Zscaler Inc · NASDAQ:ZS

Zscaler — Q4 2025 Earnings Presentation

27 slides from Zscaler's earnings presentation, September 2025

  1. Slide 1: Fiscal Q4 2025 Earnings Call

    Fiscal Q4 2025 Earnings Call September 2025

  2. Slide 2: Safe Harbor

    Safe Harbor Forward-Looking Statements Unless otherwise noted, all numbers presented will be on an adjusted, non-GAAP basis. Reconciliation of GAAP to non-GAAP financial measures is in the appendix of this presentation. This presentation has been prepared by Zscaler, Inc. (“Zscaler”) for information

  3. Slide 3: Strong finish to FY25

    Strong finish to FY25 Q4 Guidance Q4 Results Q4 Results vs. Guidance Annual Recurring Revenue (ARR1) $3B or more $3.015B Exceeded $705M - $707M $719M Revenue Exceeded ~19% y/y 21% y/y $1.140-$1.145B* $1.2B Calculated Billings Exceeded ~25%-26% y/y* 32% Y/Y Impacted by one-time large Gross Margin ~80

  4. Slide 4: Fiscal Year 2025 results exceeded guidance on all metrics

    Fiscal Year 2025 results exceeded guidance on all metrics FY25 Guidance FY 25 Results FY Results vs. Guidance ARR1 $3B or more $3.015B Exceeded $2.659B - $2.661B $2.673B Revenue Exceeded ~23% y/y 23% y/y $3.184B - $3.189B $3.246B Calculated Billings Exceeded 21% -22% y/y 24% y/y $573M - $575M $580M

  5. Slide 5: Key business metrics sustain growth momentum

    Key business metrics sustain growth momentum Growth at scale Customers increasing Customer centric innovations with strong profitability commitments with Zscaler are resonating well Revenue Growth Y/Y Annual Recurring Revenue3 Three Growth Vectors2 ARR 21%+ $3.0B+ $1B+ Strong growth across all geos

  6. Slide 6: Operating at Rule-of-50 for FY25

    Operating at Rule-of-50 for FY25 In a rarefied category among large publicly traded SaaS companies Rule-of-50 for FY25 27% 50% 23% Revenue growth % FCF Margin % Rule of 40 All numbers presented on an adjusted, non-GAAP basis. See appendix of this presentation for a reconciliation of GAAP to non-GAAP

  7. Slide 7: $3B+ Annual Recurring Revenue (ARR)

    $3B+ 50M+ Total Users secured on our platform Annual Recurring Revenue 20+ Petabytes (ARR) 1 Traffic flowing through Zero Trust Exchange Cloud every day 500B+ One of the only two pure-play SaaS Daily transactions security vendors to achieve this milestone >50x number of daily google searches 1. Zsca

  8. Slide 8: Comprehensive Platform Solutions

    Comprehensive Platform Solutions AI-Security Zero Trust Data Security Security for AI Agentic Everywhere Everywhere Applications Operations Zero Trust Users Discover, Classify, Secure Private Agentic IT Operations Assess Posture (DSPM) AI Apps / LLMs Zero Trust Branch Agentic Security Zero Trust Clo

  9. Slide 9: Three Platform Growth Vectors: $1B+ ARR

    Three Platform Growth Vectors AI-Security Zero Trust Everywhere 1 Data Security Everywhere ▪ Security for AI apps Customer need to buy all ▪ Cyber Isolation ▪ Endpoint DLP three of: ▪ Secure AI Apps ▪ Inline DLP ▪ E-mail DLP ▪ Zero Trust Users (ZIA/ZPA) ▪ Secure Access to AI Apps ▪ SaaS Security ▪ D

  10. Slide 10: Security for AI apps

    Security for AI apps Guardrails for Public AI Apps Guardrails for Private AI Apps Agent-to-Agent AI-Security Claude 3, Agentic Internet Cloud Agent Data Center GPT-4o Cloud ChatGPT Perplexity Claude Private LLM Public LLM Secure Internet Secure Private Secure LLM Secure Agent to Agent AI Guard for U

  11. Slide 11: Rapid expansion in our Agentic Operations portfolio

    Rapid expansion in our Agentic Operations portfolio Agentic IT Ops 7-Figure ZDX deal AI-Security National government New, 7-figure ACV deal • Govt’s defense ministry selected ZDX Adv. Plus including ZDX Copilot, to identify root causes of IT outages, take corrective actions, streamlining troubleshoo

  12. Slide 12: Growing adoption of Zero Trust Everywhere

    Growing adoption of Zero Trust Everywhere Goal: 390+ “Zero Trust Everywhere”1 enterprises2 by FY26 390+ AI-Security 7-Figure ACV deal 350+ Global 2000 Manufacturing • 120+ manufacturing plants secured as this existing Zero Trust Users & Cloud customer 210+ Zero Trust purchased Zero Trust Branch Ever

  13. Slide 13: Zero Trust Branch driving Zero Trust Everywhere growth

    Zero Trust Branch driving Zero Trust Everywhere growth 7-Figure ACV deal AI-Security Higher-Ed • Largest ever Branch win: New logo Zero Trust win with a higher-ed institution which Everywhere purchased Zero Trust Device Segmentation to secure ~150k devices across 400+ Education Manufacturing Govt. &

