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NTCT

NetScout Systems, Inc.

NTCT

NetScout Systems, Inc. • NASDAQ
$26.88 ▲ 0.56% (+0.15)
Market Cap $1.93 B
52w High $30.67
52w Low $18.12
Dividend Yield 0%
P/E 21.33
Volume 170.23K
Outstanding Shares 71.85M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2026 $219.017M ▲ $142.921M ▼ $25.828M ▲ 11.793% ▲ $0 ▲ $46.84M ▲
Q1-2026 $186.747M ▼ $149.889M ▲ $-3.679M ▼ -1.97% ▼ $-0.051 ▼ $14.541M ▼
Q4-2025 $204.987M ▼ $139.404M ▼ $18.617M ▼ 9.082% ▼ $0.26 ▼ $34.562M ▼
Q3-2025 $252.019M ▲ $143.694M ▲ $48.81M ▲ 19.368% ▲ $0.68 ▲ $78.334M ▲
Q2-2025 $191.108M $134.928M $9.027M 4.724% $0.13 $32.848M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2026 $516.863M ▼ $2.176B ▲ $602.632M ▼ $1.574B ▲
Q1-2026 $532.509M ▲ $2.157B ▼ $609.875M ▼ $1.548B ▼
Q4-2025 $491.473M ▲ $2.187B ▲ $626.183M ▼ $1.56B ▲
Q3-2025 $426.897M ▲ $2.175B ▲ $654.162M ▲ $1.521B ▲
Q2-2025 $400.867M $2.071B $611.284M $1.459B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2026 $25.828M ▲ $6.654M ▼ $4.725M ▲ $-17.982M ▲ $-6.192M ▼ $4.421M ▼
Q1-2026 $-3.679M ▼ $73.552M ▼ $-17.291M ▼ $-28.778M ▲ $32.157M ▼ $71.674M ▼
Q4-2025 $18.617M ▼ $141.521M ▲ $-9.037M ▼ $-75.477M ▼ $59.054M ▲ $140.123M ▲
Q3-2025 $48.81M ▲ $41.45M ▲ $1.19M ▼ $-2.78M ▼ $35.006M ▲ $39.591M ▲
Q2-2025 $9.027M $-3.729M $3.945M $-1.597M $1.142M $-4.611M

Revenue by Products

Product Q3-2025Q4-2025Q1-2026Q2-2026
Product
Product
 $130.00M ▲$90.00M ▼$70.00M ▼$90.00M ▲
Service
Service
 $120.00M ▲$120.00M ▲$110.00M ▼$120.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has been fairly flat over the past several years, with no clear growth trend. The core business is holding its ground rather than expanding. Gross margins remain healthy, showing that the company still adds good value on each dollar of sales. The concern is profitability: operating income and net income have shifted from modest profits a few years ago to meaningful losses in the last two years, with the most recent year notably weaker. This suggests either higher spending (for example on R&D, sales, or restructuring) or pricing and demand pressures that the company has not fully offset. Overall, the income statement shows a solid topline franchise but margin compression and a recent move into the red, which raises questions about how quickly management can restore sustainable profitability.

Balance Sheet

Balance Sheet The balance sheet looks generally sound but has been slowly shrinking. Total assets have trended down from earlier peaks, which can signal divestments, lower investment, or accumulated losses over time. Cash levels are reasonable relative to the size of the business, and debt has been brought down substantially from earlier years. This means the company relies less on borrowing and carries limited financial leverage, which reduces balance sheet risk. Shareholders’ equity has eased back from prior highs but still comfortably exceeds total debt, and the company appears to sit in a net cash or very low net debt position. In plain terms, the balance sheet provides a cushion, even as profitability has come under pressure.

Cash Flow

Cash Flow Despite the recent accounting losses, the company continues to generate positive cash from its operations each year. That is an important distinction: the business is still bringing in cash from customers after paying its day‑to‑day costs. Free cash flow has stayed positive and fairly steady, helped by consistently low capital spending needs. This indicates a relatively asset‑light model where most cash can, in principle, be directed to debt reduction, buybacks, or other uses rather than heavy reinvestment in physical assets. The trend, however, is not all positive: operating cash flow has weakened compared with its stronger years, mirroring the drop in profitability. So while cash generation is a strength, the direction of travel warrants attention.

Competitive Edge

Competitive Edge NetScout occupies a focused niche in network performance monitoring and cybersecurity, positioning itself as a key visibility provider for complex, high‑traffic networks. Its long history with telecom operators and large enterprises creates deep integration and high switching costs, which are important competitive strengths. The company’s proprietary packet‑level “smart data” approach, backed by a sizable patent portfolio, gives it a differentiated technical foundation. Its global threat intelligence feed and visibility into large volumes of internet traffic enhance its cybersecurity offerings, particularly in DDoS protection. An integrated suite covering service assurance and security from a single platform is another advantage, as it simplifies operations for customers and reinforces stickiness. The flip side is that the company operates in a competitive, rapidly evolving market where cloud‑native and AI‑driven rivals are continuously emerging, so maintaining this edge requires ongoing execution.

Innovation and R&D

Innovation and R&D Innovation is clearly central to NetScout’s strategy. Its Adaptive Service Intelligence technology turns raw network traffic into rich, real‑time metadata that powers both performance monitoring and security products, providing a common data foundation across the portfolio. The company has been layering more artificial intelligence and machine learning into its platforms, especially within its Arbor DDoS and newer Sentinel offerings, to automate detection of anomalies and attacks in complex, multi‑cloud environments. This is aligned with where the industry is heading. NetScout is also aligning its roadmap with major infrastructure shifts like 5G rollouts and multi‑cloud adoption, where the need for deep network visibility is rising. The firm’s history of targeted acquisitions and partnerships suggests it is willing to buy or ally for capabilities that complement its own R&D. The key execution risk is turning this technical leadership into renewed growth and improved margins.

Summary

NetScout combines a strong technical franchise and entrenched customer relationships with a weaker recent financial performance. On the positive side, the company maintains solid gross margins, generates consistent free cash flow, and carries little debt, giving it financial resilience. Its technology, patents, global threat intelligence, and integrated product suite provide a credible moat in network visibility and security, and its innovation agenda is well aligned with long‑term trends like 5G, multi‑cloud, and AI‑driven analytics. On the risk side, revenue has been essentially flat for years and profitability has deteriorated into losses, with operating and net margins moving sharply the wrong way. Cash flows remain positive but are softer than prior years. In essence, NetScout looks like a technically strong, strategically well‑positioned company that is currently wrestling with growth and margin challenges. The main questions going forward are whether its innovation and product strengths can translate into renewed revenue momentum and a return to sustained profitability, while preserving its healthy balance sheet and cash‑generating profile.

NEWS

November 10, 2025 · 8:30 AM UTC

NETSCOUT to Participate in Upcoming Investor Conferences

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November 6, 2025 · 7:30 AM UTC

NETSCOUT Reports Second Quarter Fiscal Year 2026 Financial Results

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October 30, 2025 · 10:05 AM UTC

CORRECTING and REPLACING NETSCOUT Expands Capabilities to Support Enterprise Compliance Requirements in Cloud Environments

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October 30, 2025 · 8:05 AM UTC

NETSCOUT Extends Visibility Into Kubernetes Containers With Continuous Observability Innovation

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October 23, 2025 · 8:05 AM UTC

NETSCOUT Extends Visibility Into Kubernetes Containers With Continuous Observability Innovation

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