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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 8-K
___________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

May 05, 2025
Date of Report (date of earliest event reported)
___________________________________
NETSCOUT SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
___________________________________

Delaware
(State or other jurisdiction of
incorporation or organization)
000-26251
(Commission File Number)
04-2837575
(I.R.S. Employer Identification Number)
310 Littleton Road
Westford, MA 01886
(Address of principal executive offices and zip code)
(978) 614-4000
(Registrant's telephone number, including area code)
___________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
CommonStock NTCT Nasdaq Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
[Emerging growth company    ☐]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐




Item 2.02. Results of Operations and Financial Condition.

The following information and the Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

On May 8, 2025, NetScout Systems, Inc. (the “Company”) issued a press release regarding its financial results for the fourth fiscal quarter and the fiscal year 2025 each ended March 31, 2025, its expectations of future performance and its intention to hold a conference call regarding these topics. The Company's press release is furnished as Exhibit 99.1 to this report.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Retirements of Chief Financial Officer and Chief Operating Officer

On May 5, 2025, Jean Bua informed the Board of Directors (the “Board”) of the Company of her intention to step down as Chief Financial Officer of the Company, effective May 31, 2025 (the “Effective Date”), as she transitions toward retirement. The Company has entered into a transition agreement (the “Bua Transition Agreement”) with Ms. Bua, pursuant to which Ms. Bua will continue as an employee of the Company in the capacity of Senior Advisor through June 30, 2026, subject to her earlier termination or resignation (the “Bua Separation Date”). She will continue to receive her existing base compensation and benefits through the Bua Separation Date. In addition, Ms. Bua will remain eligible to receive her annual incentive bonus for the fiscal year ended March 31, 2025, but will not be entitled to receive an annual incentive bonus for any other year. Through the Bua Separation Date, Ms. Bua will also be eligible to vest, in accordance with their terms, in any outstanding awards under the Company’s 2019 Equity Incentive Plan, as amended (the “2019 Plan”) of (i) time-based restricted stock units (“RSUs”), subject to her continued service with the Company through the applicable vesting dates, and (ii) performance-based RSUs (“PSUs”), subject to achievement of the applicable performance goals over the relevant performance periods, if and as certified by the Compensation Committee of the Board (the “Compensation Committee”), and subject to her continued service with the Company through the dates on which the Compensation Committee certifies achievement of the performance goals. In the event that, prior to the Bua Separation Date, Ms. Bua’s employment is terminated without Cause (as defined in the 2019 Plan) following a Change in Control (as defined in the 2019 Plan), Ms. Bua will be entitled to (i) continued payment of base salary through June 30, 2026, less applicable withholdings and deductions, and (ii) continued eligibility for vesting of PSUs through June 30, 2026 (and payment thereunder to the extent the Compensation Committee certifies performance achievement on or before such date). After the Bua Separation Date, it is expected that Ms. Bua will remain a non-employee advisor to the Company with the same duties and responsibilities as set forth in the Bua Transition Agreement and will not receive further compensation other than continued vesting of her RSUs in accordance with their terms. Such non-employee advisory period will end when all her outstanding RSUs are fully vested. In the event that there is a Change in Control (as defined in the 2019 Plan) while Ms. Bua is serving as an employee or non-employee advisor of the Company, all of her unvested RSUs, to the extent not otherwise accelerated under the terms of the 2019 Plan, will automatically vest in full simultaneously with such Change in Control. Ms. Bua’s Amended and Restated Severance Agreement was terminated upon entering into the Bua Transition Agreement.

The foregoing description of the Bua Transition Agreement contained herein does not purport to be complete and is qualified in its entirety by reference to the complete text of such document, a copy of which will be filed as exhibit to the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025.




Also on May 5, 2025, Michael Szabados informed the Board of his intention to step down as Chief Operating Officer of the Company, effective as of the Effective Date, as he transitions toward retirement. The Company has entered into a transition agreement (the “Szabados Transition Agreement”) with Mr. Szabados, pursuant to which Mr. Szabados will continue as a full-time employee of the Company in the capacity of Senior Advisor through June 30, 2026, subject to his earlier termination or resignation (the “Szabados Employment Separation Date”). He will continue to receive his existing base compensation and benefits through the Szabados Employment Separation Date. In addition, Mr. Szabados will remain eligible to receive his annual incentive bonus for the fiscal year ended March 31, 2025, but will not be entitled to receive an annual incentive bonus for any other year. Through the Szabados Employment Separation Date and as long as he continues to serve on the Board, Mr. Szabados will have the same duties and responsibilities as forth in the Szabados Transition Agreement and Mr. Szabados will also be eligible to vest, in accordance with their terms, in any outstanding awards under the 2019 Plan of time-based RSUs, subject to his continued service with the Company through the applicable vesting dates. Through the Szabados Employment Separation Date (but not during any periods thereafter including any service on the Board), Mr. Szabados will also be eligible to vest, in accordance with their terms, in any outstanding awards under the 2019 Plan of PSUs, subject to achievement of the applicable performance goals over the relevant performance periods, if and as certified by the Compensation Committee, and subject to his continued employment with the Company through the dates on which the Compensation Committee certifies achievement of the performance goals. In the event that prior to the Szabados Employment Separation Date, Mr. Szabados’ employment is terminated without Cause (as defined in the 2019 Plan) following a Change in Control (as defined in the 2019 Plan), Mr. Szabados will be entitled to (i) continued payment of base salary through June 30, 2026, less applicable withholdings and deductions, and (ii) continued eligibility for vesting of PSUs through June 30, 2026 (and payment thereunder to the extent the Compensation Committee certifies performance achievement on or before such date). In the event that there is a Change in Control (as defined in the 2019 Plan) while Mr. Szabados is serving as an employee, advisor or member of the Board of Directors of the Company, all of his unvested RSUs, to the extent not otherwise accelerated under the terms of the 2019 Plan, will vest in full simultaneously with such Change in Control. Mr. Szabados’ Amended and Restated Severance Agreement was terminated upon entering into the Szabados Transition Agreement.

