Zscaler, Inc. reported significant financial growth in its fiscal year ending July 31, 2025, with total revenue reaching $2.67 billion, a 23% increase from $2.17 billion in the previous fiscal year. Despite this revenue growth, the company continued to experience net losses, reporting a loss of $41.5 million for fiscal 2025, compared to a loss of $57.7 million in fiscal 2024. The increase in revenue was primarily driven by a rise in user adoption and additional subscriptions from existing customers, contributing $434 million to the revenue growth. The company has indicated that it expects to continue incurring net losses as it invests in expanding its sales and marketing efforts and enhancing its cloud platform.
Operationally, Zscaler has expanded its customer base to over 9,400, including approximately 40% of the Forbes Global 2000 and over 45% of Fortune 500 companies. The company has also seen a dollar-based net retention rate of 114% for the trailing twelve months ended July 31, 2025, indicating strong customer loyalty and expansion within existing accounts. The company’s international revenue accounted for about 49% of total revenue, reflecting its global reach and the increasing demand for cloud security solutions.
In terms of strategic developments, Zscaler completed several acquisitions during the fiscal year, including Airgap Networks and Avalor Technologies, aimed at enhancing its cloud security offerings. The company also launched new product features focused on integrating artificial intelligence capabilities into its security solutions. These acquisitions and product innovations are part of Zscaler's strategy to maintain its competitive edge in the rapidly evolving cybersecurity landscape.
Zscaler's financial position remains strong, with cash, cash equivalents, and short-term investments totaling approximately $3.57 billion as of July 31, 2025. The company recently issued $1.73 billion in convertible senior notes due in 2028, which will provide additional liquidity for future investments. However, Zscaler has acknowledged that it may need to raise additional capital in the future to support its growth initiatives and operational needs.
Looking ahead, Zscaler anticipates continued revenue growth driven by the increasing adoption of its cloud platform and the ongoing shift towards digital transformation among enterprises. The company is focused on expanding its market presence, particularly in international markets, and enhancing its product offerings to address emerging cybersecurity threats. Despite the challenges posed by macroeconomic conditions and competitive pressures, Zscaler remains committed to its long-term growth strategy and aims to leverage its innovative solutions to capture a larger share of the cloud security market.
About Zscaler, Inc.
Zscaler, Inc. provides cloud-native security solutions that enable organizations to securely adopt digital transformation, cloud, and mobility. Its platform offers Zero Trust network access, data security, AI-driven threat protection, and digital experience monitoring. Serving global enterprises across industries, it focuses on reducing attack surfaces, simplifying security architectures, and leveraging AI and microsegmentation to enhance security, scalability, and operational efficiency.
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