Filing Flows › Zscaler (ZS) › Q2 FY25
Zscaler (ZS) Q2 FY25 earnings results (second quarter fiscal 2025)
10-Q filed Mar 10, 2025
Zscaler (ZS) reported revenue of $648M for the second quarter fiscal 2025 (Q2 FY25), +23% from a year earlier and +3% from the quarter before. Operating margin was -6.2%, net loss $7.7M (1.2% of revenue).
Zscaler, Q2 FY25: revenue $648M (+23% year over year), operating margin -6.2%, net loss $7.7M, operating cash flow $179M. The chart follows the revenue to costs, profit and cash.
| Q2 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $648M | +3% | +23% |
| Operating profit | −$40.1M | — | — |
| Net earnings | −$7.7M | — | — |
| Operating cash flow | $179M | -46% | +26% |
| Free cash flow | $164M | -48% | +48% |
What changed
Revenue was $647.9M in Q2 FY25, up 23% year over year and up 3% from the previous quarter.
Gross margin was 77.1%, down 0.6 points from a year earlier. Operating costs exceeded revenue by $40.1M, an operating margin of -6.2%. Operating expenses grew 19% against revenue growth of 23%. The fastest-growing cost line was Research & development (+40%). The quarter ended with a net loss of $7.7M, narrower than the previous quarter's $12.1M loss. Non-operating items added $23.6M, -143% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $179.4M (up 26% year over year). Non-cash charges added back $172.1M of share-based compensation. Working capital and other items added $15.0M. Capital expenditures of $15.0M left free cash flow of $164.4M.
Questions
What was Zscaler's revenue in the second quarter fiscal 2025?
Zscaler (ZS) reported revenue of $648M for the second quarter fiscal 2025 (Q2 FY25), +23% from a year earlier and +3% from the quarter before.
Was Zscaler profitable in the second quarter fiscal 2025?
Operating loss was $40.1M (-6.2% of revenue) and net loss $7.7M.
Source: Zscaler 10-Q on SEC EDGAR.