Detailed financial statements for Zscaler, Inc. (ZS): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Globally recognized, Zscaler, Inc. functions as a leading provider of cloud-based security solutions. Its core offerings include Zscaler Internet Access (ZIA), which ensures secure connectivity for a diverse range of entities – including users, servers, operational technology (OT), and IoT devices – when accessing external resources like software-as-a-service (SaaS) applications and general internet destinations.
Analysis Summary
Zscaler, Inc. reported revenue of $3.35B in the most recent fiscal year, growing at a 5-year CAGR of 37.9%.
Trailing-twelve-month margins: gross margin 76.8%, operating margin -4.0%, net margin -1.9%. Free cash flow grew at 42.8% CAGR over 5 years.
At the current price of $198.35, ZS has negative trailing earnings (P/E not meaningful) and an ROE of -2.43%. Market capitalisation stands at $32.1B, placing it among large-cap names.
Balance sheet quality for ZS: current ratio of 1.7, net cash position of $1.62B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Income Statement (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|
| Revenue | $125.7M | $190.2M | $302.8M | $431.3M | $673.1M | $1.09B | $1.62B | $2.17B | $2.67B | $3.35B |
| Cost of Revenue | $27.5M | $37.9M | $60.1M | $97.1M | $150.6M | $243.3M | $362.5M | $479.7M | $618.2M | $777.6M |
| Gross Profit | $98.2M | $152.3M | $242.8M | $334.2M | $522.5M | $847.6M | $1.25B | $1.69B | $2.05B | $2.57B |
| Research & Development | $33.6M | $39.4M | $62.0M | $96.6M | $174.7M | $288.8M | $347.5M | $499.7M | $672.5M | $903.4M |
| Selling, General & Admin | $99.8M | $139.5M | $203.0M | $332.4M | $555.2M | $886.2M | $1.12B | $1.31B | $1.51B | $1.80B |
| Operating Expenses | $133.3M | $178.9M | $265.0M | $429.0M | $729.9M | $1.18B | $1.47B | $1.81B | $2.18B | $2.71B |
| Operating Income | -$35.1M | -$26.6M | -$22.2M | -$94.9M | -$207.4M | -$327.4M | -$215.4M | -$123.9M | -$128.5M | -$133.3M |
| EBITDA | -$27.7M | -$11.1M | $2.0M | -$48.1M | -$105.8M | -$183.4M | -$76.7M | $64.8M | $112.4M | $186.6M |
| Interest Expense | 0 | 0 | 0 | $5.0M | $53.4M | $56.6M | $6.8M | $13.1M | $9.5M | $11.8M |
| Pre-tax Income | -$34.6M | -$32.3M | -$27.9M | -$112.7M | -$257.2M | -$383.6M | -$182.6M | -$29.2M | -$18.3M | -$17.1M |
| Income Tax | $877,000 | $1.3M | $743,000 | $2.4M | $4.9M | $6.6M | $19.8M | $28.5M | $23.2M | $46.0M |
| Net Income | -$35.5M | -$33.6M | -$28.7M | -$115.1M | -$262.0M | -$390.3M | -$202.3M | -$57.7M | -$41.5M | -$63.2M |
| EPS | $-0.34 | $-0.53 | $-0.23 | $-0.89 | $-1.93 | $-2.77 | $-1.40 | $-0.39 | $-0.27 | $-0.39 |
| EPS (Diluted) | $-0.34 | $-0.53 | $-0.23 | $-0.89 | $-1.93 | $-2.77 | $-1.40 | $-0.39 | $-0.27 | $-0.39 |
| Shares Outstanding (Diluted) | $103.6M | $63.9M | $123.6M | $129.3M | $135.7M | $140.9M | $144.9M | $149.6M | $154.4M | $160.2M |
Income Statement (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|
| Revenue | $788.1M | $815.8M | $850.5M | $898.2M |
| Gross Profit | $603.4M | $624.5M | $657.8M | $689.2M |
| Operating Income | -$36.4M | -$51.8M | -$29.6M | -$15.5M |
| EBITDA | $35.0M | $29.0M | $23.0M | $99.5M |
| Net Income | -$11.6M | -$34.3M | -$13.9M | -$3.4M |
| EPS | $-0.07 | $-0.21 | $-0.09 | $-0.02 |
