Netskope Inc Earnings Per Share Disclosure
Note 13 - Net Loss Per Share Attributable to Common Stockholders
The Company computes net loss per share utilizing the two-class method required for participating securities. Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential common stock, including stock options, convertible preferred stock, convertible notes, RSUs, stock warrants, and restricted shares, to the extent they are dilutive.
The rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net loss per share attributable to common stockholders are, therefore, the same for both Class A and Class B common stock on both individual and combined basis.
Basic and diluted net loss per share attributable to common stockholders was as follows (in thousands, except share and per share amount):
|
|
Year Ended January 31, |
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|||||||||
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Numerator: |
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|
|
|
|
|
|
|
|
|||
Net loss attributable to common stockholders |
|
$ |
(679,388 |
) |
|
$ |
(354,510 |
) |
|
$ |
(344,852 |
) |
Denominator: |
|
|
|
|
|
|
|
|
|
|||
Weighted-average shares used in computing net loss per share |
|
|
213,896,041 |
|
|
|
97,515,591 |
|
|
|
91,394,561 |
|
Net loss per share attributable to common stockholders, basic and diluted |
|
$ |
(3.18 |
) |
|
$ |
(3.64 |
) |
|
$ |
(3.77 |
) |
The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share because including them would have had an anti-dilutive effect:
|
|
January 31, |
|
|||||||||
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Stock options |
|
|
50,718,876 |
|
|
|
58,655,952 |
|
|
|
71,176,423 |
|
Convertible preferred stock |
|
|
- |
|
|
|
218,897,608 |
|
|
|
218,893,378 |
|
Convertible notes |
|
|
22,136,005 |
|
|
|
20,879,521 |
|
|
|
17,598,191 |
|
Restricted stock units |
|
|
48,622,268 |
|
|
|
40,904,473 |
|
|
|
26,408,539 |
|
Shares subject to repurchase |
|
|
275,430 |
|
|
|
708,510 |
|
|
|
1,297,983 |
|
Conversion of stock warrants |
|
|
- |
|
|
|
199,500 |
|
|
|
204,314 |
|
Total |
|
|
121,752,579 |
|
|
|
340,245,564 |
|
|
|
335,578,828 |
|
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.