Zscaler ( (ZS) ) has released its Q4 earnings. Here is a breakdown of the information Zscaler presented to its investors.
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Zscaler, Inc. is a leading cloud security company that offers a Zero Trust Exchange platform to protect users, devices, and applications from cyber threats, operating in the cybersecurity industry with a focus on digital transformation and secure connectivity.
In its latest earnings report, Zscaler announced a 21% year-over-year revenue increase for the fourth quarter of fiscal 2025, reaching $719.2 million, and highlighted significant growth in annual recurring revenue and calculated billings. The company also reported strategic advancements in AI security solutions and notable acquisitions to enhance its cybersecurity offerings.
Key financial metrics for the quarter include a 22% increase in annual recurring revenue to $3,015 million and a 32% rise in calculated billings to $1,202.3 million. Despite a GAAP net loss of $17.6 million, the company achieved a non-GAAP net income of $146.7 million, reflecting strong operational performance. Zscaler’s cash flow from operations improved to $250.6 million, and deferred revenue saw a 30% increase year-over-year.
Strategically, Zscaler expanded its AI security portfolio, launched innovative solutions like Zscaler AI Guard and Zscaler Cellular, and acquired Red Canary to bolster its threat intelligence capabilities. These initiatives underscore the company’s commitment to addressing emerging cybersecurity risks and enhancing its Zero Trust architecture.
Looking ahead, Zscaler’s management projects continued growth with expected revenue of $772 million to $774 million for the first quarter of fiscal 2026 and a robust annual recurring revenue target of up to $3.698 billion for the full year. The company remains focused on driving innovation and maintaining its leadership position in the cloud security market.