# EDGAR Filing Document

**Accession Number:** 0001078075
**File Stem:** 0001628280-25-038913
**Filing Date:** 2025-8
**Character Count:** 311523
**Document Hash:** 7383705921166c51e526398ce1540ad9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-25-038913.hdr.sgml**: 20250807

**ACCESSION NUMBER**: 0001628280-25-038913

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 97

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250807

**DATE AS OF CHANGE**: 20250807

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NETSCOUT SYSTEMS INC
- **CENTRAL INDEX KEY:** 0001078075
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 042837575
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-26251
- **FILM NUMBER:** 251194472

**BUSINESS ADDRESS:**
- **STREET 1:** 310 LITTLETON ROAD
- **CITY:** WESTFORD
- **STATE:** MA
- **ZIP:** 01886
- **BUSINESS PHONE:** 978-614-4000

**MAIL ADDRESS:**
- **STREET 1:** 310 LITTLETON ROAD
- **CITY:** WESTFORD
- **STATE:** MA
- **ZIP:** 01886

?xml version='1.0' encoding='ASCII'? ntct-20250630

**Table of Contents**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

**FORM 10-Q** 

**(Mark One)**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended June 30, 2025**

**OR**

---

| | |
|:---|:---|
| ☐ | **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
| | **For the transition period from <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> to <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>** |

---

**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;** 

**Commission file number 000-26251** 

**NETSCOUT SYSTEMS, INC.** 

**(Exact Name of Registrant as Specified in Its Charter)**

---

| | |
|:---|:---|
| **Delaware** | **04-2837575** |
| **(State or Other Jurisdiction of<br>Incorporation or Organization)** | **(IRS Employer<br>Identification No.)** |

---

**310 Littleton Road, Westford, MA 01886** 

**(978) 614-4000** 

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered:** |
| Common Stock, $0.001 par value per share | NTCT | Nasdaq Global Select Market |

---

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).&nbsp;&nbsp;&nbsp;&nbsp;Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Large accelerated filer ☒&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accelerated filer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ☐&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-accelerated filer ☐&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Smaller reporting company&nbsp;&nbsp;&nbsp;&nbsp;☐

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Emerging growth company&nbsp;&nbsp;&nbsp;&nbsp;☐

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

The number of shares outstanding of the registrant's common stock, par value $0.001 per share, as of July 28, 2025 was 71,875,269.

------

**Table of Contents**

**NETSCOUT SYSTEMS, INC.**

**FORM 10-Q**

**FOR THE QUARTER ENDED JUNE 30, 2025** 

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **<u>CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS</u>** | **<u>CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS</u>** | <u>[1](#iaa8f8ecd8f9f4060b121b197c25175b8_10)</u> |
| **<u>[PART I: FINANCIAL INFORMATION](#iaa8f8ecd8f9f4060b121b197c25175b8_10)</u>** | **<u>[PART I: FINANCIAL INFORMATION](#iaa8f8ecd8f9f4060b121b197c25175b8_10)</u>** |  |
| ***Item 1.*** | ***<u>[Unaudited Financial Statements:](#iaa8f8ecd8f9f4060b121b197c25175b8_13)</u>*** |  |
|  | <u>[Consolidated Balance Sheets: At](#iaa8f8ecd8f9f4060b121b197c25175b8_16)June 30, 2025[and](#iaa8f8ecd8f9f4060b121b197c25175b8_16)March 31, 2025</u> | <u>[2](#iaa8f8ecd8f9f4060b121b197c25175b8_16)</u> |
|  | <u>[Consolidated Statements of Operations: For the](#iaa8f8ecd8f9f4060b121b197c25175b8_19)three months ended June 30, 2025[and](#iaa8f8ecd8f9f4060b121b197c25175b8_19)2024</u> | <u>[3](#iaa8f8ecd8f9f4060b121b197c25175b8_19)</u> |
|  | <u>[Consolidated Statements of Comprehensive](#iaa8f8ecd8f9f4060b121b197c25175b8_22)[Loss](#iaa8f8ecd8f9f4060b121b197c25175b8_22)[: For the](#iaa8f8ecd8f9f4060b121b197c25175b8_22)three months ended June 30, 2025[and](#iaa8f8ecd8f9f4060b121b197c25175b8_22)2024</u> | <u>[4](#iaa8f8ecd8f9f4060b121b197c25175b8_22)</u> |
|  | <u>[Consolidated Statements of Stockholder](#iaa8f8ecd8f9f4060b121b197c25175b8_28)[s](#iaa8f8ecd8f9f4060b121b197c25175b8_28)['](#iaa8f8ecd8f9f4060b121b197c25175b8_28)[Equity: For the](#iaa8f8ecd8f9f4060b121b197c25175b8_28)three months ended June 30, 2025[and](#iaa8f8ecd8f9f4060b121b197c25175b8_28)2024</u> | <u>[5](#iaa8f8ecd8f9f4060b121b197c25175b8_25)</u> |
|  | <u>[Consolidated Statements of Cash Flows: For the](#iaa8f8ecd8f9f4060b121b197c25175b8_28)three months ended June 30, 2025[and](#iaa8f8ecd8f9f4060b121b197c25175b8_28)2024</u> | <u>[6](#iaa8f8ecd8f9f4060b121b197c25175b8_28)</u> |
|  | <u>[Notes to Consolidated Financial Statements](#iaa8f8ecd8f9f4060b121b197c25175b8_31)</u> | <u>[7](#iaa8f8ecd8f9f4060b121b197c25175b8_31)</u> |
| ***Item 2.*** | ***<u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#iaa8f8ecd8f9f4060b121b197c25175b8_100)</u>*** | <u>[23](#iaa8f8ecd8f9f4060b121b197c25175b8_100)</u> |
| ***Item 3.*** | ***<u>[Quantitative and Qualitative Disclosures About Market Risk](#iaa8f8ecd8f9f4060b121b197c25175b8_130)</u>*** | <u>[35](#iaa8f8ecd8f9f4060b121b197c25175b8_130)</u> |
| ***Item 4.*** | ***<u>[Controls and Procedures](#iaa8f8ecd8f9f4060b121b197c25175b8_133)</u>*** | <u>[35](#iaa8f8ecd8f9f4060b121b197c25175b8_133)</u> |
| **<u>[PART II: OTHER INFORMATION](#iaa8f8ecd8f9f4060b121b197c25175b8_136)</u>** | **<u>[PART II: OTHER INFORMATION](#iaa8f8ecd8f9f4060b121b197c25175b8_136)</u>** |  |
| ***Item 1.*** | ***<u>[Legal Proceedings](#iaa8f8ecd8f9f4060b121b197c25175b8_139)</u>*** | <u>[36](#iaa8f8ecd8f9f4060b121b197c25175b8_139)</u> |
| ***Item 1A.*** | ***<u>[Risk Factors](#iaa8f8ecd8f9f4060b121b197c25175b8_142)</u>*** | <u>[36](#iaa8f8ecd8f9f4060b121b197c25175b8_142)</u> |
| ***Item 2.*** | ***<u>[Unregistered Sales of Equity Securities and Use of Proceeds](#iaa8f8ecd8f9f4060b121b197c25175b8_145)</u>*** | <u>[36](#iaa8f8ecd8f9f4060b121b197c25175b8_145)</u> |
| ***Item 3.*** | ***<u>Defaults Upon Senior Securities</u>*** | <u>[36](#iaa8f8ecd8f9f4060b121b197c25175b8_148)</u> |
| ***Item 4.*** | ***<u>Mine Safety Disclosures</u>*** | <u>[36](#iaa8f8ecd8f9f4060b121b197c25175b8_151)</u> |
| ***Item 5.*** | ***<u>Other Information</u>*** | <u>[37](#iaa8f8ecd8f9f4060b121b197c25175b8_154)</u> |
| ***Item 6.*** | ***<u>[Exhibits](#iaa8f8ecd8f9f4060b121b197c25175b8_163)</u>*** | <u>[38](#iaa8f8ecd8f9f4060b121b197c25175b8_163)</u> |
| ***<u>[SIGNATURES](#iaa8f8ecd8f9f4060b121b197c25175b8_166)</u>*** |  | <u>[39](#iaa8f8ecd8f9f4060b121b197c25175b8_166)</u> |

---

Unless the context suggests otherwise, references in this Quarterly Report on Form 10-Q, or Quarterly Report, to "NetScout," the "Company," "we," "us," and "our" refer to NetScout Systems, Inc. and, where appropriate, our consolidated subsidiaries.

NetScout, the NetScout logo, Adaptive Service Intelligence and other trademarks or service marks of NetScout appearing in this Quarterly Report are the property of NetScout Systems, Inc. and/or its subsidiaries and/or affiliates in the United States and/or other countries. Any third-party trade names, trademarks and service marks appearing in this Quarterly Report are the property of their respective holders.

------

**Table of Contents**

**Cautionary Statement Concerning Forward-Looking Statements**

In addition to historical information, the following discussion and other parts of this Quarterly Report contain forward-looking statements under Section 21E of the Securities Exchange Act of 1934, as amended, and other federal securities laws. These forward-looking statements involve risks and uncertainties. These statements relate to future events or our future financial performance and are identified by terminology such as "may," "will," "could," "should," "expects," "plans," "intends," "seeks," "anticipates," "believes," "estimates," "potential," or "continue," or the negative of such terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on these forward-looking statements. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors, including those described in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for our fiscal year ended March 31, 2025, filed with the Securities and Exchange Commission, and elsewhere in this Quarterly Report. These factors may cause our actual results to differ materially from any forward-looking statement. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. We cannot assure you that the results, events, and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.

The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make.

------

**Table of Contents**

**PART I: FINANCIAL INFORMATION**

***Item 1. Unaudited Financial Statements***

**NetScout Systems, Inc.**

**Consolidated Balance Sheets**

**(In thousands, except for per share data)**

---

| | | |
|:---|:---|:---|
| | **June 30,<br>2025**<br>**(Unaudited)** | **March 31,<br>2025** |
| **Assets** | | |
| Current assets: |  |  |
| Cash and cash equivalents | $489572 | $457415 |
| Marketable securities and investments | 42937 | 34058 |
| Accounts receivable and unbilled costs, net of allowance for credit losses of $92 and $214 at June 30, 2025 and March 31, 2025, respectively | 92200 | 163654 |
| Inventories and deferred costs | 13047 | 12891 |
| Prepaid income taxes | 14800 | 13380 |
| Prepaid expenses and other current assets | 31359 | 31786 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 683915 | 713184 |
| Fixed assets, net | 21494 | 21529 |
| Operating lease right-of-use assets | 36226 | 37717 |
| Goodwill | 1070155 | 1076383 |
| Intangible assets, net | 249902 | 258690 |
| Deferred income taxes | 72689 | 66294 |
| Long-term marketable securities | 10997 | 1004 |
| Other assets | 12048 | 11777 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $2157426 | $2186578 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| Accounts payable | $14016 | $18208 |
| Accrued compensation | 46978 | 56696 |
| Accrued other | 20310 | 19397 |
| Income taxes payable | 884 | 883 |
| Deferred revenue and customer deposits | 293911 | 301753 |
| Current portion of operating lease liabilities | 10883 | 10995 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 386982 | 407932 |
| Other long-term liabilities | 8132 | 8210 |
| Deferred tax liability | 2851 | 2643 |
| Accrued long-term retirement benefits | 29418 | 27379 |
| Long-term deferred revenue and customer deposits | 151842 | 147510 |
| Operating lease liabilities, net of current portion | 30650 | 32509 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 609875 | 626183 |
| Commitments and contingencies (Note 13) |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $0.001 par value:<br>5,000,000 shares authorized; no shares issued or outstanding at June 30, 2025 and March 31, 2025 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.001 par value:<br>300,000,000 shares authorized; 135,857,091 and 134,038,262 shares issued and 72,520,702 and 72,060,237 shares outstanding at June 30, 2025 and March 31, 2025, respectively | 135 | 134 |
| Additional paid-in capital | 3274682 | 3255333 |
| Accumulated other comprehensive income | 4337 | 4073 |
| Treasury stock at cost, 63,336,389 and 61,978,025 shares at June 30, 2025 and March 31, 2025, respectively | (1683481) | (1654702) |
| Accumulated deficit | (48122) | (44443) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 1547551 | 1560395 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $2157426 | $2186578 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**Table of Contents**

**NetScout Systems, Inc.**

**Consolidated Statements of Operations**

**(In thousands, except for per share data)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **June 30,** | **June 30,** |
| | **2025** | **2024** |
| Revenue: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product | $72993 | $61169 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service | 113754 | 113396 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 186747 | 174565 |
| Cost of revenue: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product | 11925 | 12004 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service | 31497 | 32365 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenue | 43422 | 44369 |
| Gross profit | 143325 | 130196 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development | 39789 | 42465 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 70595 | 70330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 27857 | 25581 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquired intangible assets | 11119 | 11614 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges | 529 | 16563 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment |  | 426967 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 149889 | 593520 |
| Loss from operations | (6564) | (463324) |
| Interest and other income (expense), net: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | 3211 | 3098 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (415) | (1945) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income (expense), net | 940 | 8475 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest and other income (expense), net | 3736 | 9628 |
| Loss before income tax expense (benefit) | (2828) | (453696) |
| Income tax expense (benefit) | 851 | (10320) |
| Net loss | $(3679) | $(443376) |
| &nbsp;&nbsp;&nbsp;&nbsp; Basic net loss per share | $(0.05) | $(6.20) |
| &nbsp;&nbsp;&nbsp;&nbsp; Diluted net loss per share | $(0.05) | $(6.20) |
| Weighted average common shares outstanding used in computing: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net loss per share - basic | 71729 | 71467 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net loss per share - diluted | 71729 | 71467 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**Table of Contents**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NetScout Systems, Inc.**

**Consolidated Statements of Comprehensive Loss**

**(In thousands)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **June 30,** | **June 30,** |
| | **2025** | **2024** |
| Net loss | $(3679) | $(443376) |
| Other comprehensive income (loss): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative translation adjustments | 143 | (131) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in market value of investments: |  |  |
| Changes in unrealized (losses) gains, net of taxes of $0 and $2, at June 30, 2025 and 2024, respectively | (1) | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net change in market value of investments | (1) | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in market value of derivatives: |  |  |
| Changes in market value of derivatives, net of taxes (benefit) of $78 and ($27), at June 30, 2025 and 2024, respectively | 252 | (90) |
| Reclassification adjustment for net (losses) gains included in net loss, net of (benefits) taxes of ($40) and $14, at June 30, 2025 and 2024, respectively | (130) | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net change in market value of derivatives | 122 | (44) |
| Other comprehensive income (loss) | 264 | (168) |
| Total comprehensive loss | $(3415) | $(443544) |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

**Table of Contents**

**NetScout Systems, Inc.**

**Consolidated Statements of Stockholders' Equity**

**(In thousands, except for per share data)**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Common Stock<br>Voting** | **Common Stock<br>Voting** | **Additional<br>Paid In<br>Capital** | **Accumulated<br>Other<br>Comprehensive<br>Income** | **Treasury Stock** | **Treasury Stock** | **Accumulated Deficit** | **Total<br>Stockholders'<br>Equity** |
| | **Common Stock<br>Voting** | **Common Stock<br>Voting** | **Additional<br>Paid In<br>Capital** | **Accumulated<br>Other<br>Comprehensive<br>Income** | **Treasury Stock** | **Treasury Stock** | **Accumulated Deficit** | **Total<br>Stockholders'<br>Equity** |
| | **Shares** | **Par<br>Value** | **Additional<br>Paid In<br>Capital** | **Accumulated<br>Other<br>Comprehensive<br>Income** | **Shares** | **Stated<br>Value** | **Accumulated Deficit** | **Total<br>Stockholders'<br>Equity** |
| Balance, March 31, 2025 | 134038262 | $134 | $3255333 | $4073 | 61978025 | $(1654702) | $(44443) | $1560395 |
| Net loss |  |  |  |  |  |  | (3679) | (3679) |
| Unrealized net investment losses |  |  |  | (1) |  |  |  | (1) |
| Unrealized net gains on derivative financial instruments |  |  |  | 122 |  |  |  | 122 |
| Cumulative translation adjustments |  |  |  | 143 |  |  |  | 143 |
| Issuance of common stock pursuant to vesting of restricted stock units | 1818829 | 1 |  |  |  |  |  | 1 |
| Stock-based compensation expense for restricted stock units granted to employees |  |  | 19349 |  |  |  |  | 19349 |
| Repurchase of treasury stock |  |  |  |  | 1358364 | (28779) |  | (28779) |
| Balance, June 30, 2025 | 135857091 | $135 | $3274682 | $4337 | 63336389 | $(1683481) | $(48122) | $1547551 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| | **Common Stock<br>Voting** | **Common Stock<br>Voting** | **Additional<br>Paid In<br>Capital** | **Accumulated<br>Other<br>Comprehensive<br>Income** | **Treasury Stock** | **Treasury Stock** | **Retained Earnings (Accumulated Deficit)** | **Total<br>Stockholders'<br>Equity** |
| | **Common Stock<br>Voting** | **Common Stock<br>Voting** | **Additional<br>Paid In<br>Capital** | **Accumulated<br>Other<br>Comprehensive<br>Income** | **Treasury Stock** | **Treasury Stock** | **Retained Earnings (Accumulated Deficit)** | **Total<br>Stockholders'<br>Equity** |
| | **Shares** | **Par<br>Value** | **Additional<br>Paid In<br>Capital** | **Accumulated<br>Other<br>Comprehensive<br>Income** | **Shares** | **Stated<br>Value** | **Retained Earnings (Accumulated Deficit)** | **Total<br>Stockholders'<br>Equity** |
| Balance, March 31, 2024 | 131316309 | $131 | $3181366 | $3572 | 59912093 | $(1615483) | $322479 | $1892065 |
| Net loss |  |  |  |  |  |  | (443376) | (443376) |
| Unrealized net investment gains |  |  |  | 7 |  |  |  | 7 |
| Unrealized net losses on derivative financial instruments |  |  |  | (44) |  |  |  | (44) |
| Cumulative translation adjustments |  |  |  | (131) |  |  |  | (131) |
| Issuance of common stock pursuant to vesting of restricted stock units | 1872919 | 2 |  |  |  |  |  | 2 |
| Stock-based compensation expense for restricted stock units granted to employees |  |  | 20632 |  |  |  |  | 20632 |
| Repurchase of treasury stock |  |  |  |  | 1965726 | (37159) |  | (37159) |
| Balance, June 30, 2024 | 133189228 | $133 | $3201998 | $3404 | 61877819 | $(1652642) | $(120897) | $1431996 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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 **NetScout Systems, Inc.**

**Consolidated Statements of Cash Flows**

**(In thousands)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **June 30,** | **June 30,** |
| | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(3679) | $(443376) |
| Adjustments to reconcile net loss to cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 14457 | 16405 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use asset amortization | 2497 | 2606 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of fixed assets | 5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense | 19959 | 21198 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment |  | 426967 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (6432) | (17077) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain in equity investment | (2490) | (8839) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable and unbilled costs | 71804 | 62715 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories and deferred costs | (1053) | (1567) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (1183) | 4152 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (3752) | 1686 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation and other expenses | (10116) | 8740 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (2974) | (3022) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 492 | (65) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (3983) | (32095) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 73552 | 38428 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of marketable securities and investments | (29031) | (12151) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales and maturity of marketable securities | 13618 | 10325 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of fixed assets | (1878) | (1268) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (17291) | (3094) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock under stock plans | 1 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock repurchases | (15014) | (25000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax withholding on restricted stock units | (13765) | (12159) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of long-term debt |  | (25000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (28778) | (62157) |
| Effect of exchange rate changes on cash and cash equivalents | 4674 | (638) |
| Net increase (decrease) in cash and cash equivalents | 32157 | (27461) |
| Cash and cash equivalents, beginning of period | 457415 | 389674 |
| Cash and cash equivalents, end of period | $489572 | $362213 |
| **Supplemental disclosures:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid for interest | $— | $1437 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid for income taxes | $8530 | $9143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Non-cash transactions:* |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfers of inventory to fixed assets | $476 | $645 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions to property, plant and equipment included in accounts payable | $457 | $253 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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**NetScout Systems, Inc.**

**Notes to Consolidated Financial Statements**

**(Unaudited)**

**NOTE 1 – BASIS OF PRESENTATION**

The accompanying unaudited interim consolidated financial statements have been prepared by NetScout Systems, Inc. (NetScout or the Company). Certain information and footnote disclosures normally included in financial statements prepared under United States generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). In the opinion of management, the unaudited interim consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the Company's financial position and stockholders' equity, results of operations and cash flows. The year-end consolidated balance sheet data and statement of stockholders' equity were derived from the Company's audited financial statements, but do not include all disclosures required by GAAP. The results reported in these unaudited interim consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. All significant intercompany accounts and transactions are eliminated in consolidation.

These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2025 filed with the SEC on May 15, 2025.

**Global and Macroeconomic Conditions**

The Company continues to closely monitor the current global and macroeconomic conditions, including the impacts of the ongoing war in Ukraine and hostilities in the Middle East, global geopolitical tension, stock market volatility, industry-specific capital spending trends, exchange rate fluctuations, inflation, interest rates, international trade relations (including trade protection measures, such as tariffs and other trade barriers) and the risk of a recession, including the manner and extent to which they have impacted and could continue to impact its business, customers, employees, supply chain, and distribution network. The full extent of the impacts of these global and macroeconomic trends remain uncertain. It is possible that the measures taken by the governments of countries affected and the resulting economic impacts may materially and adversely affect the Company's future results of operations, cash flows and financial position, as well as its customers.

The Company has the responsibility to evaluate whether conditions and/or events raise substantial doubt about its ability to meet its future financial obligations as they become due within one year after the date that the financial statements are issued. The Company remains cautiously optimistic amid ongoing macroeconomic uncertainty and constrained customer spending in the service provider market and remains firmly focused on driving product innovation, returning to annual revenue growth, and enhancing margins through continued disciplined cost management as it navigates the current macroeconomic landscape that may persist through fiscal year 2026. In addition to its cash, cash equivalents, marketable securities, and investments, based on covenant levels, as of June 30, 2025, the Company had $600 million available under a revolving credit facility.

The Company expects net cash provided by operations combined with cash, cash equivalents, marketable securities and investments and borrowing availability under the revolving credit facility to provide sufficient liquidity to fund current obligations, capital spending, debt service requirements and working capital requirements over at least the next twelve months.

**Recent Accounting Pronouncements**

In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03). Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. ASU 2024-03 provides guidance to expand disclosures related to the disaggregation of income statement expenses. The standard requires, in the notes to the financial statements, disclosure of specified information about certain costs and expenses which includes purchases of inventory, employee compensation, depreciation, and intangible asset amortization that are included on the face of the statements of income. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. ASU 2024-03 is effective for the Company beginning with its fiscal year ending March 31, 2028. The Company is in the process of evaluating the impact that the adoption of ASU 2024-03 will have on its disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 is intended to enhance the transparency and usefulness of income tax disclosures for decision-making. The amendments address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. The amendments are effective for annual periods beginning after December

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15, 2024. The amendments should be applied prospectively; however, retrospective application is also permitted. The Company is in the process of evaluating the impact the adoption of ASU 2023-09 will have on its income tax disclosures.

**NOTE 2 – REVENUE**

**Revenue Recognition Policy**

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.

The Company derives revenues primarily from the sale of network management tools and cybersecurity solutions for service provider and enterprise customers, which include hardware, software, and service offerings. The Company's product sales consist of software only offerings and offerings which include hardware appliances with embedded software that are essential to providing customers the intended functionality of the solutions.

The Company accounts for revenue once a legally enforceable contract with a customer has been approved by the parties and the related promises to transfer products or services have been identified. A contract is defined by the Company as an arrangement with commercial substance identifying payment terms, each party's rights and obligations regarding the products or services to be transferred and the amount the Company deems probable of collection. Customer contracts may include promises to transfer multiple products and services to a customer. Determining whether the products and services are considered distinct performance obligations that should be accounted for separately or as one combined performance obligation may require significant judgment. Revenue is recognized when control of the products or services are transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for products and services.

Product revenue is typically recognized upon fulfillment, provided a legally enforceable contract exists, control has passed to the customer, and in the case of software products, when the customer has the rights and ability to access the software, and collection of the related receivable is probable. If any significant obligations to the customer remain post-delivery, typically involving obligations relating to installation and acceptance by the customer, revenue recognition is deferred until such obligations have been fulfilled. The Company's service offerings include installation, integration, extended warranty and maintenance services, post-contract customer support, subscription-based services, stand-ready software-as-a-service (SAAS) and other professional services including consulting and training. The Company generally provides software and/or hardware support as part of product sales. Revenue related to the initial bundled software and hardware support is recognized ratably over the support period. In addition, customers can elect to purchase extended support agreements for periods after the initial software/hardware warranty expiration. Support services generally include rights to unspecified upgrades (when and if available), telephone and internet-based support, updates, bug fixes and hardware repair and replacement. Consulting services are recognized upon delivery or completion of performance depending on the terms of the underlying contract. Reimbursements of out-of-pocket expenditures incurred in connection with providing consulting services are included in services revenue, with the offsetting expense recorded in cost of service revenue. Training services include on-site and classroom training. Training revenues are recognized upon delivery of the training.

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.

Bundled arrangements are concurrent customer purchases of a combination of the Company's product and service offerings that may be delivered at various points in time. The Company allocates the transaction price among the performance obligations in an amount that depicts the relative standalone selling prices (SSP) of each obligation. Judgment is required to determine the SSP for each distinct performance obligation. The Company uses a range of amounts to estimate SSP for each of the products and services sold, based primarily on the performance obligation's historical pricing. The Company also considers its overall pricing objectives and practices across different sales channels and geographies, and market conditions. Generally, the Company has established SSP for a majority of its service performance obligations based on historical standalone sales. In certain instances, the Company has established SSP for services based upon an estimate of profitability and the underlying cost to fulfill those services. SSP has primarily been established for product performance obligations as the average or median selling price for which the performance obligation was recently sold, whether sold alone or sold as part of a bundle transaction. The Company reviews sales of the product performance obligations on a quarterly basis and updates, when appropriate, its SSP for such performance obligations to ensure that it reflects recent pricing experience. The Company's products are distributed through its direct sales force and indirect distribution channels through alliances with resellers and distributors. Revenue arrangements with resellers and distributors are recognized on a sell-in basis; that is, when control of the product transfers to the reseller or distributor. The Company records consideration given to a customer as a reduction of revenue to the extent they have recorded revenue from the customer. With limited exceptions, the Company's return policy does not allow product returns for a

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refund. Returns have been insignificant to date. In addition, the Company has a history of successfully collecting receivables from its resellers and distributors.

