Zscaler Reports Strong Q2 2025 Financial Results

Zscaler ( (ZS) ) has released its Q2 earnings. Here is a breakdown of the information Zscaler presented to its investors.

Zscaler, Inc., a leader in cloud security, provides a platform that protects users, devices, and applications from cyberattacks, facilitating secure digital transformation across various industries. In its second quarter of fiscal 2025, Zscaler reported a 23% year-over-year increase in revenue, reaching $647.9 million, while also achieving a significant reduction in its GAAP net loss to $7.7 million from $28.5 million a year earlier. The company also saw a growth in non-GAAP net income to $127.1 million, up from $99.4 million in the same quarter of the previous year.

Key financial highlights for the quarter include an 18% year-over-year increase in calculated billings to $742.7 million and a 25% rise in deferred revenue to $1,878.5 million. Zscaler’s non-GAAP income from operations improved to $140.5 million, representing 22% of revenue, compared to 20% in the previous year. The company also reported a robust free cash flow of $143.4 million, marking a 22% margin.

Strategically, Zscaler introduced the industry’s first Zero Trust Segmentation solution for branches and cloud environments, aiming to enhance security and reduce costs. The company also integrated its Zero Trust Network Access service with SAP, facilitating safer cloud migrations for SAP customers. Additionally, Zscaler achieved FedRAMP authorization for its Zero Trust Browser, enhancing its compliance credentials.

Looking ahead, Zscaler projects continued growth with expected third-quarter revenue between $665 million and $667 million and full-year revenue forecasted to reach approximately $2.640 billion to $2.654 billion. The company remains focused on leveraging AI and Zero Trust innovations to drive future growth and secure its customers’ digital environments.