Netscout Systems (NTCT) FY2026 10-K Risk Factors: 88 New, 32 Dropped

What the changes say

Macro pressure now emphasizes constrained service-provider spending, geopolitical conditions, and AI-related supply-chain effects on customer orders.
The additions heavily expand accounting, revenue recognition, impairment, cost, contingencies, and warranty disclosures.
Dropped risks remove specific operational threats involving suppliers, cybersecurity, disasters, product innovation, IT systems, and pandemics.

What changed since the prior 10-K

New

New
Global and Macroeconomic Conditions
Geopolitical conflict, inflation, rates, tariffs, recession, exchange rates, and AI-related supply constraints could reduce customer spending or disrupt operations.
New
Use of Non-GAAP Financial Measures
Non-GAAP measures depend on exclusions and adjustments that may affect how investors compare NetScout’s reported performance with GAAP results.
New
We exercise judgment and use estimates in connection with determining the amounts of product and service revenues to be recognized in each accounting period
Judgment about contracts, performance obligations, and product or service delivery timing could cause revenue to be recognized in the wrong period.
New
Generally, our contracts are accounted for individually. However, when contracts are closely interrelated and dependent on each other, it may be necessary to account for two or more contracts as one to reflect the substance of the group of contracts
Bundled contracts require estimates of standalone selling prices, creating risk that transaction prices are allocated incorrectly among products and services.
New
Reporting units are determined based on the components of a company's operating segments that constitute a business for which financial information is available and for which operating results are regularly reviewed by segment management. We have one reporting unit
Goodwill impairment depends on reporting-unit valuation, qualitative assessments, and a control-premium estimate based on hypothetical buyer synergies.
New
Comparison of Years Ended March 31, 2026 and 2025
Revenue grew 4%, with service revenue up 6% from maintenance renewals and cloud and subscription expansion, making timing and mix important.
New
Cost of Revenue and Gross Profit
Product revenue rose 3% while product cost fell 12%, reflecting software licensing mix that increased product gross margin by two points.
New
Research and development. Research and development expenses consist primarily of personnel expenses, fees for outside consultants, overhead and related expenses associated with the development of new products and the enhancement of existing products
Research and development expense increased 4%, mainly from higher employee incentive compensation, despite lower depreciation and more software capitalization.
New
Sales and marketing. Sales and marketing expenses consist primarily of personnel expenses and commissions, overhead and other expenses associated with selling activities and marketing programs such as trade shows, seminars, advertising, and new product launch activities
Sales and marketing expense declined 1% because of fewer event and employee costs, partly offset by higher variable incentive compensation.
New
General and administrative. General and administrative expenses consist primarily of personnel expenses for executive, financial, legal, and human resource employees, overhead, and other corporate expenditures
General and administrative expense increased 7% from incentive compensation, professional services, and software costs, partly offset by greater software capitalization.
New
Commitment and Contingencies
Legal claims and other contingencies may require recorded losses or disclosures when outcomes are probable, reasonably possible, or difficult to estimate.
New
management as of the date of this Annual Report, is expected to have a material adverse effect on our financial condition, results of operations or cash flows
Product warranties cover software for 60–90 days, hardware for 60 days to 12 months, and support services, subject to exclusions.
New
Liquidity and Capital Resources
New
Cash, cash equivalents, marketable securities and investments