Following the Effective Date, Mr. Szabados will continue to serve as a Class III member and Vice Chairman of the Board. However, Mr. Szabados will not be eligible to receive compensation under the Company’s non-employee director compensation policy until after the conclusion of his full-time employment as a Senior Advisor with the Company and will not receive equity awards under the non-employee director compensation policy until all RSUs granted prior to the Szabados Employment Separation Date have fully vested.

The foregoing description of the Szabados Transition Agreement contained herein does not purport to be complete and is qualified in its entirety by reference to the complete text of such document, a copy of which will be filed as exhibit to the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025.

NetScout’s Chairman and Chief Executive Officer and the Board as a whole thank Ms. Bua and Mr. Szabados for their long service and dedication to NetScout and its stockholders.






Appointments of Chief Financial Officer and Chief Operating Officer

On May 6, 2025, the Board appointed Anthony Piazza as the Company’s Executive Vice President and Chief Financial Officer and Sanjay Munshi as the Company’s Chief Operating Officer, each effective as of June 1, 2025 (the “Start Date”). In his capacity as Chief Financial Officer, Mr. Piazza will serve as the Company’s “principal financial officer”.

Mr. Piazza, age 54, joined the Company in 2015 as its Vice President of Finance and was named SVP of Corporate Finance in July 2022 and Deputy Chief Financial Officer in May 2024. Prior to joining the Company, Mr. Piazza worked at Iron Mountain from 1997 to 2014, rising to the level of SVP of Enterprise Finance. His previous roles at Iron Mountain included SVP of Global Real Estate, VP of Real Estate Finance & Operations, Assistant Treasurer, and Acquisition & SEC Reporting Accountant. In all, his responsibilities included management of critical finance, accounting, and control functions; the financial integration of multiple mergers and acquisitions; long-term strategic planning for the Company’s real estate portfolio; and investor relations. From 1993 to 1997, Mr. Piazza was a senior auditor at Grant Thornton. Mr. Piazza received his B.S. in Accountancy and his M.B.A. both from Bentley University and is a Certified Public Accountant.

Mr. Munshi, age 57, joined the Company in 2017 and has served in various roles with increased responsibilities at the Company, including as Deputy Chief Operating Officer from April 2024 to April 2025, Senior Vice President, Products from February 2021 to April 2024, and Vice President, Product Management from February 2017 to February 2021. Prior to joining the Company, he served as Senior Director, Product Management and Marketing of Brocade from 2010 to 2017 and Director, Product Management of Extreme Networks from 2006 to 2010. Mr. Munshi received his Bachelor in Technology in Electronics and Communication Engineering from the National Institute of Technology in India and his Masters of Science in Computer Engineering from San Jose State University.

In connection with their respective promotions, the Company entered into new offer letter agreements with each of Messrs. Piazza and Munshi setting forth their respective compensation terms. These offer letter agreements provide for at-will employment and contain standard confidentiality, non-solicitation and assignment of intellectual property provisions.
Under the terms of Mr. Piazza’s offer letter agreement, he will be paid a base salary of $350,000 and will be eligible to receive an annual incentive bonus with an initial target bonus opportunity of 71.4% of his base salary and will receive a grant of 18,000 RSUs and 12,000 PSUs under the 2019 Plan, subject to the Company’s standard terms and conditions and the requirements of the Company’s PSU program.

Under the terms of Mr. Munshi’s offer letter agreement, he will be paid a base salary of $350,000 and will be eligible to receive an annual incentive bonus with an initial target bonus opportunity of 57.1% of his base salary and will receive a grant of 15,000 RSUs and 10,000 PSUs under the 2019 Plan, subject to the Company’s standard terms and conditions and the requirements of the Company’s PSU program.

Messrs. Piazza and Munshi will also each enter into the Company’s form of Severance Agreement for executive officers other than the Chief Executive Officer, a copy of which was filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed with the SEC on June 1, 2012, which agreement provides certain payments in the event that such executive officer is terminated without cause (as defined in the applicable agreement) or resigns for good reason (as defined in the applicable agreement) at any time prior to a change in control (as defined in the applicable agreement) of the Company or within one year thereafter.



