Provider of application and network performance management products
NETSCOUT Systems, Inc. (stylized as NETSCOUT) is an American technology company that specializes in software observability, deep packet inspection, DDoS mitigation and AIOps. Headquartered in Westford, Massachusetts, the company was founded in 1984 by Anil Singhal and Narendra Popat, originally under the name Frontier Software. In July 2015, NetScout acquired the communications business of Danaher Corporation, including Arbor Networks, Fluke Networks, Tektronix Communications and VSS Monitoring.3 Its shares trade on Nasdaq under the symbol NTCT.1Wikipedia text CC BY-SA 4.0
NETSCOUT Systems, Inc. (stylized as NETSCOUT) is an American technology company that specializes in software observability, deep packet inspection, DDoS mitigation and AIOps. Headquartered in Westford, Massachusetts, the company was founded in 1984 by Anil Singhal and Narendra Popat, originally under the name Frontier Software.3
Financials
From the company’s reports to the SEC. Every number links to the filing it came from.
Revenue10111213146$859.5M in 2026−6% since 2019Gross profit10111213146$682.5M in 2026+4% since 2019Operating income10111213146$109.8M in 2026Net income10111213146$95.5M in 2026
Revenue151617$210.4M in Q1 FY2026−4% since Q2 FY2025Gross profit151617$165.9M in Q1 FY2026−5% since Q2 FY2025Operating income151617$14.5M in Q1 FY2026−55% since Q2 FY2025Net income151617$21.8M in Q1 FY2026−15% since Q2 FY2025
Every line of the income statement as filed: the last 3 fiscal years, latest first.6
Period ending
2026-03-31
2025-03-31
2024-03-31
Total revenue
$859.5M
$822.7M
$829.5M
Total cost of revenue
$177.0M
$178.7M
$187.4M
Gross profit
$682.5M
$643.9M
$642.0M
Research and development
$159.5M
$152.9M
$161.2M
Sales and marketing
$264.5M
$268.1M
$271.0M
General and administrative
$103.2M
$96.7M
$95.9M
Amortization of acquired intangible assets
$44.6M
$46.4M
$50.3M
Restructuring charges
$883.0K
$20.5M
$0
Goodwill impairment
$0
$427.0M
$217.3M
Gain on divestiture of a business
$0
$0
-$3.8M
Total operating expenses
$572.7M
$1.0B
$791.9M
Income (loss) from operations
$109.8M
-$367.6M
-$149.8M
Interest income
$13.8M
$10.7M
$9.6M
Interest expense
-$1.7M
-$7.2M
-$8.7M
Other (expense) income, net
-$3.4M
-$1.8M
$4.4M
Total interest and other income, net
$8.7M
$1.8M
$5.3M
Income (loss) before income tax expense
$118.5M
-$365.8M
-$144.5M
Income tax expense
$23.0M
$1.1M
$3.2M
Net income (loss)
$95.5M
-$366.9M
-$147.7M
Basic net income (loss) per share
$1.33
-$5.12
-$2.07
Diluted net income (loss) per share
$1.30
-$5.12
-$2.07
Net income (loss) per share-basic
72.0M shares
71.6M shares
71.5M shares
Net income (loss) per share-diluted
73.4M shares
71.6M shares
71.5M shares
No quarter-by-quarter statement was filed.
