# Zscaler, Inc. Common Stock (ZS) — Stock CV

Zscaler, Inc. is a $38.2B technology company. Revenue grew 25.4% over the last year, it currently loses money, and it holds more cash than debt.

> Zscaler is a software-as-a-service, or SaaS, firm focusing on providing cloud-native cybersecurity solutions to primarily enterprise customers.

## Identity

- **Ticker**: ZS
- **Sector**: Technology
- **Industry**: Services-Computer Programming Services
- **Headquarters**: SAN JOSE, CA
- **Employees**: 8 700
- **Website**: https://www.zscaler.com
- **Market cap**: $38.2B
- **Last price**: $234.01
- **Financial profile**: Solid

## Vitals (TTM)

- **Revenue**: $3.35B
- **Net income**: -$63.2M
- **Free cash flow**: $852M
- **Net cash**: $1.61B
- **Revenue growth (YoY)**: 25.4%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 30 |
| Growth | 25 |
| Profitability | 0 |
| Health | 68 |
| Quality | 47 |
| Moat | 50 |

## Qualifications (beginner checklist) — 5 of 9 passed

- [x] Revenue growing — +25.4% YoY
- [ ] Profitable — -$63.2M TTM
- [ ] Profit growing — -52.3% YoY
- [x] Generates cash — $852M TTM
- [x] Debt under control — more cash than debt
- [x] Established company — $38.2B market cap
- [ ] Not printing shares — +18.1% shares over ~5y
- [ ] Proven track record — 0/9 profitable years
- [x] Financially stable — Altman Z 4.8 — safe

## Experience (career milestones)

- **2026** — The company announced it the acquisition of browser security company SquareX for an undisclosed…
- **May 17, 2025** — Zscaler announced it would acquire Red Canary for an undisclosed amount
- **2024** — The company acquired Israel-based data security startup Avalor
- **FY2023** — Became debt-free: cash now exceeds total debt
- **Feb 14, 2023** — Zscaler announced it would acquire Israeli application security company Canonic, a company…
- **FY2022** — Revenue crossed $1B: $1.09B for the year
- **2021** — The company purchased cybersecurity startup Trustdome in April 2021
- **FY2018** — Positive free cash flow every year since: 9-year streak
- **2018** — The company had an initial public offering (IPO) in which it raised $192 million
- **2018** — Zscaler acquired the AI and machine-learning technology of TrustPath in August 2018
- **2008** — The company launched its cybersecurity platform in 2008
- **2007** — Zscaler was founded in 2007 by Jay Chaudhry and K

## Strengths

- High gross margin (76.8%)
- Revenue growing 25.4% year over year
- Strong cash conversion — FCF is 25.4% of revenue
- Net cash position after subtracting debt from cash
- Altman Z-Score 4.81 — low bankruptcy-risk zone

## Watch-outs

- Not profitable — 1.9% net margin
- Thin interest coverage (-6.4×)
- Loss-making in 9 of the recent years

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2022 | $1.09B | -$390M | $253M |
| FY2023 | $1.62B | -$202M | $365M |
| FY2024 | $2.17B | -$57.7M | $635M |
| FY2025 | $2.67B | -$41.5M | $808M |
| FY2026 | $3.35B | -$63.2M | $852M |

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Source: https://stockcv.com/ZS — derived from company filings; may be delayed or incomplete. Information, not investment advice.