In such event, such executive officer will receive 12 months of his then-current salary, and if such termination occurs after a change of control, such executive officer will also receive a prorated amount of his annual incentive bonus target, based on the months elapsed in such year that in any event will not be less than 50% of his annual incentive bonus target, and accelerated vesting of any outstanding unvested equity awards under the 2019 Plan, or any successors thereto, that would have vested or become exercisable within one year of such termination.

Messrs. Piazza and Munshi will also each enter into the Company’s standard form of indemnification agreement for executive officers, a copy of which was filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2013, filed with the SEC on January 28, 2014.

Appointment of Principal Accounting Officer

In connection with Ms. Bua’s retirement and Mr. Piazza’s promotion, the Company appointed Eric Watt, the Company’s Chief Accounting Officer, as the Company’s “principal accounting officer” effective as of the Start Date.

Mr. Watt, age 48, has served as the Company’s Chief Accounting Officer since January 2025. Prior to joining NetScout, Mr. Watt served as Vice President of Finance at Appfire, a privately held company in the enterprise collaboration software space, from May 2022 to December 2024. From March 2020 to April 2022, he served as Chief Accounting Officer at Shorelight, a privately held company in the higher education international student marketplace in the United States. Prior to his private company experience, Mr. Watt served in public companies, including as Vice President of Finance and Corporate Controller at Insulet Corporation, a medical device company, and as Vice President of Finance and Corporate Controller at EnerNOC Inc., a provider of energy demand response networks and energy intelligence software. Mr. Watt served in the audit and assurance practice for PricewaterhouseCoopers and Ernst and Young, leaving Ernst and Young as an audit manager. Mr. Watt received his Bachelor of Science in Business Administration in Accounting from Bryant College and is a Certified Public Accountant.

Other than as described above, there are no arrangements or understandings between Messrs. Piazza, Munshi and Watt and any other person pursuant to which either of Messrs. Piazza, Munshi or Watt was selected as an officer of the Company. None of Messrs. Piazza, Munshi or Watt, nor any member of their respective immediate families, has any direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K under the Exchange Act. Furthermore, there is no family relationship between Messrs. Piazza, Munshi or Watt and any director, executive officer, or person nominated or chosen by the Company to become a director or executive officer of the Company.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

The Company hereby furnishes the following exhibit:
Exhibit Number
Description
Press release dated May 8, 2025.
104
Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.




SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized on this 8th day of May, 2025.


NETSCOUT SYSTEMS, INC.
By:
/s/ Jean Bua
Name:
Jean Bua
Title:
Executive Vice President and Chief Financial Officer



EX-99.1 2 q4fy25pressrelease.htm EX-99.1 Document

ns_logoxcolxposa.jpg

NETSCOUT Reports Fourth Quarter and Full Fiscal Year 2025 Financial Results
and Announces Executive Transitions


WESTFORD, Mass., May 8, 2025 – NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT), a leading provider of enterprise performance management, carrier service assurance, cybersecurity, and DDoS protection solutions, today announced financial results for its fourth quarter and full fiscal year ended March 31, 2025, and also announced that Chief Operating Officer (COO) Michael Szabados and Chief Financial Officer (CFO) Jean Bua will step down from their current roles effective May 31, 2025, as they enter retirement and transition into advisory roles through June 2026. As part of a planned succession, Sanjay Munshi, the Company’s Deputy COO, and Anthony Piazza, the Company’s Deputy CFO, will become COO and CFO, respectively, effective June 1, 2025.

Remarks by Anil Singhal, NETSCOUT’s President & Chief Executive Officer:

Fourth Quarter and Fiscal Year 2025 Financial Performance and Outlook for Fiscal Year 2026

"We closed fiscal year 2025 revenue on a strong note, with fourth-quarter revenue exceeding our expectations, driven by solid performance in our Cybersecurity product line. We are also pleased with our full-year revenue performance. These results were in line with our prior year revenue results after adjusting for the divestiture of the Test Optimization business. These results reflect the resilience of our business and the strong focus of our teams and were achieved against a challenging comparison since the prior year’s revenue benefited from significant backlog-driven gains.”

“As we look ahead to fiscal year 2026, we remain encouraged by the momentum in our Cybersecurity solutions and are focused on returning to revenue growth. While we remain cautious given the broader economic uncertainty, we’re committed to disciplined cost management to preserve flexibility. Our long-term strategy is unchanged—we will continue to invest in innovation, deepen relationships with our customers, and leverage our mission-critical solutions to support the evolving performance, availability, and security needs of today’s complex digital environments. With a strong financial foundation and a clear strategic direction, we believe NETSCOUT is well positioned for sustainable, long-term success." “On behalf of our board and executive team, I want to thank Jean and Michael for their many contributions in support of NETSCOUT over the years,” said Singhal.

Leadership Transition
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“We wish them every success in retirement and are pleased they will continue to support the company in an advisory capacity over the next year.”

“We are fortunate to have capable and experienced leaders like Sanjay and Tony ready to take on the roles of COO and CFO. Sanjay has more than 30 years of experience in the networking and cybersecurity industry and has led strategic innovations for NETSCOUT’s network and application performance, security analytics, and DDoS prevention solutions. With 30 years of experience, Tony has been instrumental in shaping our financial strategy, bringing deep expertise across financial planning and analysis, treasury, risk management, taxation, real estate, and investor relations. I look forward to partnering with Sanjay and Tony as we continue to deliver value for our stakeholders.”

