Zscaler Financials
This page shows Zscaler (ZS) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 10 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
High gross margins let Zscaler turn growth into free cash flow well before accounting earnings fully catch up.
Gross margin stability near77% alongside a free cash flow margin of30.2% in FY2025 shows the core model throws off cash even before accounting earnings turn positive. Because net margin was still-1.6% while operating cash flow reached$972M , the gap is being created below the gross-profit line by heavy operating investment and non-cash expenses rather than by weak core economics.
Operating leverage is visible: operating margin moved from
The liquidity profile improved after a brief squeeze, with the current ratio moving from 1.1x to 1.8x. But total liabilities still finished FY2025 at
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Zscaler's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Zscaler has an operating margin of -4.8%, meaning the company retains $-5 of operating profit per $100 of revenue. This results in a moderate score of 31/100, indicating healthy but not exceptional operating efficiency. This is up from -5.6% the prior year.
Zscaler's revenue surged 23.3% year-over-year to $2.7B, reflecting rapid business expansion. This strong growth earns a score of 88/100.
Zscaler has elevated debt relative to equity (D/E of 2.28), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 27/100, reflecting increased financial risk.
Zscaler's current ratio of 1.82 indicates adequate short-term liquidity, earning a score of 52/100. The company can meet its near-term obligations, though with limited headroom.
Zscaler converts 30.2% of revenue into free cash flow ($808.2M). This strong cash generation earns a score of 94/100.
Zscaler's ROE of -2.1% shows moderate profitability relative to equity, earning a score of 34/100. This is up from -4.0% the prior year.
Zscaler scores 3.49, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($23.0B) relative to total liabilities ($4.5B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Zscaler passes 4 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 3 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Zscaler generates $-23.45 in operating cash flow ($972.5M OCF vs -$41.5M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Zscaler earns $-13.5 in operating income for every $1 of interest expense (-$128.5M vs $9.5M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
Zscaler generated $2.7B in revenue in fiscal year 2025. This represents an increase of 23.3% from the prior year.
Zscaler reported -$41.5M in net income in fiscal year 2025. This represents an increase of 28.1% from the prior year.
Zscaler earned $-0.27 per diluted share (EPS) in fiscal year 2025. This represents an increase of 30.8% from the prior year.
Cash & Balance Sheet
Zscaler generated $808.2M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 27.2% from the prior year.
Zscaler held $1.3B in cash against $0 in long-term debt as of fiscal year 2025.
Zscaler had 158M shares outstanding in fiscal year 2025. This represents an increase of 3.8% from the prior year.
Margins & Returns
Zscaler's gross margin was 76.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 1.1 percentage points from the prior year.
Zscaler's operating margin was -4.8% in fiscal year 2025, reflecting core business profitability. This is up 0.8 percentage points from the prior year.
Zscaler's net profit margin was -1.6% in fiscal year 2025, showing the share of revenue converted to profit. This is up 1.1 percentage points from the prior year.
Zscaler's ROE was -2.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 1.9 percentage points from the prior year.
Capital Allocation
Zscaler invested $672.5M in research and development in fiscal year 2025. This represents an increase of 34.5% from the prior year.
Zscaler invested $164.3M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 13.6% from the prior year.
