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ZS

Zscaler, Inc.

ZS

Zscaler, Inc. • NASDAQ
$250.92 ▼ -0.42% (-1.05)
Market Cap $39.12 B
52w High $336.99
52w Low $164.78
Dividend Yield 0%
P/E -1003.68
Volume 2.87M
Outstanding Shares 155.91M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q1-2026 $788.112M ▲ $639.721M ▲ $-11.615M ▲ -1.474% ▲ $-0.07 ▲ $35.037M ▲
Q4-2025 $719.226M ▲ $579.228M ▲ $-17.578M ▼ -2.444% ▼ $-0.11 ▼ $34.698M ▼
Q3-2025 $678.034M ▲ $544.607M ▲ $-4.125M ▲ -0.608% ▲ $-0.027 ▲ $38.987M ▲
Q2-2025 $647.9M ▲ $536.471M ▲ $-7.724M ▲ -1.192% ▲ $-0.05 ▲ $14.477M ▼
Q1-2025 $627.955M $517.526M $-12.051M -1.919% $-0.079 $24.25M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q1-2026 $3.321B ▼ $6.503B ▲ $4.521B ▼ $1.982B ▲
Q4-2025 $3.572B ▲ $6.42B ▲ $4.621B ▲ $1.799B ▼
Q3-2025 $3.006B ▲ $5.34B ▲ $3.535B ▲ $1.805B ▲
Q2-2025 $2.88B ▲ $5.006B ▲ $3.399B ▲ $1.607B ▲
Q1-2025 $2.708B $4.709B $3.28B $1.429B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q1-2026 $-11.615M ▲ $448.28M ▲ $-1.502B ▼ $3.103M ▼ $-1.051B ▼ $413.296M ▲
Q4-2025 $-17.578M ▼ $250.604M ▲ $-247.582M ▼ $395.111M ▲ $398.133M ▲ $171.921M ▲
Q3-2025 $-4.125M ▲ $211.081M ▲ $21.702M ▲ $-399K ▼ $232.384M ▲ $119.463M ▼
Q2-2025 $-7.724M ▲ $179.433M ▼ $518K ▲ $24.91M ▲ $204.861M ▲ $143.428M ▼
Q1-2025 $-12.051M $331.335M $-201.66M $890K $130.565M $291.881M

Five-Year Company Overview

Income Statement

Income Statement Revenue has climbed steadily over the last five years, multiplying several times and showing that demand for Zscaler’s services remains strong. The company enjoys very healthy gross margins, which suggests its core business model is attractive and scalable. Despite this, Zscaler still reports accounting losses, mainly because it spends heavily on sales, marketing, and product development to fuel growth. The losses have narrowed noticeably over time, and profit measures that exclude some non‑cash items have already turned positive, indicating the business is moving toward a more profitable footing. One watchpoint is that operating losses have not improved in a straight line, reflecting ongoing investment intensity and some volatility in expense control.

Balance Sheet

Balance Sheet The balance sheet has strengthened meaningfully. Total assets have grown several times, driven largely by a much larger cash position. Equity has also expanded, which indicates that accumulated losses are being outweighed by capital raised and the value of assets built up over time. Debt has increased but remains manageable relative to the company’s size and cash holdings. Overall, Zscaler appears to have a solid financial cushion to keep investing in growth, handle downturns, and fund innovation, though it is still important that the move toward sustained profitability continues so the balance sheet does not become overly reliant on financing markets.

Cash Flow

Cash Flow Zscaler’s cash generation is a key bright spot. Operating cash flow has improved year after year, and free cash flow has been consistently positive and growing. This means that, even though the company shows accounting losses, the business brings in more cash than it spends after normal investments in its infrastructure. Capital spending needs are relatively modest compared with cash generated, which supports flexibility to invest in new products, expand the platform, or strengthen the balance sheet further. The pattern of rising free cash flow suggests the underlying economics of each dollar of revenue are improving over time.

Competitive Edge

Competitive Edge Zscaler holds a leading position in cloud-delivered security with its zero-trust, cloud-native architecture. Instead of relying on traditional hardware and network perimeters, it secures direct connections between users and applications, which aligns well with remote work, cloud migration, and modern IT architectures. Its large, globally distributed security cloud sees vast amounts of traffic, giving it a data advantage: more signals to train threat detection and AI models, which can improve protection for all customers. Deep integration into customers’ networks and security workflows creates high switching costs, making it painful and risky for clients to move away once Zscaler is in place. At the same time, the company operates in a fiercely competitive market with other large, well-funded cybersecurity and networking vendors pushing their own zero‑trust and cloud security offerings. Maintaining its lead will require Zscaler to keep innovating faster than these rivals and continuously prove superior performance and ease of use.

Innovation and R&D

Innovation and R&D Innovation is central to Zscaler’s strategy and is reflected in both its architecture and product roadmap. The Zero Trust Exchange is a purpose-built, cloud-native platform rather than a retrofit of legacy hardware, which gives it an architectural edge in scalability, performance, and global reach. The company has broadened its platform from core secure internet access and private application access into digital experience monitoring and cloud workload protection, aiming to be a comprehensive security layer for modern enterprises. It is pushing hard into AI, using huge volumes of security data to power threat detection, data classification, and automated policy management, as well as to secure new use cases like generative AI tools. The strategy appears to be “land and expand”: win customers with flagship products, then layer on additional services over time. This creates substantial growth potential within the existing customer base, but also requires sustained R&D spending and flawless execution to ensure new modules are truly differentiated and easy to adopt.

Summary

Zscaler is a high-growth cloud security company that has transitioned from a niche disruptor to a mainstream platform player. Its financial profile shows a business that is scaling rapidly, with strong margins and growing cash generation, but which is still in the late stages of moving from investment-driven losses toward consistent profitability. The balance sheet and cash flows provide a comfortable foundation for continued investment, while its cloud-native zero-trust platform, data advantage, and deep customer integration give it a meaningful competitive moat. However, the company operates in a fast-moving, crowded cybersecurity landscape, with ongoing pressure to innovate, defend its leadership position, and prove that growth can remain strong as it matures. Overall, Zscaler combines a strong strategic position and robust cash economics with the typical risks of a rapidly growing, still-not-fully-profitable technology platform in a highly competitive market.

NEWS

November 25, 2025 · 4:05 PM UTC

Zscaler Reports First Quarter Fiscal 2026 Financial Results

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November 20, 2025 · 8:00 AM UTC

Zscaler to Present at Upcoming Investor Conferences

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November 18, 2025 · 3:00 PM UTC

Zscaler Is a Proud Partner In The Microsoft Entra Agent ID Partner Ecosystem

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November 18, 2025 · 9:00 AM UTC

FireMon Expands Zero Trust Microsegmentation Coverage with Illumio, VMware NSX, and Zscaler

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November 5, 2025 · 3:01 AM UTC

Zscaler ThreatLabz Reveals 67% Jump in Android Malware and 40% of IoT Attacks Target Critical Industries and Hybrid Work

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