-8%

est. 2Y upside i

Cybersecurity

Rank

#2172

Sector

Cybersecurity

Est. Liquidity

~3Y

Data Quality

Data: Medium

Skyhigh Security presents a moderate upside opportunity for equity holders, driven by its profitability, high gross margins, and strong growth in a large cybersecurity market.

Last updated: March 10, 2026

Bull (15%)+200%

Strong execution of AI innovations and data-first SSE strategy allows Skyhigh to capture significant market share, pushing revenue to ~$336M by 2028 and justifying a $2.8B valuation at 8.3x revenue, leading to 200% upside for common shareholders.

Base (40%)+86%

Skyhigh maintains its competitive position in the SSE market, growing revenue to ~$270M by 2028. A stable 7x revenue multiple results in a $1.89B valuation, yielding an 86% upside for common shareholders after accounting for liquidation preferences.

Bear (45%)-44%

Intensified competition from incumbents like Zscaler and Palo Alto Networks, coupled with broader operational challenges, slows Skyhigh's growth to ~$212M revenue by 2028. A compressed 4x revenue multiple leads to an $846M valuation, resulting in a 44% loss for common shareholders after liquidation preferences.

Est. time to liquidity~3.0 years

Preference Stack Risk

severe

Investors hold $400M in liquidation preferences ahead of common shareholders, representing 33.3% of the estimated $1.2B current valuation.

Dilution Risk

moderate

While profitable and capital-efficient, the competitive landscape and potential for strategic investments or acquisitions may lead to further dilution for common shareholders.

Secondary Liquidity

limited

No active secondary market is indicated, but some limited opportunities might arise for late-stage private companies.

Questions to Ask at the Interview

Strategic questions based on Skyhigh's data — designed to show you've done your homework.

  • 1

    “How is Skyhigh Security planning to differentiate and compete effectively against dominant incumbents like Zscaler and Palo Alto Networks, especially given their extensive resources and broader platform offerings?”

  • 2

    “With strong bookings growth in 2024, what are the key drivers for accelerating revenue beyond the current ~$160M, and how does the company plan to expand its market penetration within the $4.6B SAM?”

  • 3

    “Given the significant total funding of $400M and the company's profitability, what is the anticipated timeline and strategy for a liquidity event (IPO or acquisition) for employees, and how is the preference stack being managed to ensure common shareholder value?”

Community

Valuation Sentiment

Our model estimates -8% upside. What do you think?

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Disclaimer: This analysis is AI-generated and does not constitute financial or career advice. Always conduct your own due diligence.