ZS Income Statement
| Metric | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $850.5M+4.3% | $815.8M+3.5% | $788.1M+9.6% | $719.2M+6.1% | $678.0M+4.7% | $647.9M+3.2% | $628.0M+5.9% | $592.9M |
| Cost of Revenue | $192.7M+0.7% | $191.3M+3.5% | $184.8M+7.3% | $172.2M+10.4% | $156.0M+5.0% | $148.5M+5.0% | $141.5M+8.6% | $130.2M |
| Gross Profit | $657.8M+5.3% | $624.5M+3.5% | $603.4M+10.3% | $547.0M+4.8% | $522.1M+4.5% | $499.4M+2.7% | $486.5M+5.2% | $462.7M |
| R&D Expenses | $232.3M+1.4% | $229.1M+14.3% | $200.5M+12.9% | $177.6M+4.6% | $169.8M-0.6% | $170.9M+10.8% | $154.3M+10.9% | $139.2M |
| SG&A Expenses | $83.2M+6.5% | $78.2M+19.1% | $65.7M-7.6% | $71.0M+12.6% | $63.1M+3.8% | $60.8M+7.0% | $56.8M+1.0% | $56.3M |
| Operating Income | -$29.6M+42.8% | -$51.8M-42.4% | -$36.4M-12.8% | -$32.2M-26.9% | -$25.4M+36.7% | -$40.1M-30.9% | -$30.7M-13.8% | -$26.9M |
| Interest Expense | $2.7M-36.0% | $4.2M+98.4% | $2.1M-61.3% | $5.5M+309.4% | $1.3M+0.1% | $1.3M+0.1% | $1.3M+132.1% | -$4.2M |
| Income Tax | $11.5M-11.5% | $13.0M+301.5% | $3.2M-79.3% | $15.7M+80.4% | $8.7M+198.6% | -$8.8M-215.4% | $7.6M-21.9% | $9.8M |
| Net Income | -$13.9M+59.5% | -$34.3M-195.4% | -$11.6M+33.9% | -$17.6M-326.1% | -$4.1M+46.6% | -$7.7M+35.9% | -$12.1M+19.0% | -$14.9M |
| EPS (Diluted) | $-0.09+57.1% | $-0.21-200.0% | $-0.07 | N/A | $-0.03+40.0% | $-0.05+37.5% | $-0.08 | N/A |
ZS Balance Sheet
| Metric | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $7.1B+5.1% | $6.8B+3.9% | $6.5B+1.3% | $6.4B+20.2% | $5.3B+6.7% | $5.0B+6.3% | $4.7B+0.1% | $4.7B |
| Current Assets | $4.7B+4.6% | $4.5B+5.8% | $4.2B-14.1% | $4.9B+25.0% | $3.9B+6.8% | $3.7B+8.0% | $3.4B-0.1% | $3.4B |
| Cash & Equivalents | $982.1M-18.3% | $1.2B-10.1% | $1.3B-44.0% | $2.4B+20.0% | $2.0B+13.2% | $1.8B+13.2% | $1.6B+9.2% | $1.4B |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $730.5M+32.4% | $551.8M+4.0% | $530.5M-46.5% | $992.2M+61.1% | $615.8M+19.7% | $514.3M+21.1% | $424.6M-42.4% | $736.5M |
| Goodwill | $1.1B+9.3% | $1.0B+0.7% | $994.5M+138.1% | $417.7M0.0% | $417.7M0.0% | $417.7M+0.2% | $417.0M0.0% | $417.0M |
| Total Liabilities | $4.7B+3.8% | $4.6B+0.8% | $4.5B-2.2% | $4.6B+30.7% | $3.5B+4.0% | $3.4B+3.6% | $3.3B-4.4% | $3.4B |
| Current Liabilities | $2.5B+6.8% | $2.3B+1.5% | $2.3B-5.1% | $2.4B-23.3% | $3.2B+3.9% | $3.0B+2.9% | $3.0B-4.8% | $3.1B |
| Long-Term Debt | N/A | N/A | N/A | N/A | $1.1B+0.1% | $1.1B+0.1% | $1.1B+0.3% | $1.1B |
| Total Equity | $2.4B+7.8% | $2.2B+10.8% | $2.0B+10.2% | $1.8B-0.3% | $1.8B+12.3% | $1.6B+12.5% | $1.4B+12.1% | $1.3B |
| Retained Earnings | -$1.2B-1.1% | -$1.2B-2.9% | -$1.2B-1.0% | -$1.2B-1.5% | -$1.2B-0.4% | -$1.2B-0.7% | -$1.2B-1.0% | -$1.1B |
ZS Cash Flow Statement
| Metric | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $198.0M-3.0% | $204.1M-54.5% | $448.3M+78.9% | $250.6M+18.7% | $211.1M+17.6% | $179.4M-45.8% | $331.3M+62.8% | $203.6M |
| Capital Expenditures | $42.4M+138.8% | $17.8M+2.6% | $17.3M-71.2% | $60.0M-16.8% | $72.2M+380.5% | $15.0M-11.8% | $17.0M-65.5% | $49.4M |
| Free Cash Flow | $155.6M-16.5% | $186.3M-56.8% | $431.0M+126.2% | $190.6M+37.2% | $138.9M-15.5% | $164.4M-47.7% | $314.3M+103.9% | $154.2M |
| Investing Cash Flow | -$418.7M-16.0% | -$360.9M+76.0% | -$1.5B-506.8% | -$247.6M-1240.8% | $21.7M+4089.6% | $518K+100.3% | -$201.7M-171.8% | -$74.2M |
| Financing Cash Flow | $0-100.0% | $21.4M+589.5% | $3.1M-99.2% | $395.1M+99125.3% | -$399K-101.6% | $24.9M+2698.9% | $890K-97.4% | $34.5M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
ZS Financial Ratios