Total assets1810111213146$2.4B in 2026−28% since 2019Total liabilities1810111213146$705.3M in 2026−41% since 2019Shareholders’ equity111213146$1.6B in 2026−20% since 2019Cash111213146$586.5M in 2026+43% since 2019Long-term debt181011121314$0 in 2025
Total assets151617$2.3B in Q1 FY2026+6% since Q2 FY2025Total liabilities151617$647.8M in Q1 FY2026+7% since Q2 FY2025Shareholders’ equity151617$1.7B in Q1 FY2026+6% since Q2 FY2025Cash151617$552.8M in Q1 FY2026+14% since Q2 FY2025
Every line of the balance sheet as filed: the last 4 fiscal years (annual) or 4 quarters (quarterly), latest first.6
Period ending
2026-03-31
2025-03-31
2024-03-31
2023-03-31
Cash and cash equivalents
$586.5M
$457.4M
Marketable securities
$81.5M
$34.1M
Accounts receivable and unbilled costs, net of allowance for doubtful accounts of $129 and $214 at March 31, 2026 and 2025, respectively
$151.5M
$163.7M
Inventories and deferred costs
$13.3M
$12.9M
Prepaid income taxes
$6.2M
$13.4M
Prepaid expenses and other current assets
$29.0M
$31.8M
Total current assets
$867.9M
$713.2M
Fixed assets, net
$23.6M
$21.5M
Operating lease right-of-use assets
$35.6M
$37.7M
Goodwill
$1.1B
$1.1B
$1.5B
Intangible assets, net
$214.3M
$258.7M
Deferred income taxes
$93.7M
$66.3M
Long-term marketable securities
$37.2M
$1.0M
Other assets
$11.7M
$11.8M
Total assets
$2.4B
$2.2B
Accounts payable
$23.5M
$18.2M
Accrued compensation
$84.5M
$56.7M
Accrued other
$20.0M
$19.4M
Income taxes payable
$1.7M
$883.0K
Deferred revenue and customer deposits
$330.6M
$301.8M
Current portion of operating lease liabilities
$9.9M
$11.0M
Total current liabilities
$470.1M
$407.9M
Other long-term liabilities
$6.6M
$8.2M
Deferred tax liability
$2.2M
$2.6M
Accrued long-term retirement benefits
$28.3M
$27.4M
Long-term deferred revenue and customer deposits
$168.3M
$147.5M
Operating lease liabilities, net of current portion
$29.7M
$32.5M
Total liabilities
$705.3M
$626.2M
Preferred stock, $0.001 par value: 5,000,000 authorized; none issued or outstanding
$0
$0
Common stock, $0.001 par value: 300,000,000 authorized; 136,628,693 and 134,038,262 issued and 71,464,664 and 72,060,237 outstanding
$136.0K
$134.0K
Additional paid-in capital
$3.3B
$3.3B
Accumulated other comprehensive income
$4.0M
$4.1M
Treasury stock at cost, 65,164,029 and 61,978,025
-$1.7B
-$1.7B
Retained earnings (Accumulated deficit)
$51.1M
-$44.4M
Total stockholders equity
$1.6B
$1.6B
$1.9B
$2.0B
Total liabilities and stockholders equity
$2.4B
$2.2B
Accounts receivable, allowance for doubtful accounts
$129.0K
$214.0K
Preferred stock, par value (in dollars per share)
$0.00
$0.00
Preferred stock, shares authorized (in shares)
5.0M shares
5.0M shares
Preferred stock, shares issued (in shares)
0 shares
0 shares
Preferred stock, shares outstanding (in shares)
0 shares
0 shares
Common stock, par value (in dollars per share)
$0.00
$0.00
Common stock, shares authorized (in shares)
300.0M shares
300.0M shares
Common stock, shares issued (in shares)
136.6M shares
134.0M shares
Common stock, shares outstanding (in shares)
72.1M shares
71.5M shares
Treasury stock, shares (in shares)
65.2M shares
62.0M shares
Period ending
2026-03-31
2025-03-31
2024-03-31
2023-03-31
Cash and cash equivalents
$586.5M
$457.4M
Marketable securities
$81.5M
$34.1M
Accounts receivable and unbilled costs, net of allowance for doubtful accounts of $129 and $214 at March 31, 2026 and 2025, respectively
$151.5M
$163.7M
Inventories and deferred costs
$13.3M
$12.9M
Prepaid income taxes
$6.2M