New
At March 31, 2026, cash, short-term and long-term marketable securities in the United States was approximately $488.4 million, while cash and short-term investments held outside of the United States was approximately $216.7 million
New
Fiscal year 2026 compared to fiscal year 2025
New
Net cash used in financing activities decreased $65.3 million to $76.7 million during the fiscal year ended March 31, 2026, compared to $142.0 million of net cash used in financing activities during the fiscal year ended March 31, 2025
New
We have a five-year, $600 million senior secured revolving credit facility under our Third Amended and Restated Credit Agreement, which matures on October 4, 2029. The facility includes a $75 million letter-of-credit sub-facility and may be used for working capital and other general corporate purposes
New
At March 31, 2026, the total accrual of our retirement obligation for our chairman and CEO was $1.2 million. The payment stream for this retirement obligation is based upon the retirement date which is currently not determinable
New
We are actively managing the business to generate cash flow and believe that we currently have adequate liquidity. We believe that these factors will allow us to meet our anticipated funding requirements for at least the next twelve months and the foreseeable future
New
Recent Accounting Standards
New
Ite m 7A. Quantitative and Qualitative Disclosures About Market Risk
New
At March 31, 2026 and periodically throughout the year, we have maintained cash balances in various operating accounts in excess of federally insured limits. We limit the amount of credit exposure with any one financial institution by evaluating the creditworthiness of the financial institutions with which we invest
New
Evaluation of Disclosure Controls and Procedures
New
Changes in Internal Control over Financial Reporting
New
Management's Report on Internal Control Over Financial Reporting
New
Ite m 9B. Other Information
New
Ite m 10. Directors, Executive Officers and Corporate Governance
New
The information required by this Item 10 relating to our executive officers will be included under the heading “Executive Officers” in our Proxy Statement and is incorporated herein by reference
New
Ite m 11. Executive Compensation
New
Ite m 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
New
It em 13. Certain Relationships and Related Transactions, and Director Independence
New
Amended and Restated By-laws of NetScout (filed as Exhibit 3.1 to NetScout’s current Report on Form 8-K, SEC File No. 000-26251, filed on May 11, 2020 and incorporated herein by reference)
New
Form of Amended and Restated Indemnification Agreement between NetScout and each director and executive officer (filed as Exhibit 10.1 to NetScout's Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2013, SEC File No. 000-26251, filed January 28, 2014, and incorporated herein by reference)
New
Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)
New
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes–Oxley Act of 2002 (furnished herewith)
New
Indicates a management contract or compensatory plan or arrangement
New
Opinions on the Financial Statements and Internal Control over Financial Reporting
New
Definition and Limitations of Internal Control over Financial Reporting
New
Revenue from Contracts with Customers - Identification of Performance Obligations
New
Liabilities and Stockholders’ Equity
New
Commitments and contingencies (Note 19)
New
Total net change in market value of investments
New
NOTE 1 – NAT URE OF BUSINESS
New
Cash and Cash Equivalents and Marketable Securities
New
Uncollected Deferred Revenue
New
Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of investments, trade accounts receivable and accounts payable. NetScout's cash, cash equivalents, and marketable securities are placed with financial institutions with high credit standings
New
During the fiscal years ended March 31, 2026, 2025, and 2024 , no direct customers or channel partners accounted for more than 10 % of the Company's total revenue
New
Trade Receivable Valuations
New
Notes to Consolidated Financial Statements—(Continued)
New
Valuation of Goodwill and Intangible Assets