During the three months ended June 30, 2025, the Company recognized revenue of $97.0 million related to the Company's deferred revenue balance reported at March 31, 2025.

**Performance Obligations**

Customer contracts may include promises to transfer multiple products and services to a customer. Determining whether the products and services are considered distinct performance obligations that should be accounted for separately or as one combined performance obligation may require significant judgment. The transaction price is allocated among performance obligations in bundled contracts in an amount that depicts the relative standalone selling prices of each obligation.

For contracts involving distinct hardware and software licenses, the performance obligations are satisfied at a point in time when control is transferred to the customer. For standalone maintenance and post-contract support (PCS) the performance obligation is satisfied ratably over the contract term as a stand-ready obligation. For consulting and training services, the performance obligation may be satisfied over the contract term as a stand-ready obligation, satisfied over a period of time as those services are delivered, satisfied at the completion of the service when control has transferred, or the services have expired unused.

Payments for hardware, software licenses, one-year maintenance, PCS and consulting services, are typically due up front with payment terms of 30 to 90 days. However, the Company does have contracts pursuant to which billings occur ratably over a period of years following the transfer of control for the contracted performance obligations. Payments on multi-year maintenance, PCS and consulting services are typically due in annual installments over the contract term. The Company did not have any material variable consideration such as obligations for returns, refunds or warranties at June 30, 2025.

At June 30, 2025, the Company had total deferred revenue and customer deposits of $445.8 million, which represents the aggregate total contract price allocated to undelivered performance obligations. The Company expects to recognize $293.9 million, or 66%, of this revenue during the next 12 months and expects to recognize the remaining $151.9 million, or 34%, of this revenue thereafter.

In accordance with our revenue recognition policies, there are circumstances for which the Company does not recognize revenue relating to sales transactions that have been billed and the related invoiced amount has not been collected. While the invoiced amount represents an enforceable obligation, the Company does not believe its right to payment is unconditional. Therefore, for balance sheet presentation purposes, the Company has not recognized the deferred revenue or the related account receivable, and no amounts appear in the consolidated balance sheets for such transactions because control of the underlying deliverable has not transferred. The aggregate amount of unrecognized accounts receivable and deferred revenue was $3.0 million and $5.5 million at June 30, 2025 and March 31, 2025, respectively.

The Company expects that the amount of billed and unbilled deferred revenue will change from quarter to quarter for several reasons, including the specific timing, duration and size of large customer support and service agreements, varying billing cycles of such agreements, the specific timing of customer renewals, and foreign currency fluctuations. The Company did not have material significant financing components, or variable consideration or performance obligations satisfied in a prior period recognized during the three months ended June 30, 2025.

**Contract Balances**

The Company may receive payments from customers based on billing schedules as established by the Company's contracts. Contract assets relate to performance obligations where control has transferred to the customer in advance of scheduled billings. The Company records unbilled accounts receivable representing the right to consideration in exchange for goods or services that have been transferred to a customer conditional on the passage of time. Deferred revenue relates to scenarios where billings with an unconditional right to payment occur before all performance obligations are delivered or payments are received in advance of performance under the contract.

**Costs to Obtain Contracts**

The Company has determined that the only significant incremental costs incurred to obtain contracts with customers within the scope of Topic 606 are sales commissions paid to its employees. Sales commissions are recorded as an asset and amortized to expense ratably over the remaining performance periods of the related contracts with remaining performance obligations. The Company expenses costs as incurred for sales commissions when the amortization period would have been one year or less.

At June 30, 2025, the consolidated balance sheet included $10.0 million in assets related to sales commissions to be expensed in future periods. A balance of $5.5 million was included in prepaid expenses and other current assets, and a balance

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of $4.5 million was included in other assets in the Company's consolidated balance sheet at June 30, 2025. At March 31, 2025, the consolidated balance sheet included $9.9 million in assets related to sales commissions to be expensed in future periods. A balance of $5.4 million was included in prepaid expenses and other current assets, and a balance of $4.5 million was included in other assets in the Company's consolidated balance sheet at March 31, 2025.

During each of the three months ended June 30, 2025 and 2024, the Company recognized $1.9 million and $1.7 million of amortization related to this sales commission asset, respectively, which is included in the sales and marketing expense line in the Company's consolidated statements of operations.

**Allowance for Credit Losses**

The Company continually monitors collections from its customers. The Company evaluates the collectability of its accounts receivable and determines the appropriate allowance for credit losses based on a combination of factors, including but not limited to, analysis of the aging schedules, past due balances, historical collection experience and prevailing economic conditions.

The following table summarizes the activity in the allowance for credit losses (in thousands):

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| | |
|:---|:---|
| Balance at March 31, 2025 | $214 |
| &nbsp;&nbsp;&nbsp;&nbsp; Additions resulting in charges to operations | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp; Recoveries of previously reserved balances | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp; Deductions due to write-offs | (160) |
| Balance at June 30, 2025 | $92 |

---

**NOTE 3 – CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMERS**

Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of investments, trade accounts receivable and accounts payable. The Company's cash, cash equivalents, and marketable securities are placed with financial institutions with high credit standings.

At each of June 30, 2025 and March 31, 2025, the Company had no direct customers or channel partners that accounted for more than 10% of the accounts receivable balance.

During each of the three months ended June 30, 2025, and 2024, the Company had no direct customers or channel partners accounted for more than 10% of total revenue.

Historically, the Company has not experienced any significant failure of its customers' ability to meet their payment obligations, nor does the Company anticipate material non-performance by its customers in the future; accordingly, the Company does not require collateral from its customers. However, if the Company's assumptions are incorrect, there could be an adverse impact on its allowance for credit losses.

**NOTE 4 – SHARE-BASED COMPENSATION**

On September 12, 2019, the Company's stockholders approved the 2019 Equity Incentive Plan (2019 Plan), which replaced the Company's 2007 Equity Incentive Plan, as amended (Amended 2007 Plan). The 2019 Plan permits the granting of incentive and nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, and other stock awards, collectively referred to as "share-based awards".

On September 10, 2020, the Company's stockholders approved an amendment and restatement of the 2019 Equity Incentive Plan (2019 First Amended Plan) to increase the number of shares reserved for issuance by 4,700,000 shares, establish a one-year minimum vesting requirement for awards granted on or after September 10, 2020, and change the fungible share counting ratio used to calculate the increase or reduction in the number of shares available for issuance under the 2019 First Amended Plan.

On August 24, 2022, the Company's stockholders approved an amendment and restatement of the 2019 Equity Incentive Plan (2019 Second Amended Plan) to increase the number of shares reserved for issuance by 7,000,000 shares, and change the fungible share counting ratio used to calculate the increase or reduction in the number of shares available for issuance under the 2019 Second Amended Plan.

On September 14, 2023, the Company's stockholders approved an amendment and restatement to the 2019 First Amended Plan (2019 Third Amended Plan) to further increase the number of shares reserved for issuance by 5,900,000 shares and changed the fungible share counting ratio used to calculate the increase or reduction in the number of shares available for issuance under the 2019 Third Amended Plan.

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On September 12, 2024, the Company's stockholders approved an amendment and restatement to the 2019 First Amended Plan (2019 Fourth Amended Plan) to further increase the number of shares reserved for issuance by 3,400,000. At September 12, 2024, the effective date of the 2019 Fourth Amended Plan, there was a total of 7,947,545 shares reserved for issuance under the 2019 Fourth Amended Plan, which consisted of 3,400,000 new shares plus 4,547,545 shares that remained available for grant under the 2019 Third Amended Plan. The Company refers to the 2019 Plan, 2019 First Amended Plan, 2019 Second Amended Plan, 2019 Third Amended Plan and 2019 Fourth Amended Plan collectively as the "Amended 2019 Plan". As of June 30, 2025, an aggregate of 4,484,849 shares remained available for grant under the Amended 2019 Plan.

Periodically, the Company grants share-based awards to employees, executive officers, and directors of the Company and its subsidiaries. Additionally, the Company periodically grants performance-based restricted stock units to certain executive officers that vest based upon the Company's total shareholder return as compared to the Russell 2000 Index over a three-year period. The performance-based restricted stock units are valued using the Monte Carlo Simulation model. The measurement and recognition of compensation expense is based on estimated fair values for all share-based payment awards made to its employees and directors. Share-based award grants are generally measured at fair value on the date of grant based on the number of shares granted and the quoted price of the Company's common stock. Such value is recognized as a cost of revenue or an operating expense over the corresponding vesting period.

The following is a summary of share-based compensation expense including restricted stock units and performance-based restricted stock units granted pursuant to the Company's Amended 2007 Plan and the Amended 2019 Plan, and employee stock purchases made under the Company's 2011 Amended and Restated Employee Stock Purchase Plan (ESPP), based on estimated fair values within the applicable cost and expense lines identified below (in thousands):

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| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **June 30,** | **June 30,** |
| | **2025** | **2024** |
| Cost of product revenue | $413 | $431 |
| Cost of service revenue | 2747 | 2889 |
| Research and development | 5532 | 5886 |
| Sales and marketing | 6889 | 7504 |
| General and administrative | 4378 | 4488 |
|  | $19959 | $21198 |

---

*Employee Stock Purchase Plan* – The Company maintains the ESPP for all eligible employees as described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2025. Under the ESPP, shares of the Company's common stock may be purchased on the last day of each bi-annual offering period at 85% of the fair value on the last day of such offering period. The offering periods run from March 1st through August 31st and from September 1st through the last day of February each year.

**NOTE 5 – CASH, CASH EQUIVALENTS, MARKETABLE SECURITIES AND INVESTMENTS**

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents and those investments with original maturities greater than three months to be marketable securities. Cash and cash equivalents mainly consisted of U.S. government and municipal obligations, commercial paper, money market instruments and cash maintained with various financial institutions at June 30, 2025 and March 31, 2025.

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**Marketable Securities**

The following is a summary of marketable securities held by NetScout at June 30, 2025, classified as short-term and long-term (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **Amortized<br>Cost** | **Unrealized<br>(Losses) Gains** | **Fair<br>Value** |
| Type of security: |  |  |  |
| U.S. government and municipal obligations | $5957 | $(1) | $5956 |
| Commercial paper | 18525 |  | 18525 |
| Corporate bonds | 997 | (1) | 996 |
| Certificates of deposit | 1263 |  | 1263 |
| Agency bonds | 955 |  | 955 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total short-term marketable securities | 27697 | (2) | 27695 |
| U.S. government and municipal obligations | 976 | 2 | 978 |
| Corporate bonds | 10019 |  | 10019 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total long-term marketable securities | 10995 | 2 | 10997 |
| Total marketable securities | $38692 | $— | $38692 |

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The following is a summary of marketable securities held by NetScout at March 31, 2025, classified as short-term and long-term (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **Amortized<br>Cost** | **Unrealized Gains (Losses)** | **Fair<br>Value** |
| Type of security: |  |  |  |
| U.S. government and municipal obligations | $4413 | $1 | $4414 |
| Commercial paper | 17358 |  | 17358 |
| Certificates of deposit | 505 |  | 505 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total short-term marketable securities | 22276 | 1 | 22277 |
| U.S. government and municipal obligations | 1005 | (1) | 1004 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total long-term marketable securities | 1005 | (1) | 1004 |
| Total marketable securities | $23281 | $— | $23281 |

---

Contractual maturities of the Company's marketable securities held at June 30, 2025 and March 31, 2025 were as follows (in thousands):

---

| | | |
|:---|:---|:---|
| | **June 30,<br>2025** | **March 31,<br>2025** |
| Available-for-sale securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due in 1 year or less | $27695 | $22277 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due after 1 year through 5 years | 10997 | 1004 |
|  | $38692 | $23281 |

---

**Investments**

In February 2023, the Company entered into a forward share purchase agreement with Napatech A/S (Napatech), a publicly traded Danish company registered on the Oslo stock exchange, to purchase approximately 6.2 million shares of Napatech's common stock for $7.5 million. In April 2023, the Company settled the forward share purchase contract with Napatech in exchange for approximately 6.2 million shares of Napatech's common stock and recorded a $0.2 million change in the fair value of the derivative instrument in other income (expense), net within the Company's consolidated statement of operations during the three months ended June 30, 2023. As part of the agreement, the Company received the right to designate a representative to be nominated for election to the Napatech Board of Directors, which was approved by Napatech's Nomination Committee in April 2023. Subsequently in April 2025, the Company's representative to the Napatech Board resigned. As a result, the Company no longer holds a Board seat. The Company accounts for this investment under the equity method and has elected to apply the fair value option to the investment. The Company records the investment at fair value at the end of each period based on the closing price of Napatech's stock and any change in fair value during the period is recorded in

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other income (expense), net within the Company's consolidated statement of operations. At June 30, 2025 and March 31, 2025, the fair value of the investment in Napatech was $15.2 million and $11.8 million, respectively, and was included in marketable securities and investments in the Company's consolidated balance sheet. During the three months ended June 30, 2025 and 2024, the Company recognized a $2.5 million gain and an $8.8 million gain, respectively, due to changes in the fair value of the equity investment in Napatech in other income (expense), net within the Company's consolidated statement of operations. For the three months ended June 30, 2025, the unrealized gain related to foreign currency translation on the equity investment in Napatech was $1.0 million. For the three months ended June 30, 2024, the unrealized gain related to foreign currency translation on the equity investment in Napatech was immaterial.

**NOTE 6 – FAIR VALUE MEASUREMENTS**

The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant non-observable inputs. The following tables present the Company's financial assets and liabilities measured on a recurring basis using the fair value hierarchy at June 30, 2025 and March 31, 2025 (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Fair Value Measurements at** | **Fair Value Measurements at** | **Fair Value Measurements at** | **Fair Value Measurements at** |
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **ASSETS:** | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $458997 | $30575 | $— | $489572 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. government and municipal obligations | 6934 |  |  | 6934 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial paper |  | 18525 |  | 18525 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds |  | 996 |  | 996 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit |  | 1263 |  | 1263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity investment in Napatech | 15241 |  |  | 15241 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments |  | 318 |  | 318 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agency bonds |  | 10974 |  | 10974 |
|  | $481172 | $62651 | $— | $543823 |
| **LIABILITIES:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments | $— | $(28) | $— | $(28) |
|  | $— | $(28) | $— | $(28) |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Fair Value Measurements at** | **Fair Value Measurements at** | **Fair Value Measurements at** | **Fair Value Measurements at** |
| | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **ASSETS:** | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $434121 | $23294 | $— | $457415 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. government and municipal obligations | 3008 | 2410 |  | 5418 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial paper |  | 17358 |  | 17358 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certificates of deposit |  | 505 |  | 505 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity investment in Napatech | 11781 |  |  | 11781 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments |  | 197 |  | 197 |
|  | $448910 | $43764 | $— | $492674 |
| **LIABILITIES:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments | $— | $(55) | $— | $(55) |
|  | $— | $(55) | $— | $(55) |

---

This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. On a recurring basis, the Company measures certain financial assets and liabilities at fair value, including marketable securities and derivative financial instruments.

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**Table of Contents**

The Company's Level 1 investments are classified as such because they are valued using quoted market prices or alternative pricing sources with reasonable levels of price transparency.

The Company's Level 2 investments are classified as such because they are valued using observable inputs other than Level 1 quoted prices that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets in markets that are not active.

**NOTE 7 – INVENTORIES AND DEFERRED COSTS**

Inventories are stated at the lower of actual cost or net realizable value. Cost is determined by using the first in, first out (FIFO) method. Inventories consist of the following (in thousands):

---

| | | |
|:---|:---|:---|
| | **June 30,<br>2025** | **March 31,<br>2025** |
| Raw materials | $6882 | $7172 |
| Work in process | 22 | 47 |
| Finished goods | 4300 | 3890 |
| Deferred costs | 1843 | 1782 |
|  | $13047 | $12891 |

---

**NOTE 8 – GOODWILL AND INTANGIBLE ASSETS**

**Goodwill**

During the first quarter of fiscal year 2025, due to a decrease in the Company's stock price and overall market capitalization, along with other qualitative considerations including the continued impact from the conditions in the macroeconomic environment, it was determined a Triggering Event occurred, indicating goodwill may be impaired. Accordingly, the Company conducted an interim quantitative impairment test of its goodwill at June 30, 2024 using the market approach to estimate the fair value of its reporting unit. As a result of that interim impairment test, the Company recorded a $427.0 million goodwill impairment charge during the three months ended June 30, 2024.

During fiscal year 2025, the Company completed its annual goodwill impairment test at January 31, 2025, 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.

The Company may be required to record additional goodwill impairment charges. While management cannot predict if or when additional goodwill impairments may occur, future goodwill impairments could have material adverse effects on the Company's results of operations and financial condition.

At June 30, 2025 and March 31, 2025, the carrying amounts of goodwill were $1.1 billion, respectively.

The following table summarizes the changes in the carrying amount of goodwill for the three months ended June 30, 2025 as follows (in thousands):

---

| | |
|:---|:---|
| Balance at March 31, 2025 | $1076383 |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation impact | (6228) |
| Balance at June 30, 2025 | $1070155 |

---

**Intangible Assets**

The net carrying amounts of intangible assets were $249.9 million and $258.7 million at June 30, 2025 and March 31, 2025, respectively. Intangible assets acquired in a business combination are recorded under the acquisition method of accounting at their estimated fair values at the date of acquisition. The Company amortizes acquired intangible assets over their estimated useful lives.

The Company reviews definite-lived intangible assets for impairment when an event occurs that may indicate potential impairment. In connection with the interim goodwill impairment analysis performed during fiscal year 2025, the Company conducted an impairment test of its definite-lived intangible assets. Based on that assessment, the Company concluded that the carrying values of the Company's definite-lived intangible assets were recoverable. At March 31, 2025, the Company performed a Triggering Event assessment and concluded no events or circumstances occurred that indicated intangible assets may be impaired. However, if future events occur or if business conditions deteriorate, the Company may be required to record an impairment loss, and or accelerate the amortization of definite-live intangible assets in the future, which could be material to its results of operations and financial condition.

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Intangible assets include the following amortizable intangible assets at June 30, 2025 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **Cost** | **Accumulated<br>Amortization** | **Net** |
| Developed technology | $250252 | $(244863) | $5389 |
| Customer relationships | 770589 | (533717) | 236872 |
| Distributor relationships and technology licenses | 5220 | (4226) | 994 |
| Definite-lived trademark and trade name | 57990 | (51504) | 6486 |
| Core technology | 7192 | (7192) |  |
| Capitalized software | 3317 | (3317) |  |
| Other | 1208 | (1047) | 161 |
|  | $1095768 | $(845866) | $249902 |

---

Intangible assets include the following amortizable intangible assets at March 31, 2025 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **Cost** | **Accumulated<br>Amortization** | **Net** |
| Developed technology | $248232 | $(242298) | $5934 |
| Customer relationships | 763397 | (518995) | 244402 |
| Distributor relationships and technology licenses | 5097 | (4022) | 1075 |
| Definite-lived trademark and trade name | 57675 | (50562) | 7113 |
| Core technology | 7192 | (7192) |  |
| Capitalized software | 3317 | (3317) |  |
| Other | 1208 | (1042) | 166 |
|  | $1086118 | $(827428) | $258690 |

---

Amortization included as cost of product revenue consists of amortization of developed technology, distributor relationships and technology licenses. Amortization included as operating expense consists of all other intangible assets. The following table provides a summary of amortization expense for the three months ended June 30, 2025 and 2024 (in thousands):

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **June 30,** | **June 30,** |
| | **2025** | **2024** |
| Amortization of intangible assets included as: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of product revenue | $630 | $1266 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expense | 11124 | 11619 |
|  | $11754 | $12885 |

---

The following is the expected future amortization expense at June 30, 2025 for the fiscal years ending March 31 (in thousands):

---

| | |
|:---|:---|
| 2026 (remaining nine months) | $35343 |
| 2027 | 44265 |
| 2028 | 41297 |
| 2029 | 31894 |
| 2030 | 28967 |
| Thereafter | 68136 |
|  | $249902 |

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**Table of Contents**

**NOTE 9 – DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES**

NetScout operates internationally and, in the normal course of business, is exposed to fluctuations in foreign currency exchange rates. The exposures result from costs that are denominated in currencies other than the U.S. Dollar, primarily the Euro, British Pound, Canadian Dollar, and Indian Rupee. The Company manages its foreign cash flow risk by hedging forecasted cash flows for operating expenses denominated in foreign currencies for up to twelve months, within specified guidelines through the use of forward contracts. The Company enters into foreign currency exchange contracts to hedge cash flow exposures from costs that are denominated in currencies other than the U.S. Dollar. These hedges are designated as cash flow hedges at inception.

NetScout also periodically enters into forward contracts to manage exchange rate risks associated with certain third-party transactions and for which the Company does not elect hedge accounting treatment as there is no difference in the timing of gain or loss recognition on the hedging instrument and the hedged item.

All of the Company's 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.

The notional amounts and fair values of derivative instruments in the consolidated balance sheets at June 30, 2025 and March 31, 2025 were as follows (in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Notional Amounts (a)** | **Notional Amounts (a)** | **Prepaid Expenses and Other Current Assets** | **Prepaid Expenses and Other Current Assets** | **Accrued Other** | **Accrued Other** |
| | **June 30,<br>2025** | **March 31,<br>2025** | **June 30,<br>2025** | **March 31,<br>2025** | **June 30,<br>2025** | **March 31,<br>2025** |
| Derivatives Designated as Hedging Instruments: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward contracts | $11855 | $10649 | $318 | $197 | $28 | $55 |
|  |  |  | $318 | $197 | $28 | $55 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) Notional amounts represent the gross contract/notional amount of the derivatives outstanding.

The following table provides the effect that foreign exchange forward contracts designated as hedging instruments had on other comprehensive income (loss) and results of operations for the three months ended June 30, 2025 and 2024 (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Gain (Loss) Recognized in OCI on Derivative (a)** | **Gain (Loss) Recognized in OCI on Derivative (a)** | **Gain (Loss) Reclassified from Accumulated OCI into Income (b)** | **Gain (Loss) Reclassified from Accumulated OCI into Income (b)** | **Gain (Loss) Reclassified from Accumulated OCI into Income (b)** |
| | **June 30,<br>2025** | **June 30,<br>2024** | **Location** | **June 30,<br>2025** | **June 30,<br>2024** |
| Forward contracts | $330 | $(117) | Research and development | $(2) | $1 |
|  |  |  | Sales and marketing | (168) | 59 |
|  | $330 | $(117) |  | $(170) | $60 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a)The amount represents the change in fair value of derivative contracts due to changes in spot rates.

&nbsp;&nbsp;&nbsp;&nbsp;(b)The amount represents reclassification from other comprehensive income (loss) to earnings that occurs when the hedged item affects earnings.

The Company had no forward exchange contracts not designed as hedging instruments during the three months ended June 30, 2025 and 2024.

**NOTE 10 – LONG-TERM DEBT**

On July 27, 2021, the Company amended and extended its existing credit facility (as amended, the Second Amended and Restated Credit Agreement), which provided for a five-year, $800.0 million senior secured revolving credit facility, including a letter of credit sub-facility of up to $75.0 million. The commitments under the Second Amended and Restated Credit Agreement were set to expire on July 27, 2026, and any outstanding loans are due on that date. On May 13, 2024, the Company repaid $25.0 million of borrowings under the Second Amended and Restated Credit Agreement.

On October 4, 2024, the Company amended and restated the Second Amended and Restated Credit Agreement (as amended and restated, the Third Amended and Restated Credit Agreement) with a syndicate of lenders by and among: the Company, as borrower; certain subsidiaries of NetScout Systems, Inc., as borrower; JPMorgan Chase Bank, N.A., as administrative agent and collateral agent; JPMorgan Chase Bank, N.A., Bank of America, N.A., RBC Capital Markets, PNC

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Capital Markets LLC and Mizuho Bank, Ltd, as joint lead arrangers and joint bookrunners; TD Bank, N.A. and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company, as co-documentation agents; and the lenders and issuing banks party thereto.

The Third Amended and Restated Credit Agreement provides for a new five-year, $600.0 million senior secured revolving credit facility, including a letter of credit sub-facility of up to $75.0 million. The Company may elect to use the amended credit facility for working capital and other general corporate purposes (including to repurchase shares of the Company's common stock). The commitments under the Third Amended and Restated Credit Agreement will expire on October 4, 2029, and any outstanding loans will be due on that date.

In connection with the Third Amended and Restated Credit Agreement, the Company paid off the outstanding balance of $75.0 million under the Second Amended and Restated Credit Agreement on October 4, 2024 by borrowing the same amount under the Third Amended and Restated Credit Agreement. Additionally, the Company recorded a loss on the extinguishment of debt of $1.1 million, representing the write off of unamortized deferred financing costs, which was included in interest expense in the consolidated statements of operations for the fiscal year ended March 31, 2025. On February 3, 2025, the Company paid the outstanding balance of $75.0 million in full under the Third Amended and Restated Credit Agreement. At March 31, 2025, there were no amounts outstanding under the Third Amended and Restated Credit Agreement.

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. For the period from the delivery of our financial statements for the year ended March 31, 2025, until the Company has delivered financial statements for the quarter ended June 30, 2025, the applicable margin will be 1.00% per annum for term SOFR loans and 0% per annum for Alternate Base Rate loans, and thereafter the applicable margin will vary depending on the Company's consolidated gross leverage ratio, ranging from 1.00% per annum for Alternate Base Rate loans and 2.00% per annum for term SOFR loans if the Company's consolidated gross leverage ratio is greater than 3.50 to 1.00, down to 0% per annum for Alternate Base Rate loans and 1.00% per annum for term SOFR loans if the Company's consolidated gross leverage ratio is equal to or less than 1.50 to 1.00.

