Zscaler provides cloud-based security that controls how users, devices and applications access corporate systems and data. Its business is primarily subscription-based, with pricing tied to users and metered usage.
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A snapshot of what Zscaler, Inc. owns and owes at a point in time.
Read the company’s balance sheet in the original annual reports below.
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3 reports in this collection
| Report period | Filed with SEC | Form | Source |
|---|---|---|---|
| Jul 31, 20240001713683-24-000109 | Sep 12, 2024 | 10-K | Open 10-Ksec.gov |
| Jul 31, 20250001713683-25-000158 | Sep 11, 2025 | 10-K | Open 10-Ksec.gov |
| Jul 31, 20260001713683-26-000157 | Sep 3, 2026 | 10-K | Open 10-Ksec.gov |
Dates describe the filing metadata. Figures and reporting periods should be checked against the original statement. SEC links open in a new tab.
Zscaler is growing its security platform, but stronger sales and adjusted earnings have not yet produced annual GAAP profitability. Revenue reached $3.353 billion in fiscal 2026, up a reported 25%; excluding Red Canary, growth was 20%, not a fully organic measure. Fourth-quarter operating losses narrowed, while the annual net loss widened as tax expense increased. Operating cash generation remained positive, but heavier capital spending reduced free-cash-flow margins, and acquisitions consumed additional cash outside that measure. On October 6, management reaffirmed fiscal 2027 guidance rather than raising it. The current balance is expanding subscriptions and substantial cash and investments against infrastructure demands, stock-based compensation, acquisition integration and execution risk during workforce and sales-leadership changes. Forecasts remain conditional, and restructuring completion and savings are not established.
Sources: 10-K · 2026-07-31 · EX-99.1 · 2026-09-01 · EX-99.1 · 2026-10-06 · 8-K · 2026-09-01 · 8-K · 2026-09-24
Subscriptions and support supplied approximately 98% of fiscal 2026 revenue. Contracts generally run one to five years. Zscaler reports one financial segment, so its security product pillars do not provide separate profitability measures. Management attributed $474.6 million of the year's revenue increase to existing-customer expansion and $204.8 million to new customers, including acquisitions. Channel partners generated 85% of revenue; the top five supplied 31%, making distribution relationships important despite diversified end customers.
July 31, 2026 ARR was $3.771 billion, including $141 million from Red Canary. ARR assumes expiring contracts renew on existing terms; it is not guaranteed revenue. It also overlaps with, rather than adds to, $7.365 billion of remaining performance obligations. The reported 20% revenue growth excluding Red Canary does not isolate every acquisition, pricing change or AI contribution.
Sources: 10-K · 2026-07-31 · EX-99.1 · 2026-09-01
For the quarter ended July 31, 2026, revenue rose a reported 25% to $898.2 million and GAAP operating loss narrowed to $15.5 million from $32.2 million. Across the full year, however, operating loss widened to $133.3 million from $128.5 million. Its rounded margin improved from negative 5% to negative 4% because revenue grew. GAAP gross margin stayed near 77%; infrastructure costs and increased R&D spending, including lower software-cost capitalization, offset operating leverage.
Annual non-GAAP operating income was $767.1 million. The principal reconciliation item was $841.6 million of stock compensation and related payroll taxes; the payroll taxes are cash expenses, and recurring equity compensation creates dilution. Interest income of $136.1 million helped offset operating losses. Net loss nevertheless widened to $63.2 million as tax expense increased. Management chiefly attributed the tax comparison to the prior year's U.K. valuation-allowance release; fiscal 2026 also included an Israeli restructuring tax effect and offsetting benefits. Adjusted earnings additionally benefited from a prospective non-GAAP tax-rate reduction from 23% to 21%. GAAP loss EPS excludes potentially dilutive securities that enter adjusted EPS, so the denominators differ.
Sources: EX-99.1 · 2026-09-01 · 10-K · 2026-07-31
Fiscal 2026 operating cash flow was $1.130 billion, including an $821.9 million noncash stock-compensation adjustment and billing and collection effects; it is not profit. Company-defined free cash flow deducts equipment, other asset purchases and cash capitalized software costs. It reached $779.1 million, but its margin fell to 23% from 27%. Fourth-quarter free cash flow dropped to $60.8 million from $171.9 million despite higher operating cash flow, as those capital expenditures rose to $218.5 million from $78.7 million. Specific projects behind the quarterly surge are not established.
