|
|
— |
|
||
Income tax adjustments (5) |
|
|
(6,336 |
) |
|
|
(5,409 |
) |
|
|
(4,712 |
) |
|
(11,048 |
) |
|
|
(18,804 |
) |
||
Non-GAAP Net Income |
|
$ |
45,077 |
|
|
$ |
33,562 |
|
|
$ |
24,737 |
|
$ |
69,814 |
|
|
$ |
54,140 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted Net Income (Loss) Per Share (GAAP) |
|
$ |
0.35 |
|
|
$ |
0.13 |
|
|
$ |
(0.05 |
) |
$ |
0.30 |
|
|
$ |
(6.08 |
) |
||
Share impact of non-GAAP adjustments identified above |
|
|
0.27 |
|
|
|
0.34 |
|
|
|
0.39 |
|
|
0.65 |
|
|
|
6.83 |
|
||
Non-GAAP Diluted Net Income Per Share |
|
$ |
0.62 |
|
|
$ |
0.47 |
|
|
$ |
0.34 |
|
$ |
0.95 |
|
|
$ |
0.75 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shares used in computing non-GAAP diluted net income per share |
|
|
72,917 |
|
|
|
71,837 |
|
|
|
73,376 |
|
|
73,130 |
|
|
|
72,197 |
|
||
NETSCOUT SYSTEMS, INC. |
||||||||||||||||||||||
Reconciliation of Current GAAP to Current and Historical Non-GAAP Financial Measures - Continued |
||||||||||||||||||||||
(In thousands) |
||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
Three Months Ended |
|
Three Months Ended |
Six Months Ended |
|||||||||||||||
|
|
|
|
September 30, |
|
June 30, |
September 30, |
|||||||||||||||
|
|
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
2025 |
|
|
|
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
(1 |
) |
Share-based compensation expense included in these amounts is as follows: |
|
|
|
|
|
|
|
|
|
|||||||||||
Cost of product revenue |
|
$ |
297 |
|
|
$ |
295 |
|
|
$ |
413 |
|
$ |
710 |
|
|
$ |
726 |
|
|||
Cost of service revenue |
|
|
1,930 |
|
|
|
1,905 |
|
|
|
2,747 |
|
|
4,677 |
|
|
|
4,794 |
|
|||
Research and development |
|
|
3,990 |
|
|
|
3,934 |
|
|
|
5,532 |
|
|
9,522 |
|
|
|
9,820 |
|
|||
Sales and marketing |
|
|
4,672 |
|
|
|
5,275 |
|
|
|
6,889 |
|
|
11,562 |
|
|
|
12,779 |
|
|||
General and administrative |
|
|
2,668 |
|
|
|
3,477 |
|
|
|
4,378 |
|
|
7,045 |
|
|
|
7,965 |
|
|||
Total share-based compensation expense |
|
$ |
13,557 |
|
|
$ |
14,886 |
|
|
$ |
19,959 |
|
$ |
33,516 |
|
|
$ |
36,084 |
|
|||
(2 |
) |
Amortization expense related to acquired software and product technology, tradenames, customer relationships included in these amounts is as follows: |
|
|
|
|
|
|
|
|
|
|||||||||||
Cost of product revenue |
|
$ |
551 |
|
|
$ |
996 |
|
|
$ |
550 |
|
$ |
1,101 |
|
|
$ |
1,991 |
|
|||
Operating expenses |
|
|
11,162 |
|
|
|
11,642 |
|
|
|
11,119 |
|
|
22,281 |
|
|
|
23,256 |
|
|||
Total amortization expense |
|
$ |
11,713 |
|
|
$ |
12,638 |
|
|
$ |
11,669 |
|
$ |
23,382 |
|
|
$ |
25,247 |
|
|||
(3 |
) |
Acquisition related depreciation expense included in these amounts is as follows: |
|
|
|
|
|
|
|
|
|
|||||||||||
Cost of product revenue |
|
$ |
1 |
|
|
$ |
2 |
|
|
$ |
2 |
|
$ |
3 |
|
|
$ |
4 |
|
|||
Cost of service revenue |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|||
Research and development |
|
|
7 |
|
|
|
7 |
|
|
|
8 |
|
|
15 |
|
|
|
15 |
|
|||
Sales and marketing |
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
4 |
|
|
|
4 |
|
|||
General and administrative |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
1 |
|
|
|
— |
|
|||
Total acquisition related depreciation expense |
|
$ |
11 |
|
|
$ |
11 |
|
|
$ |
12 |
|
$ |
23 |
|
|
$ |
23 |
|
|||
(4 |
) |
Executive transition costs included in these amounts is as follows: |
|
|
|
|
|
|
|
|
|
|||||||||||
General and administrative |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
