$ZS

Zscaler, Inc.

CIK:0001713683|SEC Filings

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jul. 31, 2026	Jul. 31, 2025	Jul. 31, 2024
Income Statement [Abstract]
Revenue	$ 3,352,523	$ 2,673,115	$ 2,167,771
Cost of revenue	777,629	618,178	477,129
Gross profit	2,574,894	2,054,937	1,690,642
Operating expenses:
Sales and marketing	1,495,812	1,259,158	1,100,239
Research and development	903,399	672,485	499,828
General and administrative	308,950	251,754	212,052
Total operating expenses	2,708,161	2,183,397	1,812,119
Loss from operations	(133,267)	(128,460)	(121,477)
Interest income	136,132	125,364	109,130
Interest expense	(11,794)	(9,522)	(13,132)
Other expense, net	(8,210)	(5,673)	(3,750)
Loss before income taxes	(17,139)	(18,291)	(29,229)
Provision for income taxes	46,040	23,187	28,477
Net loss	$ (63,179)	$ (41,478)	$ (57,706)
Net loss per share, basic (in dollars per share)	$ (0.39)	$ (0.27)	$ (0.39)
Net loss per share, diluted (in dollars per share)	$ (0.39)	$ (0.27)	$ (0.39)
Weighted-average shares used in computing net loss per share, basic (in shares)	160,219	154,404	149,586
Weighted-average shares used in computing net loss per share, diluted (in shares)	160,219	154,404	149,586

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jul. 31, 2026	Jul. 31, 2025	Jul. 31, 2024
Cash Flows From Operating Activities
Net loss	$ (63,179)	$ (41,478)	$ (57,706)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization expense	148,544	104,361	66,308
Amortization expense of acquired intangible assets	43,468	16,820	14,624
Amortization of deferred contract acquisition costs	203,693	166,310	130,139
Amortization of debt issuance costs	8,166	4,293	3,914
Operating lease costs	82,934	62,998	49,445
Stock-based compensation expense	821,923	661,350	527,676
Accretion of investments purchased at a discount	(4,655)	(15,923)	(19,062)
Unrealized (gains) losses on hedging transactions, net	(772)	369	753
Deferred income taxes	(20,387)	(14,351)	(5,633)
Other	7,484	987	3,320
Changes in operating assets and liabilities, net of effects of business combinations:
Accounts receivable	(139,989)	(256,010)	(152,960)
Deferred contract acquisition costs	(312,152)	(230,453)	(200,303)
Prepaid expenses, other current and noncurrent assets	(28,076)	(41,572)	(39,971)
Accounts payable	(10,627)	17,532	4,164
Accrued expenses, other current and noncurrent liabilities	36,417	5,180	43,556
Accrued compensation	44,590	20,997	10,507
Deferred revenue	379,873	573,052	450,314
Operating lease liabilities	(67,601)	(62,009)	(49,239)
Net cash provided by operating activities	1,129,654	972,453	779,846
Cash Flows From Investing Activities
Purchases of property, equipment and other assets	(277,304)	(164,252)	(144,588)
Capitalized internal-use software	(73,207)	(81,508)	(50,308)
Payments for business acquisitions, net of cash acquired	(918,074)	(834)	(374,702)
Purchase of strategic investments	(10,413)	(824)	(2,000)
Purchases of short-term investments	(2,254,279)	(1,280,629)	(1,291,015)
Proceeds from maturities of short-term investments	589,880	1,101,025	1,132,268
Proceeds from sale of short-term investments	290,665	0	47,165
Net cash used in investing activities	(2,652,732)	(427,022)	(683,180)
Cash Flows From Financing Activities
Proceeds from issuance of common stock upon exercise of stock options	3,984	3,581	12,249
Proceeds from issuance of common stock under the employee stock purchase plan	59,416	63,563	51,998
Payment of deferred consideration related to business acquisitions	(110)	(792)	0
Proceeds from issuance of the 2028 Notes	0	1,725,000	0
Payments for issuance costs related to the 2028 Notes	(684)	(24,150)	0
Purchases of capped calls related to the 2028 Notes	(197)	(196,650)	0
Payments for the settlement of the 2025 Notes	0	(1,150,040)	0
Other	0	0	(39)
Net cash provided by financing activities	62,409	420,512	64,208
Net increase (decrease) in cash and cash equivalents	(1,460,669)	965,943	160,874
Cash and cash equivalents at beginning of period	2,389,023	1,423,080	1,262,206
Cash and cash equivalents at end of period	928,354	2,389,023	1,423,080
Supplemental Disclosure of Cash Flow Information
Cash paid for income taxes, net of tax refunds	54,095	23,335	23,123
Cash paid for interest expense	0	1,436	1,436
Non-Cash Activities
Operating lease right-of-use assets obtained in exchange for operating lease obligations, net of terminations	123,364	57,632	64,700
Equity consideration for business acquisitions	0	0	3,805
Net change in purchased equipment included in accounts payable and accrued expenses	(1,380)	10,977	1,111
Shares issued to settle the premium amount upon repayment of the 2025 Notes	0	4	0
Shares received and retired from the 2025 Capped Calls upon repayment of the 2025 Notes	0	2	0
Debt issuance and capped call costs included in accounts payable and accrued liabilities	0	999	0
Proceeds from sales of strategic investments not yet received	$ 4,330	$ 0	$ 0

Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2026	Jul. 31, 2025
Current assets:
Cash and cash equivalents	$ 928,354	$ 2,389,023
Short-term investments	2,545,797	1,183,386
Accounts receivable, net	1,149,073	992,181
Deferred contract acquisition costs	215,577	180,819
Prepaid expenses and other current assets	192,432	148,881
Total current assets	5,031,233	4,894,290
Property and equipment, net	753,001	543,377
Operating lease right-of-use assets	137,231	89,772
Deferred contract acquisition costs, noncurrent	402,423	328,722
Total purchased intangible assets, net	214,355	47,323
Goodwill	1,218,098	417,730
Other noncurrent assets	110,373	98,674
Total assets	7,866,714	6,419,888
Current liabilities:
Accounts payable	47,972	46,906
Accrued expenses and other current liabilities	133,304	93,984
Accrued compensation	234,640	181,807
Deferred revenue	2,480,501	2,054,417
Operating lease liabilities	64,894	52,497
Total current liabilities	2,961,311	2,429,611
Convertible senior notes	1,696,355	1,700,727
Deferred revenue, noncurrent	445,272	413,609
Operating lease liabilities, noncurrent	94,575	43,352
Other noncurrent liabilities	70,940	33,316
Total liabilities	5,268,453	4,620,615
Commitments and contingencies (Note 12)
Stockholders’ Equity
Preferred stock; $0.001 par value; 200,000 shares authorized as of July 31, 2026 and 2025, respectively; no shares issued and outstanding as of July 31, 2026 and 2025	0	0
Common stock; $1 par value; 1,000,000 shares authorized as of July 31, 2026 and 2025, respectively; 163,055 and 158,301 shares issued and outstanding as of July 31, 2026 and 2025, respectively	163	159
Additional paid-in capital	3,874,379	2,980,591
Accumulated other comprehensive income (loss)	(23,544)	8,081
Accumulated deficit	(1,252,737)	(1,189,558)
Total stockholders’ equity	2,598,261	1,799,273
Total liabilities and stockholders’ equity	$ 7,866,714	$ 6,419,888