Zscaler’s QQ4 2025 results reinforce the company’s ability to grow top-line revenue in a rapidly expanding cloud security market, delivering a four-quarter trailing revenue of approximately $2.673 billion and a stable gross margin profile. Revenue for Q4 2025 reached $719.226 million, up about 21.3% year-over-year and 6.1% quarter-over-quarter, while gross profit was $547.623 million and gross margin stood at 76.14%. The firm’s EBITDA was $34.698 million (EBITDA margin ~4.82%), but net income remained negative at $17.578 million, driving a diluted EPS of -$0.11. The operating loss of $32.242 million reflects ongoing investments in R&D and go-to-market initiatives typical of a high-growth software services company. The balance of growth versus profitability continues to hinge on scale, mix, and operating leverage as Zscaler expands its addressable market and product suite at the higher end of SaaS economics.
Key takeaways for investors: (i) durable revenue growth with a stable gross margin profile supports long-term unit economics, (ii) near-term profitability remains pressured by elevated operating expenses despite EBITDA positivity, and (iii) ongoing investment in platform expansion and cross-sell opportunities could unlock margin improvement as scale increases. The absence of explicit forward-looking guidance in the provided data calls for cautious interpretation, with a focus on how efficiently Zscaler converts growth into improved operating leverage and free cash flow over the coming quarters.