Slides
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Fiscal Q4 2025 Earnings Call September 2025
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2025 Zscaler, Inc. All rights reserved Safe Harbor Forward-Looking Statements Unless otherwise noted, all numbers presented will be on an adjusted, non-GAAP basis. Reconciliation of GAAP to non-GAAP financial measures is in the appendix of this presentation. This presentation has been prepared by Zscaler, Inc. (“Zscaler”) for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise or representation by the presenter or Zscaler or any officer, director, employee, agent or advisor of Zscaler. This presentation does not purport to be all-inclusive or to contain all of the information you may desire. This presentation contains forward-looking statements. All statements other than statements of historical fact, including statements regarding our future financial and operating performance, including our financial outlook for the first quarter of fiscal 2026 and full year fiscal 2026, the expected impact of the Red Canary acquisition, our planned products and upgrades, business strategy and plans and objectives of management for future operations of Zscaler are forward-looking statements. These statements involve known and a significant number of unknown risks, uncertainties, assumptions and other factors that could cause results to differ materially from statements made in this message, including any performance or achievements expressed or implied by the forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make, including but not limited to the ongoing effects of inflation and geopolitical events on our business, operations and financial results and the economy in general; our limited operating history; our ability to identify and effectively implement the necessary changes to address execution challenges; risks associated with managing our rapid growth, including fluctuations from period to period; our limited experience with new product and subscription and support introductions and the risks associated with new products and subscription and support offerings, including the discovery of software bugs; our ability to attract and retain new customers; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscription and support; rapidly evolving technological developments in the market for network security products and subscription and support offerings and our ability to remain competitive; length of sales cycles; and general market, political, economic and business conditions. Additional risks and uncertainties that could affect our financial and operating results are included in our most recent filings with the Securities and Exchange Commission (“SEC”). You can locate these reports though our website at http://ir.zscaler.com or on the SEC website at www.sec.gov. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “continues,” “contemplate,” “could,” “estimate,” “expect,” “explore,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will” or “would” or the negative of these terms or other similar words. Zscaler based these forward-looking statements largely on its current expectations and projections about future events that it believes may affect its business. Actual outcomes and results may differ materially from those contemplated by these forward-looking statements. All forward-looking statements in this message are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
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2025 Zscaler, Inc. All rights reserved Strong finish to FY25 Q4 Guidance Q4 Results Q4 Results vs. Guidance Annual Recurring Revenue (ARR1) $3B or more $3.015B Exceeded Revenue $705M - $707M ~19% y/y $719M 21% y/y Exceeded Calculated Billings $1.140-$1.145B* ~25%-26% y/y* $1.2B 32% Y/Y Exceeded Gross Margin ~80% 79.3% Impacted by one-time large private cloud deployment Operating Profit $152M - $154M ~22% margin $159M 22.1% margin Exceeded EPS $0.79 - $0.80 $0.89 23% y/y Exceeded All numbers presented on an adjusted, non-GAAP basis. See appendix of this presentation for a reconciliation of GAAP to non-GAAP financial measures. There is no GAAP measure that is comparable to ARR, so we have not reconciled the ARR data included to any GAAP measure. *Implied guidance 1. Zscaler Annual Recurring Revenue (ARR) refers to the next 12 months of revenue from subscription contracts as of the measurement date. To establish ARR for a customer, we assume that any contract expiring during the next 12 months will be renewed under the existing terms, excluding Red Canary's subscription contracts expiring in fiscal year 2026.
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2025 Zscaler, Inc. All rights reserved FY25 Guidance FY 25 Results FY Results vs. Guidance ARR1 $3B or more $3.015B Exceeded Revenue $2.659B - $2.661B ~23% y/y $2.673B 23% y/y Exceeded Calculated Billings $3.184B - $3.189B 21% -22% y/y $3.246B 24% y/y Exceeded Operating Profit $573M - $575M ~22% margin $580M ~22% margin Exceeded Earnings Per Share $3.18 - $3.19 $3.28 Exceeded Free Cash Flow Margin 25.5%-26.0% $727M 27.2% margin Exceeded Fiscal Year 2025 results exceeded guidance on all metrics All numbers presented on an adjusted, non-GAAP basis. See appendix of this presentation for a reconciliation of GAAP to non-GAAP financial measures. There is no GAAP measure that is comparable to ARR, so we have not reconciled the ARR data included to any GAAP measure.. 1. Zscaler Annual Recurring Revenue (ARR) refers to the next 12 months of revenue from subscription contracts as of the measurement date. To establish ARR for a customer, we assume that any contract expiring during the next 12 months will be renewed under the existing terms, excluding Red Canary's subscription contracts expiring in fiscal year 2026.