$13.4M
Prepaid expenses and other current assets
$29.0M
$31.8M
Total current assets
$867.9M
$713.2M
Fixed assets, net
$23.6M
$21.5M
Operating lease right-of-use assets
$35.6M
$37.7M
Goodwill
$1.1B
$1.1B
$1.5B
Intangible assets, net
$214.3M
$258.7M
Deferred income taxes
$93.7M
$66.3M
Long-term marketable securities
$37.2M
$1.0M
Other assets
$11.7M
$11.8M
Total assets
$2.4B
$2.2B
Accounts payable
$23.5M
$18.2M
Accrued compensation
$84.5M
$56.7M
Accrued other
$20.0M
$19.4M
Income taxes payable
$1.7M
$883.0K
Deferred revenue and customer deposits
$330.6M
$301.8M
Current portion of operating lease liabilities
$9.9M
$11.0M
Total current liabilities
$470.1M
$407.9M
Other long-term liabilities
$6.6M
$8.2M
Deferred tax liability
$2.2M
$2.6M
Accrued long-term retirement benefits
$28.3M
$27.4M
Long-term deferred revenue and customer deposits
$168.3M
$147.5M
Operating lease liabilities, net of current portion
$29.7M
$32.5M
Total liabilities
$705.3M
$626.2M
Preferred stock, $0.001 par value: 5,000,000 authorized; none issued or outstanding
$0
$0
Common stock, $0.001 par value: 300,000,000 authorized; 136,628,693 and 134,038,262 issued and 71,464,664 and 72,060,237 outstanding
$136.0K
$134.0K
Additional paid-in capital
$3.3B
$3.3B
Accumulated other comprehensive income
$4.0M
$4.1M
Treasury stock at cost, 65,164,029 and 61,978,025
-$1.7B
-$1.7B
Retained earnings (Accumulated deficit)
$51.1M
-$44.4M
Total stockholders equity
$1.6B
$1.6B
$1.9B
$2.0B
Total liabilities and stockholders equity
$2.4B
$2.2B
Accounts receivable, allowance for doubtful accounts
$129.0K
$214.0K
Preferred stock, par value (in dollars per share)
$0.00
$0.00
Preferred stock, shares authorized (in shares)
5.0M shares
5.0M shares
Preferred stock, shares issued (in shares)
0 shares
0 shares
Preferred stock, shares outstanding (in shares)
0 shares
0 shares
Common stock, par value (in dollars per share)
$0.00
$0.00
Common stock, shares authorized (in shares)
300.0M shares
300.0M shares
Common stock, shares issued (in shares)
136.6M shares
134.0M shares
Common stock, shares outstanding (in shares)
72.1M shares
71.5M shares
Treasury stock, shares (in shares)
65.2M shares
62.0M shares
Cash from operations10111213146$294.5M in 2026+97% since 2019Capital spending10111213146$9.1M in 2026−61% since 2019Free cash flow10111213146$285.4M in 2026+126% since 2019Share buybacks10111213146$60.8M in 2026+320% since 2019
Cash flow is reported year to date, not quarter by quarter, so there are no separate quarterly figures.
Every line of the cash flow as filed: the last 3 fiscal years, latest first.6
Period ending
2026-03-31
2025-03-31
2024-03-31
Net Income (Loss)
$95.5M
-$366.9M
-$147.7M
Depreciation and amortization
$56.5M
$63.8M
$75.0M
Loss on extinguishment of debt (non cash portion)
$0
$1.1M
$0
Operating lease right-of-use assets
$9.8M
$10.4M
$10.5M
Gain on divestiture of a business
$0
$0
-$3.8M
Loss on disposal of fixed assets
$23.0K
$15.0K
$303.0K
Share-based compensation expense associated with equity awards
$59.9M
$64.8M
$70.8M
Change in fair value of derivative instrument
$0
$0
-$206.0K
Goodwill impairment
$0
$427.0M
$217.3M
Deferred income taxes
-$28.1M
-$37.6M
-$45.9M
Loss (gain) in equity investment
$988.0K
-$393.0K
-$5.5M
Other gains (losses)
$15.0K
-$9.0K
-$1.0K
Accounts receivable and unbilled costs
$12.4M
$28.7M
-$48.4M
Inventories
-$2.2M
$128.0K
$609.0K
Prepaid expenses and other assets
$10.9M
-$2.3M
-$5.8M
Accounts payable
$4.7M
$3.2M
-$1.9M
Accrued compensation and other expenses
