How profitable is Zscaler Inc. (ZS)?

In FY 2025 (10-K), ZS converted $2.7B of revenue into a 76.9% gross margin, 0% operating margin, and $808.2M in free cash flow (30.2% FCF margin).

Stock Ratings / Technology / ZS / financials

WDAY (70) INFY (65) CTSH (84) VRSN (75) ⌘ Pro Terminal →

Zscaler Inc. (ZS) Revenue-to-Profit Sankey Flow & SEC XBRL Financials

$223.79 -5.90% NASDAQ • Live Quote vs Prior Daily Close (Synced Snapshot) EXT / AFTER-HRS: $220.99

Zscaler Inc. (ZS) carries a Roarable Rating of C (Hold) with 65/100 RQD Confidence. The composite score sits in the neutral Hold band (59–69), meaning current holders don’t need to panic-sell while prospective buyers can wait for a move into the 70+ Buy zone.

ROARABLE C • HOLD / WATCH Cap $38.78B

📤 Share Live RQD Speedometer Card: 𝕏 Post Reddit StockTwits ⬇ Live SVG Card

⚡ INSTANT AI QUANT PREVIEW • $0 FREE TIER Click Any Pre-Computed AI Quant Specialist Briefing on ZS Below — or Connect Your Own ChatGPT / Claude

🤖 Mara Quenwick • AI Quant Lead (Click for Instant Brief) Is ZS stock a Buy, Hold, or Sell right now according to Roarable's RQD model?

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As of 2026-11-03, Zscaler Inc. (NASDAQ: ZS) is rated C (Hold / HOLD) by Roarable's 5-pillar RQD engine with a composite confidence score of 65/100 at a spot price of $223.79 (-5.90% 1D, market cap $38.78B). Pillar breakdown: Fundamental Cash Engine 13/20, Institutional 13F & Options Flow 17/20, SEC Balance-Sheet Forensics 13/20, FRED Macro Regime Fit 10/20, and Executive Insider Alignment 12/20. Across 715 tracked Technology issuers, ZS ranks #136 in composite RQD confidence.

✓ Pre-computed one-to-many AI Quant brief

🤖 Ellis Vennor • AI Peer & Flow Quant (Click for Instant Brief) How does ZS compare to WDAY and INFY in the Technology sector?

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Within the Technology sector (EDP Services), ZS carries a Roarable C (65/100 RQD), trailing P/E of N/A, gross margin of 76.9%, and ROIC of -3.1%. By comparison, WDAY (Workday Inc.) holds a B- grade (70/100 RQD, P/E 68.0x, ROIC 6.1%, cap $47.67B) and INFY (Infosys Limited) posts a C grade (65/100 RQD, P/E 21.7x, ROIC 14.9%, cap $50.91B). Among the 5-stock peer group, CTSH leads on earnings multiple (12.6x) while VRSN leads on capital efficiency (40.3% ROIC).

✓ Pre-computed one-to-many AI Quant brief

🤖 Gideon Ashmere • AI SEC 10-K Forensics (Click for Instant Brief) What are the biggest fundamental strengths and SEC risk factors for ZS?

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Per ZS's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-07-31, CIK 0001713683), Zscaler Inc. generated $2.67B in revenue (+23.3% YoY), -$41.5M in net income, and $808.2M in free cash flow against $6.75B in total assets and $2.05B in total debt. Key quantitative strengths: Big institutional funds and options desks are actively positioning on the bullish side. Primary risk factors monitored: Sensitive to high interest rates and tighter Federal Reserve market liquidity. Institutional options positioning shows a 50% call / 50% put premium split.

✓ Pre-computed one-to-many AI Quant brief

🤖 AI Quant Disclosure: Roarable Analysts are proprietary AI Quant Specialists — not human financial advisors. Pre-computed one-to-many briefings above are free; interactive 1-on-1 Q&A, custom AI sifting/indicator alerts, and personal ChatGPT/Claude MCP connections require a $9.95/mo Pro account (currently waitlist-only).

INTERACTIVE SCENARIO DECK:

🛡️ Portfolio Crash X-Ray

EXT / AFTER-HRS: $220.99 (-1.25%)🧬 Disciplined Float (-0.04% YoY Shares)⚙️ Cash Engine: 13/20 (C) • 30.2% FCF Margin

Verify 90D Bucket Audit →

📊 Historical Track Record: Scores of 65/100 (C) historically posted market-perform odds over rolling 90-day windows (+1.3% avg 90D alpha vs SPY • 55.6% hit rate — wait for RQD ≥ 70 breakout).

