Zscaler Inc.
Revenue
$850M
Net Income
$-14M
Zscaler Inc.
Revenue
$850M
Net Income
$-14M
Zscaler Inc.
CIK: 0001713683
Earnings Analysis
Analyzed 6 of 12 reports
Performance Summary - Q1 2026neutral (53)not_provided
Reality-Based Sentiment Analysisneutral53/100
Based on actual market data, not just management spin. Weighted score: 10% management tone + 40% earnings beat/miss + 30% price action + 20% guidance accuracy.
Financial Performance Trend
Overall Analysis & Outlook
Over the past 5 quarters, Zscaler Inc. has been showing mixed sentiment with stable guidance. Revenue has grown 71.2% during this period. The latest quarter shows neutral sentiment with neutral tone from management.
Latest Quarter Highlights:
Zscaler reported Q1 FY2026 revenue of $850.5M (+25.5% YoY) but posted a net loss of $13.9M as operating expenses outpaced gross profit gains. The company generated strong operating cash flow of $850.4M and deferred revenue of $2.48B, indicating healthy subscription demand, yet undertook a restructuring in Q2 FY2026 and continued aggressive M&A (Red Canary, SquareX, SPLXAI acquisitions totaling $804.8M) while remaining unprofitable.
Detailed Quarterly Reports
In-depth analysis of each quarter's earnings filing
Q1 2026
10-Q • Filed 5/26/2026
Summary
Zscaler reported Q1 FY2026 revenue of $850.5M (+25.5% YoY) but posted a net loss of $13.9M as operating expenses outpaced gross profit gains. The company generated strong operating cash flow of $850.4M and deferred revenue of $2.48B, indicating healthy subscription demand, yet undertook a restructuring in Q2 FY2026 and continued aggressive M&A (Red Canary, SquareX, SPLXAI acquisitions totaling $804.8M) while remaining unprofitable.
Revenue
$850.475M
Net Income
$-13.883M
Guidance
Tone
Capex
$131.99M
Partnerships
Key Quotes
"We expect we will continue to incur net losses for the foreseeable future, as we continue to invest in our sales and marketing organization to maximize our market opportunity, to invest in research and development efforts to enhance the functionality of our cloud platform"
"The emergence and rapid adoption of AI is revolutionizing the transformational impact of cloud adoption and mobility. AI is fundamentally changing how organizations operate, creating new cybersecurity threats and IT challenges, but also the opportunity to use AI to counter cybersecurity threats and improve IT operations."
"We continue to see customer scrutiny of and elongated approval processes for transactions, particularly larger deals, as customers continue to carefully consider purchasing decisions and are requiring multiple approvals for large expenditures in response to the uncertain economic environment."
Q3 2025
10-Q • Filed 11/25/2025
Summary
Zscaler reported Q3 FY2026 revenue of $788.1M (+25% YoY) with net loss of $11.6M, demonstrating strong top-line growth but continued near-breakeven profitability. The company made two significant acquisitions (Red Canary for $651.4M and SPLX for $40.6M) to strengthen AI Security and SecOps capabilities, while maintaining healthy cash generation with $448.3M operating cash flow. Dollar-based net retention rate improved to 115% from 114%, indicating strong land-and-expand execution despite macro headwinds affecting deal timing.
Revenue
$788.112M
Net Income
$-11.615M
Guidance
Tone
Capex
$34.984M
Partnerships
Key Quotes
"For the three months ended October 31, 2025 and 2024, our revenue was $788.1 million and $628.0 million, respectively."
"For the trailing 12 months ended October 31, 2025 and 2024, the dollar-based net retention rate was 115% and 114%, respectively."
"We continue to see customer scrutiny of and elongated approval processes for transactions, particularly larger deals, as customers continue to carefully consider purchasing decisions and are requiring multiple approvals for large expenditures in response to the uncertain economic environment."
Q1 2025
10-Q • Filed 5/29/2025
Summary
Zscaler delivered Q1 FY2025 revenue of $678.0 million (+22.6% YoY) but posted a small net loss of $4.1 million (vs. $19.1 million profit in Q1 FY2024), driven by elevated operating expenses particularly in sales & marketing (+19.8% YoY) and R&D (+35.9% YoY). The company maintains strong deferred revenue of $1.98 billion and generated positive operating cash flow of $721.8 million YTD, though profitability deteriorated as the company aggressively invests in growth despite macroeconomic headwinds and elongated deal cycles.