Q4 FY25 Financial Results

Total revenue for the fourth quarter of fiscal year 2025 was $205.0 million, compared with $203.4 million in the fourth quarter of fiscal year 2024.

Product revenue for the fourth quarter of fiscal year 2025 was $89.5 million, or approximately 44% of total revenue in the period. This compares with product revenue of $89.4 million in the fourth quarter of fiscal year 2024, which was approximately 44% of total revenue in the period. As of March 31, 2025, NETSCOUT had a total combined product backlog of $33.1 million, which includes $25.1 million of fulfillable backlog, $0.9 million of radio frequency propagation modeling projects, and $7.1 million related to one multi-year customer enterprise license commitment. This compares to $6.8 million at March 31, 2024, consisting of $2.5 million of fulfillable backlog and $4.3 million of radio frequency modeling projects. Additionally, as of March 31, 2025, there is $8.3 million of radio frequency modeling projects in deferred revenue compared with $1.2 million at March 31, 2024.

Service revenue for the fourth quarter of fiscal year 2025 was $115.5 million, or approximately 56% of total revenue in the period. This compares with service revenue of $114.0 million in the fourth quarter of fiscal year 2024, which was approximately 56% of total revenue for the period.

NETSCOUT’s income from operations (GAAP) was $19.9 million in the fourth quarter of fiscal year 2025. This compares with a loss from operations (GAAP) of $37.0 million in the fourth quarter of fiscal year 2024. The Company’s operating margin (GAAP) was 9.7% in the fourth quarter of fiscal year 2025, versus negative 18.2% in the same period of fiscal year 2024. Non-GAAP income from operations was $47.3 million with a non-GAAP operating margin of 23.1% in the fourth quarter of fiscal year 2025. This compares to non-GAAP income from operations of $39.0 million and a non-GAAP operating margin of 19.2% in the fourth quarter of fiscal year 2024. Non-GAAP EBITDA from operations in the fourth quarter of fiscal year 2025 was $50.3 million, or 24.5% of quarterly revenue for the period. This compares to non-GAAP EBITDA from operations of $42.9 million in the fourth quarter of fiscal year 2024, or 21.1% of quarterly revenue for the period.
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A reconciliation of all GAAP and non-GAAP results are included in the financial tables below.

Net income (GAAP) for the fourth quarter of fiscal year 2025 was $18.6 million, or $0.25 per share (diluted), versus a net loss (GAAP) of $32.4 million, or $(0.46) per share (diluted), which included a non-cash goodwill impairment charge, for the fourth quarter of fiscal year 2024. On a non-GAAP basis, net income for the fourth quarter of fiscal year 2025 was $38.0 million, or $0.52 per share (diluted), compared with $39.8 million, or $0.55 per share (diluted), for the fourth quarter of fiscal year 2024.

As of March 31, 2025, cash, cash equivalents, short and long-term marketable securities and investments were $492.5 million, compared with $427.9 million as of December 31, 2024, and $424.1 million as of March 31, 2024. NETSCOUT did not repurchase any shares of its common stock during the fourth quarter of fiscal year 2025. The Company had no debt outstanding under its revolving credit facility as of March 31, 2025. The Company’s $600 million revolving credit facility will expire in October 2029.

Full Year FY25 Financial Results

▪Total revenue for the full fiscal year 2025 was $822.7 million, compared with total revenue of $829.5 million in fiscal year 2024.
▪Product revenue for fiscal year 2025 was $359.9 million, compared with $360.4 million in fiscal year 2024.
▪Service revenue for the fiscal year 2025 was $462.8 million, compared with $469.0 million in fiscal year 2024.
▪NETSCOUT’s loss from operations (GAAP) for fiscal year 2025 was $367.6 million, which includes total non-cash goodwill charges of $427.0 million. This compares with a loss from operations (GAAP) of $149.8 million in fiscal year 2024, which included a non-cash goodwill charge of $217.3 million. The Company’s operating margin (GAAP) for fiscal year 2025 was negative 44.7%, versus negative 18.1% in fiscal year 2024. The Company’s non-GAAP income from operations for the fiscal year 2025 was $195.1 million with a non-GAAP operating margin of 23.7%, compared with non-GAAP income from operations of $187.1 million and a non-GAAP operating margin of 22.6% for fiscal year 2024. The Company’s non-GAAP EBITDA from operations for fiscal year 2025 was $208.4 million, or 25.3% of total revenue, compared with non-GAAP EBITDA from operations of $205.0 million, or 24.7% of total revenue for fiscal year 2024. A reconciliation of all GAAP and non-GAAP results are included in the financial tables below.
▪For fiscal year 2025, NETSCOUT’s net loss (GAAP) was $366.9 million, or $(5.12) per share (diluted). This compares with net loss (GAAP) of $147.7 million, or $(2.07) per share (diluted), in fiscal year 2024. Both fiscal year results include non-cash goodwill impairment charges as mentioned above. Non-GAAP net income for fiscal year 2025 was $160.4 million, or $2.22 per share (diluted), compared with non-GAAP net income of $159.1 million, or $2.20 per share (diluted), for fiscal year 2024.
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▪During fiscal year 2025, NETSCOUT repurchased approximately 1.4 million shares of its common stock for an aggregate of approximately $25.3 million through its share repurchase program.