| EPS (Diluted) | $-0.07 | $-0.21 | $-0.09 | $-0.02 |
Balance Sheet (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|
| Cash & Equivalents | $88.0M | $135.6M | $78.5M | $141.9M | $275.9M | $1.01B | $1.26B | $1.42B | $2.39B | $928.4M |
| Short-term Investments | 0 | $163.0M | $286.2M | $1.23B | $1.23B | $718.1M | $838.0M | $986.6M | $1.18B | $2.55B |
| Receivables | $39.1M | $61.6M | $93.3M | $147.6M | $257.1M | $399.7M | $582.6M | $736.5M | $992.2M | $1.15B |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Assets | $142.9M | $387.2M | $496.1M | $1.58B | $1.85B | $2.26B | $2.89B | $3.40B | $4.89B | $5.03B |
| Property, Plant & Equipment | $13.1M | $19.8M | $41.0M | $111.9M | $152.9M | $233.0M | $313.0M | $472.9M | $633.1M | $890.2M |
| Goodwill | 0 | 0 | $7.5M | $30.1M | $59.0M | $78.5M | $89.2M | $417.0M | $417.7M | $1.22B |
| Intangible Assets | 0 | 0 | $8.7M | $24.0M | $32.1M | $31.8M | $25.9M | $63.8M | $47.3M | $214.4M |
| Total Assets | $182.9M | $447.8M | $604.2M | $1.83B | $2.26B | $2.83B | $3.61B | $4.70B | $6.42B | $7.87B |
| Accounts Payable | $3.8M | $4.9M | $6.2M | $5.2M | $12.5M | $26.2M | $18.5M | $23.3M | $46.9M | $48.0M |
| Short-term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $1.14B | 0 | 0 |
| Total Current Liabilities | $120.5M | $182.8M | $261.9M | $423.9M | $720.2M | $1.13B | $1.54B | $3.11B | $2.43B | $2.96B |
| Long-term Debt | 0 | 0 | 0 | $861.6M | $913.5M | $968.7M | $1.13B | 0 | $1.70B | $1.70B |
| Total Liabilities | $133.1M | $207.5M | $295.6M | $1.35B | $1.73B | $2.26B | $2.88B | $3.43B | $4.62B | $5.27B |
| Retained Earnings | -$162.0M | -$196.1M | -$224.5M | -$339.6M | -$601.6M | -$991.9M | -$1.09B | -$1.15B | -$1.19B | -$1.25B |
| Total Equity | $49.8M | $240.2M | $308.6M | $484.8M | $528.9M | $573.3M | $725.1M | $1.27B | $1.80B | $2.60B |
| Total Debt | 0 | 0 | 0 | $905.2M | $964.6M | $1.05B | $1.21B | $1.24B | $1.80B | $1.86B |
| Net Debt | -$88.0M | -$298.5M | -$364.6M | -$465.3M | -$537.9M | -$685.6M | -$889.7M | -$1.17B | -$1.78B | -$1.62B |
| Working Capital | $22.4M | $204.3M | $234.1M | $1.16B | $1.13B | $1.12B | $1.35B | $283.7M | $2.46B | $2.07B |
Balance Sheet (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|
| Cash & Equivalents | $1.34B | $1.20B | $982.1M | $928.4M |
| Total Assets | $6.50B | $6.75B | $7.10B | $7.87B |
| Total Liabilities | $4.52B | $4.56B | $4.73B | $5.27B |
| Total Equity | $1.98B | $2.20B | $2.37B | $2.60B |
| Total Debt | $1.83B | $1.86B | $1.86B | $1.86B |
Cash Flow (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|
| Net Income | -$35.5M | -$33.6M | -$28.7M | -$115.1M | -$262.0M | -$390.3M | -$202.3M | -$57.7M | -$41.5M | -$63.2M |
| Depreciation & Amortization | $6.8M | $8.0M | $11.3M | $21.1M | $36.5M | $49.5M | $66.8M | $80.9M | $121.2M | $192.0M |
| Stock-based Compensation | $9.9M | $11.2M | $46.4M | $121.4M | $258.5M | $409.6M | $444.8M | $527.7M | $661.4M | $821.9M |
| Change in Working Capital | $4.3M | $18.4M | $13.6M | $8.6M | $45.6M | $97.5M | $28.6M | $66.1M | $26.7M | $53.1M |
| Operating Cash Flow | -$6.0M | $17.3M | $58.0M | $79.3M | $202.0M | $321.9M | $462.3M | $779.8M | $972.5M | $1.13B |
| Capital Expenditure | -$8.2M | -$15.2M | -$30.2M | -$51.8M | -$58.3M | -$90.6M | -$128.7M | -$194.9M | -$245.8M | -$277.3M |