The Company's consolidated gross leverage ratio is the ratio of its consolidated total debt compared to its consolidated EBITDA as defined in the Third Amended and Restated Credit Agreement (consolidated adjusted EBITDA). Consolidated adjusted EBITDA includes certain adjustments, including, without limitation, adjustments relating to extraordinary, unusual or non-recurring charges, certain restructuring charges, non-cash charges, certain transaction costs and expenses and certain pro forma adjustments in connection with material acquisitions and dispositions, all as set forth in detail in the Third Amended and Restated Credit Agreement.

Commitment fees will accrue on the daily unused amount of the credit facility. For the period from the delivery of our financial statements for the quarter ended March 31, 2025, until the Company has delivered financial statements for the quarter ended June 30, 2025, the commitment fee will be 0.15% per annum, and thereafter the commitment fee will vary depending on the Company's consolidated gross leverage ratio, ranging from 0.30% per annum if the Company's consolidated gross leverage ratio is greater than 2.75 to 1.00, down to 0.15% per annum if the Company's consolidated gross leverage ratio is equal to or less than 1.50 to 1.00.

Letter of credit participation fees are payable to each lender providing the letter of credit sub-facility on the amount of such lender's letter of credit exposure, during the period from the closing date of the Third Amended and Restated Credit Agreement to, but excluding, the date which is the later of (i) the date on which such lender's commitment terminates or (ii) the date on which such lender ceases to have any letter of credit exposure, at a rate per annum equal to the applicable margin for term SOFR loans. Additionally, the Company will pay a fronting fee to each issuing bank in amounts to be agreed to between the Company and the applicable issuing bank.

Interest on Alternate Base Rate loans is payable at the end of each calendar quarter. Interest on term SOFR loans is payable at the end of each interest rate period or at the end of each three-month interval within an interest rate period if the period is longer than three months. The Company may also prepay loans under the Third Amended and Restated Credit Agreement at any time, without penalty, subject to certain notice requirements.

The loans and other obligations under the credit facility are (a) guaranteed by each of the Company's wholly-owned material domestic restricted subsidiaries, subject to certain exceptions, and (b) secured by substantially all of the assets of the Company and the subsidiary guarantors, including a pledge of all the capital stock of material subsidiaries held directly by the Company and the subsidiary guarantors (which pledge, in the case of any foreign subsidiary, is limited to 65% of the voting stock), subject to certain customary exceptions and limitations. The Third Amended and Restated Credit Agreement generally prohibits any other liens on the assets of the Company and its restricted subsidiaries, subject to certain exceptions as described in the Third Amended and Restated Credit Agreement.

The Third Amended and Restated Credit Agreement contains certain covenants applicable to the Company and its restricted subsidiaries, including, without limitation, limitations on additional indebtedness, liens, various fundamental changes,

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dividends and distributions, investments (including acquisitions), transactions with affiliates, asset sales, including sale-leaseback transactions, speculative hedge agreements, payment of junior financing, changes in business and other limitations customary in senior secured credit facilities. The Third Amended and Restated Credit Agreement provides for certain baskets that are available to the Company and its restricted subsidiaries to incur additional indebtedness, to repay junior financing, for asset sales and to make investments and restricted payments. Such baskets are substantially similar to the baskets set forth in the Company's previous amended credit agreement.

The Third Amended and Restated Credit Agreement requires the Company to maintain a certain consolidated net leverage ratio. The Company's consolidated net leverage ratio is the ratio of its Consolidated Total Debt minus the lesser of unrestricted cash and 125% of adjusted consolidated EBITDA compared to its adjusted consolidated EBITDA. The Company's maximum consolidated net leverage ratio is 4.00 to 1.00. These covenants and limitations are more fully described in the Third Amended and Restated Credit Agreement. At June 30, 2025, the Company was in compliance with all covenants, including the specified total consolidated net leverage ratio range of 4.00 to 1.00.

The Third Amended and Restated Credit Agreement provides that events of default will exist in certain circumstances, including failure to make payment of principal or interest on the loans when required, failure to perform certain obligations under the Third Amended and Restated Credit Agreement and related documents, defaults under certain other indebtedness, certain insolvency events, certain events arising under ERISA, a change of control and certain other events. Upon an event of default, the administrative agent may, or at the request of the holders of more than 50% in principal amount of the loans and commitments shall, terminate the commitments, accelerate the maturity of the loans and enforce certain other remedies under the Third Amended and Restated Credit Agreement and the other loan documents.

The Company had unamortized capitalized debt issuance costs, net of $3.1 million at June 30, 2025, which are being amortized over the life of the revolving credit facility. The unamortized capitalized debt issuance costs balance of $0.7 million was included as prepaid expenses and other current assets and a balance of $2.4 million was included as other assets in the Company's consolidated balance sheet at June 30, 2025.

**NOTE 11 – RESTRUCTURING CHARGES**

During the fiscal year 2025, the Company implemented a voluntary separation program (VSP) for employees who met certain age and service requirements to reduce overall headcount. As a result of the related workforce reduction, during the fiscal year ended March 31, 2025, the Company recorded restructuring charges of $19.6 million to one-time termination benefits for one hundred forty-two employees who voluntarily terminated their employment with the Company during the fiscal year ended March 31, 2025. All one-time termination benefits were completed in full during the first quarter of the fiscal year ending March 31, 2026.

In addition to the VSP, during the third quarter of fiscal year 2025, the Company entered into transition agreements that provided termination benefits for certain employees to ensure an orderly transition of responsibilities for continuity purposes. As a result of the related workforce changes, during the fiscal year ended March 31, 2025, the Company recorded restructuring charges totaling $0.9 million. The Company estimates that approximately $0.4 million and $0.1 million in additional restructuring charges will be recorded in the fiscal years ending March 31, 2026 and 2027, respectively, related to one-time termination benefits for the eight employees who continue to render services to the Company. A majority of the one-time termination benefits are expected to be paid in full by the end of the second quarter of fiscal year ending March 31, 2026, with the remaining amounts expected to be paid in full by the end of the fiscal year ending March 31, 2027.

During the first quarter of fiscal year 2026, the Company recorded restructuring charges of $0.5 million.

The following table provides a summary of the activity related to the restructuring plan and the related restructuring liability (in thousands):

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| | | | |
|:---|:---|:---|:---|
| | **Q1 FY25 VSP** | **Q3 FY25 Plan** | |
| | **Employee-related** | **Employee-related** | **TOTAL** |
| Balance at March 31, 2025 | $9 | $906 | $915 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges to operations |  | 529 | 529 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other adjustments | (9) |  | (9) |
| Balance at June 30, 2025 | $— | $1435 | $1435 |

---

**NOTE 12 – LEASES**

The Company determines if an arrangement is a lease at inception. Right-of-use (ROU) assets represent the Company's right to use an underlying asset for the duration of the lease term. Lease liabilities represent the Company's contractual

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obligation to make lease payments over the lease term. The Company's policy is to combine lease and non-lease components and to not recognize ROU assets and lease liabilities for short-term leases. Leases with an initial term of twelve months or less are classified as short-term leases. ROU assets are recorded and recognized at commencement for the lease liability amount, plus initial direct costs incurred less lease incentives received. Lease liabilities are recorded at the present value of future lease payments over the lease term at commencement. The discount rate used is generally the Company's estimated incremental borrowing rate unless the lessor's implicit rate is readily determinable. Incremental borrowing rates are calculated periodically to estimate the rate the Company would pay to borrow the funds necessary to obtain an asset of similar value over a similar term. Lease expenses relating to operating leases are recognized on a straight-line basis over the lease term.

The Company has operating leases for administrative, research and development, sales and marketing and manufacturing facilities and equipment under various non-cancelable lease agreements. The Company's leases have remaining lease terms ranging from 1 year to 6 years. The Company's lease terms may include options to extend or terminate the lease where it is reasonably certain that the Company will exercise those options. The Company considers several economic factors when making this determination, including but not limited to, the significance of leasehold improvements incurred in the office space, the difficulty in replacing the asset, underlying contractual obligations, or specific characteristics unique to a particular lease. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company has asset retirement obligations (ARO) to return certain leased facilities to their original condition at the end of the respective lease term. The estimated fair value of these ARO liabilities is recognized in the period in which the liability is generated and a corresponding increase to the carrying value of the related asset is recorded and depreciated over the useful life of the asset. The Company's estimates of its ultimate AROs could change because of changes in regulations, the extent of environmental remediations required, the means of reclamation, cost estimates, exit or disposal activities or time period estimates. ARO liabilities totaled $2.3 million and $2.2 million at June 30, 2025 and March 31, 2025, respectively. ARO liabilities are included in other long-term liabilities in the consolidated balance sheets at June 30, 2025 and March 31, 2025, respectively. Accretion expense related to these liabilities was not material for any periods presented.

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.

The components of operating lease cost for the three months ended June 30, 2025 and 2024, respectively, were as follows (in thousands):

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| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **June 30,** | **June 30,** |
| | **2025** | **2024** |
| Lease cost under long-term operating leases | $2853 | $2961 |
| Lease cost under short-term operating leases | 336 | 326 |
| Variable lease cost under short-term and long-term operating leases | 962 | 1316 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total operating lease cost | $4151 | $4603 |

---

The table below presents supplemental cash flow information related to leases during the three months ended June 30, 2025 and 2024 (in thousands):

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **June 30,** | **June 30,** |
| | **2025** | **2024** |
| Right-of-use assets obtained in exchange for new operating lease liabilities | $767 | $50 |

---

At June 30, 2025 and March 31, 2025, the weighted average remaining lease term in years and weighted average discount rate were as follows:

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **March 31, 2025** |
| Weighted average remaining lease term in years - operating leases | 4.54 | 4.77 |
| Weighted average discount rate - operating leases | 4.4% | 4.4% |

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Future minimum payments under non-cancellable leases at June 30, 2025 are as follows (in thousands):

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| | |
|:---|:---|
| Year ending March 31: |  |
| 2026 (remaining nine months) | $8687 |
| 2027 | 10419 |
| 2028 | 9022 |
| 2029 | 7675 |
| 2030 | 6632 |
| Thereafter | 3131 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total lease payments | $45566 |
| &nbsp;&nbsp;&nbsp;&nbsp; Less imputed interest | (4033) |
| &nbsp;&nbsp;&nbsp;&nbsp; Present value of lease liabilities | $41533 |

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**NOTE 13 – COMMITMENTS AND CONTINGENCIES**

From time to time, we may be subject to legal proceedings and claims in the ordinary course of business. In the opinion of management, none of the Company's current legal proceedings and claims, if determined adversely and based on the information known to the management as of the date of this Quarterly Report, is expected to have a material adverse effect on our financial condition, results of operations or cash flows.

**NOTE 14 – PENSION BENEFIT PLANS**

Certain of the Company's non-U.S. employees participate in noncontributory defined benefit pension plans. None of the Company's employees in the U.S. participate in any noncontributory defined benefit pension plans. In general, these plans are funded based on considerations relating to legal requirements, underlying asset returns, the plan's funded status, the anticipated deductibility of the contribution, local practices, market conditions, interest rates and other factors.

The following sets forth the components of the Company's net periodic pension cost of the noncontributory defined benefit pension plans recorded in operating expenses in the consolidated statements of operations for the three months ended June 30, 2025 and 2024 (in thousands):

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| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **June 30,** | **June 30,** |
| | **2025** | **2024** |
| Service cost | $42 | $47 |
| Interest cost | 277 | 245 |
| Amortization of net gain | (161) | (116) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net periodic pension cost | $158 | $176 |

---

**Expected Contributions**

During the three months ended June 30, 2025, the Company made contributions of $0.2 million to its defined benefit pension plans. During the fiscal year ending March 31, 2026, the Company's cash contribution requirements for its defined benefit pension plans are expected to be less than $1.0 million. As a majority of the participants within the Company's plans are all active employees, the benefit payments are not expected to be material in the foreseeable future.

**NOTE 15 – TREASURY STOCK**

On May 3, 2022, the Company's board of directors approved a share repurchase program that enables the Company to repurchase up to twenty-five million shares of its common stock (2022 Share Repurchase Program). The 2022 Share Repurchase Program became effective in the third quarter of fiscal year 2024. The Company is not obligated to acquire any specific amount of common stock within any particular timeframe as a result of the 2022 Share Repurchase Program. Through June 30, 2025, the Company repurchased 2,737,970 shares for $56.6 million under the 2022 Share Repurchase Program. The Company repurchased 761,249 shares for $15.0 million under this share repurchase program during the three months ended

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June 30, 2025. At June 30, 2025, 22,262,030 shares of common stock remained available to be purchased under the current program.

In connection with the delivery of shares of the Company's common stock upon vesting of restricted stock units, the Company withheld 597,115 shares and 617,826 shares at a cost of $13.8 million and $12.2 million, respectively, related to minimum statutory tax withholding requirements on these restricted stock units during the three months ended June 30, 2025 and 2024, respectively. These withholding transactions do not fall under the share repurchase programs described above, and therefore do not reduce the number of shares that are available for repurchase under those programs.

**NOTE 16 – NET LOSS PER SHARE**

Calculations of the basic and diluted net loss per share and potential common shares are as follows (in thousands, except for per share data):

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **June 30,** | **June 30,** |
| | **2025** | **2024** |
| **Numerator:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(3679) | $(443376) |
| **Denominator:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Denominator for basic net loss per share - weighted average common shares outstanding | 71729 | 71467 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dilutive common equivalent shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted average restricted stock units and performance-based restricted stock units |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Denominator for diluted net loss per share - weighted average shares outstanding | 71729 | 71467 |
| **Net loss per share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic net loss per share | $(0.05) | $(6.20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted net loss per share | $(0.05) | $(6.20) |

---

The following table sets forth restricted stock units excluded from the calculation of diluted net loss per share, since their inclusion would be anti-dilutive (in thousands):

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **June 30,** | **June 30,** |
| | **2025** | **2024** |
| Restricted stock units | 1647 | 1326 |

---

Basic net loss per share is calculated by dividing net loss by the weighted average number of shares outstanding during the period. Unvested restricted shares, although legally issued and outstanding, are not considered outstanding for purposes of calculating basic earnings per share. Diluted net loss per share is calculated by dividing net loss by the weighted average number of shares outstanding plus the dilutive effect, if any, of outstanding stock options, restricted shares and restricted stock units using the treasury stock method. The calculation of the dilutive effect of outstanding equity awards under the treasury stock method includes consideration of proceeds from the assumed exercise of stock options and unrecognized compensation expense as additional proceeds. As the Company incurred a net loss during the three months ended June 30, 2025 and 2024, all outstanding restricted stock units and performance-based restricted stock units have an anti-dilutive effect and are therefore excluded from the computation of diluted weighted average shares outstanding.

**NOTE 17 – INCOME TAXES**

Generally, the Company's effective tax rate differs from the U.S. federal statutory income tax rate primarily due to foreign withholding taxes and U.S. taxation on foreign earnings, which are partially offset by research and development tax credits and the foreign derived intangible income deduction.

The Company's effective tax rates were 30.1% and 2.3% for the three months ended June 30, 2025 and 2024, respectively. The effective tax rate for the three months ended June 30, 2025 differed from the effective tax rate for the three months ended June 30, 2024, primarily related to a decrease in foreign withholding taxes offset by a significant goodwill impairment charge incurred during the three months ended June 30, 2024 which was not deductible for tax purposes.

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On July 4, 2025, new U.S tax legislation was signed into law (known as the "One Big Beautiful Bill Act" or "OBBBA") which makes permanent many of the tax provisions enacted in 2017 as part of the Tax Cuts and Jobs Act that were set to expire at the end of 2025. In addition, the OBBBA makes changes to certain U.S. corporate tax provisions, but many are generally not effective until 2026. The Company is currently evaluating the impact of the new legislation but does not expect it to have a material impact on the results of operations.

**NOTE 18 – SEGMENT AND GEOGRAPHIC INFORMATION**

The Company's operating segments are determined based on the units that constitute a business for which discrete financial information is available and for which operating results are regularly reviewed by the chief operating decision maker (CODM). The Company's President and CEO is the CODM. Operating results are reviewed by the CODM primarily at the consolidated entity level for the purpose of making resource allocation decisions and for evaluating financial performance, primarily by monitoring actual results compared to forecasted results as well as by reviewing year-over-year results. The Company's CODM evaluates company-wide performance and determines allocation of resources based on multiple performance measures, including but not limited to net income (loss).

The Company has determined it operates as a single operating segment and has one reportable segment, which includes product and service revenue related to the sale of enterprise performance management, carrier service assurance, cybersecurity, and Distributed Denial-of-Service protection solutions. The Company's results for the one reportable segment are the same as presented in the Company's consolidated statements of operations and there is no expense information that is supplemental to those disclosed in these consolidated financial statements, which are regularly provided to the CODM. The measure of segment assets is reported on the Company's consolidated balance sheet as total assets. Segment asset information is not used by the CODM to allocate resources.

The Company manages its business in the following geographic areas: United States, Europe, Asia and the rest of the world. The Company's policies mandate compliance with economic sanctions and the export controls.

Total revenue by geography is as follows (in thousands):

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **June 30,** | **June 30,** |
| | **2025** | **2024** |
| United States | $100504 | $99949 |
| Europe | 30714 | 31394 |
| Asia | 15050 | 11890 |
| Rest of the world | 40479 | 31332 |
|  | $186747 | $174565 |

---

The United States revenue includes sales to resellers in the United States. These resellers fulfill customer orders and may subsequently ship the Company's products to international locations. Further, the Company determines the geography of its sales after considering where the contract originated. A majority of revenue attributable to locations outside of the United States is a result of export sales. Substantially all of the Company's identifiable assets are located in the United States.

**NOTE 19 – SUBSEQUENT EVENTS**

The Company has evaluated subsequent events for adjustment to or disclosure in its consolidated financial statements through the date the consolidated financial statements were issued.

On August 4, 2025, the Company sold its entire equity investment in Napatech for the equivalent of approximately $12 million.

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***Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations***

*You should read the following discussion and analysis of our financial condition and results of operations in conjunction with the condensed consolidated financial statements and notes thereto included elsewhere in this Quarterly Report and in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025, filed with the Securities and Exchange Commission (SEC) on May 15, 2025 (Annual Report). This discussion contains forward-looking statements that involve risks and uncertainties. When reviewing the discussion below, you should keep in mind the substantial risks and uncertainties that could impact our business. In particular, we encourage you to review the risks and uncertainties described in Part I, Item 1A "Risk Factors" in our Annual Report. These risks and uncertainties could cause actual results to differ significantly from those projected in forward-looking statements contained in this report or implied by past results and trends. Forward-looking statements are statements that attempt to forecast or anticipate future developments in our business, financial condition or results of operations. See the section titled "Cautionary Statement Concerning Forward-Looking Statements" that appears at the beginning of this Quarterly Report. These statements, like all statements in this report, speak only as of the date of this Quarterly Report (unless another date is indicated), and, except as required by law, we undertake no obligation to update or revise these statements in light of future developments.*

***Overview***

We are an industry leader with four decades of experience in providing service assurance and cybersecurity solutions that are based on our pioneering deep packet inspection technology at scale, which is used by many Fortune 500 companies to protect their digital business services against disruption. Service providers and enterprises, including local, state and federal government agencies, rely on our solutions to achieve the visibility and protection necessary to optimize network performance, ensure the delivery of high-quality, mission-critical applications and services, gain timely insight into the end user experience and to protect their networks from attack. With our offerings, customers can quickly, efficiently and effectively identify and resolve issues that result in downtime, interruptions to services, poor service quality or compromised data, thereby reducing meantime-to-resolution of issues and driving compelling returns on their investments in their networks and broader technology initiatives. Some of the more significant technology trends and catalysts for our business include the evolution of customers' digital transformation initiatives such as the migration to cloud environments and the edges of their networks, the rapidly evolving cybersecurity threat landscape, artificial intelligence and business analytics advancements, and the 5G technology evolution in both the service provider and enterprise customer verticals.

Our operating results are influenced by a number of factors, including, but not limited to, the volume, mix, and quantity of products and services sold, pricing, costs and availability of materials used in our products, growth in employee-related costs, including commissions, and the expansion of our operations. Factors that affect our ability to maximize our operating results include, but are not limited to, our ability to introduce and enhance existing products, the marketplace acceptance of those new or enhanced products, continued expansion into international markets, expansion into new or adjacent markets, development of strategic partnerships, competition, successful acquisition and integration efforts, and our ability to control costs, and make improvements in a highly competitive industry.

***Global and Macroeconomic Conditions***

We continue to closely monitor current global and macroeconomic conditions, including the impacts of the ongoing war in Ukraine and hostilities in the Middle East, global geopolitical tension, stock market volatility, industry-specific capital spending trends, exchange rate fluctuations, inflation, interest rates, international trade relations (including trade protection measures, such as tariffs and other trade barriers), and the risk of a recession, including the manner and extent to which they have impacted and could continue to impact our business, customers, employees, supply chain, and distribution network. The full extent of the impacts of these global and macroeconomic conditions remain uncertain. In response to the war in Ukraine, we ceased business operations in Russia, including sales, support on existing contracts and professional services. We remain cautiously optimistic amid ongoing macroeconomic uncertainty and constrained customer spending in the service provider market and firmly focused on driving product innovation, returning to annual revenue growth, and enhancing margins through continued disciplined cost management as we navigate the current macroeconomic landscape that may persist through fiscal year 2026. As a result, we have continued our efforts to manage discretionary costs and align spending with the current environment while we continue to execute on our long-term strategic plans.

Though we continue to monitor the impacts of evolving global and macroeconomic conditions on our business, we believe our current cash reserves and access to capital through our revolving credit facility leave us well-positioned to manage our business in today's environment. We expect net cash provided by operations combined with cash, cash equivalents, marketable securities and investments and borrowing availability under our revolving credit facility to provide sufficient liquidity to fund current obligations, capital spending, debt service requirements and working capital requirements over at least the next twelve months. We continue to take actions to manage costs and increase productivity throughout our company, including managing discretionary spending and hiring activities, but are continuing to invest in areas that advance our business

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for the future. In addition to our cash equivalents, based on covenant levels at June 30, 2025, the Company had $600 million available under a revolving credit facility.

***Results Overview***

Total revenue increased $12.2 million, or 7%, for the three months ended June 30, 2025, as compared to total revenue for the three months ended June 30, 2024, due to an increase in revenue from both enterprise customers and service provider customers from cybersecurity offerings and enterprise customers from service assurance offerings.

Our gross profit percentage increased two percentage points to 76.7% during the three months ended June 30, 2025, as compared with the three months ended June 30, 2024, primarily due to product revenue growth and lower product and support costs.

Net loss for the three months ended June 30, 2025 was $3.7 million, as compared with net loss for the three months ended June 30, 2024 of $443.4 million. The decrease of $439.7 million in net loss was primarily due to a $427.0 million decrease in goodwill impairment charges, a $16.0 million decrease from restructuring charges, a $12.2 million increase in revenue, a $5.2 million decrease in other income primarily due to the change in fair value of the equity investment in Napatech, a $4.8 million decrease in employee related expenses as a result of a decrease in headcount, partially offset by an increase in variable incentive compensation, a $1.4 million decrease in interest expense due to repayment of outstanding loan balance and a $1.1 million decrease in amortization expense of intangible assets. These decreases to net loss were partially offset by an $11.2 million increase in income tax expense, a $2.3 million increase in foreign exchange expense, and a $1.0 million increase in salaries associated with executive transition costs.

At June 30, 2025, we had cash, cash equivalents, marketable securities and investments (current and non-current) of $543.5 million. This represents an increase of $51.0 million from $492.5 million at March 31, 2025. This increase was primarily due to $73.6 million of net cash provided by operations, $4.7 million increase from the exchange rate changes and $3.5 million increase from the change in fair value of an equity investment, partially offset by $15.0 million used to repurchase shares of our common stock, $13.8 million used for tax withholdings on restricted stock units and $1.9 million used for capital expenditures during the three months ended June 30, 2025.

***Use of Non-GAAP Financial Measures***

We supplement the United States generally accepted accounting principles (GAAP) financial measures we report in quarterly and annual earnings announcements, investor presentations and other investor communications by reporting the following non-GAAP measures: non-GAAP gross profit, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share (diluted) and non-GAAP earnings before interest and other expense, income taxes, depreciation, and amortization (EBITDA) from operations (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 related to non-GAAP gross profit and also removes goodwill impairment charges, executive transition costs and restructuring charges. Non-GAAP operating margin includes the foregoing adjustments related to non-GAAP income from operations. Non-GAAP net income removes the foregoing adjustments related to non-GAAP income from operations, and also removes the income tax effects of such adjustments. Non-GAAP EBITDA from operations removes the aforementioned items related to non-GAAP income from operations and also removes non-acquisition related depreciation expense.

These non-GAAP measures are not prepared in accordance with GAAP, should not be considered an alternative for measures prepared in accordance with GAAP (revenue, gross profit, operating margin, net income and diluted net income per share), and may have limitations because they do not reflect all our results of operations as determined in accordance with GAAP. These non-GAAP measures should only be used to evaluate our 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. These non-GAAP measures should not be used to evaluate our results of operations against those of our peers or other companies, as the definitions and calculations of our non-GAAP measures may not be the same as those used by other companies, even if the measures share the same name.

Management believes these non-GAAP financial measures will enhance the reader's overall understanding of our current financial performance and our 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 we plan and measure our business. We believe that providing these non-GAAP measures affords investors a view of our operating results that may be more easily compared to peer companies and also enables investors to consider our operating results on both a GAAP and non-GAAP basis during and following the integration period of our acquisitions. Presenting the GAAP measures on their own may not be indicative of our core operating results. Furthermore, management believes that the presentation of non-GAAP measures when shown in

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conjunction with the corresponding GAAP measures provides useful information to management and investors regarding present and future business trends relating to our financial condition and results of operations.

