Zscaler, Inc.
Cloud Security — Zero Trust Architecture and Secure Access Service Edge (SASE)Founded 2007- Updated July 2025
Reviewed by Swet Parvadiya
Last reviewed: July 2025
CorpDigest
Zscaler, Inc.
Financial Performance
Last reviewed: July 2025 · By Swet Parvadiya
Revenue
$2.67B
Market Cap
$22.0B
Employees
7,348
Revenue grew from $1.09 billion in fiscal 2022 to $1.76 billion in fiscal 2023, $2.17 billion in fiscal 2024, and $2.67 billion in fiscal 2025 — a 145 percent increase over three years. Annual Recurring Revenue surpassed $3 billion heading into fiscal 2026, and calculated billings reached $3.25 billion in fiscal 2025, both leading indicators of recognized revenue growth. The net loss of $41.5 million in fiscal 2025 is almost entirely attributable to the $685.5 million in stock-based compensation. Operating cash flows were $972.5 million and free cash flow was $726.7 million, confirming that the business generates substantial real cash while reporting a GAAP loss. The $22 billion market capitalization reflects the cash generation reality more than the net income line. The July 2025 issuance of $1.725 billion in convertible senior notes due 2028 — with net proceeds of $1.7 billion — and the simultaneous full repayment of $1.15 billion in convertible notes due 2025 restructured the balance sheet at a larger scale, providing capital for acquisitions and platform investment while extending the debt maturity profile. Deferred revenue of $2.47 billion represents customer payments received for services not yet recognized — a revenue backlog that provides multi-year forward visibility. The combination of $3.015 billion in ARR and $2.47 billion in deferred revenue means Zscaler has contractual visibility into its near-term revenue trajectory that most growth-stage companies don't carry, reducing the execution risk embedded in the forward growth thesis.
Revenue Trend Analysis
YoY Change
+23.3%
4-Year CAGR
+41.2%
Peak Year
2025
Trend
Consistent Growth
Zscaler, Inc. has reported revenue across 5 fiscal years, compounding at +41.2% annually over 4 years. The most recent year saw a 23.3% increase versus the prior year. Revenue peaked in 2025 at $2.7B. Out of 4 reported periods, 4 showed growth and 0 showed a decline.
| Fiscal Year | Revenue | YoY Change |
|---|---|---|
| FY2025 | $2.7B | +23.3% |
| FY2024 | $2.2B | +23.0% |
| FY2023 | $1.8B | +61.5% |
| FY2022 | $1.1B | +62.1% |
| FY2021 | $673M | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
Zscaler reported fiscal 2024 revenue of $2.17 billion, up 34% from the prior year, with calculated billings of $2.61 billion up 27%. The fiscal year ended July 31, 2024 and the company subsequently issued initial fiscal 2025 guidance projecting revenue in the range of $2.60 billion to $2.62 billion, implying approximately 20% to 21% year over year growth. The growth deceleration from prior years reflects the law of large numbers and a more disciplined buying environment, with sales cycles lengthening at the largest enterprises and chief information officers consolidating cybersecurity spend onto fewer vendors. Non-GAAP operating income reached $471 million in fiscal 2024 for a non-GAAP operating margin of 21.7%, up materially from 12.7% in the prior year. Free cash flow was $585 million, a 27% free cash flow margin and continued expansion. The company ended fiscal 2024 with $2.42 billion in cash and short-term investments, providing meaningful flexibility for both organic investment and acquisitions. Remaining performance obligations reached $4.42 billion, growing 26%, which provides visibility into multi-year revenue conversion. The combination of 20%-plus revenue growth and rising margins has been the primary thesis underlying Zscaler's premium trading multiple.
Zscaler trades on the Nasdaq under the ticker ZS and as of recent levels carries a market capitalization in the range of $22 billion to $30 billion, with the precise figure varying by trading day. The stock peaked in November 2021 above $360 per share for a market capitalization above $80 billion, reflecting the 2021 software multiple expansion during which high-growth cybersecurity names traded above 40 times forward revenue. The subsequent multiple compression through 2022 and 2023, driven by rising interest rates and rotation out of long-duration assets, brought Zscaler's forward revenue multiple back into the mid-teens. From the March 2018 IPO price of $16, shares have delivered substantial long-term returns despite the post-2021 drawdown. The company has consistently beaten Wall Street revenue and free cash flow estimates each quarter since IPO with only rare exceptions, although guidance for fiscal 2025 issued in September 2024 was somewhat below the most aggressive sell-side models, contributing to a near-term stock pullback. Institutional ownership exceeds 80%, with Vanguard, BlackRock and T. Rowe Price among the largest holders, and founder Jay Chaudhry retains a substantial economic stake estimated at 18% to 20% of the company through individual holdings and family trusts.
Zscaler generated $585 million in free cash flow in fiscal 2024 against $2.17 billion in revenue for a free cash flow margin of approximately 27%, among the highest cash conversion ratios in the cybersecurity software sector. The strong cash generation reflects three factors. First, the subscription billing model with predominantly annual upfront billing on multi-year contracts produces deferred revenue collected in advance of service delivery. Second, the high non-GAAP gross margin of 81.4% leaves substantial gross profit for operating leverage. Third, capital expenditure has been disciplined, focused on incremental data center capacity expansion rather than ground-up infrastructure builds. Zscaler ended fiscal 2024 with $2.42 billion in cash, cash equivalents and short-term investments, against approximately $1.13 billion in convertible senior notes outstanding from the July 2020 issuance that matures in 2025. Even net of the convertible balance, Zscaler holds substantial net cash. The board has authorized share repurchase activity to offset dilution from employee stock plans rather than aggressive buybacks. Capital deployment priorities include continued data center expansion across emerging regions, organic R&D investment particularly in artificial intelligence and data security, and selective bolt-on acquisitions, with Avalor at $310 million in March 2024 the largest to date.
Investors and analysts track several Zscaler-specific operating metrics each quarter beyond the headline revenue and earnings numbers. Calculated billings, defined as revenue plus the change in deferred revenue, is the most-watched leading indicator because it captures new and renewal subscription contracts in the quarter signed. Fiscal 2024 calculated billings of $2.61 billion grew 27%. Customers above $100,000 in annual recurring revenue, reaching over 3,000 in fiscal 2024, indicate the size and stickiness of the enterprise base. Customers above $1 million in annual recurring revenue, exceeding 540, signal mega-deal traction. Net dollar expansion rate, which has consistently exceeded 115%, measures the rate at which existing customers expand their spend, capturing both new product attach and seat growth. Remaining performance obligations, reaching $4.42 billion in fiscal 2024 and growing 26%, provide visibility into multi-year contract conversion. Federal revenue growth, broken out qualitatively on earnings calls, indicates progress in the U.S. federal segment following FedRAMP High authorization. Pipeline coverage ratios disclosed during analyst days inform expectations of forward billings. Non-GAAP operating margin and free cash flow margin are watched as proof of operating leverage. The combination of these metrics paints a more textured picture than revenue alone of whether the platform expansion thesis is intact.
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CorpDigest. "Zscaler, Inc. Revenue & Financials." CorpDigest, https://corpdigest.com/company/zscaler/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>Zscaler, Inc. reported $3B in revenue (FY2025).</strong><br>Source: <a href="https://corpdigest.com/company/zscaler/financials" target="_blank" rel="noopener">CorpDigest — Zscaler, Inc. financials</a></div>