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NETSCOUT . Q1 FY'27 Financial Results Conference Call Period ended June 30 , 2026 Published August 6 , 2026 COPYRIGHT © 2026 NETSCOUT SYSTEMS , INC . | NETSCOUT PUBLIC
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 2 Agenda Introduction Scott Dressel, Vice President Corporate Finance CFO Financial Review Tony Piazza, Executive Vice President & Chief Financial Officer Question & Answer Session NETSCOUT PUBLIC CEO Perspective Anil Singhal, President & Chief Executive Officer
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 3 Forward-Looking Statements NETSCOUT PUBLIC This presentation 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 continuing to execute on its strategy to drive revenue growth, margin expansion, and solid free cash flow, and believes it is well positioned to deliver the intelligence that strengthens network resilience, improves operational efficiency, and supports confident, data-driven decision making; 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; potential lower than expected demand for the Company’s products and services; and the Company’s ability to recognize the expected gain from its acquisition of the assets of DigiCert, Inc.’s DDoS protection business. The risks included above are not exhaustive. For a more detailed description of the risk factors associated with the Company, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of the Company’s filings with the Securities and Exchange Commission, including but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q. 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. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. NETSCOUT’s financial guidance is based on estimates and assumptions that are subject to significant uncertainties.
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 4 Non-GAAP Financial Metrics NETSCOUT PUBLIC To supplement the financial measures presented in NETSCOUT’s presentation in accordance with accounting principles generally accepted in the United States (GAAP), NETSCOUT also reports the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP diluted net income per share, adjusted EBITDA, and free cash flow. Non-GAAP gross profit removes expenses related to the amortization of acquired intangible assets, share-based compensation expense, and acquisition-related depreciation expense from gross profit (GAAP). Non-GAAP gross margin is non-GAAP gross profit expressed as a percentage of revenue. Non-GAAP income from operations includes the aforementioned adjustments related to non-GAAP gross profit and also removes executive transition costs, and restructuring charges from income from operations (GAAP). Non-GAAP operating margin is non-GAAP income from operations expressed as a percentage of revenue. Non-GAAP net income includes the foregoing adjustments related to non-GAAP income from operations and also removes the income tax effects of such adjustments as well as any loss on extinguishment of debt from net income (GAAP). Non-GAAP diluted net income per share is non-GAAP net income divided by total outstanding shares on a diluted basis. Adjusted EBITDA includes the aforementioned adjustments to non-GAAP net income and also removes interest and other expense, income taxes expenses, and non-acquisition related depreciation from net income (GAAP). Free cash flow removes cash outlays for fixed and intangible assets, as well as capitalized software, from operating cash flow. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures included in the attached tables within this presentation. These non-GAAP measures are not prepared in accordance with GAAP, should not be considered an alternative for measures prepared in accordance with GAAP (gross profit, income from operations, operating margin, net income, and diluted net income per share), and may have limitations because they do not reflect all of 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.
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 5 CEO Perspective Anil Singhal President & Chief Executive Officer NETSCOUT PUBLIC
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 6 Q1 FY’27 Financial Highlights (GAAP revenue, other metrics non-GAAP) NETSCOUT PUBLIC Gross Margin (Non-GAAP) Q1 80.6% +1.9pts Y/Y Total Revenue (GAAP) Q1 $210.4M +13% Y/Y Diluted EPS (Non-GAAP) Q1 $0.52 +53% Y/Y Operating Margin (Non-GAAP) Q1 20.8% +6.6pts Y/Y Note: Revenue is a GAAP measure. All other amounts are non-GAAP measures. See the slide entitled “Non-GAAP Financial Metrics” near the beginning of this presentation for a description of the non-GAAP financial measures and the appendix for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures.