New
Reporting units are determined based on the components of a Company's operating segments that constitute a business for which financial information is available and for which operating results are regularly reviewed by segment management. The Company has one reporting unit
New
Capitalized Software Development Costs
New
Derivative Financial Instruments
New
Comprehensive Income (Loss)
New
Recent Accounting Standards Recently Adopted
New
Recent Accounting Standards Not Yet Adopted
New
The Company exercises judgment and uses estimates in connection with determining the amounts of product and service revenues to be recognized in each accounting period
New
Generally, the Company's contracts are accounted for individually. However, when contracts are closely interrelated and dependent on each other, it may be necessary to account for two or more contracts as one to reflect the substance of the group of contracts
New
Costs to Obtain Contracts
New
Allowance for Credit Losses
New
NOTE 4 – CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS
New
NOTE 5 – FAIR VALUE MEASUREMENTS
New
NOTE 6 – INVENTORIES AND DEFERRED COSTS
New
The Company has one reporting unit. Goodwill is tested for impairment at a reporting unit level at least annually, as of January 31, and on an interim basis if an event occurs or circumstances change (a "Triggering Event") that would indicate the fair value of the reporting unit is below its carrying value
New
During fiscal year 2026 and 2025, the Company completed its annual goodwill impairment tests using the qualitative assessment, and the Company concluded that it was more likely than not that the fair value of the reporting unit exceeded its carrying value
New
At March 31, 2026 and 2025, the carrying amounts of goodwill were $ 1.1 billion and $ 1.1 billion, respectively
New
NOTE 10 – DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
New
All of the Company's foreign exchange forward contract derivative instruments are utilized for risk management purposes, and the Company does not use derivatives for speculative trading purposes. These contracts will mature over the next twelve months and are expected to impact earnings on or before maturity
New
Notional amounts represent the gross contract/notional amount of the derivatives outstanding
New
The amount represents reclassification from other comprehensive income to earnings that occurs when the hedged item affects earnings
New
NOTE 11 – RESTRUCTURING CHARGES
New
At the Company's election, revolving loans under the Third Amended and Restated Credit Agreement bear interest at either (a) a term SOFR rate plus a credit spread adjustment of 0.10 % or (b) an Alternate Base Rate (defined in a customary manner), in each case plus an applicable margin
New
NOTE 13 – NET INCOME (LOSS) PER SHARE
New
respectively. At March 31, 2026 , approximately 20.5 million shares of common stock remained available to be purchased under the current program
New
2011 Employee Stock Purchase Plan
New
2019 Equity Incentive Plan
New
The 2019 Plan has been amended several times, including most recently on September 10, 2025, when the Company's stockholders approved an amendment and restatement to the 2019 Plan to further increase the number of shares reserved for issuance by 3,500,000
New
At March 31, 2026 , there were 8,549,468 shares of common stock available for grant under the 2019 Plan
New
Defined Benefit Pension Plan
New
The Company recognizes on its balance sheet a liability equal to the under-funded benefit obligation of its defined benefit pension plan. Actuarial gains or losses are not recognized as components of net periodic benefit cost, but are recognized, net of tax, as a component of other comprehensive income (loss)
New
Fair value of plan assets, at end of year
New
Rate of compensation increase
New
Most of the Company's lease agreements contain variable payments, primarily for common area maintenance, which are expensed as incurred and not included in the measurement of the ROU assets and lease liabilities
New
Weighted average discount rate - operating leases
New
Unconditional Purchase Obligations
New
NOTE 20 – SEGMENT AND GEOGRAPHIC INFORMATION
New
NOTE 21 – SUBSEQUENT EVENT