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2025 Zscaler, Inc. All rights reserved ~$425M Data Security Everywhere ARR Growing module adoption Key business metrics sustain growth momentum Customer centric innovations are resonating well 350+ Zero Trust Everywhere enterprises +60% Q/Q $1B+ Three Growth Vectors2 ARR growing faster than total ARR Customers increasing commitments with Zscaler $5.8B Customer commitments1 RPO growth of ~31% Y/Y $3.0B+ Annual Recurring Revenue3 ARR growth of ~22% Y/Y $1.5B+ Highest TCV bookings quarter TCV growth of 30% Y/Y Growth at scale with strong profitability 21%+ Revenue Growth Y/Y Strong growth across all geos 22% Operating Margin Highest ever Operating margin 24% Free Cash Flow Margin Free Cash Flow growth 26% Y/Y 1. Remaining Performance Obligations (RPO) 2. Three Growth Vectors include Zero Trust Everywhere, Data Security Everywhere, and Agentic Operations 3. Zscaler Annual Recurring Revenue (ARR) refers to the next 12 months of revenue from subscription contracts as of the measurement date. To establish ARR for a customer, we assume that any contract expiring during the next 12 months will be renewed under the existing terms, excluding Red Canary's subscription contracts expiring in fiscal year 2026.
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2025 Zscaler, Inc. All rights reserved Operating at Rule-of-50 for FY25 In a rarefied category among large publicly traded SaaS companies 23% 50% 27% Revenue growth % FCF Margin % Rule of 40 Rule-of-50 for FY25 All numbers presented on an adjusted, non-GAAP basis. See appendix of this presentation for a reconciliation of GAAP to non-GAAP financial measures.
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2025 Zscaler, Inc. All rights reserved $3B+ Annual Recurring Revenue (ARR) 1 One of the only two pure-play SaaS security vendors to achieve this milestone 50M+ Total Users secured on our platform 500B+ Daily transactions >50x number of daily google searches 20+ Petabytes Traffic flowing through Zero Trust Exchange Cloud every day 1. Zscaler Annual Recurring Revenue (ARR) refers to the next 12 months of revenue from subscription contracts as of the measurement date. To establish ARR for a customer, we assume that any contract expiring during the next 12 months will be renewed under the existing terms, excluding Red Canary's subscription contracts expiring in fiscal year 2026.
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2025 Zscaler, Inc. All rights reserved Comprehensive Platform Solutions Zero Trust Everywhere Zero Trust Users Zero Trust Branch Zero Trust Cloud Data Security Everywhere Discover, Classify, Assess Posture (DSPM) Prevent Data Loss Internet, GenAI SaaS Security for AI Applications Secure Private AI Apps / LLMs Agent-to-agent communication Agentic Operations Agentic IT Operations Agentic Security Operations Zscaler Platform AI-Security
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2025 Zscaler, Inc. All rights reserved1. “Zero Trust Everywhere” ARR is from customers that purchased components from each of Zero Trust Users, Zero Trust Cloud and Z ero Trust Branch. Three growth vectors combined $1B+ ARR, growing faster than overall ARR Three Platform Growth Vectors AI-Security ▪ Security for AI apps ▪ Secure AI Apps ▪ Secure Access to AI Apps ▪ Agentic Operations ▪ IT Ops, including ZDX, ZDX Copilot ▪ Security Ops, including Risk360, Business Insights, UVM, Identity Threat Detection, and Cyber Asset Attack Surface Management ▪ Red Canary Data Security Everywhere ▪ Cyber Isolation ▪ Inline DLP ▪ SaaS Security ▪ Classification & Encryption ▪ DP Isolation ▪ Endpoint DLP ▪ E-mail DLP ▪ DSPM Zero Trust Everywhere 1 Customer need to buy all three of: ▪ Zero Trust Users (ZIA/ZPA) ▪ Zero Trust Cloud (Posture Control, Workloads) ▪ Zero Trust Branch (Branch Connector, Device Segmentation)