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 7 Business & Market Insights Service Assurance Cybersecurity Product Line Performance Market Insights Customer Wins
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 8 FY’27 Outlook & Summary Focused on Profitable Growth, Healthy Free Cash Flow & Shareholder Value Pursuing Opportunities Across AI, Observability, and DDoS While Navigating the Dynamic Macro Environment Reaffirming FY’27 Outlook
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 9 CFO Financial Review Q1 FY’27 Results Tony Piazza Executive Vice President & Chief Financial Officer NETSCOUT PUBLIC
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 10 $M (except EPS & % data) Q1 FY'26 Q1 FY'27 Y/Y Change Revenue $186.7 $210.4 12.7% Product Revenue $73.0 $86.0 17.8% Service Revenue $113.8 $124.4 9.4% Gross Profit Margin 78.7% 80.6% Operating Margin 14.2% 20.8% Net Income $24.7 $38.6 55.9% Diluted Net Income per Share $0.34 $0.52 52.9% Diluted Shares Outstanding 73.4 74.6 Q1 FY’27 Results (GAAP revenue, other metrics non-GAAP) NETSCOUT PUBLIC Note: Revenue and Diluted Shares Outstanding are GAAP measures. All other amounts are non-GAAP measures. See the slide entitled “Non-GAAP Financial Metrics” near the beginning of this presentation for a description of the non-GAAP financial measures and to the appendix for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures. Figures in charts and tables may not total due to rounding.
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 11 $118.3 63% $141.6 67% $68.4 37% $68.8 33% $186.7 $210.4 Q1 FY'26 Q1 FY'27 Revenue by Product Line Service Assurance Cybersecurity $76.0 41% $78.4 37% $110.8 59% $132.0 63% $186.7 $210.4 Q1 FY'26 Q1 FY'27 Revenue by Customer Vertical Service Provider Enterprise Q1 FY’27 Revenue Trends: Product Lines & Customer Verticals NETSCOUT PUBLIC Note: In $M except % data. Revenue is a GAAP measure. Figures in charts and tables may not total due to rounding. SA +19.7% Cyber +0.6% Total +12.7% ENT +19.1% SP +3.3% Total +12.7%
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 12 $M Q1 FY'26 Q1 FY'27 Y/Y Change Revenue $186.7 $210.4 12.7% United States $100.5 $124.8 24.1% International $86.2 $85.7 (0.7%) Europe $30.7 $36.0 17.1% Asia $15.1 $13.6 (9.8%) Rest of World $40.5 $36.1 (10.8%) 54% 16% 8% 22%46% Q1 FY'26 59% 17% 6% 17%41% Q1 FY'27 UNITED STATES INTERNATIONAL EUROPE ASIA REST OF WORLD Q1 FY’27 Revenue Trends: Geographic Mix NETSCOUT PUBLIC Note: In $M except % data. Revenue is a GAAP measure. Figures in charts and tables may not total due to rounding.
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 13 Balance Sheet & Free Cash Flow Review NETSCOUT PUBLIC Note: See the slide entitled “Non-GAAP Financial Metrics” near the beginning of this presentation for a description of the non-GAAP financial measures and to the appendix for information regarding the Financial Profile and Free Cash Flow calculations and for the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures. Figures in charts and tables may not total due to rounding. 6/30/2026 Total Liquidity ($M) 1,268.5$ Liquidity to Adjusted EBITDA 4.8x Financial Profile (Non-GAAP) $M (GAAP, Unaudited) 6/30/2026 Cash and Securities 668.5$ Accounts Receivable, Net 80.0$ Inventories 20.9$ Total Long-Term Debt -$ Total Deferred Revenue 472.3$ Total Stockholders' Equity 1,663.0$
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 14 FY’27 Outlook NETSCOUT PUBLIC See the slide entitled “Non-GAAP Financial Metrics” near the beginning of this presentation for a description of the non-GAAP finance measures and the appendix for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures. FY’27 Outlook Assumptions • Anticipate annual tax rate of approximately 20% • Anticipate approximately 74 to 75 million weighted average diluted shares outstanding
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 15 Upcoming Investor Events Annual Needham Technology, Media, & Consumer ConferenceB. Riley Securities Consumer & TMT Conference Date: Sept 10, 2026 | Location: Times Square, NY
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 16 Appendix NETSCOUT PUBLIC
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 17 $M (except EPS & % data) Q1 FY'26 Q1 FY'27 Revenue: 186.7$ 210.4$ 12.7% Product Revenue 73.0$ 86.0$ 17.8% Service Revenue 113.8$ 124.4$ 9.4% Cost of Revenue 43.4$ 44.5$ 2.5% Gross Profit 143.3$ 165.9$ 15.8% Gross Profit Margin 76.7% 78.9% Operating Expenses 149.9$ 151.5$ 1.0% Income (loss) from Operations (6.6)$ 14.5$ 320.6% Income (loss) from Operations Margin (3.5%) 6.9% Net Income (loss) (3.7)$ 21.8$ 693.5% Diluted Net Income (loss) per Share (0.05)$ 0.29$ 680.0% Diluted Shares Outstanding 71.7 74.6 Y/Y Change Q1 FY’27 Results GAAP NETSCOUT PUBLIC * Figures in charts and tables may not total due to rounding.