Financial Outlook

The Company’s financial outlook for fiscal year 2026 is anticipated to be as follows:
▪Revenue in the range of $825 million to $865 million.
▪GAAP net income per share (diluted) in the range of $1.07 to $1.22. Non-GAAP net income per share (diluted) in the range of $2.25 to $2.40.
▪A reconciliation between GAAP and non-GAAP numbers for NETSCOUT’s fiscal year 2026 outlook is included in the financial tables below.

Recent Developments and Highlights

▪In early April 2025, NETSCOUT announced the findings from its 2nd-half 2024 DDoS Threat Intelligence Report revealing how Distributed Denial of Service (DDoS) attacks have emerged as the go-to tool for cyber warfare, becoming a dominant means of attacks linked to sociopolitical events such as elections, civil protests, and policy disputes. With the increase in enterprise servers and routers being exploited, DDoS attacks are evolving and adapting faster than ever, creating a challenge for defenders and those entrusted with protecting critical infrastructure networks and service availability.
▪In late February 2025, NETSCOUT announced it enhanced its Arbor Threat Mitigation System (TMS) Adaptive DDoS Protection solution with additional AI/ML functionality to better detect and block malicious traffic. Distributed Denial of Service (DDoS) attacks targeting critical IT infrastructure and services have increased by 55% over the past four years. To combat these attacks, organizations, enterprises and service providers require AI/ML-enabled solutions that can continually adapt to threats, using proactive, intelligence-driven security strategies to protect their networks.

About Sanjay Munshi and Anthony Piazza

Mr. Munshi joined NETSCOUT in 2017 as Vice President, Product Management, rising to the position of Senior Vice President of Products in 2022, before being named Deputy COO in April of 2024. Prior to joining NETSCOUT, Mr. Munshi served as Senior Director, Product Management and Marketing at Brocade Communications Systems from 2010 to 2017 and was responsible for product management, product marketing and technical marketing functions for analytics software solutions for mobile and cloud operators. He previously held senior management positions at Extreme Networks, Nortel, and Bay Networks. Mr. Munshi has a MS in computer engineering from San Jose State University.

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Mr. Piazza joined NETSCOUT in 2015 as its Vice President of Corporate Finance and was named SVP of Corporate Finance in 2022 and Deputy Chief Financial officer in May of 2024. Prior to joining NETSCOUT, Mr. Piazza worked at Iron Mountain from 1997 to 2014, rising to the level of SVP of Enterprise Finance. His previous roles at Iron Mountain included SVP of Global Real Estate, VP of Real Estate Finance & Operations, Assistant Treasurer, and Acquisition & SEC Reporting Accountant. In all, his responsibilities included management of critical finance, accounting, and control functions; the financial integration of multiple mergers and acquisitions; and long-term strategic planning for the company’s real estate portfolio; and investor relations. From 1993 to 1997, Mr. Piazza was a senior auditor at Grant Thornton. He has a B.S. in accountancy and an M.B.A. from Bentley University, and is a certified public accountant.

Conference Call Instructions:

NETSCOUT will host a conference call to discuss its fourth-quarter and full fiscal year 2025 financial results and financial outlook today at 8:30 a.m. ET. This call will be webcast live through NETSCOUT’s website at https://ir.netscout.com/investors/overview/default.aspx. Alternatively, investors can listen to the call by dialing (203) 518-9708. The conference call ID is NTCTQ425. A replay of the call will be available after 12:00 p.m. ET today, for approximately one week. The number for the replay is (800) 727-6189 for U.S./Canada and (402) 220-2671 for international callers.

Use of Non-GAAP Financial Information:

To supplement the financial measures presented in NETSCOUT's press release in accordance with accounting principles generally accepted in the United States (GAAP), NETSCOUT also reports the following non-GAAP measures: non-GAAP gross profit, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP diluted net income per share, and non-GAAP earnings before interest and other expense, income taxes, depreciation, and amortization (Non-GAAP EBITDA) from operations. Non-GAAP gross profit removes expenses related to the amortization of acquired intangible assets, share-based compensation expense, and acquisition-related depreciation expense. Non-GAAP income from operations includes the aforementioned adjustments and also removes restructuring charges, goodwill impairment charges, gain on the divestiture of a business, and legal (benefit) expense related to civil judgments. Non-GAAP operating margin includes the foregoing adjustments related to non-GAAP income from operations. Non-GAAP net income includes the foregoing adjustments related to non-GAAP income from operations, and also removes loss on extinguishment of debt, and change in fair value of derivative instruments, net of related income tax effects. Non-GAAP diluted net income per share includes the foregoing adjustments related to non-GAAP net income. Non-GAAP EBITDA from operations removes the aforementioned items related to non-GAAP income from operations and also removes non-acquisition related depreciation expense. 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 press release.