  14. Slide 14: Zero Trust Cloud securing workloads with growing AI adoption

    Zero Trust Cloud securing workloads with growing AI adoption Zero Trust Cloud gateway 7-Figure ACV deal Fortune 10 Healthcare AI-Security • Customer expanded workload protection from public cloud workloads to datacenter workloads • Eliminates East-West virtual firewalls Internet VPC Workloads • This

  15. Slide 15: Data Security driving consolidation of multiple point products

    Data Security driving consolidation of multiple point products on our platform Zscaler Data Security Modules Cyber Isolation DP Isolation Data Security AI-Security ~$425M Inline DLP Endpoint DLP SaaS Security Email DLP Classification & Encryption DSPM ARR Zero Trust Everywhere Data Security deal 32%

  16. Slide 16: Z-Flex traction is growing

    Z-Flex traction is growing Z-flex Deal Large Energy player Upsell, 8-figure TCV deal • ARR increased >100% Y/Y • Modules adopted increased from 14 to 19 • Zero Trust Branch deployed for hundreds of locations. What Z-Flex is : What Z-Flex is NOT : Flexible consumption A Consumption model Simplified p

  17. Slide 17: Growing across all geographies

    Growing across all geographies Revenue mix by geographies $719M $678M $648M $628M 16% $593M 16% $553M 16% $525M 16% 15% $497M 15% 29% 15% 15% 30% 30% 30% 30% 31% 31% 32% 54% 55% 55% 54% 54% 54% 54% 53% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Americas EMEA APJ 2025 Zscaler, Inc. All rights re

  18. Slide 18: Sustained Large customer momentum

    Sustained Large customer momentum $100K+ ARR Customers2 $1M+ ARR Customers2 16% CAGR 23% CAGR >45% 664 3,494 633 619 3,357 3,281 584 564 3,087 3,154 Fortune 500 Customers1 522 2,919 491 2,817 462 2,703 ~40% Global 2000 Customers1 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'24 Q2'24 Q3'24 Q4'2

  19. Slide 19: Improving operating efficiency, profitability & cash flow

    Improving operating efficiency, profitability & cash flow (in $ M) Gross Margin Operating Margin Free Cash Flow Margin 90% 25.00% 30% 80% 25% 70% 20.00% 60% 20% 15.00% 50% 15% 40% 10.00% 30% 10% 20% 5.00% 5% 10% 0% 0.00% 0% FY24 FY25 Q1 '26 Guidance FY24 FY25 FY26 Guidance FY24 FY25 FY26 Guidance Ke

  20. Slide 20: ARR as key business metric

    ARR as key business metric Annual Recurring Revenue (ARR1), $M $3,015 24% CAGR $2,817 $2,683 One of the only two $2,553 $2,474 pure-play SaaS security vendors to $2,304 surpass $3B ARR $2,177 $2,072 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 1. Zscaler Annual Recurring Revenue (ARR) refers to t

  21. Slide 21: Financial guidance

    Financial guidance Q1’26 Guidance FY26 Guidance $772M - $774M $3,265M - $3,284M $90M Revenue contribution from Revenue Red Canary acquisition for FY26 ~23% y/y ~22% y/y - 23% y/y $3,676M - $3,698M ARR1 $95M ARR contribution from Red 21.9% y/y - 22.7% y/y Canary acquisition for FY26 Gross Margin ~80%

  22. Slide 22: Strong Q4, well positioned for FY26

    Strong Q4, well positioned for FY26 Total ARR surpassed $3B, making us one of the only two pure-play SaaS security vendors to achieve the 1 milestone. Achieved quarterly operating margin record in Q4 Our three growth vectors - AI-Security, Zero Trust Everywhere and Data Security Everywhere – combine

  23. Slide 23: Financial Appendix

    Financial Appendix

  24. Slide 24: Explanation of Non-GAAP Financial Measures

    Explanation of Non-GAAP Financial Measures In addition to our results determined in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we believe that the presentation of non-GAAP financial information provides important supplemental information to man

  25. Slide 25: Appendix A: GAAP to Non-GAAP Reconciliation

    Appendix A: GAAP to Non-GAAP Reconciliation (in thousands, except percentages) Q4'25 Q4'24 FY25 FY24 Revenue $719,226 $592,868 $2,673,115 $2,167,771 Non-GAAP Gross Profit and Non-GAAP Gross Margin GAAP gross profit $546,986 $462,663 $2,054,937 $1,690,642 Add: Stock-based compensation expense and rel

  26. Slide 26: Appendix A: GAAP to Non-GAAP Reconciliation (cont.)

    Appendix A: GAAP to Non-GAAP Reconciliation (cont.) (in thousands, except per share amounts) Q4'25 Q4'24 FY25 FY24 Non-GAAP Net Income per Share, Diluted GAAP net loss $(17,578) $(14,878) $(41,478) $(57,706) Add: GAAP provision for income taxes 15,675 9,774 23,187 28,477 GAAP loss before income taxe

  27. Slide 27: Appendix A: GAAP to Non-GAAP Reconciliation (cont.)

    Appendix A: GAAP to Non-GAAP Reconciliation (cont.) (in thousands, except percentages) Q4'25 Q4'24 FY25 FY24 Calculated Billings Revenue $719,226 $592,868 $2,673,115 $2,167,771 Add: Total deferred revenue, end of period 2,468,026 1,894,974 2,468,026 1,894,974 Less: Total deferred revenue, beginning

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