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Jan 31
Zscaler Q2 2025 Earnings Report
Zscaler reported strong Q2 2025 revenue growth with expanding profitability and increased billings.
Key Takeaways
Zscaler reported Q2 2025 revenue of $647.9 million, growing 23% year-over-year. GAAP net loss improved to $7.7 million from $28.5 million a year ago, while non-GAAP net income grew to $127.1 million. Calculated billings increased by 18% to $742.7 million, and free cash flow reached $143.4 million. The company continues to see demand for its Zero Trust security platform, driving revenue growth and strong financial performance.
Total Q2 revenue grew 23% YoY to $647.9 million.
GAAP net loss improved to $7.7 million from $28.5 million YoY.
Non-GAAP net income reached $127.1 million, up from $99.4 million.
Calculated billings grew 18% YoY to $742.7 million.
Zscaler
Zscaler
Forward Guidance
Zscaler expects Q3 FY25 revenue of $665M to $667M, with non-GAAP EPS between $0.75 and $0.76. Full-year revenue is forecasted between $2.64B and $2.654B, with non-GAAP EPS of $3.04 to $3.09.
Positive Outlook
- Q3 FY25 revenue expected between $665M-$667M.
- Full-year revenue forecasted at $2.64B-$2.654B.
- Non-GAAP income from operations expected to increase.
- Strong demand for Zero Trust solutions driving growth.
- Free cash flow generation remains robust.
Challenges Ahead
- GAAP operating losses persist despite revenue growth.
- Stock-based compensation remains a high expense.
- Macroeconomic uncertainties could impact future demand.
- R&D expenses continue to rise, pressuring margins.
- Geopolitical and cybersecurity risks remain a concern.