959 |
|
$ |
959 |
|
|
$ |
— |
|
|||
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
959 |
|
$ |
959 |
|
|
$ |
— |
|
|||
(5 |
) |
Total income tax adjustment included in this amount is as follows: |
|
|
|
|
|
|
|
|
|
|||||||||||
Tax effect of non-GAAP adjustments above |
|
$ |
(6,336 |
) |
|
$ |
(5,409 |
) |
|
$ |
(4,712 |
) |
$ |
(11,048 |
) |
|
$ |
(18,804 |
) |
|||
Total income tax adjustments |
|
$ |
(6,336 |
) |
|
$ |
(5,409 |
) |
|
$ |
(4,712 |
) |
$ |
(11,048 |
) |
|
$ |
(18,804 |
) |
|||
NETSCOUT SYSTEMS, INC. |
|||||||||||||||||||
Reconciliation of Current GAAP to Current and Historical Non-GAAP Financial Measures - |
|||||||||||||||||||
Non-GAAP EBITDA from Operations |
|||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
|
Three Months Ended |
Six Months Ended |
||||||||||||||
|
|
September 30, |
|
June 30, |
September 30, |
||||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
2025 |
|
|
|
2024 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from operations (GAAP) |
|
$ |
32,486 |
|
|
$ |
14,123 |
|
|
$ |
(6,564 |
) |
$ |
25,922 |
|
|
$ |
(449,201 |
) |
Income (loss) from operations (GAAP) as a % of revenue |
|
|
14.8 |
% |
|
|
7.4 |
% |
|
|
(3.5 |
)% |
|
6.4 |
% |
|
|
(122.8 |
)% |
Previous adjustments to determine non-GAAP income from operations |
|
|
25,585 |
|
|
|
29,944 |
|
|
|
33,128 |
|
|
58,713 |
|
|
|
507,293 |
|
Non-GAAP Income from operations |
|
$ |
58,071 |
|
|
$ |
44,067 |
|
|
$ |
26,564 |
|
$ |
84,635 |
|
|
$ |
58,092 |
|
Depreciation excluding acquisition related-depreciation expense |
|
|
2,630 |
|
|
|
3,451 |
|
|
|
2,776 |
|
|
5,406 |
|
|
|
7,235 |
|
Non-GAAP EBITDA from operations |
|
$ |
60,701 |
|
|
$ |
47,518 |
|
|
$ |
29,340 |
|
$ |
90,041 |
|
|
$ |
65,327 |
|
Non-GAAP EBITDA from operations as a % of revenue |
|
|
27.7 |
% |
|
|
24.9 |
% |
|
|
15.7 |
% |
|
22.2 |
% |
|
|
17.9 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
NETSCOUT SYSTEMS, INC. |
||||||
Reconciliation of GAAP Financial Outlook to Non-GAAP Financial Outlook |
||||||
(Unaudited) |
||||||
(In millions, except for net income per share - diluted) |
||||||
|
|
|
|
|
||
|
FY'25 |
|
FY'26 |
|
||
Revenue |
$ |
822.7 |
|
|
~ |
|
|
|
|
|
|
||
|
FY'25 |
|
FY'26 |
|
||
GAAP net income (loss) |
$ |
(366.9 |
) |
|
|
|
Amortization of intangible assets |
$ |
50.4 |
|
|
|
|
Share-based compensation expenses |
$ |
64.8 |
|
|
|
|
Acquisition related depreciation expense |
$ |
— |
|
|
— |
|
Executive transition costs |
$ |
— |
|
|
~ |
|
Restructuring charges |
$ |
20.5 |
|
|
|
|
Loss on Debt Extinguishment |
$ |
1.1 |
|
|
— |
|
Goodwill impairment |
$ |
427.0 |
|
|
— |
|
Total adjustments |
$ |
563.8 |
|
|
|
|
Related impact of adjustments on income tax |
$ |
(36.5 |
) |
|
( |
|
Non-GAAP net income |
$ |
160.4 |
|
|
|
|
|
|
|
|
|
||
GAAP net income (loss) per share (diluted) |
$ |
(5.12 |
) |
|
|
|
Non-GAAP net income per share (diluted) |
$ |
2.22 |
|
|
|
|
|
|
|
|
|
||
Average weighted shares outstanding (diluted GAAP) |
|
71.6 |
|
|
~73 |
|
Average weighted shares outstanding (diluted Non-GAAP) |
|
72.2 |
|
|
~73 |
|
*Figures in table may not total due to rounding |
|
|
|
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20251106589391/en/
Investors
Scott Dressel
AVP, Corporate Finance
978-614-4000
IR@netscout.com
Media
Chris Lucas
AVP, Marketing & Corporate Communications
978-614-4124
Chris.Lucas@netscout.com
Source: NETSCOUT SYSTEMS, INC