Dropped

DroppedRisks 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
Broad economic and information-technology spending weakness affecting growth and results.
DroppedRisks Related to Our Business and Industry
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
Tariffs, sanctions, and trade barriers indirectly affecting operations despite limited physical-goods dependence.
DroppedRisks Related to Our Business and Industry
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
Product defects or quality problems causing correction costs, delayed revenue, lawsuits, and reputational damage.
DroppedRisks Related to Our Business and Industry
The occurrence or discovery of these types of errors or failures could have a material and adverse impact on our business, operating results, and financial condition. Any such errors, defects, or security vulnerabilities could also adversely affect the market's perception of our products and business
Cybersecurity compromises involving NetScout, third parties, or company data.
DroppedRisks Related to Our Business and Industry
Our ability to quickly and successfully recover from a disaster, public health crisis, or other business continuity event could affect our ability to deliver our products and negatively impact our business reputation
Disasters, public-health crises, war, terrorism, or facility closures disrupting delivery.
DroppedRisks Related to Our Business and Industry
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
Failure to keep products current amid rapid technology change, AI, and competition.
DroppedRisks Related to Our Business and Industry
Our reliance on sole source suppliers could adversely impact our business
Dependence on sole-source or limited suppliers for network interface cards and proprietary hardware.
DroppedRisks Related to Our Business and Industry
Increased customer demands on our technical support services may adversely affect our relationships with our customers and our financial results
Rising technical-support demands harming customer relationships and financial results.
DroppedRisks Related to Our Business and Industry
The success of our business depends, in part, on the continued growth in the market for and the continued commercial demand for service delivery, service assurance and network security solutions
Dependence on continued market demand for service delivery, assurance, and network-security solutions.
DroppedRisks Related to Our Business and Industry
Failure to manage growth properly and to implement enhanced automated systems, including systems with AI, could adversely impact our business
Managing growth, succession, and automated systems, including AI-enabled systems.
DroppedRisks Related to Our Business and Industry
Any disruptions or ineffectiveness relating to our systems implementations and enhancements could adversely affect our ability to process customer orders, ship products, provide services and support to our customers, bill and track our customers, fulfill contractual obligations, and otherwise run our business
IT and operational-system disruptions affecting orders, shipping, billing, support, and reporting.
DroppedRisks Related to Our Business and Industry
Our business and operations, and the operations of our customers, partners, and/or suppliers, may be adversely affected by epidemics and pandemics
Epidemics and pandemics affecting NetScout, customers, suppliers, partners, and markets.
DroppedRisks Related to Our Intellectual Property
Necessary licenses for third-party technology may not be available to us on commercially reasonable terms or at all
DroppedRisks Related to Our Intellectual Property
Our success depends on our ability to protect our intellectual property rights
DroppedRisks Related to Our Intellectual Property
Others may claim that we infringe on their intellectual property rights
DroppedRisks 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
DroppedRisks Related to Our Liquidity and Financial Condition
Any failure to meet our debt obligations could damage our business
DroppedRisks Related to Our Liquidity and Financial Condition
We may fail to secure necessary additional financing
DroppedRisks Related to Our Liquidity and Financial Condition
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
DroppedRisks Related to Our Liquidity and Financial Condition
Our business is subject to evolving ESG laws, regulations and expectations that could expose us to numerous risks, including risks to our reputation, business, financial performance and growth
DroppedRisks Related to Our Liquidity and Financial Condition
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
DroppedRisks Related to Our Liquidity and Financial Condition
acquire. Our inability to effectively consummate acquisitions on favorable terms could significantly impact our ability to compete effectively in our targeted markets and could negatively affect our results of operations
DroppedRisks Related to Our Liquidity and Financial Condition
We face significant competition from other technology companies
DroppedRisks Related to Our Liquidity and Financial Condition
Uncertainties of regulation of the Internet and data traveling over the Internet or over the use of AI and evolving technologies could have a material and adverse impact on our financial condition and results of operations
DroppedRisks Related to Our Liquidity and Financial Condition
considerable resources and may necessitate changes to our services, information technologies, systems, and practices and to those of any third parties that process personal information on our behalf
DroppedRisks Related to Our Liquidity and Financial Condition
In addition to data privacy and security laws, we are also bound by contractual obligations related to data privacy and security, and our efforts to comply with such obligations may not be successful
DroppedRisks Related to Our Liquidity and Financial Condition
Our actual operating results may differ significantly from our guidance
DroppedRisks Related to Our Liquidity and Financial Condition
Our effective tax rate may fluctuate, which could increase our income tax expense and reduce our net income
DroppedRisks Related to Our Liquidity and Financial Condition
We may be impacted by changes in taxation, trade, tariffs, and other regulatory requirements
DroppedRisks Related to Our Liquidity and Financial Condition
Foreign currency exchange rates may adversely affect our financial statements
DroppedRisks Related to Our Liquidity and Financial Condition
Our disclosure controls and procedures and internal control over financial reporting may not be effective
DroppedRisks Related to Our Liquidity and Financial Condition
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

Reworded

90% rewritten
Critical Accounting Policies and Estimates
The wording now says revenue recognition and goodwill estimates require “significant judgment,” while retaining the same critical-policy focus.
Was: Our estimates and judgments related to critical accounting policies could be inaccurate

All 89 risk factors

Headings as the filing states them, in filing order.

