How did Zscaler perform in the fourth quarter of fiscal 2025?

Revenue was $719.2 million, up 21% year-over-year, and ARR grew 22% to $3,015 million. GAAP net loss was $17.6 million, compared with $14.9 million a year earlier, while non-GAAP net income was $146.7 million, up from $115.8 million.

What drove the change in the company's debt position?

In July 2025 Zscaler issued $1,725.0 million of convertible senior notes due 2028, with net cash proceeds of $1,700.0 million. It also fully repaid the $1,150.0 million principal of its 2025 notes, settling the premium by issuing 3.8 million new shares of common stock.

What is the company's guidance for fiscal 2026?

For full-year fiscal 2026, Zscaler expects ARR of $3.676 billion to $3.698 billion, revenue of approximately $3.265 billion to $3.284 billion, non-GAAP income from operations of $728 million to $736 million, and non-GAAP net income per share of $3.64 to $3.68. For the first quarter, it expects revenue of $772 million to $774 million.

How does the company's profitability differ between GAAP and non-GAAP measures?

For fiscal 2025, GAAP loss from operations was $128.5 million, while non-GAAP income from operations was $580.1 million. The non-GAAP figures exclude stock-based compensation and related payroll taxes, amortization of acquired intangibles, restructuring and other charges, and acquisition-related expenses.

How strong was cash generation in fiscal 2025?

Cash provided by operations was $972.5 million, or 36% of revenue, and free cash flow was $726.7 million, or 27% of revenue. Cash, cash equivalents and short-term investments were $3,572.4 million at July 31, 2025.

ZS 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed September 2, 2025. Cited figures are marked; the original filing is the authoritative source.

Zscaler, Inc. reported financial results for its fourth fiscal quarter and fiscal year ended July 31, 2025, in a press release dated September 2, 2025 (Exhibit 99.1).

For the quarter, revenue was $719.2 million^a, up 21% year-over-year, and Annual Recurring Revenue reached $3,015 million, up 22%. Calculated billings grew 32% to $1,202.3 million and deferred revenue grew 30% to $2,468.0 million. GAAP net loss was $17.6 million versus $14.9 million a year earlier, while non-GAAP net income rose to $146.7 million from $115.8 million.

For fiscal 2025, revenue was $2,673.1 million^b, up 23%, with GAAP net loss of $41.5 million (versus $57.7 million) and non-GAAP net income of $534.8 million (versus $414.6 million). Operating cash flow for the year was $972.5 million and free cash flow was $726.7 million. The company highlighted its July 2025 issuance of $1,725.0 million of 2028 convertible senior notes (net cash proceeds of $1,700.0 million), which it used alongside cash to fully repay $1,150.0 million of 2025 notes.

Cash, cash equivalents and short-term investments were $3,572.4 million^c at July 31, 2025. Business highlights included the acquisition of Red Canary and the launch of AI security offerings such as Zscaler AI Guard. For fiscal 2026, management guided to first-quarter revenue of $772 million to $774 million and full-year revenue of approximately $3.265 billion to $3.284 billion, with full-year ARR of $3.676 billion to $3.698 billion and non-GAAP net income per share of $3.64 to $3.68.

02—Key points

Key Highlights

Q4 FY2025 revenue of $719.2 million, up 21% year-over-year; ARR of $3,015 million, up 22%.
Q4 GAAP loss from operations of $32.2 million (4% of revenue) versus $27.0 million a year earlier; non-GAAP income from operations of $158.9 million (22% of revenue).
Full-year FY2025 revenue of $2,673.1 million, up 23%; GAAP net loss narrowed to $41.5 million from $57.7 million.
Full-year free cash flow of $726.7 million (27% of revenue) versus $585.0 million in fiscal 2024.
Issued $1,725.0 million of 2028 convertible senior notes and fully repaid $1,150.0 million of 2025 notes; cash and short-term investments totaled $3,572.4 million at July 31, 2025.
FY2026 guidance: Q1 revenue of $772–$774 million; full-year revenue of about $3.265–$3.284 billion and non-GAAP EPS of $3.64–$3.68.
Acquired Red Canary to expand security operations offerings, and launched AI security products including Zscaler AI Guard.

03—Questions

Frequently Asked Questions

How did Zscaler perform in the fourth quarter of fiscal 2025?
Revenue was $719.2 million, up 21% year-over-year, and ARR grew 22% to $3,015 million. GAAP net loss was $17.6 million, compared with $14.9 million a year earlier, while non-GAAP net income was $146.7 million, up from $115.8 million.
What drove the change in the company's debt position?
In July 2025 Zscaler issued $1,725.0 million of convertible senior notes due 2028, with net cash proceeds of $1,700.0 million. It also fully repaid the $1,150.0 million principal of its 2025 notes, settling the premium by issuing 3.8 million new shares of common stock.
What is the company's guidance for fiscal 2026?
For full-year fiscal 2026, Zscaler expects ARR of $3.676 billion to $3.698 billion, revenue of approximately $3.265 billion to $3.284 billion, non-GAAP income from operations of $728 million to $736 million, and non-GAAP net income per share of $3.64 to $3.68. For the first quarter, it expects revenue of $772 million to $774 million.
How does the company's profitability differ between GAAP and non-GAAP measures?
For fiscal 2025, GAAP loss from operations was $128.5 million, while non-GAAP income from operations was $580.1 million. The non-GAAP figures exclude stock-based compensation and related payroll taxes, amortization of acquired intangibles, restructuring and other charges, and acquisition-related expenses.
How strong was cash generation in fiscal 2025?
Cash provided by operations was $972.5 million, or 36% of revenue, and free cash flow was $726.7 million, or 27% of revenue. Cash, cash equivalents and short-term investments were $3,572.4 million at July 31, 2025.

04—Continue

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