Revenue
$678.034M
Net Income
$-4.125M
Guidance
Tone
Capex
$167.077M
Partnerships
Key Quotes
"We continue to see customer scrutiny of and elongated approval processes for transactions, particularly larger deals, as customers continue to carefully consider purchasing decisions and are requiring multiple approvals for large expenditures in response to the uncertain economic environment."
"We expect we will continue to incur net losses for the foreseeable future, as we continue to invest in our sales and marketing organization to maximize our market opportunity, to invest in research and development efforts to enhance the functionality of our cloud platform."
"As of July 31, 2024, we had approximately 35% of the Forbes Global 2000 as customers."
Q3 2024
10-Q • Filed 12/5/2024
Summary
Zscaler reported Q3 2024 revenue of $628.0 million, up 26% YoY, with improving profitability as net loss narrowed to $12.1 million from $33.5 million in Q3 2023. Dollar-based net retention rate declined to 114% from 120% YoY, reflecting challenging macro conditions and elongated sales cycles for large deals, though calculated billings grew 13% and free cash flow remained strong at $291.9 million (46% margin). The company is making significant infrastructure investments with two major cloud provider commitments totaling $400 million over five years, signaling confidence in growth but also acknowledging the need for continued capacity scaling.
Revenue
$627.955M
Net Income
$-12.051M
Guidance
Tone
Capex
$39.454M(-18% YoY)
Partnerships
Key Quotes
"We continue to see customer scrutiny of and elongated approval processes for transactions, particularly larger deals, as customers continue to scrutinize purchasing decisions and are requiring multiple approvals for large expenditures in response to the uncertain economic environment."
"Dollar-based net retention rate was 114% and 120%, respectively [for three months ended October 31, 2024 and 2023]"
"As of July 31, 2024, we had approximately 35% of the Forbes Global 2000 as customers"
Q1 2024
10-Q • Filed 6/7/2024
Summary
Zscaler delivered Q1 FY2024 revenue of $553.2M (32% YoY growth) with net income of $19.1M versus a $46M loss in the prior year, demonstrating significant operational improvement driven by strong subscription demand and deferred revenue growth. The company maintained healthy cash generation ($576M operating cash flow for nine months) while aggressively investing in acquisitions ($362M for Avalor and Airgap) and infrastructure capex, though no forward guidance was provided in this 10-Q filing.
Revenue
$553.201M
Net Income
$19.124M
Guidance
Tone
Capex
$127.657M
Key Quotes
"Our fiscal year ended July 31, 2023 is referred to as fiscal 2023 and our fiscal year ending July 31, 2024 is referred to as fiscal 2024."
"For the nine months ended April 30, 2024 and 2023, our revenue was $1,574.9 million and $1,161.9 million, respectively."
"We expect we will continue to incur net losses for the foreseeable future, as we continue to invest in our sales and marketing organization to take advantage of our market opportunity."
Q3 2023
10-Q • Filed 12/6/2023
Summary
Zscaler delivered Q3 FY2024 revenue of $496.7M (+39.7% YoY) with calculated billings growth of 34%, demonstrating strong top-line momentum despite macroeconomic headwinds. However, the company remains unprofitable with net losses of $33.5M, though cash generation is solid with free cash flow of $224.7M (+135% YoY). Management maintains cautious near-term outlook citing elongated sales cycles and customer procurement scrutiny, though deferred revenue of $1.4B and 120% net dollar retention rate indicate underlying business health.
Revenue
$496.703M
Net Income
$-33.483M
Guidance
Tone
Capex
$36.088M
Partnerships
Key Quotes
"We continue to see customer scrutiny of and elongated approval processes for transactions, particularly larger deals, as potential new customers continue to scrutinize purchasing decisions and are requiring multiple approvals for large expenditures in response to the challenging economic environment."
"For the trailing 12 months ended October 31, 2023 and 2022, the dollar-based net retention rate was 120% and above 125%, respectively."
"We expect we will continue to incur net losses for the foreseeable future, as we continue to invest in our sales and marketing organization to take advantage of our market opportunity, to invest in research and development efforts to enhance the functionality of our cloud platform."
Sector Comparison
How ZS performs vs Technology sector and Cybersecurity peers