Investor Overview

100% cloud-based SaaS subscription business model

  • First mover in 2007, now at scale
  • Redefining network security, with the world’s largest inline security cloud platform

  • $100 billion plus serviceable market opportunity across 335 million users, 150 million workloads, 1.5 billion IoT/OT devices and MDR serviceable market
  • 6x upsell opportunity on user pillars

  • Digital transformation is top-of-mind
  • Agentic AI, Cloud shift, mobility, rising cybersecurity threats, IoT/OT, 5G

  • Unique architecture, in the path of customer data, creating measurable value
  • Virtuous cycle of growing scale, focused innovation, and data / insight

Key Metrics

Leader in
Cloud Security

~$3.4B

(Q2’26)

Annual Recurring
Revenue

Strong Growth and Cash Flow:
Above “Rule-of-40”

26%

(Q2’26)

Revenue Growth
Year-Over-Year

 
21%

(Q2’26)

Free Cash
Flow Margin

Highly Scalable
Cloud Economics

80%

(Q2’26, Non-GAAP)

Gross Margin

Remaining Performance
Obligation (RPO)

~$6.1B

(Q2’26)

RPO growth of 
31% Y/Y

Latest Quarterly Results

Latest Quarterly Results

$648M

Q2’25

$816M

Q2'26

26% Revenue
Growth

$2,683M

Q2’25

$3,359M

Q2’26

25% ARR
Growth

$4,615M

Q2’25

$6,051M

Q2’26

31% RPO
Growth

728

Customers $1M+ ARR

18%

Growth

3,886

Customers $100K+ ARR​

18%

Growth

~40%

of the
GLOBAL 2000

>45%

of the
FORTUNE 500

80%

Non-GAAP
Gross Margin

22%

Non-GAAP
Operating Margin

~21%

Free Cash
Flow Margin

$3.5B

Cash & Short-
Term Investments

“We believe Zscaler is the cybersecurity platform for the AI age - our in-line Zero Trust platform is uniquely architected to secure the unprecedented speed and scale of AI and agentic workflows. Organizations racing to adopt AI are looking to us to provide the security solution they trust, and we're just scratching the surface of this massive future growth opportunity,” said Jay Chaudhry, CEO, Chairman and Founder of Zscaler. “We continue to see robust demand across all three of our growth pillars: AI Security, Zero Trust Everywhere, and Data Security, giving us a highly durable runway for long-term growth.”

Jay Chaudhry

Jay Chaudhry

Chairman and CEO of Zscaler

Zscaler Built From Scratch

Built From Scratch Info
+ Control Plane
+ Enforcement Plane
+ Logging Plane

A highly scalable and ultra-fast multi-tenant cloud security architecture

  • Over 700 patents issued and pending
  • Multi-tenant architecture
  • Distributed across 160+ edge locations
  • Direct peering with the largest Internet destinations
Explore our infographic

Control plane

Zscaler Central Authority (CA) monitors our entire security cloud and provides a central location for software and database updates, policy and configuration settings and threat intelligence. The collection of CA instances together act like the brain of the cloud, and they are geographically distributed for redundancy and performance.

Data plane

Customer traffic gets directed to the nearest Zscaler Enforcement Node (ZEN), where security, management and compliance policies are enforced. Our differentiated authentication and policy distribution mechanism that enables any user to connect to any ZEN at any time to ensure full policy enforcement. ZEN utilizes a full proxy architecture for in-line traffic inspection and is built to ensure data is not written to disk to maintain the highest level of data security. Logs are continuously created in memory and forwarded to our logging module.

Log Plane

Compressed logs are transmitted to our Nanolog Servers over secure connections and multicast to multiple servers for redundancy. Our dashboards provide visibility into our customer’s traffic to enable troubleshooting, policy changes and other administrative actions. Our analytics capabilities allow customers to interactively mine billions of transaction logs to generate reports that provide insight on network utilization and traffic. Regardless of where users are located, customers can choose to have logs stored in the US, the EU or Switzerland as well as streamed to a third-party SIEM.

Platform Extensibility with SSMA

The Zscaler Zero Trust Exchange employs a single-scan, multi-action (SSMA) architecture to minimize latency, improve user experience, and enable an integrated, extensible platform.

Single-Scan

Traffic is entered into memory only once

Multi-Action

Multiple security engines simultaneously inspect the packet

Extensibility

New inspection engines can be added over time, without impacting performance

Single Scan Multi-Action Flow
SSL Inspection

SSL/TLS Inspection at Scale
with Proxy Architecture

Zscaler has invested heavily into building a ‘proxy' based architecture that deeply inspects network traffic at an enormous scale, including SSL/TLS encrypted traffic. Think about it like a postal service.

Zscaler

Stop every envelope, open and inspect the contents…
if all is safe, then seal the envelope and send to recipient

Next-Gen Firewall

As an envelope passes, read the shipping label…
if it seems OK, then let it flow past

Industry Reports & Corporate Presentations

eBook

Seven Elements of Highly Successful Zero Trust Architecture

Industry Report

Gartner Report: Magic Quadrant for Security Service Edge

Industry Report

Gartner Market Guide for Zero Trust Network Access (ZTNA)