The following table reconciles gross profit, income (loss) from operations, net income (loss) and net income (loss) per share on a GAAP and non-GAAP basis for the three months ended June 30, 2025 and 2024, respectively (dollars in thousands, except for per share data):

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **June 30,** | **June 30,** |
| | **2025** | **2024** |
| Revenue (GAAP) | $186747 | $174565 |
| GAAP gross profit | $143325 | $130196 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense  | 3160 | 3320 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquired intangible assets | 550 | 995 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition related depreciation expense | 2 | 2 |
| Non-GAAP gross profit | $147037 | $134513 |
| GAAP loss from operations | $(6564) | $(463324) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense  | 19959 | 21198 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquired intangible assets | 11669 | 12609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges | 529 | 16563 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment |  | 426967 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive transition costs | 959 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition related depreciation expense | 12 | 12 |
| Non-GAAP income from operations | $26564 | $14025 |
| GAAP net loss | $(3679) | $(443376) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense | 19959 | 21198 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of acquired intangible assets | 11669 | 12609 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges | 529 | 16563 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment |  | 426967 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive transition costs | 959 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition-related depreciation expense | 12 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax adjustments | (4712) | (13395) |
| Non-GAAP net income | $24737 | $20578 |

---

---

| | | |
|:---|:---|:---|
| GAAP diluted net loss per share | $(0.05) | $(6.20) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Per share impact of non-GAAP adjustments identified above | 0.39 | 6.48 |
| Non-GAAP diluted net income per share | $0.34 | $0.28 |
| GAAP loss from operations | $(6564) | $(463324) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Previous adjustments to determine non-GAAP income from operations | 33128 | 477349 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-GAAP income from operations | 26564 | 14025 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation excluding acquisition-related depreciation expense | 2776 | 3784 |
| Non-GAAP EBITDA from operations | $29340 | $17809 |

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***Critical Accounting Policies and Estimates***

Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with GAAP consistently applied. The preparation of these consolidated financial statements requires us to make significant estimates and judgments that affect the amounts reported in our consolidated financial statements and the accompanying notes. These items are regularly monitored and analyzed by management for changes in facts and circumstances, and material changes in these estimates could occur in the future. Changes in estimates are recorded in the period in which they become known. We base our estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from our estimates.

While all of our accounting policies impact the consolidated financial statements, certain policies are viewed to be critical. Critical accounting policies are those that are both most important to the portrayal of our financial condition and results of operations and that require management's most subjective or complex judgments and estimates. We consider the following accounting policies to be critical in fully understanding and evaluating our financial results:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• revenue recognition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• valuation of goodwill.

Please refer to the critical accounting policies set forth in our Annual Report for a description of all of our critical accounting policies and estimates.

**Three Months Ended June 30, 2025 and 2024** 

**Revenue**

Product revenue consists of sales of our hardware products and licensing of our software products. Service revenue consists of customer support agreements, consulting, training, subscription-based services, and stand-ready software as a service offerings. During the three months ended June 30, 2025 and June 30, 2024, no direct customers or channel partners accounted for more than 10% of our total revenue.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Change** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** | **Change** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **Change** |
| | **2025** | **2025** | **2024** | **2024** | **Change** |
| | | **% of<br>Revenue** | | **% of<br>Revenue** | $**%** |
| Revenue: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product | $72993 | 39% | $61169 | 35% | 19% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service | 113754 | 61 | 113396 | 65 | —% |
| Total revenue | $186747 | 100% | $174565 | 100% | 7% |

---

***Product.*** The 19.3%, or $11.8 million, increase in product revenue compared with the same period last year was primarily due to an increase in revenue from both enterprise customers and service provider customers from cybersecurity offerings and enterprise customers from service assurance offerings.

***Service.*** The 0.3%, or $0.4 million, increase in service revenue compared with the same period last year was primarily due to an increase in revenue from maintenance contracts as well as cloud and subscription services.

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**Table of Contents**

Total revenue by geography was as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Change** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** | **Change** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **Change** |
| | **2025** | **2025** | **2024** | **2024** | **Change** |
| | | **% of<br>Revenue** | | **% of<br>Revenue** | $**%** |
| United States | $100504 | 54% | $99949 | 57% | 1% |
| International: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Europe | 30714 | 16 | 31394 | 18 | (2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asia | 15050 | 8 | 11890 | 7 | 27% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rest of the world | 40479 | 22 | 31332 | 18 | 29% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal international | 86243 | 46 | 74616 | 43 | 16% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | $186747 | 100% | $174565 | 100% | 7% |

---

United States revenue increased 1%, or $0.6 million, primarily due to an increase in revenue from enterprise customers from both service assurance and cybersecurity offerings, partly offset by a decrease in revenue from service provider customers from both service assurance and cybersecurity offerings. The 16%, or $11.6 million, increase in international revenue compared with the same period last year was primarily driven by an increase in revenue from service provider customers from cybersecurity offerings and an increase from enterprise customers from service assurance offerings.

Total revenue by product line was as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Change** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** | **Change** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **Change** |
| | **2025** | **2025** | **2024** | **2024** | **Change** |
| | | **% of<br>Revenue** | | **% of<br>Revenue** | $**%** |
| Revenue: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service assurance | $118330 | 63% | $116733 | 67% | 1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cybersecurity | 68417 | 37 | 57832 | 33 | 18% |
| Total revenue | $186747 | 100% | $174565 | 100% | 7% |

---

The 1%, or $1.6 million, increase in revenue from the service assurance product line was due to an increase in product revenue from enterprise customers, partially offset by a decrease in both product and service revenue from service provider customers. The 18%, or $10.6 million, increase in revenue from the cybersecurity product line was due to higher product revenue from both enterprise and service provider customers, and an increase in service revenue from both enterprise customers and service provider customers.

Total revenue by customer vertical was as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Change** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** | **Change** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **Change** |
| | **2025** | **2025** | **2024** | **2024** | **Change** |
| | | **% of<br>Revenue** | | **% of<br>Revenue** | $**%** |
| Revenue: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service provider | $75969 | 41% | $80475 | 46% | (6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Enterprise | 110778 | 59 | 94090 | 54 | 18% |
| Total revenue | $186747 | 100% | $174565 | 100% | 7% |

---

The 6%, or $4.5 million, decrease in revenue from the service provider customer vertical was due to a decrease in product and service revenue from the service assurance product line, partially offset by an increase in both product and service revenue

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from the cybersecurity product line. The 18%, or $16.7 million, increase in revenue from the enterprise customer vertical was due to an increase in product and service revenue from both the service assurance and cybersecurity product line.

**Cost of Revenue and Gross Profit**

Cost of product revenue consists primarily of material components, manufacturing personnel expenses, packaging materials, overhead and amortization of capitalized software, acquired developed technology and core technology. Cost of service revenue consists primarily of personnel, material, overhead and support costs.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Change** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** | **Change** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **Change** |
| | **2025** | **2025** | **2024** | **2024** | **Change** |
| | | **% of<br>Revenue** | | **% of<br>Revenue** | $**%** |
| Cost of revenue |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product | $11925 | 6% | $12004 | 7% | (1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service | 31497 | 17 | 32365 | 19 | (3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenue | $43422 | 23% | $44369 | 26% | (2)% |
| Gross profit: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product $ | $61068 | 33% | $49165 | 28% | 24% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product gross profit % | 84% |  | 80% |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service $ | $82257 | 44% | $81031 | 46% | 2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service gross profit % | 72% |  | 71% |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross profit $ | $143325 |  | $130196 |  | 10% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross profit % | 77% |  | 75% |  |  |

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***Product.*** The 1%, or $0.1 million, decrease in cost of product revenue for the three months ended June 30, 2025 compared to the same period last year was primarily due to a $0.6 million decrease in the amortization of intangible assets, a $0.2 million decrease in depreciation and a $0.1 million decrease in inventory obsolescence charges, offset by $0.8 million increase in direct material costs. The product gross profit percentage increased by 24 percentage points to 84% during the three months ended June 30, 2025 as compared with the three months ended June 30, 2024. The 24%, or $11.9 million, increase in product gross profit was attributable to the 19%, or $11.8 million, increase in product revenue and by the 1%, or $0.1 million, decrease in cost of product revenue.

***Service***. The 3%, or $0.9 million, decrease in cost of service revenue for the three months ended June 30, 2025 compared to the same period last year was primarily due to a $1.6 million decrease in employee-related costs associated with a reduction in headcount. The decrease in cost of service revenue was partially offset by an increase of $0.8 million in the cost of materials used to support customers under service contracts. The service gross profit percentage increased by two percentage points to 72% during the three months ended June 30, 2025 as compared with the three months ended June 30, 2024. The $1.2 million increase in service gross profit was attributable to the 3%, or $0.9 million, decrease in cost of service revenue and by a $0.4 million increase in service revenue.

***Gross profit.*** Our gross profit increased by 10%, or $13.1 million, during the three months ended June 30, 2025 when compared with the three months ended June 30, 2024. This increase was attributable to the increase in revenue of 7%, or $12.2 million and the 2%, or $0.9 million, decrease in cost of revenue. The gross profit percentage increased by two percentage points to 77% for the three months ended June 30, 2025 as compared with the three months ended June 30, 2024.

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**Operating Expenses**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Change** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** | **Change** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **Change** |
| | **2025** | **2025** | **2024** | **2024** | **Change** |
| | | **% of<br>Revenue** | | **% of<br>Revenue** | $**%** |
| Research and development | $39789 | 21% | $42465 | 24% | (6)% |
| Sales and marketing | 70595 | 38 | 70330 | 40 | —% |
| General and administrative | 27857 | 15 | 25581 | 15 | 9% |
| Amortization of acquired intangible assets | 11119 | 6 | 11614 | 7 | (4)% |
| Restructuring charges | 529 |  | 16563 | 9 | (97)% |
| Goodwill impairment |  |  | 426967 | 245 | (100)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | $149889 | 80% | $593520 | 340% | (75)% |

---

***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.

The 6%, or $2.7 million, decrease in research and development expenses for the three months ended June 30, 2025 compared to the same period last year was primarily due to a $2.5 million decrease in employee-related costs associated with a decrease in headcount.

***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.

The 0.4%, or $0.3 million, increase in total sales and marketing expenses for the three months ended June 30, 2025 compared to the same period last year was primarily due to a $1.5 million increase in commissions expense. This increase was partially offset by a $0.5 million decrease in advertising expenses, $0.4 million decrease in trade shows and $0.3 million decrease in employee-related costs associated with a decrease in cost due to a reduction in headcount.

***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.

The 9%, or $2.3 million, increase in general and administrative expenses for the three months ended June 30, 2025 compared to the same period last year was primarily due to a $1.0 million increase in salary expense associated with the cost of the one-year Senior Advisor roles of our retiring Chief Financial Officer and Chief Operating Officer that commenced on June 1, 2025, a $0.7 million increase in legal expenses, a $0.6 million increase in software licenses and maintenance expenses and a $0.6 million increase in contractor expenses. This increase was partially offset by a decrease of $0.5 million in variable incentive compensation expense.

***Amortization of acquired intangible assets*.** Amortization of acquired intangible assets consists primarily of amortization of customer relationships, definite-lived trademarks and trade names, and developed technology related to our acquisitions of Danaher Corporation's communications business (Comms Transaction), Network General Corporation, Avvasi Inc. and Efflux Systems, Inc.

The 4%, or $0.5 million, decrease in amortization of acquired intangible assets was largely due to a decrease in the amortization of intangible assets acquired as part of the Comms Transaction and the Network General Corporation transaction.

***Restructuring charges.*** During the third quarter of fiscal year 2025, we entered into transition agreements that provided termination benefits for certain employees to ensure an orderly transition of responsibilities for continuity purposes. As a result of this related workforce change, during the three months ended June 30, 2025, we recorded restructuring charges totaling $0.5 million. During the three months ended June 30, 2024, we recorded restructuring charges totaling $16.6 million related to one-time termination benefits for one hundred sixteen employees who voluntarily terminated their employment through our voluntary separation program that was implemented in the first quarter of fiscal year 2025.

***Goodwill impairment.*** During the first quarter of fiscal year 2025, due to a decrease in our stock price and overall market capitalization, along with other qualitative considerations including the continued impact from the conditions in the macroeconomic environment, it was determined a Triggering Event occurred, indicating goodwill may be impaired.

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Accordingly, we conducted an interim quantitative impairment test of its goodwill at June 30, 2024 using the market approach to estimate the fair value of its reporting unit. As a result of that interim impairment test, we recorded a $427.0 million goodwill impairment charge during the three months ended June 30, 2024.

The key assumption in the market approach was the company-specific control premium, which was estimated using expected synergies that would be realized by a hypothetical buyer. We also compared the implied control premium to recent control premiums paid in the industry, as evidenced by guideline public company comparable transactions. This information corroborated that the company-specific control premium was within the range of premiums for other companies operating in the industry. Changes in the estimates or assumptions used in its quantitative impairment test could materially affect the determination of fair value and the associated goodwill impairment assessment. Potential events and circumstances that could have an adverse impact on our estimates and assumptions include, but are not limited to, continued increases in costs, and high interest rates and other macroeconomic factors. An increase or decrease of 1% in the company-specific control premium used in the determination of the fair value of the reporting unit under the market approach would have resulted in an increase or decrease in the goodwill impairment recorded during the three months ended June 30, 2024 of approximately $13.0 million.

**Interest and Other Income (Expense), Net*.*** Interest and other income (expense), net includes interest earned on our cash, cash equivalents and marketable securities, interest expense and other non-operating gains or losses.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Change** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** | **Change** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **Change** |
| | **2025** | **2025** | **2024** | **2024** | **Change** |
| | | **% of<br>Revenue** | | **% of<br>Revenue** | $**%** |
| Interest and other income (expense), net | $3736 | 2% | $9628 | 6% | (61)% |

---

The 61%, or $5.9 million, decrease in interest and other income (expense), net for the three months ended June 30, 2025 compared to the same period last year was primarily due to $5.2 million decrease from the change in fair value of the equity investment in Napatech and a $2.3 million increase in foreign exchange expense, partially offset by a $1.4 million decrease in interest expense.

**Income Tax Expense (Benefit)**. The effective tax rates were 30.1% and 2.3% for the three months ended June 30, 2025 and 2024, respectively. The effective tax rate for the three months ended June 30, 2025 differed from the effective tax rate for the three months ended June 30, 2024, primarily related to a decrease in foreign withholding taxes offset by a $427.0 million goodwill impairment charge incurred during the three months ended June 30, 2024 which was not deductible for tax purposes.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Change** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** | **Change** |
| | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **(Dollars in Thousands)** | **Change** |
| | **2025** | **2025** | **2024** | **2024** | **Change** |
| | | **% of<br>Revenue** | | **% of<br>Revenue** | $**%** |
| Income tax expense (benefit) | $851 | —% | $(10320) | (6)% | 108% |

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**Backlog**

We produce our products on the basis of our forecast of near-term demand and maintain inventory in advance of receipt of firm orders from customers. We configure our products to customer specifications and generally deliver products shortly after receipt of the purchase order. Service engagements are also included in certain orders. Customers generally may reschedule or cancel unfulfilled orders with little or no penalty. Our total backlog at any particular time is not necessarily indicative of future sales levels. Within total backlog, fulfillable backlog includes what we consider to represent orders that are generally available to be delivered to customers as of the end of the reporting period. Delivery of our fulfillable backlog typically occurs early in the subsequent quarter. However, delivery may be delayed or accelerated due to various other reasons, including but not limited to, changes in timing of customer projects and product delivery schedules, which may not be within our control. Our total combined product backlog at June 30, 2025 was $30.9 million compared to $33.1 million at March 31, 2025. Combined product backlog included fulfillable backlog of $23.3 million and $25.1 million at June 30, 2025 and March 31, 2025, respectively. Total backlog includes orders that were received late in the quarter and radio frequency propagation modeling projects, as well as multi-year enterprise license agreements. In some cases, we have begun these projects but have not yet hit billable

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milestones. At June 30, 2025 and March 31, 2025 deferred revenue contained a gross balance of $6.3 million and $8.3 million, respectively, related to these radio frequency propagation modeling project orders.

**Liquidity and Capital Resources**

Cash, cash equivalents, marketable securities and investments consisted of the following (in thousands):

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| | | |
|:---|:---|:---|
| | **June 30,<br>2025** | **March 31,<br>2025** |
| Cash and cash equivalents | $489572 | $457415 |
| Short-term marketable securities and investments | 42937 | 34058 |
| Long-term marketable securities | 10997 | 1004 |
| Cash, cash equivalents, marketable securities and investments | $543506 | $492477 |

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***Cash, cash equivalents, marketable securities and investments***

At June 30, 2025, cash, cash equivalents, marketable securities and investments (current and non-current) totaled $543.5 million, a $51.0 million increase from $492.5 million at March 31, 2025. This increase was primarily due to $73.6 million of net cash provided by operations and $13.6 million proceeds from sales and maturity of marketable securities, partially offset by $29.0 million used to purchase marketable securities, $15.0 million used to repurchase shares of our common stock, $13.8 million used for tax withholdings on restricted stock units, and $1.9 million used for capital expenditures, during the three months ended June 30, 2025. Cash and short-term investments held outside of the United States was approximately $227.7 million.

Cash and cash equivalents were impacted by the following:

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| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **June 30,** | **June 30,** |
| | **(in thousands)** | **(in thousands)** |
| | **2025** | **2024** |
| Net cash provided by operating activities | $73552 | $38428 |
| Net cash used in investing activities | $(17291) | $(3094) |
| Net cash used in financing activities | $(28778) | $(62157) |

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***Net cash from operating activities***

Cash provided by operating activities was $73.6 million during the three months ended June 30, 2025, compared with $38.4 million of cash provided by operating activities during the three months ended June 30, 2024. The $35.1 million increase was primarily driven by a $439.7 million decrease in net loss related to a reduction of $427.0 million in a goodwill impairment charge. Also contributing to the increase was a $28.1 million increase due to change in deferred revenue, a $10.6 million increase associated with deferred income tax, and a $9.1 million increase from accounts receivable. Partially offsetting these increases was a $18.9 million decrease associated with accrued compensation and other expenses, a $5.4 million decrease associated with change from accounts payable, a $5.3 million decreased related to a change in prepaid expenses and other assets for the three months ended June 30, 2025 as compared with the three months ended June 30, 2024.

***Net cash from investing activities***

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| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **June 30,** | **June 30,** |
| | **(in thousands)** | **(in thousands)** |
| | **2025** | **2024** |
| Cash used in investing activities included the following: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of marketable securities and investments | $(29031) | $(12151) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales and maturity of marketable securities | 13618 | 10325 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of fixed assets | (1878) | (1268) |
|  | $(17291) | $(3094) |

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Cash used in investing activities was $17.3 million during the three months ended June 30, 2025, compared with $3.1 million of cash used in investing activities during the three months ended June 30, 2024. The $14.2 million increase in cash used in investing activities was partially due in part to an additional $16.9 million purchase and sale of marketable securities during the three months ended June 30, 2025 as compared with the three months ended June 30, 2024, an additional $0.6 million in fixed asset purchase, partially offset by a $3.3 million increase in proceeds from maturity of marketable securities in the three months ended June 30, 2025 as compared to the three months ended June 30, 2024.

Our investments in property and equipment consist primarily of computer equipment, demonstration units, office equipment and facility improvements. We plan to continue to invest in capital expenditures to support our infrastructure through the remainder of fiscal year 2026.

***Net cash from financing activities***

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| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **June 30,** | **June 30,** |
| | **(in thousands)** | **(in thousands)** |
| | **2025** | **2024** |
| Cash used in financing activities included the following: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock under stock plans | $1 | $2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock repurchases | (15014) | (25000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax withholding on restricted stock units | (13765) | (12159) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of long-term debt |  | (25000) |
|  | $(28778) | $(62157) |

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Cash used in financing activities changed by $33.4 million to $28.8 million during the three months ended June 30, 2025, compared with $62.2 million of cash used in financing activities during the three months ended June 30, 2024.

During the three months ended June 30, 2025, we repurchased a total of 761,249 shares for $15.0 million in the open market under the 2022 Share Repurchase Program. During the three months ended June 30, 2024, we repurchased a total of 1,347,900 shares for $25.0 million in the open market under the 2022 Share Repurchase Program.

In connection with the delivery of our common stock upon vesting of restricted stock units, we withheld 597,115 and 617,826 shares at a cost of $13.8 million and $12.2 million related to minimum statutory tax withholding requirements on these restricted stock units during the three months ended June 30, 2025 and 2024, respectively. These withholding transactions do not fall under the repurchase program described above, and therefore do not reduce the number of shares that are available for repurchase under that program.

During the three months ended June 30, 2025, there were no amounts outstanding under the Third Amended and Restated Credit Agreement (as defined below) and therefore no amounts repaid. During the three months ended June 30, 2024, we repaid $25.0 million of borrowings under the Second Amended and Restated Credit Agreement (as defined below).

***Sources of Cash and Cash Requirements***

***Credit Facility***

On July 27, 2021, we amended and extended our existing credit facility (as amended, the Second Amended and Restated Credit Agreement), which provided for a five-year, $800.0 million senior secured revolving credit facility, including a letter of credit sub-facility of up to $75.0 million. The commitments under the Second Amended and Restated Credit Agreement were set to expire on July 27, 2026, and any outstanding loans were due on that date. On May 13, 2024, we repaid $25.0 million of borrowings under the Second Amended and Restated Credit Agreement.

On October 4, 2024, we amended and restated the Second Amended and Restated Credit Agreement (as amended and restated, the Third Amended and Restated Credit Agreement) with a syndicate of lenders by and among: us, as borrower; certain subsidiaries of NetScout Systems, Inc., as borrower; JPMorgan Chase Bank, N.A., as administrative agent and collateral agent; JPMorgan Chase Bank, N.A., Bank of America, N.A., RBC Capital Markets, PNC Capital Markets LLC and Mizuho Bank, Ltd, as joint lead arrangers and joint bookrunners; TD Bank, N.A. and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company, as co-documentation agents; and the lenders and issuing banks party thereto.

The Third Amended and Restated Credit Agreement provides for a five-year, $600.0 million senior secured revolving credit facility, including a letter of credit sub-facility of up to $75.0 million. We may elect to use the amended credit facility for working capital and other general corporate purposes (including to repurchase shares of our common stock). The commitments

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under the Third Amended and Restated Credit Agreement will expire on October 4, 2029, and any outstanding loans will be due on that date.

In connection with the Third Amended and Restated Credit Agreement, we paid off the outstanding balance of $75.0 million under the Second Amended and Restated Credit Agreement on October 4, 2024 by borrowing the same amount under the Third Amended and Restated Credit Agreement. Additionally, we recorded a loss on the extinguishment of debt of $1.1 million, representing the write off of unamortized deferred financing costs, which was included in interest expense in the consolidated statements of operations for the fiscal year ended March 31, 2025. On February 3, 2025, we paid the outstanding balance of $75.0 million in full under the Third Amended and Restated Credit Agreement. At June 30, 2025, there were no amounts outstanding under the Third Amended and Restated Credit Agreement.

At our 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. For the period from the delivery of our financial statements for the year ended March 31, 2025, until we have delivered financial statements for the quarter ended June 30, 2025, the applicable margin will be 1.00% per annum for term SOFR loans and 0% per annum for Alternate Base Rate loans, and thereafter the applicable margin will vary depending on our consolidated gross leverage ratio, ranging from 1.00% per annum for Alternate Base Rate loans and 2.00% per annum for term SOFR loans if our consolidated gross leverage ratio is greater than 3.50 to 1.00, down to 0% per annum for Alternate Base Rate loans and 1.00% per annum for term SOFR loans if our consolidated gross leverage ratio is equal to or less than 1.50 to 1.00.

Our consolidated gross leverage ratio is the ratio of our consolidated total debt compared to our consolidated EBITDA as defined in the Third Amended and Restated Credit Agreement (consolidated adjusted EBITDA). Consolidated adjusted EBITDA includes certain adjustments, including, without limitation, adjustments relating to extraordinary, unusual or non-recurring charges, certain restructuring charges, non-cash charges, certain transaction costs and expenses and certain pro forma adjustments in connection with material acquisitions and dispositions, all as set forth in detail in the Third Amended and Restated Credit Agreement.

Commitment fees will accrue on the daily unused amount of the credit facility. For the period from the delivery of our financial statements for the quarter ended March 31, 2025, until we have delivered financial statements for the quarter ended June 30, 2025, the commitment fee will be 0.15% per annum, and thereafter the commitment fee will vary depending on our consolidated gross leverage ratio, ranging from 0.30% per annum if our consolidated gross leverage ratio is greater than 2.75 to 1.00, down to 0.15% per annum if our consolidated gross leverage ratio is equal to or less than 1.50 to 1.00.

Letter of credit participation fees are payable to each lender providing the letter of credit sub-facility on the amount of such lender's letter of credit exposure, during the period from the closing date of the Third Amended and Restated Credit Agreement to, but excluding, the date which is the later of (i) the date on which such lender's commitment terminates or (ii) the date on which such lender ceases to have any letter of credit exposure, at a rate per annum equal to the applicable margin for term SOFR loans. Additionally, we will pay a fronting fee to each issuing bank in amounts to be agreed to between us and the applicable issuing bank.

Interest on Alternate Base Rate loans is payable at the end of each calendar quarter. Interest on term SOFR loans is payable at the end of each interest rate period or at the end of each three-month interval within an interest rate period if the period is longer than three months. We may also prepay loans under the Third Amended and Restated Credit Agreement at any time, without penalty, subject to certain notice requirements.

The loans and other obligations under the credit facility are (a) guaranteed by each of our wholly-owned material domestic restricted subsidiaries, subject to certain exceptions, and (b) secured by substantially all of the assets of us and the subsidiary guarantors, including a pledge of all the capital stock of material subsidiaries held directly by us and the subsidiary guarantors (which pledge, in the case of any foreign subsidiary, is limited to 65% of the voting stock), subject to certain customary exceptions and limitations. The Third Amended and Restated Credit Agreement generally prohibits any other liens on the assets of NetScout and our restricted subsidiaries, subject to certain exceptions as described in the Third Amended and Restated Credit Agreement.

The Third Amended and Restated Credit Agreement contains certain covenants applicable to us and our restricted subsidiaries, including, without limitation, limitations on additional indebtedness, liens, various fundamental changes, dividends and distributions, investments (including acquisitions), transactions with affiliates, asset sales, including sale-leaseback transactions, speculative hedge agreements, payment of junior financing, changes in business and other limitations customary in senior secured credit facilities. The Third Amended and Restated Credit Agreement provides for certain baskets that are available to us and our restricted subsidiaries to incur additional indebtedness, to repay junior financing, for asset sales and to make investments and restricted payments. Such baskets are substantially similar to the baskets set forth in our previous amended credit agreement.

