M&A activity

Cybersecurity firm Netskope is set to IPO on Nasdaq under the ticker “NTSK,” priced at $19 per share, valuing the company at $7.3 billion. The IPO, expected to raise $908.2 million, comes amidst a resurgence in IPO activity despite economic headwinds. While some IPOs face initial volatility, the cybersecurity sector is experiencing a surge in M&A, underscored by significant acquisitions like Google’s Wiz purchase. Netskope, with $707 million in ARR and 33% year-over-year growth, offers cloud-native security solutions, competing with Broadcom, Cisco, Palo Alto Networks, and Zscaler.

TEN Holdings, Inc. (Nasdaq: XHLD) reported Q1 2025 revenue of $739,000, down 34.5% YoY due to reduced virtual/hybrid and physical event demand, though gross margin remained stable at 74.8%. Operating costs surged 328% to $5.17 million, driven by $3.5 million in IPO-related stock compensation and increased marketing, widening the net loss to $4.84 million ($0.18/share). CEO Randy Jones emphasized strategic investments in AI, platform upgrades, and PaaS integration to boost recurring revenue, alongside exploring M&A opportunities. Cash reserves rose to $247,000 despite a $6.79 million operating cash burn. The 2025 strategy focuses on scaling subscription models, AI analytics, and expanding digital marketing efforts.