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ZS · Zscaler

9 filings

10-K

ZS 10-K Annual Reports

Zscaler - 9 annual reports

Filing record · 2018–202610-K910-Q258-K62

2026
Zscaler Annual Report, Year Ended Jul 31, 2026
Zscaler, Inc. (ZS) reported fiscal 2026 (year ended July 31, 2026) revenue of $3,352.5 million, up from $2,673.1 million in fiscal 2025 and $2,167.8 million in fiscal 2024, with a net loss of $63.2 million compared with $41.5 million in fiscal 2025 and $57.7 million in fiscal 2024. Revenue growth was 25% in fiscal 2026, driven primarily by additional subscriptions from existing customers ($474.6 million of the increase) and new customers ($204.8 million). GAAP gross margin was 77%, and GAAP operating margin was (4)%, while non-GAAP operating margin was 23%. Free cash flow was $779.1 million, or 23% of revenue, and net cash from operating activities was $1,129.7 million. Annual recurring revenue was $3,771 million as of July 31, 2026, versus $3,015 million a year earlier, and the company had approximately 11,000 customers. The company spent heavily on growth and acquisitions during the year. It acquired Red Canary, Symmetry Systems, SquareX and SPLXAI, with payments for business acquisitions of $918.1 million in fiscal 2026. Stock-based compensation expense was $821.9 million, and research and development expense rose to $903.4 million. Cash, cash equivalents and short-term investments totaled $3,474.2 million at year end, against $1,725.0 million of 0.0% convertible senior notes due July 2028 with a fair value of $1,601.8 million. The company disclosed that on September 1, 2026 it committed to a workforce reduction of approximately 3%, with non-recurring charges of about $30.0 million to $33.0 million, mostly in the first half of fiscal 2027. Remaining performance obligations were $7,365.4 million, with 45% expected to be recognized over the next 12 months. Channel partners generated 85% of revenue in fiscal 2026. The company also noted a full valuation allowance against U.S. federal and state deferred tax assets, with a reasonable possibility of releasing a significant portion within the next 12 months, which could reduce income tax expense.
Sep 3, 2026
2025
Zscaler Annual Report, Year Ended Jul 31, 2025
Zscaler, Inc. (ZS) reported fiscal 2025 (year ended July 31, 2025) revenue of $2,673.1 million, up 23% from $2,167.8 million in fiscal 2024, with a net loss of $41.5 million, narrowing from $57.7 million. Gross margin was 77% and GAAP operating margin was (5)%, while non-GAAP operating margin was 22%. Free cash flow was $726.7 million, or a 27% margin. Calculated billings rose 24% to $3,246.2 million, and the company says it will stop reporting calculated billings starting in fiscal 2026 in favor of ARR. Dollar-based net retention was 114%, down from 116%. The company had over 9,400 customers, including approximately 40% of the Forbes Global 2000 and over 45% of Fortune 500 companies. The company issued $1,725.0 million of 0.0% Convertible Senior Notes due 2028 in July 2025 and used the proceeds, along with cash, to repay $1,150.0 million of 2025 Notes at maturity. It ended the year with cash, cash equivalents and short-term investments of $3,572.4 million and an accumulated deficit of $1,189.6 million. The filing also describes an August 1, 2025 acquisition of Red Canary, Inc. for $675.0 million in cash, which adds managed detection and response capabilities to its Security Operations offerings. The company states it expects to continue incurring net losses, and risk factors cover channel partner concentration (top five partners were 28% of revenue), competition, and a 41.4% insider ownership concentration.