These non-GAAP measures are not in accordance with GAAP, should not be considered an alternative for measures prepared in accordance with GAAP (gross profit, operating margin, net income, and diluted net income per share), and may have limitations because they do not reflect all 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.
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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.

About NETSCOUT SYSTEMS, INC.

NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT) protects the connected world from cyberattacks and performance and availability disruptions through the company’s unique visibility platform and solutions powered by its pioneering deep packet inspection at scale technology. NETSCOUT serves the world’s largest enterprises, service providers, and public sector organizations. Learn more at www.netscout.com or follow @NETSCOUT on LinkedIn, Twitter, or Facebook.

Safe Harbor

Certain information provided in this press release and on the accompanying conference call and webcast includes 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, 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 including, without limitation, statements regarding NETSCOUT’s financial results, its financial outlook and expectations, that NETSCOUT remains encouraged by the momentum in its Cybersecurity offering and is focused on returning to revenue growth, that it remains cautious given the broader economic uncertainty and is committed to disciplined cost management to preserve flexibility, that its long-term strategy is unchanged as it plans to continue to invest in innovation, deepen relationships with its customers, and leverage its mission-critical solutions to support the evolving performance, availability, and security needs of today’s complex digital environments, that it has a strong financial foundation and a clear strategic direction and believes NETSCOUT is well positioned for sustainable, long-term success, statements relating to the potential benefit of a market for the Company’s products and regarding product releases, updates, and functionality, as well as statements regarding the executive transitions, all constitute forward looking statements that involve risks and uncertainties. Actual results could differ materially from the forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other factors.
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Such factors include, but are not limited to, macroeconomic factors and slowdowns or downturns in economic conditions generally and in the market for advanced networks, service assurance and cybersecurity solutions specifically; international trade policies, including trade protection measures such as tariffs, sanctions and trade barriers; the volatile foreign exchange environment; liquidity concerns at, and failures of, banks and other financial institutions; 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; the Company’s ability to realize the anticipated savings from recent restructuring actions and other expense management programs; lower than expected demand for the Company’s products and services; and the timing and magnitude of stock buyback activity based on market conditions, corporate considerations, debt agreements, and regulatory requirements. The risks included above are not exhaustive. We caution readers not to place undue reliance on any forward-looking statements included in this press release which speak only as to the date of this press release. We undertake no responsibility to update or revise any forward-looking statements, except as required by law. For a more detailed description of the risk factors associated with the Company, please refer to the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024, filed with the Securities and Exchange Commission on May 16, 2024, and subsequently filed reports. NETSCOUT assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.

©2025 NETSCOUT SYSTEMS, INC. All rights reserved. NETSCOUT and the NETSCOUT logo are registered trademarks or trademarks of NETSCOUT SYSTEMS, INC. and/or its subsidiaries and/or affiliates in the USA and/or other countries.

Contacts: Investors Media
Tony Piazza     Chris Lucas
Deputy CFO         AVP, Marketing & Corporate Communications
978-614-4000 978-614-4124
IR@netscout.com Chris.Lucas@netscout.com

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NETSCOUT SYSTEMS, INC.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
March 31, March 31,
2025 2024 2025 2024
Revenue:
    Product $ 89,517  $ 89,406  $ 359,894  $ 360,444 
    Service 115,470  114,037  462,785  469,011 
       Total revenue 204,987  203,443  $ 822,679  829,455 
Cost of revenue:
      Product 15,657  16,051  57,463  64,057 
      Service 30,040  34,289  121,272  123,355 
        Total cost of revenue 45,697  50,340  178,735  187,412 
Gross profit 159,290  153,103  643,944  642,043 
Operating expenses:
    Research and development 36,737  43,558  152,864  161,213 
    Sales and marketing 66,562  61,909  268,051  270,979 
   General and administrative 23,917  21,911  96,724  95,886 
    Amortization of acquired intangible assets 11,583  12,547  46,440  50,337 
Restructuring charges 605  —  20,500  — 
Goodwill impairment —  50,154  426,967  217,260 
Gain on divestiture of a business —  —  —  (3,806)
        Total operating expenses 139,404  190,079  1,011,546  791,869 
Income (loss) from operations 19,886  (36,976) (367,602) (149,826)
Interest and other income (expense), net (1,685) 4,044  1,808  5,316 
Income (loss) before income tax expense (benefit) 18,201  (32,932) (365,794) (144,510)
Income tax expense (benefit) (416) (513) 1,128  3,224 
Net income (loss) $ 18,617  $ (32,419) $ (366,922) $ (147,734)
Basic net income (loss) per share $ 0.26  $ (0.46) $ (5.12) $ (2.07)
Diluted net income (loss) per share $ 0.25  $ (0.46) $ (5.12) $ (2.07)
Weighted average common shares outstanding used in computing:
      Net income (loss) per share - basic 71,862  71,164  71,627  71,474 
      Net income (loss) per share - diluted 73,410  71,164  71,627  71,474 