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2025 Zscaler, Inc. All rights reserved Security for AI apps Data Security Everywhere Zero Trust Everywhere AI-Security Guardrails for Private AI Apps Cloud Public LLM Data Center Private LLM Customer-facing AI Chatbot Employee-facing AI Chatbot Zscaler AI Guard for Apps (Proxy/API) Guardrails for Public AI Apps Zscaler Perplexity ClaudeChatGPT Secure Internet Access Secure Private App Access Secure LLM Access Agentic Agent Secure Agent to Agent Communication Agentic Agent AI Guard MCP/A2A Internet Cloud Claude 3, GPT-4o Agent-to-Agent AI Guard for Users + GenAI
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2025 Zscaler, Inc. All rights reserved Agentic Security Ops Fortune 500 Finance & Insurance • Customer adopted our UVM solution to secure 100k+ workstations & servers across multiple global business units. 8-Figure UVM Deal Upsell, 8-figure TCV deal SecOps ARR grew >85% Y/Y driven by UVM Data Security Everywhere Zero Trust Everywhere AI-Security Rapid expansion in our Agentic Operations portfolio Agentic IT Ops Bookings for “ZDX Advanced Plus”, (including ZDX Copilot) grew 58% Y/Y in FY25 National government • Govt’s defense ministry selected ZDX Adv. Plus including ZDX Copilot, to identify root causes of IT outages, take corrective actions, streamlining troubleshooting. 7-Figure ZDX deal New, 7-figure ACV deal Agentic Operations >$400M expected ARR in FY26
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2025 Zscaler, Inc. All rights reserved Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 FY26E 210+ 130+ 390+ 350+ Growing adoption of Zero Trust Everywhere 1. “Zero Trust Everywhere” customers are customers that purchased components of Zero Trust Users, Zero Trust Cloud and Zero Trust Branch. 2. Enterprises are customers with 1,500 or more employees. Graph is illustrative, not to scale. Goal: 390+ “Zero Trust Everywhere”1 enterprises2 by FY26 Global 2000 Manufacturing • 120+ manufacturing plants secured as this existing Zero Trust Users & Cloud customer purchased Zero Trust Branch • 60%+ cost savings realized in replacing legacy SD-WAN, firewall-based VPNs and existing OT security solutions with Zero Trust Branch 7-Figure ACV deal Data Security Everywhere Zero Trust Everywhere AI-Security
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2025 Zscaler, Inc. All rights reserved Zero Trust Branch driving Zero Trust Everywhere growth Higher-Ed • Largest ever Branch win: New logo win with a higher-ed institution which purchased Zero Trust Device Segmentation to secure ~150k devices across 400+ locations 7-Figure ACV deal Data Security Everywhere Zero Trust Everywhere AI-Security Education Finance & Insurance Manufacturing RetailGovt. & Federal TransportationTechnology Arts, Media & Entertainment
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2025 Zscaler, Inc. All rights reserved Zero Trust Cloud securing workloads with growing AI adoption Data Security Everywhere Zero Trust Everywhere AI-Security Fortune 10 Healthcare • Customer expanded workload protection from public cloud workloads to datacenter workloads • Eliminates East-West virtual firewalls • This workload expansion deal focuses on all datacenter egress traffic 7-Figure ACV deal Zero Trust Cloud gateway Cloud Gateway VPC Workloads Region Internet VPC Workloads
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2025 Zscaler, Inc. All rights reserved Fortune 500 Services • Customer, who is also a key GSI partner, adopted our Data Security suite, including Isolation, Email DLP, Endpoint DLP, Data classification & encryption, and Gen AI security for 350k users. Data Security deal Upsell, 7-figure ACV deal Zscaler Data Security Modules AI Security Cyber Isolation Inline DLP SaaS Security Classification & Encryption DP Isolation Endpoint DLP Email DLP DSPM Upsell opportunity as module adoption increases Data Security driving consolidation of multiple point products on our platform Data Security ~$425M ARR Data Security Everywhere Zero Trust Everywhere AI-Security 10% of customers have 4 or more modules 32% of customers have 3 or more modules