$35.1M
$20.5M
-$33.7M
Operating lease liabilities
-$11.6M
-$12.2M
-$12.0M
Income taxes payable
$1.2M
$83.0K
-$3.6M
Deferred revenue
$49.2M
$17.3M
-$7.2M
Net cash provided by operating activities
$294.5M
$217.7M
$58.8M
Purchase of marketable securities
-$163.4M
-$45.1M
-$52.8M
Proceeds from maturity of marketable securities
$67.9M
$44.8M
$64.7M
Purchase of fixed assets
-$9.1M
-$5.4M
-$6.4M
Purchase of intangible assets
$0
-$1.3M
$0
Proceeds from sale of equity investment
$11.8M
$0
$0
Proceeds from divestiture of a business
$0
$0
$7.8M
Net cash (used in) provided by investing activities
-$92.8M
-$7.0M
$13.4M
Issuance of common stock under stock plans
$2.0K
$3.0K
$3.0K
Treasury stock repurchases
-$60.8M
-$25.3M
-$50.0M
Tax withholding on restricted stock units
-$15.9M
-$14.0M
-$19.4M
Payment of debt issuance costs
$0
-$2.8M
$0
Repayment of long-term debt
$0
-$175.0M
$0
Proceeds from issuance of long-term debt
$0
$75.0M
$0
Net cash used in financing activities
-$76.7M
-$142.0M
-$69.4M
Effect of exchange rate changes on cash and cash equivalents
$4.1M
-$922.0K
$63.0K
Net increase in cash and cash equivalents
$129.1M
$67.7M
$2.9M
Cash paid for interest
$0
$4.2M
$6.4M
Cash paid for income taxes
$42.7M
$41.8M
$62.3M
Transfers of inventory to fixed assets
$1.9M
$1.0M
$1.8M
Additions to property, plant and equipment included in accounts payable
$1.3M
$461.0K
$158.0K
Issuance of common stock under employee stock plans
$12.2M
$11.4M
$13.7M
Stock-based compensation included in fixed assets and other assets
NetScout Systems sits at the top of its group. 52 entities, 23 countries on record. Switch between the flow chart and the network, and select any entity to see its details.
NetScout Network Systems GmbH Subsidiary · Germany
NetScout Padova S.r.l. Subsidiary · Italy
NetScout Systems (HK) Limited Subsidiary · China
NetScout Systems (UK) Limited Subsidiary · United Kingdom
NetScout Systems Argentina SAU Subsidiary · Argentina
NetScout Systems Canada Corp. Subsidiary · Canada
NetScout Systems Federal Corp. Subsidiary · Delaware, United States
NetScout Systems Germany GmbH Subsidiary · Germany
NetScout Systems India Pte Ltd Subsidiary · India
NetScout Systems Industrial Private Limited Subsidiary · India
NetScout Systems Italy S.r.l. Subsidiary · Italy
NetScout Systems Japan KK Subsidiary · Japan
NetScout Systems Norway AS Subsidiary · Norway
NetScout Systems Security Corporation Subsidiary · Massachusetts, United States
and 26 more
Built from parent and subsidiary links from GLEIF, the Global Legal Entity Identifier Foundation (CC0); subsidiaries listed in Exhibit 21 of annual reports filed with the SEC; major holders from Schedules 13D and 13G. Each entity in the chart links to its source.
What it owns
What NetScout Systems reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.
Our headquarters and our U.S. manufacturing are located in Westford, MA, in approximately 175,000 square feet of space under a lease expiring in September 2030. As of March 31, 2026, we leased 18 facilities in 10 countries of approximately 600,000 square feet of office and warehousing space and other related facilities, primarily in the United States, Europe and India. Additional information regarding our leases is provided in Note 18 to the consolidated financial statements included in Item 8 of this Form 10-K.
NetScout Systems was founded by Anil Singhal and Narendra Popat as Frontier Software in 1984. NetScout created the first RMON-based Ethernet Probe in 1992.