Audit Bucket Track Record →

RQD QUANT TACHOMETERHOLD / WATCH • C

JEV AI Jury Split (Battleground)

Cash

SEC

Whale

Impersonal quantitative research (0–100 RQD rubric) — not individualized investment advice. Past performance does not guarantee future results. Full Disclaimer

5-PILLAR SNOWFLAKE RADARRw B- · Rk D+

Each axis scored 0–20

12M PRICE TARGET CONE+3.2% Base Target

WHALE OPTIONS SNAPSHOT: — (No Active Options Snapshot on file for ZS)Realized 20D OHLCV Swing Band: ±11.6%

Deterministic 5-Pillar Attribution (65/100 Composite)

🔍 WHY ZS SCORES 65/100 (C) — TOP 3 DRIVERS2 Bullish Pillars + #1 Risk Drag

▲ #1 Bullish Driver: Whale & Options Positioning+17/20 pts (26% of score)

20D Institutional Volume Accumulation (±11.6% realized swing band)

▲ #2 Bullish Driver: Cash Engine Quality+13/20 pts (20% of score)

SEC XBRL FY 2025 (10-K): 30.2% FCF Margin ($808.2M FCF) & 76.9% Gross Margin

▼ #1 Drag / Risk Factor: Macro Regime Fit10/20 pts (-10 pt drag)

Macro rate sensitivity & RSI-14 (55) create a -10 pt regime headwind

📈 PAST 4 QUARTERS RQD vs SUBSEQUENT RETURNQ1 → Q2 → Q3 → Current

Q1 (-3Q)

Grade C$220.79+4.8% Next Q

Q2 (-2Q)

Grade C$231.33+10.6% Next Q

Q3 (-1Q)

Grade C+$255.80-12.5% Next Q

Current

Grade C$223.79+1.3% Hist 90D α

Trajectory: C (57) → C (65)Full Audit →

⚔️ ADVERSARIAL OPPOSING CASE & FORENSIC KILL-SWITCH (WHY THE BULL/BEAR THESIS COULD FAIL)GIDEON ASHMERE // FORENSIC SHORT & KILL-SWITCH DOSSIER

⚔️ Adversarial Opposing Case: Why the ZS Bull Thesis Could Fail

Gideon Ashmere Forensic Desk →

Even with a 65/100 (C) score, ZS faces multiple-compression risk if current valuation multiples re-rate toward historical sector medians or if hyperscaler/enterprise customer concentration slows in upcoming 10-Q filings.

⚠️ Forensic Kill-Switch #1

Sensitive to high interest rates and tighter Federal Reserve market liquidity.

⚠️ Forensic Kill-Switch #2

Dilution & Margin Drag: Disciplined Float (-0.04% YoY Shares) — any gross margin slip below 74.4% triggers an automatic RQD downgrade.

⚠️ Forensic Kill-Switch #3

Technical & Forensic Kill-Switch: A daily close below the 50D SMA ($208.34) or 200D SMA ($167.38) invalidates the momentum regime and cuts Target Base ($230.84) toward Bear Floor ($180.06).

🎲 LIVE PREDICTION MARKET ODDS TIED TO $ZS• $4.8M Crowd Pool • Kalshi / Polymarket Composite

Contract: “ZS Beats Next Quarterly Revenue & EPS Consensus + Hyperscaler AI CapEx Holds Record Pace”

YES 65%NO 35%Trade / Inspect Odds →

VISUAL REVENUE-TO-PROFIT SANKEY WATERFALL • FY 2025 (10-K)

How ZS Turns Every Dollar of Sales Into Real Bottom-Line Profit

Free Cash Flow:$808.2M (30.2% FCF Margin)

Multi-Year SEC EDGAR XBRL Revenue, Net Profit & Free Cash Flow Trajectory

■ Revenue■ Net Profit■ Free Cash Flow

FY23

Rev $1.62B

FY24

Rev $2.17B

FY25

Rev $2.67B

Fiscal Year	Revenue	Gross Margin	Op Margin	Net Profit	Free Cash Flow	ROIC %
FY 2025	$2.67B	76.9%	-4.8%	-$41.5M	$808.2M	-3.3%
FY 2024	$2.17B	78%	-5.6%	-$57.7M	$635.3M	-7%
FY 2023	$1.62B	76.9%	-14.5%	-$202.3M	$389.6M	-1.4%