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2025 Zscaler, Inc. All rights reserved Z-Flex traction is growing Large Energy player • ARR increased >100% Y/Y • Modules adopted increased from 14 to 19 • Zero Trust Branch deployed for hundreds of locations. Z-flex Deal Upsell, 8-figure TCV deal Flexible consumption White-glove deployment & support Simplified procurement Favorable Pricing What Z-Flex is : Predictable Budget A Consumption model What Z-Flex is NOT : An ELA model
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2025 Zscaler, Inc. All rights reserved Growing across all geographies Revenue mix by geographies 53% 54% 54% 55% 54% 54% 54% 55% 32% 31% 31% 30% 30% 30% 30% 29% 15% 15% 15% 15% 16% 16% 16% 16% $497M $525M $553M $593M $628M $648M $678M $719M Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Americas EMEA APJ
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2025 Zscaler, Inc. All rights reserved Sustained Large customer momentum ~40% Global 2000 Customers1 >45% Fortune 500 Customers1 $1M+ ARR Customers2 462 491 522 564 584 619 633 664 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 $100K+ ARR Customers2 2,703 2,817 2,919 3,087 3,154 3,281 3,357 3,494 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 16% CAGR 23% CAGR 1) Forbes Global 2000 and Fortune 500 customers as of July 31, 2025; Forbes and Fortune list as of July 31, 2024. 2) ARR information has been updated to reflect our current ARR definition.
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2025 Zscaler, Inc. All rights reserved Improving operating efficiency, profitability & cash flow Key factors • New products use public clouds and are optimized for faster go-to-market than gross margins. As the new products scale, we will optimize them for margins Key factors • Leverage in our financial model • Pace of hiring & growth investments Key factors • Billings collections in the quarter • Data center capital expenditures as a % of revenue Gross Margin Operating Margin Free Cash Flow Margin 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% FY24 FY25 FY26 Guidance 0% 5% 10% 15% 20% 25% 30% FY24 FY25 FY26 Guidance 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% FY24 FY25 Q1 '26 Guidance (in $ M) All numbers presented on an adjusted, non-GAAP basis. See appendix of this presentation for a reconciliation of GAAP to non-GAAP financial measures.
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2025 Zscaler, Inc. All rights reserved ARR as key business metric $2,072 $2,177 $2,304 $2,474 $2,553 $2,683 $2,817 $3,015 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Annual Recurring Revenue (ARR1), $M 24% CAGR One of the only two pure-play SaaS security vendors to surpass $3B ARR 1. Zscaler Annual Recurring Revenue (ARR) refers to the next 12 months of revenue from subscription contracts as of the measurement date. To establish ARR for a customer, we assume that any contract expiring during the next 12 months will be renewed under the existing terms, excluding Red Canary's subscription contracts expiring in fiscal year 2026.
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2025 Zscaler, Inc. All rights reserved Financial guidance Q1’26 Guidance FY26 Guidance Revenue $772M - $774M ~23% y/y $3,265M - $3,284M ~22% y/y - 23% y/y ARR1 $3,676M - $3,698M 21.9% y/y - 22.7% y/y Gross Margin ~80% Operating Profit $166M - $168M ~22% margin $728M - $736M ~22% margin Net Other Income $18M Taxes 23% tax rate 23% tax rate Earnings Per Share $0.85 - $0.86 $3.64 - $3.68 Free Cash Flow Margin 26.0%-26.5% All numbers presented on an adjusted, non-GAAP basis. See appendix of this presentation for a reconciliation of GAAP to non-GAAP financial measures. There is no GAAP measure that is comparable to ARR, so we have not reconciled the ARR data included to any GAAP measure. $95M ARR contribution from Red Canary acquisition for FY26 $90M Revenue contribution from Red Canary acquisition for FY26 1. Zscaler Annual Recurring Revenue (ARR) refers to the next 12 months of revenue from subscription contracts as of the measurement date. To establish ARR for a customer, we assume that any contract expiring during the next 12 months will be renewed under the existing terms, excluding Red Canary's subscription contracts expiring in fiscal year 2026.