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 18 $M (except EPS & % data) Q1 FY'26 Q1 FY'27 Revenue: 186.7$ 210.4$ 12.7% Product Revenue 73.0$ 86.0$ 17.8% Service Revenue 113.8$ 124.4$ 9.4% Cost of Revenue 39.7$ 40.7$ 2.6% Gross Profit 147.0$ 169.7$ 15.4% Gross Profit Margin 78.7% 80.6% Operating Expenses 120.5$ 126.0$ 4.6% Income from Operations 26.6$ 43.7$ 64.6% Income from Operations Margin 14.2% 20.8% Net Income 24.7$ 38.6$ 55.9% Diluted Net Income per Share 0.34$ 0.52$ 52.9% Diluted Shares Outstanding 73.4 74.6 Y/Y ChangeNETSCOUT PUBLIC Note: Revenue and Diluted Shares Outstanding are GAAP measures. All other amounts are non-GAAP financial measures. See the slide entitled “Non-GAAP Financial Metrics” near the beginning of this presentation for a description of the non-GAAP finance measures and the additional slides in the appendix for a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures. Figures in charts and tables may not total due to rounding. Q1 FY’27 Results (GAAP revenue, other metrics non-GAAP)
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 19 NETSCOUT PUBLIC Note: See the slide entitled “Non-GAAP Financial Metrics” near the beginning of this presentation for a description of the non-GAAP financial measures. Figures in charts and tables may not total due to rounding. See footnotes on the following slide. Q1 FY’27 GAAP to Non-GAAP Reconciliation Q4 Ending 3/31 $Thousands (except EPS) 2026 2025 2026 Revenue (GAAP) 210,423$ 186,747$ 203,035$ Gross profit (GAAP) 165,933$ 143,325$ 159,108$ Share-based compensation expense (1) 3,117 3,160 2,176 Amortization of acquired intangible assets (2) 642 550 550 Acquisition related depreciation expense (3) — 2 2 Non-GAAP gross profit 169,692 147,037 161,836 Non-GAAP Gross Margin 80.6% 78.7% 79.7% Income (loss) from operations (GAAP) 14,478$ (6,564)$ 19,588$ GAAP operating margin 6.9% -3.5% 9.6% Share-based compensation expense (1) 17,965 19,959 12,599 Amortization of acquired intangible assets (2) 11,252 11,669 11,715 Restructuring charges 25 529 25 Acquisition related depreciation expense (3) — 12 12 Executive transition costs (4) — 959 — Non-GAAP income from operations 43,720$ 26,564$ 43,939$ Non-GAAP operating margin 20.8% 14.2% 21.6% Net income (loss) (GAAP) 21,836$ (3,679)$ 18,240$ Share-based compensation expense (1) 17,965 19,959 12,599 Amortization of acquired intangible assets (2) 11,252 11,669 11,715 Restructuring charges 25 529 25 Acquisition related depreciation expense (3) — 12 12 Executive transition costs (4) — 959 — Income tax adjustments (5) (12,517) (4,712) (4,116) Non-GAAP net income 38,561$ 24,737$ 38,475$ Diluted net income (loss) per share (GAAP) 0.29$ (0.05)$ 0.25$ Share impact of non-GAAP adjustments identified above 0.23$ 0.39$ 0.27$ Non-GAAP diluted net income per share 0.52$ 0.34$ 0.52$ Shares used in computing non-GAAP diluted net income per share 74,597 73,376 74,171 Q1 Ending 6/30
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 20 NETSCOUT PUBLIC Note: See the slide entitled “Non-GAAP Financial Metrics” near the beginning of this presentation for a description of the non-GAAP financial measures. Figures in charts and tables may not total due to rounding. Q1 FY’27 GAAP to Non-GAAP Reconciliation Q4 Ending 3/31 2026 2025 2026 (1) Share-based compensation expense included in these amounts is as follows: Cost of product revenue 403$ 413$ 275$ Cost of service revenue 2,714 2,747 1,901 Research and development 5,310 5,532 3,843 Sales and marketing 6,242 6,889 4,412 General and