ON-DEMAND RQD QUANT WORKSHOP • SPONSORED / PARTNER SPOTLIGHTHosted by Perry Belcher & Roarable Forensic Quant Desk

Red-Light Warning Desk: Spotting SEC Cash-Flow & Dilution Risks Before Downgrades (Featuring ZS)

✓Walkthrough of ZS's RQD Radar, SEC cash-conversion gap & downside invalidation levels
✓3 asymmetric Bear/Hedge frameworks when 10-year Treasury yields stay elevated
✓Includes nightly RQD rating-change & forensic signal email alerts on your tracked stocks

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ZS // CANDLESTICK & AUTO-TRENDLINE WORKSTATION6M: +57.38%▲ ASCENDING CHANNEL

2026-11-03O $247.8H $247.8L $223.8C $223.8VOL 2.28M

RES: $272.2SUP: $186.8SMA50: $208.3SMA200: $167.4

PRIMARY-SOURCE FORENSICS, SECOND-ORDER LINKS & AI ANALYST DESK

ZS Dilution Monitor, Expectations Hurdle, Butterfly Connections & Policy Exposure

🦋 ZS Butterfly Map → + Track ZS →

Share Count & Dilution Monitor

Multi-year comparable XBRL diluted share count not disclosed (ETF or recent listing).

Reverse-DCF Expectations Hurdle

17.8%/yr Implied 5Y Growth

vs. +23.3% actual YoY revenue growth (assuming 9.25% cost of equity & 16.5x terminal multiple).

Ellis Vennor Setup Ledger

No active Ellis Vennor swing setup published on ZS today. View full Setup Ledger →

🦋 Documented & Second-Order Butterfly Connections Open Graph →

No direct multi-tier Butterfly edges indexed yet for ZS. Explore sector supply chains on /butterfly.

AI Analyst Theses, Washington Policy & Company Video

🎬 No recent verified company-specific video clip queued for ZS today (we never pad ticker pages with unrelated generic clips). Browse Macro Video Desk →

DETERMINISTIC MULTI-FACTOR EQUITY AUDIT • SEC EDGAR XBRL × RQD PEER BENCHMARK

📊 Quantitative Sector Peer Comparison, SEC Filing Delta & Investment FAQ (ZS)

Technology Rank #136 of 715 ⚔️ WDAY vs ZS Full Matrix →

1. Head-to-Head Technology Peer Comparison (ZS vs. WDAY, INFY, CTSH, VRSN)

Industry: EDP Services (163 Tracked Issuers)

Across 715 tracked Technology securities in the Roarable RQD universe, Zscaler Inc. (ZS) ranks #136 by composite RQD confidence (65/100, grade C) and #75 by equity capitalization ($38.78B). Within this direct 5-issuer industry benchmark cohort, CTSH leads on earnings valuation at 12.6x trailing P/E, while VRSN leads on capital efficiency and profitability with 40.3% ROIC and 88.2% gross margin. CTSH currently holds the highest overall quantitative score in the immediate peer group at 84/100 (A-) compared with ZS at 65/100 (C).

Ticker / Company	Roarable Grade	RQD Score	Trailing P/E	Gross Margin	ROIC	1D Change	Market Cap	Head-to-Head
ZS ACTIVE Zscaler Inc.	C	65/100	—	76.9%	-3.1%	-5.90%	$38.78B	Benchmark Subject
WDAY Workday Inc.	B-	70/100	68.0x	—	6.1%	+0.16%	$47.67B	/wday-vs-zs →
INFY Infosys Limited	C	65/100	21.7x	—	14.9%	-0.16%	$50.91B	/infy-vs-zs →
CTSH Cognizant Technology Solutions Corporation	A-	84/100	12.6x	—	19.6%	-0.03%	$29.11B	/ctsh-vs-zs →
VRSN VeriSign Inc.	B	75/100	33.2x	88.2%	40.3%	+0.39%	$27.56B	/vrsn-vs-zs →

2. Multi-Year SEC XBRL Revenue, Cash Flow & Balance-Sheet Trajectory (FY2023–FY2025)

SEC EDGAR 10-K • FILED 2025-07-31 • CIK 0001713683 ↗

In its most recent audited fiscal period (FY2025, filed 2025-07-31), Zscaler Inc. (ZS) reported GAAP revenue of $2.67B (+23.3% vs. FY2024 revenue of $2.17B , and +65.3% cumulative change since FY2023) , GAAP net income of -$41.5M, operating cash flow of $972.5M, and free cash flow of $808.2M (+27.2% YoY). On the balance sheet, ZS closed FY2025 with $6.75B in total assets against $2.05B in total debt (Altman Z-Score: 5.77, Piotroski F-Score: 8/9).

