Zscaler, Inc.'s Stock Analysis

Zscaler Reports Q4 and Fiscal Year 2025 Financial Results

Zscaler, Inc. announced its financial results for the fourth quarter and fiscal year ended July 31, 2025, highlighting a 21% year-over-year revenue growth to $719.2 million and a 22% increase in Annual Recurring Revenue (ARR) to $3,015 million. The company reported a GAAP net loss of $17.6 million, compared to a loss of $14.9 million in the same quarter last year, while non-GAAP net income rose to $146.7 million from $115.8 million. Cash flows from operations were $250.6 million, representing 35% of revenue, and free cash flow was $171.9 million, or 24% of revenue, indicating a stable cash generation capacity.

For the full fiscal year 2025, Zscaler achieved a revenue of $2,673.1 million, up 23% from the previous year. The GAAP net loss for the year was $41.5 million, an improvement from the $57.7 million loss in fiscal 2024, while non-GAAP net income increased to $534.8 million from $414.6 million. The company also reported strong cash reserves of $3,572.4 million as of July 31, 2025, following the issuance of convertible senior notes. Zscaler anticipates revenue for the first quarter of fiscal 2026 to be between $772 million and $774 million, with an expected non-GAAP net income per share of approximately $0.85 to $0.86.

Sep 02, 2025 16:06:52

Zscaler Issues $1.725 Billion in Convertible Senior Notes

Zscaler, Inc. has issued $1.725 billion in 0.00% Convertible Senior Notes due July 15, 2028, through an Indenture with U.S. Bank Trust Company. The net proceeds from this offering are expected to be approximately $1.70 billion after expenses, with about $197 million allocated for capped call transactions. The remainder will be used for general corporate purposes, including working capital and potential acquisitions. The Notes can be converted into cash, shares, or a combination, under specific conditions, and holders may require Zscaler to repurchase the Notes at a fundamental change price under certain circumstances.

The Notes rank senior in payment to subordinated indebtedness and are unsecured obligations of Zscaler. They are convertible into common stock at an initial rate of 2.2752 shares per $1,000 principal amount, reflecting a conversion price of approximately $439.52 per share. Zscaler has also entered into capped call transactions to mitigate potential dilution upon conversion. The offering was conducted privately under Rule 144A, and the securities are not registered under the Securities Act, meaning they cannot be sold in the U.S. without registration or an exemption.

Jul 03, 2025 16:03:45

Zscaler Plans $1.5 Billion Convertible Notes Offering

Zscaler, Inc. has announced its intention to offer $1.5 billion of convertible senior notes due in 2028, aimed at qualified institutional buyers. The company may also grant initial purchasers an option to buy an additional $225 million of notes. These notes will be unsecured obligations of Zscaler, accruing interest semiannually and convertible into cash, common stock, or a combination of both under certain conditions. The proceeds from the offering will be used for capped call transactions and general corporate purposes, including working capital and potential acquisitions.

The offering is subject to market conditions, and there is no guarantee on its completion or the final terms. Zscaler is expected to enter into capped call transactions to mitigate potential dilution from the conversion of the notes. Additionally, the initial purchasers may engage in activities that could influence the market price of Zscaler’s common stock or the notes, particularly around the time of pricing and conversion. The notes and the underlying shares have not been registered under the Securities Act and are being offered under Rule 144A.

Jul 03, 2025 16:03:45

Zscaler Reports Increased Revenue but GAAP Loss in Q3 2025

Zscaler, Inc. reported its financial results for the third quarter of fiscal 2025, showing a revenue increase of 23% year-over-year, reaching $678.0 million. Calculated billings also grew by 25% to $784.5 million, and deferred revenue rose by 26% to $1,985.0 million. However, the company experienced a GAAP net loss of $4.1 million, contrasting with a GAAP net income of $19.1 million from the same quarter last year. Non-GAAP net income increased to $136.8 million from $113.0 million year-over-year, with non-GAAP net income per share rising to $0.84 from $0.71 in the prior year quarter.

In addition to financial results, Zscaler announced the appointment of Kevin Rubin as Chief Financial Officer and Raj Judge to the Board of Directors. The company signed a definitive agreement to acquire Red Canary, enhancing its AI-powered security capabilities. Zscaler was recognized as a leader in multiple industry assessments, including the Gartner Magic Quadrant for Security Service Edge. The company also introduced new offerings, such as Zscaler Asset Exposure Management, aimed at improving security operations for its clients.

May 29, 2025 16:08:58

Raj Judge Appointed to Zscaler's Board and Executive Role

Zscaler, Inc. has announced the appointment of Raj Judge to its Board of Directors and as Executive Vice President of Corporate Strategy and Ventures. In this role, Judge will oversee the company's growth strategy, business development, and venture investment initiatives aimed at reaching $5 billion in annual recurring revenue. Judge brings over 25 years of experience in technology law and venture capital, having previously served as Senior Partner at Wilson Sonsini. His expertise is expected to contribute to Zscaler's strategic growth and innovation efforts.

