Revenue growth has moderated from 35.4% in 2024Q2 to 25.4% in 2026Q3, while elevated SG&A expenses of $455.2 million continue to prevent consistent GAAP operating profitability.
Zscaler, Inc. (ZS) annual income statement — 11-year revenue, gross profit & net income history
| Metric | TTM | Jul'25 | Jul'24 | Jul'23 | Jul'22 | Jul'21 | Jul'20 | Jul'19 | Jul'18 | Jul'17 | Jul'16 | Jul'15 |
|---|
| Sales/Revenue | 3.35B | 2.67B | 2.17B | 1.62B | 1.09B | 673.1M | 431.27M | 302.84M | 190.17M | 125.72M | 80.33M | 53.71M |
| Revenue Growth % | 25.42% | 23.31% | 34.07% | 48.22% | 62.08% | 56.07% | 42.41% | 59.24% | 51.27% | 56.51% | 49.56% | - |
| Cost of Goods Sold | 777.63M | 618.18M | 479.66M | 362.48M | 243.32M | 150.64M | 97.09M | 60.06M | 37.88M | 27.47M | 20.13M | 14.43M |
| COGS % of Revenue | - | 23.13% | 22.13% | 22.42% | 22.3% | 22.38% | 22.51% | 19.83% | 19.92% | 21.85% | 25.06% | 26.87% |
| Gross Profit | 2.57B | 2.05B | 1.69B | 1.25B | 847.63M | 522.46M | 334.18M | 242.77M | 152.3M | 98.25M | 60.2M | 39.28M |
| Gross Margin % | 76.8% | 76.87% | 77.87% | 77.58% | 77.7% | 77.62% | 77.49% | 80.17% | 80.08% | 78.15% | 74.94% | 73.13% |
| Gross Profit Growth % | - | 21.73% | 34.57% | 48% | 62.24% | 56.34% | 37.65% | 59.4% | 55.02% | 63.2% | 53.27% | - |
| Operating Expenses | 2.71B | 2.18B | 1.81B | 1.47B | 1.18B | 729.85M | 429.04M | 265M | 178.88M | 133.32M | 87.04M | 51.69M |
| OpEx % of Revenue | - | 81.68% | 83.59% | 90.91% | 107.71% | 108.43% | 99.48% | 87.51% | 94.06% | 106.05% | 108.36% | 96.25% |
| Selling, General & Admin | 1.8B | 1.51B | 1.31B | 1.12B | 886.25M | 555.2M | 332.44M | 203.05M | 139.5M | 99.76M | 66.1M | 36.66M |
| SG&A % of Revenue | - | 56.52% | 60.53% | 69.41% | 81.24% | 82.48% | 77.08% | 67.05% | 73.36% | 79.35% | 82.29% | 68.26% |
| Research & Development | 903.4M | 672.49M | 499.75M | 347.52M | 288.81M | 174.65M | 96.6M | 61.96M | 39.38M | 33.56M | 20.94M | 15.03M |
| R&D % of Revenue | - | 25.16% | 23.05% | 21.49% | 26.47% | 25.95% | 22.4% | 20.46% | 20.71% | 26.7% | 26.07% | 27.99% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -133.27M | -128.46M | -123.88M | -215.44M | -327.43M | -207.4M | -94.85M | -22.23M | -26.59M | -35.07M | -26.84M | -12.42M |
| Operating Margin % | -3.98% | -4.81% | -5.71% | -13.32% | -30.01% | -30.81% | -21.99% | -7.34% | -13.98% | -27.9% | -33.42% | -23.12% |
| Operating Income Growth % | - | -3.7% | 42.5% | 34.2% | -57.88% | -118.65% | -326.62% | 16.37% | 24.2% | -30.66% | -116.16% | - |
| EBITDA | 6.06M | -7.28M | -42.95M | -116.42M | -183.81M | -109.39M | -35.26M | 7.72M | -5.42M | -28.23M | -21.97M | -9.56M |
| EBITDA Margin % | 0.18% | -0.27% | -1.98% | -7.2% | -16.85% | -16.25% | -8.18% | 2.55% | -2.85% | -22.46% | -27.35% | -17.81% |
| EBITDA Growth % | 131.6% | 83.05% | 63.11% | 36.66% | -68.04% | -210.23% | -556.55% | 242.6% | 80.82% | -28.5% | -129.73% | - |
| D&A (Non-Cash Add-back) | 139.32M | 121.18M | 80.93M | 99.03M | 143.62M | 98.01M | 59.59M | 29.96M | 21.17M | 6.84M | 4.87M | 2.85M |
| EBIT | -5.46M | -8.77M | -16.14M | -175.75M | -327.05M | -203.81M | -107.7M | -27.91M | -32.31M | -34.58M | -26.97M | -12.6M |
| Net Interest Income | 124.34M | 115.84M | 96.04M | 53.64M | -51.99M | -50.55M | 1.45M | 7.73M | 2.24M | 0 | 0 | 0 |
| Interest Income | 136.13M | 125.36M | 109.13M | 60.46M | 4.59M | 2.81M | 6.48M | 7.73M | 2.24M | 0 | 0 | 0 |
| Interest Expense | 11.79M | 9.52M | 13.09M | 6.82M | 56.58M | 53.36M | 5.03M | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 116.13M | 110.17M | 94.65M | 32.88M | -56.2M | -49.78M | -17.87M | -5.68M | -5.72M | 490K | -127K | -181K |
| Pretax Income | -17.14M | -18.29M | -29.23M | -182.56M | -383.63M | -257.18M | -112.73M | -27.91M | -32.31M | -34.58M | -26.97M | -12.6M |
| Pretax Margin % | -0.51% | -0.68% | -1.35% | -11.29% | -35.16% | -38.21% | -26.14% | -9.22% | -16.99% | -27.51% | -33.58% | -23.46% |
| Income Tax | 46.04M | 23.19M | 28.48M | 19.77M | 6.65M | 4.85M | 2.39M | 743K | 1.34M | 877K | 468K | 233K |
| Effective Tax Rate % | -268.63% | -126.77% | -97.43% | -10.83% | -1.73% | -1.89% | -2.12% | -2.66% | -4.14% | -2.54% | -1.74% | -1.85% |
| Net Income | -63.18M | -41.48M | -57.71M | -202.34M | -390.28M | -262.03M | -115.12M | -28.66M | -33.65M | -35.46M | -27.44M | -12.83M |
| Net Margin % | -1.88% | -1.55% | -2.66% | -12.51% | -35.77% | -38.93% | -26.69% | -9.46% | -17.69% | -28.21% | -34.16% | -23.89% |
| Net Income Growth % | -52.32% | 28.12% | 71.48% | 48.16% | -48.94% | -127.62% | -301.73% | 14.83% | 5.12% | -29.24% | -113.82% | - |
| Net Income (Continuing) | -63.18M | -41.48M | -57.71M | -202.34M | -390.28M | -262.03M | -115.12M | -28.66M | -33.65M | -35.46M | -27.44M | -12.83M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.39 | -0.27 | -0.39 | -1.40 | -2.77 | -1.93 | -0.89 | -0.23 | -0.53 | -0.34 | -0.98 | -0.49 |