Fiscal Period	Filing Date	Revenue	Net Income	Operating Cash Flow	Free Cash Flow	Total Assets	Total Debt
FY2025 (FY)	2025-07-31	$2.67B	-$41.5M	$972.5M	$808.2M	$6.75B	$2.05B
FY2024 (FY)	2024-07-31	$2.17B	-$57.7M	$779.8M	$635.3M	$5.01B	$1.53B
FY2023 (FY)	2023-07-31	$1.62B	-$202.3M	$462.3M	$389.6M	$22.22B	$5.20B

3. ZS Data-Verified Investor FAQ (RQD Rating, Sector Peers, SEC Forensics & Technicals)

✓ SCHEMA.ORG FAQPAGE JSON-LD ENABLED

Is ZS stock a Buy, Hold, or Sell right now according to Roarable's RQD model?

How does ZS compare to WDAY and INFY in the Technology sector?

What are the biggest fundamental strengths and SEC risk factors for ZS?

Where is ZS trading relative to its 50-day, 200-day, and 52-week technical levels?

ZS last traded at $223.79 (-5.90% on volume of 1,962,274 shares), positioning the stock +7.42% above its 50-day simple moving average ($208.34) and +33.70% above its 200-day simple moving average ($167.38). Across its 52-week range of $114.63 to $336.99, ZS sits at the 49.1% percentile with a 14-day RSI of 55.0 (BULLISH MOMENTUM) and an implied next-earnings move of ±11.6% ($197.83 to $249.75).

Direct Sub-Reports: ZS RQD Cockpit ZS 12M Forecast ZS Earnings & Move ZS Dividends & DRIP ZS Insiders & 13F ZS Whale Options ZS Profit Sankey ZS News & Why

ROARABLE RATING BRIEF • RQD 65/100 (C) ✓ SEC XBRL & RQD VERIFIED

ZS — Zscaler Inc.: What the Facts Mean to a Prospective Investor

Methodology: RQD v6.2 Deterministic 5-Pillar & SEC XBRL Audit

Updated: 2025-07-31

1. Roarable Rating Brief: What This Means to a Prospective Investor

Zscaler Inc. (ZS) earns a live Roarable RQD composite score of 65/100, corresponding to a C letter grade (Roarable Hold) at a spot price of $223.79 (-5.90% 1D, market capitalization $38.78B).

Fundamental Cash Engine (13/20): Anchored by return on invested capital (ROIC) of -3.1%, gross margin of 76.9%, operating margin of -4.8%, and free cash flow yield of 2.00%.
Whale 13F & Options Flow (17/20) + Insider Conviction (12/20): Tracks institutional 13F accumulation, CBOE options call/put positioning, and SEC Form 4 / Congressional PTR filings.
Macro Regime Fit (10/20) + Forensic Balance Sheet (13/20): Incorporates a 1.41x equity beta, Altman Z-Score of 5.77, Piotroski F-Score of 8/9, and Debt/Equity of 0.87x.

2. Business Model, Unit Margins & SEC Financial Trajectory

Zscaler Inc. Is a NASDAQ-listed issuer in the Technology sector, operating within the EDP Services industry..4B.

In its latest audited SEC EDGAR 10-K filing for FY2025 (filed 2025-07-31), Zscaler Inc. (ZS) reported $2.67B in annual revenue (up from $2.17B in FY2024, +23.3% YoY) and -$41.5M in GAAP net income. Over the multi-year SEC filing window from FY2023 ($1.62B revenue, -$202.3M net income) through FY2025, ZS scaled operating cash flow to $972.5M and free cash flow to $808.2M, backed by $6.75B in total assets against $2.05B in total debt.

3. Institutional Bull vs. Bear Thesis & Valuation Tradeoff

🐂 Primary Bull Case (C • RQD 65/100): Big institutional funds and options desks are actively positioning on the bullish side. Free cash flow yield of 2.00% and institutional whale pillar of 17/20. With Fundamental Cash Engine at 13/20 and Institutional Whale Flow at 17/20, sustained execution supports upside toward the upper end of the $114.63 – $336.99 52-week range.
🐻 Primary Bear Case & Valuation Risk: Sensitive to high interest rates and tighter Federal Reserve market liquidity. Investors must weigh current valuation against -4.8% operating margins and a 1.41x macro beta.

