In the second initial public offering for cybersecurity stocks in 2025, Netskope on Tuesday raised its proposed price range to 17 to 19. Netskope stock will trade on the Nasdaq composite.
In the Netskope IPO, the cybersecurity firm expects to raise over $900 million with a valuation of $7.3 billion. Netskope operates a cloud-based Secure Access Service Edge, or SASE, platform that supports remote workers and branch offices. Founded in 2012, Netskope competes vs. Palo Alto Networks, Zscaler and many others.
Netskope hiked its price range to 17 to 19 from 15 to 17. "In general, when a company raises the range, that's a strong signal of high demand," said Matthew Kennedy, senior strategist at Renaissance Capital.
He added: "So far this year, 10 other IPOs have raised the price range. Nine of the 10 had double-digit pops, while one averaged a first-day return of 69.4%. I expect Netskope will have a positive debut though I'd be surprised if it went up quite that high. The year's sole IPO to raise its range and perform poorly was actually also the last cybersecurity IPO, SailPoint, which fell 4.4% on its first day."
According to a Netskope regulatory filing, the company's revenue increased 31% year-over-year to $328 million for the six months ended July 31. It had a net loss of $170 million, improving from a $207 million loss a year earlier.
"Through the Netskope One platform, we bring advanced security right to the edge via our lightning-fast global private cloud," said Chief Executive and cofounder Sanjay Beri in the filing. "We designed it to understand the new 'language' of this modern internet, to leverage AI for superior insight and control over every digital interaction, whether from a user, a device, an app, or an AI agent, and to safeguard data and organizations against both threats and data leaks, in real time."
Top Performing Cybersecurity Stocks
Netskope has focused on the financial services, health care and federal government markets.
SailPoint, backed by private equity firm Thoma Bravo, launched an IPO in February. SailPoint stock has dipped about 1% in 2025.
IBD's group of cybersecurity stocks ranks No. 121 out of 197 groups tracked.
Among cybersecurity stocks, Cloudflare has advanced 105% in 2025 while CrowdStrike Holdings has gained 29%. CrowdStrike hosts an analyst day on Wednesday.
On Tuesday, CrowdStrike announced he acquisition of AI security firm Pangea Cyber for $260 million.
Meanwhile, Zscaler stock has gained 55% and Palo Alto stock is up 10% this year.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
