Revenue has increased steadily over the past several years, growing from approximately $2.17 billion in 2024 to over $3.35 billion in 2026. Quarterly results show consistent sequential top-line growth, while operating losses have narrowed slightly but remain negative on an annual basis. Gross margins have remained robust and stable above 76%.

Revenue growth is driven primarily by expanding subscriptions and usage-based sales in the cloud security segment. The company’s investments in sales & marketing and R&D have supported top-line expansion and product innovation, critical for sustaining demand in a competitive space.

Gross margins are strong at around 76.8% in the latest fiscal year, reflecting efficient cloud operating leverage. However, operating margins remain negative, with operating expenses outpacing gross profits due to heavy investments in R&D (27% of revenue) and sales efforts (approx. 44.6%). EBITDA margins improved to 5.6% in 2026 but still indicate limited profitability.

Earnings quality reflects improving operational leverage and cost controls but remains impacted by non-cash charges such as depreciation and amortization and elevated operating expenses. Interest income has contributed positively to pre-tax income but has not yet offset operating net losses fully. Management appears focused on balancing growth and progress toward profitability.

Revenue grew from $2.17 billion in 2024 to $3.35 billion in 2026, a compound annual growth rate (CAGR) of approximately 23%. On a quarterly basis, revenue increased about 5.6% sequentially most recently, with YoY quarterly growth near 35% in Q2 2026 compared to Q2 2025.

EPS has turned positive on a quarterly basis recently (Q2 2026 EPS of $1.19 vs. -$0.02 net income last quarter reported in 10-Q), signaling significant margin improvement and earnings momentum. The annual EPS remains negative, reflecting the longer-term investment horizon.

Key drivers include accelerated cloud adoption, increasing demand for zero trust network security, expanding global enterprise footprint, and innovation in product offerings. Sustained R&D investment continues to fuel product differentiation.

Growth has been organic with no recent major acquisitions disclosed, supporting sustainability. However, the high level of sales and marketing spend suggests a growth strategy still reliant on market penetration and customer acquisition investments.

Gross margin has remained stable around 76-77%, reflecting scalable cloud infrastructure. Operating margins have improved slightly but remain negative at approximately -4% annually. EBITDA margins improved from 3% in 2024 to 5.6% in 2026, indicating improved operational leverage.

Return on equity and assets remain challenged due to negative net income, though improved EPS trends suggest potential future improvement in returns as profitability develops.

Gross margins appear sustainable given cloud-based scalable costs. Operating margins may continue to improve as the company scales, provided expenses grow more slowly than revenue. However, near-term profitability is challenged by elevated investments.