administrative 3,296 4,378 2,168 Total share-based compensation expense 17,965$ 19,959$ 12,599$ (2) Amortization expense related to acquired software and product technology, tradenames, customer relationships included in these amounts is as follows: Cost of product revenue 372$ 550$ 550$ Cost of service revenue 270 — — Operating expenses 10,610 11,119 11,165 Total amortization expense 11,252$ 11,669$ 11,715$ (3) Acquisition related depreciation expense included in these amounts is as follows: Cost of product revenue — 2$ 2$ Research and development — 8 8 Sales and marketing — 2 2 Total acquisition related depreciation expense — 12$ 12$ (4) Executive transition costs included in these amounts is as follows: General and administrative — 959 — Total executive transition costs — 959$ — (5) Total income tax adjustment included in this amount is as follows: Tax effect of non-GAAP adjustments above (12,517) (4,712) (4,416) Total income tax adjustments (12,517)$ (4,712)$ (4,416)$ Q1 Ending 6/30
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 21 NETSCOUT PUBLIC Business development & integration expenses include acquisition-related depreciation expense. Net income per share (diluted) equates to earnings per share (EPS) described elsewhere in this presentation. Note: please see the slide entitled “Non-GAAP Financial Metrics” near the beginning of this presentation for a description of the non-GAAP financial measures. Figures may not foot due to rounding. FY’27 Outlook: GAAP to Non-GAAP Reconciliation $M (except EPS) FY'26 FY'27 GAAP revenue 859.5$ $885 to $915 FY'26 FY'27 GAAP net income (loss) 95.5$ ~$115 to ~$126 Amortization of intangible assets 46.8$ ~$46 Share-based compensation expenses 59.9$ ~$55 Business development & integration expenses* -$ ~Less than $1 Executive Transition Costs 1.0$ - Restructuring charges 0.9$ - Total adjustments 108.6$ ~$102 Related impact of adjustments on income tax (22.1)$ (~$20) Non-GAAP net income 182.0$ ~$197 to ~$208 GAAP net income (loss) per share (diluted) 1.30$ $1.55 to $1.70 Non-GAAP net income per share (diluted) 2.48$ $2.65 to $2.80 Average weighted shares outstanding (diluted GAAP) 73.4$ ~74 to ~75 Average weighted shares outstanding (diluted Non-GAAP) 73.4$ ~74 to ~75
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COPYRIGHT © 2026 NETSCOUT SYSTEMS, INC. | 22 NETSCOUT PUBLIC Note: See the slide entitled “Non-GAAP Financial Metrics” near the beginning of this presentation for a description of the non-GAAP financial measures. Figures in charts and tables may not total due to rounding. Additional Information & Cash Flow $M Non-GAAP Free Cash Flow Reconciliation to GAAP Q1 FY'27 Operating Cash Flow 50.8$ Purchase of Fixed & Intangible Assets & Capitalized Software (6.4)$ Non-GAAP Free Cash Flow 44.3$ Q1 FY'27 Operating Cash Flow 50.8$ Cash from Investing Activities (57.8)$ Cash from from Financing Activities (25.3)$ Effects of Exchange Rate Changes on Cash and Cash Equivalents (1.3)$ Net Change in Cash and Cash Equivalents (33.6)$ • Cash and securities defined as cash, cash equivalents, short- and long-term marketable securities, and investments. • The Company’s adjusted EBITDA as calculated in its press release may differ from the 12-month trailing consolidated EBITDA as defined within the Company’s Third Amended and Restated Credit Agreement. • Liquidity calculated as available credit under the Company’s Third Amended and Restated Credit Agreement plus cash and securities.
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