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NETSCOUT SYSTEMS, INC.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
March 31, March 31,
2025 2024
Assets
Current assets:
    Cash, cash equivalents, marketable securities and investments $ 491,473  $ 423,133 
    Accounts receivable and unbilled costs, net 163,654  192,096 
    Inventories and deferred costs 12,891  14,095 
    Prepaid expenses and other current assets 45,166  43,170 
        Total current assets 713,184  672,494 
Fixed assets, net 21,529  26,487 
Operating lease right-of-use assets 37,717  42,486 
Goodwill and intangible assets, net 1,335,073  1,811,479 
Long-term marketable securities 1,004  994 
Other assets 78,071  41,362 
        Total assets $ 2,186,578  $ 2,595,302 
Liabilities and Stockholders' Equity
Current liabilities:
    Accounts payable $ 18,208  $ 14,506 
    Accrued compensation 56,696  51,362 
    Accrued other 20,280  15,429 
    Deferred revenue and customer deposits 301,753  301,806 
    Current portion of operating lease liabilities 10,995  11,979 
        Total current liabilities 407,932  395,082 
Other long-term liabilities 8,210  7,055 
Deferred tax liability 2,643  4,374 
Accrued long-term retirement benefits 27,379  28,413 
Long-term deferred revenue and customer deposits 147,510  130,212 
Operating lease liabilities, net of current portion 32,509  38,101 
Long-term debt —  100,000 
        Total liabilities 626,183  703,237 
Stockholders' equity:
    Common stock 134  131 
    Additional paid-in capital 3,255,333  3,181,366 
    Accumulated other comprehensive income 4,073  3,572 
    Treasury stock, at cost (1,654,702) (1,615,483)
    (Accumulated deficit) Retained earnings (44,443) 322,479 
        Total stockholders' equity 1,560,395  1,892,065 
        Total liabilities and stockholders' equity $ 2,186,578  $ 2,595,302 
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NETSCOUT SYSTEMS, INC.
Reconciliation of Current GAAP to Current and Historical Non-GAAP Financial Measures
(In thousands, except per share data)
(Unaudited)
Three Months Ended Three Months Ended Twelve Months Ended
March 31, December 31, March 31,
2025 2024 2024 2025 2024
Revenue $ 204,987  $ 203,443  $ 252,019  $ 822,679  $ 829,455 
Gross Profit (GAAP) $ 159,290  $ 153,103  $ 205,407  $ 643,944  $ 642,043 
   Share-based compensation expense (1) 2,090  2,305  2,196  9,806  10,229 
   Amortization of acquired intangible assets (2) 993  1,637  994  3,978  6,549 
   Acquisition related depreciation expense (3) 12 
Non-GAAP Gross Profit $ 162,374  $ 157,046  $ 208,598  $ 657,734  $ 658,833 
Income (Loss) from Operations (GAAP) $ 19,886  $ (36,976) $ 61,713  $ (367,602) $ (149,826)
GAAP Operating Margin 9.7  % (18.2) % 24.5  % (44.7) % (18.1) %
   Share-based compensation expense (1) 14,199  16,146  14,502  64,785  70,799 
   Amortization of acquired intangible assets (2) 12,576  14,184  12,595  50,418  56,886 
   Restructuring charges 605  —  923  20,500  — 
   Goodwill impairment —  50,154  —  426,967  217,260 
   Acquisition related depreciation expense (3) 11  11  13  47  119 
   Gain on divestiture of a business —  —  —  —  (3,806)
   Legal (benefit) expense related to civil judgments (4) —  (4,510) —  —  (4,380)
Non-GAAP Income from Operations $ 47,277  $ 39,009  $ 89,746  $ 195,115  $ 187,052 
Non-GAAP Operating Margin 23.1  % 19.2  % 35.6  % 23.7  % 22.6  %
Net Income (Loss) (GAAP) $ 18,617  $ (32,419) $ 48,810  $ (366,922) $ (147,734)
   Share-based compensation expense (1) 14,199  16,146  14,502  64,785  70,799 
   Amortization of acquired intangible assets (2) 12,576  14,184  12,595  50,418  56,886 
   Restructuring charges 605  —  923  20,500  — 
   Goodwill impairment —  50,154  —  426,967  217,260 
   Acquisition related depreciation expense (3) 11  11  13  47  119 
   Gain on divestiture of a business —  —  —  —  (3,806)
   Legal (benefit) expense related to civil judgments (4) —  (4,510) —  —  (4,380)
   Loss on extinguishment of debt (5) —  —  1,134  1,134  — 
   Change in fair value of derivative instrument (6) —  —  —  —  (206)
   Income tax adjustments (7) (8,004) (3,743) (9,695) (36,503) (29,828)
Non-GAAP Net Income $ 38,004  $ 39,823  $ 68,282  $ 160,426  $ 159,110 
Diluted Net Income (Loss) Per Share (GAAP) $ 0.25  $ (0.46) $ 0.67  $ (5.12) $ (2.07)
   Share impact of non-GAAP adjustments identified above 0.27  1.01  0.27  7.34  4.27 
Non-GAAP Diluted Net Income Per Share $ 0.52  $ 0.55  $ 0.94  $ 2.22  $ 2.20 
   Shares used in computing non-GAAP diluted net income per share 73,410  72,345  72,569  72,235  72,294 
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NETSCOUT SYSTEMS, INC.
Reconciliation of Current GAAP to Current and Historical Non-GAAP Financial Measures - Continued
(In thousands)
(Unaudited)
Three Months Ended Three Months Ended Twelve Months Ended
March 31, December 31, March 31,
2025 2024 2024 2025 2024
(1) Share-based compensation expense included in these amounts is as follows:
Cost of product revenue $ 283  $ 303  $ 287  $ 1,296  $ 1,330 
Cost of service revenue 1,807  2,002  1,909  8,510  8,899 
Research and development 4,062  4,409  4,074  17,956  19,281 
Sales and marketing 4,915  5,736  5,071  22,765  25,375 
General and administrative 3,132  3,696  3,161  14,258  15,914 
  Total share-based compensation expense $ 14,199  $ 16,146  $ 14,502  $ 64,785  $ 70,799 
(2) Amortization expense related to acquired software and product technology, tradenames, customer relationships included in these amounts is as follows:
Cost of product revenue $ 993  $ 1,637  $ 994  $ 3,978  $ 6,549 
Operating expenses 11,583  12,547  11,601  46,440  50,337 
  Total amortization expense $ 12,576  $ 14,184  $ 12,595  $ 50,418  $ 56,886 
(3) Acquisition related depreciation expense included in these amounts is as follows:
Cost of product revenue $ $ $ $ $
Cost of service revenue —  —  —  — 
Research and development 31  82 
Sales and marketing 18 
General and administrative —  — 
  Total acquisition related depreciation expense $ 11  $ 11  $ 13  $ 47  $ 119 
(4) Legal (benefit) expense related to civil judgments included in this amount is as follows:
General and administrative $ —  $ (4,510) $ —  $ —  $ (4,380)
Total legal judgments expense $ —  $ (4,510) $ —  $ —  $ (4,380)
(5) Change in fair value of derivative instrument included in this amount is as follows:
Interest and other (income) expense, net $ —  $ —  $ —  $ —  $ (206)
  Total change in fair value of derivative instrument $ —  $ —  $ —  $ —  $ (206)
(6) Loss on extinguishment of debt included in this amount is as follows:
Interest and other (income) expense, net $ —  $ —  $ 1,134  $ 1,134  $ — 
Total loss on extinguishment of debt $ —  $ —  $ 1,134  $ 1,134  $ — 
(7) Total income tax adjustment included in this amount is as follows:
Tax effect of non-GAAP adjustments above $ (8,004) $ (3,743) $ (9,695) $ (36,503) $ (29,828)
  Total income tax adjustments $ (8,004) $ (3,743) $ (9,695) $ (36,503) $ (29,828)





