NASDAQ$ZS

Zscaler Inc · Q2 2025 earnings

Q2 2025 earnings · · After market close · Investor relations

Briefing

Zscaler reported strong Q2 2025 revenue growth with expanding profitability and increased billings.

Zscaler reported Q2 2025 revenue of $647.9 million, growing 23% year-over-year. GAAP net loss improved to $7.7 million from $28.5 million a year ago, while non-GAAP net income grew to $127.1 million. Calculated billings increased by 18% to $742.7 million, and free cash flow reached $143.4 million. The company continues to see demand for its Zero Trust security platform, driving revenue growth and strong financial performance.

  • Total Q2 revenue grew 23% YoY to $647.9 million.
  • GAAP net loss improved to $7.7 million from $28.5 million YoY.
  • Non-GAAP net income reached $127.1 million, up from $99.4 million.
  • Calculated billings grew 18% YoY to $742.7 million.

Headline financials

Total Revenue

$648M

Previous: $525M+23.4%
EPS (adj)

$0.78

Previous: -$0.19+510.5%
Cash Flow from Operations

$179M

No prior period
Annual Recurring Revenue

$2.69B

No prior period
Total Deferred Revenue

$1.88B

No prior period
Capital Expenditures

-$32M

Previous: -$59.6M+46.2%
Net Income

-$7.72M

Previous: -$28.5M+72.9%
Operating Income

-$40.1M

Previous: -$45.5M+11.7%
Gross Profit

$499M

Previous: $408M+22.5%

Revenue & EPS history

Zscaler · Revenue · Quarterly

$648M

Q2 2025+23.4%vs Q2 2024
Beat estimate in 15 of 15 quarters(100%)
ActualEstimate

Forward guidance

Zscaler expects Q3 FY25 revenue of $665M to $667M, with non-GAAP EPS between $0.75 and $0.76. Full-year revenue is forecasted between $2.64B and $2.654B, with non-GAAP EPS of $3.04 to $3.09.

Tailwinds

  • Q3 FY25 revenue expected between $665M-$667M.
  • Full-year revenue forecasted at $2.64B-$2.654B.
  • Non-GAAP income from operations expected to increase.
  • Strong demand for Zero Trust solutions driving growth.
  • Free cash flow generation remains robust.

Headwinds

  • GAAP operating losses persist despite revenue growth.
  • Stock-based compensation remains a high expense.
  • Macroeconomic uncertainties could impact future demand.
  • R&D expenses continue to rise, pressuring margins.
  • Geopolitical and cybersecurity risks remain a concern.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2025

Historical avgQ2 2025

+2.0%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+2.6%

Avg return

30 days after

41%

13 / 32 earnings

Positive

+31.6%

Q3 2020

Best reaction

-21.4%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026-3.0%-6.7%-20.4%
Q1 2026-6.8%-16.0%-20.4%
Q4 2025-1.5%+2.6%+11.2%
Q3 2025+10.0%+18.2%+25.6%
Q2 2025+2.9%+1.5%-11.1%
Q1 2025-3.8%+2.6%-12.7%
Q4 2024-21.4%-21.6%-15.2%
Q3 2024+3.4%+2.9%+16.9%
Q2 2024-7.6%-13.0%-18.8%
Q1 2024+0.4%+2.6%+16.5%
Q4 2023-0.0%+1.5%-3.2%
Q3 2023+5.1%+12.9%+8.0%
Q2 2023-7.2%-8.2%-9.0%
Q1 2023-3.3%-13.1%-16.1%
Q4 2022+27.3%+22.7%+15.2%
Q3 2022+20.7%+15.5%+28.8%
Q2 2022-7.3%+3.5%-3.8%
Q1 2022-10.6%-12.0%-8.8%
Q4 2021-3.6%-1.7%-5.0%
Q3 2021+11.4%+11.4%+25.9%
Q2 2021-1.3%-2.5%-18.3%
Q1 2021+22.4%+17.4%+31.7%
Q4 2020-0.4%-2.3%+14.1%
Q3 2020+31.6%+42.5%+42.2%
Q2 2020-16.4%-22.6%-17.7%
Q1 2020-2.4%-8.6%-7.3%
Q4 2019-19.9%-23.4%-23.7%
Q3 2019-3.5%+1.1%+7.7%
Q2 2019+19.4%+13.4%+39.8%
Q1 2019+9.9%+3.2%+0.5%
Q4 2018-5.4%+3.4%-16.3%
Q3 2018+25.4%+36.9%+26.2%
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2016
Q1 2016
Q4 2016
Q3 2016

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