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The Third Amended and Restated Credit Agreement requires us to maintain a certain consolidated net leverage ratio. Our consolidated net leverage ratio is the ratio of our Consolidated Total Debt minus the lesser of unrestricted cash and 125% of adjusted consolidated EBITDA compared to its adjusted consolidated EBITDA. Our maximum consolidated net leverage ratio is 4.00 to 1.00. These covenants and limitations are more fully described in the Third Amended and Restated Credit Agreement. At June 30, 2025, we were in compliance with all covenants, including the specified total consolidated net leverage ratio range of 4.00 to 1.00.

The Third Amended and Restated Credit Agreement provides that events of default will exist in certain circumstances, including failure to make payment of principal or interest on the loans when required, failure to perform certain obligations under the Third Amended and Restated Credit Agreement and related documents, defaults under certain other indebtedness, certain insolvency events, certain events arising under ERISA, a change of control and certain other events. Upon an event of default, the administrative agent may, or at the request of the holders of more than 50% in principal amount of the loans and commitments shall, terminate the commitments and accelerate the maturity of the loans and enforce certain other remedies under the Third Amended and Restated Credit Agreement and the other loan documents.

We had unamortized capitalized debt issuance costs, net of $3.1 million at June 30, 2025, which are being amortized over the life of the revolving credit facility. The unamortized capitalized debt issuance costs balance of $0.7 million was included as prepaid expenses and other current assets and a balance of $2.4 million was included as other assets in our consolidated balance sheet at June 30, 2025.

***Cash Requirements***

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.

We have contractual obligations for long-term debt, operating leases, unconditional purchase obligations, pension benefits plans and certain other long-term liabilities. Our obligations related to these items are described further within Management's Discussion and Analysis of Financial Condition and Results of Operations within our Annual Report. We expect net cash provided by operating activities combined with cash, cash equivalents, marketable securities and investments and borrowing availability under our revolving credit facility will provide sufficient liquidity to fund current obligations, capital spending, debt service requirements and working capital requirements over at least the next twelve months. We believe we will meet longer-term expected future cash requirements and obligations through a combination of cash flows from operating activities, available cash balances, and our revolving credit facility. However, macroeconomic conditions, including high inflation and interest rates, international trade relations (including trade protections measures, such as tariffs and other trade barriers), and a potential recession, could increase our anticipated funding requirements or make it more difficult for us to access capital.

A portion of our cash may be used to acquire or invest in complementary businesses or products, to obtain the right to use complementary technologies, to repay borrowings under our Third Amended and Restated Credit Agreement, or to repurchase shares of our common stock through our stock repurchase programs. From time to time, in the ordinary course of business, we evaluate potential acquisitions of such businesses, products or technologies. If our existing sources of liquidity are insufficient to satisfy our liquidity requirements, we may seek to sell additional equity or debt securities. Macroeconomic conditions, including high interest rates and volatility in the capital markets, may make it difficult for us to secure additional financing on favorable terms or at all. Any sale of additional equity or debt securities could result in additional dilution to our stockholders.

**Recent Accounting Pronouncements**

For information with respect to recent accounting pronouncements on our consolidated financial statements, see Note 1 contained in the "Notes to Consolidated Financial Statements" included in Part I of this Quarterly Report on Form 10-Q.

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***Item 3. Quantitative and Qualitative Disclosures About Market Risk***

*Interest Rate Risk*. We hold our cash, cash equivalents and investments for working capital purposes. Some of the securities we invest in are subject to market risk. This means that a change in prevailing interest rates may cause the principal amount of the investment to fluctuate. To minimize this risk, we maintain our portfolio of cash, cash equivalents and investments in a variety of securities, including money market funds and government debt securities. The risk associated with fluctuating interest rates is limited to our investment portfolio. Due to the short-term nature of these instruments, we believe that we do not have any material exposure to changes in the fair value of our investment portfolio as a result of changes in interest rates. Declines in interest rates, however, would reduce future interest income. The effect of a hypothetical 10% increase or decrease in overall interest rates would not have had a material impact on our operating results or the total fair value of the portfolio.

We are currently not exposed to any market risks related to fluctuations in interest rates related to our credit facility as we had no debt as of June 30, 2025.

*Foreign Currency Exchange Risk*. As a result of our foreign operations, we face exposure to movements in foreign currency exchange rates, primarily the Euro, British Pound, Canadian Dollar and Indian Rupee. The current exposures arise primarily from expenses denominated in foreign currencies. We currently engage in foreign currency hedging activities in order to limit these exposures. Periodically, we also enter into forward contracts to manage exchange risk associated with third-party transactions and for which we do not elect hedge accounting treatment. We do not use derivative financial instruments for speculative trading purposes.

At June 30, 2025, we had foreign currency forward contracts designated as hedging instruments with notional amounts totaling $11.9 million. The valuation of outstanding foreign currency forward contracts at June 30, 2025 resulted in a liability balance of $28 thousand, reflecting unfavorable contract rates in comparison to current market rates at this date. At March 31, 2025, we had foreign currency forward contracts designated as hedging instruments with notional amounts totaling $10.6 million. The valuation of outstanding foreign currency forward contracts at March 31, 2025 resulted in a liability balance of $55 thousand, reflecting unfavorable contract rates in comparison to current market rates and an asset balance of $197 thousand, reflecting favorable rates in comparison to current market rates at this date. The effect of a hypothetical 10% change in foreign currency exchange rates applicable to our business would not have a material impact on our historical consolidated financial statements. As our international operations grow, we will continue to reassess our approach to manage our risk relating to fluctuations in currency rates.

***Item 4. Controls and Procedures***

At June 30, 2025, NetScout, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act. Based upon that evaluation, our principal executive officer and principal financial officer concluded that, at June 30, 2025, our disclosure controls and procedures were effective at the reasonable assurance level in ensuring that material information relating to NetScout, including its consolidated subsidiaries, required to be disclosed by NetScout in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, including ensuring that such material information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

There were no changes in our internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) that occurred during the period covered by this quarterly report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**Table of Contents**

**PART II: OTHER INFORMATION**

***Item 1. Legal Proceedings***

From time to time, we may be subject to legal proceedings and claims in the ordinary course of business. In the opinion of management, none of the Company's current legal proceedings and claims, if determined adversely and based on the information known to the management as of the date of this Quarterly Report, is expected to have a material adverse effect on our financial condition, results of operations or cash flows.

***Item 1A. Risk Factors***

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A. "Risk Factors" in our Annual Report. The risks discussed in our Annual Report could materially affect our business, financial condition and future results. There have been no material changes to those risk factors since we filed our Annual Report. The risks described in our Annual Report are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition or operating results.

***Item 2. Unregistered Sales of Equity Securities and Use of Proceeds***

**Sales of Unregistered Securities**

None.

**Purchases of Equity Securities by the Issuer**

The following table provides information about purchases we made during the quarter ended June 30, 2025 of equity securities that are registered by us pursuant to Section 12 of the Exchange Act:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **Total Number<br>of Shares<br>Purchased (1)** | **Average Price<br>Paid per Share** | **Total Number of<br>Shares Purchased<br>as Part of Publicly<br>Announced Plans<br>or Programs** | **Maximum Number of Shares That May<br>Yet be Purchased<br>Under the Program** |
| 4/1/2025-4/30/2025 | 742923 | $19.66 | 742670 | 22280609 |
| 5/1/2025-5/31/2025 | 149487 | 22.70 | 18579 | 22262030 |
| 6/1/2025-6/30/2025 | 465954 | 23.14 |  | 22262030 |
| Total | 1358364 | $21.19 | 761249 | 22262030 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1)We purchased an aggregate of 597,115 shares during the three months ended June 30, 2025 transferred to us from employees in satisfaction of minimum tax withholding obligations associated with the vesting of restricted stock units during the period. Such purchases reflected in the table do not reduce the maximum number of shares that may be purchased under our 25 million share repurchase program authorized on May 3, 2022 (2022 Share Repurchase Program).

***Item 3. Defaults Upon Senior Securities***

None.

***Item 4. Mine Safety Disclosures***

Not Applicable.

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**Table of Contents**

***Item 5. Other Information***

**Insider Adoption or Termination of Trading Arrangements:**

During the fiscal quarter ended June 30, 2025, none of our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated any contracts, instructions or written plans for the purchase or sale of our securities, except as described in the table below:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name & Title** | **Date Adopted** | **Character of Trading Arrangement**<sup>(1)</sup> | **Aggregate Number of Shares of Common Stock to be Purchased or Sold Pursuant to Trading Arrangement** | **Duration**<sup>(2)</sup> | **Date Terminated** |
| Michael Szabados, Director and Senior Advisor <sup>3</sup> | May 23, 2025 | Rule 10b5-1 Trading Arrangement | Up to 16,000 shares to be sold | May 20, 2026 | N/A |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Except as indicated by footnote, each trading arrangement marked as a "Rule 10b5-1 Trading Arrangement" is intended to satisfy the affirmative defense of Rule 10b5-1(c), as amended (the "Rule").

&nbsp;&nbsp;&nbsp;&nbsp;(2) Represents the expiration date of the Rule 10b5-1 Trading Arrangement. Pursuant to the terms of the Rule 10b5-1 Trading Arrangement, the Rule 10b5-1 Trading Arrangement may terminate earlier upon the occurrence of certain events.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Mr. Szabados served as our Chief Operating Officer until May 31, 2025, when he resigned from that position.

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**Table of Contents**

***Item 6. Exhibits***

---

| | |
|:---|:---|
| <u>[3.1](https://www.sec.gov/Archives/edgar/data/1078075/000119312516715983/d257799dex32.htm)</u> | Composite conformed copy of Third Amended and Restated Certificate of Incorporation of NetScout (as amended) (filed as Exhibit 3.2 to NetScout's current report on Form 8-K, SEC File No. 000-26251, filed on September 21, 2016, and incorporated herein by reference). |
| <u>[3.2](https://www.sec.gov/Archives/edgar/data/1078075/000119312520139065/d876792dex31.htm)</u> | 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). |
| <u>[10.1](https://www.sec.gov/Archives/edgar/data/1078075/000162828025025982/ex108netscout-jeanbuatrans.htm)</u> | Transition and Separation Agreement, dated May 7, 2025 by and between the Company and Jean Bua (filed as Exhibit 10.8 to NetScout's Annual Report on Form 10-K, SEC File No. 000-26251, filed on May 15, 2025 and incorporated herein by reference). |
| <u>[10.2](https://www.sec.gov/Archives/edgar/data/1078075/000162828025025982/ex109netscout-michaelszaba.htm)</u> | Transition and Separation Agreement, dated May 7, 2025 by and between the Company and Michael Szabados (filed as Exhibit 10.9 to NetScout's Annual Report on Form 10-K, SEC File No. 000-26251, filed on May 15, 2025 and incorporated herein by reference). |
| <u>[10.3](https://www.sec.gov/Archives/edgar/data/1078075/000162828025025982/ex1010neoofferletterdraft_.htm)</u> | Offer Letter, dated May 7, 2025, by and between the Company and Anthony Piazza (filed as Exhibit 10.10 to NetScout's Annual Report on Form 10-K, SEC File No. 000-26251, filed on May 15, 2025 and incorporated herein by reference). |
| <u>[10.4](https://www.sec.gov/Archives/edgar/data/1078075/000162828025025982/ex1011neoofferletterdraft_.htm)</u> | Offer Letter, dated May 7, 2025, by and between the Company and Sanjay Munshi (filed as Exhibit 10.11 to NetScout's Annual Report on Form 10-K, SEC File No. 000-26251, filed on May 15, 2025 and incorporated herein by reference). |
| <u>[10.5](ntct-ex105_rsux20250630.htm)</u> | Form of Restricted Stock Unit Award Agreement with respect to the NetScout Systems, Inc. 2019 Equity Incentive Plan. |
| <u>[10.6](ntct-ex106_psux20250630.htm)</u> | Form of Performance-Based Restricted Stock Unit Award with respect to the NetScout Systems, Inc. 2019 Equity Incentive Plan. |
| <u>[31.1](ntct-ex311_20250630.htm)</u> | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| <u>[31.2](ntct-ex312_2025630.htm)</u> | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| <u>[32.1](ntct-ex321_202506301.htm)</u> | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| <u>[32.2](ntct-ex322_202506301.htm)</u> | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase document. |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase document. |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase document. |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase document. |
| 104 | Cover Page Interactive Date File (formatted as Inline XBRL and contained in Exhibits 101). |

---

---

| | |
|:---|:---|
| + | Filed herewith. |
| ++ | Exhibit has been furnished, is not deemed filed and is not to be incorporated by reference into any of the Company's filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, irrespective of any general incorporation language contained in any such filing. |

---

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**Table of Contents**

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
| | NETSCOUT SYSTEMS, INC. |
| Date: August 7, 2025 | /s/ Anil K. Singhal |
|  | Anil K. Singhal |
|  | President, Chief Executive Officer and Chairman |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Principal Executive Officer) |
| Date: August 7, 2025 | /s/ Anthony Piazza |
|  | Anthony Piazza |
|  | Executive Vice President and Chief Financial Officer |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Principal Financial Officer) |
| Date: August 7, 2025 | /s/ Eric Watt |
|  | Eric Watt |
|  | Chief Accounting Officer |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Principal Accounting Officer) |

---

## Exhibit 10.5

Exhibit 10.5

![image_0a.jpg](image_0a.jpg)

NETSCOUT SYSTEMS, INC.

<u>2019 EQUITY INCENTIVE PLAN</u>

<u>RESTRICTED STOCK UNIT AWARD AGREEMENT – TERMS AND CONDITIONS</u>

NetScout Systems, Inc. (the "<u>Company</u>") has granted to the recipient (as specified in the written notice provided by the Company to such recipient regarding such grant (the "<u>Notice</u>")) (the "<u>Recipient</u>"), and the Recipient has accepted from the Company (by electronic acceptance or authentication in a form authorized by the Company), an award for the number of restricted stock units (the "<u>RSUs</u>") specified in the Notice (the "<u>Award</u>"), which represents an equivalent number of shares of Common Stock subject to this Award (the "<u>Underlying Shares</u>"), on the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Grant under Plan</u>. This Award and this Restricted Stock Unit Award Agreement (which includes the Notice and any appendix, exhibit or addendum hereto) (the "<u>Agreement</u>"), is made pursuant to and is governed by the Company's 2019 Equity Incentive Plan, as amended and in effect from time to time (the "<u>Plan</u>"). Unless otherwise defined herein or required by the context, capitalized terms used herein shall have the same meanings as in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Vesting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Vesting Schedule</u>. Subject to the limitations contained herein, if the Recipient has maintained Continuous Service through each vesting date specified in the Notice, a portion of the RSUs shall vest on such date in such amounts as are set forth with respect to such date in the Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Termination of Continuous Service</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)If the Recipient's Continuous Service is terminated by the Company or an Affiliate or by the Recipient for any reason (other than as a result of the Recipient's death or Disability), whether voluntarily or involuntarily, no additional RSUs shall become vested RSUs under any circumstances with respect to the Recipient and any unvested RSUs shall be forfeited. Any determination under this Agreement as to Continuous Service status or other matters referred to above shall be made in good faith by the Board, whose decision shall be final and binding on all parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)If the Recipient's Continuous Service terminates as a result of the Recipient's death or Disability, this Award will become fully vested as of the date of such termination, to the extent that this Award is outstanding and unvested as of the date of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)For purposes hereof, Continuous Service shall not be considered as having terminated during any military leave, sick leave, or other leave of absence, in each case if approved in writing by the Company or an Affiliate and if such written approval, or applicable law, obligates the Company or an Affiliate (by contract or applicable law) to continue the Continuous Service of the Recipient after the approved period of absence (an "<u>Approved Leave of</u> <u>Absence</u>"). In the event of an Approved Leave of Absence, vesting of the RSUs shall be suspended (and all subsequent vesting dates shall be postponed by the length of the period of the Approved Leave of Absence) unless otherwise provided in the Company's or Affiliate's written approval of the leave of absence that specifically refers to this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)For purposes hereof, Continuous Service will be deemed terminated as of the date the Recipient is no longer actively providing services to the Company or any of its Affiliates (regardless of the reason for such termination and whether or not later found to be invalid or in breach of labor laws in the jurisdiction where the Recipient is employed or otherwise providing services or the terms of the Recipient's employment or service agreement, if any), and unless otherwise determined by the Company, the Recipient's right to vest in the Award, if any, will terminate as of such date and will not be extended by any notice period or any period of "garden leave" or similar period mandated under labor laws in the jurisdiction where the Recipient is employed or otherwise providing services or the terms of the Recipient's employment or service agreement, if any).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Notwithstanding anything in the Plan to the contrary, and unless otherwise determined by the Company, for purposes hereof, Continuous Service shall be deemed terminated if the Recipient's service to the Company or an Affiliate and/or the Recipient's residency is transferred to another country for any reason after the Award's grant date (such a transfer, a "***Country Transfer***"), and the Recipient's right to vest in the Award, if any, shall terminate immediately upon such Country Transfer. Notwithstanding the foregoing, (x) the termination of the Recipient's Continuous Service for purposes of the Award upon a Country Transfer will not necessarily be deemed a termination of the Recipient's service to the Company or an Affiliate for all other purposes, including, but not limited to, pursuant to any employment, severance or service contract by and between the Recipient and the Company or an Affiliate or for purposes of employee benefits and other similar employment-related entitlements, and (y) whether or not a termination of the Recipient's service to the Company or an Affiliate has occurred upon a Country Transfer for purposes of any other such arrangement will depend on the specific terms thereof as determined by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)Notwithstanding anything in the Plan to the contrary, for purposes hereof, Continuous Service shall include service provided by the Recipient to the Company or an Affiliate as a Consultant pursuant to a consulting arrangement between the Recipient and the Company or Affiliate, provided that (x) any such period of service as a Consultant immediately follows the Recipient's termination of employment with the Company or Affiliate or termination as a Director, in each case without any interruption, and (y) the terms of this Section 2(b)(vi) are provided for in a written consulting agreement executed by the Company or Affiliate that specifically refers to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Issuance of Underlying Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)With respect to any RSUs that become vested RSUs pursuant to Section 2, subject to Sections 5, 6 and 9, the Company shall issue to the Recipient, on or as soon as practicable following the applicable vesting date specified in the Notice, the number of Underlying Shares equal to the number of RSUs vesting on such vesting date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Notwithstanding the foregoing, <u>if</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)this Award is otherwise subject to Tax Obligations (as described in Section 6) on such vesting date,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)such vesting date occurs during either a regularly scheduled or special "blackout period" of the Company applicable to the Recipient or on any other date wherein Recipient is precluded from selling shares of Common Stock on an established stock exchange or stock market (any such blackout period or date, the "<u>Blackout Period</u>"), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)the Company elects, prior to such vesting date, not to satisfy such Tax Obligations by (x) withholding shares of Common Stock from the Underlying Shares otherwise issuable with respect to such vesting date,(y) permitting the Recipient to enter into a "same day sale" commitment with a broker-dealer pursuant to Section 6 (including, but not limited to, under a previously established 10b5-1 trading plan entered into in compliance with the Company's policies), and (z) permitting the Recipient to pay such Tax Obligations in cash (including by withholding from the Recipient's wages or any other cash compensation otherwise payable to the Recipient by the Company or an Affiliate),

------

<u>then</u> the delivery of the Underlying Shares otherwise issuable with respect to such vesting date will be deferred and such Underlying Shares will be issued to the Recipient as soon as practicable after the expiration of the Blackout Period. Notwithstanding the above, in no event may such Underlying Shares be issued to the Recipient later than the later of: (i) December 31st of the calendar year in which such vesting date occurs, or (ii) if such later issuance would not subject the Recipient to adverse tax consequences under Section 409A of the Code, by the fifteenth (15th) day of the third calendar month following such vesting date; provided that the Recipient acknowledges and agrees that if such Underlying Shares are issued to the Recipient pursuant to this Section 3 while a Blackout Period is still in effect, neither the Company nor the Recipient may sell any shares of Common Stock to satisfy any Tax Obligations, except in compliance with the Company's insider trading policies and requirements and applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The form of issuance of any Underlying Shares (e.g., a stock certificate or electronic entry evidencing such Underlying Shares) shall be determined by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Restrictions on Transfer</u>. The Recipient shall not sell, assign, transfer, pledge, encumber or dispose of any of the RSUs or corresponding Underlying Shares prior to the time that such Underlying Shares have been issued to the Recipient. Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, the Recipient may designate a third party who, in the event of the Recipient's death, shall thereafter be entitled to receive any distributions of Underlying Shares to which the Recipient is entitled at the time of his or her death pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Compliance with Law</u>. This Award, and the issuance of the Underlying Shares pursuant to this Award, must comply with all applicable laws and regulations governing this Award, and with the applicable regulations of any stock exchange on which the Common Stock is listed for trading at the time of issuance. The Company shall not issue the Underlying Shares to the Recipient if the Company determines that such issuance would not be in material compliance with all such applicable laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Withholding Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)This Award shall be subject to withholding of all applicable federal, state, local and foreign income, employment, payroll, fringe benefit, social insurance, payment on account and any other taxes resulting from the issuance or vesting of the RSUs or the delivery of the Underlying Shares (the "<u>Tax Obligations</u>"). The Recipient agrees to pay to the Company or an Affiliate, or otherwise make adequate provisions satisfactory to the Company or Affiliate for the payment of, any sums required to satisfy the Tax Obligations at the time such Tax Obligations arise. Specifically, the Company or an Affiliate may, in its sole discretion, satisfy all or any portion of such Tax Obligations by any of the following means or by a combination of such means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)withholding from the Recipient's wages or any other compensation otherwise payable to the Recipient by the Company or an Affiliate, provided that the Recipient elects such withholding by providing written notice to the Company or Affiliate at least ten business days before the applicable vesting date specified in the Notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)permitting the Recipient to pay such Tax Obligations in cash, provided that the Recipient elects to make such a payment by providing written notice to the Company or Affiliate at least ten business days before the applicable vesting date specified in the Notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)permitting the Recipient to enter into a "same day sale" commitment with a broker-dealer that is a member of the Financial Industry Regulatory Authority (a "<u>FINRA Dealer</u>") whereby the Recipient irrevocably elects to sell a portion of the Underlying Shares to satisfy such Tax Obligations and whereby the FINRA Dealer irrevocably commits to forward the proceeds necessary to satisfy such Tax Obligations directly to the Company or an Affiliate; or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)withholding shares of Common Stock from the Underlying Shares with a Fair Market Value (measured as of the date the Underlying Shares are issued to the Recipient) not in excess of the maximum amount of taxes that may be required to be withheld by law (or such other amount as may be permitted while still avoiding classification of this Award as a liability for financial accounting purposes);