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2025 Zscaler, Inc. All rights reserved Strong Q4, well positioned for FY26 Our three growth vectors - AI-Security, Zero Trust Everywhere and Data Security Everywhere – combined surpassed $1B ARR and growing faster than total ARR2 AI-Security solutions, including “Security of AI Apps” and “Agentic Operations”, surpassed $250M ARR and expected to grow to well over $400M in FY263 Z-Flex program generated over $100M in TCV bookings, representing over 50% sequential growth. Expect its contribution to grow meaningfully in FY26.5 Total ARR surpassed $3B, making us one of the only two pure-play SaaS security vendors to achieve the milestone. Achieved quarterly operating margin record in Q41 Zero Trust Everywhere surpassed 350 enterprises, outpacing our expectations. Zero Trust Cloud ARR accelerated in Q4 and AI adoption necessitates workload protection Zero Trust Branch has significant opportunity with millions of branches still using legacy security 4
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Financial Appendix
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2025 Zscaler, Inc. All rights reserved Explanation of Non-GAAP Financial Measures In addition to our results determined in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we believe that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. However, non-GAAP financial information is presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures and key metrics as analytical tools. Investors are encouraged to review these reconciliations, and not to rely on any single financial measure to evaluate our business. Expenses Excluded from Non-GAAP Measures Stock-based compensation expense is excluded primarily because it is a non-cash expense that management believes is not reflective of our ongoing operational performance. Employer payroll taxes related to stock-based compensation, which is a cash expense, are excluded because these are tied to the timing and size of the exercise or vesting of the underlying equity incentive awards and the price of our common stock at the time of vesting or exercise, which may vary from period to period independent of the operating performance of our business. Amortization expense of acquired intangible assets and amortization of debt issuance costs from the convertible senior notes are excluded because these are non-cash expenses and are not reflective of our ongoing operational performance. Acquisition-related expenses incurred with business acquisitions are excluded because these are not reflective of our ongoing operations. Restructuring and other charges includes severance and termination benefits in connection with a restructuring plan to streamline operations and to align people, roles and projects to our strategic priorities. These expenses are excluded because they fluctuate in amount and frequency and are not reflective of our core business operating performance. Effective August 1, 2024, the beginning of our fiscal year ending July 31, 2025, we are using a long-term projected non-GAAP tax rate of 23% for the purpose of determining our non-GAAP net income and non-GAAP net income per share to provide better consistency across interim reporting periods. Given the significant growth of our business and non-GAAP operating income, we believe this change is necessary to better reflect the performance of our business. We will continue to assess the appropriate non-GAAP tax rate on a regular basis, which could be subject to changes for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix, or other changes to our strategy or business operations. Prior period amounts have been recast to reflect this change. Key Non-GAAP Financial Measures Included within this Presentation: ▪ Non-GAAP Gross Profit and Non-GAAP Gross Margin(*) ▪ Non-GAAP Income from Operations and Non-GAAP Operating Margin(*) ▪ Non-GAAP Net Income and Non-GAAP Net Income per Share ▪ Calculated Billings, Free Cash Flow and Free Cash Flow Margin(*) *Non-GAAP to GAAP reconciliations shown on the following slides.