| Metric | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 77.3%+0.8pp | 76.5%0.0pp | 76.6%+0.5pp | 76.0%-1.0pp | 77.0%-0.1pp | 77.1%-0.4pp | 77.5%-0.6pp | 78.0% |
| Operating Margin | -3.5%+2.9pp | -6.3%-1.7pp | -4.6%-0.1pp | -4.5%-0.7pp | -3.8%+2.5pp | -6.2%-1.3pp | -4.9%-0.3pp | -4.5% |
| Net Margin | -1.6%+2.6pp | -4.2%-2.7pp | -1.5%+1.0pp | -2.4%-1.8pp | -0.6%+0.6pp | -1.2%+0.7pp | -1.9%+0.6pp | -2.5% |
| Return on Equity | -0.6%+1.0pp | -1.6%-1.0pp | -0.6%+0.4pp | -1.0%-0.7pp | -0.2%+0.2pp | -0.5%+0.4pp | -0.8%+0.3pp | -1.2% |
| Return on Assets | -0.2%+0.3pp | -0.5%-0.3pp | -0.2%+0.1pp | -0.3%-0.2pp | -0.1%+0.1pp | -0.1%+0.1pp | -0.3%+0.1pp | -0.3% |
| Current Ratio | 1.86-0.0 | 1.90+0.1 | 1.82-0.2 | 2.01+0.8 | 1.24+0.0 | 1.20+0.1 | 1.15+0.1 | 1.09 |
| Debt-to-Equity | 2.00-0.1 | 2.08-0.2 | 2.28-0.3 | 2.57+1.9 | 0.64-0.1 | 0.71-0.1 | 0.80-0.1 | 0.90 |
| FCF Margin | 18.3%-4.5pp | 22.8%-31.8pp | 54.7%+28.2pp | 26.5%+6.0pp | 20.5%-4.9pp | 25.4%-24.7pp | 50.0%+24.0pp | 26.0% |
Similar Companies
Frequently Asked Questions
What is Zscaler's annual revenue?
Zscaler (ZS) reported $2.7B in total revenue for fiscal year 2025. This represents a 23.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Zscaler's revenue growing?
Zscaler (ZS) revenue grew by 23.3% year-over-year, from $2.2B to $2.7B in fiscal year 2025.
Is Zscaler profitable?
No, Zscaler (ZS) reported a net income of -$41.5M in fiscal year 2025, with a net profit margin of -1.6%.
What is Zscaler's gross margin?
Zscaler (ZS) had a gross margin of 76.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Zscaler's operating margin?
Zscaler (ZS) had an operating margin of -4.8% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Zscaler's net profit margin?
Zscaler (ZS) had a net profit margin of -1.6% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Zscaler's return on equity (ROE)?
Zscaler (ZS) has a return on equity of -2.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Zscaler's free cash flow?
Zscaler (ZS) generated $808.2M in free cash flow during fiscal year 2025. This represents a 27.2% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Zscaler's operating cash flow?
Zscaler (ZS) generated $972.5M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Zscaler's total assets?
Zscaler (ZS) had $6.5B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Zscaler's capital expenditures?
Zscaler (ZS) invested $164.3M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Zscaler spend on research and development?
Zscaler (ZS) invested $672.5M in research and development during fiscal year 2025.
What is Zscaler's current ratio?
Zscaler (ZS) had a current ratio of 1.82 as of fiscal year 2025, which is generally considered healthy.
What is Zscaler's debt-to-equity ratio?
Zscaler (ZS) had a debt-to-equity ratio of 2.28 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Zscaler's return on assets (ROA)?
Zscaler (ZS) had a return on assets of -0.6% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Zscaler's Altman Z-Score?
Zscaler (ZS) has an Altman Z-Score of 3.49, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Zscaler's Piotroski F-Score?
Zscaler (ZS) has a Piotroski F-Score of 4 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Zscaler's earnings high quality?
Zscaler (ZS) has an earnings quality ratio of -23.45x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Zscaler cover its interest payments?
Zscaler (ZS) has an interest coverage ratio of -13.5x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Zscaler?
Zscaler (ZS) scores 54 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.