MENLO PARK – A significant shift in ownership has occurred within the private equity landscape surrounding Netskope Inc. (NASDAQ:NTSK). According to a recent Securities and Exchange Commission (SEC) filing, Lightspeed Opportunity Fund, L.P., an entity linked to Lightspeed Venture Partners, reported the sale of approximately $15.1 million in Netskope Class A common stock. The transactions were executed on June 12 and June 15, 2026, marking a strategic reduction in the fund's exposure to the cybersecurity provider.
The sequence of events began on June 12, when Lightspeed Opportunity Fund, L.P. converted 1,650,000 shares of Class B common stock into Class A common stock without incurring additional consideration. Immediately following this conversion, the fund proceeded to sell 1,313,827 shares of the newly converted Class A stock. These shares were sold at a weighted average price of $9.19 per share. Two days later, on June 15, the fund executed a second transaction, selling an additional 336,173 shares of Class A common stock at a weighted average price of $9.00 per share.
The cumulative value of these divestitures totaled $15,099,627. The weighted average prices for the transactions ranged between $9.00 and $9.19. Following the completion of these sales, Lightspeed Opportunity Fund, L.P. no longer holds any Class A common stock in Netskope. Despite this complete exit from the Class A tranche, other entities within the Lightspeed network maintain substantial positions. Specifically, Lightspeed Venture Partners IX, L.P., Lightspeed Venture Partners XII, L.P., Lightspeed SPV II, LLC, and Lightspeed SPV II-B, LLC continue to hold significant amounts of Class B common stock. These Class B shares are convertible into Class A common stock on a one-for-one basis at the holder's option or automatically on September 19, 2035. As of June 12, 2026, these related entities collectively held 62,843,207 shares of Class B common stock, representing a substantial potential future Class A holding.
The timing of this liquidation is notable given the current market conditions for Netskope. The company's shares were trading at $8.95 at the time of the filings, a level that represents a decline of roughly 60% over the past year. The stock price is also hovering near its 52-week low of $7.67. This downward pressure coincides with a recent earnings report that presented a mixed picture for the cybersecurity firm. Netskope reported an annual recurring revenue (ARR) of $845 million, reflecting a 29% year-over-year increase. While this figure met general market expectations, it fell short of some analysts' estimates. The company's total revenue reached approximately $202 million, marking a 28% year-over-year growth that slightly surpassed market forecasts.
Despite the revenue beat, the ARR miss and the exit of the Chief Financial Officer have prompted several financial firms to adjust their price targets for Netskope. TD Cowen reduced its target from $25 to $19 while maintaining a Buy rating, citing the ARR miss and the CFO departure as influencing factors. BMO Capital and RBC Capital both lowered their targets to $13, maintaining an Outperform rating, with concerns about the company's ARR growth and market competition. Piper Sandler decreased its target to $18, noting strong new logo ARR growth and traction with new AI products but highlighting challenges with sales force productivity. Mizuho also cut its target to $13, acknowledging the modest revenue beat but pointing out it was the smallest upside since Netskope became a public company.
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