Filing Flows › Zscaler (ZS) › Q3 FY25
Zscaler (ZS) Q3 FY25 earnings results (third quarter fiscal 2025)
10-Q filed May 29, 2025
Zscaler (ZS) reported revenue of $678M for the third quarter fiscal 2025 (Q3 FY25), +23% from a year earlier and +5% from the quarter before. Operating margin was -3.7%, net loss $4.1M (0.6% of revenue).
Zscaler, Q3 FY25: revenue $678M (+23% year over year), operating margin -3.7%, net loss $4.1M, operating cash flow $211M. The chart follows the revenue to costs, profit and cash.
| Q3 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $678M | +5% | +23% |
| Operating profit | −$25.4M | — | — |
| Net earnings | −$4.1M | — | — |
| Operating cash flow | $211M | +18% | +22% |
| Free cash flow | $139M | -16% | +0.8% |
What changed
Revenue was $678.0M in Q3 FY25, up 23% year over year and up 5% from the previous quarter.
Gross margin was 77.0%, down 1.6 points from a year earlier. Operating costs exceeded revenue by $25.4M, an operating margin of -3.7%. Operating expenses grew 25% against revenue growth of 23%. The fastest-growing cost line was Research & development (+36%). The quarter ended with a net loss of $4.1M, narrower than the previous quarter's $7.7M loss. Non-operating items added $30.0M, 657% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $211.1M (up 22% year over year). Non-cash charges added back $28.2M of depreciation and amortization and $159.4M of share-based compensation. Working capital and other items added $27.6M. Capital expenditures of $72.2M left free cash flow of $138.9M.
Questions
What was Zscaler's revenue in the third quarter fiscal 2025?
Zscaler (ZS) reported revenue of $678M for the third quarter fiscal 2025 (Q3 FY25), +23% from a year earlier and +5% from the quarter before.
Was Zscaler profitable in the third quarter fiscal 2025?
Operating loss was $25.4M (-3.7% of revenue) and net loss $4.1M.
Source: Zscaler 10-Q on SEC EDGAR.