Zscaler Reports Strong Q3 Growth Amid Strategic Expansions

Zscaler ( (ZS) ) has released its Q3 earnings. Here is a breakdown of the information Zscaler presented to its investors.

Zscaler, Inc. is a leading cloud security company that provides secure internet access and data protection through its Zero Trust Exchange platform, serving a wide range of industries globally with its innovative security solutions.

In its third quarter fiscal 2025 earnings report, Zscaler announced a 23% year-over-year revenue increase to $678 million, alongside a notable growth in calculated billings and deferred revenue. Despite a GAAP net loss of $4.1 million, the company reported a strong non-GAAP net income of $136.8 million, highlighting its robust financial performance.

Key financial metrics showcased Zscaler’s growth trajectory, with calculated billings rising by 25% year-over-year to $784.5 million and deferred revenue increasing by 26% to $1,985 million. The company also reported a GAAP loss from operations of $25.4 million, contrasting with a non-GAAP income from operations of $146.7 million. Additionally, Zscaler’s cash flow from operations was $211.1 million, maintaining a 31% revenue margin.

Strategically, Zscaler made significant moves by acquiring Red Canary to enhance its AI-powered security operations and appointing new executives to strengthen its leadership team. The company also received recognition as a leader in the Gartner Magic Quadrant for Security Service Edge and introduced new products to bolster its security offerings.

Looking ahead, Zscaler projects continued revenue growth with an expected range of $705 million to $707 million for the fourth quarter of fiscal 2025. The company remains focused on expanding its Zero Trust Exchange platform and investing in AI security solutions to meet the evolving needs of its customers in a rapidly changing digital landscape.