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2025 Zscaler, Inc. All rights reserved Appendix A: GAAP to Non-GAAP Reconciliation (in thousands, except percentages) Q4'25 Q4'24 FY25 FY24 Revenue $719,226 $592,868 $2,673,115 $2,167,771 Non-GAAP Gross Profit and Non-GAAP Gross Margin GAAP gross profit $546,986 $462,663 $2,054,937 $1,690,642 Add: Stock-based compensation expense and related payroll taxes 19,324 13,890 70,998 52,766 Amortization expense of acquired intangible assets 3,655 4,483 14,975 12,879 Restructuring and other charges 138 — 138 — Non-GAAP gross profit $570,103 $481,036 $2,141,048 $1,756,287 GAAP gross margin 76% 78% 77% 78% Non-GAAP gross margin 79% 81% 80% 81% Non-GAAP Income from Operations and Non-GAAP Operating Margin GAAP loss from operations $(32,242) $(26,950) $(128,460) $(121,477) Add: Stock-based compensation expense and related payroll taxes 180,795 149,370 685,534 549,100 Amortization expense of acquired intangible assets 4,080 5,124 16,820 14,624 Restructuring and other charges 4,921 — 4,921 — Acquisition-related expenses 1,316 — 1,316 — Non-GAAP income from operations $158,870 $127,544 $580,131 $442,247 GAAP operating margin (4)% (5)% (5)% (6)% Non-GAAP operating margin 22% 22% 22% 20%
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2025 Zscaler, Inc. All rights reserved Appendix A: GAAP to Non-GAAP Reconciliation (cont.) (in thousands, except per share amounts) Q4'25 Q4'24 FY25 FY24 Non-GAAP Net Income per Share, Diluted GAAP net loss $(17,578) $(14,878) $(41,478) $(57,706) Add: GAAP provision for income taxes 15,675 9,774 23,187 28,477 GAAP loss before income taxes (1,903) (5,104) (18,291) (29,229) Add: Stock-based compensation expense and related payroll taxes 180,795 149,370 685,534 549,100 Amortization expense of acquired intangible assets 4,080 5,124 16,820 14,624 Restructuring and other charges 4,921 — 4,921 — Amortization of debt issuance costs 1,346 980 4,293 3,914 Acquisition-related expenses 1,316 — 1,316 — Non-GAAP net income before income taxes 190,555 150,370 694,593 538,409 Non-GAAP provision for income taxes 43,830 34,585 159,757 123,834 Non-GAAP net income $146,725 $115,785 $534,836 $414,575 GAAP provision for income taxes 15,675 9,774 23,187 28,477 Add: Income tax and other tax adjustments 28,155 24,811 136,570 95,357 Non-GAAP provision for income taxes $43,830 $34,585 $159,757 $123,834 Non-GAAP effective tax rate 23% 23% 23% 23% Non-GAAP net income $146,725 $115,785 $534,836 $414,575 Add: Non-GAAP interest expense, net of tax related to the convertible senior notes 183 276 1,011 1,104 Numerator used in computing non-GAAP net income per share, diluted $146,908 $116,061 $535,847 $415,679 GAAP net loss per share, diluted $(0.11) $(0.10) $(0.27) $(0.39) Stock-based compensation expense and related payroll taxes 1.09 0.93 4.20 3.44 Amortization expense of acquired intangible assets 0.02 0.03 0.10 0.09 Restructuring and other charges 0.03 — 0.03 — Amortization of debt issuance costs 0.01 0.01 0.03 0.02 Acquisition-related expenses 0.01 — 0.01 — Income tax and other tax adjustments (0.17) (0.15) (0.84) (0.60) Non-GAAP interest expense, net of tax related to the convertible senior notes — — 0.01 0.01 Adjustment to total fully diluted earnings per share 0.01 — 0.01 0.03 Non-GAAP net income per share, diluted $0.89 $0.72 $3.28 $2.60 Weighted-average shares used in computing GAAP net loss per share, diluted 156,496 151,497 154,404 149,586 Add: Outstanding potentially dilutive equity incentive awards 4,457 2,699 3,949 4,091 Add: Convertible senior notes 6,211 7,626 7,269 7,626 Less: Antidilutive impact of capped call transactions (1,580) (1,325) (2,210) (1,486) Weighted-average shares used in computing non-GAAP net income per share, diluted 165,584 160,497 163,412 159,817
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2025 Zscaler, Inc. All rights reserved Appendix A: GAAP to Non-GAAP Reconciliation (cont.) (in thousands, except percentages) Free Cash Flow Net cash provided by operating activities $250,604 $203,557 $972,453 $779,846 Less: Purchases of property, equipment and other assets (60,046) (49,384) (164,252) (144,588) Capitalized internal-use software (18,637) (17,855) (81,508) (50,308) Free cash flow $171,921 $136,318 $726,693 $584,950 Free Cash Flow Margin Net cash provided by operating activities, as a percentage of revenue 35% 34% 36% 36% Less: Purchases of property, equipment and other assets, as a percentage of revenue (8)% (8)% (6)% (7)% Capitalized internal-use software, as a percentage of revenue (3)% (3)% (3)% (2)% Free cash flow margin 24% 23% 27% 27% Q4'25 Q4'24 FY25 FY24 Calculated Billings Revenue $719,226 $592,868 $2,673,115 $2,167,771 Add: Total deferred revenue, end of period 2,468,026 1,894,974 2,468,026 1,894,974 Less: Total deferred revenue, beginning of period (1,984,985) (1,577,014) (1,894,974) (1,439,676) Calculated Billings $1,202,267 $910,828 $3,246,167 $2,623,069