Fundamental analysis · SEC EDGAR · TTM through 30/04/2026

Fundamental analysis of Zscaler, Inc.

ZS · Nasdaq · Technology

Fundamental quality

ATTRACTIVE

77

out of 100

Zscaler, Inc. is in full growth mode but not yet profitable: revenue is growing strongly (41.5% a year), but it doesn't translate into earnings yet. On fundamental quality it scores 77 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its profitability (net margin -2.4%). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Zscaler sells cloud security under the 'zero trust' model: instead of protecting the office network with walls, it verifies every connection from every employee, wherever they are. Remote work and the cloud made its approach the new corporate standard.

What will shape its future

  • Zero-trust adoption, replacing traditional firewalls.
  • Large contracts with governments and multinationals, its most valuable segment.
  • Fierce competition in cybersecurity, with rivals attacking from every flank.

Breakdown by area

I.Growth
95

Revenue growth: 41.5%

II.Profitability
42

Net margin: -2.4% · ROE: -3.3%

III.Financial health
95

FCF: 30.4%

Source: SEC EDGAR · TTM through 30/04/2026

The score combines growth, profitability and financial strength. Here its growth weighs in its favor, while its profitability drags it down the most.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 9%
ROEbeats 11%
Growthbeats 92%
Cash generationbeats 78%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Zscaler, Inc. strengths

  • Revenue growing strongly (41.5% annualized).
  • High gross margin (76.7%), pointing to pricing power.
  • Excellent free-cash-flow generation (FCF margin of 30.4%): profit turns into real cash.
  • Revenue rising without interruption since 2020.

Zscaler, Inc. risks and weaknesses

  • No profits over the last twelve months (negative EPS).
  • Losses over the last twelve months (net margin of -2.4%).

Zscaler, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
2020431-11536720
2021673-262154638
20221,091-390253-45
20231,617-202365-128
20242,168-58635-281
20252,673-41808-2,389

Between 2020 and 2025, revenue went from $431M to $2,673M (+520%) and net income went from -$115M to -$41M (+64%). It has also reduced its net debt over the period.

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the nine months ended April 30, 2026, versus the nine months ended April 30, 2025 (SEC filings):

  • Revenue+25.6%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

This company doesn't pay a dividend: it reinvests all its earnings back into the business.

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Is Zscaler, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Zscaler, Inc. a good company to invest in?

In terms of business quality, Zscaler, Inc. scores 77 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Zscaler, Inc. a profitable company?

Over the last twelve months, no: Zscaler, Inc. posts a negative net margin (-2.4%).

Is Zscaler, Inc. growing?

Its revenue has grown 41.5% annualized in recent years, and without interruption since 2020.

Does Zscaler, Inc. generate cash?

Yes. It converts about 30.4% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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