| Acquisitions | 0 | 0 | -$11.4M | -$41.6M | -$40.5M | -$25.3M | -$15.6M | -$374.7M | -$834,000 | -$918.1M |
| Stock Repurchased | 0 | -$3.8M | -$22,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | -$14.2M | $2.1M | $27.9M | $27.5M | $143.7M | $231.3M | $333.6M | $585.0M | $726.7M | $852.4M |
Cash Flow (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|
| Operating Cash Flow | $448.3M | $204.1M | $198.0M | $279.3M |
| Capital Expenditure | -$35.0M | $35.0M | -$62.1M | -$215.2M |
| Free Cash Flow | $413.3M | $239.1M | $136.0M | $64.0M |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Stock-based Compensation | $188.6M | $216.6M | $205.2M | $211.6M |
Growth & Margins (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|
| Revenue Growth (YoY) | | +51.3% | +59.2% | +42.4% | +56.1% | +62.1% | +48.2% | +34.1% | +23.3% | +25.4% |
| Net Income Growth (YoY) | | +5.1% | +14.8% | -301.7% | -127.6% | -48.9% | +48.2% | +71.5% | +28.1% | -52.3% |
| EPS Growth (YoY) | | -55.9% | +56.6% | -287.0% | -116.9% | -43.5% | +49.5% | +72.1% | +30.8% | -44.4% |
| Shares Change (YoY) | | -38.4% | +93.4% | +4.7% | +4.9% | +3.9% | +2.9% | +3.2% | +3.2% | +3.8% |
| FCF Growth (YoY) | | +115.1% | +1,203.9% | -1.3% | +422.5% | +60.9% | +44.2% | +75.3% | +24.2% | +17.3% |
| Gross Margin | 78.1% | 80.1% | 80.2% | 77.5% | 77.6% | 77.7% | 77.6% | 77.9% | 76.9% | 76.8% |
| Operating Margin | -27.9% | -14.0% | -7.3% | -22.0% | -30.8% | -30.0% | -13.3% | -5.7% | -4.8% | -4.0% |
| EBITDA Margin | -22.1% | -5.9% | 0.7% | -11.2% | -15.7% | -16.8% | -4.7% | 3.0% | 4.2% | 5.6% |
| Net Margin | -28.2% | -17.7% | -9.5% | -26.7% | -38.9% | -35.8% | -12.5% | -2.7% | -1.6% | -1.9% |
| FCF Margin | -11.3% | 1.1% | 9.2% | 6.4% | 21.4% | 21.2% | 20.6% | 27.0% | 27.2% | 25.4% |
| Effective Tax Rate | -2.5% | -4.1% | -2.7% | -2.1% | -1.9% | -1.7% | -10.8% | -97.4% | -126.8% | -268.6% |
Per-Share Data (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|
| FCF Per Share | $-0.14 | $0.03 | $0.23 | $0.21 | $1.06 | $1.64 | $2.30 | $3.91 | $4.71 | $5.32 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | $103.6M | $63.9M | $123.6M | $129.3M | $135.7M | $140.9M | $144.9M | $149.6M | $154.4M | $160.2M |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Profitability
| Return on Equity | -2.43% |
| Return on Invested Capital | -2.68% |
| Return on Assets | -0.80% |
| Gross Margin | 76.80% |
| Operating Margin | -3.98% |
| Net Margin | -1.88% |
Financial Health
| Debt / Equity | 0.71 |
| Current Ratio | 1.70 |
| Piotroski F-Score | 4 |
| Altman Z-Score | 3.22 |
Key Ratios (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|
| P/E | -97.06 | -66.62 | -366.39 | -145.90 | -122.23 | -55.42 | -114.56 | -459.87 | -1,057.63 | -387.69 |
| P/B | 68.62 | 9.39 | 33.75 | 34.64 | 60.51 | 37.72 | 32.06 | 21.06 | 24.51 | 9.32 |
| P/S | 27.20 | 11.86 | 34.38 | 38.94 | 47.54 | 19.82 | 14.38 | 12.38 | 16.49 | 7.23 |
| Gross Margin | 78.1% | 80.1% | 80.2% | 77.5% | 77.6% | 77.7% | 77.6% | 77.9% | 76.9% | 76.8% |
| Operating Margin | -27.9% | -14.0% | -7.3% | -22.0% | -30.8% | -30.0% | -13.3% | -5.7% | -4.8% | -4.0% |
| Net Margin | -28.2% | -17.7% | -9.5% | -26.7% | -38.9% | -35.8% | -12.5% | -2.7% | -1.6% | -1.9% |