*provided, however*, that, if the Recipient is an "officer" (within the meaning of Rule 16a-1(f) under the Exchange Act) of the Company or an Affiliate, such Tax Obligations will be satisfied pursuant to the method set forth in clause (iv) above, unless (x) the Compensation Committee of the Board provides otherwise before the applicable vesting date specified in the Notice or (y) the Recipient elects any of the methods set forth in clauses (i)-(iii) above in accordance with the terms set forth in such clauses, as applicable (including in the case of clauses (i) and (ii) above, the requirement to provide written notice to the Company or Affiliate at least ten business days before the applicable vesting date specified in the Notice).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If the Tax Obligations are satisfied by withholding in shares of Common Stock, for tax purposes, the Recipient is deemed to have been issued the full number of shares of Common Stock subject to the vested RSUs, notwithstanding that a number of the shares of Common Stock are withheld solely for the purpose of satisfying the Tax Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Company and/or an Affiliate may withhold or account for the Tax Obligations by considering applicable minimum withholding amounts or other applicable withholding rates, including applicable maximum withholding rates in the Recipient's jurisdiction(s). In the event of over-withholding, the Recipient may receive a refund of any over-withheld amount in cash (with no entitlement to the equivalent in shares of Common Stock), or, if not refunded, the Recipient may seek a refund from the applicable tax authorities. In the event of under-withholding, the Recipient may be required to pay additional amounts directly to the applicable tax authorities or to the Company and/or an Affiliate. The Recipient agrees to hold the Company and Affiliate harmless for any over-withholding or under-withholding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Company shall have no obligation to issue the Underlying Shares if the Recipient fails to comply with his or her obligations in connection with the Tax Obligations as described in this Section 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Recipient further agrees to take any further actions and execute any additional documents as may be necessary to effectuate the provisions of this Section 6 and the Recipient hereby grants the Company an irrevocable power of attorney to sign such additional documents on the Recipient's behalf if the Company is unable after reasonable efforts to obtain the Recipient's signature on such additional documents. Such power of attorney is coupled with an interest and is irrevocable by the Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Arbitration</u>. Any dispute, controversy, or claim arising out of, in connection with, or relating to the performance of this Agreement or its termination shall be settled by arbitration in Boston, Massachusetts, pursuant to the rules for commercial arbitration then obtaining of the American Arbitration Association, before a single arbitrator. The Company agrees to pay the costs of arbitration and each party shall be responsible for their own attorneys' fees. Any award shall be final, binding and conclusive upon the parties and a judgment rendered thereon may be entered in any court having jurisdiction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Provision of Documentation to Recipient</u>. By accepting this Award, the Recipient acknowledges receipt of a copy of this entire Agreement, a copy of the Plan, and a copy of the Plan's related prospectus.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<u>Section 409A of the Internal Revenue Code</u>. This Award is intended to avoid the potential adverse tax consequences to the Recipient of Section 409A of the Code, and the Board may make such modifications to this Agreement as it deems necessary or advisable to avoid such adverse tax consequences. However, if (i) this Award is not exempt from, and therefore deemed to be deferred compensation subject to, Section 409A of the Code, (ii) the Recipient is deemed by the Company at the time of his or her "separation from service" (as such term is defined in Treasury Regulations Section 1.409A-1(h) without regard to any alternative definition thereunder) to be a "specified employee" for purposes of Section 409A(a)(2)(B)(i) of the Code, and (iii) any of the payments set forth herein are issuable upon such separation from service, then to the extent delayed commencement of any portion of such payments is required to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code and the related adverse taxation under Section 409A of the Code, such payments will not be provided to the Recipient prior to the earliest of (a) the date that is six months and one day after the date of such separation from service, (b) the date of the Recipient's death, or (c) such earlier date as permitted under Section 409A of the Code without the imposition of adverse taxation. Upon the first business day following the expiration of such applicable Code Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this Section 9 will be paid in a lump sum to the Recipient, and any remaining payments due will be paid as otherwise provided herein. Each installment of RSUs that vests under this Award is a "separate payment" for purposes of Treasury Regulations Section 1.409A-2(b)(2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.<u>Rights as Stockholder</u>. The Recipient shall have no voting or any other rights as a stockholder of the Company with respect to any RSUs covered by this Agreement until the issuance of the Underlying Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.<u>Non-U.S. and Country-Specific Provisions</u>. If the Recipient works or resides in a country outside the United States, or is otherwise subject to the laws of a country other than the United States, the RSUs and any Underlying Shares acquired under the Plan shall be subject to the additional terms and conditions set forth in <u>Appendix A</u> to this Agreement and to any additional or different terms and conditions set forth in <u>Appendix B</u> for the Recipient's country. Moreover, if the Recipient relocates to a country outside the United States, the terms and conditions set forth in <u>Appendices A and B</u> will apply to the Recipient, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons. <u>Appendices A and B</u> constitute part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.<u>Imposition of Other Requirements</u>. The Company reserves the right to impose other requirements on the Recipient's participation in the Plan, on the RSUs and on any Underlying Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require the Recipient to sign or otherwise accept any additional agreements or undertakings that may be necessary to accomplish the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.<u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Notices; Electronic Delivery and Participation</u>. All notices hereunder shall be given in writing (including electronically) and shall be deemed given upon receipt or, in the case of notices delivered by mail, when sent by certified or registered mail, postage prepaid, return receipt requested, if to the Recipient, to the address shown on the records of the Company, and if to the Company, to the Company's principal executive offices, attention of the Corporate Secretary. The Company, in its sole discretion, may decide to deliver any documents related to this Award or participation in the Plan by electronic means or to request the Recipient's consent to participate in the Plan by electronic means. By accepting this Award, the Recipient consents to receive such documents by electronic delivery and to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Entire Agreement; Modification</u>. This Agreement, together with the Plan, constitutes the entire agreement between the parties relative to the subject matter hereof, and supersedes all proposals, written or oral, and all other communications between the parties relating to the subject matter of this Agreement. This Agreement may be modified, amended or rescinded only by a written agreement executed by both parties to this Agreement; provided, however, that notwithstanding the foregoing, this Agreement may be modified, amended or rescinded by the Company without the Recipient's written consent if such modification, amendment or rescission (i) is in writing and executed by a duly authorized representative of the Company and (ii) complies with Section 2(b)(viii) of the Plan. This Award is subject to all the provisions of the Plan, the provisions of which are hereby made a part of this Award, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan. Except as otherwise expressly provided in this Agreement, in the event of a conflict between the terms of this Agreement and the Plan, the terms of the Plan shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Capitalization Adjustments</u>. Any additional RSUs and Underlying Shares, cash or other property that become subject to this Award pursuant to any Capitalization Adjustment will be subject, in a manner determined by the Board, to the same forfeiture restrictions, restrictions on transferability, and time and manner of issuance as applicable to the other RSUs subject to this Award to which they relate. All fractional RSUs or Underlying Shares resulting from any Capitalization Adjustment shall be rounded down to the nearest whole unit or share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Severability</u>. The invalidity, illegality or unenforceability of any provision of this Agreement shall in no way affect the validity, legality or enforceability of any other provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Successors and Assigns</u>. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, subject to the limitations set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Governing Law</u>. This Agreement shall be governed by and interpreted in accordance with the laws of Delaware without giving effect to the principles of conflicts of laws thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>No Obligation to Continue Service</u>. Neither the Plan nor this Agreement (nor any provision in the Plan or this Agreement) (i) is an employment or service contract, or (ii) will be deemed to create any obligation on the Recipient's part to continue in the service of the Company or an Affiliate, or on the part of the Company or an Affiliate to continue such service. In addition, nothing in the terms of this Award will obligate the Company or an Affiliate, their respective stockholders, boards of directors, Officers or Employees to continue any relationship that the Recipient might have as an Employee, Director or Consultant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)<u>Clawback/Recovery</u>. Notwithstanding anything to the contrary in this Agreement, but subject to applicable law, this Award will be subject to recoupment, repayment and/or forfeiture in accordance with any clawback policy that the Company is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company's securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable law, and any other clawback policy that the Company otherwise adopts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>No Advice Regarding Grant; Tax Consequences</u>. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Recipient's participation in the Plan, or his or her acquisition or sale of the Underlying Shares. The Recipient should consult with his or her own tax, legal and financial advisors regarding participation in the Plan before taking any action related to the Plan. The Company has no duty or obligation to minimize the tax consequences to the Recipient of this Award and will not be liable to the Recipient for any adverse tax consequences to the Recipient arising in connection with this Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)<u>Dividends</u>. The Recipient will receive no benefit or adjustment to this Award with respect to any cash dividend, stock dividend or other distribution, except as provided in the Plan with respect to a Capitalization Adjustment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)<u>Unsecured Obligation</u>. This Award is unfunded, and as a holder of vested RSUs, the Recipient will be considered an unsecured creditor of the Company with respect to the Company's obligation, if any, to issue shares of Common Stock or other property pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)<u>Effect on Other Employee Benefit Plans</u>. The value of this Award will not be included as compensation, earnings, salaries, or other similar terms used when calculating the Recipient's benefits under any employee benefit plan sponsored by the Company or an Affiliate, except as such plan otherwise expressly provides. The Company expressly reserves its rights to amend, modify, or terminate any such plan in accordance with the terms of such plan.

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**APPENDIX A**

NETSCOUT SYSTEMS, INC. <u>2019 EQUITY INCENTIVE PLAN</u>

<u>RESTRICTED STOCK UNIT AWARD AGREEMENT</u>

ADDITIONAL PROVISIONS <br>FOR RECIPIENTS OUTSIDE THE UNITED STATES

Capitalized terms used but not defined in this <u>Appendix A</u> shall have the same meanings as in the Agreement and/or the Plan, as applicable.

This <u>Appendix A</u> includes additional terms and conditions that govern the RSUs and any Underlying Shares acquired under the Plan if the Recipient works or resides in a country outside the United States, or is otherwise subject to the laws of a country other than the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Nature of Grant</u>. By accepting this Award, the Recipient acknowledges, understands and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the Plan is established voluntarily by the Company, it is discretionary in nature, and it may be modified, amended, suspended or terminated by the Company at any time, provided that such modification, amendment, suspension or termination is in accordance with the terms of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the grant of this Award is exceptional, voluntary and occasional and does not create any contractual or other right to receive future grants of any RSUs, any benefits in lieu of RSUs or any other awards under the Plan, even if any such RSUs, benefits or other awards have been granted in the past;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)all decisions with respect to any future RSUs or the grant of any other awards under the Plan will be at the sole discretion of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)the Recipient is voluntarily participating in the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)the RSUs and the Underlying Shares, and the income from and value of same, are not intended to replace any pension rights or compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)unless otherwise agreed with the Company, the RSUs and the Underlying Shares, and the income from and value of same, are not granted as consideration for, or in connection with, the service the Recipient may provide as a director of any Affiliate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)the RSUs and the Underlying Shares, and the income from and value of same, are not part of normal or expected compensation for any reason, including without limitation, calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, indemnification, pension or retirement or welfare benefits or similar payments, benefits or rights of any kind, and in no event should be considered as compensation for or relating in any way to, past services for the Company and/or any Affiliate that employs the Recipient (the "<u>Employer</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)the future value of the Underlying Shares is unknown, indeterminable and cannot be predicted with certainty;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)no claim or entitlement to compensation or damages shall arise from the forfeiture of the RSUs resulting from the termination of Recipient's Continuous Service (for any reason whatsoever, whether or not later found to be invalid or in breach of employment or other laws in the jurisdiction where the Recipient is employed or otherwise rendering services, or the terms of his or her employment or service agreement, if any); and neither the Company nor any Affiliate shall be liable for any foreign exchange rate fluctuation between the Recipient's local currency and the U.S. Dollar that may affect the value of the RSUs or any amounts due to the Recipient pursuant to the settlement of the RSUs or subsequent sale of Underlying Shares acquired upon settlement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.***<u>Data Privacy</u>. If the Recipient would like to participate in the Plan, the Recipient will need to review the information provided in this Data Privacy section and, where applicable, declare the Recipient's consent to the processing and/or transfer of personal data as described below.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)***<u>EEA+ Controller and Representative</u>. If the Recipient is based in the European Union ("EU"), the European Economic Area, Switzerland or the United Kingdom (collectively "EEA+"), the Recipient should note that the Company, with its registered address at 310 Littleton Road, Westford, MA 01886, U.S.A., is the controller responsible for the processing of the Recipient's personal data in connection with the Agreement and the Plan. The Company's representative in the EU is Felix Wittern, Felix.Wittern@fieldfisher.com, Fieldfisher (Germany) LLP, Am Sandtorkai 68, 20457 Hamburg, Germany.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)***<u>Data Collection and Usage</u>. The Company collects, uses and otherwise processes certain personal data about the Recipient, including, but not limited to, the Recipient's name, home address and telephone number, email address, date of birth, social insurance number, passport or other identification number (e.g., resident registration number), salary, nationality, job title, any shares of stock or directorships held in the Company, details of all RSUs or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in the Recipient's favor, which the Company receives from the Recipient, the Employer or otherwise in connection with this Agreement or the Plan ("Data"), for the purposes of implementing, administering and managing the Plan and allocating shares of Common Stock pursuant to the Plan.***

***If the Recipient is based in the EEA+, the legal basis, where required, for the processing of Data by the Company is the necessity of the data processing for the Company to (i) perform its contractual obligations under this Agreement, (ii) comply with legal obligations established in the EEA+, or (iii) pursue the legitimate interest of complying with legal obligations established outside of the EEA+.***

***If the Recipient is based outside of the EEA+, the legal basis, where required, for the processing of Data by the Company is the Recipient consent, as further described below.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)***<u>Stock Plan Administration Service Providers</u>. The Company transfers Data to Merrill Lynch, an independent service provider, which is assisting the Company with the implementation, administration and management of the Plan ("Merrill Lynch"). In the future, the Company may select a different service provider and share Data with such other provider serving in a similar manner. Merrill Lynch will open an account for the Recipient to receive and trade shares of Common Stock acquired under the Plan. The Recipient may be asked to agree on separate terms and data processing practices with Merrill Lynch with such agreement being a condition to the ability to participate in the Plan.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)***<u>International Data Transfers</u>. In the event the Recipient resides, works or is otherwise located outside of the U.S., Data will be transferred from the Recipient's country to the U.S., where the Company and its service providers are based. The Recipient understands and acknowledges that the U.S. is not subject to an unlimited adequacy finding by the European Commission and might not provide a level of protection of personal data equivalent to the level of protection in the Recipient's country. As a result, in the absence of the implementation of appropriate safeguards such as the Standard Contractual Clauses adopted by the EU Commission, the processing of personal data might not be subject to substantive data processing principles or supervision by data protection authorities. In addition, data subjects might have no or less enforceable rights regarding the processing of their personal data.***

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***If the Recipient is based in the EEA+, Data will be transferred from the EEA+ to the Company based on the Standard Contractual Clauses adopted by the EU Commission. The onward transfer of Data from the Company to Merrill Lynch or, as the case may be, a different service provider of the Company, is conducted without appropriate safeguards based solely on the Recipient's consent, as further described below.***

***If the Recipient is based outside of the EEA+, the Company's legal basis, where required, for the transfer of Data from the Recipient's country to the Company and from the Company onward to Merrill Lynch or, as the case may be, a different service provider of the Company, is the Recipient's consent, as further described below.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)***<u>Data Retention</u>. The Company will hold and use the Data only as long as is necessary to implement, administer and manage the Recipient's participation in the Plan, or as required to comply with legal or regulatory obligations, including under tax and security laws.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)***<u>Data Subject Rights</u>. The Recipient may have a number of rights under data privacy laws in his or her jurisdiction. Depending on where the Recipient is based, such rights may include the right to (i) request access or copies of Data the Company processes, (ii) the rectification or amendment of incorrect or incomplete Data, (iii) the deletion of Data, (iv) request restrictions on the processing of Data, (v) object to the processing of Data for legitimate interests, (vi) the portability of Data, (vi) lodge complaints with competent authorities in the Recipient's jurisdiction, and/or to (viii) receive a list with the names and addresses of any potential recipients of Data. To receive additional information regarding these rights or to exercise these rights, the Recipient can contact dataprivacy@netscout.com.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)***<u>Necessary Disclosure of Data</u>. The Recipient understands that providing the Company with Data is necessary for the performance of the Agreement and that the Recipient refusal to provide Data would make it impossible for the Company to perform its contractual obligations and may affect the Recipient's ability to participate in the Plan.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)***<u>Voluntariness and Consequences of Consent Denial or Withdrawal</u>. Participation in the Plan is voluntary and the Recipient is providing any consents referred to herein on a purely voluntary basis. The Recipient understands that he or she may withdraw any such consent at any time with future effect for any or no reason. If the Recipient does not consent, or if the Recipient later seeks to withdraw the Recipient's consent, the Recipient's salary from or employment and career with the Employer will not be affected; the only consequence of refusing or withdrawing the Recipient's consent is that the Company would not be able to grant the RSUs or other awards to the Recipient or administer or maintain the RSUs. For more information on the consequences of refusal to consent or withdrawal of consent, the Recipient should contact dataprivacy@netscout.com.***

![image_1a.jpg](image_1a.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Arbitration</u>. The following provision replaces Section 7 of the Agreement if the Recipient works or resides in a country outside the United States, or is otherwise subject to the laws of a country other than the United States:

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Any dispute, controversy or claim arising out of, in connection with, or relating to the performance of this Agreement or its termination shall be settled by arbitration, pursuant to the rules of the International Centre for Dispute Resolution (ICDR). The arbitration shall be conducted by a single arbitrator chosen by the parties or, if the parties cannot agree upon a single arbitrator within thirty (30) days, then by a single arbitrator appointed by the ICDR. The arbitration shall take place in Suffolk County, Massachusetts, U.S.A. and shall be conducted in the English language. The Company agrees to pay the costs of the arbitration and each party shall be responsible for their own costs, fees, and expenses (including of its own counsel, experts and witnesses) in preparing and presenting its case. Any award shall be final, binding and conclusive upon the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Language</u>. The Recipient acknowledges that he or she is sufficiently proficient in the English language or has consulted with an advisor who is sufficiently proficient in English, so as to allow the Recipient to understand the terms and conditions of this Agreement. If the Recipient receives this Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control, unless otherwise required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Insider Trading Restrictions/Market Abuse Laws</u>. The Recipient understands that he or she may be subject to insider trading restrictions and/or market abuse laws in applicable jurisdictions, including but not limited to the United States, the Recipient's country, the Employer's country, and the country in which the shares of Common Stock may be listed, which may affect the Recipient's ability, directly or indirectly, to purchase or sell or attempt to sell or otherwise dispose of shares of Common Stock, rights to shares of Common Stock (e.g., the RSUs), or rights linked to the value of shares of Common Stock during such times as the Recipient is considered to have "inside information" regarding the Company (as defined by the laws in the applicable jurisdiction(s)). Local insider trading laws and regulations prohibit the cancellation or amendment of orders the Recipient placed before possessing the inside information. Furthermore, the Recipient understands that he or she may be prohibited from (i) disclosing the inside information to any third party, including fellow employees (other than on a "need to know" basis) and (ii) "tipping" third parties by sharing with them Company inside information, or otherwise causing third parties to buy or sell Company securities. Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy. It is the Recipient's responsibility to comply with any applicable restrictions and the Recipient should consult with his or her personal legal advisor on this matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Foreign Asset/Account, Exchange Control and Tax Reporting</u>. The Recipient acknowledges that, depending on his or her country, the Recipient may be subject to foreign asset and/or account reporting requirements and exchange controls which affect his or her ability to acquire or hold shares under the Plan or cash received from participating in the Plan (including from any dividends received or sale proceeds arising from the sale of shares) in a brokerage account outside of the Recipient's country. The Recipient may also be required to repatriate sale proceeds or funds received as a result of his or her participation in the Plan to his or her country through a designated bank and/or broker within a certain time after receipt. In addition, the Recipient may be subject to tax payment and/or reporting obligations in connection with any income realized under the Plan and/or from the sale of the Underlying Shares. The Recipient acknowledges that he or she is responsible for ensuring compliance with any such requirements and is advised to consult with his or her personal legal advisors, as applicable, to ensure compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Waiver</u>. The Recipient acknowledges that a waiver by the Company of breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of the Agreement, or of any subsequent breach by the Recipient or any other recipient.

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**APPENDIX B**

NETSCOUT SYSTEMS, INC. <u>2019 EQUITY INCENTIVE PLAN</u>

<u>RESTRICTED STOCK UNIT AWARD AGREEMENT</u>

COUNTRY SPECIFIC PROVISIONS FOR RECIPIENTS OUTSIDE THE UNITED STATES

Capitalized terms used but not defined in this Appendix B shall have the same meanings as in the Agreement and/or the Plan, as applicable.

***Terms and Conditions***

This Appendix B includes special terms and conditions that govern the RSUs and any Underlying Shares acquired under the Plan if the Recipient works or resides in any of the countries listed below, or is otherwise subject to the laws of any of the countries listed below. If the Recipient is a citizen (or is considered as such for local law purposes) of a country other than the country in which he or she is currently working or residing, or if he or she relocates to another country after this Award is granted, the Recipient acknowledges and agrees that the Company will, in its discretion, determine the extent to which the terms and conditions contained herein will be applicable to the Recipient.

***Notifications***

This Appendix B also includes information regarding securities and certain other issues of which the Recipient should be aware with respect to the Recipient's participation in the Plan. The information is based on the securities and other laws in effect in the respective countries as of April 2024. Such laws are often complex and change frequently. As a result, the Recipient should not rely on the information in this Appendix B as the only source of information relating to the consequences of the Recipient's participation in the Plan because such information may be outdated when the RSUs are vest and/or when the Recipient sells any Underlying Shares acquired under the Plan.

In addition, the information contained herein is general in nature and may not apply to the Recipient's particular situation. As a result, the Company is not in a position to assure the Recipient of any particular result. Therefore, the Recipient understands he or she should seek appropriate professional advice as to how the relevant laws in the Recipient's country may apply to his or her particular situation.

Finally, if the Recipient is a citizen or resident of a country other than that in which the Recipient currently is working and/or residing (or is considered as such for local law purposes), or transfers employment and/or residency to a different country after the grant date, the information contained herein may not apply to the Recipient in the same manner.

***There are no special or additional terms and conditions or notifications for Austria, Belgium, Germany, India, Ireland, Japan, (South) Korea, the Netherlands, Norway, Poland, Qatar, or Thailand.***

**<u>ARGENTINA</u>**

&nbsp;&nbsp;&nbsp;&nbsp;***Notifications***

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<u>Securities Law Information</u>. Neither the Award or the Underlying Shares are publicly offered or listed on any stock exchange in Argentina and, as a result, have not been and will not be registered with the Argentine Securities Commission (*Comisión Nactional de Valores*). This offer is private and not subject to any filing or disclosure requirements in Argentina. Neither this nor any other offering material related to the Award or the Underlying Shares may be utilized in connection with any general offering to the public in Argentina. Argentine residents who acquire RSUs under the Plan do so according to the terms of a private offering made from outside Argentina.

**<u>AUSTRALIA</u>**

***Notifications***

<u>Nature of Plan and RSUs</u>. The Plan is a plan to which Subdivision 83A-C of the Income Tax Assessment Act 1997 (Cth) (the "<u>Act</u>") applies (subject to the conditions of the Act).

<u>Securities Law Information</u>. This offer is being made under Division 1A, Part 7.12 of the Corporations Act 2001 (*Cth*).

**<u>BRAZIL</u>**

***Terms and Conditions***

<u>Compliance with Law</u>. By accepting the RSUs, the Recipient acknowledges that he or she will comply with applicable Brazilian laws and pay any and all applicable Tax Obligations associated with the vesting and settlement of the RSUs, the receipt of any dividend equivalents or dividends and the sale of shares of Common Stock acquired under the Plan.

<u>Nature of Grant</u>. The following provision supplements Section 1 of <u>Appendix A</u>:

By accepting the RSUs, the Recipient acknowledges that (i) he or she is making an investment decision, (ii) the Underlying Shares will be issued to the Recipient only if the vesting conditions are met, and (iii) the value of the Underlying Shares is not fixed and may increase or decrease without compensation to the Recipient.

**<u>CANADA</u>**

***Terms and Conditions***

<u>Issuance of Underlying Shares</u>. As provided in Section 3 of the Agreement, with respect to any RSUs that become vested RSUs under the Agreement, the Company shall issue to the Recipient a number of Underlying Shares, as described in Section 3 of the Agreement. For the avoidance of doubt, vested RSUs will not be settled in cash.

<u>Termination of Continuous Service</u>. The following provision replaces Section 2(b)(iv) of the Agreement:

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For purposes hereof, Continuous Service will be deemed terminated as of the earliest of (i) the date the Recipient's employment or service relationship with the Company or its Affiliates is terminated; (ii) the date the Recipient receives notice of termination of employment or service with the Company or its Affiliates, regardless of any notice period or period of pay in lieu of such notice required under applicable employment laws in the jurisdiction where the Recipient is employed or providing services or the terms of the Recipient's employment or service agreement, if any; and (iii) the date the Recipient is no longer actively working for the Company or its Affiliates, in each case, regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the Recipient is employed or otherwise providing services or the terms of the Recipient's employment or service agreement, if any. If, notwithstanding the foregoing, applicable employment legislation explicitly requires continued vesting during a statutory notice period, the Recipient's right to vest in the RSUs, if any, will terminate effective as of the last day of the minimum statutory notice period, but the Recipient will not earn or be entitled to pro-rated vesting if the vesting date falls after the end of the Recipient's statutory notice period, nor will the Recipient be entitled to any compensation for lost vesting.

*The following provision applies if the Recipient resides in Quebec:*

<u>Data Privacy</u>. The following provision supplements Section 2 of <u>Appendix A</u>:

The Recipient hereby authorizes the Company and the Company's representatives to discuss and obtain all relevant information from all personnel, professional or non-professional, involved in the administration of the Plan. The Recipient further authorizes the Company, the Employer and/or any Affiliate to disclose and discuss such information with their advisors. The Recipient also authorizes the Company, the Employer and/or any Affiliate to record such information and to keep such information in the Recipient's employment file. If the Recipient is resident in Quebec, the Recipient acknowledges and agrees that his or her personal information, including sensitive personal information, may be transferred or disclosed outside of the province of Quebec, including to the United States. The Recipient acknowledges and authorizes the Company and other parties involved in the administration of the Plan to use technology for profiling purposes and to make automated decisions that may have an impact on the Recipient or the administration of the Plan.

***Notifications***

<u>Securities Law Information</u>. The Recipient is permitted to sell the Underlying Shares acquired under the Plan through the designated broker appointed under the Plan, provided the sale of shares takes place outside Canada through the facilities of a stock exchange on which the Common Stock is listed.

**<u>CHINA</u>**

***Terms and Conditions***

<u>Issuance of Underlying Shares</u>. The following provision replaces Section 3 of the Agreement:

With respect to any RSUs that become vested RSUs pursuant to Section 2 of the Agreement, subject to Sections 5 and 6 of the Agreement, the Recipient shall receive, on or as soon as practicable following the applicable vesting date specified in the Notice, a cash payment in an amount equal in value to one share of Common Stock (using the closing price per share on the Nasdaq Global Select Market (or other principal exchange on which the Common Stock then trades) on the applicable vesting date (or the prior trading day if the vesting date is not a trading day). Any references to the issuance of shares of Common Stock in any documents related to the RSUs shall be interpreted accordingly.

**<u>COLOMBIA</u>**

***Terms and Conditions***

<u>Nature of Grant</u>. The following provision supplements Section 1 of <u>Appendix A</u>:

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By accepting the RSUs, the Recipient acknowledges that pursuant to Article 128 of the Colombian Labor Code, the Plan and related benefits do not constitute a component of "salary" for any legal purpose. Therefore, the RSUs and related benefits will not be included and/or considered for purposes of calculating any and all labor benefits, including but not limited to legal/fringe benefits, vacations, indemnities, payroll taxes, social insurance contributions and/or any other labor-related amount which may be payable.

***Notifications***

<u>Securities Law Information</u>. The Underlying Shares are not and will not be registered in the Colombian registry of publicly traded securities (*Registro Nacional de Valores y Emisores*) and, therefore the Underlying Shares may not be offered to the public in Colombia. Nothing in the Plan, the Agreement (including this <u>Appendix B</u>) or any other document evidencing the grant of the RSUs shall be construed as the making of a public offer of securities in Colombia. Any offer of shares of Common Stock to employees will not be considered a public offer provided that it meets the conditions set forth in Article 6.1.1.1.1 in Decree 2555, 2010.

**<u>CZECH REPUBLIC</u>**

***Terms and Conditions***

<u>Issuance of Underlying Shares</u>. The following provision replaces Section 3 of the Agreement:

With respect to any RSUs that become vested RSUs pursuant to Section 2 of the Agreement, subject to Sections 5 and 6 of the Agreement, the Recipient shall receive, on or as soon as practicable following the applicable vesting date specified in the Notice, a cash payment in an amount equal in value to one share of Common Stock (using the closing price per share on the Nasdaq Global Select Market (or other principal exchange on which the Common Stock then trades) on the applicable vesting date (or the prior trading day if the vesting date is not a trading day). Any references to the issuance of shares of Common Stock in any documents related to the RSUs shall be interpreted accordingly.

**<u>FRANCE</u>**

***Terms and Conditions***

<u>Non-Tax-Qualified Award</u>. The RSUs are not eligible for the specific tax and social regime provided by Sections L. 225-197-1 to L. 225-197-5 and Sections L. 22-10-59 to L. 22-10-60 of the French Commercial Code, as amended.

<u>Language Consent</u>. By accepting the RSUs, the Recipient confirms having read and fully understood the Plan and the Agreement, which were provided in the English language. The Recipient accepts the terms of those documents accordingly.