Other

01Global and Macroeconomic ConditionsNew
02Use of Non-GAAP Financial MeasuresNew
03Critical Accounting Policies and Estimates90% rewritten
04We exercise judgment and use estimates in connection with determining the amounts of product and service revenues to be recognized in each accounting periodNew
05Generally, our contracts are accounted for individually. However, when contracts are closely interrelated and dependent on each other, it may be necessary to account for two or more contracts as one to reflect the substance of the group of contractsNew
06Reporting units are determined based on the components of a company's operating segments that constitute a business for which financial information is available and for which operating results are regularly reviewed by segment management. We have one reporting unitNew
07Comparison of Years Ended March 31, 2026 and 2025New
08Cost of Revenue and Gross ProfitNew
09Research and development. Research and development expenses consist primarily of personnel expenses, fees for outside consultants, overhead and related expenses associated with the development of new products and the enhancement of existing productsNew
10Sales and marketing. Sales and marketing expenses consist primarily of personnel expenses and commissions, overhead and other expenses associated with selling activities and marketing programs such as trade shows, seminars, advertising, and new product launch activitiesNew
11General and administrative. General and administrative expenses consist primarily of personnel expenses for executive, financial, legal, and human resource employees, overhead, and other corporate expendituresNew
12Commitment and ContingenciesNew
13management as of the date of this Annual Report, is expected to have a material adverse effect on our financial condition, results of operations or cash flowsNew
14Liquidity and Capital ResourcesNew
15Cash, cash equivalents, marketable securities and investmentsNew
16At March 31, 2026, cash, short-term and long-term marketable securities in the United States was approximately $488.4 million, while cash and short-term investments held outside of the United States was approximately $216.7 millionNew
17Fiscal year 2026 compared to fiscal year 2025New
18Net cash used in financing activities decreased $65.3 million to $76.7 million during the fiscal year ended March 31, 2026, compared to $142.0 million of net cash used in financing activities during the fiscal year ended March 31, 2025New
19We have a five-year, $600 million senior secured revolving credit facility under our Third Amended and Restated Credit Agreement, which matures on October 4, 2029. The facility includes a $75 million letter-of-credit sub-facility and may be used for working capital and other general corporate purposesNew
20At March 31, 2026, the total accrual of our retirement obligation for our chairman and CEO was $1.2 million. The payment stream for this retirement obligation is based upon the retirement date which is currently not determinableNew
21We are actively managing the business to generate cash flow and believe that we currently have adequate liquidity. We believe that these factors will allow us to meet our anticipated funding requirements for at least the next twelve months and the foreseeable futureNew
22Recent Accounting StandardsNew
23Ite m 7A. Quantitative and Qualitative Disclosures About Market RiskNew
24At March 31, 2026 and periodically throughout the year, we have maintained cash balances in various operating accounts in excess of federally insured limits. We limit the amount of credit exposure with any one financial institution by evaluating the creditworthiness of the financial institutions with which we investNew
25Evaluation of Disclosure Controls and ProceduresNew
26Changes in Internal Control over Financial ReportingNew
27Management's Report on Internal Control Over Financial ReportingNew
28Ite m 9B. Other InformationNew
29Ite m 10. Directors, Executive Officers and Corporate GovernanceNew
30The information required by this Item 10 relating to our executive officers will be included under the heading “Executive Officers” in our Proxy Statement and is incorporated herein by referenceNew
31Ite m 11. Executive CompensationNew
32Ite m 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder MattersNew
33It em 13. Certain Relationships and Related Transactions, and Director IndependenceNew
34Amended and Restated By-laws of NetScout (filed as Exhibit 3.1 to NetScout’s current Report on Form 8-K, SEC File No. 000-26251, filed on May 11, 2020 and incorporated herein by reference)New
35Form of Amended and Restated Indemnification Agreement between NetScout and each director and executive officer (filed as Exhibit 10.1 to NetScout's Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2013, SEC File No. 000-26251, filed January 28, 2014, and incorporated herein by reference)New
36Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith) New
37Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes–Oxley Act of 2002 (furnished herewith)New
38Indicates a management contract or compensatory plan or arrangementNew
39Opinions on the Financial Statements and Internal Control over Financial ReportingNew
40Definition and Limitations of Internal Control over Financial ReportingNew
41Revenue from Contracts with Customers - Identification of Performance ObligationsNew