In November 2007, NetScout acquired the Sniffer, Infinistream, and Network Intelligence product lines of Network General. NetScout merged both product lines to allow their Performance Manager product to use both probes and Infinistream technologies.
In April 2011, NetScout acquired voice and video management company, Psytechnics, from Ipswich, United Kingdom It then acquired Fox Replay from the Dutch company Fox-IT, and later that year, after many years of partnering and complementing solutions for network switch port aggregation, NetScout moved directly into competition with its partners by acquiring privately held Simena Networks.
In October 2014, NetScout Systems announced it had entered into a definitive agreement to acquire the Communications business of science and technology company Danaher Corporation for about $2.6 billion. Upon completion of the merger, Danaher's shareholders would own nearly 59.5 percent of the combined company, and NetScout shareholders would own the remaining stake. Analyst firm 451 Research, a technology-industry syndicated research and data firm, predicted in May 2015 that with the acquisition, NetScout will be the largest company in the network visibility management space, with "more than 3,000 employees and well over $1bn a year in revenue".
In July 2015, NetScout finalized its acquisition of the communications business of Danaher Corporation, including Arbor Networks (security systems), Fluke Networks (RF and Wi-Fi network troubleshooting and analytics), Tektronix Communications (traffic inspection, customer experience management and analytics) and VSS Monitoring (network packet brokers). In a prepared statement, the company noted that the acquisition "accelerates NetScout's strategic progress by enabling the company to offer [...] innovative service assurance and cyber security solutions" and adds new employees to NetScout.
The subsidiaries the company lists in Exhibit 21 of its annual report, as filed.
Acquisitions
NetScout Systems acquired Network General in 2007. Network General developed the original network packet sniffer (The Sniffer) in 1986; it merged with McAfee Associates in 1997 to form Network Associates. In mid-2004, Network Associates sold off the Sniffer Technologies business to Silver Lake Partners and Texas Pacific Group for $275 million in cash to form Network General. In early 2006, Network General acquired Fidelia Technology, adding the NetVigil Business Service Monitoring technology to its network and application performance analysis tools. In September 2007, Network General agreed to be acquired by NetScout Systems for $205 million.
Jan 30, 2025Reported quarterly or annual results60
Oct 24, 2024Reported quarterly or annual results61
Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar
Filings
385 filings to the SEC since October 2021: 5 annual reports, 15 quarterly reports, 32 major events, 225 insider forms, 31 large holders, 77 other. The latest 20:
66 open-market trades by officers, directors and large owners since October 2021: 0 buys and 66 sales. Grants, option exercises and gifts are left out.
What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.
The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 100. Change is in shares since the quarter before.
From the cover page of the 10-K filed May 14, 2026 (Section 12(b) of the Exchange Act).19
Risk factors and legal proceedings
The risks NetScout Systems names in Item 1A of its 10-K filed May 14, 2026: 33 risks under these headings, as written.19
Risks Related to Our Business and Industry
Unfavorable and uncertain conditions in our industry, our customers' industries, the global economy, or reductions in information technology spending could limit our ability to grow or maintain our business and negatively affect our results of operations.
Potential product vulnerabilities or critical security defects, prioritization decisions regarding remedying vulnerabilities or security defects, or customers not deploying security releases or deciding not to upgrade products, services, or solutions could result in claims of liability against us, damage our reputation, or otherwise harm our business.
If our products contain material errors or quality issues, such issues may be costly to correct, revenue may be delayed, we could be sued, and our reputation could be harmed.
If our information technology systems, or those of third parties with whom we work, or our data are or were compromised, we could experience adverse consequences resulting from such compromise, including but not limited to regulatory investigations or actions; litigation; fines and penalties; disruptions of our business operations; reputational harm; loss of revenue or profits; and other adverse consequences.
If we fail to introduce new products and solutions or enhance our existing products and solutions to keep up with rapid technological change, demand for our products and solutions may decline.
