Zscaler: 664 customers generate over $1M ARR

Zscaler: 664 customers generate over $1M ARR

Zscaler, Inc. (Nasdaq: ZS), the leading provider of cloud security solutions, recently announced its financial results for the fiscal fourth quarter and fiscal year ended July 31, 2025. The company reported significant growth in revenue, Annual Recurring Revenue (ARR), and calculated billings, while also highlighting its strategic acquisitions and innovations in AI-driven security.

Financial Highlights

- Revenue: Zscaler's revenue grew by 21% year-over-year to $719.2 million in the fourth quarter.
- ARR: Annual Recurring Revenue increased by 22% year-over-year to $3,015 million.
- Calculated Billings: This metric grew by 32% year-over-year to $1,202.3 million.
- Deferred Revenue: Deferred revenue increased by 30% year-over-year to $2,468.0 million.

Despite these impressive financial metrics, Zscaler reported a GAAP net loss of $17.6 million, compared to a loss of $14.9 million in the previous year. However, the company's non-GAAP net income was $146.7 million, a significant improvement over the $115.8 million reported in the same period last year.

Operational and Strategic Highlights

Zscaler's CEO, Jay Chaudhry, emphasized the company's strategic focus on AI and Zero Trust security solutions. The company recently acquired Red Canary, a provider of agentic AI-driven threat intelligence and automation, to enhance its Security Operations Center (SOC) capabilities. Additionally, Zscaler launched AI-powered security innovations, including Zscaler AI Guard, to stop attacks and ensure regulatory compliance.

The company also introduced new solutions to extend Zero Trust Everywhere, enabling businesses to secure data across various environments. Zscaler achieved significant milestones, such as the U.S. Department of Defense's CMMC Level 2 certification and AWS ISV Competencies in Healthcare, Education, and Government.

Financial Outlook

For the first quarter of fiscal 2026, Zscaler expects revenue of $772 million to $774 million and non-GAAP net income per share of approximately $0.85 to $0.86. For the full year fiscal 2026, the company anticipates ARR of $3.676 billion to $3.698 billion and revenue of approximately $3.265 billion to $3.284 billion.

Conclusion

Zscaler's fourth quarter and fiscal 2025 financial results demonstrate robust growth in revenue and ARR, driven by strategic acquisitions and innovations in AI-driven security. Despite a GAAP net loss, the company's non-GAAP net income highlights its operational efficiency and profitability. The company's forward-looking financial outlook indicates continued growth and market leadership in cloud security.

References

[1] https://www.globenewswire.com/news-release/2025/09/02/3143138/0/en/Zscaler-Reports-Fourth-Quarter-and-Fiscal-2025-Financial-Results.html