*<u>Consentement Relatif à la Langue Utilisée</u>. En acceptant les droits sur actions assujettis à restrictions (« restricted stock units » ou « RSUs »), le Beneficiare confirme avoir lu et parfaitement compris le Plan et le Contract d'Attribution qui ont été communiqués en langue anglaise. Le Beneficiare accepte les termes de ces documents en connaissance de cause.*

**<u>HONG KONG</u>**

***Terms and Conditions***

<u>Issuance of Underlying Shares</u>. The Underlying Shares received under the Plan are accepted as a personal investment. In the event the RSUs vest and Underlying Shares are issued to the Recipient within six months of the grant of RSUs, the Recipient agrees that he or she will not dispose of the Underlying Shares acquired prior to the six-month anniversary of the grant of RSUs.

------

***Notifications***

<u>Securities Law Information</u>. *The RSUs and Underlying Shares issued upon vesting of the RSUs do not constitute a public offering of securities under Hong Kong law and are available only to employees of the Company or an Affiliate. The Agreement, including <u>Appendix A</u> and <u>Appendix B</u>, the Plan, and other incidental communication materials have not been prepared in accordance with and are not intended to constitute a "prospectus" for a public offering of securities under the applicable securities legislation in Hong Kong, nor have the documents been reviewed by any regulatory authority in Hong Kong. The Agreement, including this <u>Appendix A</u> and <u>Appendix B</u>, the Plan and other incidental communication materials are intended only for personal use of each eligible employee and not for distribution to any other person. The Recipient should exercise caution in relation to the RSUs. If the Recipient has questions about any of the contents of the Agreement, including <u>Appendix A</u> and this <u>Appendix B</u>, or the Plan, he or she should contact a legal or other professional advisor.*

**<u>INDONESIA</u>**

***Terms and Conditions***

<u>Language Consent and Notification</u>. By accepting the RSUs, the Recipient (i) confirms having read and understood the documents relating to the grant (*i.e.*, the Plan and the Agreement) which were provided in the English language,

&nbsp;&nbsp;&nbsp;&nbsp;(ii)accepts the terms of those documents accordingly, and (iii) agrees not to challenge the validity of this document based on Law No. 24 of 2009 on National Flag, Language, Coat of Arms and National Anthem or the implementing Presidential Regulation (when issued).

*<u>Persetujuan dan Pemberitahuan Bahasa</u>. Dengan menerima pemberian Unit Saham Terbatas ini, Peserta (i) memberikan konfirmasi bahwa dirinya telah membaca dan memahami dokumen-dokumen berkaitan dengan pemberian ini (yaitu, Perjanjian Penghargaan dan Program) yang disediakan dalam Bahasa Inggris, (ii) menerima persyaratan di dalam dokumen-dokumen tersebut, dan (iii) setuju untuk tidak mengajukan keberatan atas keberlakuan dari dokumen ini berdasarkan Undang-Undang No. 24 Tahun 2009 tentang Bendera, Bahasa dan Lambang Negara serta Lagu Kebangsaan ataupun Peraturan Presiden sebagai pelaksanaannya (ketika diterbitkan).*

**<u>ITALY</u>**

***Terms and Conditions***

<u>Grant Terms Acknowledgement</u>. By accepting the RSUs, the Recipient acknowledges having received and reviewed the Plan and the Agreement, including <u>Appendix A</u> and this <u>Appendix B</u>, in their entirety and fully understands and accepts all provisions of the Plan and the Agreement, including <u>Appendix A</u> and this <u>Appendix B</u>.

The Recipient further acknowledges that he or she has specifically read and expressly approves the following provisions of the Agreement: Section 2 ("Vesting"), Section 6 ("Withholding Taxes"), Section 12 ("Imposition of Other Requirements"), Section 13(f) ("Governing Law"), and <u>Appendix A</u>, Section 3 ("Arbitration").

**<u>MALAYSIA</u>**

***Terms and Conditions***

<u>Data Privacy</u>. The following provision supplements Section 2 of <u>Appendix A</u>:

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| | |
|:---|:---|
| The Recipient hereby explicitly, voluntarily and unambiguously consents to the collection, use and transfer, in electronic or other form, of the Recipient's personal data as described in this Agreement and any other Plan materials by and among, as applicable, the Employer, the Company and any Affiliate for the exclusive purpose of implementing, administering and managing the Recipient's participation in the Plan. | *Penerima dengan ini secara eksplicit, secara sukarela dan tanpa sebarang keraguan mengizinkan pengumpulan, penggunaan dan pemindahan, dalam bentuk elektronik atau lain-lain, data peribadi Penerima seperti yang dinyatakan dalam Perjanjian ini dan apa-apa bahan Pelan, oleh dan di antara, sebagaimana yang berkenaan, Majikan, Syarikat, dan mana-mana Syarikat Bergabung bagi tujuan ekslusif untuk melaksanakan, mentadbir, dan menguruskan penyertaan Penerima dalam Pelan tersebut.* |
| The Recipient understands that the Company and the Employer may hold certain personal information about the Recipient, including, but not limited to, the Recipient's name, home address, email address and telephone number, date of birth, social insurance number, passport or other identification number, salary, | *Penerima memahami bahawa Syarikat dan Majikan mungkin memegang maklumat peribadi tertentu tentang Penerima, termasuk, tetapi tidak terhad kepada, nama, alamat rumah, alamat emel dan nombor telefon, tarikh*<br>*lahir, insurans sosial, nombor pasport atau nombor pengenalan lain, gaji, kewarganegaraan, jawatan* |

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| | |
|:---|:---|
| nationality, job title, any shares of stock or directorships held in the Company, details of any entitlement to shares awarded, cancelled, exercised, vested, unvested or outstanding in the Recipient's favor for the purpose of implementing, administering and managing the Plan ("<u>Data</u>"). | *Penerima, apa-apa syer dalam saham atau jawatan pengarah yang dipegang dalam Syarikat, butir-butir apa- apa hak untuk syer yang dianugerahkan, dibatalkan, dilaksanakan, terletak hak, tidak diletak hak ataupun tertunggak bagi faedah Penerima untuk melaksanakan, mentadbir dan menguruskan Pelan tersebut ("<u>Data</u>").* |

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| | |
|:---|:---|
| &nbsp;&nbsp;the Recipient understands that the Data will be transferred to Merrill Lynch or such other stock plan providers as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan. The Recipient understands that those receiving the Data may be located in the United States or elsewhere, and that the applicable country (e.g., the United States) may have different data privacy laws and protections than the Recipient's country. The Recipient understands that he or she may request a list with the names and addresses of any potential recipients of Data by contacting his or her human resources representative. The Recipient authorizes the Company, and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer Data, in electronic or other form, for the sole purpose of implementing, administering and managing the Recipient's participation in the Plan. The Recipient understands that Data will be held only as long as is necessary to implement, administer and manage his or her participation in the Plan. The Recipient understands that he or she may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case, without cost, by contacting in writing his or her local human resources representative, whose contact details are Cathy.Plunkett@netscout.com. | &nbsp;&nbsp;*Penerima memahami bahawa Data akan dipindah kepada Merrill Lynch atau pembekal-pembekal pelan saham yang lain sebagaimana yang dipilih oleh Syarikat pada masa depan, yang membantu Syarikat dalam pelaksanaan, pentadbiran dan pengurusan Pelan tersebut. Penerima memahami bahawa mereka yang menerima Data mungkin berada di Amerika Syarikat atau di tempat lain, dan negara yang berkenaan (contohnya, Amerika Syarikat) mungkin mempunyai undang-undang privasi data dan perlindungan yang berbeza daripada negara Penerima. Penerima memahami bahawa dia boleh meminta senarai nama dan alamat mana-mana pihak yang mungkin menerima Data dengan menghubungi wakil sumber manusianya. Penerima memberi kuasa kepada Syarikat, dan mana-mana penerima lain yang mungkin membantu Syarikat (masa sekarang atau pada masa depan) untuk melaksanakan, mentadbir dan menguruskan Pelan tersebut untuk menerima, memiliki, menggunakan, mengekalkan dan memindahkan Data, dalam bentuk elektronik atau lain-lain, semata-mata dengan tujuan untuk melaksanakan, mentadbir dan menguruskan penyertaan Penerima dalam Pelan tersebut. Penerima memahami bahawa Data akan dipegang hanya untuk tempoh yang diperlukan untuk melaksanakan, mentadbir dan menguruskan penyertaannya dalam Pelan tersebut. Penerima memahami bahawa dia boleh, pada bila-bila masa, melihat data, meminta maklumat tambahan mengenai penyimpanan dan pemprosesan Data, meminta apa-apa pindaan dilaksanakan ke atas Data atau menolak atau menarik balik persetujuan dalam ini, dalam mana-mana kes, tanpa kos, dengan menghubungi secara bertulis wakil sumber manusianya, di mana butir-butir hubungannya adalah Cathy.Plunkett@netscout.com.* |
| Further, the Recipient understands that he or she is<br>providing the consents herein on a purely voluntary basis. If the Recipient does not consent, later seeks to revoke the consent, the Recipient's employment status or service with the Employer will not be affected; the only consequence of refusing or withdrawing the consents herein is that the Company would not be able to grant this Award or any other awards under the Plan, or administer or maintain this Award or any other such awards. Therefore, the Recipient understands that refusing or withdrawing his or her consent may affect the Recipient's ability to participate in the Plan. For more information on the consequences of the refusal to consent or withdrawal of consent, the Recipient understands that he or she may contact his or her human resources representative. | *Selanjutnya, Penerima memahami bahawa dia memberikan persetujuan di sini secara sukarela. Jika Penerima tidak bersetuju, kemudian membatalkan persetujuannya, status pekerjaan atau perkhidmatan Penerima dengan Majikan tidak akan terjejas; satunya akibat jika dia tidak bersetuju atau menarik balik persetujuannya adalah bahawa Syarikat tidak akan dapat memberikan Anugerah ini atau mana-mana anugerah lain di bawah Pelan ini atau mentadbir atau mengekalkan Anugerah ini atau mana-mana anugerah lain. Oleh itu, Penerima memahami bahawa keengganan atau penarikan balik persetujuannya boleh menjejaskan keupayaan Penerima untuk mengambil bahagian dalam Pelan tersebut. Untuk maklumat lanjut mengenai akibat*<br>*keengganannya untuk memberikan keizinan atau penarikan balik keizinan, Penerima memahami bahawa dia boleh*<br>*menghubungi wakil sumber manusianya.* |

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**<u>MEXICO</u>**

***Terms and Conditions***

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| | |
|:---|:---|
| **Acknowledgement of the Agreement.** By accepting the RSUs, the Recipient acknowledges that he or she has received a copy of the Plan and the Agreement, including <u>Appendix A</u> and this <u>Appendix B</u>, which he or she has reviewed. The Recipient further acknowledges that he or she accepts all the provisions of the Plan and the Agreement, including <u>Appendix A</u> and this <u>Appendix B</u>. The Recipient also acknowledges that he or she has read and specifically and expressly approves the terms and conditions set forth in the "Nature of Grant" section of <u>Appendix A</u>, which clearly provides as follows: | ***Reconocimiento del Convenio de Concesión****. Al aceptar las Unidades, el Recipiente reconoce que ha recibido y revisado una copia del Plan y del Convenio , incluyendo el Apéndice A y este Apéndice B. El Recipiente reconoce y acepta todas las disposiciones del Plan y del Convenio de Concesión, incluyendo el Apéndice A y este Apéndice B. El Recipiente también reconoce que ha leído y aprobado de forma expresa los términos y condiciones establecidos en las secciones: "Nature of Grant" del Convenio y del Apéndice A, que claramente establece lo siguiente:* |
| (1)&nbsp;&nbsp;&nbsp;&nbsp;The Recipient's participation in the Plan does not constitute an acquired right; | *(1)&nbsp;&nbsp;&nbsp;&nbsp;La participación del Recipiente en el Plan no constituye un derecho adquirido;* |
| (2) The Plan and the Recipient's participation in it are offered by the Company on a wholly discretionary basis; | *(2) El Plan y la participación del Recipiente en él es ofrecido por la Compañía de manera completamente discrecional;* |
| (3)&nbsp;&nbsp;&nbsp;&nbsp;The Recipient's participation in the Plan is voluntary; and | *(3)&nbsp;&nbsp;&nbsp;&nbsp;La participación del Recipiente en el Plan es voluntaria; y* |
| (4) The Company and its Affiliates are not responsible for any decrease in the value of any Underlying Shares acquired under the Plan. | *(4) La Compañía y sus Afiliadas no son responsables por ninguna disminución en el valor de las Acciones adquiridas en virtud del Plan.* |
| **Labor Law Acknowledgement and Policy Statement.** By accepting the RSUs, the Recipient acknowledges that the Company, with registered offices at 310 Littleton Road, Westford, MA 01886, U.S.A., is solely responsible for the administration of the Plan. The Recipient further acknowledges that his or her participation in the Plan, the grant of RSUs and any acquisition of Underlying Shares under the Plan do not constitute an employment relationship between the Recipient and the Company because the Recipient is participating in the Plan on a wholly commercial basis. Based on the foregoing, the Recipient expressly acknowledges that the Plan and the benefits that he or she may derive from participation in the Plan do not establish any rights between the Recipient and the Employer and do not form part of the employment conditions and/or benefits provided by the Employer, and any modification or termination of the Plan, subject to its terms, shall not constitute a change or impairment of the terms and conditions of the Recipient's employment. | ***Reconocimiento del Derecho Laboral y Declaración de la Política****. Al aceptar las Unidades, el Recipiente reconoce que la Compañía, con domicilio social en 310 Littleton Road, Westford, MA 01886, E.U.A., es la única responsable de la administración del Plan. Además, el Recipiente reconoce que su participación en el Plan, la concesión de las Unidades y cualquier adquisición de Acciones en virtud del Plan no constituyen una relación laboral entre el Recipiente y la Compañía, en virtud de que el Recipiente está participando en el Plan sobre una base totalmente comercial. Por lo anterior, el Recipiente expresamente reconoce que el Plan y los beneficios que puedan derivarse por su participación en el Plan no establecen ningún derecho entre el Recipiente y el Empleador y que no forman parte de las condiciones de trabajo y/o beneficios otorgados por el Empleador, y cualquier modificación del Plan o la terminación del mismo, sujeto a los términos del Plan, no constituirá un cambio o modificación de los términos y condiciones del empleo del Recipiente.* |

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| | |
|:---|:---|
| The Recipient further understands that his or her participation in the Plan is the result of a unilateral and discretionary decision of the Company and, therefore, the Company reserves the absolute right to amend and/or discontinue the Recipient's participation in the Plan at any time, without any liability to the Recipient.<br>Finally, the Recipient hereby declares that he or she does not reserve to him- or herself any action or right to bring any claim against the Company for any compensation or damages regarding any provision of the Plan or the benefits derived under the Plan, and that he or she therefore grants a full and broad release to the Company, its parent, subsidiaries, branches, representation offices, stockholders, officers, agents or legal representatives, with respect to any claim that may arise. | &nbsp;&nbsp;*Además, el Recipiente comprende que su participación en el Plan es el resultado de una decisión discrecional y unilateral de la Compañía, por lo que la misma se reserva el derecho absoluto de modificar y/o suspender la participación del Recipiente en el Plan en cualquier momento, sin responsabilidad alguna del Recipiente.*<br>*Finalmente, el Recipiente manifiesta que no se reserva acción o derecho alguno que origine una demanda en contra de la Compañía, por cualquier indemnización o daño relacionado con las disposiciones del Plan o de los beneficios otorgados en el mismo, y en consecuencia el Recipiente libera de la manera más amplia y total de responsabilidad a la Compañía, su Padre y sus Subsidiarias, sucursales, oficinas de representación, accionistas, directores, agentes y representantes legales con respecto a cualquier demanda que pudiera surgir.* |

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***Notifications***

<u>Securities Law Information</u>. The RSUs and the Underlying Shares have not been registered with the National Register of Securities maintained by the Mexican National Banking and Securities Commission and cannot be offered or sold publicly in Mexico. In addition, the Plan, the Agreement and any other document relating to the RSUs may not be publicly distributed in Mexico. These materials are addressed to the Recipient only because of the Recipient's existing relationship with the Company and its Affiliates and these materials should not be reproduced or copied in any form. The offer contained in these materials does not constitute a public offering of securities but rather constitutes a private placement of securities addressed specifically to individuals who are present employees of the Company or an Affiliate made in accordance with the provisions of the Mexican Securities Market Law, and any rights under such offering shall not be assigned or transferred.

**<u>MOROCCO</u>**

***Terms and Conditions***

<u>Issuance of Underlying Shares</u>. The following provision replaces Section 3 of the Agreement:

With respect to any RSUs that become vested RSUs pursuant to Section 2 of the Agreement, subject to Sections 5 and 6 of the Agreement, the Recipient shall receive, on or as soon as practicable following the applicable vesting date specified in the Notice, a cash payment in an amount equal in value to one share of Common Stock (using the closing price per share on the Nasdaq Global Select Market (or other principal exchange on which the Common Stock then trades) on the applicable vesting date (or the prior trading day if the vesting date is not a trading day). Any references to the issuance of shares of Common Stock in any documents related to the RSUs shall be interpreted accordingly.

**<u>NEW ZEALAND</u>**

***Notifications***

<u>Securities Law Information</u>. The Recipient is being offered RSUs which will allow the Recipient to acquire Underlying Shares in accordance with the terms of the Agreement and the Plan. The Underlying Shares, if issued, will give the Recipient a stake in the ownership of the Company. The Recipient may receive a return if dividends are paid.

If the Company runs into financial difficulties and is wound up, the Recipient will be paid only after all creditors have been paid. The Recipient may lose some or all of the Recipient's investment, if any.

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New Zealand law normally requires people who offer financial products to give information to investors before they invest. This information is designed to help investors make an informed decisions. The usual rules do not apply for this offer because it is made under an employee share scheme. As a result, the Recipient may not be given all the information usually required. The Recipient will also have fewer other legal protections for this investment. The Recipient should ask questions, read all documents carefully, and seek independent financial advice before committing.

The Common Stock is listed on the Nasdaq Global Select Market ("<u>Nasdaq</u>"). This means that if the Recipient acquires Underlying Shares under the Plan, the Recipient may be able to sell the Underlying Shares on the Nasdaq if there are interested buyers. The Recipient may get less than the Recipient invested. The price will depend on the demand for the Underlying Shares.

For more information on risk factors impacting the Company's business that may affect the value of the Underlying Shares, the Recipient should refer to the risk factors discussion on the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are filed with the U.S. Securities and Exchange Commission which are available online at <u>www.sec.gov</u>., as well as on the Company's "For Investors" website at <u>http://ir.netscout.com/phoenix.zhtml?c=92658&p=irol-irhome</u>.

**<u>PHILIPPINES</u>**

***Terms and Conditions***

<u>Issuance of Underlying Shares</u>. The following provision replaces Section 3 of the Agreement:

With respect to any RSUs that become vested RSUs pursuant to Section 2 of the Agreement, subject to Sections 5 and 6 of the Agreement, the Recipient shall receive, on or as soon as practicable following the applicable vesting date specified in the Notice, a cash payment in an amount equal in value to one share of Common Stock (using the closing price per share on the Nasdaq Global Select Market (or other principal exchange on which the Common Stock then trades) on the applicable vesting date (or the prior trading day if the vesting date is not a trading day). Any references to the issuance of shares of Common Stock in any documents related to the RSUs shall be interpreted accordingly.

**<u>SINGAPORE</u>**

***Notifications***

<u>Securities Law Information</u>. The RSUs are being granted pursuant to the "Qualifying Person" exemption under section 273(1)(f) of the Securities and Futures Act 2001 ("<u>SFA</u>"). The Plan has not been lodged or registered as a prospectus with the Monetary Authority of Singapore. The Recipient should note that the RSUs are subject to section 257 of the SFA and that he or she will not be able to make any subsequent sale of the shares in Singapore or any offers of such subsequent sale of shares subject to the RSUs in Singapore, unless such sale or offer is made (i) more than six months from the grant of the RSUs, (ii) pursuant to the exemptions under Part XIII Division

&nbsp;&nbsp;&nbsp;&nbsp;(1)Subdivision (4) (other than section 280) of the SFA, or (iii) pursuant to, and in accordance with the condition of, any other applicable provisions of the SFA.

**<u>SOUTH AFRICA</u>**

***Notifications***

<u>Securities Law Information</u>. Neither the RSUs nor the Underlying Shares shall be publicly offered or listed on any stock exchange in South Africa. The offer is intended to be private pursuant to Section 96(1)(g)(ii) of the Companies Act.

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**<u>SPAIN</u>**

***Terms and Conditions***

<u>Nature of Grant</u>. The following provision supplements Section 1 of <u>Appendix A</u>:

The RSUs provide for a conditional right to Underlying Shares and may be forfeited or affected by the Recipient's termination of employment prior to the date the RSUs become fully vested, as set forth in the Agreement. For the avoidance of doubt, the Recipient's rights, if any, to the RSUs upon termination of employment shall be determined as set forth in the Agreement, including, without limitation, where (a) the Recipient is deemed to be constructively dismissed or unfairly dismissed without good cause; (b) the Recipient is dismissed for disciplinary or objective reasons or due to a collective dismissal; (c) the Recipient terminates employment due to a change of work location, duties or any other employment or contractual condition (except as otherwise expressly set forth in the Agreement); or (d) the Recipient terminates employment due to the Company's or any of one of its Affiliates' unilateral breach of contract. Consequently, the termination of the Recipient's employment for any of the above reasons shall be governed by the terms of the Agreement, unless otherwise determined by the Company, in its sole discretion.

By accepting the RSUs, the Recipient acknowledges that he or she understands and agrees to the terms and conditions applicable to participation in the Plan and that he or she has received a copy of the Plan.

The Recipient understands that the Company has unilaterally, gratuitously and discretionally decided to grant RSUs under the Plan to employees of the Company and its Affiliates throughout the world. The decision is a limited decision that is entered into upon the express assumption and condition that any grant will not economically or otherwise bind the Company or any Affiliate on an ongoing basis, other than as expressly set forth in the Plan and the Agreement. Consequently, the Recipient understands that any grant is given on the assumption and condition that it shall not become part of any employment contract (either with the Company or any Affiliate) and shall not be considered a mandatory benefit, salary for any purposes (including severance compensation) or any other right whatsoever. Furthermore, the Recipient understands and freely accepts that there is no guarantee that any benefit shall arise from an gratuitous and discretionary grant since the RSUs may be forfeited upon termination of employment and the future value of the RSUs and the Underlying Shares is unknown and unpredictable. In addition, the Recipient understands that this grant would not be made but for the assumptions and conditions referred to herein; thus, the Recipient understands, acknowledges and freely accepts that should any or all of the assumptions be mistaken or should any of the conditions not be met for any reason, then the RSUs shall be null and void.

***Notifications***

<u>Securities Law Information</u>. The RSUs and the Underlying Shares issued upon vesting do not qualify under Spanish regulations as a security. No "offer of securities to the public" as defined under Spanish law has taken place or will take place in the Spanish territory. The Plan and the Agreement, including <u>Appendix A</u> and this <u>Appendix B</u>, have not been nor will they be registered with the Comisión Nacional del Mercado de Valores (*Spanish Securities Exchange Commission*), and they do not constitute a public offering prospectus.

**<u>SWEDEN</u>**

***<br>Terms and Conditions***

<u>Withholding Taxes</u>. The following provision supplements Section 6 of the Agreement:

Without limiting the authority of the Company or an Affiliate to satisfy its withholding obligations for Tax Obligations as set forth in Section 6 of the Agreement, in accepting the RSUs, the Recipient authorizes the Company or any Affiliate to sell or withhold a portion of the Underlying Shares otherwise deliverable to the Recipient pursuant to this Agreement to satisfy Tax Obligations, regardless of whether the Company or any Affiliate has an obligation to withhold.

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**<u>SWITZERLAND</u>**

***Notifications***

<u>Securities Law Information</u>. Neither this Agreement nor any other materials relating to the RSUs (i) constitutes a prospectus according to articles 35 et seq. of the Swiss Federal Act on Financial Services ("<u>FinSA</u>*"*), (ii) may be publicly distributed or otherwise made available in Switzerland to any person other than an employee of the Company or an Affiliate, or (iii) has been or will be filed with, approved or supervised by any Swiss reviewing body according to article 51 of FinSA or any Swiss regulatory authority, including the Swiss Financial Market Supervisory Authority (FINMA).

**<u>TAIWAN</u>**

***Notifications***

<u>Securities Law Information</u>. The grant of RSUs and the Underlying Shares to be issued pursuant to the Plan are available only for certain service providers. It is not a public offer of securities by a Taiwanese company; therefore, it is exempt from registration in Taiwan.

**<u>UNITED ARAB EMIRATES</u>**

***Notifications***

<u>Securities Law Information</u>. The award of RSUs is being offered only to eligible employees under the Plan and is in the nature of providing equity incentives to employees in the United Arab Emirates. The Plan and the Agreement are intended for distribution only to such employees and must not be delivered to, or relied on by, any other person. Prospective purchasers of the securities offered should conduct their own due diligence on the securities. The Emirates Securities and Commodities Authority has no responsibility for reviewing or verifying any documents in connection with the Plan. Neither the Ministry of Economy nor the Dubai Department of Economic Development have approved the Plan or the Agreement nor taken steps to verify the information set out therein, and have no responsibility for such documents.

**<u>UNITED KINGDOM</u>**

***Terms and Conditions***

<u>Issuance of Underlying Shares</u>. As provided in Section 3 of the Agreement, with respect to any RSUs that become vested RSUs under the Agreement, the Company shall issue to the Recipient a number of Underlying Shares, as described in Section 3 of the Agreement. For the avoidance of doubt, vested RSUs will not be settled in cash.

<u>Withholding Taxes</u>. The following provision supplements Section 6 of the Agreement:

Without limitation to Section 6 of the Agreement, the Recipient agrees that he or she is liable for all Tax Obligations and hereby covenants to pay all such Tax Obligations as and when requested by the Company or the Employer or by HM Revenue and Customs ("<u>HMRC</u>") (or any other tax authority or any other relevant authority). The Recipient also agrees to indemnify and keep indemnified the Company and the Employer against any Tax Obligations that they are required to pay or withhold or have paid or will pay to HMRC (or any other tax authority or any other relevant authority) on the Recipient's behalf.