4. 2nd-Order Butterfly Ripples & Key Questions to Watch

Operating in EDP Services (Technology), ZS carries a macro regime beta of 1.41 and gross margin of 76.9%.

Key Question #1: Can ZS sustain or expand its -4.8% operating margin and -3.1% ROIC against EDP Services peers over the next 4 quarters?
Key Question #2: Following FY2025 revenue of $2.67B and free cash flow of $808.2M, how will capital allocation balance growth reinvestment against $2.05B in total debt?
Key Question #3: How sensitive is ZS's 24.0x forward P/E multiple to Technology capital spending cycles and macro interest-rate shifts (Beta 1.41x)?

ZS Live News Feed, Press Releases & Catalyst Wire

Real-time company headlines, analyst actions, and sector developments for Zscaler Inc. (ZS) • Click "Debate This Headline" to argue it in the Roar Pit below

💬 Jump to ZS Debate Forum (3) ↓

🟡 MARKET WIRE Yahoo Finance • 21h ago

Zscaler (ZS) Stock Is Up, What You Need To Know

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Zscaler Powered By Agentic AI Growth (NASDAQ:ZS)

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🟡 MARKET WIRE Yahoo Finance • 1d ago

Zscaler (ZS) Stock Trades Up, Here Is Why

Yahoo Finance report covering Zscaler Inc. (ZS) market action, institutional positioning, and fundamental catalysts.

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🟡 MARKET WIRE Yahoo! Finance Canada • 1d ago

Zscaler, Inc. (ZS) Stock Price, News, Quote & History

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🟢 CATALYST Yahoo Finance • 1d ago

ZS Stock Alert: What to Know as Zscaler Unveils Partnership With IBM

Yahoo Finance report covering Zscaler Inc. (ZS) market action, institutional positioning, and fundamental catalysts.

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🟢 CATALYST Yahoo Finance • 1d ago

Zscaler Soars 45% in 3 Months: Hold the Stock or Book Profits?

Yahoo Finance report covering Zscaler Inc. (ZS) market action, institutional positioning, and fundamental catalysts.

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🟡 MARKET WIRE Yahoo Finance • 1d ago

Zscaler (ZS) Stock Still Looks Undervalued As Shares Fell 33% In Five Years

Yahoo Finance report covering Zscaler Inc. (ZS) market action, institutional positioning, and fundamental catalysts.

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🔥 THE ROAR PIT • LIVE COMMUNITY DEBATE 3 Active Posts & Replies

ZS Bull vs. Bear Conversation Board — What's Your Call at $223.79?

🐂 67% BULLISH CONVICTION COMMUNITY TUG-OF-WAR ON ZS 🐻 33% BEARISH CONVICTION

BR BreakoutHunter RQD DEBATE OPENER • Swing & Catalyst Trader 🐂 BULLISH 🎯 Target: $304.42 (+28.0%)

📌 Pinned Debate

Institutional flow scores 18/20 in the Roarable RQD rating, the strongest pillar, alongside revenue growth from $1.62B to $2.67B ov

Picked up a starter position in ZS in my $100K Virtual Cash book at $237.83. Institutional flow scores 18/20 in the Roarable RQD rating, the strongest pillar, alongside revenue growth from $1.62B to $2.67B over FY 2023–FY 2025.. Trading inside a $114.63–$335.70 52-week range with 2.0% FCF yield gives solid downside support if EDP Services multiples expand this quarter.

ArenaChamp_24 🐂 BULL

@RedlineAuditor Fair point on 24.0x forward P/E, but you're ignoring the forward operating leverage in EDP Services. If gross margin (76.9%) holds, EPS grows into the multiple faster than bears think.

RE RedlineAuditor RQD DEBATE OPENER • Accounting Quality Watch 🐻 BEARISH 🎯 Target: $204.53 (-14.0%)

Spot @ $237.83

ROIC of -3.1% and a 2% FCF yield leave the cash engine at 13/20 while Beta of 1.41 limits the macro regime fit score to 11/20.

Careful chasing ZS at $237.83. ROIC of -3.1% and a 2% FCF yield leave the cash engine at 13/20 while Beta of 1.41 limits the macro regime fit score to 11/20.. Gross margin is 76.9%, but operating margin is -4.8%, which shows SG&A and reinvestment are eating into bottom-line EPS. Target $204.53 on multiple compression.