ZS — what changed in the latest 10-K

Text added vs the prior filing · source: 10-K · 2026-09-03

• We are the cybersecurity platform for the AI era. We empower our customers with the cybersecurity solutions necessary to protect their enterprises, drive growth and outpace competitors where success depends on securely adopting the technologies required to operate and compete effectively in an AI wo…

• The traditional model of enterprise security built around hub-and-spoke networks, firewalls and virtual private networks, or VPNs, was designed to protect a fixed perimeter. With rapid and increasing cloud adoption, workforce mobility and the emergence of an autonomous agentic workforce, traditional…

• Enterprises have moved applications from the data center to the cloud, workforce mobility has dissolved the office perimeter and enterprises must securely access applications and data, wherever they are hosted, from any device, anywhere in the world. The emergence and rapid adoption of AI have accel…

• Our Zscaler Zero Trust ExchangeTM security platform is a cloud-native security solution that is purpose-built to securely connect users, devices, workloads and AI agents to applications, AI models and data based on identity and business policy, rather than network location. Our platform was designed…

• Our Zero Trust Exchange represents a fundamentally different architectural design and approach to networking and security that allows companies to securely accelerate their digital transformation and AI initiatives. As threat actors increasingly leverage AI to develop faster, autonomous and more sop…

Text removed vs the prior filing · source: 10-K · 2025-09-11

• We enable our customers to succeed in a digital world where technology decisions not only impact growth and competitiveness, but also directly impact enterprise risk. We were incorporated in 2007, during the early stages of cloud adoption and mobility, based on a vision that the internet would becom…

• We correctly predicted that with rapid cloud adoption and increasing workforce mobility, traditional perimeter security approaches would fail to protect users and data, become prohibitively expensive and deliver poor user experience. Enterprises now rely on external software as a service, or SaaS, a…

• Our cloud native, multitenant architecture is distributed across more than 160 public exchanges globally and thousands of private exchanges at the edge, which brings security and business policy close to users and devices in over 185 countries and provides fast, secure and reliable access. Each day,…

• Many of the largest enterprises and government agencies in the world rely on our solutions to help them accelerate their move to the cloud. We have over 9,400 customers across all major geographies, with an emphasis on larger organizations, and we currently count approximately 40% of the Forbes Glob…

• We have experienced significant growth, with revenue increasing from $1,617.0 million in fiscal 2023 to $2,167.8 million in fiscal 2024 to $2,673.1 million in fiscal 2025, representing year-over-year revenue growth of 34% and 23%, respectively. We experienced net losses of $41.5 million, $57.7 milli…

Text added vs the prior filing · source: 10-K · 2026-09-03

• •if we fail to develop or introduce new enhancements to our cloud platform, including AI enhancements, our ability to attract and retain customers and remain competitive could be impaired;

• customers. These factors significantly impact our ability to add new customers and increase the time, resources and sophistication required to do so.

• In addition, numerous other factors, many of which are out of our control, have impacted, and may in the future impact, our ability to add new customers, including:

• •competition from hybrid, cloud or legacy security products;

• length of our subscription contracts. Our customer retention and expansion may decline or fluctuate as a result of a number of factors, including our customers’ satisfaction with our services, our prices and pricing plans, our customers’ spending levels, decreases in the number of services purchased…

Text removed vs the prior filing · source: 10-K · 2025-09-11

• In addition, numerous other factors, many of which are out of our control, have impacted and may in the future impact our ability to add new customers, including:

• acquisitions involving our customers, competition and deteriorating or uncertain general economic conditions, which may result in reductions in IT budgets and lower employee headcounts.

• In addition, we believe that our corporate culture has been a contributor to our success, which we believe fosters innovation, teamwork and an emphasis on customer-focused results. We also believe that our culture creates an environment

• that drives and perpetuates our strategy and cost-effective distribution approach. In the past we have, and in the future we may, restructure or reduce our workforce to align people, roles and projects to our strategic priorities. Any restructuring, reduction or realignment in the workforce has the …

• vendors. As a result, these organizations may prefer to purchase from their existing suppliers rather than add or switch to a new supplier.

Text added vs the prior filing · source: 10-K · 2026-09-03

• For a discussion of our results of operations for the year ended July 31, 2025 as compared to the year ended July 31, 2024, refer to Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of our Annual Report on Form 10-K filed with the SEC on Septemb…

• We empower our customers with the cybersecurity solutions necessary to protect their enterprises, drive growth and outpace competitors where success depends on securely adopting the technologies required to operate and compete effectively in an AI world. We were founded in 2007, based on a vision th…

• We generate revenue primarily from sales of subscriptions to access our cloud platform, together with related support services. We also generate an immaterial amount of revenue from professional and other services, which consist primarily of fees associated with mapping, implementation, network desi…

• We operate our business as one reportable segment. Our revenue has experienced significant growth in recent periods. For fiscal 2026, fiscal 2025 and fiscal 2024, our revenue was $3,352.5 million, $2,673.1 million and $2,167.8 million, respectively. We have incurred net losses in all annual periods …

• Cloud adoption, workforce mobility and the rapid emergence of AI have fundamentally altered enterprise IT architectures and security requirements.

Text removed vs the prior filing · source: 10-K · 2025-09-11

• Zscaler was incorporated in 2007, during the early stages of cloud adoption and mobility, based on a vision that the internet would become the new corporate network as the cloud becomes the new data center. We correctly predicted that with rapid cloud adoption and increasing workforce mobility, trad…

• We generate revenue primarily from sales of subscriptions to access our cloud platform, together with related support services. We also generate an immaterial amount of revenue from professional and other services, which consist primarily of fees associated with mapping, implementation, network desi…

• We operate our business as one reportable segment. Our revenue has experienced significant growth in recent periods. For fiscal 2025, fiscal 2024 and fiscal 2023, our revenue was $2,673.1 million, $2,167.8 million and $1,617.0 million, respectively. We have incurred net losses in all annual periods …

• Changes in macroeconomic and geopolitical conditions can cause uncertainty in our business. We continue to see customer scrutiny of and elongated approval processes for transactions, particularly larger deals, as customers continue to carefully consider purchasing decisions and are requiring multipl…

• Increased Internet Traffic and Adoption of Cloud-Based Software and Security

Text added vs the prior filing · source: 10-K · 2026-09-03

• As the 2028 Notes have a 0.0% interest rate, we do not have economic interest rate exposure on the unhedged portion of the 2028 Notes. However, the fair value of the 2028 Notes is exposed to interest rate risk. Generally, the fair value of the 2028 Notes will increase as interest rates fall and decr…

Text removed vs the prior filing · source: 10-K · 2025-09-11

• The 2028 Notes have a 0.0% interest rate, we do not have economic interest rate exposure on the 2028 Notes. However, the fair value of the 2028 Notes is exposed to interest rate risk. Generally, the fair value of the 2028 Notes will increase as interest rates fall and decrease as interest rates rise…