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NETSCOUT SYSTEMS, INC.
Reconciliation of Current GAAP to Current and Historical Non-GAAP Financial Measures -
Non-GAAP EBITDA from Operations
(In thousands)
(Unaudited)
Three Months Ended Three Months Ended Twelve Months Ended
March 31, December 31, March 31,
2025 2024 2023 2025 2024
Income (loss) from operations (GAAP) $ 19,886  $ (36,976) $ 61,713  $ (367,602) $ (149,826)
Income (loss) from operations (GAAP) as a % of revenue 9.7  % (18.2) % 24.5  % (44.7) % (18.1) %
Previous adjustments to determine non-GAAP income from operations 27,391  75,985  28,033  562,717  336,878 
Non-GAAP Income from operations $ 47,277  $ 39,009  $ 89,746  $ 195,115  $ 187,052 
Depreciation excluding acquisition related-depreciation expense 3,009  3,863  3,077  13,321  17,981 
Non-GAAP EBITDA from operations $ 50,286  $ 42,872  $ 92,823  $ 208,436  $ 205,033 
Non-GAAP EBITDA from operations as a % of revenue 24.5  % 21.1  % 36.8  % 25.3  % 24.7  %



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NETSCOUT SYSTEMS, INC.
Reconciliation of GAAP Financial Outlook to Non-GAAP Financial Outlook
(Unaudited)
(In millions, except net income per share - diluted)
FY'25 FY'26
Revenue $ 822.7  ~ $825 million to ~$865 million
FY'25 FY'26
GAAP net income (loss) $ (366.9) ~$80 million to ~$91 million
Amortization of intangible assets $ 50.4  ~$47 million
Share-based compensation expenses $ 64.8  ~$62 million
Acquisition related depreciation expense $ —  0
Loss on debt extinguishment $ 1.1 
Restructuring charges $ 20.5  ~$1 million
Goodwill impairment $ 427.0 
Total adjustments $ 563.8   ~$110 million
Related impact of adjustments on income tax $ (36.5)   (~$22 million)
Non-GAAP net income $ 160.4   ~$168 million to ~$179 million
GAAP net income (loss) per share (diluted) $ (5.12) ~$1.07 to ~$1.22
Non-GAAP net income per share (diluted) $ 2.22  ~$2.25 to ~$2.40
Average weighted shares outstanding (diluted GAAP) 71.6  ~74 million to ~75 million
Average weighted shares outstanding (diluted Non-GAAP) 72.2  ~74 million to ~75 million
**Figures in table may not total due to rounding



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