Free cash flow excludes $918.1 million of net acquisition payments. Four acquisitions were completed during fiscal 2026, expanding capabilities but increasing integration demands and goodwill to $1.218 billion. Several purchase-price allocations remain preliminary. Other capital demands include $159.5 million of recognized lease liabilities, $27.5 million of uncommenced lease payments and $558.7 million of noncancelable purchase obligations with more than one year remaining; these are distinct obligations, not additional convertible-note principal.
Sources: 10-K · 2026-07-31 · EX-99.1 · 2026-09-01
At July 31, cash and equivalents were $928.4 million and short-term investments were $2.546 billion. Their combined $3.474 billion is not cash alone: some securities mature in one to three years. Outstanding unsecured convertible notes have $1.725 billion principal due July 15, 2028 and a $1.696 billion carrying amount. They have no cash coupon or financial covenants, but swaps introduce floating-rate exposure on $750 million. Management currently intends to repay principal in cash; specified fundamental changes can create cash repurchase obligations. Capped calls offer limited, counterparty-dependent protection, not complete dilution insurance. The 2025 notes were already repaid and are not additional current debt.
Sources: 10-K · 2026-07-31
On September 1, after fiscal year-end, Zscaler committed to an approximately 3% workforce reduction, disclosed September 3. Management expects $30–33 million of charges, mostly recognized in the first half of fiscal 2027, to support resource reallocation toward AI and growth. This is separate from fiscal 2026 restructuring expense; neither completion nor net savings is established, and costs may exceed estimates. A September 24 filing announced Ross Tackett's promotion to CRO effective October 1, with Mike Rich scheduled to advise through December 31. Expected severance is unquantified; its relationship to the restructuring estimate is unknown.
On October 6, management reaffirmed September 3 guidance: first-quarter fiscal 2027 revenue of $935–939 million and full-year revenue of $3.908–3.938 billion, with ARR of $4.396–4.426 billion. Full-year non-GAAP operating income is forecast at $924–932 million and free-cash-flow margin at approximately 23.0–23.5%. Adjusted EPS guidance of $4.86–4.90 assumes approximately 173 million diluted shares and a 21% tax rate. These forecasts do not establish GAAP profitability: unpredictable adjustments prevent a GAAP reconciliation. The October 6 announcement mentions a separate $10 billion ARR aspiration without an achievement date or quantified execution path; the event presentation and replay are outside this review.
Sources: 8-K · 2026-09-01 · 8-K · 2026-09-24 · 10-K · 2026-07-31 · 8-K · 2026-10-06 · EX-99.1 · 2026-10-06 · EX-99.1 · 2026-09-01
Management sees AI security as an opportunity, but more AI traffic can raise infrastructure costs while smaller human workforces pressure per-user billing. Monetizing non-user traffic, retaining customers and integrating acquisitions therefore matter alongside pricing competition and lengthy large-deal approvals. Platform reliability and third-party infrastructure remain critical. The company reported no identified fiscal 2026 cybersecurity incident with a material or reasonably likely material effect—not an absence of all incidents. Acquired businesses were included in financial statements but excluded from that year's internal-control assessment scope.
Sources: 10-K · 2026-07-31
USD 3.352523 bn
FY2026 · GAAP · consolidated · Attribution: consolidated · Reported currency
| Fiscal year | Value | YoY |
|---|---|---|
| 2026 | USD 3.352523 bn | 25.4% |
| 2025 | USD 2.673115 bn | 23.3% |
| 2024 | USD 2.167771 bn | — |
Consolidated revenue from subscription, support, professional and other services.
Sources: 10-K · 2026-07-31
USD -63.179 m
FY2026 · GAAP · consolidated · Attribution: consolidated · Reported currency
| Fiscal year | Value | YoY |
|---|---|---|
| 2026 | USD -63.179 m | Loss widened |
| 2025 | USD -41.478 m | Loss narrowed |
| 2024 | USD -57.706 m | — |
Consolidated net income or loss after income taxes; losses are negative.
Sources: 10-K · 2026-07-31
USD 1.129654 bn
FY2026 · GAAP · consolidated · Attribution: consolidated · Reported currency
| Fiscal year | Value | YoY |
|---|---|---|
| 2026 | USD 1.129654 bn | 16.2% |
| 2025 | USD 972.453 m | 24.7% |
| 2024 | USD 779.846 m | — |
GAAP operating cash flow after operating working-capital movements.
Sources: 10-K · 2026-07-31
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