$NTCT

NETSCOUT SYSTEMS INC

CIK:0001078075|SEC Filings

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Revenue:
Total revenue	$ 210,423	$ 186,747
Cost of revenue:
Total cost of revenue	44,490	43,422
Gross profit	165,933	143,325
Operating expenses:
Research and development	42,354	39,789
Sales and marketing	72,751	70,595
General and administrative	25,716	27,857
Amortization of acquired intangible assets	10,610	11,119
Restructuring charges	25	529
Total operating expenses	151,456	149,889
Income (loss) from operations	14,477	(6,564)
Interest and other income, net:
Interest income	4,329	3,211
Interest expense	(431)	(415)
Other income, net	583	940
Total interest and other income, net	4,481	3,736
Income (loss) before income tax (benefit) expense	18,958	(2,828)
Income tax (benefit) expense	(2,877)	851
Net income (loss)	$ 21,835	$ (3,679)
Basic net income (loss) per share	$ 0.3	$ (0.05)
Diluted net income (loss) per share	$ 0.29	$ (0.05)
Weighted average common shares outstanding used in computing:
Net income (loss) per share-basic	71,812	71,729
Net income (loss) per share-diluted	74,597	71,729
Product
Revenue:
Total revenue	$ 86,006	$ 72,993
Cost of revenue:
Total cost of revenue	9,672	11,925
Service
Revenue:
Total revenue	124,417	113,754
Cost of revenue:
Total cost of revenue	$ 34,818	$ 31,497

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net Income (Loss)	$ 21,835	$ (3,679)
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation and amortization	14,438	14,457
Operating lease right-of-use assets	2,422	2,497
Loss on disposal of fixed assets	4	5
Accretion of discounts on marketable securities	(515)	0
Share-based compensation expense	17,965	19,959
Deferred income taxes	(4,221)	(6,432)
Gain on equity investment	0	(2,501)
Unrealized foreign exchange losses	367	0
Realized (gains) losses on derivatives	(21)	11
Changes in assets and liabilities
Accounts receivable and unbilled costs	79,016	71,804
Inventories and deferred costs	(7,614)	(1,053)
Prepaid expenses and other assets	(6,500)	(1,183)
Accounts payable	301	(3,752)
Accrued compensation and other expenses	(31,705)	(10,116)
Operating lease liabilities	(2,507)	(2,974)
Income taxes payable	(932)	492
Deferred revenue	(31,563)	(3,983)
Net cash provided by operating activities	50,770	73,552
Cash flows from investing activities:
Purchase of marketable securities and investments	(20,161)	(29,031)
Proceeds from sales and maturities of marketable securities	23,750	13,618
Purchase of fixed assets	(3,491)	(1,878)
Acquisition of business	(55,000)	0
Capitalized software development costs	(2,948)	0
Net cash used in investing activities	(57,850)	(17,291)
Cash flows from financing activities:
Issuance of common stock under stock plans	2	1
Treasury stock repurchases	0	(15,014)
Tax withholding on restricted stock units	(25,336)	(13,765)
Net cash used in financing activities	(25,334)	(28,778)
Effect of exchange rate changes on cash and cash equivalents	(1,257)	4,674
Net (decrease) increase in cash and cash equivalents	(33,671)	32,157
Cash and cash equivalents, beginning of period	586,499	457,415
Cash and cash equivalents, end of period	552,828	489,572
Supplemental disclosures:
Cash paid for income taxes	12,215	8,530
Non-cash transactions:
Transfers of inventory to fixed assets	492	476
Additions to property, plant and equipment included in accounts payable	203	457
Stock-based compensation included in fixed assets and other assets	$ 490	$ 0

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Mar. 31, 2026
Current assets:
Cash and cash equivalents	$ 552,828	$ 586,499
Marketable securities	76,583	81,458
Accounts receivable and unbilled costs, net of allowance for doubtful accounts of $80 and $129 at June 30, 2026 and March 31, 2026, respectively	79,966	151,473
Inventories and deferred costs	20,909	13,321
Prepaid income taxes	16,095	6,159
Prepaid expenses and other current assets	25,877	28,972
Total current assets	772,258	867,882
Fixed assets, net	26,158	23,558
Operating lease right-of-use assets	36,026	35,553
Goodwill	1,096,593	1,070,592
Intangible assets, net	226,733	214,295
Deferred income taxes	99,219	93,735
Long-term marketable securities	39,062	37,188
Other assets	14,789	11,714
Total assets	2,310,838	2,354,517
Current liabilities:
Accounts payable	23,536	23,492
Accrued compensation	61,162	84,515
Accrued other	13,451	20,012
Income taxes payable	805	1,655
Deferred revenue and customer deposits	313,327	330,601
Current portion of operating lease liabilities	10,836	9,874
Total current liabilities	423,117	470,149
Other long-term liabilities	6,430	6,568
Deferred tax liability	2,189	2,225
Accrued long-term retirement benefits	27,938	28,336
Long-term deferred revenue and customer deposits	158,996	168,261
Operating lease liabilities, net of current portion	29,144	29,718
Total liabilities	647,814	705,257
Commitments and contingencies (Note 14)
Stockholders’ equity:
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; 138,474,142 and 136,628,693 issued and 72,700,450 and 71,464,664 outstanding	138	136
Additional paid-in capital	3,342,802	3,325,400
Accumulated other comprehensive income	3,893	4,032
Treasury stock at cost, 65,773,692 and 65,164,029	(1,756,732)	(1,731,396)
Retained earnings	72,923	51,088
Total stockholders’ equity	1,663,024	1,649,260
Total liabilities and stockholders’ equity	$ 2,310,838	$ 2,354,517