Sep 11, 2025
2024
Zscaler Annual Report, Year Ended Jul 31, 2024
Zscaler, Inc. (ZS) filed its Form 10-K for the fiscal year ended July 31, 2024 on September 12, 2024. The company, which describes itself as a cloud security company operating the Zscaler Zero Trust Exchange platform across Zscaler for Users, Workloads and IoT/OT, reported revenue of $2,167.8 million for fiscal 2024, up from $1,617.0 million in fiscal 2023, with revenue growth of 34%. Net loss narrowed to $57.7 million from $202.3 million in fiscal 2023, and the company reported a GAAP loss from operations of $121.5 million, while non-GAAP income from operations was $442.2 million, or a 20% non-GAAP operating margin. Free cash flow rose to $585.0 million from $333.6 million, and calculated billings increased $587.6 million, or 29%, to $2,623.1 million. The company had 8,650 customers as of July 31, 2024, approximately 35% of the Forbes Global 2000, and a dollar-based net retention rate of 115%, down from 121% in the prior year. Remaining performance obligations totaled $4,417.6 million, with 48% expected to be recognized over the next 12 months. Cash, cash equivalents and short-term investments totaled $2,409.7 million, against $1,150.0 million of 0.125% convertible senior notes due July 1, 2025, which are now classified as current liabilities; the company stated its current intent is to settle the principal in cash. The filing also highlights ongoing risks, including the company's history of net losses and accumulated deficit of $1,148.1 million, reliance on channel partners (top five partners represented 25% of fiscal 2024 revenue), international exposure (approximately 50% of revenue from outside the United States), and concentrated insider ownership, with executive officers, directors and 5% holders together beneficially owning approximately 43.2% of common stock.
Sep 12, 2024
2023
Zscaler Annual Report, Year Ended Jul 31, 2023
Zscaler, Inc. (ZS) reported its fiscal 2023 annual results for the year ended July 31, 2023, with revenue of $1,617.0 million, up from $1,090.9 million in fiscal 2022 and $673.1 million in fiscal 2021, and a net loss of $202.3 million, compared with net losses of $390.3 million in fiscal 2022 and $262.0 million in fiscal 2021. Gross margin held at 78%, and loss from operations narrowed to $234.6 million from $327.4 million. Interest income rose to $60.5 million, while interest expense fell to $6.5 million after the adoption of ASU 2020-06. Operating cash flow was $462.3 million, and free cash flow was $333.6 million, or 21% of revenue. The company ended the year with cash, cash equivalents and short-term investments of $2,100.2 million, against $1,150.0 million of 0.125% Convertible Senior Notes due 2025. The filing highlights growth driven by subscriptions to additional users and the addition of new customers, with more than 7,700 customers including over 640 of the Forbes Global 2000. Dollar-based net retention was 121% for the trailing 12 months ended July 31, 2023, versus above 125% a year earlier. Calculated billings rose $554.0 million, or 37%, to $2,035.5 million. Management noted that customers are taking longer to make purchasing decisions and seeking more approvals for large deals amid high inflation and macroeconomic uncertainty. Remaining performance obligations totaled $3,513.6 million, with 49% expected to be recognized over the next 12 months. Risk factors emphasize the company's history of net losses, intense competition from legacy appliance vendors and larger rivals, dependence on channel partners (top five partners represented 26% of fiscal 2023 revenue), and the concentration of ownership, with executive officers, directors and 5% holders together beneficially owning approximately 44.8% of common stock.