If we are unable to effectively use or integrate AI, or if our use of AI exposes us to significant risks, we may not achieve intended benefits and our results of operations could be adversely affected.
Disruptions in our global supply chain and our reliance on sole or limited source suppliers could adversely impact our business.
A portion of our revenue is generated by sales to government entities, which are subject to a number of challenges and risks.
Increased customer demands on our technical support services may adversely affect our relationships with our customers and our financial results.
The success of our business depends, in part, on the continued growth in the market for and the continued commercial demand for enterprise network observability, carrier service assurance, cybersecurity, and DDoS protection solutions.
Failure to manage growth properly and to implement enhanced automated systems, including systems with AI, could adversely impact our business.
The other 22 risks
Our success depends, in part, on our ability to manage and leverage our distribution channels. Disruptions to, or our failure to effectively develop and manage, these partners and the processes and procedures that support them could adversely affect our ability to generate revenues from the sale of our products and services. Managing these distribution channels and relationships requires experienced personnel, and lack of sufficient expertise could lead to a decrease in sales of our products and services, which could cause our operating results to suffer.
International trade policies, including trade protection measures such as tariffs, sanctions, and trade barriers may adversely affect our business, financial condition, results of operations, and prospects.
Our business and operations, and the operations of our customers, partners, and/or suppliers, may be adversely affected by significant business continuity events.
Risks Related to Our Intellectual Property
Necessary licenses for third-party technology may not be available to us on commercially reasonable terms or at all.
Our success depends on our ability to protect our intellectual property rights.
Others may claim that we infringe on their intellectual property rights.
Risks Related to Our Liquidity and Financial Condition
Any current or future indebtedness may limit our operations and our use of our cash flow, and any failure to comply with the covenants that apply to any indebtedness could adversely affect our liquidity and financial condition.
Any failure to meet our debt obligations could damage our business.
We may fail to secure necessary additional financing.
Other Risks Related to Our Business
The failure to recruit and retain qualified personnel and plan for and manage the succession of key executives could hinder our ability to successfully manage our business, which could have a material adverse effect on our financial position and operating results.
We may not successfully complete acquisitions or integrate acquisitions we do make, which could impair our ability to compete and could harm our operating results.
We face significant competition from other technology companies.
Uncertainties in the regulation of the Internet could have a material and adverse impact on our financial condition and results of operations.
We are subject to stringent and evolving U.S. state, local, and federal, and foreign laws, regulations, and rules, contractual obligations, industry standards, policies, and other obligations related to data privacy and security. Our actual or perceived failure to comply with such obligations (or such failure by third parties with whom we work) could lead to regulatory investigations or actions; litigation; fines and penalties; disruptions of our business, results of operations; reputational harm; loss of revenue or profits; and other adverse business consequences.
If we violate the U.S. Foreign Corrupt Practices Act or applicable anti-bribery laws in other countries, or if we fail to comply with U.S. export controls and government contracting laws, our business could be harmed.
General Risk Factors
Our actual operating results may differ significantly from our guidance.
Our effective tax rate may fluctuate, which could increase our income tax expense and reduce our net income.
We may be impacted by changes in taxation, trade, tariffs, and other regulatory requirements.
Foreign currency exchange rates may adversely affect our financial statements.
Our estimates and judgments related to critical accounting policies could be inaccurate.
If we fail to maintain effective disclosure controls and procedures and internal control over financial reporting, investor confidence in our financial statements could decline, which could negatively impact the market price of our stock or our ability to raise capital.
Our stock price has been subject to fluctuations, and will likely continue to be subject to fluctuations, which may be volatile and due to factors beyond our control.
Legal proceedings
From time to time, we may be subject to legal proceedings and claims in the ordinary course of business. In the opinion of management, the amount of ultimate expense with respect to any current legal proceedings and claims, if determined adversely, will not have a material adverse effect on our financial condition, results of operations or cash flows.
For additional information regarding our legal proceedings, if any, refer to Note 19, Commitments and Contingencies to the Consolidated Financial Statements included in Part IV, Item 15 of this report.