42Liabilities and Stockholders’ EquityNew
43Commitments and contingencies (Note 19)New
44Total net change in market value of investmentsNew
45NOTE 1 – NAT URE OF BUSINESSNew
46Cash and Cash Equivalents and Marketable SecuritiesNew
47Uncollected Deferred RevenueNew
48Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of investments, trade accounts receivable and accounts payable. NetScout's cash, cash equivalents, and marketable securities are placed with financial institutions with high credit standingsNew
49During the fiscal years ended March 31, 2026, 2025, and 2024 , no direct customers or channel partners accounted for more than 10 % of the Company's total revenueNew
50Trade Receivable ValuationsNew
51Notes to Consolidated Financial Statements—(Continued)New
52Valuation of Goodwill and Intangible AssetsNew
53Reporting units are determined based on the components of a Company's operating segments that constitute a business for which financial information is available and for which operating results are regularly reviewed by segment management. The Company has one reporting unitNew
54Capitalized Software Development CostsNew
55Derivative Financial InstrumentsNew
56Comprehensive Income (Loss)New
57Recent Accounting Standards Recently AdoptedNew
58Recent Accounting Standards Not Yet AdoptedNew
59The Company exercises judgment and uses estimates in connection with determining the amounts of product and service revenues to be recognized in each accounting periodNew
60Generally, the Company's contracts are accounted for individually. However, when contracts are closely interrelated and dependent on each other, it may be necessary to account for two or more contracts as one to reflect the substance of the group of contractsNew
61Costs to Obtain ContractsNew
62Allowance for Credit LossesNew
63NOTE 4 – CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTSNew
64NOTE 5 – FAIR VALUE MEASUREMENTSNew
65NOTE 6 – INVENTORIES AND DEFERRED COSTSNew
66The Company has one reporting unit. Goodwill is tested for impairment at a reporting unit level at least annually, as of January 31, and on an interim basis if an event occurs or circumstances change (a "Triggering Event") that would indicate the fair value of the reporting unit is below its carrying valueNew
67During fiscal year 2026 and 2025, the Company completed its annual goodwill impairment tests using the qualitative assessment, and the Company concluded that it was more likely than not that the fair value of the reporting unit exceeded its carrying valueNew
68At March 31, 2026 and 2025, the carrying amounts of goodwill were $ 1.1 billion and $ 1.1 billion, respectivelyNew
69NOTE 10 – DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIESNew
70All of the Company's foreign exchange forward contract derivative instruments are utilized for risk management purposes, and the Company does not use derivatives for speculative trading purposes. These contracts will mature over the next twelve months and are expected to impact earnings on or before maturityNew
71Notional amounts represent the gross contract/notional amount of the derivatives outstandingNew
72The amount represents reclassification from other comprehensive income to earnings that occurs when the hedged item affects earningsNew
73NOTE 11 – RESTRUCTURING CHARGESNew
74At the Company's election, revolving loans under the Third Amended and Restated Credit Agreement bear interest at either (a) a term SOFR rate plus a credit spread adjustment of 0.10 % or (b) an Alternate Base Rate (defined in a customary manner), in each case plus an applicable marginNew
75NOTE 13 – NET INCOME (LOSS) PER SHARENew
76respectively. At March 31, 2026 , approximately 20.5 million shares of common stock remained available to be purchased under the current programNew
772011 Employee Stock Purchase PlanNew
782019 Equity Incentive PlanNew
79The 2019 Plan has been amended several times, including most recently on September 10, 2025, when the Company's stockholders approved an amendment and restatement to the 2019 Plan to further increase the number of shares reserved for issuance by 3,500,000 New
80At March 31, 2026 , there were 8,549,468 shares of common stock available for grant under the 2019 PlanNew
81Defined Benefit Pension PlanNew
82The Company recognizes on its balance sheet a liability equal to the under-funded benefit obligation of its defined benefit pension plan. Actuarial gains or losses are not recognized as components of net periodic benefit cost, but are recognized, net of tax, as a component of other comprehensive income (loss)New
83Fair value of plan assets, at end of yearNew
84Rate of compensation increaseNew
85Most of the Company's lease agreements contain variable payments, primarily for common area maintenance, which are expensed as incurred and not included in the measurement of the ROU assets and lease liabilitiesNew
86Weighted average discount rate - operating leasesNew
87Unconditional Purchase ObligationsNew
88NOTE 20 – SEGMENT AND GEOGRAPHIC INFORMATIONNew
89NOTE 21 – SUBSEQUENT EVENTNew

Other Netscout Systems 10-Ks

FY2025 10-K risk factors
33 risks
This is a new filing, dominated by risks related to intense market competition, sole-source hardware suppliers, and evolving regulatory compliance for data and AI technology.
Filed May 15, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.