- Financial results (Q3 fiscal year 2025):**
- Sales increased by 23% year-on-year and reached USD 678.0 million.
- Calculated billings grew by 25% to USD 784.5 million.
- Deferred revenue increased by 26% to USD 1,985.0 million.
- While a net loss of USD 4.1 million was recorded under GAAP (compared to net income of USD 19.1 million in the previous year), non-GAAP net income rose from USD 113.0 million to USD 136.8 million.
- **Business development and strategic initiatives:**
- CEO Jay Chaudhry emphasized that increasing customer adoption of the Zero Trust Exchange platform was the foundation for the strong Q3 results.
- The company is increasingly investing in security solutions around Artificial Intelligence (AI) in order to be able to use both public and private AI applications securely.
- Management changes and personnel reinforcements: Kevin Rubin has been appointed as the new CFO and Raj Judge has joined the Executive Board and is active as EVP Corporate Strategy & Ventures.
- In May 2025, Zscaler concluded a definitive acquisition agreement for Red Canary, a leading provider in the field of Managed Detection and Response (MDR).
- Zscaler is also positioned as a Leader in the Gartner® Magic Quadrant™ for Security Service Edge and in the IDC MarketScape for Data Loss Prevention (DLP).
- With the introduction of Zscaler Asset Exposure Management, the company is expanding its Continuous Threat Exposure Management (CTEM) product offering.
- **Outlook and adjustments to key financial figures:**
- For the fourth quarter of 2025, revenue is expected to be approximately USD 705-707 million, non-GAAP income from operations is expected to be USD 152-154 million and non-GAAP net income per share is expected to be approximately USD 0.79-0.80.
- For the full year, Zscaler expects revenue of approximately $2.659-2.661 billion, billings of approximately $3.184-3.189 billion and continued solid non-GAAP earnings.
- Beginning August 1, 2024, a long-term projected non-GAAP tax rate of 23% will be used to provide a more consistent presentation of operating performance.
- **Other operational highlights:**
- Several security reports (including the 2025 AI Security Report, VPN Risk Report and Phishing Report) underline that the use of AI/ML tools in companies has risen sharply and that new cyber threats need to be addressed more intensively.
- Strategic partnerships and customer references, such as the modernization of the T-Mobile infrastructure with the Zero Trust Exchange solution and the integration of Zscaler solutions into the AWS Marketplace for US intelligence agencies, demonstrate the broad market acceptance and application of the technology.