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Notwithstanding the foregoing, if the Recipient is a director or executive officer of the Company (within the meaning of Section 13(k) of the Exchange Act), he or she may not be able to indemnify the Company or the Employer for the amount of any income tax not collected from or paid by the Recipient, as it may be considered a loan. In this case, the amount of any income tax not collected within 90 days of the end of the U.K. tax year in which the event giving rise to the Tax Obligation occurs may constitute an additional benefit to the Recipient on which additional income tax and National Insurance contributions ("<u>NICs</u>") may be payable. The Recipient understands that he or she will be responsible for reporting and paying any income tax due on this additional benefit directly to HMRC under the self-assessment regime and for paying the Company or the Employer, as applicable, for the value of any NICs due on this additional benefit, which may be collected from the Recipient by the Company or the Employer by any of the means referred to in Section 6 of the Agreement.

**<u>URUGUAY</u>**

***Terms and Conditions***

<u>Data Privacy</u>. The following provision supplements Section 2 of <u>Appendix A</u>:

The Recipient hereby acknowledges that Data will be collected by the Employer and will be transferred to the Company at 310 Littleton Road, Westford, MA 01886, U.S.A. and/or any financial institutions or brokers involved in the management and administration of the Plan. The Recipient further understands that any of these entities may store Data for purposes of administering the Recipient's participation in the Plan.

## Exhibit 10.6

Exhibit 10.6

![image_0a.jpg](image_0a.jpg)

NETSCOUT SYSTEMS, INC.

<u>2019 Equity Incentive Plan</u>

<u>Performance-Based Restricted Stock Unit Award Agreement – Terms and Conditions</u>

NetScout Systems, Inc. (the "<u>Company</u>") has granted to the recipient (as specified in the written notice provided by the Company to such recipient regarding such grant (the "<u>Notice</u>")) (the "<u>Recipient</u>"), and the Recipient has accepted from the Company (by electronic acceptance or authentication in a form authorized by the Company), an award for the number of performance-based restricted stock units (the "<u>PSUs</u>") specified in the Notice (the "<u>Award</u>"), which represents an equivalent number of shares of Common Stock subject to this Award (the "<u>Underlying Shares</u>"), on the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Grant under Plan</u>. This Award and this Performance-Based Restricted Stock Unit Award Agreement (which includes the Notice and any appendix, exhibit or addendum hereto) (the "<u>Agreement</u>"), is made pursuant to and is governed by the Company's 2019 Equity Incentive Plan, as amended and in effect from time to time (the "<u>Plan</u>"). Unless otherwise defined herein or required by the context, capitalized terms used herein shall have the same meanings as in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Vesting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Vesting Schedule</u>. Subject to the limitations contained herein, vesting of the Award is based on the Achievement Percentage, as set forth in Appendix A, which may result in the Recipient earning up to 100% of the Target Number of PSUs set forth in the Notice. Subject to the terms of this Agreement and the Plan, each vested PSU represents a right to receive one Underlying Share on the Determination Date (as defined in the Notice). Unless and until a PSU has become one or more vested PSUs as set forth in the Notice and this Agreement, the Recipient will have no right to settlement of such PSU.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Termination of Continuous Service</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)If the Recipient's Continuous Service is terminated by the Company or an Affiliate or by the Recipient for any reason (other than as a result of the Recipient's death or Disability), whether voluntarily or involuntarily, in each case, prior to the Determination Date, no additional PSUs shall become vested PSUs following such termination of Continuous Service and any unvested PSUs shall be forfeited upon termination of the Recipient's Continuous Service; *provided, however*, that if the Recipient's Continuous Service terminates as a result of the Recipient's death or Disability, any unvested PSUs shall instead be forfeited on the seventh business day following the Recipient's termination of Continuous Service. Any determination under this Agreement as to Continuous Service status or other matters referred to above shall be made in good faith by the Board, whose decision shall be final and binding on all parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)For purposes hereof, Continuous Service shall not be considered as having terminated during any military leave, sick leave, or other leave of absence, in each case if approved in writing by the Company or an Affiliate and if such written approval, or applicable law, obligates the Company or an Affiliate (by contract or applicable law) to continue the Continuous Service of the Recipient after the approved period of absence (an "<u>Approved Leave of Absence</u>"). In the event of an Approved Leave of Absence, vesting of the PSUs shall be suspended (and all subsequent vesting dates shall be postponed by the length of the period of the Approved Leave of Absence) unless otherwise provided in the Company's or Affiliate's written approval of the leave of absence that specifically refers to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)For purposes hereof, Continuous Service will be deemed terminated as of the date the Recipient is no longer actively providing services to the Company or any of its Affiliates (regardless of the reason for such termination and whether or not later found to be invalid or in breach of labor laws in the jurisdiction where the Recipient is employed or otherwise providing services or the terms of the Recipient's employment or service agreement, if any), and unless otherwise determined by the Company, the Recipient's right to vest in the Award, if any, will terminate as of such date and will not be extended by any notice period or any period of "garden leave" or similar period mandated under labor laws in the jurisdiction where the Recipient is employed or otherwise providing services or the terms of the Recipient's employment or service agreement, if any).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Notwithstanding anything in the Plan to the contrary, and unless otherwise determined by the Company, for purposes hereof, Continuous Service shall be deemed terminated if the Recipient's service to the Company or an Affiliate and/or the Recipient's residency is transferred to another country for any reason after the Award's grant date (such a transfer, a "***Country Transfer***"), and the Recipient's right to vest in the Award, if any, shall terminate immediately upon such Country Transfer. Notwithstanding the foregoing, (x) the termination of the Recipient's Continuous Service for purposes of the Award upon a Country Transfer will not necessarily be deemed a termination of the Recipient's service to the Company or an Affiliate for all other purposes, including, but not limited to, pursuant to any employment, severance or service contract by and between the Recipient and the Company or an Affiliate or for purposes of employee benefits and other similar employment-related entitlements, and (y) whether or not a termination of the Recipient's service to the Company or an Affiliate has occurred upon a Country Transfer for purposes of any other such arrangement will depend on the specific terms thereof as determined by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Notwithstanding anything in the Plan to the contrary, for purposes hereof, Continuous Service shall include service provided by the Recipient to the Company or an Affiliate as a Consultant pursuant to a consulting arrangement between the Recipient and the Company or Affiliate, provided that (x) any such period of service as a Consultant immediately follows the Recipient's termination of employment with the Company or Affiliate or termination as a Director, in each case without any interruption, and (y) the terms of this Section 2(b)(v) are provided for in a written consulting agreement executed by the Company or Affiliate that specifically refers to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Issuance of Underlying Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)With respect to any PSUs that become vested PSUs pursuant to Section 2 and Appendix A, subject to Sections 5, 6 and 9, the Company shall issue to the Recipient, on or as soon as practicable following the Determination Date (as defined in Appendix A), the number of Underlying Shares equal to the number of PSUs vesting on such Determination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Notwithstanding the foregoing, <u>if</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)this Award is otherwise subject to Tax Obligations (as described in Section 6) on such vesting date,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)such vesting date occurs during either a regularly scheduled or special "blackout period" of the Company applicable to the Recipient or on any other date wherein Recipient is precluded from selling shares of Common Stock on an established stock exchange or stock market (any such blackout period or date, the "<u>Blackout Period</u>"), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)the Company elects, prior to such vesting date, not to satisfy such Tax Obligations by (x) withholding shares of Common Stock from the Underlying Shares otherwise issuable with respect to such vesting date, (y) permitting the Recipient to enter into a "same day sale" commitment with a broker-dealer pursuant to Section 6 (including, but not limited to, under a previously established 10b5-1 trading plan entered into in compliance with the Company's policies), and (z) permitting the Recipient to pay such Tax Obligations in cash (including by withholding from the Recipient's wages or any other cash compensation otherwise payable to the Recipient by the Company or an Affiliate),

<u>then</u> the delivery of the Underlying Shares otherwise issuable with respect to such vesting date will be deferred and such Underlying Shares will be issued to the Recipient as soon as practicable after the expiration of the Blackout Period. Notwithstanding the above, in no event may such Underlying Shares be issued to the Recipient later than the later of: (i) December 31st of the calendar year in which such vesting date occurs, or (ii) if such later issuance would not subject the Recipient to adverse tax consequences under Section 409A of the Code, by the fifteenth (15th) day of the third calendar month following such vesting date; provided that the Recipient acknowledges and agrees that if such Underlying Shares are issued to the Recipient pursuant to this Section 3 while a Blackout Period is still in effect, neither the Company nor the Recipient may sell any shares of Common Stock to satisfy any Tax Obligations, except in compliance with the Company's insider trading policies and requirements and applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The form of issuance of any Underlying Shares (*e.g.*, a stock certificate or electronic entry evidencing such Underlying Shares) shall be determined by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;2

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Restrictions on Transfer</u>. The Recipient shall not sell, assign, transfer, pledge, encumber or dispose of any of the PSUs or corresponding Underlying Shares prior to the time that such Underlying Shares have been issued to the Recipient. Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, the Recipient may designate a third party who, in the event of the Recipient's death, shall thereafter be entitled to receive any distributions of Underlying Shares to which the Recipient is entitled at the time of his or her death pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Compliance with Law</u>. This Award, and the issuance of the Underlying Shares pursuant to this Award, must comply with all applicable laws and regulations governing this Award, and with the applicable regulations of any stock exchange on which the Common Stock is listed for trading at the time of issuance. The Company shall not issue the Underlying Shares to the Recipient if the Company determines that such issuance would not be in material compliance with all such applicable laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Withholding Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)This Award shall be subject to withholding of all applicable federal, state, local and foreign income, employment, payroll, fringe benefit, social insurance, payment on account and any other taxes resulting from the issuance or vesting of the PSUs or the delivery of the Underlying Shares (the "<u>Tax Obligations</u>"). The Recipient agrees to pay to the Company or an Affiliate, or otherwise make adequate provisions satisfactory to the Company or Affiliate for the payment of, any sums required to satisfy the Tax Obligations at the time such Tax Obligations arise. Specifically, the Company or an Affiliate may, in its sole discretion, satisfy all or any portion of such Tax Obligations by any of the following means or by a combination of such means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)withholding from the Recipient's wages or any other compensation otherwise payable to the Recipient by the Company or an Affiliate, provided that the Recipient elects such withholding by providing written notice to the Company or Affiliate at least ten business days before the applicable vesting date specified in the Notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)permitting the Recipient to pay such Tax Obligations in cash, provided that the Recipient elects to make such a payment by providing written notice to the Company or Affiliate at least ten business days before the applicable vesting date specified in the Notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)permitting the Recipient to enter into a "same day sale" commitment with a broker-dealer that is a member of the Financial Industry Regulatory Authority (a "<u>FINRA Dealer</u>") whereby the Recipient irrevocably elects to sell a portion of the Underlying Shares to satisfy such Tax Obligations and whereby the FINRA Dealer irrevocably commits to forward the proceeds necessary to satisfy such Tax Obligations directly to the Company or an Affiliate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)withholding shares of Common Stock from the Underlying Shares with a Fair Market Value (measured as of the date the Underlying Shares are issued to the Recipient) not in excess of the maximum amount of taxes that may be required to be withheld by law (or such other amount as may be permitted while still avoiding classification of this Award as a liability for financial accounting purposes);

*provided, however*, that, if the Recipient is an "officer" (within the meaning of Rule 16a-1(f) under the Exchange Act) of the Company or an Affiliate, such Tax Obligations will be satisfied pursuant to the method set forth in clause (iv) above, unless (x) the Compensation Committee of the Board (the "<u>Committee</u>") provides otherwise before the applicable vesting date specified in the Notice or (y) the Recipient elects any of the methods set forth in clauses (i)-(iii) above in accordance with the terms set forth in such clauses, as applicable (including in the case of clauses (i) and (ii) above, the requirement to provide written notice to the Company or Affiliate at least ten business days before the applicable vesting date specified in the Notice).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Company shall have no obligation to issue the Underlying Shares if the Recipient fails to comply with his or her obligations in connection with the Tax Obligations as described in this Section 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Recipient further agrees to take any further actions and execute any additional documents as may be necessary to effectuate the provisions of this Section 6 and the Recipient hereby grants the Company an irrevocable power of attorney to sign such additional documents on the Recipient's behalf if the Company is unable after reasonable efforts to obtain the Recipient's signature on such additional documents. Such power of attorney is coupled with an interest and is irrevocable by the Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;3

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Depending on the withholding method, the Company and/or an Affiliate may withhold or account for the Tax Obligations by considering applicable minimum withholding amounts or other applicable withholding rates, including applicable maximum withholding rates in the Recipient's jurisdiction(s), in which case the Recipient may receive a refund of any over-withheld amount in cash and will have no entitlement to the equivalent in shares of Common Stock. If the Tax Obligations are satisfied by withholding in shares of Common Stock, for tax purposes, the Recipient is deemed to have been issued the full number of shares of Common Stock subject to the vested PSUs, notwithstanding that a number of the shares of Common Stock are withheld solely for the purpose of satisfying the Tax Obligations. In the event that any Tax Obligations arise prior to the issuance of any Underlying Shares or it is determined after such issuance that the amount of any Tax Obligations was greater than the amount withheld by the Company or an Affiliate, the Recipient agrees to indemnify and hold the Company and Affiliate harmless from any failure to withhold the proper amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Arbitration</u>. Any dispute, controversy, or claim arising out of, in connection with, or relating to the performance of this Agreement or its termination shall be settled by arbitration in Boston, Massachusetts, pursuant to the rules for commercial arbitration then obtaining of the American Arbitration Association, before a single arbitrator. The Company agrees to pay the costs of arbitration and each party shall be responsible for their own attorneys' fees. Any award shall be final, binding and conclusive upon the parties and a judgment rendered thereon may be entered in any court having jurisdiction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Provision of Documentation to Recipient</u>. By accepting this Award, the Recipient acknowledges receipt of a copy of this entire Agreement, a copy of the Plan, and a copy of the Plan's related prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<u>Section 409A of the Internal Revenue Code</u>. This Award is intended to avoid the potential adverse tax consequences to the Recipient of Section 409A of the Code, and the Board may make such modifications to this Agreement as it deems necessary or advisable to avoid such adverse tax consequences. However, if (i) this Award is not exempt from, and therefore deemed to be deferred compensation subject to, Section 409A of the Code, (ii) the Recipient is deemed by the Company at the time of his or her "separation from service" (as such term is defined in Treasury Regulations Section 1.409A-1(h) without regard to any alternative definition thereunder) to be a "specified employee" for purposes of Section 409A(a)(2)(B)(i) of the Code, and (iii) any of the payments set forth herein are issuable upon such separation from service, then to the extent delayed commencement of any portion of such payments is required to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code and the related adverse taxation under Section 409A of the Code, such payments will not be provided to the Recipient prior to the earliest of (a) the date that is six months and one day after the date of such separation from service, (b) the date of the Recipient's death, or (c) such earlier date as permitted under Section 409A of the Code without the imposition of adverse taxation. Upon the first business day following the expiration of such applicable Code Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this Section 9 will be paid in a lump sum to the Recipient, and any remaining payments due will be paid as otherwise provided herein. Each installment of PSUs that vests under this Award is a "separate payment" for purposes of Treasury Regulations Section 1.409A-2(b)(2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.<u>Rights as Stockholder</u>. The Recipient shall have no voting or any other rights as a stockholder of the Company with respect to any PSUs covered by this Agreement until the issuance of the Underlying Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.<u>Non-U.S. and Country-Specific Provisions</u>. If the Recipient relocates to a country outside the United States, additional terms and conditions will be provided and will apply to the Recipient, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons. Such additional terms will constitute part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.<u>Imposition of Other Requirements</u>. The Company reserves the right to impose other requirements on the Recipient's participation in the Plan, on the PSUs and on any Underlying Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require the Recipient to sign or otherwise accept any additional agreements or undertakings that may be necessary to accomplish the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;4

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.<u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Notices; Electronic Delivery and Participation</u>. All notices hereunder shall be given in writing (including electronically) and shall be deemed given upon receipt or, in the case of notices delivered by mail, when sent by certified or registered mail, postage prepaid, return receipt requested, if to the Recipient, to the address shown on the records of the Company, and if to the Company, to the Company's principal executive offices, attention of the Corporate Secretary. The Company, in its sole discretion, may decide to deliver any documents related to this Award or participation in the Plan by electronic means or to request the Recipient's consent to participate in the Plan by electronic means. By accepting this Award, the Recipient consents to receive such documents by electronic delivery and to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Entire Agreement; Modification</u>. This Agreement, together with the Plan, constitutes the entire agreement between the parties relative to the subject matter hereof, and supersedes all proposals, written or oral, and all other communications between the parties relating to the subject matter of this Agreement. This Agreement may be modified, amended or rescinded only by a written agreement executed by both parties to this Agreement; *provided, however*, that notwithstanding the foregoing, this Agreement may be modified, amended or rescinded by the Company without the Recipient's written consent if such modification, amendment or rescission (i) is in writing and executed by a duly authorized representative of the Company and (ii) complies with Section 2(b)(viii) of the Plan. This Award is subject to all the provisions of the Plan, the provisions of which are hereby made a part of this Award, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan. Except as otherwise expressly provided in this Agreement, in the event of a conflict between the terms of this Agreement and the Plan, the terms of the Plan shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Capitalization Adjustments</u>. Any additional PSUs and Underlying Shares, cash or other property that become subject to this Award pursuant to any Capitalization Adjustment will be subject, in a manner determined by the Board, to the same forfeiture restrictions, restrictions on transferability, and time and manner of issuance as applicable to the other PSUs subject to this Award to which they relate. All fractional PSUs or Underlying Shares resulting from any Capitalization Adjustment shall be rounded down to the nearest whole unit or share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Severability</u>. The invalidity, illegality or unenforceability of any provision of this Agreement shall in no way affect the validity, legality or enforceability of any other provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Successors and Assigns</u>. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, subject to the limitations set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Governing Law</u>. This Agreement shall be governed by and interpreted in accordance with the laws of Delaware without giving effect to the principles of conflicts of laws thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>No Obligation to Continue Service</u>. Neither the Plan nor this Agreement (nor any provision in the Plan or this Agreement) (i) is an employment or service contract, or (ii) will be deemed to create any obligation on the Recipient's part to continue in the service of the Company or an Affiliate, or on the part of the Company or an Affiliate to continue such service. In addition, nothing in the terms of this Award will obligate the Company or an Affiliate, their respective stockholders, boards of directors, Officers or Employees to continue any relationship that the Recipient might have as an Employee, Director or Consultant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)<u>Clawback/Recovery</u>. Notwithstanding anything to the contrary in this Agreement, but subject to applicable law, this Award will be subject to recoupment, repayment and/or forfeiture in accordance with any clawback policy that the Company is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company's securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable law, and any other clawback policy that the Company otherwise adopts. Notwithstanding anything to the contrary herein, (i) compliance with applicable law, the Company's Code of Conduct, and the Company's corporate policies, as applicable, will be a pre-condition to earning, or vesting in, any Award under this Agreement and (ii) any Award under this Agreement which is subject to the Company's Executive Compensation Recovery Policy or any other clawback, recovery or recoupment provision will not be earned or vested, even if already granted, paid or settled, until the Company's Executive Compensation Recovery Policy and any other applicable clawback, recovery or recoupment provisions cease to apply to such Award and any other vesting conditions applicable to such Award are satisfied. No recovery of compensation under such a clawback policy will be an event giving rise to a right to resign for "good reason" or "constructive termination" (or similar term) under any agreement with the Company or an Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;5

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>No Advice Regarding Grant; Tax Consequences</u>. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Recipient's participation in the Plan, or his or her acquisition or sale of the Underlying Shares. The Recipient should consult with his or her own tax, legal and financial advisors regarding participation in the Plan before taking any action related to the Plan. The Company has no duty or obligation to minimize the tax consequences to the Recipient of this Award and will not be liable to the Recipient for any adverse tax consequences to the Recipient arising in connection with this Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)<u>Dividends</u>. The Recipient will receive no benefit or adjustment to this Award with respect to any cash dividend, stock dividend or other distribution, except as provided in the Plan with respect to a Capitalization Adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)<u>Unsecured Obligation</u>. This Award is unfunded, and as a holder of vested PSUs, the Recipient will be considered an unsecured creditor of the Company with respect to the Company's obligation, if any, to issue shares of Common Stock or other property pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)<u>Effect on Other Employee Benefit Plans</u>. The value of this Award will not be included as compensation, earnings, salaries, or other similar terms used when calculating the Recipient's benefits under any employee benefit plan sponsored by the Company or an Affiliate, except as such plan otherwise expressly provides. The Company expressly reserves its rights to amend, modify, or terminate any such plan in accordance with the terms of such plan.

&nbsp;&nbsp;&nbsp;&nbsp;6

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**APPENDIX A**

NETSCOUT SYSTEMS, INC.

<u>2019 Equity Incentive Plan</u>

<u>Performance-Based Restricted Stock Unit Award Agreement</u><br>

Capitalized terms used but not defined in this <u>Appendix A</u> shall have the same meanings as in the Agreement and/or the Plan, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Definitions</u>. By accepting this Award, the Recipient acknowledges, understands and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)"<u>Achievement Percentage</u>" shall mean the percentage at which the PSUs become vested based on actual Relative TSR achievement, as determined by the Committee in accordance with Section 2 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)"<u>Benchmark Index</u>" shall mean the Russell 2000 Index.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)"<u>Benchmark TSR</u>" shall mean the total shareholder return of the Benchmark Index over the Performance Period, expressed as a percentage and calculated by subtracting the beginning share price from the ending share price and then dividing by the beginning share price, where the beginning price for purposes of the calculation is the average closing price over the 30 consecutive trading days ending on the last trading day prior to the first day of the Performance Period and the ending price for purposes of the calculation is based on the average closing trading price over the 30 consecutive trading days ending on the last trading day prior to the last day of the Performance Period, and assuming dividends (if any) are reinvested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)"<u>Company TSR</u>" shall mean the total shareholder return of the Common Stock over the Performance Period, expressed as a percentage and calculated by subtracting the beginning share price from the ending share price and then dividing by the beginning share price, where the beginning share price for purposes of the calculation is the average closing trading price over the 30 consecutive trading days ending on the last trading day prior to the first day of the Performance Period and the ending share price for purposes of the calculation is based on the average closing trading price over the 30 consecutive trading days ending on the last trading day prior to the last day of the Performance Period, and assuming dividends (if any) are reinvested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)"<u>Determination Date</u>" shall mean the date the Committee determines the Achievement Percentage based on Relative TSR, in accordance with Section 2 below, which date shall be no later than 60 days following the end of the Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)"<u>Performance Period</u>" shall mean the period commencing on (and including) **May 6, 2025** and ending on (and including) **May 5, 2028**. Performance period will be updated annually for any subsequent grants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)"<u>Relative TSR</u>" shall mean the percentage points obtained by subtracting the Benchmark TSR from the Company TSR, rounded to the nearest whole number by application of regular rounding and which may be a negative number.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Achievement Percentage</u>. On the Determination Date, the Achievement Percentage will be determined by the Committee based on the Relative TSR for the Performance Period in accordance with the following table, with the Achievement Percentage determined using linear interpolation for Relative TSR performance between the threshold level and the target level. Notwithstanding the foregoing, in no event may the Achievement Percentage exceed 100%.

---

| | | |
|:---|:---|:---|
| | **Relative TSR** | **Achievement Percentage** |
| **Target** | 5 percentage points | 100% |
| **Threshold** | -44 percentage points | 2% |
| **Below Threshold** | -45 or less | 0% |

---

&nbsp;&nbsp;&nbsp;&nbsp;7

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Change in Control</u>. Notwithstanding anything to the contrary in this Agreement or the Notice, in the event of a Change in Control, if the Award is assumed or continued or substituted with a similar stock award (including, but not limited to, an award to acquire the same consideration paid to the stockholders of the Company pursuant to such Change in Control) by the surviving or acquiring corporation (or its parent company) in connection with such Change in Control pursuant to Section 9(c)(i) of the Plan, then to the extent the Award is outstanding on the effective date of such Change in Control: (i) the vesting schedule of the Award will be revised in a manner as though the target number of PSUs had been subject solely to a vesting schedule pursuant to which one-fourth of such Award would have vested on each of the first four anniversaries of the date of grant of the Award, subject to the Recipient's Continuous Service through the applicable vesting date (the "<u>Time-Based Vesting Schedule</u>"); (ii) any portion of such Award that would have vested on or prior to the effective date of such Change in Control under the Time-Based Vesting Schedule will become vested on the effective date of such Change in Control; and (iii) any portion of such Award that is unvested immediately following the effective date of such Change in Control will continue to vest following such Change in Control in accordance with the Time-Based Vesting Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;8

## Exhibit 31.1

Exhibit 31.1

**CERTIFICATIONS**

I, Anil K. Singhal, certify that:

1. I have reviewed this quarterly report on Form 10-Q of NetScout Systems, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 7, 2025

---

| |
|:---|
| /s/ Anil K. Singhal |
| Anil K. Singhal |
| President, Chief Executive Officer and Chairman |
| (Principal Executive Officer) |

---

## Exhibit 31.2

Exhibit 31.2

**CERTIFICATIONS**

I, Anthony Piazza, certify that:

1. I have reviewed this quarterly report on Form 10-Q of NetScout Systems, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 7, 2025

---

| |
|:---|
| /s/ Anthony Piazza |
| Anthony Piazza |
| Executive Vice President and Chief Financial Officer |
| (Principal Financial Officer) |

---

## Exhibit 32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of NetScout Systems, Inc. (the "Company") on Form 10-Q for the period ending June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Anil K. Singhal, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| |
|:---|
| /s/ Anil K. Singhal |
| Anil K. Singhal |
| President, Chief Executive Officer and Chairman |
| (Principal Executive Officer) |

---

August 7, 2025

This certification accompanies the Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of NetScout Systems, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form 10-Q), irrespective of any general incorporation language contained in such filing.

## Exhibit 32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of NetScout Systems, Inc. (the "Company") on Form 10-Q for the period ending June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Anthony Piazza, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| |
|:---|
| /s/ Anthony Piazza |
| Anthony Piazza |
| Executive Vice President and Chief Financial Officer |
| (Principal Financial Officer) |

---

August 7, 2025

This certification accompanies the Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of NetScout Systems, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form 10-Q), irrespective of any general incorporation language contained in such filing.

<br>