| EPS Growth % | -46.67% | 30.77% | 72.14% | 49.46% | -43.52% | -116.85% | -286.96% | 56.6% | -55.88% | 65.31% | -100% | - |
| EPS (Basic) | - | -0.27 | -0.39 | -1.40 | -2.77 | -1.93 | -0.89 | -0.23 | -0.53 | -0.34 | -0.98 | -0.49 |
| Diluted Shares Outstanding | 160.22M | 154.4M | 149.59M | 144.94M | 140.9M | 135.65M | 129.32M | 123.57M | 63.88M | 103.63M | 28.13M | 26.11M |
| Basic Shares Outstanding | 160.22M | 154.4M | 149.59M | 144.94M | 140.9M | 135.65M | 129.32M | 123.57M | 63.88M | 103.63M | 28.13M | 26.11M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying ZS stock.
For fiscal year 2025, Zscaler, Inc. (ZS) reported total revenue of $2.67B. This represents a 4877.2% increase compared to $53.7M in 2015.
Zscaler, Inc. (ZS) reported a net loss of $41.5M for the fiscal year ending 2025.
Zscaler, Inc. (ZS) reported an operating income of $-128.5M, resulting in an operating profit margin of -4.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Zscaler, Inc. (ZS) generated $2.05B in gross profit for the year, representing a gross profit margin of 76.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
High Stock-Based Compensation Dilution
Metrics are mathematically derived from official filings.
Revenue Growth Moderating Amid Scale
According to recent financial filings, Zscaler's year-over-year revenue growth has decelerated from 35.4% in 2024Q2 to 25.4% by 2026Q3, reflecting the natural maturation of the business as it penetrates deeper into the enterprise market while facing increased competition from integrated cloud-native security suites.
The consistent decline in top-line growth rates suggests that the company is finding it increasingly difficult to maintain hyper-growth levels as its revenue base expands. Investors should monitor whether this deceleration is a function of lengthening enterprise sales cycles or a structural saturation of the initial Zero Trust adoption wave.
Structural Gross Margin Stability Observed
As reported in quarterly statements, Zscaler has maintained gross margins within a tight range of 76% to 78% over the last ten quarters, indicating that the company's cloud-native architecture provides a consistent, albeit capped, efficiency profile despite ongoing investments in global data center infrastructure.
The stability of these margins suggests that the company has successfully managed the costs of its global PoP footprint even as it scales. However, the lack of significant margin expansion implies that the platform may have reached a point of diminishing returns regarding infrastructure-related economies of scale.
Operating Leverage Remains Elusive
Based on the provided income statement data, Zscaler continues to struggle with operating leverage, as SG&A expenses remain elevated at $455.2 million in 2026Q3, consistently offsetting gross profit gains and preventing the company from achieving sustained GAAP operating profitability despite significant top-line expansion.
The persistent gap between revenue growth and operating income suggests that the company's go-to-market strategy remains highly capital-intensive. This indicates that the firm may be prioritizing aggressive customer acquisition over the realization of operational efficiencies, which warrants caution regarding the timeline for meaningful GAAP earnings.
Stock-Based Compensation Masks Profitability
Analysis of the company's income statements reveals that Stock-Based Compensation (SBC) reached $205.2 million in 2026Q3, a figure that consistently exceeds the reported net losses, suggesting that the company's path to GAAP profitability is heavily obscured by significant non-cash equity-based expenses.
The reliance on SBC as a primary lever for talent retention and growth funding creates a disconnect between reported GAAP losses and the underlying cash-generating potential of the business. Investors should be wary of the long-term dilutive impact this compensation structure has on shareholder equity and future EPS growth.
Competitive Risks to Pricing Power
Data from recent periods indicates that Zscaler faces mounting pressure from hyperscale competitors, which may threaten its premium pricing model as enterprise customers increasingly evaluate integrated security features from existing cloud providers rather than standalone, specialized platforms like Zscaler's.
The potential for 'good enough' security features to be bundled by major cloud vendors could force Zscaler to choose between margin compression or slower growth. This competitive dynamic suggests that the company's moat may be narrower than the current valuation implies, particularly in the mid-market segment.