Sep 14, 2023
2022
Zscaler Annual Report, Year Ended Jul 31, 2022
Zscaler, Inc. filed its Form 10-K for the fiscal year ended July 31, 2022, reporting revenue of $1,090.9 million in fiscal 2022, up from $673.1 million in fiscal 2021 and $431.3 million in fiscal 2020, representing year-over-year revenue growth of 56% and 62%. The company remains unprofitable, with a net loss of $390.3 million in fiscal 2022 (compared with $262.0 million in fiscal 2021 and $115.1 million in fiscal 2020) and an accumulated deficit of $991.9 million. Management states it expects to keep incurring net losses and intends to prioritize long-term growth over near-term profitability, with operating expenses expected to keep rising in absolute dollars. Gross margin was steady at 78%, and non-GAAP operating margin was 10%, with free cash flow of $231.3 million. The balance sheet and cash flow profile are stronger than the GAAP loss suggests. Cash, cash equivalents and short-term investments totaled $1,731.3 million at July 31, 2022, and operating cash flow was $321.9 million. Deferred revenue reached $1,021.1 million, and remaining performance obligations were $2,607.2 million, with 49% expected to be recognized over the next 12 months. Against this, the company carries $1,150.0 million of 0.125% Convertible Senior Notes due 2025, and management states it intends to settle the principal in cash. Customer metrics show over 6,700 customers, including over 600 of the Forbes Global 2000, and a dollar-based net retention rate above 125%. Investors should also note concentration and governance factors described in the filing. Sales through the top five channel partners represented 28% of revenue in fiscal 2022, and insiders together beneficially owned approximately 50.5% of common stock, with Jay Chaudhry and affiliates holding approximately 18.8%. The filing also discloses that adoption of ASU 2020-06 on August 1, 2022 will increase the carrying amount of the convertible notes by $169.9 million and reduce additional paid-in capital by $273.7 million.
Sep 15, 2022
2021
Zscaler Annual Report, Year Ended Jul 31, 2021
Zscaler, Inc. (ZS) reported fiscal 2021 (year ended July 31, 2021) revenue of $673.1 million, up from $431.3 million in fiscal 2020 and $302.8 million in fiscal 2019, representing year-over-year growth of 56% and 42%, respectively. The company remained unprofitable, with a net loss of $262.0 million in fiscal 2021, compared with $115.1 million in fiscal 2020 and $28.7 million in fiscal 2019. Management states it expects to continue incurring net losses for the foreseeable future as it invests in sales and marketing, research and development, and public-company compliance. Non-GAAP income from operations was $78.0 million, a 12% non-GAAP operating margin, while GAAP loss from operations was $207.8 million. Net cash provided by operating activities was $202.0 million and free cash flow was $143.7 million. The company reported over 5,600 customers, including more than 500 of the Forbes Global 2000, and a dollar-based net retention rate of 128% for the trailing 12 months ended July 31, 2021. Approximately 51% of revenue came from customers outside the United States. Channel partners accounted for 94% of fiscal 2021 revenue, and the top five channel partners represented 34% of revenue. Calculated billings rose $384.1 million, or 70%, to $933.9 million. Deferred revenue reached $630.6 million, and cash, cash equivalents and short-term investments totaled $1,502.6 million at July 31, 2021. The balance sheet carries $1,150.0 million of 0.125% Convertible Senior Notes due 2025, issued in June 2020. The conversion condition was met in the quarter ended July 31, 2021, making the notes convertible from August 1, 2021 through October 31, 2021. The company intends to settle principal in cash. Accumulated deficit stood at $601.6 million. Key risks disclosed include competition from larger vendors, dependence on channel partners, COVID-19 effects (particularly in India), and the cash and dilution implications of the convertible notes.
Sep 16, 2021
2020
Zscaler Annual Report, Year Ended Jul 31, 2020
Zscaler, Inc. filed its Form 10-K for the fiscal year ended July 31, 2020 on September 17, 2020. Revenue grew to $431.3 million in fiscal 2020 from $302.8 million in fiscal 2019, with the filing stating growth of 42%. The company reported a net loss of $115.1 million for fiscal 2020, compared with $28.7 million in fiscal 2019, and an accumulated deficit of $339.6 million. Management states it expects to keep incurring net losses for the foreseeable future and intends to keep prioritizing growth investment over near-term profitability. Non-GAAP income from operations was $29.9 million, against a GAAP loss from operations of $114.0 million. The balance sheet strengthened significantly during the year. In June 2020 the company issued $1,150.0 million of 0.125% Convertible Senior Notes due 2025, with net proceeds of $1,130.5 million, and used $145.2 million of those proceeds to buy capped calls. Cash, cash equivalents and short-term investments totaled $1,370.6 million at July 31, 2020. Operating cash flow was $79.3 million and free cash flow was $27.5 million. Deferred revenue reached $369.8 million, and the filing reports calculated billings of $549.8 million, up $159.8 million, or 41%, from fiscal 2019. Customer metrics were also strong. The company had over 4,500 customers, including over 450 of the Forbes Global 2000, and a dollar-based net retention rate of 120% for the trailing 12 months ended July 31, 2020. Channel partners generated 96% of revenue in fiscal 2020, and the top five channel partners and their affiliates accounted for 40% of revenue. Gross margin declined to 78% from 80%, mainly because of higher public cloud costs used to handle increased ZPA traffic when employees began working from home in March 2020.