As part of his responsibilities, Judge will focus on identifying key growth and investment opportunities while collaborating with stakeholders to enhance Zscaler's platform for its customers. His appointment signifies Zscaler's commitment to advancing its corporate strategy and long-term vision. The company aims to leverage Judge's background to drive new initiatives and investments that will facilitate its continued success in the cloud security market.

May 23, 2025 16:41:11

Zscaler Reports 23% Revenue Growth and Reduced Net Loss

Zscaler's revenue for the second quarter of fiscal 2025 reached $647.9 million, marking a 23% increase compared to the same quarter last year. The company also reported an 18% growth in calculated billings, totaling $742.7 million, and a significant rise in deferred revenue, which grew by 25% to $1,878.5 million. Additionally, the GAAP net loss decreased to $7.7 million from $28.5 million year-over-year, and non-GAAP net income increased to $127.1 million from $99.4 million in the previous year. Cash provided by operations remained stable at 27% of revenue, with free cash flow also showing improvement.

On the negative side, Zscaler reported a GAAP loss from operations of $40.1 million, although this was an improvement from the $45.5 million loss in the same quarter of the previous year. The company continues to experience a net loss per share of $0.05, which is an improvement from $0.19 in the prior year. Despite these losses, the company is investing heavily in research and development, which may impact short-term profitability. The overall operating expenses increased year-over-year, reflecting ongoing investments in sales and marketing, as well as R&D.

Mar 05, 2025 16:06:30

Zscaler Reports $628 Million Revenue in Q1 Fiscal 2025

Zscaler, Inc. reported a 26% increase in revenue year-over-year, reaching $628 million for the first quarter of fiscal 2025. The company also saw a significant rise in non-GAAP net income, which was $124.3 million, compared to $86.4 million in the same quarter last year. Additionally, deferred revenue grew by 27% year-over-year to $1.78 billion, indicating a positive trend in customer engagement and sales execution. The cash flow from operations remained stable at $331.3 million, representing 53% of revenue, consistent with the prior year.

On the downside, Zscaler reported a GAAP net loss of $12.1 million, although this was an improvement from the $33.5 million loss in the same quarter the previous year. The company also experienced a GAAP loss from operations of $30.7 million, which, while better than the prior year's loss of $46.1 million, still indicates challenges in managing operational costs. Furthermore, the increase in operating expenses, particularly in sales and marketing, raises concerns about the sustainability of profits in the long term.

Dec 02, 2024 16:08:35

Zscaler Reports Strong Growth in Q4 Fiscal 2024

Zscaler, Inc. announced impressive financial results for the fourth quarter of fiscal 2024, with revenue increasing by 30% year-over-year to $592.9 million. The company also reported a significant rise in calculated billings and deferred revenue, indicating strong customer demand for its cloud security services. Notably, Zscaler achieved a GAAP net loss of $14.9 million, which is an improvement from a loss of $30.7 million in the same quarter last year. The company highlighted a record-breaking milestone of processing over half a trillion transactions daily through its Zero Trust Exchange platform, showcasing its leadership in the cloud security market. Additionally, the cash flow from operations increased significantly, further strengthening its financial position.

However, despite the positive growth metrics, Zscaler continues to operate at a net loss, although the losses are narrowing. The GAAP loss from operations was $27 million, showing a reduction from the previous year, but the company still faces challenges in achieving profitability. The report also noted ongoing investments in research and development and sales, which may impact short-term profitability as Zscaler focuses on innovation and expanding its market presence. Overall, while the company demonstrates strong growth and operational cash flow, it remains to be seen how quickly it can transition to sustained profitability.

Sep 03, 2024 16:07:11

Zscaler Reports Strong Q3 Fiscal 2024 Results

Zscaler's Q3 fiscal 2024 shows revenue growth of 32% YoY, with positive net income. Acquisitions and new services enhance AI capabilities. The company remains a leader in security solutions. Financial outlook for Q4 and full fiscal year 2024 is optimistic, with expectations of continued growth in revenue and net income.

May 30, 2024 16:06:37

Zscaler Reports Strong Q2 Results and Growth in Fiscal 2024

Zscaler's Q2 revenue up 35% YoY to $525M, with calculated billings and deferred revenue also showing growth. GAAP net loss decreased, while non-GAAP net income increased significantly. Company introduced innovative security solutions and achieved recognition in the industry. Financially, positive cash flow and increased cash reserves were noted. Future outlook includes revenue growth and strong financial performance expectations for the third quarter and full fiscal year 2024.

Feb 29, 2024 16:07:27