Sep 17, 2020
2019
Zscaler Annual Report, Year Ended Jul 31, 2019
Zscaler, Inc. (ZS) reported fiscal 2019 (year ended July 31, 2019) revenue of $302.8 million, up from $190.2 million in fiscal 2018, a 59% increase as stated in the filing. The company remained unprofitable, with a net loss of $28.7 million compared with $33.6 million in fiscal 2018, and an accumulated deficit of $224.5 million. Operating cash flow turned positive at $58.0 million, and free cash flow was $29.3 million, or a 10% free cash flow margin. Non-GAAP income from operations was $25.1 million, an 8% non-GAAP operating margin, compared with a non-GAAP operating loss in fiscal 2018. Growth was driven by customer expansion and new logos. Dollar-based net retention was 118% for the trailing 12 months ended July 31, 2019, and the customer count rose to over 3,900, including over 400 Forbes Global 2000 companies. Calculated billings grew to $390.0 million. Channel partners generated 96% of revenue in fiscal 2019, and the top five channel partners accounted for 42% of revenue. Customers outside the United States represented 51% of revenue. Remaining performance obligations totaled $554.2 million, with 55% expected to be recognized over the next 12 months. Key risks disclosed include ongoing patent litigation with Symantec Corporation, for which the company has recorded no liability because a loss is not deemed probable, and the Finjan settlement, which resulted in a $4.1 million incremental expense. Insiders beneficially owned approximately 50.9% of common stock, with Jay Chaudhry holding about 21.1%. The company also disclosed a new San Jose headquarters lease with total rent of approximately $37.3 million over its initial term, and it expects to continue incurring net losses.
Sep 18, 2019
2018
Zscaler Annual Report, Year Ended Jul 31, 2018
Zscaler, Inc. (Nasdaq: ZS) filed its Form 10-K for fiscal 2018, the year ended July 31, 2018, reporting revenue of $190.2 million, up from $125.7 million in fiscal 2017, a 51% increase. The company remains unprofitable, with a net loss of $33.6 million in fiscal 2018 compared with $35.5 million in fiscal 2017, and an accumulated deficit of $196.1 million as of July 31, 2018. Gross margin improved to 80% from 78%, and non-GAAP operating margin improved to (8)% from (15)%. The company describes its cloud security platform, ZIA and ZPA, as processing approximately 50 billion internet requests per day across more than 100 data centers, serving over 3,250 customers including more than 300 of the Forbes Global 2000. The company completed its IPO in March 2018, selling 13,800,000 shares at $16.00 per share for net proceeds of $205.3 million. Cash, cash equivalents and short-term investments totaled $298.5 million at July 31, 2018, and operating cash flow was positive at $17.3 million, with free cash flow of $2.1 million. Deferred revenue rose to $164.0 million, and remaining performance obligations were $397.9 million, of which 53% is expected to be recognized over the next 12 months. Investors should weigh the company's strong growth, improving margins and dollar-based net retention rate of 117% against ongoing losses, concentration of ownership (insiders and affiliates beneficially owning approximately 60%), reliance on channel partners that generated 92% of fiscal 2018 revenue, and pending patent litigation with Symantec and Finjan.
Sep 13, 2018